Investigate consumer prices • Rep. Faisao fears traders taking advantage of absence of regulations

Alarmed by the disparity of consumer prices between the CNMI and Guam, a legislator has urged administration officials to investigate shipping companies, wholesalers and retailers who may be responsible for jacking up the cost of goods being sold on the island.

Rep. Melvin Faisao said he has received complaints on the expensive products that have pushed the cost of living in the CNMI as one of the highest in the nation.

“Many have complained to me about why prices are cheaper in Guam for the same goods when Guam is only 12 miles away,” he said, attributing the situation partly to the cost of shipping of products to Saipan or Rota and Tinian which may increase their overall retail value.

But the legislator said the Legislature must step in once the government finds out that others are taking advantage of the absence on any regulations in the Commonwealth to ensure consumer’s protection.

He asked Finance Sec. Lucy Nielsen, Commerce Sec. Frank Villanueva and acting Attorney General Maya B. Kara to jointly initiate the inquiry that will help address the problems.

“I am requesting your good office to investigate whether shipping companies, wholesalers or retailers are taking advantage of Commonwealth consumers all for the sake of making a profit,” Faisao said in separate letter to the three officials. “Making a decent profit is in no way deplorable or illegal.”

The shipping industry, an off-shoot to the $1 billion-grossing garment manufacturing on Saipan, has contributed widely to reducing the prices of consumer goods on the island as the cost of importing these items has gone down with the continued export of apparel products to the mainland.

Faisao, however, wants a full accounting of how the prices are set in the CNMI, noting that Guam has virtually no export to help lower the costs of products entering into the island for retail or wholesale trade.

“In fact, a competitive market usually determines the profit margin,” the representative explained.

“However, if there is little or no competition in the distribution of goods and shipping rates are artificially set and unregulated so as to ensure that certain parties in the distribution chain will realize a handsome profit at the expense of the poor consumer, then the Legislature must take action.”

If the investigation pushes through, this is the first time that the government will attempt to solve a public dilemma over consumer prices which have become bigger problems for islanders trying to cope with the current economic hardships.