Patterson PRIME MINISTER P.J. Patterson has sought to quash suggestions that a recent hike in petroleum costs is the result of a plot to reap more taxes for the Government's coffers.
Hosting yesterday's post-Cabinet press briefing, the Prime Minister told journalists that he was aware of the hints being made "on the talk shows and in the general political rumour mill" that "the Government is responsible for an increase in the price of gasoline over the last couple of weeks."
"Let me remind you that the price of gasoline is linked to the U.S. Gulf Reference Price which is a pricing benchmark that is transparent," he said.
He further noted that the increases which have been observed almost weekly since last Christmas, are a result of four factors.
According to the Prime Minister, among those factors are "the harsh winter that is being experienced in the U.S. and elsewhere which has increased the demand for fuel in these countries" as well as "the perception on the world market that there is a shortage of petroleum products."
Mr. Patterson also cited the continuing terrorist threat across the world, noting that "everytime there is a bombing in the Middle East there is a reaction on the market that drives up the cost of fuel."
In addition, the Organisation of Petroleum Exporting Countries (OPEC)'s recently announced cutbacks in crude oil production.
"The latest being in November of last year and there is expectation of further cuts in February when they meet," the PM said.
Mr. Patterson, before addressing the country's economic
crisis, also sought to dispel
suggestions that the recently passed legislation allowing the Government to more tightly monitor money transfer entities was either a precursor to his administration backtracking on the policy of liberalisation, or an attempt to tax remittances from overseas.
The legislation, in the form of an amendment to the Bank of Jamaica Act, was passed in Parliament last Tuesday, and piloted by Minister of Finance and Planning Dr. Omar Davies.
OPPOSITION CRITICISM
Questioned on Opposition criticism of the adequacy of the heavily-touted prospect of trimming the public sector wage bill, Mr. Patterson said: "I find it very difficult to respond to the Opposition when it does not yet know precisely what will be the outcome of the discussion taking place between the trade unions and the Government of Jamaica."
He added: "I would invite the Opposition and the press to wait on the consummation of those negotiations which I do not anticipate to be far away and which will be concluded before the budget is presented. In all good time everything will be made clear."
