Head of BCEN Urges Government to Address Rising Food Costs through Subsidies or Social Compact

BCEN head calls for subsidies or better social compact to reduce pressure on consumers

By Jenique Belgrave

A consumer advocate believes the Government should either subsidise food prices or re-engage retailers on a new compact that offers them incentives to participate, as some Barbadian families struggling with rising food costs.

The suggestion came on Tuesday from executive director of the Barbados Consumer Empowerment Network (BCEN) Maureen Holder, just over a month after the second six-month social compact between the Government and the private sector came to an end with businesses saying they were not interested in a renewal.

Private sector bodies reported that some members had negative experiences during the life of the compact which first ran from July 2022 to January 31, this year, and was then extended to July 31.

“One of the things that they could consider is going back to the drawing board to renegotiate and discuss a new compact with incentives. If that doesn’t work, what the Government can do is provide price subsidies for basic food items, whether you give it to the producer or the distributor. The Government would also have to look at what monies they have available to do such…. Just like how the compact was a temporary measure, the price subsidies for basic food items would also have to be a temporary measure,” the head of the consumer rights protection body told Barbados TODAY.

Saying that the food prices compact showed there can be no dependence on one measure, as consumers were still being affected by rising food costs, Holder said the Government had to get creative and devise a multi-pronged approach to tackle the issue.

“Government has to come up with ideas and solutions and it has to be done through a combination of things – price subsidies, food stamps, the expansion of the social protection programme or expanding the social safety net for the most vulnerable. They have to do it all together, all at the same time,” the consumer spokesperson stressed.

Acknowledging that high food prices were affecting people around the world, Holder said consumers have been reducing their spending to get by.

She contended that some people could not even afford to purchase VAT-fee items.

“Not even the zero-rated goods people can sometimes afford and even if they can afford it, they cannot afford enough that will keep them on any long-term basis. That is the reality of the Barbados that we’re living in right now. Some people only get money every two months, or maybe once in a while. They can’t go to the supermarket, even if they want to, and purchase VAT-free goods…. The smallest can of corned beef costs over $3 and the largest over $5. If you are a family of six, how long can that last?” Holder said.

The BCEN head was adamant that measures be put in place to ensure this country’s vulnerable can survive.

“It’s important to map out and to sit down and think through this thing carefully to come up with ideas on how to target the most vulnerable, how to expand the social protection net or the social safety net that will ensure that people continue to have at least a meal on their table, and also to ensure that the most vulnerable are targeted – those who don’t even have a steady income coming in,” she said.