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Observer Reporter  
March 22, 2006

Horne accuses gov’t of protecting Carib Cement Company

MANDEVILLE, Manchester – A leading player in the construction industry has accused the government of continuing to “protect” cement manufacturers Carib Cement Company, even after recently reducing the duty on imported cement from 41 per cent to 15 per cent until August because of chronic shortages.

Norman Horne, head of ARC Systems, one of the leading manufacturers and importers of building material and accessories, told Mandeville Rotarians at a luncheon meeting Tuesday that his company was yet to receive a waiver it applied for more than a week ago to begin importation of cement at reduced duties. This, he said, was despite a promise from government that such waivers would be provided within 48 hours.

“We have applied for a waiver since Monday of last week and in the government’s pronouncement, they made it very clear that waivers would have been granted within 48 hours. It’s now one week and we are yet to receive the waiver to commence importation of cement. We feel that this position is only for the benefit of Caribbean Cement Company which now has cement on the high seas.,” said Horne.

The government’s move to reduce the duty on imported cement earlier this month followed shortages in recent months which have been worsened by a manufacturing crisis at Carib Cement. The crisis has led to large quantities of the product being recalled because of sub-standard quality.

Carib Cement, a subsidiary of the Trinidad and Tobago company, TCL, was given a virtual monopoly on cement for the Jamaican market when the import duty was increased to 41 per cent two years ago, making importation by competitors uneconomical.

Horne, an independent senator, was also critical of the “time line” for the reduction in duty, saying the August deadline was “ridiculous” when the costs to importers and the bureaucratic red tape were taken into consideration.

Arguing that the cement shortage was endangering construction – one of the more prosperous and fast-growing sectors of the economy – Horne said the government should immediately “restore market conditions and allow competition in the cement market to resume without the confines of time lines” and other restrictions.

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