Regulation of goods prices, final resort: Ain

By MATTHEW VARI

Sunday, January 25, 2016 (Sunday Chronicle, PNG)

CONSUMER watchdog, the Independent Consumer and Competition Commission, has warned of price regulation as a final resort for goods and services, if businesses continue to raise prices in light of huge reductions in fuel costs experience over the last 15 months.

A clearly upset Commissioner for ICCC Paulus Ain said that the commission is to meet with the Chamber of Commerce and Industry to get their views to why citizens were still paying more despite the drop in fuel costs.

“They need to tell us why they cannot do this, so that is the last option we are looking at. If worse comes to worse, we may look in the future of controlling some of the prices of these goods,” Mr Ain said.

“We will take them back and we will price control, going back to the old days, and that is the notice we are looking at giving back to the chamber of commerce.”

“For now it is an appeal to the business community and business houses. Whether it’s freight, airlines or any other company, as long as they are doing business in this country they need to pass on the savings to the people of this country.”

The commissioner explained that the commission cannot force business to reduce the price as it has specific goods classified under price monitoring and price controlled.

He said with increased consumer choice- the commission has allowed market forces to dictate prices, with the only controlled goods being rice, flour, and sugar.

“There is a difference between monitoring and price control. Before we had the Consumer Affairs Council when we never had RD Tuna around- we only had Ox & Palm and those guys and we only had a few players that were like monopolies for certain products and price control was there so we made sure that they do not excessively charge.”

“But now you find a lot of tinned fish lately coming in so competition is there and we cannot price control it, but we are monitoring price movements on a daily basis.”

ICCC Executive Manager Prices and Productivity, Brian Ivosa, added that reports from inspectors coming in from ICCC regional offices indicated an upward climb in goods despite savings gained by businesses.

“Data from regional offices are reflecting that prices are not changing. In terms of those goods that are declared like rice, flour, sugar. There is an international benchmark where we use against our own prices.”

“What we have seen is that there is a gradual increase in those goods by some percentage. We’ve seen changes that are impacting on our consumers, especially those out in the regions and towns.”

“Therefore having seen price of fuel decreased the last 15 months we should be expecting decreases.”

“You have these goods that are manufactured locally- a major component cost of the manufacturing industry is related to fuel so obviously a reduction in fuel should be reflected into those certain goods and services.”