News
Pennies in Savings; Food, Fuel & Import Prices set to Soar
By Deandrea Hamilton
Editor
#TurksandCaicos, April 15, 2022 – TCI Government will have to accelerate its reassessment plans when it comes to the $15 million Food and Fuel Tax Break because currently the drop in Customs Processing Fee (CPF) is only giving consumers pennies, if anything, in savings on grocery items. The reason, a rocketing inflation rate.
Prices on goods around the world are escalating rapidly and making matters worse, shipping costs are also marked up; not good for the Turks and Caicos which is heavily dependent upon imports.
GROCERIES
Since the start of April, shippers have been passing along the higher costs of doing business. Staple food items are more expensive and scarce. Magnetic Media observed empty shelves in several popular grocery stores in the Turks and Caicos; it was extremely concerning.
“It is still very difficult getting products in; we are trying,” explained a produce manager.
The current 2.5 per cent break on the CPF, is working but only to soften the blow on constantly rising levels of inflation; it means the government will have to go back to the drawing board.
Covid-19, shipping delays, lockdowns, quarantine orders, anti-vaccine protests, even the US stimulus to citizens which is financing extreme shopping are all blamed for the inflation; a perfect storm of events which has brought this pressure upon households now having to take on unbearable financial burdens and the Turks and Caicos is no exception.
The Russian-led war on the Ukraine has exacerbated the predicament.
We visited Sunny Foods store, with four grocery outlets in Provo and Grand Turk, where the decision has been to put the regular price and the reduced price on the same sticker. With the CPF applied, shoppers are saving only between one and four cents on popular grocery items.
Graceway Supermarkets decided to apply the CPF tax break on everything at the start of April; the company which owns three grocery stores in Providenciales and one food store in Grand Turk, informed that changes on price tags will come later, the savings will reflect at the cash register for now.
Sam’s Club in Providenciales is dropping prices by three per cent across the board at the register. Gus, the owner, is prepared to take a loss in order to simplify the process and attract shoppers.
P&K Spendless Supermarkets said their new stock will reflect the CPF discount, but no new stock is in store as yet.
Our news organization has been informed there has been no engagement by the Government with most of these food stores.
We are also told that every day, notices are coming from suppliers about increases in costs on the popular goods. Meanwhile, the rising cost of living signals that it is time for workers to get a raise.
Government has been able to tap into the public purse to augment salaries and other public service payouts by $30 million this fiscal year. The private sector has no such luxury.
National Insurance Board payments have increased since the start of April; another cost factor which is neutralizing the impact of the Government’s $500 Inflation Stimulus and the Food & Fuel Tax Break.
The recommendation from the grocers, when Magnetic Media quizzed them about a possible solution: ‘for a few months, as was done during the height of the Coronavirus Pandemic, drop the duty completely on bread basket items.
ELECTRICITY
There will be no reprieve in electricity bills either; FortisTCI has delivered a three pronged message namely: the
company’s efforts to become less fuel dependent; consumer advice encouraging energy conservation and the inescapable reality of surging oil prices which have now topped $100 per barrel.
The TCI’s electricity provider explained despite negotiations for better fuel rates, its supplier, Sun Oil has communicated that the Ukraine crisis will continue to drive up, oil prices.
“We have certainly been in discussions with our supplier and they do have inventory that is currently on hand, that does have the full Customs Processing Fee, CPF included already that has to be exhausted before that reduced Customs Processing Fee is then passed on to FortisTCI, which will flow through the customer bills,” said Aisha Laporte, VP of Finance at FortisTCI during an April 8 episode of Expressions radio show which is hosted by Robert Hall. “…but from the projections that we have we are expected to the see the reduction in the customs processing fee by May.
But I also want to say Mr. Hall, while that 2.5 per cent customs processing fee will be reflected, we’re also seeing an even larger marginal increase on just the cost of fuel. So that will outweigh the reduction from the savings on the Customs Processing Fee.”
FUEL
The report is equally as grim from TCI fuel suppliers.
McAllister Hanchell is Managing Director at Caicos Oil and he communicated early on, that fuel prices are fluctuating so rapidly, it was likely any small reduction would impact prices at the gas pumps.
Hanchell said oil prices are fluctuating, two to three per day in some cases.
This means though the government has come up with a tax break on the customs processing fee and the government’s fuel tax on gas sold at the pumps, it will have no bearing on the cost of the commodity on the open market, or the shipping fees which are also impacted by the pandemic and the conflict in the Ukraine.
Hanchell believes the 85 cents per gallon TCI Government collects on fuel, should be temporarily suspended.
SHIPPING
SEACOR has conveyed three significant rate increases since the start of April. On April 4th the shipping charges were raised due the surge in oil costs per barrel from around $80 to now over $100. Last week, an inland surcharge was passed onto the company; a new fee for shippers out of South Florida related to ground handling and that has resulted in higher charges on imports.
South Florida will apply a 20 per cent inland surcharge for all north and southbound shipments from Miami Dade County, Broward County and Ft Lauderdale.
On April 10, this notice came to SeaCor’s local link, AlServices Ltd: “Please note, effective Sunday, May 1, 2022, the below General Rate Increase (GRI) on the Ocean Freight charge will be applicable on all shipments to/from the United States and Turks & Caicos…”
The month of May is also when Cargo Express and Tropical Shipping will begin to charge more for its transport services. From Carl Simmons, Director there was this response to our queries on the kind of cost adjustments were pending:
“Tropical Shipping/Cargo Express Services can confirm that since the war began in Ukraine there has been an increase in Fuel costs that has impacted the costs of Shipping and Trucking to the Turks and Caicos Islands and other parts of the Caribbean. These increases would obviously be passed onto the customers and will ultimately impact consumers.
As of May 1st, 2022, Cargo Express Services will increase Trucking for Containerized cargo by $50.00 to all its Turks and Caicos customers; mainly due to the rise in fuel costs and replacement parts.”
Government’s around the world are powerless to control the cost of goods, supply chain issues, and despite harsh sanctions Russia continues its deadly, militant incursion of the Ukraine – the only solution is a reduction in government imposed taxes, which Consumers say are happening far too slow and offering cuts which are way too meager.
Meanwhile, since their March 15 national press conference, the TCI Government has issued no statement on the rolling issue.
News
Bankers’ Association President Samuels Finds Residents Hungry for Housing Financing at policy launch
Dana Malcolm
Staff writer
#TurksandCaicos, August 11, 2023 – Despite the Government’s attempt to create more affordable housing for residents with the creation of the new Housing Policy, many say they left the launch feeling less hopeful than they went in.
After the event, one resident expressed it was time to speed up a government-operated mortgage scheme, and those inside the launch event had a similar lack of faith in their ability to secure bank-backed mortgages.
Marcus Samuels, Head of the Banking Association, was hit with questions about how the Association would seek to help residents secure mortgages to purchase these new government homes, considering how difficult residents on both sides of the employment spectrum (private and public) found it to get approval for loans.
The pre-prepared question was met with applause from the ample audience who had gathered to hear about the programs.
“Homeownership isn’t rocket science, ” Samuels said, stressing that once residents came prepared with knowledge about their own paychecks and the size of the loan they could be offered they had a good chance of success.
Necessary information included:
- Level of income
- Level of previous debt
He also said the cost of housing could be lowered for buyers if the Government decided to decrease or forgo their taxes.
“There are some fees that we genuinely cannot move, like the Government stamp duties, which is usually one percent on the transaction. Thankfully, the Premier is here— the ball is in his court.”
Zhavargo Jolly, Event Moderator, fielded concerns shared by residents, including that the proposed cost of homes in the example (just over $ 200,000) was lower than the usual market value in the country.
There was also a concern that the mortgages seemed geared toward double-income homes, which was not the case for all residents, alienating single mothers, fathers, and other single-income earners.
While Samuels came prepared with calculations for a hypothetical $230,000 home that he said proved residents could be able to own a home with a down payment as low as $12,500 the audience was unconvinced. When he questioned them about whether residents believed they could afford a home after laying down the calculations the answer was still a resounding ‘no’.
Following the event, Bishop Coleta Williams, Chaplain to the House of Assembly, also spoke on the programs expressing concern that residents would be paying back the loans for years to come.
Residents, in the comments of the live video which was carried on Facebook, expressed being disappointed that more representatives from the Banking Association weren’t present at the meeting when arguably one of the biggest roadblocks to housing is financing.
Dana Malcolm
Staff Writer
#TurksandCaicos, August 11, 2023 – Many Turks and Caicos Islanders are spending unsustainable amounts of money on housing, according to data gathered by the Housing Department via the National Housing Needs Survey, emphasizing the need for affordable homes.
Dominique Durham, Deputy Permanent Secretary of Physical Planning and Infrastructure Development
“Respondents of that Survey provided that the majority of households spend more than 50 percent of their income on housing expenses. Now, as a rule of thumb, especially in America, if you spend more than 30 percent of your income on housing, it is deemed not affordable,” Dominique Durham, Deputy Permanent Secretary of Physical Planning and Infrastructure Development, revealed.
He shared other significant data collected that showed the dire state of the housing market locally, including that nearly a quarter of residents live in damaged homes.
“It also revealed that 21 percent [of respondents] are living in homes in need of repair and 69 percent are looking to purchase a new home within the next five years,” Durham said.
Despite the intent to buy a home, the survey also revealed that many Turks and Caicos residents thought the housing market needed more affordable options for them to be able to bring that dream to fruition.
The majority of residents (32 percent) voted for the Government to create more options for affordable housing when asked what would best improve their housing needs.
Other popular suggestions included:
- Creating Government housing loan programs (25 percent)
- Housing subsidies (15 percent)
- Home improvement/refurbishment programs (11 percent)
All of those suggestions voted on by residents have made their way into the Housing Policy as either short-term or long-term programs.
Jamell Robinson, Minister of Physical Planning and Infrastructure Development
“Long-term projects include inclusionary zoning, large-scale housing through public-private partnerships, and eventually, we will be establishing a National Housing Authority and Trust whereby we hope to lend at affordable interest rates. We also are looking to roll out help-to-buy schemes in the near future as we appreciate that an issue is also access to financing,” he said.
The Government is aiming to use these suggestions, voted on by residents, to fix the gaping hole in the market, but even with these new programs, there’s one thing residents say they need to purchase homes– better pay.
Jamell Robinson, Minister of Physical Planning and Infrastructure Development, was hit with the question of whether the Government would start to pay residents more so they could have more cash to afford housing.
The minister said step one was increasing public cash flow (with a pay and grade review for the public service now being conducted), and step two was upskilling all individuals to make them more marketable in the private sector.
“Our Job– is to ensure that our citizens as Turks and Caicos islanders can add value to themselves so they can participate more in the open market, and one of those ways is by making the community college free so you can access higher education– in a free open market which we have here, it’s hard to dictate to the private sector what they can pay a specific individual so we want to grow our individuals to make sure that they can level up,” he explained.
The Housing Policy launched on July 27th in Providenciales.
Caribbean News
Trinidad & Tobago Emancipation Day Marked with Major Events Attended by Prime Minister and other Dignitaries
#TrinidadandTobago, August 11, 2023 – Prime Minister Dr the Hon Keith Rowley and Mrs Sharon Rowley attended the Distinguished Open Lecture by His Royal Majesty Otumfuo Osei Tutu II, The Asantehene at The University of the West Indies, St. Augustine Campus last evening (Thursday 3rd August, 2023).
The Asantehene is the Guest of Honour in commemoration of this country’s 2023 Emancipation celebrations.
Deputy Speaker of the House of Representatives and Member of Parliament for Tunapuna, the Hon. Esmond Forde, Minister of Foreign and CARICOM Affairs, Senator the Hon. Dr. Amery Browne, Minister of Housing and Urban Development, the Hon. Camille Robinson-Regis, Minister of Education, Dr. the Hon. Nyan Gadsby-Dolly, Minister in the Ministry of Education, the Hon. Lisa Morris-Julian, Pro Vice-Chancellor and Principal of The University of the West Indies, St Augustine Campus Professor Rose-Marie Belle Antoine, Dean of the Faculty of Food and Agriculture, Professor Mark Wuddivira and Lecturer Department of History, Dr. Debbie Mc Collin were also in attendance at yesterday’s lecture.
Prime Minister Dr the Hon Keith Rowley and Mrs Sharon Rowley also visited the Desperadoes Pan Theatre at George Street, Port of Spain last evening (Wednesday 2nd August, 2023).
Dr Rowley welcomed His Royal Majesty Otumfuo Osei Tutu II, The Asantehene and his delegation to the pan theatre where His Majesty was treated to various aspects of Trinidad and Tobago’s Carnival which culminated in a performance by the Desperadoes Steel Orchestra and a demonstration on the playing of the national instrument for the Asantehene.
“They now see Africa, not through European eyes, as a dark continent, but as the cradle of human civilisation, citing the discoveries of its great empires. They talk of it glowingly, as the world’s fastest developing economic region in the 21st century, having just overtaken Asia, and of its six of the 10 fastest growing economies in the world and of its minerals, critical and indispensable to the technologies of the 21st century green economies.
Today, recognising the pain of the Middle Passage, and the centuries of colonial brutality, I salute the African community, a people, who through grit and determination, is on the march, striving for further discovery and self-realisation, searching, and transforming themselves for the challenges of the 21st century.
Let us all reflect and educate ourselves as we celebrate African Emancipation Day 2023.”
Dr the Honourable Keith Rowley
Prime Minister of The Republic of Trinidad and Tobago
on the occasion of Emancipation Day 2023
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