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Incomes and Pricing Commission should play in the current multi-currency system.
They clashed during yesterday’s public hearing convened by a Parliament Portfolio Com-mittee on Industry and Commerce.
Members of the business community told the committee that the NIPC had no role in the current system, as pricing should be left to market forces. Consumer representatives responded by castigating the business community for their “capitalist mentality”, saying there has been an arbitrary increase of prices over the past six months with no justification.
The Consumer Council of Zimbabwe executive director, Ms Rosemary Siyachitema felt there should be provision that imposes some measure of punishment to errant businesses and not leave consumers at the mercy of businesspersons most of whom have profiteering attitude.
The committee chaired by Buhera North MP, Mr William Mutomba had asked for stakeholders’ input on the NIPC Amendment Bill which seeks to amend the NIPC Act by changing its role from a price regulatory authority to a price monitoring and advisory board.
In his presentation Zimbabwe National Chamber of Commerce vice president for Mashonaland region, Mr Tendai Mavhima said the amendments were proper as they took into account the current economic environment where there is no price regulation.
“We believe the market economy is the best, controls destroy entrepreneurship and excess controls may lead to shortages. Currently, we are at lower level of production and if you put controls you will reduce production,” he said.
Mr Mavhima said the Bill was right in reducing NIPC to an advisory role.
Retail Association of Zimbabwe vice chairperson, Ms Pegay Rambanepasi concurred with ZNCC saying the envisaged framework in the proposed legislation was the best way to go.
“This is an ideal situation. What the Bill seeks to do is to regularise the present situation where price determination is left to market forces,” she said.
She said retailers had rejected coins from banks because they were coming to them at a cost that would compromise their business.
Ms Rambanepasi said they would support Finance Minister Tendai Biti’s idea to bring coins from the United States.
In her evidence, Ms Siyachitema said reducing the NIPC’s role to mere advisory was not prudent. This, she said, comes in the wake of unprecedented price hikes every month since September, yet no salary increases have been awarded monthly to justify the frequent price increases.
She said judging from the pricing trends, business people seemed not to appreciate the real value of the US dollar as they were hiking prices in a manner reminiscent to the Zimba-bwe dollar era.
NIPC chief executive officer, Mr Esau Ndlovu said business’ old habits of arbitrarily raising prices have not gone.
“The market does not always operate as a perfect one because consumers are complaining of speculation and monopoly,” he said.
Zimbabwe Teachers Association chief executive, Mr Sifiso Ndlovu said the Bill creates a new status of the NIPC, from a commission to a mere board, which he said was weaker than what the current law provided.
“This board might be weaker as it subordinates itself to a minister unlike a commission. If we remove controls, we will open up (the economy) to greediness, so protection of consumers is very important in this embryonic stage of the economy,” he said.
Representing civil society, Mr Paddington Japajapa said the role of just being advisory and lobbying being done by NIPC and CCZ was not enough to give cover to consumers, as there was need to give them teeth as well.