Govt steps in to help consumers after cement price hike

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The import duty on hydraulic cement will be reduced from 50 per cent to 20 per cent from January and import licences for all types of cement will be expanded to 150,000 tonnes—plus Government is encouraging more players to manufacture cement.

Trade Minister Paula Gopee-Scoon, confirmed this yesterday as she spoke about measures to bring relief to the public following Trinidad Cement Limited’s cement price hike. She was replying to Opposition Senator Wade Mark’s questions in the Senate.

Gopee-Scoon said on learning that the local manufacturer intended to increase the cement price, Cabinet decided that the Trade Ministry should approach the Caricom agency responsible for trade and economic issues to seek suspension of the Common External Tariff (import duty) on other hydraulic cement from 50 per cent to 20 per cent. This would begin in January 2022, ending in December 2022.

She added “Plus there is an existing quota on import licences regime for all types of cement which at the moment is 75,000 tonnes. We’ll expand that decision to 150,000 tonnes from January.”

“Government sought to bring relief to citizens bearing in mind competition will keep the market in check and prices will remain lowest with entry of extra-regional cement into T&T. We recognise the importance of keeping the cement prices lowest possible including for the construction industry.”

Gopee-Scoon said it’s impossible for Government to say exactly what the price would be with the changes.

“What will likely happen is that, those authorised licensors under the quota regime will bring in cement that will enter the market at 20 per cent and that competion will keep the market in check.”

She said Government will also encourage any players to do cement manufacturing. There are five registered importers and so far for 2021 only one has brought in cement. Gopee-Scoon said there’s interest in the region for further manufacturers of cement.

Regarding farmers’ warnings about contaminated meat, Gopee-Scoon said the Health Ministry is researching reports and taking responsibility to ensure the public is aware of the circumstances to ensure no contaminated meats reach people. If anything is suspected by the Ministry of Agriculture’s division —which receives reports on live animals—the Health Ministry is alerted to dispose of carcasses and ensure protocols to curb contaminated meat from entering the market.

Meanwhile, regarding reports of “price gouging” by private sector businesses Gopee-Scoon noted the Food and Agriculture Organization’s (FAO) Food Price Index revealed that since September 2020, food prices globally have escalated by approximately 30 per cent, reaching levels not seen since 2011.

“According to the Central Bank July 2021 Economic Bulletin, the average growth in food inflation over the first 6 months of 2021 was 2.8 per cent. However, more recent data from the CBTT online database reveals that food price inflation was 4.9 per cent in July 2021, and 5.7 per cent in September 2021.”

Inflation was not only due to T&T’s position as a food importer but also to weather changes and the global pandemic’s impact on shipping, food production and related issues.

She added, “Based on the tracking of the Central Bank’s Retail Price Index (RPI), which shows how the basket of goods price changes over time, it can be said the inflation is relatively moderate and not indicative of ongoing price gouging in T&T.”

Gopee-Scoon, citing higher inflation rates in the US, Canada, United Kingdom, Barbados and Jamaica, detailed the Government’s measures including VAT removal on foods,

On another matter, Attorney General Faris Al-Rawi said the Energy Minister will be making a statement ahead on the “full extent” of the AV Drilling court award.