(Barbados Nation) Prime Minister Mia Amor Mottley has rejected claims made by businessman Andrew Bynoe that Government’s recent minimum wage increase will inevitably drive up food prices across Barbados.
Speaking in the House of Assembly yesterday during debate on the Report Of The Parliamentary Reform Commission, she said such assertions were not only misleading but failed to take into account the broader context of Government policy designed to cushion cost of living pressures.
In the last SUNDAY SUN, Bynoe, managing director of A1 Supermarkets, warned of higher consumer costs due to the adjustment in the national minimum wage which took effect from June 1. He suggested that businesses would have no choice but to pass on the increased labour costs to consumers.
Mottley countered by arguing that the same businesses did not reduce their prices when given significant tax breaks, and that profit margins could be adjusted modestly in the national interest.
“I completely reject the assertions of the owner who has indicated that prices of food must go up purely because there’s a minimum wage in this country,” she declared. “May I remind him that his prices did not go down when the corporation taxes were reduced by this Government from 25 per cent to 5.5 per cent in 2019.”
The Prime Minister added: “If my mark-up and my return was 25 per cent before and my profits were at 15 per cent or 12 per cent, then I can do with 11 or ten per cent – largely because we have to carry everybody with us in these turbulent times.”
She reminded the House that Government had already taken steps to shield the public and the business sector from external shocks, including absorbing freight costs since December 2019. She said these efforts were designed to buffer the economy and ease the burden on both importers and consumers amid global instability.
“This Government did not sit idly by. We moved to protect Barbadians and the business community alike when the pandemic threatened to unravel supply chains. So, I do not accept that a rise in the minimum wage must mean more expensive food.”
Mottley’s response came as part of a broader contribution in which she underscored the significance of democratic reforms and national development gains since the introduction of universal adult suffrage 75 years ago. She reminded fellow parliamentarians that the right to vote, secured in 1950, laid the foundation for transformative policies, including free education, land redistribution, unemployment benefits and the introduction of a minimum wage.
“These were not acts of chance,” Mottley said. “They were deliberate choices made possible by the vote and rooted in the principle that every Barbadian deserves the opportunity to rise.”
The Prime Minister also called for greater national reflection on how governance can continue to evolve in line with the country’s republican status. She hailed the Parliamentary Reform Commission’s extensive work, which included ten public town halls, a diaspora consultation via Zoom and consultations with academic experts, all aimed at strengthening democratic participation.
“Governance must be ventilated openly and the public must always be invited into the room. This Government remains committed to ensuring that democracy is not an act confined to casting a vote every five years, but a living conversation with the governed.”
While Cabinet has not yet taken a final position on the recommendations of the Commission, Mottley expressed optimism that the ensuing national debate will yield improvements to the country’s parliamentary system, reflecting a more inclusive and transparent model of governance.
She stressed that in these uncertain global times, national unity, shared sacrifice and responsible leadership will be essential.