NLP blaems business for US dollar drain
before blaming the ordinary consumer for the drain of millions of dollars to US stores, the National Liberal Party said yesterday.
NLP Leader Mr. Gilbert Darrell MP said he believed overseas spending by Government and business owners made the spending of other consumers "pale in comparison''.
He said members of the two sectors might find they too have what the Finance Minister has termed "travel sickness''.
"The shoe store owner expects to sell his shoes to local consumers, but he goes abroad and buys his shirts,'' claimed Mr. Darrell.
"The local contractor expects the hardware store owner to use his services, but he buys his hardware in Florida. The grocery store owner buys from local wholesalers when it is convenient, but he can and does buy from an East Coast food wholesaler. This syndrome goes on and on...'' Mr. Darrell warned that Bermuda would become a "bedroom suburb of the United States'' if Government and retailers do not face the fact they are also responsible for the millions spent overseas each year.
"This `sickness' of overseas purchasing of goods and services effects Government and the very same businesses the Minister of Finance shows such concern about,'' he said.
But Finance Minister the Hon. David Saul said he did not think Government spent unnecessarily abroad.
And he said when Government officials are overseas on business they keep expenses down. "I for one always travel economy class when I go away,'' he said.
Dr. Saul said on Monday he believed residents were suffering from a "travel sickness'' which was causing them to buy things they did not need.
"It's very disturbing,'' he said. "I'm very sympathetic to the local retailers. I don't know whether I should make a plea to residents not to buy abroad if they don't need to.'' Dr. Saul said he was not saying residents shouldn't go abroad, but that they should spend "wisely''.
Nearly $3 million in potential sales went overseas in August, the third straight month that overseas spending rose. And total declared purchases abroad last year amounted to a staggering $20.8 million.
Responding to Mr. Darrell's comments, Chamber of Commerce president Mr. Louis Mowbray said a soon-to-be launched advertising campaign to counter overseas spending sprees is aimed at everyone -- Government and businesses included.
He added that large stores which buy in bulk tend to buy overseas because it makes more financial sense than buying the same goods here if they are available.
