Time for action on prices

Despite the curled lip which the mere mention of Marx is likely to elicit in free-market, finance-dominated Jersey, he was undeniably onto something with the idea that description is one thing and action is another. It is, moreover, a principle which the Island’s politicians should heed.

Take the recent revelation that food prices have risen far more sharply here than in either the UK or Guernsey over the past five years. That Islanders appear to be paying over the odds for the essentials of life is most certainly a statement of how matters stand. It is, however, neither a real revelation – on the basis that anyone who goes to the shops understands the state of play – nor is it terrifically helpful.

What we need from States Members is activity aimed at, firstly, discovering why prices have escalated and why we are paying so much, and, secondly, to do something about it.

To be fair, Consumer Council chairman Senator Alan Breckon is doing his best to lead the charge on this front. His organisation seems to be making a serious attempt to separate fact from myth in the whole realm of Jersey pricing.

That said, at present Senator Breckon admits only to a suspicion that Islanders are being ‘ripped off’. What is needed is a systematic analysis of the costs of doing business in this Island and the extent to which prices many per cent higher than those in Guernsey or on the other side of the Channel can possibly be justified.

Meanwhile, we appear to be heading inexorably towards a position in which goods and services will become even more expensive. It is quite clear that a hike in GST is, from the point of view of the Council of Ministers, a favoured option for raising more public revenue.

When GST burst on the scene it was argued that, at thee per cent, it should be applied across the board to minimise the expense of collecting it. That argument was sustainable, but it will cease to be if an increase takes the already excessive prices of basic commodities even higher.

As well as making a concerted effort to get to the bottom of the Jersey prices conundrum, government must also review its present GST strategy if the rate is to rise. To do otherwise would be to impose an unacceptable burden on the least well off in our community.