Jul 2008 Financial News

'No excessive pricing on cement', Minister urges

Jul 28, 2008

GOVERNMENT is appealing to local retailers to show restraint in their pricing of cement.

In suggesting this, Minister of Trade, Industry and Commerce, George Hutson, said retailers have to recognise that it is the global forces which are contributing to the higher cost of items to consumers.

Hutson made the suggestion while reacting to the imminent increase in the price of cement as announced last week by the Arawak Cement Company Limited, the lone manufacturer and supplier of the commodity in Barbados. Noting that there will be variation in the retail price of the commodity, Mr. Hutson anticipates that retailers are going to pass on as much of the increase as is possible to consumers.

"I would just want to encourage business places to recognise that this is a global situation and we have to be very conscious of what is happening in the market and take the opportunity not to be involved with excessive pricing of their products" the Minister pointed out.

Hutson who had earlier to those comments signed an agreement with the Inter-American Development (IDB) for a Bds$10 million loan, said that consumers need to tighten their belts and make healthy choices with the way they spend their money.

The Minister also revealed that because of the variation in cement prices consumers need to shop around to get the best prices. "That is one of the ways that consumers in general can approach this. There is no requirement for you to buy at the top end, you need to look and see what price the various retailers are selling their products and look for the price that is lower" the minister advised.

He further suggested that consumers watch for the add-ons, like charging for transportation of the cement, which retailers factor into the final price of the commodity to the consumer.

The St. Lucy based Arawak Cement Company blamed higher energy costs for the increase which is expected to push up the cost of construction in Barbados.

The Minister said that based on representations Arawak officials made to his ministry, the company had incurred operating losses over the first half of its financial year. "So I think they are just reacting to that," said Mr. Hutson.

The agreement which the Minister signed with the IDB is for a package of assistance to modernize the Barbados National Standards Institution (BNSI) including the strengthening of its operations and the establishment of new facilities for the organization.


Source:
The Barbados Advocate
Monday 28 July, 2008
http://www.barbadosadvocate.com/NewViewNewsleft.cfm?Record=36237