Concerns expressed about inflation by Soualiga Employers Association (SEA) in Wednesday’s paper are shared by many. Already sea cargo issues prompted by the COVID-19 pandemic lockdowns and subsequent reopening of economies, but also other developments including a temporary blockage of the Suez Canal, had caused the cost of living to rise significantly worldwide.
In Curaçao, for example, containers had been staying stuck in port so long that government stepped in and set a very low limit for the so-called “demurrage” fee. Shipping agencies were charging importers up to US $100 per day, which was passed on to their clients.
Transport tariffs and expenses in general have increased substantially along with fuel prices, creating a “perfect storm” that the war in Ukraine is now making even worse. Should it expand further into Europe, consequences for local consumers could be nothing short of severe.
Hopefully that won’t happen, but the current situation is enough to consider taking mitigating steps like those suggested by SEA. Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Roger Lawrence is working on a review of the fuel clause applied by utility company GEBE, expanding the basket of basic goods for which maximum prices apply and intensifying related controls.
However, the problem has become urgent – as pointed out – and waiting for lengthy studies is not an option. On the other hand, intervening in the marketplace must always be carefully weighed in any society based on fair trade and free enterprise.
Ideally, healthy competition on the island should keep prices in check. However, when there are global factors affecting all businesses, that might not suffice.
Extraordinary times call for extraordinary measures.
