By Marjorie A. Stair, Bureau chief
Bananas and other agricultural products for domestic consumption are critically needed as raw material for the processing industry. - File
"GOVERNMENT HAS earmarked some $300 million this year for various initiatives to facilitate the expansion in the agricultural sector, including the refund of up to 30 per cent of the investment cost of farmers, who meet production targets under a set of agreed criteria". [Excerpt from the News section of the Jamaica Information Service website.]
We are further told that the main objective of the rebate scheme is to quickly resuscitate output from cocoa, ginger, tree crops, as well as livestock for which there were ready markets. The news release states further that the government had closely examined those areas where the resources, which were available, could have maximum impact in terms of output, employment and reduction in cost of living.
I am trying my best, having gone through the estimates of expenditure tabled, as well as the releases and the speech of the Minister of Finance, to find some new direction. A direction that will foster economic growth and the revitalisation of the productive sector but it has been difficult going for me. Nothing has changed.
FRUSTRATIONS
One of the frustrations of living in Jamaica today is the sameness of our daily lives. You turn on the television or the radio, or open your newspaper and you know the headline news will be about some killing somewhere in Kingston, a major drug bust, people demonstrating for some thing or another, or some politician announcing one thing or another or making a speech some place. Slight variations every now again but not much unless there is some major international event such as the Iraq war.
There is a public outcry on something, the Prime Minister appoints some committee of well-known private sector leaders. While they are meeting there is some other issue, some other public outcry, some other committee and the cycle continues. The report comes out; it is not released to the public. Most of us forget, if we ever cared anyway and we move on to the next issue. Same old voices on the talk shows, talking about the same old things and we go on and on as we become more and more trapped in poverty, crippled by debt and one wonders when we will see some change.
Now if someone had woke me up in the middle of the night to ask me what agricultural enterprises I would choose to refund investment costs, I would not have chosen any of the above because the markets are relatively small and the impact on the economy will be relatively small. Instead, I would have picked sugar cane, coffee, yams, goat production, bananas for domestic consumption and selected vegetables and condiments and/or crops critically needed as raw material for the processing industry.
PRODUCTION LEVELS
I am trying to find something positive, however, so here is what I am going to do. I am going to wait to see what the various initiatives are, what the production targets for each crop are, what are the set/agreed criteria and what is the information on not only available markets, but on current production and productivity levels and the state of the production before I comment one way or another.
I assume that the policy strategy behind some of the new tax measures is aimed at reducing consumption of imported goods, and of some items considered to be luxury items, with the hope that this will stimulate domestic production. The problem, however, is that our domestic production is heavily dependent on imported inputs and raw materials.
The four per cent cess on all imports, except for goods imported by government, diplomats and international organisations, will push up cost of living considerably because we are highly dependent on imported food to feed
our nation and imported inputs for our productive sector. The four per cent will be compounded by the time it gets to the average consumer and the quality of life of law abiding citizens will further deteriorate, whilst the informal sector will continue to grow and expand as the smugglers find new and better ways to beat the system.
This cess will certainly push up the already high cost of agricultural production and, although a $300 million investment fund sounds like a lot of money, it is not if we are to look at the level of investment needed to revitalise the sector, if it is possible to overcome the challenges the sector faces. Our food security situation will become even more precarious because it will also push up the cost of food.
CUTTING GOVERNMENT
I probably missed it, but nothing has been said about reducing the size of the Government. Since I returned to Jamaica in 2001, I have noticed that the Government departments that I have had to deal with such as the Accountant-General's Department, and the Revenue Office have become more efficient and more customer friendly than they were before. This is good but sometime, somewhere, somewhen, someone will have to take a decision to cut the size of government central government and all of the statutory bodies/quasi government organisations and create a much leaner public service.
Will the new GCT rate on telephone calls affect our Internet service rates as well? In the increased taxation on telephone use and on alcoholic beverages (did the Minister miss the smokers this time around) the Government is assuming that we will not be able to control our propensity to chat and that 'rummers will not decrease their alcohol consumption. The informal economy must be licking their chops. Where are the new measures to address smuggling, not of illegal narcotic drugs but of legal goods? Or will the same old, same old, apply.
Some years ago I noticed a distinct shift in many of our town markets to an increase in the trading of dry goods as compared to agricultural produce. The same is happening to our agricultural shows. Dry goods sales and displays. Little agricultural produce. My understanding is that this year's Trelawny Yam festival, for example, was remarkable for the absence of yam.
We keep trying to address the symptoms instead of the root causes. Same old medicine, same old pain, same old result. O, for a fresh new day, a new direction when we will finally get to the roots of our problem and address them in a systematic and sustained way.
