Plans to expand the so-called basket of basic goods under government price-control from 12 to 70 items (see related story) may seem a bit radical. After all, it’s a 500 per cent increase.
However, the current list is clearly outdated in terms of variety, modern eating habits as well as health and hygiene considerations. Besides, government mentioned discussions with local food suppliers on the issue, so those directly involved were at least consulted.
Much depends on criteria used to set the maximum prices. There is no guarantee these products will prove cheaper than had they not been included, because competition can also keep prices down.
It’s therefore important to remind businesses concerned that “maximum” in no way means the item cannot be sold for less. The local economy is still based on free and fair trade that – ultimately – is supposed to work in favour of the consumer.
The devil is usually in the details, so a balanced and well-considered composition of the new basket will determine its effectiveness. Adding essential personal hygiene and care products, promoting more healthy choices and ensuring quality are obvious improvements.
Take for example bread. While a limit was originally set just for the simple white loaf, more and more people started using other types like wholegrain.
Properly informing the public is crucial too, as many may not even know about the basket. Intensive controls to ensure enforcement will be required especially in the beginning.
Both Curaçao and Aruba already took similar steps, so St. Maarten does not have to reinvent the wheel either. Together with reduced fuel rates such a move could certainly help provide some much-needed relief with the rising cost of living.
