Freeze on waivers

Government moves to reduce budget deficit

BY HG HELPS Editor-at-Large helpsh@jamaicaobserver.com

Tuesday, August 03, 2010

THE Government has suspended the issuing of waivers and incentives in a move Prime Minister Bruce Golding said was expected to boost the economy and go a far way in reducing the budget deficit.

Addressing the closing ceremony of the 58th annual Denbigh Agricultural and Industrial Show in Clarendon yesterday, Golding spoke passionately about the need for a full revival of agriculture, following a detailed tour of the more than 340 booths on display.

“Last Monday, Cabinet took a decision that as of August 1 there will be a freeze on all new waivers and incentives, pending the outcome of the study,” Golding said.

That study, according to the prime minister, has been commissioned already to determine which incentives will be retained and those which will not.

“It will tell us where to grant waivers and where not to grant waivers,” Golding said, adding that the study should be completed by year-end.

“The review of all waivers and incentives will be conducted right through the economy. We have some people enjoying incentives from Bob Lightbourne times,” Golding said, referring to the former Jamaica Labour Party minister of trade and industry of the 1960s.

“If the issuing of waivers is not achieving the desired effects, then it is time to revisit it. The country is wrestling with a fiscal deficit of seven to eight per cent of GDP (Gross Domestic Product) for this year. It will take us four years to get it down to zero.

“The waivers and incentives that we are granting amount to 14 per cent of GDP. That cannot continue. That 14 per cent of GDP must come down. We cannot continue to give away waivers and incentives, when we want to fix farm roads. Whatever waivers and incentives that have already been approved will continue.

“Distributors and others are constantly seeking waivers. We are under pressure to grant licences to import products on the one hand, because some business people will say to you, we can’t get enough tomatoes for example. The JAS, on the other hand, will say to you, don’t ‘leggo’ no licences or waivers, and (agriculture) Minister Chris Tufton has not been unwilling to say to some of the most powerful, no, you not getting any waiver,” Golding said.

The prime minister, who was accompanied by younger daughter Ann-Merita through his five-hour stay at the venue, also implored the private sector to invest more in agriculture, which he described as one of the sectors that will save Jamaica.

“Agriculture is the new frontier. We want the private sector to look at investing more in agriculture, while looking at agriculture in a broad framework. Interest rates have been coming down from 18 per cent and are now at 8.7 per cent and we not finished yet. If you think big, we can make agriculture grow and if agriculture grows, Jamaica grows as well,” Golding said.

Golding hailed farmers and show organisers, the Jamaica Agricultural Society, for making the event “one of the best Denbigh shows that I have been to”, emphasising satisfaction and surprise at times with the quality of the displays.

“I am thrilled and excited that notwithstanding the battering from the drought, farmers have shown tremendous resilience,” the prime minister said.

Golding expressed pleasant surprise at the range of products on display and seemed particularly fascinated by the Ministry of Agriculture and Fisheries’ apiary culture unit booth marshalled by Reginald Peddie and Kwesi Palmer.

Sampling a local honeybased drink, Golding took one sip, then another, followed by a third, at which point he told his aides: “you better tek this before a get drunk,” before handing the remaining contents to those at his side.

St Elizabeth emerged the top parish in the overall pavilion display and copped the Percival Broderick trophy, Manchester emerged top in pavilion layout and won the Rudolph Burke trophy, while Jamaica Broilers Group won the best exhibitor display for the Norman Grant trophy.

St Mary Farm Queen Olivia Derrett, a 19-year-old immediate past student of St Mary High School in the parish, was adjudged farm queen for 2010. The Jeffrey Town, Western St Mary native beat Samantha Stewart of Clarendon into second, and Jodi Miller of Portland, who placed third.

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COMMENTS (8)

Thomas Brown
8/3/2010

I wish as a people we would stop praising announcements. This means that no NEW waivers on farming vehicles or equipment will be granted. No waivers or relief on seeds etc. Since there is no stipulated timeline for the study it means that established & usually larger businesses will have a significant competitive advantage over newer entrants for an indeterminate period of time. This will likely lead to higher prices etc. Similarly for Manufacturing. Also why grant new Tourism waivers last week?

ONeil Hibbert
8/3/2010

If we stop importation the farmers are going to sky rocket their prices.Remember higglers in arcade you had to pay astronomical pricw for one pants,when the chinese came in the price went right down.Importation needs to be managed not stopped.

ernie beswick
8/3/2010

It is good to see my parish , St Bess doing so well again keep it up, after so much food was last during the last hurricane.It is good to see Golding acting in the farmers interest.Jamaica have been importing far too much and this have added more to our balance of payment. Local supermarkets have got to help small farmers too i was shocked to see kiwi fruit from across the world.what about our local fruits? which is one the best in world.Farming is our back bone more than ever now.

george watson
8/3/2010

If only we stopped sometimes to think before we put our foot in? Does M.View have any idea what the cost of these things would be if importation on them were stopped, especialy since we can't seem to control praedial larceny?.
I have mango and pear trees in my front yard but never seem to get more than a dozen of each, but when I call the police they say there are only two of them at the station or they don't have any vehicles.
I have had to give up the vegetable garden in the back yard.

Jay Brown
8/3/2010

Its about time, we lose far more than we gain from these waivers

M. View
8/3/2010

This is somehing I have been calling for, stop all importation of products that can be had or produced in the country. Be a Patriot and support your local producers which is supporting local workers.

Nicolas Henry
8/3/2010

Please Mr PM, don't allow the people doing the studies to manipulate the results to benefit themselves, and their friends businesses. For too long only certain folks benefit from the good that JA got to offer. Educate the small farmers, they do work hard, but they're products aren't up to presentable standards at times. They also all plant the same things at once and glut the market, then they cry foul when they get stuck with their produce.

george watson
8/3/2010

Why didn't the writer tell us of the size of the crowd which bothered to stop by to listen to the prme minister's address?
He didn't have a captive audience this time, and it is a good thing that his speech was reported since many of us wouldn't have known what he said.
Next to the exhibits I certainly enjoyed the beers in the bar under the big tree. They were certainly cold and refreshing.

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