Private sector leaders broadly support JLP manifesto, but need more details

Published in the Jamaica Gleaner: Friday | August 10, 2007

Keith Collister and Sabrina Gordon, Business Writers

The Private Sector Organisation of Jamaica (PSOJ), while broadly endorsing the plans put forward by the Jamaica Labour Party in their manifesto, nevertheless wants a more detailed plan of action.

"The PSOJ generally shares the broad principles outlined in the JLP manifesto - but what is typically lacking in any manifesto is the details", said Richard Chen, chairman of the Private Sector Organisation Economic Committee.

"It is in the details where initiatives tend to succeed or fail" he added. He argued the JLP manifesto has not provided enough details for the PSOJ to support specific JLP plans such as the creation of a mega-agency to stimulate the local investment and attract foreign investments, the expansion of venture capital, business process outsourcing expansion and the establishment of Kingston as an offshore financial center.

However, the PSOJ believes that the manifesto correctly emphasises critical areas to the business community including a stable macro-economic policy framework, a simple tax system, and a modern labour market.

"The language and structure suggests a willingness to work along with the business sector to achieve the levels of economic growth that we at the PSOJ believe are necessary to support any meaningful social development", said Chen.

Of particular interest to the PSOJ are the JLP's plans to reduce Jamaica's massive, expensive debt - the driving force behind Jamaica's high interest rates.

The PSOJ also believes the JLP appears committed to creating a business-friendly bureaucracy they need more details of these plans to determine if they will succeed.

President of the Jamaica Manu-facturers' Association (JMA) Omar Azan also required more details of the JLP's plans, advising the Financial Gleaner: "I am planning to have a one-to-one with the respective persons to get a more detailed explanation of the plans for the manufacturing sector."

However, he welcomed the JLP's ideas for an industrial plant modernisation fund and the provision of factory space. "A comprehensive plan with the provision of incentives for the sector is needed to move the sector forward and the JMA is willing to work with whichever party forms the government to do this," said Azan.

The Jamaica Exporters' Association's (JEA) President Marjorie Kennedy also broadly endorsed the JLP's manifesto, saying, "The plans highlighted in the manifesto of the Jamaica Labour Party seem to be in favour of the business community."

However, she was distressed by the fact that business operations are being disturbed by the ongoing activities involved in the preparation leading up to the general election. The issue of security was also a major concern to Mrs. Kennedy, particularly because of its impact on the export community. "An exporter has to pay tremendous amount of money in the area of security, and this has impacted the viability of exporters as they are incurring expense that other exporters in other countries do not," said Kennedy.

The Jamaica Employers' Federation (JEF) declined to say whether they were in favour of the plans as outlined in the JLP manifesto they offered general encouragement for clear legislative policies directed to the sustainability, growth and development of businesses in Jamaica.

"Government policies must be developed for the assistance and encouragement of the establishment and growth of small businesses," said newly elected president Edward Chin-Mook of the Small Business Association.

While not speaking directly to the JLP's plans, he said policy issues of interest to the SBAJ include taxation, "A tax rate which is regarded as reasonable coupled with harsh sanctions for non-compliance is the most effective way to guarantee revenue for the government while at the same time not stifling business activities."

The cost and availability of capital and the establishment of a small business procurement policy are two other main areas of interest for the association.

Jamaica Chamber of Commerce (JCC) President Mark Myers says that the JCC will judge both the JLP and PNP manifestoes against the eight principles outlined in their board statement of July 17, 2007. In summary, these principles are: improving trust through a social partnership, declaring war on crime, restoring family life and values, commitment to improving management and accountability of public resources, commitment to a dramatic reduction in red tape and bureaucracy, measures to address unemployment, investment in infrastructure and inner city redevelopment, and the need to reform the tax system.

While he notes that the JLP manifesto appears strong on the issue of improving the business environment, e.g. cutting red tape and bureaucracy and reforming taxation, improving education (required to prepare Jamaicans to be global citizens) and commits itself to a social partnership, Mr. Myers stressed that Jamaica's overiding need was for "Implementation, implementation, implementation". Similar to the position in the JLP manifesto, Mr. Myers noted the JCC has also been advocating the creation of an international financial centre in Kingston since 2003 as part of its strong call (since 2002) for the redevelopment of the downtown of Jamaica's capital city .