MP Terry Lister: Set Up A Price Control Board
Rather than the 10% Wednesday discount from the major grocers recently announced in the Throne Speech being praised, Government should set up a price control board, Independent MP Terry Lister said in the House on Friday [Nov 15].
Mr Lister said, “On Friday last the Government announced in the Throne Speech that a concession had been won from the food merchants who, effective December 1st, would be offering a 10% cash only discount on food purchases on Wednesdays.
“This is a doubling of the current 5% Wednesday discounts. The Government has heralded this as a great success for the Bermudian people.
“I, on the other hand, am very displeased with this agreement. The people are struggling with many afflictions at this point. The rise of food costs is one of these afflictions. We need a means to control these rises.
“I have opposed wage and price controls since witnessing the failure of such measures in Canada in the early 1970′s. I don’t believe a full blown wage and price control regime has any chance of success in an economy like ours where most of our goods are imported. However, a limited form can be quite helpful for all of us.
“Here’s what I believe should happen. Rather than a 10% discount being praised, Government should set up a price control board that would first determine the composition of a basket of essential food products.
“Once this basket has been determined, there should be an agreement reached with all food merchants fixing the price of all such products for a period such as three months.
“The price would be fixed for the item in every outlet in Bermuda. Consumers would know what the price of the item is going to be for the next three months.
“As the quarter end approaches the price control board and the food merchants would meet to negotiate the prices for the next quarter.
“To me this would be far more beneficial to consumers than a Wednesday 10% off. I am strongly recommending that Government set up the Board and empower them to get this measure in place as soon as possible,” concluded Mr Lister.
Hmmmm makes sense. As I read this article I couldn’t help but think if the Government is unwilling to do as MP Lister is advising why not speak with the grocery stores to negotiate 5% twice or three times a week. Like a Tuesday and Friday or Tuesday, Friday and a Sunday, instead of just 10% on. Wednesday. They may make more money in the end.
PLP Members have some great ideas when they are no longer in power. Hey, Terry, why didn’t you have this bright idea during that decade when you could actually do something about it?
Or better yet, lets set up a board that sets the salary Ministers pay themselves.
and if I could be so bold… lets back date it!
I was thinking the exact same thing.
What a novel idea. Price controls. We could hire some Xperts from Venezuela to advise us on setting this up. It’s worked so well there, I’m sure it will be just as successful here.
I vote for Comrade Starling to sit on the price control board. Of course, we’ll have to pay them. Graeme and Donal can advise us on the best way to set that up.
@Family Man,
This has been brought up before and has been addressed. The main problem in Venezuela is that organised crime have a legion of people buying up the price controlled items. They then sell these in neighbouring countries at full price and reap the profits. I don’t think Bermuda will suffer from this.
Also it is being suggested that an essential basket be agreed and only those items (in consultation with grocers) be price controlled. Not that every item be controlled.
I’d imagine rice, flour, canned/frozen fruits/vegetables/juice, oatmeal, milk, a frozen meat, dried/canned beans. Something like that . I’m sure the board will come up with a reasonable list if they work with the grocers to determine it.
Ride
Don’t forget toilet paper. That’s an essential item. Have you seen the price of toilet paper? It’s outrageous! Those capitalist grocery stores charging us a fortune to keep our bums clean. We need price controls on toilet paper. Just like Venezuela. Toilet paper is regulated and cheap in Venezuela. (You can’t actually find any in the stores but if you do, its cheap.)
I guess that sarcasm tag on my earlier post didn’t show up very well.
And don’t forget Hellman’s Mayonnaise. Everyone knows Bermudians need real Hellman’s mayonnaise. It’s a basic human right. It’s immoral to make a profit on Hellman’s mayonnaise. It should be subsidized by the people’s socialist governing party for the people by the people and of the people. Somebody should take a stand and stand strong for mayonnaise. Do you know, one day I went to two places and found mayonnaise for two different prices? How can that possibly be?
Toilet paper ain’t assential bredrin! Wipin’ ya bumpy is a luxury! Save paper, wash ya tail in de showa!
I’m thinking you meant to say essential? BTW toilet paper is “essential” bredren.
Why don’t you think through what you’re saying? If organised crime is buying toilet paper in stores to sell in neighbouring countries, that must mean that shops are being forced to sell toilet paper for less than the wholesale price. There is no point in organised crime going to the effort of buying toilet paper in Caracas to sell in Bogota if they could buy it more cheaply wholesale in Bogota.
The organised crime suggestion is highly unlikely. Further, if shops were still able to make money selling toilet paper to organised crime, they would not not be out of stock, since toilet paper is not a scare commodity.
The basic problem with price control is that it means it is not worth a merchant’s while to sell the item at the controlled price. Lister’s idea has the added downside of price fixing – i.e. eliminating all price competition for those items. Just a terrible terrible idea.
All Hail Mother Russia
Why doesn’t Govt (or better yet a local entrepreneur) simply set up a website that posts the prices of this basket of goods and compares it for all local suppliers? That way the public can make their own choice (presumably opting for the cheapest), the suppliers will then be forced to match the lowest prices, and the people of Bermuda are saved the expense of yet another expensive Govt Board?
As mr. Lister himself says, direct Govt intervention on pricing usually proves to be a disaster. Just look at what Venezuela did last week. I’d rather live in a free market economy thank you.
This is an interesting concept. It in effect would request of grocers that the profit (or a portion of it) being made on the items in the essential basket be transferred to nonessential items. I recommend this earlier somewhere in these blogs but I like the suggested implementation presented here.
This would be way more beneficial than a once a week discount on a day when the majority of the working public can’t get to the grocery stores to purchase their week’s groceries.
Ride
I’m sure the stores will be climbing all over each other, competing to bring in all those items that they aren’t allowed to make a profit on. Sounds like a BIU Co-op business plan.
hmmmmm what will happen with the 10% off of groceries on Wednesdays is that Tuesday evening all the prices will change so that when Wednesday comes around it looks like you saved a whole bunch of money but in actual fact you haven’t.
I am just saying….
You’re not just saying! I COMPLETELY agree, its sickening how they increase just before the %day and lower just after! I know because as a struggling parent I notice those price changes and my bill; I had to shake my head at what they do. Its terrible!
Couldn’t believe it..
Why don’t stores offer 4% or 5% off for cash EVERY DAY? When bank cards (debit and credit) are used the store must pay a percentage to the bank. They could offer you that same percentage off EVERY time you pay cash rather than once a week… right!!!?
What an elegant and simple idea. Yes, why don’t we just pass a law saying that things should cost less? Brilliant. While we’re at it, let’s also pass a law saying that we should only get nice weather, and everyone should be in a good mood all the time.
Terrible idea Mr. Lister. MP’s and the government can’t control their own affairs how do you expect to control someone else’s business. Allow free enterprise and business will sort itself out. If someone is making huge profits it will attract competition – simple. Businesses that are not doing well go out of business – hotels.
Plain dumb and so anti-business that the economy would never get fixed – no different than keeping all those unneeded civil servants on the payroll because they increase “employment” whereas in reality productivity and competitiveness are destroyed.
What a wonderfull IDEA,brilliant I really don’t know where they come up with these wonderfull ideas.
Just think we then would not have any food to buy anymore.
And who is going to bring this food in and sell it for a fixed price???
I know you would just have to bring in your own food like they do in Jamacia.OH how about “HAITI” that seems to be even better we should take a few tips from them as how to run a country.
We already have a price control board. The members are the savy consumers who shop around & support the businesses with the most competitive pricing. For items other than food they do the math & calculate the online price as well. When they travel how many of them return with bags weighing the same as when they left?
Oh yeah, a price control board is a great idea. Can see it now. A bunch of people who don’t have a clue about retailing. Sounds like a plan. A PLP plan.
Just what we need – another Board and more Board fees.
People can think for themselves — make shopping lists, shop around, watch out for specials; buy the $5 loaf of bread not the $8 loaf, bulk buy and split costs with family/friend(s)/neighbor(s), not buy junk food etc. etc. – food costs can be controlled. Personally on a discount day I buy extra bread and milk and put it in the freezer for later in the week. Some folk are scornful about Wednesday discounts but if people put the money saved each week into a jar there would be a nice sum at the end of the year.
10% Agreed by the Supermarkets, DAH, we all are almost 100% sure that the prices were/will be adjusted before that happens, i have complained to some Market Place managers about putting up their prices on items they already have in stock, one manager told me that is what they are TOLD to do, so how can you fight it
I have been to a Market Place store and have seen them adjust the prices the night before. They will continue to do so even at 10%. SSDD.
Heron Bay , have the most miserable staff….especially the shelf packers !!the best place to shop is at the supermart on front street.
I listened to Listers remarks on Friday..little does he know that the sunbeam and imported bread is the same price across Bermuda and so is milk. He remarks were that why should the same staple item cost different at all the stores. Marketplace bread is the same price at every MP store. The whole idea of 5% Wednesdays was an incentive to try and lessen the amount of people going on Saturday.
And, incredible as it may seem, Terry Lister is a qualified accountant.
That’s why, when it comes to jobs, degrees aren’t everything.
Damned if you damned if you don’t. Did they PLP every try or support anything like this?! no they did not, at least de OBA trying!!
Lister must have skipped his econ 101 classes, crammed for the final and forgotten everything they told him.
…and don’t worry about Venuzuela comparisons. This is different. This is Bermuda. Things always work out the way we want them to in Bermuda.
All the PLP supporters are tweaking and disagreeing with the comments, but none have anything to say. Very telling. Same in the Post Office article.
The problem with “STUPID” is that “THEY” do not spend Billions of dollars on it try to find a cure.
I do believe that there already exists a consumer basket of goods survey for the government to use for cost of living. In point of fact the survey was taken this past May to August by the Department of Statistics/Planning. It was a very extensive survey that required participants to keep track of nearly every cent they spent and for 2 weeks we had to save receipts. Plus we had to show what we spent on nearly everything for a 12 month period. If I remember correctly 800 household participated, we were all chosen at random and participation mandatory.
So where is the information collected I for one really want to know after being one of the households so chosen. Oh and yes since this was done by a government department why is it that Terry Lister doesn’t seem to know about it, or any other MP for that matter?
Have you noticed that Market Place sometimes do not price certain items like cream cheese as the price has gone up so much? They hope you will just put the unpriced item in your basket. I always make a point of asking the price. They are up to all sorts of tricks. The cost of fruit and vegetables in Lindos in Devonshire is very high and prices there are so much more than their Warwick store.
Bermuda needed to implement a standard cost means YEARS AGO!!! This includes food and beverage and the Construction trade. When just a few years ago contractors were submitting bids for construction of homes with a a 35% difference in extreme cases in price. How can you get a 3 contract bid for a 3 bedroom house and there is a difference by almost 100,000 dollars!
contractors were riding off the high hog and charging what the wanted. They needed to implement a 5% discount day!
Simply Bermuda needs a similar means such as http://rsmeans.reedconstructiondata.com
@outkasted, There are countries that do exactly what you suggested, Cuba, North Korea and Venusuela come to mind!!! They are all failures, Socialism does not work, never has and never will!!! Perhaps Terry Lister should go live in those countries and see if he likes it??? This is nothing more than voodoo economics from a past plp minister!! I guess you can take Terry out of the plp, but you can’t take the plp out of Terry!!!!!
What you’re describing is a system where prices all go up, to meet the least efficient competitor. No good comes of it.
Another ill thought out idea,which will lead to goods under price control not being imported.Go ask those poor people in Cuba and Venezuala if you want verification .
I am a PLP supporter and terry listers proposal is just embarrassing. Has he any idea about basic economic principals. And to think he had a chance to be leader! Thank goodness we have our current leader who has made it clear that the PLP, like the Oba, do not support price controls. Well, accountants are not economist, mind you, there are some economist out there who support the same nonsense. No wonder people feel that the PLP have no idea, when you hear former “educated” members talking such ignorance. Terry, why don’t you start a socialist party and peruse north Korea and Cuban policies? Our leader has stressed competition, not this parasitical concept. With your so called basket of goods determined by god knows who, who then “set prices”(wth), in 3 months, the basket will be empty and bare! Terry lister, you are irresponsible and preying on people’s ignorance and emotion.
As a voter that has never agreed with the plp way of doing things, I actually would like to thank you for your post!! It actually surprised me because what you just said goes against the old guard plp way of thinking!!! And I really do mean it, in the most sincere way!!
And Terry Lister does not represent the PLP. He left after the people said no to him for the 3rd time. Yes, there are some that may agree with his proposal, across party lines. I’m just glad he left the PLP. Hopefully, he will get out of politics and focus on business………wait a minute, with his non-economic theories that he is spewing, I don’t think he would be successful in business…..even though he is an accountant! Embarrassing from a senior MP.
People need to shop more intelligently and pay attention to price per pound, purchase generic items, buy in bulk on non perishable items, not shop while hungry, etc…. The government needs to focus more on educating people to be more resourceful and manage their funds better. Stand back and look for 10 minutes how people shop in the store, no list, calculator, or plan on how they will spend their money.
Marleytime Ery little ting will be alrite!
Mr. Lister’s heart is in the right place but I have to agree with those opposing this idea.
Price control is not a new idea as Mr. Lister is aware. Limited or not price control can cause other problems such as supply shortages. Having to renegotiate prices every three months can be a time consuming exercise for all concerned. What if a consensus cannot be reached? Does the Board make a unilateral decision? Majority vote?
You can control the price of goods, sure, but you cannot force merchants to sell items at a loss.
I say let the forces of the market dictate prices, not a board of (overpaid) bureaucrats. People are not stupid, they can make up their own minds about where they think they get value for money.
Capitalism is not perfect but it’s the best solution that we have for the moment.
I have a friend who lived in Cuba. Apparently there is a leaf of a plant they have there that works perfectly as toilet paper. Only problem is it looks just like poison ivy. Be careful out there people.
Bermuda is filled with haters. To all of you there is a difference between wit and wisdom. For the benefit of the country all of us need to grow up. Think about how you can become a part of the solution not the problem. Our biggest problem is that we are all too blessed. All we do is complain and criticise. Nothing anyone says or does is good enough for empty barrels. Shut up and listen to what others are trying to say that might just help you or someone close to you. To the Premier, MP Terry Lister and others who genuinely want to help remember a self made fool is worse than a natural one.
Hey Terry: Why stop with equal prices? Why not pass a law where everyone gets paid exactly the same too? This of course would have to include you, yourself. This is also where it would fall apart – because you, yourself would never agree to something so stupid.
Economics 101. The very first lesson you ever do in Economics teaches you about supply and demand. Equilibrium price, the free market.
Very reminiscent of Animal Farm: All animals are equal, but some are more equal than others.