Inflated rent rates must be addressed – Hon Shereen D. Flax-Charles
Today July 25, 2019 as legislators lend their voices to the Consumer Protection Bill tabled by Premier and Minister of Finance Honourable Andrew A. Fahie (R1), several Members on both sides of the House of Assembly (HoA) made their contribution.
During her presentation at the Fifth Sitting of the First Session of the Fourth HoA, which supported the need for the legislation, Junior Minister for Tourism Honourable Shereen D. Flax-Charles called for the sore issue of inflated rent prices to be addressed.
Disparity in average income vs financial services’
“Mister Speaker, I am not an economist, but I have identified what I consider to be the primary reason for our increasingly outrageous costs for rent in the Virgin Islands that distress and disenfranchise our people on a regular basis,” said Hon Flax-Charles.
Citing the 2017, BVI Finance commissioned report entitled ‘Creating Value: The BVI’s Global Contribution’, which detailed the impact of the financial services provision to the global economy., Hon Flax-Charles said one illustration that stood out was the comparison of the general average income per annum when compared to that of workers in the financial services industry.
“It is an age-old fact that the Virgin Islands’ Gross Domestic Product per capita is skewed upwards significantly due to individual sectors with exponentially larger salaries. The domestic market is a living organism and the presence of these higher earning pockets has caused it to respond with inflated prices that should appeal to these workers,” she noted.
She further added, “In looking at what is driving the decisions for high rent costs, as a Government there is an opportunity for us to hold consultations with landlords and stakeholders to see what drives the high prices? Is it insurance costs? Mortgage/loan fees? Is it our own free will because there is no price control? We have to get to the bottom of it to adjust it.”
The first female legislator from Virgin Gorda alluded to current meetings with insurance companies and stated that it is time for lawmakers to meet with the banks to understand this phenomenon even more because in everything there is a ripple effect.
“Yes, I have offered my theory, but as representatives on the frontlines we all know that the experiences and decisions of a person are as complex as they are challenging. Is it that mortgages are high? Is insurance too expensive? How can we reduce the cost of maintaining rental units so that the cost price can in turn be lowered? This is the conversation we need to have.”
Affordable housing system to regulate rent
Hon Flax-Charles also reiterated her full support for an affordable housing system. “A regulated presence on the market would serve as a reasonable standard having the effect of encouraging property owners to reduce their costs in turn while still earning a profit.”
“Mister Speaker, for us to address the adverse consequences of the market that negatively affect our people and businesses, as Government we will continue to do our due diligence and home work to understand what works and what does not work in this Virgin Islands economy. We will continue to do so working in tandem with those stakeholders who are directly impacted,” said Hon Flax-Charles.
She urged her fellow representatives to take stock of the legislation and begin to transform the agencies for which they are responsible so that the Government of the Virgin Islands itself is seen as both a just supplier of services and a diligent, protected consumer.
She stated firmly, “The Government is a supplier of public service. The unconventional administration of Honourable Andrew A. Fahie, which I am proud to be a part of, has already pledged to do our part as policymakers to improve services, while the public officers through the Deputy Governor’s Office transformation of the public service initiative are doing their part to provide services at an optimum level.”
12 Responses to “Inflated rent rates must be addressed – Hon Shereen D. Flax-Charles”
better place and looking out for the people .. kudos for the Consumer Protection Act..