The Government has shot down the Opposition's suggestion for the provision of a subsidy on basic food items, saying the country's debt burden was already too high a cost on government revenues.

"The thought of a subsidy is too challenging for us to address at this time with the type of debt burden that we carry," said Samuda.

The debt stands above $970 billion. Its servicing is the largest charge on the budget, amounting to some $18.2 billion of expenditure on average per month for interest and principal repayments.

"If we didn't have debt burden, then we could enhance the whole process greatly by giving more assistance to the vulnerable consumers," he said.

The three-month-old Jamaica Labour Party administration has been hit by spiralling fuel and food prices, as well as a $23-billion repair bill for damage caused by Hurricane Dean since assuming power.

"We are operating in a market economy and the government doesn't have the handle and cannot determine these prices," said Samuda.

The price of flour, for example, increased by 48 per cent in September due to rising wheat prices on the international market.

Sharp increases

This has resulted in a sharp increase in the prices on basic food items such as counter flour, bread and other baked products.

Petroleum products have seen an average increase of 2.0 per cent each week in the last three months, while that for chicken meat - the most popular source of protein for Jamaicans - also increased as the price of grains used in the manufacture of feeds continues to go up on the international market.

"What we can do is put in place measures that would bring some ease to the consuming public," said Samuda.

"In that regard, for instance, funds have been released for use in each constituency to assist those who are being battered by these high prices."

Cabinet has given approval for grants of $2 million to be disbursed to each of the 60 constituencies, for issue under social welfare and other programmes such as the Programme of Advancement Through Health and Education (PATH).

Samuda said he has also asked the Consumer Affairs Commission to carry out regular checks in the market to protect consumers against the possibility of hoarding.

john.myers@gleanerjm.com