The Minister of Finance, Danny Faure was in the National assembly this week to answer questions. One of the questions which have been given publicity by the government-owned press was asked, unsurprisingly, by the so-called Leader of Government Business in the National Assembly Mrs Marie-Louise Potter.
Not surprisingly also, her question dealt with the hot issue of the day, which is the effects of the gradual devaluation of the currency over the last twelve months by the Central Bank. The spin now is how to deal with the after effects. But Faure could conceivably be in hot water for giving the false impression that the Seychelles Chamber of Commerce and Industry (SCCI) is colluding with him to impose new price control measures starting January 2008.
We quote what Nation said Faure said: “Minister Faure pointed out that it is the Government’s policy to protect the most vulnerable in society and it is in line with this that as from January 2008 the new price control system, which is currently being discussed and analysed with the Chamber of Commerce, will come into force.”
Here is, however, what the SCCI said it told the Minister when a delegation of the organisation held a meeting with him in early September, which appeared in the August issue of the SCCI newsletter:
STOP PRESS
The SCCI met with the Ministry of Finance and Governor of CBS on Thursday 6th September 2007 to discuss its input to the Budget preparations for 2008. A detailed presentation of SCCI proposals for the 2008 budget was presented at the meeting.
Salient points include the need to fully and effectively address the convertibility of the Seychelles Rupee, ensuring that business legislation be revised to establish a level playing field with rules and regulations applicable equally to all, dismantling of price controls and other restrictive trade practices, review of licensing and social security legislation, review of the current monetary policies and levelling the business playing field.
Price controls, as the SCCI has continuously reminded the government, does not and has not kept prices down. It is price controls which are today causing prices of imported goods to rise higher than they should be. It is the creeping devaluation combined with the black market, over-invoicing, trades tax and GST which are responsible for the inordinate rise in prices of imported goods. Price controls contribution is forcing importers to over invoice in order to recoup the premium of exchange rate demanded by the black market. Removing price controls now will cause prices to drop immediately, says the business community.
If what Seychelles Nation said is what Danny Faure actually said, it only goes to prove once again that the business community has been taken for a ride by the government. Faure’s idea of a consultation is not to take advice but to manipulate public opinion for political expediency.