Ministry says no to duty waiver on ground provisions
AGRICULTURE Minister Christopher Tufton says there is no need to allow duty-free importation of ground provisions, despite claims by the Jamaica Hotel and Tourist Association (JHTA) that the shortage caused by Hurricane Dean is impacting negatively on the hotel industry.
Tufton told the Observer yesterday that he has been in touch with the ministry’s unit that monitors production levels and that the information forthcoming does not suggest the need to import or to allow duty allowance at this time.
“Until we are convinced that we are at an impossible situation we will continue to hold that position. Although we know the hurricane had some impact we have not gotten from our research that provisions are limited to the point where we need to allow for importation,” the minister said.
He said that while it was important to support the tourism industry this has to be balanced with the interest of the local farming community.
“We don’t want to create a situation where the local farmers are dislocated too badly,” he added.
However, JHTA president, Wayne Cummings, said there was definitely a scarcity of ground provisions which has pushed up prices as much as two to three times what they were before the hurricane.
“As long as there is a shortage in the field where the farmers are unable to produce then we need to have some kind of allowance for import,” Cummings told the Observer yesterday.
“Whatever it will take for prices to remain affordable need to be recalibrated and this does not mean a clear removal if that is not what is necessary, but something should be done,” Cummings said.
He said that since the passage of Hurricane Dean there has been a shortage of ground provisions, particularly in southern Jamaica, the hotels’ largest supplier and which suffered a major hit.
“.The farmers have even come out and admitted that it will take a few months for them to get back on their feet,” Cummings said, adding “we must give them every opportunity to do so”.
In the meantime, Jamaica Agricultural Society (JAS) president, Norman Grant, said while there was a scarcity of some ground provisions the society was not convinced that the duties on imported supplies should be waived.
Instead, he said the agriculture ministry should focus its attention on the recovery effort so that there can soon be an abundance of local agriculture produce.
“Unless an informed position is put forward as to why the duties should be waived we maintain these duties should remain in place,” Grant told the Observer.
This, he said, was critical as the duties imposed should also be used in aiding the recovery process.
He said, however, that the JAS was mindful of the JHTA plight and as such would be seeking dialogue with Cummings in the coming weeks.
“We would like to give ourselves another week to carry out an extensive survey and to have discussions with the tourism sector before I can definitively say to what extent the need arises,” Grant said.
In the meantime, Tufton said the JHTA has not had any direct communication with his ministry and as such he has to go by the work that is done in the ministry which tracks production levels throughout the country.
“What we are trying to do in the meantime, is to get our local farmers back up as quickly as possible,” he said.
Asked if he would grant duty allowance if and when the need arises for importation of ground provision to meet the market need, Tufton said: “When we reach that bridge we will cross it, we are not there yet and so I prefer not to speculate.”
However, Cummings said he had communicated with the minister on the shortages when they met recently at a function where he raised the issue.
“The minister does not need me to consult with him, he needs to do what he needs to do,” he said.
Cummings said smaller hoteliers were being impacted the most by the shortage, especially since they were already dealing with the issue of increased cost of oil, which will translate in increased cost of electricity.
“It is the same thing which will happen with food, which means the cost of producing your food for resale,” he said.