Log In

Reset Password
BERMUDA | RSS PODCAST

Govt in talks to try to lower food and electricity prices

Home Affairs Minister Michael Fahy

Government has started talks with the Island’s electricity utility Belco and a “leading” grocery chain in a bid to reduce the cost of food and electricity, Home Affairs Minister Michael Fahy said yesterday.But the Opposition Progressive Labour Party wasted little time in questioning Government’s resolve, saying Government had broken its promises in the past and acted quickly only when it suited its own interests (see related story).In a carefully worded address to Labour Day marchers yesterday, Senator Fahy sought to reassure locals that Government understood the plight of the unemployed and was working to bring a measure of “relief” to residents during tough times.Echoing a theme shared by St Paul AME Church pastor Rev Nicholas Tweed at Friday night’s Labour Day banquet, Sen Fahy said labour should not be the only sector making sacrifices, and he acknowledged that Government had made some “missteps”.“To encourage true shared sacrifice I can confirm that very recently the Deputy Premier Michael Dunkley and I met with one of the leading grocery chains to see how we can work together to reduce prices on standard food items,” he told the crowd of about 850.“Also, the Minister responsible for the Department of Energy, Minister Dr Grant Gibbons has met with Belco to discuss how we can find ways of reducing the costs of electricity for you the consumer.”Government agreed in July to make an official request to private sector organisations such as insurers, banks and Belco to play a part in helping to reduce the burden on the public sector workers who had agreed to a 4.6 percent pay cut.Belco told The Royal Gazette at the time that its five percent early payment discount was open to all residential customers, and that changes to electricity rates had to be approved by the Energy Commission.At yesterday’s gathering, the Minister also reported that he had been in talks with Bermuda Industrial Union leader Chris Furbert on modernising labour legislation.“Recently I have been in discussions with the leader of the BIU to discuss the modernisation of our current labour laws so that we can encourage innovation and direct inward investment; protect employees in corporate restructuring; clarify the workforce dispute and violations regimes and clarifying recognition certification.”And he reminded the audience that his Ministry is to introduce a “tougher” immigration regime where employers are penalised for breaching the law and new policy to ensure training programmes for Bermudians.“But we understand that those of you who are unemployed need help now. We understand your struggle of trying to provide a better life for yourselves and your families. There has been much said about shared sacrifice — and the burden of that should not be placed with only labour,” he continued.“So please know that we are working to address all of these issues to give people who are working and not working some relief in these tough economic times.“We continue to work towards innovative job creation solutions that get our people back to work as we work towards a common goal — jobs for all Bermudians.”And he echoed a call by Premier Craig Cannonier for a collaborative approach to addressing the country’s problems.“We may have different economic theories and different approaches to how we empower the people of this country, but our common goal and certainly the goal of this Government, is to ensure that our people have the ability to live their lives freely; have the ability to work; to educate their children as they choose to; and to look forward to their golden years in comfort and dignity,” he said.“This Government aims to create an environment to return us to an era of full employment — there will be some missteps and we have made some — but rest assured we have the goal in mind of protecting Bermudians in their own country whilst increasing employment and opportunities for all — especially our young people. We are starting to move in the right direction.”Sen Fahy did not respond to an e-mailed query seeking clarification on Government’s “missteps”.

PLP’s Roban hits back

Shadow Home Affairs Minister Walter Roban went on the offensive yesterday following his Minister Fahy’s announcement that Government was pursuing lower prices for electricity and food.

In a statement issued shortly after Sen Fahy’s speech, Mr Roban said while he welcomed news of talks with a grocery chain and Belco, the Progressive Labour Party questioned whether Government would follow through.

“In just a few months, they have given the impression that OBA promises mean nothing and OBA talk does not equal action for anyone but an elite and privileged few,” he said.

“The OBA did not talk about scrapping term limits. They broke their promise and did it. The OBA did not talk about granting Belco two rate increases, they just did it.

“The OBA did not talk about violating the Ministerial Code of Conduct by accepting a free jet ride and hotel stay from a foreign businessmen. They just did it. The OBA did not talk about breaking their promise to hire consultants. When they gave Government consulting contracts to OBA insiders, friends and family. They just did it.”

The statement continued: “The OBA have proven that they can move swiftly from talk into action when it comes to taking care of themselves, the elite and privileged. We call on them to be as action oriented for our people as they have been for themselves.”