Butane companies have been closed for 96 hours and this evening - the country was on the verge of a butane crisis as countless homes, restaurants and transport services have run out, or are on their last fumes of butane. But there's good news this evening: 7NEWS has confirmed that government and the butane companies have agreed to a compromise. The details are not fully known at this time, but we do know that tomorrow morning you will be able to get butane and all importers and distributors will be opened.
And while that's the good news, the bad news is that a 100 pound cylinder will cost $120, and increase of ten dollars. This morning, before the compromise was agreed to, the Prime Minister told us that the butane dealers have to accept $120.
Rt. Hon. Said Musa, Prime Minister
"We've offered as you know a compromise increase of ten dollars. I understand they rejected it. I believe that they should reconsider their position because as far as government is concerned, having looked at all the figures, this $10 increase is what is justified in the circumstances. What they want is a virtually $20 increase, $18 to $20, based on the highest landed cost of butane in Belize from Mexico and we are saying you cannot base the price to the consumer. We have to protect the consumer and if they can get the butane from a cheaper source such as in Central America then that is what they should do."
Jules Vasquez,
Sir but do you foresee that by the end of the day we will have butane supply?
Rt. Hon. Said Musa,
"I certainly hope so. What I can tell you is that we have to prepare for a backup contingency plan in the event that these people continue their strike which I think is totally unjustified but our government is not resting on this, we are looking at contingency plans to deal with the situation."
Jules Vasquez,
Will you accept the proposition they made that you all are in fact making a GST windfall from the increase in acquisition prices, that the GST figure continues to increase?
Rt. Hon. Said Musa,
"No I don't accept that at all. In fact of we were to remove the GST tomorrow, the price will still keep on going up. So that is not the real solution. It may become in time part of the solution that the government is prepared to remove the tax."
Jules Vasquez,
Are you flexible right now on the GST?
Rt. Hon. Said Musa,
"I am, yes. I am certainly flexible. But what I am saying is let us deal with the immediate situation and find a reasonable price for the butane in Belize."
Ava Diaz, Love FM
"Over the past few months there has been a steady increase, they've brought this to your attention and instead of putting in what should have been the increase, you have virtually cut it in half and sometimes done nothing at all. Basically they are blaming the government for them having to take this stand."
Rt. Hon. Said Musa,
"You know everybody blames the government for everything. The truth of the matter is that we must go to the facts and if the factual situation is that increase that they are asking for is unjustified."
As the PM indicated, he is flexible on the sales tax. And credible but unconfirmed reports to 7NEWS this evening Say that the sales tax is at the heart of the compromise. Subject to House approval, government will, we are told, remove the GST on butane for the December shipment. Taking that as a gesture of goodwill, the butane companies have reportedly agreed to forego their expected margins for this month. And it's come just in time for
one small restaurant owner Olive Leslie. She told us today what was her backup plan.
Olive Leslie, Olive's Kitchen
"I have maybe one more day of cooking an after this I'll have to bring my gas from home because I don't have any. Its so ironic because I call Customs and I asked them if I put my gas tank in the back of a pickup truck, drive over to Chetumal and bring it across if it is going to be problem and they said I need a license."
Keith Swift,
You're willing to pay the $129, that's what they want Musa to do?
Olive Leslie,
"Well it's not the fact to pay the $129. Mr. Musa can take the tax off of it and then we won't have to go through this hassle. But I don't blame the gas companies because they have to survive."
Keith Swift,
What's the worst case scenario for you right now?
Olive Leslie,
"Well I am going down town to look for some firewood....because what else will we do? You think they have any at court house plaza?"
And while it has solved that problem, government has another pending. The situation at the Western Border remains calm this evening as the Border Management Agency continues to suspend the implementation of new fees. There was supposed to be a meeting today between all stakeholders to work it out, but that has been postponed.
