By Leonardo Blair, Staff ReporterWITH EXPANSION taking place in the bauxite-alumina and tourism industries, a world-ranked business-friendly environment and plans to curb the national debt, Prime Minister P.J. Patterson is urging smaller tourism businesses to take advantage of investment opportunities.
In a televised address to the nation last night, he focused on the positive current economic indicators, plans by Alcoa to invest US$690 million in Jamaica, and a record-breaking US$1.34 billion in foreign exchange earnings from tourism last year.
"I want to emphasise yet again that we must not leave the Government alone to act on the opportunities which are now available in the sector," Mr. Patterson said. "Small and medium-size businesses must get in on the act now. I urge members of our communities with initiative and drive to take advantage of the real potential that exists for the development of attractions.
"If you have a plan, or even if you are just at the idea stage, come forward and discuss them with one of the many institutions that exist to encourage entrepreneurship.
"Talk with the Jamaica Business Development Centre, the Tourism Product Development Company, the Development Bank of Jamaica, a merchant bank or any commercial bank. Maybe even your credit union can assist you in translating your ideas into action."
TRANSFERRING CAPITAL
Mr. Patterson said that with interest rates coming down, "now is the time to move capital into productive investment projects to spur long-term growth and development. The Government has taken the initiative and I have instructed the Minister of Development to bring together a team of interested parties from the private sector to explore a range of feasible investment possibilities."
He said that the buoyancy in local production (of alumina) had coincided with a rebound in aluminium and alumina prices. This meant that gross foreign exchange earnings would continue to rise in 2004 after increasing by over 8.6 per cent in 2003, to reach US$773.5 million.
Despite media focus on the country's debt and its economic management, the Prime Minister said that practical and prudent steps were being taken to address the economic situation.
"One of the critical elements necessary to help control government expenditure was containing the growth of the public sector wage bill," he said. "We have made a very important step in this regard with the signing on February 16 of the historic Memorandum of Understanding between the Government and the trade unions."
ALTERNATIVE MONITORING
He pointed out that "favourable consideration" was now being given by the International Monetary Fund (IMF) for an alternate monitoring arrangement to replace the discontinued Staff Monitored Programme, under which officials of the Fund had previously monitored the economic targets set by the Government.
Under the new programme, "We will continue to set quarterly targets agreed with the IMF," Mr. Patterson said. "The proposal for the new arrangement is to have the Board of Directors of the Fund carry out the monitoring, thus giving it the IMF's endorsement."
If this consideration materialised, he said, Jamaica would enjoy an improved credit rating and should be able to attract more investors in the already investor-friendly environment.
He said that there had also been much improvement and growth taking place in tourism such as an increase in stop-over visitor arrivals and cruise passengers.
