Column: Robinson On Competition Laws & More
[Opinion column written by MP Dwayne Robinson]
The One Bermuda Alliance welcomes the Minister of Home Affairs bringing forward competition laws for consultation, as it is something that our party has long campaigned for.
We have consistently introduced anti-monopoly and competition laws into the cost-of-living conversation, and we look forward to the final draft of the legislation for scrutiny. Lowering prices is important but protecting Bermudians purchasing power and having options for where we spend our money is crucial. The less competition in the market means only a few players set the prices, and the consumer is forced to accept those prices.
However, introducing competition laws for consultation while passing legislation that will add an additional barrier of entry into certain areas of our economy, is a contradiction and potentially will reduce purchasing options for Bermudians.
The Cost of Living Commission Amendment [No. 2] Bill 2026 is likely to hinder competition and creates more administrative burden on business, which could result in diminishing the variety of goods/services available to Bermudians, which will primarily affect areas under 10DA of the bill.
The Minister may, by order, designate any service that is crucial to any of the following business operations as a “critical service”— the shipping and freight of food and other household goods to Bermuda; the wholesale importation, supply, storage, warehousing or distribution of food and other household goods for sale to retail establishments or to end consumers; the retail sale of food and other household goods directly to end consumers; the supply, transmission or distribution of utilities for household use.
These markets are already difficult to break into now. This legislation will only add to the difficulty for new entrepreneurs disrupting these areas of our economy and additional job growth.
The Minister of Home Affairs has gone through great lengths in the public domain to stress that this legislation is primarily for gathering information, which is extremely misleading.
The legislation ushers in price controls over “essential commodities” and “critical services”.
Attempting to lower prices with the cost of essentials without lowering the expenditure to procure them, puts businesses in a tough spot, where they may seek to cut costs elsewhere.
That is what will potentially affect Bermudians’ variety of goods and services available, along with a possible reduction in employment opportunities.
Listening to the Minister’s pitch to Bermudians, I felt the need to share and reinforce what is in the legislation that is causing the objection, as the narrative being presented is that objecting to this Bill is an objection to lower cost of living for Bermudians, which is categorically false.
Standing up for Bermudian employment, entrepreneurial opportunities, variety of purchase, and less red tape is in the best interest of Bermudians.
The following are clauses from the explanatory memorandum of The Cost of Living Commission Amendment [No. 2] Bill 2026. Make your own judgement on whether there are price controls in this legislation.
“Clauses 6 and 7 amend, respectively, sections 3 and 4 of the Act to enable prescribed categories of business undertakings and prescribed categories of commodities to be specified in the Second Schedule for the purposes of price increase control. Prescribed categories are made by regulations under section 10E[2]. These amendments broaden the existing provisions which narrowly provide for specific business undertakings and specific commodities to be subject to specified in the Second Schedule.”
“Clause 11 inserts new section 7A into the Act to provide, with respect to the price increase control of any essential commodity or prescribed category of essential commodity specified in the Second Schedule, that an “increase in the price or charge” means any increase resulting in a 5% or greater increase in the price or charge of the essential commodity within the same fiscal year. The Minister may by order, subject to the negative resolution procedure, amend the percentage figure and in doing so must have regard to the public interest, any reports or recommendations of the Commission, and any joint studies or other assessments carried out by the Commission and any other regulatory body.”
“Clause 17 inserts new sections 10F to 10H into the Act. New section 10F enables the Minister to authorise in writing inspectors under the Consumer Protection Act 1999 to assist the Commission in making inquiries and monitoring compliance under the Act. New section 10G makes providing false information under the Act a summary offence. New section 10H enables the Minister to make regulations, subject to the negative resolution procedure, prescribing the other regulatory bodies with whom the Commission shall consult or collaborate with, and enabling the making of any agreements by which the Commission and such other regulatory bodies can work cooperatively.”
There is more packed into this Bill than simply gathering information. It empowers the Cost of Living Commission but also greatly empowers the Minister to assert herself into the private sector with price controls which have been proven to be ineffective.
It also grants new powers of enforcement to the Minister and increased penalties to wield against businesses who are deemed to provide essential commodities or critical services.
The Minister should stop misleading the public on the contents of her legislation and have an honest conversation on the intention of her bill. If the Minister of Home Affairs truly wanted to lower the cost of living for Bermudians in this area, she would repeal the sugar tax, remove the foreign currency purchasing tax, work on a strategy to reduce shipping costs which would be much easier to pass on to the consumer, and press forward with the competition legislation.
The Government should do all it can before asking Bermudians to sacrifice or asserting themselves on businesses to assist them in trouble shooting their policy initiatives.
- Dwayne Robinson, Shadow Home Affairs Minister
