Pay, price squeeze to curb RPI

BUSINESSES will be pressured to reduce prices under a Policy Council plan to control the island’s cost of living.

An anti-inflation strategy revealed in the new States Strategic Plan shows that ministers want to attack prices on two fronts.

Firstly, a competition authority will be formed, with legislation to back it up.

Secondly, the States will attempt to persuade employees to accept increases of less than the full cost of living.

Instead, chief minister Lyndon Trott explains in the document, they will be urged to accept pay settlements based on the RPI figure minus the cost of housing - the so-called RPIX figure.

The Billet d’Etat for debate at the end of the month also looks to set an inflation target - expected to be RPIX at 3%.

Unions said yesterday, however, that they are not looking to make the change.

Unite regional industrial organiser Ron Le Cras said: ‘We are of course unable to chop and change from RPI to RPIX and the States of Guernsey would need to agree with us on any change; currently we are not looking to change from RPI to RPIX.’

Teachers’ union NASUWT said RPI was more appropriate for Guernsey because of the cost of mortgages.(from thisisguernsey)

Are the policy council for real? If they were to open their blinkered vision and take a look at what is going on they might just realise that businesses cannot cut further on their costs...

The costs coming through from suppliers are rising rapidly, over the last few weeks my work has been seeing rises of 6% coming in over the next few weeks...

Oil has doubled in price over the last couple of month's, and any business owner over the last months have already trimmed their costs/expenses to keep competitive, but to now ask that they take a further cut is just pure suicide, they might as well close their doors, (which some are)

One day the council might wake up, and realise that business needs support...