The new government has approved a budget of $525,000 to support the Ministry of Trade and Economic Development’s (MTED) capacity to monitor and regulate prices of goods and service, Minister for Trade and Economic Development announced on Friday during a government press conference.
The funding will be used to acquire four vehicles at a cost of $300,000 and to hire ten additional staff members with a budget of $225,000. This initiative aims to strengthen the ministry’s ability to survey pricing and ensure fair trade practices.
Hon. Kapelieli Lanumata, Minister for Trade and Economic Development and chair of the Tonga Competent Authority, highlighted the need for increased resources to effectively monitor the pricing of basic necessities. The Competent Authority regulates 30 essential items, in addition to petroleum and transportation tariffs.
“We thought it (goods and service prices) was because of the hike in oil prices due to the Ukraine war, but oil prices dropped, yet these prices remain,” Prime Minister Hon. ‘Aisake Eke said, addressing concerns over persistent high costs of goods and services.
Minister for Infrastructure Hon. Dr. Taniela Fusimalohi said that the government plans to introduce legislation to prohibit price fixing and the withholding of stock to artificially inflate prices. “That includes government tariffs, which must have justifiable reasons for the increase,” he added.
The Consumer Protection and Fair Trade Division of MTED manages prices in accordance with the Consumer Protection Act, Price and Wages Control Act, and Weights and Measures Act. The ministry will also review the list of regulated items, such as local produce and fish, to prevent sudden price surges.
“We’re taking a people-centered approach,” Lanumata emphasized, stressing the government’s commitment to protecting consumers.
The press conference, held at the St. George Government Building, also included the Minister for Agriculture, Hon. Dr Siosiua Halavatau and Minister or Health, Dr. Hon ‘Ana ‘Akau’ola.
