Prices, competition and the covid19 pandemic

THE EDITOR: Growing evidence around us indicates that TT is likely heading into very deep and uncharted waters on account of covid19 – from rising business closures and joblessness to long lines for social support, food cards, government subsidies, food hampers, and more. Not to mention the related conditions of depression, anxiety, domestic violence and general uneasiness.

Indeed, our very social fabric is coming under serious challenge by this unforeseen pandemic which has further exposed underlying structural problems and inequities. What is perhaps worse is that there is hardly a safe country to run to.

If we assume that there is some reasonable amount of shelter for most, then the availability and affordability of food and medical supplies become crucial in the short run with there also being the need to ensure our economic viability in the medium to longer run.

A focus on availability forces us to consider and plan for continuing supplies through import or domestic production. Some rationing of supplies can be expected. These sources of supply all have various major challenges for which we must put plans in place.

A few importers must not hold distributors and retailers to ransom and, by the very same token, retailers must not be allowed to impose unfair terms and conditions when selling to the public. This necessitates the development and implementation of policies to stockpile essentials and to rapidly increase domestic production where possible.

It should be obvious that we must seek to protect the supply chain from importer/producer to consumer, as far as is possible. The tools of moral suasion, naming and shaming and the law must all be considered if better sense does not prevail.

Once we cross the hurdle of availability, the question of affordability then becomes paramount. Unemployed, underemployed, partially paid people must be able to feed themselves and have access to basic and necessary medical supplies. Prices then of food and medical supplies must be affordable to all.

This is not about socialism, politics or any such thing. It is about survival of our citizens, all of whom we need to help rebuild and transform this society in the months and years ahead. Principles of fair competition and consumer welfare are even more relevant for the consumers without jobs or smaller or no income.

In this context, if the number of limited importers leads to abuse of monopoly power then government must ensure that the situation is corrected through the entry of new and qualified importers.

If fair trading was ever important it is now as it will help to decide on whether we hold together as a society and in particular whether the less fortunate survives or not.

Members of the business community should be reminded that the Fair Trading Act is in force and enterprises are urged to be reasonable and to comply with the law or they will be brought before the courts sooner or later.

The Fair Trading Commission continues to operate even in this most trying time. It remains committed to ensuring a fairer TT for all by continuing to scrutinise potentially anti-competitive conduct and taking enforcement action if and where appropriate.

RONALD RAMKISSOON

chairman

TT Fair Trading Commission