THERE seem to be so many letters published complaining about the expense of Cyprus, I feel bound to jump on the bandwagon with a few thoughts from a resident rather than a justifiably disgruntled tourist.
From time to time, I compare the cost of certain goods in a major supermarket here in Cyprus with a major chain in the UK. Now, this is a bit masochistic since food is not cheap in the UK. While the supermarket chain I research in the UK is one of the cheapest there, it last year notched up a profit of £1.4 billion sterling (CYP 1.24 billion), which does not, to me, translate into cheap food for the masses (and what costs a pound in the UK will probably cost a dollar in the US), but at least gives me a feel as to where my money is going and as to whether or not I can feel good about life in Cyprus amongst my new fellow EU brethren.
Unfortunately, compared to the UK, we in Cyprus pay a great deal more here for many, many goods. In February 2002, the price of 227 grams of Kerrigold butter cost 48 cents in Cyprus, rising to 64 cents in January 2004 (it costs 63 Cyprus cents in the UK, but for a pack of 250 grams.). Now that Cyprus is in the EU the present price has risen to 93 cents for 227 grams, an increase of 45 pet cent. Why, now that Cyprus has joined the glorious EU am I having to pay 78 per cent more for my English mustard, 125 per cent more for a digestive biscuit, over 100 per cent more for my favourite ketchup and 80 per cent more for a tea bag to wash it all down with?
One of the reasons advanced for higher prices in Cyprus is the cost of transport. I accept that, but only to a point. Another reason, which I also accept to a degree, is the far greater volume of goods sold in the UK compared to little Cyprus. Lastly, between January and August this year, sterling has gained 4 per cent on the Cyprus pound, which makes UK prices that much ‘cheaper’ when converted into Cyprus pounds. However, the differential in most cases is greater than the ‘volume’ and ‘transport’ gearing and exchange rate. It is, in my opinion, the difference between good profit and wilful exploitation.
In May, I spent about five days on the tiny Greek island of Symi (north west of Rhodes) onto which almost everything is shipped (including fresh water) and many items will have gone via, say, mainland Greece and then Rhodes, thus adding to the transport costs. Translating the Euro prices at 1.732 to one Cyprus pound, how is it that mineral water on Symi is around 2 cents cheaper than in Cyprus, Heinz baked beans are 66 Cyprus cents compared to 87 cents here and a litre of Kean orange juice (“imported from the island of Cyprus” according to the packaging) was retailing for 64 Cyprus cents on Symi compared to 89 cents here in Cyprus? (There were of course many higher prices on Symi compared to Cyprus. For example, a packet of Bassets liquorice allsorts is CY£1.18 compared to CY£1.16, a bar of Dove soap is 58 cents compared to 54 cents here and a litre of fresh milk was 87 cents instead of 55 cents.)
The prices for spirits here in Cyprus, notably Scotch whisky and imported gin, are very intriguing. Prior to May 1, the prices for both products were astronomical (over £20 a litre) even compared to the UK where prices are laughable anyway due to the massive excise duty levied (£7.83 sterling per litre, or CY£6.94). Post May 1, the prices in Cyprus have dropped significantly and both are now a spot cheaper here than in the UK. However, the “profit margin” is still massive. In May, a litre bottle of Scotch was retailing in Greece at the equivalent of CY£7.71 (compared to CY£12.86 in Cyprus) and a litre bottle of Gordon’s gin was £6.21 compared to £12.36 here. As Cypriot gin costs £4.11 a litre, the difference cannot be due to the government’s excise charges on alcohol or the local product would cost a lot more. The Cypriot government is no longer allowed to apply two rules since EU accession. So, the price difference must be down to the importers and/or the retailers. If so, I suggest that their profit margins may be a touch too high.
Of course, it ain’t all doom and gloom. Many fruit and vegetables are cheaper here, as are eggs, and on reflection we could become teetotal vegetarians, but somehow life would not be the same.
So, where does a humble EU citizen go on this little island to have matters looked at to ensure the consumer is getting a fair deal? Would someone kindly correct my deductions or point me in the right direction to find the complaints department? I would be most grateful.
I must emphasise that I have no wish to cause trouble. It’s just that, in quaint old-fashioned English, I do not like being screwed out of my money.
P.S. I already thought of writing to the President, but I don’t want to disturb his efforts on drafting the definitive peace deal to unite the island. Heaven forbid that I should slow the march of progress!
