Treasury Secretary Simon Wilson yesterday said he was not confident the cost of construction materials would rise dramatically as a result of inflation, saying the government was trying to address rising costs in the construction sector by exempting certain items from duty. I explained that there is
While some in the construction sector have claimed that Russia’s war in Ukraine and ongoing supply chain problems have caused construction sector costs to skyrocket, Wilson said he’s never seen the evidence first hand. I said no.
“I don’t think the numbers show that to be true,” he said.
“Inflation for construction materials has never increased dramatically. So I don’t know if that’s true.
“That’s a statement made without any facts to back it up. Plus, as you may remember, the budget reduced the entire building material to duty-free, which immediately lowered the price level.
“What I’m saying is that I don’t think there’s any evidence of price increases in the Building Materials Index.”
Wilson, a bystander at yesterday’s eProcurement portal launch, said there are other factors that could lead to higher prices, such as higher fuel and transportation costs, but the sector as a whole is about as strong as has been stated. said it should not be affected by Depending on government measures.
Bahamas Association of Contractors President Leonard Sands recently said construction costs have increased by up to 30%.
But Wilson argues that government intervention should start to bring down the cost of building materials.
The government has reduced tariffs on budget roofing, plumbing and electrical goods.
Prime Minister Philip Davis said the changes “will make construction projects more affordable for everyone in the Bahamas.”
Sands argues that contractors will have to absorb already estimated project cost overruns due to rising material costs.
He said inflation in the sector is a concern for contractors and has already affected the business operations of some companies.
https://thenassauguardian.com/wilson-not-convinced-of-dramatic-increase-in-construction-material/ Wilson isn’t convinced of the dramatic increase in construction materials