PCP Wants Maximum Prices For Key Food Items

PCP Engages With People in Funchal

In Funchal, the Portuguese Communist Party (PCP) has engaged with people in Funchal, advocating for a legislative initiative that seeks to establish a system of maximum prices for essential food items. MP Ricardo Lume, a key proponent of this initiative, underscores that it is crucial to make sure that big retail companies don't use profit-focused tactics to control access to essential food products.

Criticizing the Status Quo: Lume's Perspectives

Lume criticizes the large distribution sector for suppressing prices paid to producers, undermining small businesses, and appropriating speculative profit margins that subsequently affect consumer prices. He highlights the ineffectiveness of the zero VAT introduction, noting a 10% increase in average prices for products with zero VAT after the measure concluded. According to Lume, without proper control over margins and prices, zero VAT often results in further margin appropriation by large retail providers.

The MP emphasizes the economic profits made by large retail providers, citing this as evidence necessitating intervention to safeguard public interest, particularly in ensuring access to essential goods. Lume stresses the unique challenges faced in the region, such as insularity and peripheral costs, making the situation even more complicated

Proposed Government Action: PCP's Plan for Price Control

The idea is to set maximum prices for essential food items, considering actual costs and a fair margin. These items include products with reduced VAT. To oversee the proposed maximum prices regime, the PCP recommends involvement from the government. The proposal suggests the creation of a coordination and monitoring unit, potentially manifesting as an observatory for prices.

A Valid Point, Somehow

The concern raised by PCP is not an isolated issue, and it is not confined to Madeira. While excessive regulations can have adverse effects in various ways and may harm a functioning democratic environment, those expressing these concerns have a valid point when existing government institutions fail to provide satisfactory solutions to these issues.

Source: Diário de Notícias Madeira