Give small retailers a fair go MP urges

Written by Mathew Lemisio
Monday, 21 January 2008
MP from Faleata i Sisifo is concern that big companies operating both as wholesalers and retailers are killing small retail shops like this one. The increasing number of companies operating as both wholesalers and retailers concerned MP from Faleata i Sisifo, Fepulea’i Rimoni Aiafi. Fepulea’i told Parliament last week that companies such as Frankies, whom operate as a supermarket and a wholesale kills business for small retailer shops around the country. Frankies have opened up one of its biggest shop in Fepulea’i’s constituency and the former Airport Authority boss said this was causing hardship on small shops. “Say for example these big companies are selling bags of rice or boxes of mutton flaps at their wholesale,” Fepulea’i pointed out. “There will be a time when there’s a low supply of these products. What these big companies do is they stop selling them to retailers as wholesale products but instead sell them in their supermarket at a retail price. This is not fair on small business owners.” Minister of Trade and Deputy Prime Minister, Misa Telefoni said this was the common trend at this modern age. “The main aim is to provide customer satisfaction,” Misa replied. “If we look at countries like New Zealand, there are supermarkets that open up to 24 hours. Foodtown for instance. This is basically to provide customers with the services they need.” But Fepulea’i was not impressed. He said Misa should not compare Samoa to New Zealand. He said if this was encouraged in Samoa then small businesses will be ruined. Fepulea’i’s concern is strongly supported by retail shop owners who Newsline spoke to yesterday. “It’s a concern for us retailers,” one local shop owner in the town area said. “I mean there are times when we go to some wholesales to buy some products and they told us it’s out of stock but actually they are putting it aside to stock their supermarket. So we’re basically losing out.” Misa said the Ministry responsible is looking into this issue. Meanwhile, Fepulea’i also urged the government not to privatize Radio 540 AM which is under the Samoa Broadcasting Corporation now up for privatization. Prime Minister, Tuilaepa Lupesoliai Sailele Malielegaoi said privatization benefits. “I have been to many opening ceremonies,” the Prime Minister said. “Most often our people from SBC turn up late. But these other TV stations and radio have always been on time.” Tuilaepa said privatization made workers work harder. “If they are still under the government’s wing, they will still slack because they know they will still get paid no matter how slack they are. “But if they are operate as a business, that makes them work harder because they know if they don’t work they won’t get paid.” Tuilaepa added that the government will closely monitor how SBC will fare under its new private owner. “If it doesn’t work out well then the government will take it back.” Fepulea’i said he was not against the idea of privatizing some government organization but the idea of government holding on to Radio 540 AM or 2AP benefits the country. “That way its affordable for the public to make their public announcements,” Fepulea’i said. “One thing for sure is profit is what any business strives for. That means people will charge higher prices for their announcements.” Speaker of the House added his pint on the issue by said that it was cheaper for the Ministry of Legislative to have Parliament’s proceedings live on air. Comments (0) Subscribe to this comment's feed Write comment Name Email Title Comment
Last Updated ( Monday, 21 January 2008 )

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