Robinson urges Gov’t not to divest its 20% stake in JPS
KINGSTON, Jamaica – Opposition Spokesman on Finance, Julian Robinson, is urging the Government not to divest its 20 per cent stake in the Jamaica Public Service Company (JPS).
“We [the Opposition] are opposed to this proposal. We believe that JPS is a critical infrastructure and a strategic asset for the country which is essential for the proper functioning of our society and our economy,” Robinson said Thursday.
He was making his contribution to the 2022/23 Budget Debate in the House of Representatives. He said the government should retain its stake in the light and power company so that it can have a voice at the table.
Robinson stressed that the Opposition was not against general divestment of government assets.
“That’s not the issue here and the government has proposed other assets for divestment [and] we don’t take any issue with that. But we believe JPS is different, it is strategic, and given the impact of energy costs on business competitiveness, and the cost of living for Jamaica, we believe it is imperative that the government has a seat at the table and has a voice,” Robinson declared.
“We also believe, that at this particular point in time, with oil prices at US$120 per barrel, that we are facing an energy crisis and it requires the active involvement of the government as a shareholder in a strategic and critical asset such as the JPS,” the Opposition spokesman added.
He gave other reasons for opposing the divestment, including: The divestment seems to be motivated simply by a desire to raise revenues to meet some general budgetary activities; There is no strategic intent in the divestment; and concerns about how a fully-privatised entity would handle the issue of electricity theft which accounts for about 20 per cent of JPS losses and for which paying customers pay for those losses.
Robinson told the House that JPS will not be able to resolve the issue of electricity theft on its own and therefore requires the active involvement of the government to facilitate consumers of electricity to become customers of the JPS by making it easier and more affordable to connect legally to the grid.
