The Government is changing course, in terms of how it approaches the development of special economic zones expected to fuel the growth of its logistics hubs initiative, because of its inability to meet the costs.

Minister of Transport, Works and Housing Dr Omar Davies indicated to the House of Representatives last Tuesday, that a statement will be made in Parliament on the issue after the 2014/15 session opens on Thursday.

However, some details of the position it has taken were given by Permanent Secretary in the Ministry of Industry, Investment and Commerce Vivian Brown, under questioning from the House’s Public Administration and Appropriations Committee, on Wednesday at Gordon House.

According to the permanent secretary, the funding for the special economic zones by the Government is not going to happen, because of the burden that it would place on the public purse.

“The type of funding to develop these facilities is very important, because if it is that the funding itself will place any liability or any burden on the public purse, it is not going to be in that way,” Brown told the committee, in response to questions from Government MP Jolyan Silvera (Western St Mary).

He said that after discussing the issue, the Cabinet instructed the ministry to appoint an enterprise team to address the complexities.

“So the zone will not be on the radar until sometime after that?” Opposition spokesman on finance and planning Audley Shaw asked.

“What I am seeing is that we’re chasing the tail. We are just running around in circles,” Silvera interjected.

“I would like to think that we are not chasing our tails… But there is a transition period,” Brown responded.

Brown explained that, in terms of the special economic zones, the first one should have been the Caymanas economic zone. He said that bids were sought, and some support came in. However, when the results were reviewed by the Cabinet, it was determined that because of the burden or liability that could be placed on the budget it would not be done that way.

Shaw insisted, however, that all the Caymans zone needed was the building and factory space, and Jamaican investors would be willing to expand within the facilities, and there was no need to await foreign investments.

“It can actually start with local people. So, is there any possibility that in the year of our Lord 2014, we will see the start of the commencement of the Caymanas economic zone?” Shaw asked.

“The answer is, yes,” Brown reacted. “The short answer as to whether we can see mortar in the ground this year for the Caymanas economic zone is yes.”

“The question is, when shall we expect it to start? Basically, I am saying, when it is determined by the work of the enterprise team, because my understanding is that the Cabinet did not want us to go along a path which did not sufficiently address some of the technical and complex issues which are involved. We have a proposal on the table, but it could not pass the acid test in terms of funding,” he explained.

Brown stated that free zones must be phased out by 2015, in keeping with a dictate from the World Trade Organisation (WTO). They are to be replaced with the 16 special economic zones, which have already been identified in Jamaica.

On Tuesday, Opposition spokesman on Industry, Investment and Commerce Karl Samuda raised questions in the House about the fate of the economic zones, and the delay in implementing the Caymanas economic zone, which was conceived and promulgated by him while in Government, 2007-2011.

However, Dr Davies informed the House that the new direction for the economic zones would be addressed by him and Minister of Industry, Investment and Commerce Anthony Hylton in the new session of Parliament.