PM: PHARMACISTS MUST OBEY RULES – Davis warns sector over price controls even as meeting held

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

PRIME Minister Phillip “Brave” Davis said yesterday the government expects the pharmaceutical sector to fully comply with the new price control regulations in the coming days despite receiving pushback from the sector.

Mr Davis spoke after pharmacies shut down operations across the country on Tuesday after failing to come to an amicable agreement with the government over their expanded price control regime that includes the reduction of the profit margin on price-controlled drugs.

The new rules came into effect last month and were set to be enforced on November 1, but out of fear of being found in breach of the law for non-compliance, many pharmacy operators decided to close their doors.

Some stores reopened Tuesday afternoon and the remaining reopened yesterday after the government agreed to meet with industry representatives the same day, on the stipulation that the businesses end their action.

 The outcome of those meetings was not clear.

 However, Prime Minister Davis told parliamentarians in the House of Assembly yesterday morning that his administration was of the view that pharmacies would uphold the law and continue business as usual.

 He also acknowledged the frustrations many business owners face given the high cost of living, but explained that “the bottom line is the costs of this global inflation crisis must be a shared burden.”

 He was adamant that the burden must not be placed on the backs of struggling Bahamians alone and appealed to businesses to do their part in helping to share the load.

 “We are very mindful of pressures facing Bahamian businesses,” Mr Davis said as he led debate on a resolution to increase the country’s minimum wage.

 “Similarly, when we added diapers and more food items to our price control list, we are signalling to businesses that we expect the savings from reduced customs duties to be passed on to Bahamians. Business owners will still make a profit, just a little less than they would otherwise.

 “We have listened to their concerns, and we have been flexible about some of the details. We will continue to review the impact of price controls on both consumers and businesses. But the bottom line is - the costs of this global inflation crisis must be a shared burden, not one that falls primarily on Bahamian families that’s working to get by. It’s a shared burden. That’s my cry to all -so that’s all I’m asking - let’s share this burden.

 “Madam Speaker, the new price controls on medications are in effect. Pharmacies will remain open and we expect pharmacies to come into full compliance in the coming days. In raising the minimum wage and expanding price controls, my government is holding firm in protecting the interests of the Bahamian people.”

 Similar comments were echoed by Economic Affairs Minister Michael Halkitis on Tuesday who insisted the government will not reverse its decision to enforce new price control expansion.

 He said the government expects the changes to be implemented and warned that operators who fail to adhere to the policies will face the consequences.

 Under the government’s initial proposal, price-controlled mark-ups range from 15 percent to 18 percent for pharmaceutical wholesalers. For retailers, the range is from 35 percent to 40 percent.

 Both sectors have opposed the changes and have since submitted proposals with alternatives that could simultaneously offer relief to Bahamians and not hurt their businesses.

 Asked if he was concerned about continued pushback from stakeholders, Mr Davis told reporters in a separate interview: “I am not concerned about it. I am trying to get them to appreciate that this should be a shared burden.”

Comments

Flyingfish says...

So if your making 35-40% more on each object you sell, and you cant make money what is going in the business structure I wanna know.

Posted 3 November 2022, 9:26 a.m. Suggest removal

realfreethinker says...

This 35-40% is markup, not profits. At that small margin they will be lucky to make 10%

Posted 3 November 2022, 9:55 a.m. Suggest removal

ohdrap4 says...

I have noticed that too. The pharmacy owners keep saying 'PROFIT MARGIN", when it is really markup.

So they have to pay rent, utilities, salary, equipt, out of that 40%.

I do not know about the pharmacy business, but the grocery business operates on 3 or 4 % profit margin.

When you lower the markup you end up in the red.

But the greatest shortcoming of humanity is its inability to comprehend percentages.

BTW, the most businesses operate on 80 to 100% markup.

Posted 3 November 2022, 10:51 a.m. Suggest removal

One says...

Imagine if the Cashiers thought of their lives like a business. Can their salaries cover, clothes, food, travel, housing, etc.? How much "profit" do they have left after expenses? Most other them are running their "business" out of someone else's property (home) because they can't afford their own.

They're a business running at a loss. The hypocrisy we allow. We have to be reasonable with the profiting business but a lower-class individual need to sort themselves out. They're free and have options, work or beg.

Posted 3 November 2022, 11:06 a.m. Suggest removal

bahamianson says...

So , some of the so called politicians missed the deadline this past year for their dis losures. They broke the law with no consequences. Now a politician is telling others to keep the rule of law. This same politician apparently was out during coovid restrictions and the people where gaslighted. This same politician left the other bahamians with Covid whom could not go to the united states for treatment, and he went to the united states for treatment. He told the Bahamian people that his daughter wanted him close to her. His followers accepted his explanation. This is unbelievable. Once you are eating steak, I will accept cornbeef. What in the world is this.

Posted 3 November 2022, 10:08 a.m. Suggest removal

Proguing says...

We need price control regulations for attorneys. Maximum $20 per hour!

Posted 3 November 2022, 10:34 a.m. Suggest removal

ohdrap4 says...

And doctors and plumbers too.

Posted 3 November 2022, 10:54 a.m. Suggest removal

plan242 says...

Yes. I agree. Many legal transactions are a required necessity, just like insurance too, so where is the “shared burden” there? The lawyers in politics should have price controls imposed on their practices. Then there’s the banks, another necessity… I’d like to see them “share the burden” too!

Posted 3 November 2022, 3:09 p.m. Suggest removal

The_Oracle says...

And so pharmacies will reduce their quantity on hand, running out will be more frequent.
And then, when the desired result does not occur, who or what category is next?
Who will invest if there is no return on investment in infrastructure or inventory?
And the power bills, salaries, taxes continue unabated......

Posted 3 November 2022, 2:24 p.m. Suggest removal

moncurcool says...

Amazing how Davis talks about everyone needs to share the burden, but yet no where have you heard him talk about government cutting spending or vat to carry their share of the burden.

Posted 3 November 2022, 4:47 p.m. Suggest removal

truetruebahamian says...

Insurance companies will be taking another closer look, charging more, and if more persons like me who have opted out of their policy rates and decided to go it alone, the doodoo will hit the fan.

Posted 3 November 2022, 5:37 p.m. Suggest removal

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