Aiyaz subsidizes Waila City developers

It's always a pity that Aiyaz Sayed Khaiyum's efforts are more disposed towards his style statement rather than what's supposed to be whirring between the ears.

Trying to laud a policy that controls the price of hardware for housing infrastructure, when inflation has just been hiked by revised projections in the central bank, and the economy is stagnant, this too-good-to-be-true directive is indeed just that.

Because if someone is going to be laughing all the way to the bank with 35% reduction on hardware products, it will be his (and Bainimarama's) overnight BFF, Dr Sharifuddin Wahab, formerly of Naim Holdings Berhad, and more commonly known as the Waila City developer.

Hardware prices to boost housing infrastructure
Wednesday, March 09, 2011

The new prices of hardware items under price control comes into effect from the 19th of March will improve the housing infrastructure in Fiji.

Minister for Trade, Industry and Commerce, Aiyaz Sayed-Khaiyum says the average reduction of 35% in hardware products is significant and will have a huge effect on the housing and building industry in Fiji.

Sayed-Khaiyum says the reduction in Hardware prices will not only benefit consumers but hardware suppliers as well.

“We believe that hardware companies now should be more focused on volume based sales as opposed to having huge mark-ups – that’s why price control was brought up at the first place – if we have volume based focus business models that we allow more people to buy more at reasonable prices, it creates a robustness in the economy which is essential – when we have robustness in the economy more people are handling that same money all the time – it creates jobs, it creates sustainability as far as the construction industry is concerned and it benefits everybody including the hardware outlets”

Meanwhile, Commission chairman, Dr Mahendra Reddy says the items brought under price control will vary for different hardware companies.

“The price reduction in the hardware products ranges from zero to 2380% however on the average, the hardware prices will go down by 35% - we are looking at a range of hardware products – it ranges from 645 products per hardware outlet to 2220 products – so some hardware outlets will have only 645 products under price control while others may have 2200 products under control – this is because the number of different brands they carry”

Reddy says with the new pricing, consumers will be able to save as much as 25% of their initial costing’s when building a house or carrying out renovations in as far as hardware materials is concerned.

The category of products which are brought under price control are cladding and boarding, concrete blocks, electrical items, fasteners, louvers, paints, plumbing, plywood, tiles, tools, timber and roofing.

Report by: Dev Sachindra