EDITORIAL - No transparency on energy

In yesterday's Gleaner, Mr Damian Obiglio, the CEO of the Jamaica Public Service Company (JPS), the light and power company, was quoted as making the point that had the decision been his, coal would long have been the country's fuel of choice to fire its power plants to generate energy.

Last week, Mr Christopher Levy, the CEO of Jamaica Broilers, a major agro-processor and one of the island's biggest businesses, was reported as making much the same point, although he would have liquefied natural gas (LNG) as part of the energy mix. "LNG out of Trinidad is an advantage," Mr Levy said. "Coal is an advantage. Use those."

Indeed, both men spoke at the same forum organised by this newspaper to address Jamaica's energy issues, including the potential of competitively priced energy to transform the island's economy, on which there was consensus. However, among the other issues on which there was also agreement was that Jamaican governments have dithered on the issue of energy, as well as the lack of transparency with which the Golding administration is now proceeding with a conversion project based on LNG.

Jamaica, more than 90 per cent dependent on oil for its energy needs, produces electricity at around US$0.30 per kWh, among the highest in the region and, according to Mr Levy, a major challenge facing the country. "This country faces no bigger problem," he said.

There is consensus that coal would be the cheapest source of fuel, although natural gas is cleaner. Coal proponents say it gets a bad rap on emissions, arguing modern technology had dealt with much of the problem.

Hide and seek

But here is the rub with regard to Jamaica and the Government's decision to go with LNG, for which it has invited bids for 480 megawatts of power. The public is being kept in the dark about the technical basis - economic and scientific - on which the administration made the decision.

Even though Prime Minister Bruce Golding took the implementation of the project from his energy minister, Mr James Robertson, and handed it to a task force led by his adviser, Mr Christopher Zacca, the situation remains as murky as during Mr Robertson's stewardship.

This approach can't be the best way for the administration to build trust in its policy and the confidence of those who invest in the economy. The administration, in particular the Zacca task force, could begin to build trust and confidence in the process by releasing the study that reviewed the LNG project and made recommendations for its overhaul.

• Government holding on to people's money

With greater clarity than the old Chapter Three of the Jamaican Constitution, the new Charter of Rights prohibits the compulsory acquisition of a person's property without appropriate compensation, determined according to clearly prescribed principles.

Expropriation of people's property, we insist, is precisely what the Jamaican Government does when it delays, by months and years, the reimbursement of the withholding tax on profit.

Pension funds and persons of retirement age, who are exempt from the tax, as well as firms whose tax liabilities may be set off against the withheld payments, are owed billions of dollars by the Treasury.

The Government says little about when and how it will pay. And when, and if, it pays, it offers no interest - and opportunity cost to those who are owed the debt.

Yet, when the Government is owed taxes, it charges interest and penalty interest on the outstanding amount until the debt is settled.

Does Mr Audley Shaw, the finance minister, presume that that represents natural justice?