BASSETERRE, St. Kitts - "MOST of us as consumers are looking for a quality product at an affordable price. If competition leads to lower prices for products of good quality, we consider this a good thing. Quality is important especially when it impinges on the health and wellness of the consumer."
Minister of Industry, Commerce and Consumer Affairs, Hon. Timothy Harris made this statement in response to the recent call that was made by the Chamber of Industry and Commerce (CIC) to the Organisation of the Eastern Caribbean States (OECS) governments for the protection of local businesses against the influx Chinese businesses.
In a recent press release, Harris touched on a number of issues that he said were raised by the Private Sector regarding fairness and transparency which he stated are critical and important considerations impacting on the way business is done.
He claimed that the issues have to be examined on their merits, and appropriate interventions made and solutions given where necessary "because unfairness in business when left unchecked undermines the private sector as an engine of economic growth."
"It creates humbugs and bottlenecks and dampens the alacrity of people to invest, and do business," he said.
With regards to the matter of the issuance of licenses to do business, Harris said that that is handled by the Ministry of Finance.
He, however, stated that the matter of the issuance of work permits should be considered in the framework of whether or not they meet the legal requirements, noting that concerns would be raised if the issuance of a work permit disadvantaged a local unfairly.
He further stated that a number of questions may be used for guidance in this matter - Were the job vacancies advertised locally before “foreigners” were offered the job? Are the pay packages offered to foreigners materially different to what were offered to the locals? Will the employer get a local understudy?
Regarding fairness to local businesses, Harris said, "I believe very strongly that local businesses: our hairdressers, restaurateurs, farmers, retailers, wholesalers, distributors and professional community should be given special incentives to help them get started and grow. While we have sought to do some good work here via Small Business Development Act of 2009 which legislated a range of incentives, arguably much more can be done."
He said that the National Entrepreneurial Development Division (NEDD) has instituted training opportunities for owners of Small and Medium Enterprises (SMEs) but this could be more prevalent and regular.
Harris explained that great care may need to be considered in categorizing all Chinese as "foreigners", since some acquired citizenship by investment, noting that as holders of St Kitts and Nevis passports, there are certain expectations, rights and obligations that flow naturally.
He continued, "We will have to look at a range of policy options in discussing the matters which are being raised by the Chamber of Industry and Commerce and by others in the national community. My Ministry stands ready to be part of the ongoing dialogue and solutions."
"Helping locals first and foremost must be a priority at all times," Harris said.
Recently the Chamber of Industry and Commerce (CIC) has called on the Organization of the Eastern Caribbean States (OECS) governments to protect local businesses from the influx of Chinese businesses within the Economic Union.
The CIC stated that even though St Kitts and Nevis does not formally have diplomatic relations with the People’s Republic of China, the concept of one economic space within the OECS makes the threat of trans-border infiltration very real and even easier for these new arrivals into the sub-region.
Over the past few years many Chinese supermarkets, restaurants and retail outlets have been established in St. Kitts, with prominence in downtown Basseterre.
This, along with the current economic crisis, has raised concerns by not only the local business community, but the public as well, that government needs to ensure a level playing field is provided for the survival and growth of local entrepreneurs, alleging that preferences are given to the Chinese.
CIC also alleged that many Chinese entrepreneurs do not contribute to the development of the communities or the nation's youth; they employ a very small amount of locals and send their monies back to their homeland.
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