Gov’t establishes cost-of-living task force

The government of St. Vincent and the Grenadines has established the National Cost-of-living Task Force (NCLTF) amid rising prices resulting from the impact of the war in Iran on global oil prices.

“The mandate of the Task Force concentrates on a dual approach of immediate relief and long-term structural change,” the Office of the Prime Minister said in a statement on Monday.

Key fiscal measures include advising on targeted tax relief to mitigate the effects of the Middle East conflict.

“On the supply side, the NCLTF will work with CARICOM to explore alternative sourcing from partners like Guyana and Brazil to reduce the regional food expenditure. At the same time, the group will push for energy cooperation and renewable projects to lower utility costs.
“Ultimately, this body functions as an operational arm committed to safeguarding the nation’s economic sovereignty and protecting the most vulnerable Vincentians from global volatility.”

The release said the NCLTF is a strategic initiative, approved by the Cabinet on Thursday and responds directly to a systemic threat caused by the closure of the Strait of Hormuz.

The statement said that with Brent Crude oil rising to US$110 per barrel and shipping risk premiums increasing sharply, the government is “shifting from a reactive stance to actively address the inflationary shocks in energy, food, and logistics”.

The statement said that the NCLTF “adopts a whole-of-nation approach to dismantle traditional operational silos”.

The task force, which is chaired by the Ministry of Finance and Economic Planning, combines policy leadership from the ministries of foreign affairs, agriculture, blue economy, and tourism.

“This diverse group also includes vital technical and social partners, such as representatives from major labour unions, as well as operational experts from the Customs department, the Port Authority, and Argyle International Airport,” the release said.

It said that “private sector stakeholders” are also integral to the framework, including the Chamber of Industry and Commerce, key importers, and the state-owned electricity generation company, VINLEC.