Government to assist manufacturers retool
Published:Monday | July 23, 2012 | 12:00 AM
Finance and Planning Minister Dr. Peter Phillips said the Government intends to make provision for Jamaicas manufacturing sector to access new technology to retool and modernise their facilities to remain competitive.
"We believe that there is a firm place for the manufacturing sector, not just as a source for jobs but income earning for the country and I give my assurance that we will set up a system which will change the landscape where the sector is concerned," he said.
Dr. Phillips did not elaborate on the programme of assistance as he spoke at an American Chamber of Commerce economic breakfast forum entitled The way forward at the Knutsford Court Hotel, New Kingston on Thursday.
However, he said that "going forward we intend to make provision for the sector to access new technology to retool and modernise their facilities so as to remain competitive."
Dr. Phillips used the occasion to appeal to stakeholders in all sectors of the economy to combine their energies in creating a new economic order that can foster growth and development.
"A difficult area of the new dispensation, but most necessary, is to focus on is how to achieve a new productive environment, see how we can combine our energies together rather than complain about what each element of society is not doing, because the kind of challenge we require now, more than ever before, is a unified national effort to chart the new future and I am confident that we can do it," he said.
"Just as we can demonstrate that we can produce the fastest runners, produce the best food and products, that we have people with the capacity to produce the best music, we can achieve the same level of excellence in organising our economy and prosperity. We just need to get it done," he said.
An essential part of the way forward to which he referred was the signing of an agreement with the International Monetary Fund, one which he says is required to access much needed funds from the international capital market and multilateral institutions.
"Essential to going forward is to have an agreement with the International Monetary Fund, not because we cannot manage our affairs such that we can bring about value, but quite frankly, because the international community, that is, the capital market and the multilateral institutions want an assurance ... that the programme is credible," said Dr. Phillips.
The Minister said there will be areas of disagreements between ourselves and the Fund, but there are significant reserves currently within the multilateral institutions such as the IDB (Inter-American Development Bank) and the European Union which will not be available until there is an agreement with the IMF," he added.
Important also in paving the way forward, Phillips said, is to stimulate the economy not just through expenditure, but to recognise the various impediments to growth and remove them.
"We must all recognise that the cost of energy represents a major impediment and we are determined to reduce it, said the Finance Minister.
Part of our stimulus effort has to do with getting major projects on the way such as the north-south highway link, projects with respect to port expansion, construction of over 2,000 hotel rooms ... and of course facilitating major private sector investment and creating a more facilitating business environment," he said.
Andrew Pairman, chief executive officer of Anbell Group who was also spoke at the forum, concurred with the Minister, citing the high cost of doing business and the inability to cope with global competitiveness as major areas for improvement in getting the country on the path to growth.
"We must find new and creative ways to solve the crisis and there are many dimensions we can focus on with the prudent use of capital," said Pairman.
"It's time for a new order and it has to start from within," he said.