THE MINISTER of Commerce and Technology, Phillip Paulwell, who rarely misses an opportunity to be in the limelight, has taken the sensible step of publicly declaring that he and the Consumer Affairs Commission (CAC) were wrong when they accused several retailers of price gouging practices last week.The controversy generated by the CAC's charge that several retailers were selling imported vegetables at unreasonably high prices has only served to undermine its own credibility.
From the very outset, the accused retailers, including Wayne Chen of the Super Plus Foods chain, and Cameron Bisland of HiLo, were adamant that the charge was unfair and without foundation. But the minister remained silent and senior CAC officers, either out of hubris or carelessness, refused to concede the possibility of flaws in their survey.
In his apology last weekend, the minister said he was now convinced that based on the evidence provided, margins charged by retailers were not unreasonable.
At best, it seems the CAC's survey was sloppily done. For to publish an accusatory report reflecting differentials of up to 500 per cent increase in vegetable prices over pre-Hurricane Ivan rates without also studying and stating all the factors that have an impact on those prices to the consumer, is to operate in a superficial manner.
And this is unfortunate, because the agency is supposed to play an important role as watchdog to ensure that Jamaican counsumers are not exploited. When there is a cry of wolf and there is none, it undercuts belief in the sincerity of the cry the next time around.
We note the minister's concerns that prices to the consumers remain high despite a more than 200 per cent reduction in the duties on imported vegetables, as well as charges by Mike Surridge of the Financial Investigation Division that some retailers were purchasing produce from illegal importers and/or under-invoicing their goods. These charges require serious investigation and should not remain in the realm of accusation only.
These government agencies must employ the resources at their disposal to conduct proper checks on what exactly is happening in the import/retail sector and take the necessary action.
Where breaches of existing legislation are detected, then arrests should be made or fines imposed as appropriate. It is not good enough to make charges and or make unsubstantiated allegations which effectively tar the good and the bad.
The minister's apology is an appropriate step in the instant case. His subordinates and associates need to follow suit.
