Finance Minister Dr. Omar Davies examines one of the publications of the Planning Institute of Jamaica (PIOJ) in this October 2006 file photo. With him are Minister of Education and Youth, Maxine Henry-Wilson, and PIOJ director general, Dr. Wesley Hughes. - File

From $11 million in 2004, the Planning Institute of Jamaica's (PIOJ) fixed assets have climbed to $258.7 million, reflecting its $253 million acquisition of new office space on Oxford Road in New Kingston.

The result is a significantly more healthy balance sheet position of $335 million for the agency in 2005 (2004: $84.3 million), inclusive of boosted capital reserves of $268.9 million, up from $17 million the year prior.

But the PIOJ is yet to move into its new 55,000 square foot Oxford Manor home, purchased more than a year ago with "grant funds from a special project", according to the agency's 2005 annual report tabled in Parliament this week.

On Thursday, director of corporate services, Kirk Phillips, told the Financial Gleaner that the PIOJ was still doing the office designs and would tender the project in the new year.

The cost of outfitting the building is to be signed off on by the PIOJ board, which is chaired by the agency's director general Dr Wesley Hughes most likely it meets next on December 15.

"We're still getting our bills of quantities together," said Phillips. "By early next year, we're going to tender. Phillips, however, declined to say when the move might occur, only that it would be in 2007, noting that he had already miscalculated on an August 2006 deadline.

The property continues to be carried at the purchase price on the agency's balance sheet, incurring no depreciation charges in the financial year under review because "it has not been put into use," said the notes to the accounts.

The Oxford Manor building remains the home of the United States consular operations, and other operations.

The property is on a complex operated under strata, the planning agency said.

In the meantime, PIOJ, which oversees some $93.9 billion (US$1.5 billion) of externally-funded public projects, continues to pay rental of $20.7 million for the space it occupies on the RKA building on Grenada Way, New Kingston.

For the agency's financial year to December 31, 2005, it turned a profit of $3.33 million off $232.7 million of income, significantly bettering the $16,000 surplus it recorded in 2004.

Finance minister Dr. Omar Davies described the agency's performance as 'commendable'.

"The introduction of consulting services within the PIOJ will capitalise on the institute's expertise in key areas and provide additional funding for its operations," said Davies in his report to Parliament.

Headed by director general Dr. Wesley Hughes, the 50-year-old Planning Institute tracks social and economic trends, publishes data on the economy, overseas loan and grant funds that flow into Jamaica and the projects they finance, advises government on policy, and now contracts its expertise for cash.

The PIOJ Consultancy Services managed by Michael Ramsey, began operating in March 2005 as a unit of the Director General's office, offering advice on foresighting and forecasting models, evaluation of projects, macro and socio-economic research, surveys and workshops.

In 2005, the government financed PIOJ made $6.8 million from its own operations (2004: $956,000), net of a $904 million loss on its publications, which include the Quarterly Economic Report, the annual Economic and Social Survey Jamaica and Jamaica Survey of Living Conditions. In 2004, it lost $1.17 million off its publications.

The agency's 2005 subvention from government was $226 million - 2.5 per cent less than the previous year's allocation - $150.7 million of which was paid out in staff costs.

Those staff costs, however, represented a $24 million saving on 2004 salary expenses.

Despite the cut in government subvention, PIOJ's boosted operational income and a $4.4 million cut in expenditure for the review year resulted in operational profit of $1.03 million, compared to a loss of $3.4 million in 2004.

lavern.clarke@gleanerjm.com