Overheated economy causing high food prices: Panday

Basdeo Panday blames the government for overheating the economy through overspending, which he says is contributing to high food prices. And the Opposition Leader says government has a responsibility to do something about it.

In a statement, Panday said it is unfair to place the blame entirely on global conditions and on retailers.

"The fact is while global conditions are affecting the availability of certain imports, domestic conditions are responsible for further costs which suppliers of goods and services are forced to include in their pricing, to deliver their goods and services, to stay in business," Panday said.

"Some of these costs are unnecessary charges caused by inefficiency at the port, time, fuel and labour costs caused by delays as a result of traffic congestion and deplorable road conditions.”

The former prime minister said business people are forced to hire private security because of the crime problem, which adds to the cost of doing business.

"The overheating of the economy as a result of Government’s excessive spending, high labour cost because of poaching by Government’s make-work programmes and increased cost of goods and services by increased inflation, has been responsible for increased food prices," Panday noted.

Panday further accused the government of sabotaging agriculture, which he said adds to the food crisis.

"The rice, beef, diary, provision, citrus and sugar cane industries have been effectively annihilated under this regime. Farmers continue to suffer losses and hardship because of perennial flooding, poor access roads and predial larceny," Panday said, adding that government has bulldozed bearing crops and evicted farmers for its housing programme.

Panday reiterated that the Government has a responsibility to create the climate for development of a stable and sustainable society by taking measures to curb the escalating food prices.