Election spending a boon for some businesses

With the general election reaching its climax on Wednesday, September 3, some businesses are counting windfall earnings from the provision of goods and services to boost both major political parties in their quest for victory at the polls.

From transportation to food and drink, advertising in traditional and social media, billboards, vehicle wraps, clothing and caps, event planning equipment and more, businesses large and small have cashed in on the months-long frenzy to achieve political power.

“A number of businesses of all sizes benefit tremendously from the election…people in transportation, restaurants, caterers, people in the printing business, making feather banners, banners, the list goes on,” President of the Small Business Association of Jamaica Garnett Reid told the Financial Gleaner.

Reid, a motor vehicle dealer, said he has personally benefited from the elections this time around, unlike on other occasions. A four-time candidate for the Jamaica Labour Party, Reid said he had to dig deep into his resources to fund his election campaigns in the past.

He lost three times to former Prime Minister Portia Simpson Miller in South St Andrew, and once to O.T. Williams in Western St Andrew.

“I myself make some money (this time). I am totally booked out of rental cars. Car dealers make money. People buy cars (during election campaigns),” he said.

A significant sum of money is spent on advertising. Radio, television and social media are flooded with ads and announcements from the two major parties, featuring catchy jingles on frequent rotation.

The hotels and short-term rental properties have also fared well because of the number of candidates staying overnight in different parts of the island, Reid said.

Of note is the number of motor vehicles that have been wrapped in vinyl film featuring party candidates, slogans and logos.

A representative for a printing company in western Jamaica disclosed that it costs $350,000 for a full wrap of a Toyota Noah minivan, while a partial wrap varies from $60,000 to $250,000. “A full wrap of a small car like a Nissan AD Wagon will run you about $290,000,” said the representative, who asked for her company not to be named.

“We actually had to turn down some of the election business, because we cannot put our year-to-year corporate clients at risk for a one-off situation,” she said.

Asked about the cost of a candidate’s election campaign, former Member of Parliament Andre Hylton said it can run to “$10 million or up to $100 million, depending on how much you can raise and how much you are willing to spend”.

Hylton said spending may start several months before an election is called, during which time a caretaker candidate may be called upon to assist with food, building material, and funeral or back-to-school expenses.

“You have to look at the campaign before the election is called versus during the election period. After the election is called, the law limits the amount you can spend, which I think is inadequate. However, before the election is called you have to get to know the people and build relationships, and then you realise there are so many genuine needs. And if you are a caretaker with a heart, you have to try and help. So you have to use your own money and beg friends and family to help you. It is quite difficult for candidates nowadays,” Hylton said.

Reid said most of the shirts and caps used on the campaign trail were made in China, something which he has concerns about.

“When I investigated, I was told some are done locally, but the companies here do not have the capacity to print the numbers required,” he said.

The former candidate said that in previous elections, he spent “about $3 million” of his own resources, with the rest coming from corporate donors and from the party itself”.

“If the party thinks your seat is not going to be successful, you’re not going to get the amount of money that other candidates would get,” Reid said. However, he said he received millions in donations from all the big companies that had operations in South West St Andrew.

Others benefiting from the campaign include the providers of services for campaign rallies, including stage facilities, lighting, audio equipment, furniture and security.

Hylton said monies spent on election campaigns have a ripple effect throughout the whole economy – including informal operators of cookshops, fruit vendors, rum bars and taxi drivers in every nook and cranny throughout the island.

“The good thing about it is that every constituency gets a little touch of the campaign fever,” he said.

However, the former MP feels that while money is influential, it is not the most important factor determining the election outcome.

“From 1944, the first time the average Jamaican had the right to vote, we have heard of stories of people wrapping up salt-fish and flour, inducing people to vote, especially in marginal seats … but there is a time when a particular group in this country – call them undecided or whatever you want – steps out on election day to vote,” he said.

luke.douglas@gleanerjm.com