Protecting consumers

Monday, 11 July 2016 00:00 - - {{hitsCtrl.values.hits}}

Cabinet meets tomorrow to decide on fresh measures to control prices of essential goods in a bid to reduce the steep impact on staples brought on by the recent VAT increase. Several steps have been discussed already by a special committee headed by President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe, which include gazetting 10 more items subjected to price control and strengthening the Consumer Affairs Authority (CAA) to conduct stronger monitoring.

The Government has gone on record slamming errant traders for increasing prices on goods that are VAT exempted but it is still at fault for not clearly communicating how and where VAT increases would come into play when changes were introduced in May. The repeated failing on the side of the State to clearly articulate which sectors and what items are under VAT along with lack of stakeholder involvement has exacerbated price hikes and cost the Government politically.

Food, especially clean food, is a basic right. Consumers have the right to have access to food meeting adequate standards that are priced to provide access to the most essential of items. It is evident that no one is safe from the menace of unscrupulous traders. It is not limited to Pettah and an islandwide monitoring system has to be put in place to apprehend and punish the offenders. Consumer rights is an oft-discussed subject in Sri Lanka, but no one seems to be interested in taking it to a meaningful level.

The Government is fond of repeating that Sri Lanka is now a middle income country, but its food standards do not reflect this statistical achievement. Moving beyond basic items netted by the CAA, even imported products of low quality are readily accepted by consumers, unlike in other countries. Not only should the Government work to catch errant traders but it must initiate transparent consultation with consumers before increases on electricity tariffs, fuel prices, gas and other items.

Most local consumers lack knowledge on rights and duties, take certain matters for granted, and lack resources to pursue rights, while in other countries consumer rights that were limited to safety, information and choice have progressed to rights to satisfaction of basic needs, consumer education, redress and rights to a healthier environment.

Regulations and business ethics that aim for these standards need to be implemented in Sri Lanka as well. Even the CAA Act is underutilised, with almost no large-scale straying traders being punished by it to set a precedent for better policing.

The current Government plan to use 1,500 State officials, police and even army is unsustainable as it is a stop-gap measure and should ideally be backed by a longer term plan where the CAA is given a broader mandate and link to consumers. The charging of tax at the right point and consumers getting a better deal can be mutually inclusive policies but they need to be implemented consistently.

Exporters and food producers in general also need to be provided with incentives to manufacture or grow food sans excessive pesticides and preservatives. All these fall under the large umbrella of consumer protection, which is sadly full of holes.