Wage increases not enough
Holness points to productivity as more viable solution to nation’s economic woes
Published:Thursday | April 24, 2025 | 12:06 AMOlivia Brown/Gleaner Writer
Prime Minister Dr Andrew Holness has issued a warning that a singular focus on increasing wages as a solution for the nation’s broader economic challenges would be doomed to failure, as the country must also take aim at the fundamental issue of low productivity.
According to Holness, increasing national output – particularly in agriculture – is key to sustainably managing inflation.
The prime minister, who was speaking yesterday during the official launch of the Parnassus Agro Park in southern Clarendon, labelled the recurring cycle of wage adjustments without structural reform, a superficial fix. Instead, he pointed to enhanced agricultural productivity as a genuine and lasting solution to Jamaica’s economic concerns.
The launch ceremony also included the commissioning of the Parnassus irrigation system.
The facility, from which more than 60 farmers have been approved to operate, forms part of the larger Southern Plains Agricultural Development Project, which is being funded through a grant from the United Kingdom Caribbean Infrastructure Fund, with additional support from the Government of Jamaica. Administered by the Caribbean Development Bank, the project aims to improve irrigation, drainage, flood control, farm roads, and marketing systems across some 795 hectares of arable land – boosting agricultural resilience and output in the region.
During his contribution to the Budget Debate in March, Holness said the Southern Plains Agricultural Development Project has benefited more than 800 farms.
“Having a strong agricultural sector is a buffer to inflation. A strong agricultural sector ensures people have access to affordable [and] nutritious food, even in times of crisis. It reduces our dependence on imports, shields us from external shocks, and creates the conditions for real independence – economical and social,” said Holness.
The prime minister emphasised that special priority would be given to women, youth, and farmers with disabilities, ensuring that the benefits of the project are inclusive and far-reaching.
PROFOUND TRANSFORMATION
Highlighting that only some 15 per cent of Jamaica’s arable land was currently irrigated, the prime minister said the Parnassus and Essex Valley irrigation projects would push that number to 20 per cent, which he described as a profound transformation for the sector.
“[Former Prime Minister] Michael Manley had posited the idea of harnessing water from the Black River to irrigate the Pedro Plains, and that was 50-odd years ago, and I’m pleased to say, we are well on our way to doing it,” said Holness, to rounds of applause.
In March, Holness noted that the civil engineering works for the $30-billion Pedro Plains Irrigation Scheme, which is set to benefit more than 5,000 farmers, would begin this financial year.
Yesterday he continued: “And when we do Pedro Plains, we will move our irrigated lands to about 50 per cent. Can you imagine the fundamental shift in our agricultural productivity?”
Emphasising the significance of the project, the prime minister highlighted the impact of inflationary pressures, including weather-related crop failures.
He outlined how strategic infrastructure investments – such as the construction of reservoirs, installation of pumps, road development, and land preparation –would assist in mitigating such challenges.
These initiatives, he noted, are vital to ensuring stable agricultural output and prices, ultimately making a lasting contribution to reducing the cost of living and strengthening economic resilience.
Leases were handed out to some farmers at the event on Wednesday.