THE PSOJ and the Jamaica Chamber of Commerce (JCC) note with concern the Ministry of Commerce, Science and Technology's release last week of information related to the retail prices of vegetables as reported in a survey conducted by the Consumer Affairs Commission (CAC).
Given the working relationship that our associations have been attempting to develop with the ministry and the CAC, we find it highly regrettable that both of these bodies would have released this information publicly without having made any effort to engage us in dialogue beforehand so that we could investigate and clarify the situation. This action gives the impression that the ministry is seeking to embarrass the private sector. We have made no secret of our abhorrence of price gouging and we have indicated to the authorities verbally and in writing our commitment to cooperate.
INACCURATE EVIDENCE
Unfortunately, such 'evidence' as has been released, even if subsequently proven inaccurate, can negatively impact the public's perception of an organisation's integrity and such damage cannot easily be repaired. The PSOJ and the JCC recall that in early October, an urgent meeting was held with the major member retailers to discuss the issue regarding the passing on, to consumers, of the benefits that would ensue from the duty reductions on imported foodstuff.
In particular, as requested by the CAC, the matter was raised regarding the setting of 'recommended retail prices' for the eight food items being monitored by the CAC for the duration of the regime. It was the consensus in this meeting that while the retail community was fully conscious of the need to ensure that consumers benefit from the duty reductions, prices should best be left to the marketplace. As such, the members of the JCC retail group agreed to maintain their margins at pre-Ivan levels for the duration of the duty-reduction regime. To this end they specifically agreed to make their data regarding the purchase and sale prices of the food products that were designated to benefit from the new regime available to the CAC.
We consider this verifiable commitment by members who represent a very significant percentage of the retail sector, a major undertaking in light of the objectives of the new regime. It is nonetheless important to note a number of points:
While the CAC proposed to monitor prices at the point that products reach the consumer, i.e., at the retail level, the retailers are themselves price-takers with respect to importers. The extent to which these new duties will impact the prices at which these products are sold to retailers is outside of the control of the retailers. Has the CAC examined the prices at which the importers sold these products to the retailers?
Any monitoring process undertaken by the CAC must consider the differences in the grades of imported produce and the fact that prices of these products are almost certain to move upwards given increased regional and hemispheric demand. Does the CAC's survey take into account the grades of produce being sold and the regional and hemispheric price levels?
It has been claimed by the minister that retailers must act as the 'eyes and ears' of Customs, as it is believed that there are middlemen operating illegally. In the past, several companies have cooperated with the authorities regarding these activities and despite a lack of evidence of any action, we will continue to work with the authorities as we are serious about controlling corruption and illegal activities, and we must approach these matters in a serious and structured manner.
To reiterate, the PSOJ and the JCC have consistently and firmly expressed their abhorrence of price gouging and will continue to do so. "We are fully conscious that the Jamaican consumer has the power to punish or reward vendors based on their ethical practices. That, and not control of prices, is ultimately the deciding factor in a market economy."
