Local oil company policies came under fire in the House of Assembly Wednesday afternoon, for what one parliamentarian called unfair contractual agreements.
Carmichael Member of Parliament John Carey, a former executive manager with Texaco Bahamas, said that there are some oil companies that treat retailers unfairly.
“I refer to the term of a contract which is done for a period of one year, when the investment required to go into a contractual relationship cannot be recouped within a year but three or four years,” said Mr. Carey, during his contribution to the Consumer Protection Bill.
The Bill seeks to update the laws relative to consumer protection, relating to the supply of goods and services. It takes into account international standards and fundamental principles for consumer protection that exists elsewhere.
Mr. Carey said that without this legislation, oil companies in The Bahamas could -and are at will – to impose whatever contractual obligation they want to their favor and the Bahamian retailer has no recourse or protection. “Either he or she agrees with the terms of the agreement put forward by the oil company, or walk away. This must stop now…I sound the bell that unscrupulous business behavior will not go unnoticed or unpunished,” Mr. Carey said.
Another example of where Bahamian oil retailers can be adversely affected, according to Mr. Carey, is in rents set by the oil companies.
“An oil company can levy a rental increase on a property with impunity and the dealer has no say and either takes it or is forced out,” Mr. Carey said. “This cannot be right.”
Noting that small businesses are the backbone of all great economies, including the United States, Mr. Carey said it is essential that existing small businesses are protected in the contractual arrangements they make with multi-national corporations through this type of legislation.
It is Mr. Carey’s view that white-collar crime is a thorn in the sides of Bahamians and the proposed legislation would go a long way in dealing with it.
“Something must be done to weed out the persons -including politicians – who tarnish our good name, people who prey on our poor people and investors. They must know that this will not be tolerated…our image counts,” he said.
By Hadassah Hall, The Bahama Journal
