BASSETERRE, St. Kitts – MANAGING DIRECTOR of RAMS Trading Limited, Kishu Chandiramani disclosed that commencing from January 2011 he would have to pay more than EC$4M for the annual supply of electricity to his three supermarkets in the Federation.
In an exclusive interview with SKNVibes Business, Chandiramani said prior to the recently announced increased rates, he was paying EC$2.2M for electricity consumed by the three supermarkets he owns; two on St. Kitts and one on Nevis.
Chandiramani also said that while he found the figure to be high, the new one would further reduce his company’s profit margin.
He pointed out that many people perceive his company to be making huge profits, but noted it was far from the truth. “I do not make the kind of profit that people believe I make, because when I factor in the overheads and other costs, my profit is small.”
The Managing Director stated that while he supports the government’s attempts at increasing its revenue through taxation, he believes that a more professional approach should have been adopted in its implementation.
Chandiramani is of the view that while taxes are important in the sustainability of any country, it is prudent to forewarn and educate the citizens and residents of the time and reason(s) for the implementation of certain fiscal measures.
“You cannot tax and tax…because you will create a problem by pushing so many taxes upon the people, and it will kill the possibility of proper growth,” he said.
Chandiramani commended the efforts of Dr. Timothy Harris while serving as Minister of Finance. He said that Minister Harris’s performance was noteworthy, stressing that the Federation would have benefited more had he continued heading the Ministry of Finance.
“I believe that Dr. Harris has done a good job. And I think that he should have remained as the Minister of Finance because the Federation would have continued to benefit from him.”
In response to the belief that he receives preferential treatment from the government, the veteran businessman said it is a misperception that he gets anything and everything that he wants because he is making millions. He noted that on many occasions he was given the “royal run around and hard cards” by certain government officials.
The RAMS boss stressed that he had many disagreements with the government, noting there were instances when he sought permission to get certain things done or would have offered advice and had them rejected, because some people hold the view that he has enough and should not get anymore.
In his view on competition, Chandiramani said once an individual does not have a monopoly over the commodities he or she has on sale, they are forced to compete with others in the same business, adding that without competition people would become complacent.
“I believe that competition is good and if I step aside so that they can do as they like, then what is the use of competition.”
He however pointed out that his businesses are able to stay alive due to the hardworking staff and unwavering support and assistance given by his wife, children and sons-in-law.
“It is because of everyone within the company that keeps me going. As such, it is my responsibility to ensure that I can maintain remaining viable so as to ensure my staff feels secured in their jobs.”
Chandiramani pointed out that he was forced to diversify in an effort to survive and that he would have to further diversify this year in order to remain competitive.
“The reality is that survival depends upon how well one can diversify. With the mounting challenges and difficulties, being able to diversify will determine whether one remains successful or folds.”
He said with the very high electricity rates with which the public would be faced, it might prove too much for many small businesses even though that utility is one of the most important factors in any business.
He however declared that with these new fiscal measures, the government could take itself out of its financial difficulty once prudent management is applied.
“It is very important that government recognises that the strain and challenges will increase with all these new taxes. Therefore, once they apply prudent management of the funds received, the Federation will be in a much better economic situation.”
He added that 2011 would be one of the toughest economic years the Federation would have to face and that careful, effective and efficient management by government is of paramount importance.
He further added that while he could not predict what the future holds, he is confident that the nation could survive the difficulties and challenges through hard work, dedication, commitment and the will to succeed.
