THE new tax on raw materials at the ports is putting manufacturers at a great disadvantage and destroying the industry, says Gary ‘Butch’ Hendrickson.

Speaking at the Jamaica Manufacturers’ Association (JMA) Breakfast Forum last week, the chairman and CEO of Continental Baking Company questioned why the sector was subject to so much upfront taxation.

“We cannot be the laughing stock of the Caribbean. People wonder if we are for real,” said Hendrickson.

“They tax me because they can’t collect from anybody else. We will never be able to compete when our Government continues to target us as a source of additional revenue every time they have a fiscal shortfall,” he said.

Hendrickson suggested that it was more sensible for a manufacturer to become an importer, saying “financially it makes sense, not socially,” as it will not help on the road to nation-building.

On the matter of energy, Hendrickson stated that a decision on energy must be made now, questioning why a matter which is so important was taking so long to deal with. He said, “It should have been done yesterday, it should have been done three administrations ago. What is the real intent?”

Brian Pengelley, president of the JMA, echoed similar sentiments in his remarks. He said, “Let me remind (Energy) Minister Phillip Paulwell that we are expecting to hear his decision as promised before month-end on who will be building the 360 megawatt power generating plant.”

Paulwell on Wednesday, during his contribution to the 2013/14 Budget Debate at Gordon House in Kingston, announced that the Office of Utilities Regulations is to partner with the National Contracts Commission to negotiate actively with four interested bidders for the building of a new power plant and present a recommendation to the Government in 30 days.

Hendrickson queried how Jamaica would power a logistics hub, with its current energy-generating capacity. He stated that power had to be reliable and spoke to issues of refrigeration. He affirmed that potential investors would ask these questions and maintained that “watts equal development”.

Hendrickson also spoke to the importance of linkages and partnerships.

Pengelley stated that, with Jamaica looking to secure an IMF deal by month-end, there needs to be a plan that will result in long-term growth for the country. He noted that manufacturing contributes over eight per cent to GDP, employs over 74,000 workers, furnishes government coffers with $30 billion in taxes annually and generates over US$700 million in export earnings. The aim, he said, pointing to huge investments made recently by manufacturers, including AMG Packaging, is for the sector to increase GDP contribution to 12 per cent and to create 30,000 additional jobs by 2015.

“With the sliding dollar and inflation, the cost of goods and services is going up; unemployment is over 13 per cent; the poor are getting poorer and some of us have lost faith in Jamaica making a turnaround. But I am here to tell you that we remain committed to investing in this nation,” said Pengelley.

The JMA Breakfast Forum was held under the theme for Manufacturers’ Month: “Believe in the Power of Manufacturing.”

Hendrickson indicated that he believed in the power of manufacturing because he has seen what manufacturing has done for the growth of countries such as Japan, and how his own company has been able to transform and improve the lives of his staff.