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A $221 supermarket bill for three small bags of groceries has underscored the seriousness of the BVI’s cost-of-living pressures for Junior Minister for Financial Services, Economic Development and Digital Transformation Lorna Smith.
Speaking on the Government’s Virgin Islands Voice programme earlier this week, Smith shared her experience as residents continue to complain about high prices and the strain on household budgets.
“I shopped up until today, and my bill for three small bags was $221. So we do find ourselves in a serious situation in the British Virgin Islands,” she said.
Smith linked the pressures to international conditions, including the continuing war in Ukraine and conflict involving Iran, the United States and Israel. She said disruption affecting the Strait of Hormuz had implications for fuel supplies and prices.
With almost everything consumed in the BVI imported, she said the Territory remains heavily exposed to overseas costs.
“But this government has not stood still at any point,” Smith stated.
She pointed to relief measures introduced in May to ease food and electricity costs, saying their purpose was to stabilise prices.
“I don’t mean that we brought the prices down on everything because this is impossible,” she said.
Smith said work by the Central Statistics Office and Trade Department indicated that the measures had helped moderate prices.
She outlined four areas of assistance: reduced duties on essential items in the protected basket-of-goods; calculating import duties using free-on-board values rather than including insurance and freight; a 50 per cent reduction in container charges; and electricity subsidies.
“Perhaps the most significant cost for us was subsidising electricity to the tune of $1 million per month,” she said.
The basket-of-goods initiative ended in July and cost the Government $6 million. Smith said it is being reviewed, with the possibility of adding more food items.
However, Deputy Director of the Department of Trade Dr Lincoln Bobb, who also appeared on the programme, said most of the 187 households surveyed reported that they had not felt the initiative’s impact.
Bobb suggested that limited awareness of which products were included in the basket could have contributed to that response.
Speaking on the Government’s Virgin Islands Voice programme earlier this week, Smith shared her experience as residents continue to complain about high prices and the strain on household budgets.
“I shopped up until today, and my bill for three small bags was $221. So we do find ourselves in a serious situation in the British Virgin Islands,” she said.
Smith linked the pressures to international conditions, including the continuing war in Ukraine and conflict involving Iran, the United States and Israel. She said disruption affecting the Strait of Hormuz had implications for fuel supplies and prices.
With almost everything consumed in the BVI imported, she said the Territory remains heavily exposed to overseas costs.
“But this government has not stood still at any point,” Smith stated.
She pointed to relief measures introduced in May to ease food and electricity costs, saying their purpose was to stabilise prices.
“I don’t mean that we brought the prices down on everything because this is impossible,” she said.
Smith said work by the Central Statistics Office and Trade Department indicated that the measures had helped moderate prices.
She outlined four areas of assistance: reduced duties on essential items in the protected basket-of-goods; calculating import duties using free-on-board values rather than including insurance and freight; a 50 per cent reduction in container charges; and electricity subsidies.
“Perhaps the most significant cost for us was subsidising electricity to the tune of $1 million per month,” she said.
The basket-of-goods initiative ended in July and cost the Government $6 million. Smith said it is being reviewed, with the possibility of adding more food items.
However, Deputy Director of the Department of Trade Dr Lincoln Bobb, who also appeared on the programme, said most of the 187 households surveyed reported that they had not felt the initiative’s impact.
Bobb suggested that limited awareness of which products were included in the basket could have contributed to that response.
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