BVI government addresses high cost of living in territory
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| Published on Tuesday, March 27, 2007 |
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ROAD TOWN, BVI: In his weekly update to the territory, British Virgin Islands Chief Minister Dr Orlando Smith said the cost of living and more so the rising cost of living is challenging for everyone.
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Chief Minister of the BVI,
Dr Orlando Smith |
"In the BVI changes in the cost of living are approximated by the Consumer Price Index (CPI), which basically measures the changes that occur in the prices of a select group of goods and services that are usually consumed by households," the Chief Minister said.
He said the Development Planning Unit is the government department tasked with monitoring the movement of the rate of inflation. ‘This is very important because inflation affects the purchasing power of BVI consumers and this in turn negatively impacts the standard of living,’ Dr Smith says.
According to the Chief Minister, by the end 2006 the rate of inflation stood at 2.7 percent and this trend was largely driven by overall increases in the price of food, housing and services.
The Chief Minister says over the past several years, the local economy has enjoyed unprecedented growth of 7 percent. "New jobs are being created; new opportunities are opening up; more families are able to afford to build new homes; more people are enjoying a higher standard of living than ever before," Smith said.
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But, according to the Chief Minister, as this progress is celebrated, it is important to realize that like everything else in life, economic growth also carries with it certain risks. In particular, as the economy grows and more money is circulating in the economy, then the cost-of-living can go up.
He said the goal of Government is finding an appropriate balance between encouraging continued strong economic growth while also making sure that price increases don’t harm the well-being of people. The Chief Minister said it was with this goal in mind that a number of key steps have already been taken.
Smith said, as a first step over the past year, government we put in place another major tax break for working people, expanding the limit on tax free income to $10,000. He says in taking this step, government has been able to ensure that working people are able to keep more of their own money.
In addition, he said they have taken the historic step of making tuition at the Community College free of charge for qualified BVIslanders, ensuring that the cost of higher education need not fall on the shoulders of people. And, finally, government established the Small Business Guarantee Fund designed to help first-time entrepreneurs get the financing they need to start their own business.
As another step, the Chief Minister announced the next step in government’s continuing effort to address this critical issue: the establishment of a new 15- member Cost of Living Committee, which is specifically charged with looking at ways to address this urgent need.
The Chief Minister said this is one of Government’s responses to the public’s concerns that the cost of living is high.
Broderick Penn has been named Chairman of the Committee, which includes 14 other members.
The Chief Minister said the first issues that they expect the Committee to look at is the issue of a two-tier customs duty system. He said the idea behind this proposal is to allow businesses to import goods at discounted prices and consequently pass the savings on to customers. The Committee will also assess the present cost of living, identify the factors causing the cost of living to rise, and advise Government on ways to stabilise living expenses in the Territory.
According to the Chief Minister, the Committee will be asked to brainstorm other means for making sure the prosperity people enjoy is put to work on behalf of the entire community. BVI prices and interest rates tend to be largely driven by external market forces, especially those emanating from within the United States, which is the main trading partner of the BVI.
The Chief Minister is confident that this committee will work diligently and quickly to generate new ideas for how people can better meet this shared goal. | | | | Reads : 317 | | | |
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