Govt rejects price control bid

November 18, 2009 08:10:57 AM

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The Fiji Government has rejected plans by the Prices and Incomes Board to control prices of 24 items.

The PIB had earlier this month issued notice of a 14-day period for the public to respond with their views on its intent to widen its powers over the retail pricing of common consumer goods.

PIB secretary Lusi Naimawi told FijiLive their surveys showed widespread inconsistencies in the retail prices of these goods

However, Minister for Trade and Investment, Attorney General and Acting Finance Minister Aiyaz Sayed-Khaiyum said yesterday the “anti-business” price control will no longer be pursued.
 
“Blanket price control on such items is not an effective means to cushion those low income brackets from inflation,” he said.

“Government is of the view that price control in such a manner will create distortions in the market and is anti investment and anti business.”

He said the Government is looking to develop an economy that is investor and business friendly.

“Government assistance needs to be targeted to only the poor,” he said, adding that this could be done in the form of bus fare subsidies, assistance to purchase school books and more.

PIB’s notice to the public was to end on Friday, after which a report based on the submissions received would be taken up to the Finance Minister.

PIB’s gazetted intention showed a minimum allowance of a 10 percent mark up on all the 24 items. 

They are:  imported preparations for making beverages, such as Ovaltine, Cocoa, Milo; Rolled oats and Weet Bix; Imported and local tea; baking powder; yeast; baking soda; imported and locally made bathing soap and medicated soap; imported and locally made toothpaste; imported and locally made toiled paper;  laundry soap; soap powder; toothbrush; baby powder and baby cream; baby diapers; mosquito coil; digging fork; digging spade; post hole spade; files; cane knives; roofing tiles and barbed wire.

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