Rate hikes would be unfair
January 8, 2012Dear Sir,Recently the Government passed legislation that raised the duty on merchandise purchased by the public abroad, and which they returned with, to a rate of 35 percent and reduced the amount that was allowed in duty free. Like many others, I was not in favour of that. Now it is public knowledge that plans are in the works to extend that rate of duty to all goods imported by the public, including those which they receive through courier and other agencies. I personally will be enraged if this becomes reality. The Premier has made it clear that she and her Government are seeking ways to protect the local retail industry. Her recent “walkabout” in Hamilton is testimony to that fact. The majority of the public are sympathetic to the policy of “Buy Bermuda”. I personally go out of my way to support this, even if the variety of merchandise offered is far less than that which can be purchased abroad.However I have always felt that subsidies can get out of hand and then become detrimental to the pockets of the average citizen and frankly become undemocratic. Should Government implement a higher rate of duty and exempt the retail and related businesses from paying the higher rate, then the result will be that the average citizen will be penalised. The local retail industry will have greater freedom to raise their prices, having been freed from the competition of local courier companies and related services. There will be a reduction in the variety of items that citizens can currently gain access to at competitive prices. There will also be a return to the days when the retail industry put ridiculous and sometimes outrageous markups on their merchandise. This was an entrenched habit which I believe historically led to the public seeking better prices abroad. I have a vivid memory and a personal example of this to share. Many years ago I needed a new raincoat. I priced one in a local store (no longer in business), it was a London Fog raincoat labelled at a cost of $700. This was too expensive for me. Whilst on the East Coast I discovered the identical item at a cost of $70. Naturally I purchased it and still have it! It is my sincere hope that the Government will think long and hard on the proposals they have in mind, for after all, if nothing else, they need to be reminded that this is most likely an election year!THE REVEREND DON MOORECity of Hamilton