Enhance financing to BPO sector, says Tufton
THE Government is not taking the BPO/ICT sector seriously enough, according to former commerce minister, Christopher Tufton.
He reckons the industry could create 30,000 to 40,000 jobs over the next three to five years. This will “require approximately 500,000 to one million square feet of space or another US$150-US$200 million investment in space provision”.
The sector currently employs 14,000 persons.
But Government support for space build-out is limited to developers who can upfront close to a third of the cost of construction.
“The Ministry of Finance needs to look at the policies at the Development Bank of Jamaica (DBJ) with the intent of relaxing the minimum requirement for a developer who has an interest and a credible plan for developing BPO space,” said Tufton. “Currently its 30 per cent of the costs of the build-out. Given the costs involved and the potential for job creation, Government should consider reducing to 15-20 per cent.”
He figures that extending the moratorium on government loans to developers by a further six more months would also help encourage investment.
“Currently it’s up to 18 months, I think it should be increased to at least 24 months.”
“From a job creation standpoint, BPO/ICT is a no-brainer,” said Tufton, who was speaking at the joint Kiwanis Clubs of Montego Freeport and New Falmouth 2014 installation held at the Grandiosa Hotel in Montego Bay on Sunday.
“This is the type of economic activity government needs to enhance the prospects of the people. It should be seen as a key part of the growth strategy and not just by saying it but by doing what is necessary to make it work.”
