TEXTBOOK PRICE INCREASES NOT BASED SOLELY ON CURRENCY DEPRECIATION

The Consumer Affairs Commission’s (CAC’s) 2003 Textbook Survey confirms that once again some parents and caregivers, particularly those purchasing secondary level books could find themselves paying out a large portion of their earnings on schoolbooks. Some consumers can expect to find increases of 70% and more for secondary textbooks.

Checks by the CAC have revealed that in most cases price increases far exceed the amounts expected as a result of the depreciation of the Jamaican dollar. An earlier announcement that GCT would be applied to textbooks was subsequently withdrawn and is therefore not expected to affect textbooks. Notwithstanding, it appears that most outlets have marked up their prices substantially.

Examples of textbooks with substantial increases are: (1) the history text – “A Post Emancipation History of the West Indies,” which was sold in 2002 for approximately $487 but is now being sold for $977 in some stores, an increase of over 100%. (2) The Spanish text – “Viva Practice Bk 2” increased by 84.1% from about $239 in 2002 to $440 in 2003. (3) English Literature - “Old Story Time” has moved by 89% from approximately $553 to $1045. (4) And “The Young Warriors” by 96.6% from $414.50 to $815. In each example, the prices quoted for 2002 and 2003 apply to the same store.

When contacted by the CAC, the Book Industry Association informed the Agency that some 80% of the textbooks are imported from the United Kingdom, and that the movement in the Jamaican exchange rate against the pound sterling should account for the additional increases. The Consumer Affairs Commission notes however that the Jamaican dollar depreciated some 34.4% against the pound sterling between May and July 2003 with an average exchange rate of $97.11. This does not explain the extent of price increases observed on the market. The Commission notes further that even with adjustments of between 5% & 10% for transportation and other operational costs, distributors and merchants would have still had to add a significant markup to bring prices to the levels observed during its August 5 to 11 textbook surveys. In light of all this, consumers are encouraged to seriously consider borrowing, renting or purchasing second hand books as viable options.

As part of its effort to obtain full and accurate information, the Commission made contact with and obtained the support of the following Ministries & Agencies: the Ministry of education Youth & Culture, Ministry of Finance, Ministry of Information, Bank of Jamaica, Tax Payer Audit & Assessment department, Fair Trading Commission, Book Industry Association of Jamaica and bookstores and schools across the island.

Consumers may access price information from the CAC’s Textbook Survey 2003, conducted in sixty-two (62) stores in twelve parishes, by calling the CAC’s offices Toll free at 1888-991-4470 in Kingston or 1-888-991-9529 in Montego Bay or by visiting the Agency’s website.

The survey covered ninety-five (95) textbooks, sixty-eight (68) of which were at the secondary level and twenty-seven (27) at the primary level.