BOOKS SOAR PRICES

PARENTS CAN expect to pay massive increases on schoolbooks as the cost of educational reading material skyrockets in the run–up to the new school year.

But, while the Consumer Affairs Commission (CAC) has knocked local book merchants for what it considers a significant rise in costs, the Book Industry Association of Jamaica (BIAJ) is suggesting that the Government run consumer lobby group’s conclusion are flawed.

According to the CAC, 2003 Textbook Survey, “some consumer can expect to find increases of 70 per cent and more on textbooks.”

The survey, which covered 95 textbooks, was conducted in 62 stores throughout 12 parishes.

The survey stated that one of the major price hikes is for the history text, A Post Emancipation History of the West Indies, which sold for about $487 in 2002 but now retails for a whopping $977 in some stores, an increase of over 100 per cent. Also the Spanish Text, Viva Practise Book2, increase from $239 in 2002 to $440 in 2003, while the popular English Literature text, Old Story Time, has been increased 89 per cent from about $553 to $1045.

The CAC stated on Monday that, on contacting the BIAJ, it was informed that 80 per cent of the textbooks are imported from the United Kingdom and the movement in the Jamaican exchange rate against the pound sterling should account for “the additional” increase.

EXTENT OF PRICE INCREASES
However, even with the 34 per cent depreciation of the Jamaican Dollar, between May & July of this year (and the resulting $97 value of the pound sterling), the CAC said, the movement in the exchange rate “does not explain the extent of price increases observed on the market.”

“In light of all this, consumers are encouraged to seriously consider borrowing, renting or purchasing second hand books as viable option,” the CAC added.
But disagreeing with the results of the CAC survey, Steadman Fuller, a director within the BIAJ, told The Gleaner yesterday that increase in prices should only be between 50 and 60 per cent.

“ I’d like to see the evidence,” he said of the consumer lobby group’s figures. Stated that he doubted the veracity of some of 2002 base price references made by the CAC, he added that he would suspect any book merchant found selling at more than a 60 per cent increase, of “ profiteering.

CAC Director Of Research, Raymond Pryce, speaking with The Gleaner yesterday said: “We stand resolute in our methodology.”

FACTORS
He explain that the factors taken into consideration in the determination of the increase are, the depreciation in the value of the Jamaican dollar, the addition of the General Consumption Tax on some books between the period May 1 and July 1 (during the short period in which the tax was implemented), the addition of a two per cent import cess, the merchants’ profit mark up and a five to ten per cent index adjustment for publishers’ increases.

As a result of its calculations the CAC arrived at two scenarios. Firstly, books imported in the May to June period would have seen the GCT assisting in pushing the price increase over last year to 50.55 percent plus “x” with “x” referring to the merchants’ mark-up.

Secondly, where no GCT was included after July 1, a minimum increase of 35.55 percent plus “x” was expected.