THE JAMAICA Manufacturers' Association is to build a partnership with government to boost manufacturing, says Doreen Frankson, its president.
Ms. Frankson said she had already won an agreement from Dr. Omar Davies, the Minister of Finance and Planning, to assess the controversial 2 per cent customs user fee by March next year. She was speaking at a monthly JMA board meeting at its downtown Kingston office, yesterday.
"Preliminary information from you indicates we need to collaborate more closely with various government departments," Ms. Frankson said. "We have started this process."
Some JMA members met last week with Tax Audit and Administration Department (TAAD), she said. Concerns were raised about the operation of the deferral of General Consumption Tax on packaging materials and several issues resolved.
"We will be formalising our relations with the TAAD and discussions will continue on a possible MOU (memorandum of understanding)," she said. "Other areas of collaboration will be developed with other departments, private sector bodies and trade unions."
Ms. Frankson was appointed interim president of the JMA in May, after Clarence Clarke resigned in the face of criticisms over the private sector's acceptance of Government's 2 per cent customs user fee. Various private sector groupings had agreed on this replacement for a four per cent cess on imports laid down during the Government's annual budget exercise at the start of the fiscal year in April.
Ms. Frankson was subsequently elected JMA president during the annual general meeting of the manufacturers' lobby group on June 25.
CUSTOMS USER FEE
Discussing the agreement with Dr. Davies to assess the customs user fee, she said, "We intend to contribute to that assessment by presenting well-researched submissions from our membership. Our focus is to ensure that the tax net is broadened and that law abiding and compliant manufacturers are not saddled with additional tax burden."
A lesson learnt from the budget experience was that, "we must negotiate from an informed position," she said. In many cases, public policy relating to the manufacturing sector has not been supported by proper analysis and the properly researched proposals have often not been implemented.
A committee has been established to examine the impact of fiscal policy issues on manufacturers, she said. Chaired by Chrisopher Bicknell, the committee aims to have an impact on the budget process next year to lobby for policies that benefit manufacturers.
Additionally, the JMA will be "forging closer relations with the Customs Department and also the Shipping Association of Jamaica," she said. "These synergies are crucial for our competitiveness."
New priorities will be set for the sector, and will be outlined in a strategic plan, she said. In the process, the JMA secretariat
will be restructured for greater efficiency.
