The Scope

No Room For Error Mr. Holness

2016-03-04T22:46:00.000-05:00

If that twenty three minute long inauguration address by the newly installed Prime Minister Andrew Holness is anything to go by, it would indicate that we will see a new way of governance.

The speech was a call to action, one that is telling us that there is no time for complacency but a time to get the work done. The word ‘partnership’ resonated throughout the entire presentation, partnership with the private sector, with the opposition and with the people of Jamaica, because only through effective partnerships will this government achieve its goal of prosperity. A section of the speech that also stood out for me was when he said ‘there is no majority for arrogance, there is no space for selfishness, there is no place for pettiness, there is no room for complacency and there is no margin for error. This has been an issue with successive governments; they get complacent and arrogant, thus, loses sight of the real reason why the people gave them the power to govern.

The Opposition

With our Westminster system of government the opposition tends to feel that their duty is to oppose, especially when they have strength in numbers. The truth is that sometimes you cannot place blame squarely at the feet of the opposition as no one enters the race to be in opposition but instead to form the government. I realize that Mr. Holness has extended the olive branch to Mrs. Simpson Miller the leader of the People’s National Party and who is set to be Leader of the Opposition. The challenge now is whether the opposition will answer the call to assist this new government in continuing the business of the country. The opposition will not sit idly by and not be the watch dog of the government. However what is important is that we have an opposition that will not oppose for opposing sake but one that will assist in the process of nation building. The people of Jamaica will be watching and will determine when the opposition is working in the interest of Jamaica and when they are just opposing for opposing sake. Let me also commend the People’s National Party for its stewardship of the country over the last 4 years, the handling of Jamaica’s International Monetary Fund deal was good and great strides were also made in the area of justice, education, transportation and technology. We also received favourable ratings from rating agencies the likes of Moody's and Standard and Poor's.

Andrew Holness

The Andrew Holness we see today is a different individual from the one we saw in 2011, looking back one can now say the leadership race has made him stronger. Mr. Holness faced serious blocks and had issues communicating with the people, his speeches were always too long and after the first ten minutes he loses his audience. What is evident now is that we have an Andrew Holness who listened, he listened to the criticism and went back to the drawing board and did his homework. What we have today is a leader who goes on a platform and easily communicates with the people, a leader who can speak for twenty three minutes and strike the right tone and the right cord.

The Real Work

The international market is accustomed to the People’s National Party not necessarily because they are better but because they have been in government much longer than the Jamaica Labour Party. Mr. Holness now has the task of moving briskly to show the IMF that his government will continue to be fiscally responsible. The region and by extension the world has Jamaica under high surveillance, the IMF currently have us as the poster child because of our skillful handling of the deal. The multilaterals must be our friend, the rating agencies will be inspecting, any error and the rating agencies may downgrade us and then investor confidence will fall. Our economy is too fragile for a downgrade or a dip in investor confidence. Mr. Holness must also continue with the Economic Partnership Oversight Committee, let Richard Byles continue to lead the charge; this will send a positive message to the market that the government is about continuity.

Leaders have a tendency to strike the right tone during inauguration address but fail to deliver; I go back to address of Bruce Golding in 2007 and Portia Simpson Miller in 2012. Both leaders gave excellent presentations but did not get the chance to follow through on the promises made albeit not totally their fault; sometimes due the volatility of Jamaican politics they lose track of the vision. Mr. Holness now has the unenviable task of fulfilling his promises; it is even harder for him considering his one seat majority in the Parliament. The real test for him is to get the promises done while managing his government and also dealing with a parliament where the line of division is so thin.

Why the JLP Won

2016-03-04T08:10:00.000-05:00

When the People’s National Party first hinted that the country could go to the polls in 2015, it was apparent to many that it would not be a difficult trek to Jamaica House.

The tide began to change when it was evident that there were serious internal issues with candidate selection, the false start with the calling of the election showed me that trouble was brewing. The Jamaica Labour Party who began to prepare themselves realized that they had little money. What was smart about the campaign is that they target the seats that they knew they could have won. They ran a clean, smart and effective campaign. They ensured that the face of the candidates in the seats that they wanted attention spoke at party mass rally and they were included in several ads. The ads were clean and very pointed; they pulled different aspects of their manifesto and put it on TV and Radio ads along with social media. The leader of the JLP was also very strategic; he stuck to the message, a message that resonated with the people. That broadcast to the nation was a master stroke; it gave the feeling and image that this is me, I am Andrew Holness and I want to be your next Prime Minister. The 10point plan reached the masses, it connected with the people and the JLP held on to the message, the message of prosperity. Andrew sealed his deal on Sunday in that speech at Half Way Tree. What we saw was an Andrew Holness who was connected with the people, he reached out to the ‘articulate minority’ and connected with them. When Andrew told us to do the Facebook post, tweet but also come out and register your vote, it showed that unlike Mr. Pickersgill there is a respect for us. The JLP’s social media campaign was also effective; they reached out to the youth vote.

But why did the People’s National Party lose the election? The PNP lost track, the party was too arrogant and way too confident of victory. The party did not pay attention to the articulate minority and by not debating many people were angry. Remember the statement by Robert Pickersgill… “No ordinary Jamaican not speaking about it…Twitter? Twitter is ordinary Jamaican? Ordinary Jamaicans know anything about Twitter?” Then he said Jamaicans on Twitter are an “articulate minority” Well Mr. Pickersgill we came out and we sent a strong message to you. Respect us, I guess you sir did not know we had a vote and that we can make our voices be heard. We sent a strong message to the PNP, from early many of us took to Facebook, Twitter, Instagram to show our inked finger, to show that we registered that vote. Additionally the handling of Andrew’s house was poor, many people were upset and this was a bad move for the PNP.

The PNP also did not show the Jamaican people a plan, yes their handling of the IMF deal was superb but what about the growth plan, the party took it for granted that they could campaign on their handling of the IMF deal. It was evident though that the PNP was in trouble when they had to spend so much time to campaign against the JLP’s tax plan, it was at that point the Labour Party started to direct the campaign and the wind started to blow towards the JLP. Another thing to note is that the comrades stayed home, this also sent a message that they are not pleased with the party and the campaign.

The Jamaica Labour Party must never take this mandate for granted; they must work hard, keep the promises made. Respect the people, keep the communication flow open, continue working in the constituencies rest assured that the People’ National Party will bounce back and they will come good. Gone are the days when any party think they have the right to lead this country for two or more terms, the people are serious.

Is the IMF a Bad Prescription for Jamaica?

2013-06-20T23:17:00.000-05:00

When the International Monetary Fund first started in December 1945 it was aimed at building a framework that would help countries to have a stable economy and correct macroeconomic imbalances so as to prevent a repeat of the great depression of the 1930s. The IMF lists as its core function to ‘ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to buy goods and services from each other. This is essential for sustainable economic growth, increasing living standards, and alleviating poverty.’ (IMF website, 2010) Eighty three years later one has to question if the Fund is serving its main purpose.

Minister of Finance and Planning, Dr. Peter Phillips (left)

Head of the International Monetary Fund (IMF) Mission to Jamaica, Jan Kees Martin (center)

Bank of Jamaica Governor, Brian Wynter

The Mexican crises in the early 90s along with the East Asian crisis in 1997 are two vivid examples of the IMF’s failure. The Mexican government had a lot of creditors and they had to pay back in full in a short time. The government was forced to spend all their reserves to honour its obligation. The IMF along with the US government created a plan to turn some of the short term debt into long term debt. As such the IMF and Mexico entered into a stand by arrangement which provided immediate and well needed cash. One of the conditions of the loan was for the government to have high interest rates. There was large interest payment along with cheap imports which forced a number of businesses to close. This caused a ripple effect on the country’s economy. The Asian crisis began in the mid-1997 and affected the market, stocks, and currencies on several Southeast Asian economies. It was mainly caused by the Mexican crisis which created a domino effect; investors lost confidence in securities in East Asia and began to pull their money. As the crisis deepened the IMF decided to lend assistance. The IMF offered a rescue package which like in the case of Jamaica would prevent a default. The support came with conditions which included the government cutting spending and raising interest rates.

The aim was to restore confidence and protect currency values. However, economists have argued that the opposite should have been done; interest rates should have been lowered and more opportunities available for businesses to grow and hence developing the productive sector. The IMF policies caused a reduction in the value of the currencies and stock market and people falling below the poverty line. Thailand, South Korea and Indonesia were the countries most affected by the crisis.

A Wall Street Journal article states that the IMF intervention has been roundly criticized as the role of the International Monetary Fund was so controversial during the crisis that many locals called the financial crisis the "IMF crisis".

The Fund in 2009, realizing the problems, stated that they overhauled the general lending framework to make it better suited to the country’s needs and streamlined conditions attached to loans.

The fund has been wrong so many times with its prescription for countries that it leaves us to wonder if its plans for Jamaica will be successful. Just recently the IMF admitted that their austerity measure for Greece was wrong. An excerpt from the report states:

Market confidence was not restored, the banking system lost 30 percent of its deposits, and the economy encountered a much deeper-than-expected recession with exceptionally high unemployment. Public debt remained too high and eventually had to be restructured, with collateral damage for bank balance sheets that were also weakened by the recession.

How does one know that the prescription given by the IMF to Jamaica is right? Based on my checks, Jamaica had a facility with approximately 11 times. Jamaica received its first draw down from the fund in 1979 under an Extended Fund Facility, a deal which ended shortly after it was signed. Since then we have had other arrangements and to date the only one that was successful was the Extended Fund Facility signed in 1992. The success would be short-lived because Jamaica shortly after ending that programme started to see negative growth. The IMF’s rationale is that they had instructed the country to stay on for an additional two years.

Based on this track record how do we know that the deal will be successful this time. Whose interest will the arrangements serve? Certainly the country must adjust its modus operandi in order to move forward on a solid economic path. Recently Jamaica’s Education Minister indicated that they cannot employ any more teachers. Some persons were shocked at his announcement but it is clearly outlined in the Letter of Intent to the fund. An excerpt from point twenty of the IMF country report states that

‘Together with a planned net hiring freeze and pension reform, this effort is critical for sustaining wage bill moderation, beyond the relief provided by the wage agreement. The authorities plan to improve the efficiency, quality, and cost effectiveness of the public sector and have adopted a timetable for finalizing the review of the Public Sector Master Rationalization Plan’.

The section of the report that is most interesting is the part that speaks to the exchange rate. It states that ‘The recent nominal exchange rate depreciation has been useful, by reversing part of the overvaluation of the real exchange rate that has emerged in recent years, thus supporting price competitiveness’ Let us face the facts, when the dollar depreciates it will likely to cause inflation. Imports become more expensive and as such our oil bill will increase. The off spins of an oil increase is very wide, the purchasing power of the people reduces. However, exports will be cheaper but this serves to benefit the person buying the exports and not those who are selling. But what is the alternative to this problem? Do we get the dollar at its true value and create an environment that is friendly to investment? Who determines the true value of the dollar? One thing that must agree to is that it is impossible for the government to enter the market to constantly defend the dollar. What we need is a boost in the productivity sector which will increase exports. The government must also create avenues that will assist our dependency on oil and force us as a people to utilize another source of energy.

At the end of the day countries must play their role in ensuring that they have successes on the economic front. This iron fist approach adopted by the Fund will not serve the interest of the countries. The principles surrounding the formation of the IMF are sound but the action of its operatives is left wanting. It is full time they clean shop, re-brand and as Jamaicans would say ‘wheel and come back again’. Like many of the other deals brokered with the IMF it places very little emphasis on developing the local productive sector. What is important is that the IMF must give countries the flexibility to invest in the development of local productive sector. Majority of polices crafted are focused at reducing government spending, increase taxation while creating a free market. While this will benefit a country in the short term, over time the country will not build its independence. One thing for sure is that this current IMF deal even if we pass every target will not serve the interest of the people in Jamaica and may have adverse effect on generation to come.

Time To Change Our Political System

2013-02-16T18:11:00.002-05:00

Leading up to the 2011 General Election in Jamaica the National Democratic Movement had an advertisement which spoke to kakistocracy. When I first heard the advertisement I thought it was funny, I even thought it was a waste of airtime. However, I was reading an article recently and the word came to mind. kakistocracy simple put is government being controlled by unqualified individuals, and after watching the modus operandi of successive administration I think it is safe to say that we have a number of kakistocrats running this country.

New Tax Package

Recently Finance Minister Dr. Peter Phillips unleashed a surprise tax package on the people of Jamaica. Now while one cannot speak for the entire Jamaica, this 15.9billion tax package certainly caught a few of us by surprise. This is even more surprising because a day before the Prime Minister and Finance Minister did a broadcast to the nation; at no point in that broadcast an indication was given that a tax package would be unveiled in parliament. The seemly bully mentality of the government is even more evident when they refused to suspend the passage of the bill to allow the opposition to review the contents. Included in the tax package is a decision to hike employers’ portion of education tax by 0.5 percent and employees by 0.25percent. Now to many it may seem minuscule but the government proposes to use the money to fund the Students Loan Bureau (SLB). The Bureau on numerous occasions approached the government for funding and instead of fixing the root cause of the problem the government instead taxed the people of the country to fund the SLB. Now another measure to plug the hole in the budget is to take 11billion per year for the next four years from the National Housing Trust. Many young professionals find it difficult to purchase a house and instead of creating more opportunities the government is planning to raid the NHT. Every time we have a tax package successive governments promise that the new measure will plug the hole in the budget and bring us to sustainability. Clearly the measures are not working and the government refuses to attack the root cause of the problem. We must cut the public sector wage bill, we must produce and we must lower the import bill. One cannot tax its way out of debt, the more tax impose the more people will try and evade, it will happen as night turns into day.

The Way Forward

Now after reviewing the way successive administrations govern it is safe to say that we have several unqualified persons leading this country. It is time we review our political system, we need to establish qualifications for the role of cabinet ministers. Since cabinet ministers are largely selected from the lower house it would simply mean that there would be a qualification requirement for Members of Parliament. The law should also be amended to give the Prime Minister the option to select more people from the senate to become ministers. Moreover ministers should be individuals who are qualified in the field they are placed to serve. The candidates selected by the Prime Minister should also face a joint select committee for ratification. The selection committee should comprise seven individuals, three selected by the Prime Minister, three by the Opposition Leader and one by the Governor General. Cabinet ministers must have a track record in the field that they are chosen to serve and must meet a certain standard. If a prospective candidate is not approved by the selection committee then he/she cannot become a minister of government and the Prime Minister would have to field another candidate. It is time we raise the bar and have more qualified people sitting in the House of Representatives and by extension the cabinet of Jamaica.

A Failing Grade for the PNP

2013-01-05T20:12:00.000-05:00

Prime Minister Portia Simpson-Miller

The fact that the People’s National Party was given a "bucket to carry water" (when on the 28th of December 2011, they swept to victory at the polls) wasn't much of a secret. The truth is, there was never any real doubt in our minds, that amidst all the prophecies that a vote for Mamma would guarantee ox tail instead of chicken back for Sunday dinner, as one die-hard Comrade convincingly declared in a television interview; those of us who had one ear to the ground and one eye on the facts very much knew that we were indeed gearing up for challenging times.

Whether in the sweet jubilation of victory or the bitter sorrow of defeat, depending on if orange or green blood runs through his veins; John Public more than likely missed when the incoming Prime Minister herself admitted this by saying there was no honeymoon period ahead for her administration. Her poetic inaugural address littered with the usual signature Portia-style of twice as much fluff than substance went on to note that “In the Global Trade Winds of change, we are not always at liberty to direct these winds but we must set our sails to pilot the good ship Jamaica through these turbulent economic waters to safe harbour.”

A statement like that would give the most doubting of Thomas's the distinct impression that this new administration meant business and was ready, able and poised to take charge of the country's affairs. Albeit, no one genuinely believes all campaign promises, however, we do expect them to come with some amount of sincere possibility, for want of a better coined term. Country people would say “if it nuh guh suh it near guh suh”. In keeping with tradition, at the height of the campaign, Team PNP in true form made a host of promises to a host of people, and whiles one is quite aware that twelve months from five years is a merely the tip of the iceberg, it cannot be overlooked that there were many things that we were definitively told would be resolved before the dawning of 2013. Needless to say, none of these have been forthcoming.

The PNP in its 2011 manifesto entitled ‘Leading the Agenda for Progressive Change’ chastised the previous administration for not signing a deal with the International Monetary Fund. It was evident by October that the IMF deal would not be signed by year end even though Dr. Phillips insisted that it was possible. What is even more concerning is the seemingly lack of a plan post an IMF deal. The US $400million that we will receive cannot solve the problem. Our major challenge is our balance of payment which is our monetary transaction with the world. We are spending a lot more on imports than we spend on exports and this creates a huge trade deficit. We must solve our energy crisis and eat more of what we produce hence reducing our food cost.

The Jamaica Emergency Employment Programme (JEEP) was a major election promise and after much confusion it was finally launched. However, we are yet to see any results highlighting the major impact of this Emergency Employment Programme. We have however seen a dip in the unemployment rate from 14 per cent to 12.8 per cent. This credit can arguably be given to JEEP, however there is no sustainability as JEEP does not provide permanent employment. This reduction in unemployment can easily halt if there is no plan to keep the people employed. The government must get serious about job creation; we need jobs that will woo our graduates and reduce the number who leave and reduce the number who leave the country each year.

The administration also promised the Jamaican people to remove GCT from electricity but instead the threshold was raised to 300kWh of electricity consumed, up from 200kWh. Customers are now charged GCT on any consumption over 300 KWH. The tax moved from 10 to 16.5 per cent.

The Net International Reserve (NIR) is currently below the international bench mark. In January 2011 the NIR was at US$1.961 billion and in December it stood at $1.078billion. If we should have a crisis we have little money to buy

supplies. The international standard stipulates that we should have enough money to buy 12 weeks of imports. Just before Christmas we were at a value equivalent to 11.5weeks of imports. The dollar also lost 7.4 percent of its value moving from $86 in January to $93.1 in December.

Cabinet of Jamaica

Many of the ministers who are a part of the Simpson-Miller 20 member cabinet have been dismal while a few seems like they are trying. Minister of Technology Phillip Paulwell hit the ground running; we got some encouraging signs when the Telecommunications (Amendment) Act 2012 was passed. We have already seen some positive spin offs with LIME reducing its rates and forcing Digicel to follow suit. However, there are concerns that the minister has been too quiet for the last quarter of the calendar year. He promised to implement the number portability policy of which the country should get an update on this issue. Much was expected from Robert Pickersgill Minister of Water, Land, Environment & Climate Change however very little was seen coming from that ministry. Derrick Kellier who was Minister of Labour under the last PNP government was once again given the portfolio and his performance remains unsatisfactory. It is time we have a strong labour minister who will fix some fundamental issues especially as it relates to the treatment of employees by their employers. Peter Bunting the security minister has a seemly laid back approach however based on my political history almost every security minister from as far back as KD Knight have received a failing grade. It therefore shows that the problem is beyond the minister and it will take collective support to lower crime. The Minister however must be commended for significant gains made with the lottery scam.

Using the words of Prime Minister Portia Simpson Miller I think it is safe to say ‘time come’ for a cabinet reshuffle. It is time for the government to get a jump start; we need to hear more from the Prime Minister. This will give the Jamaican people the idea that she is in charge of the government and playing an active role. To whom much is given much is expected and the People’s National Party must make some changes as they enter the second year as government. The country is at a cross roads and we need strong leadership to steer this ship call Jamaica through the rough seas.

Michael Manley's policies were ruinous

2012-08-25T11:45:00.000-05:00

Friday, August 24, 2012

Dear Editor,

I find that too many Michael Manley loyalists struggle to articulate a convincing argument that - as Miss Tone Middleton said in her letter to the editor laced with invective - is the "most transformational and visionary leader Jamaica and the Caribbean have produced" and that "every major achievement by Jamaica since the 1970s can be directly or indirectly traced back to him."

How much more empty and pathetic can the rhetoric get? Michael Manley no doubt had a remarkable public personality, strong oratory skills and led a number of effective social reforms while raising consciousness, yet there is nothing else of substance worth mentioning. Former prime minister of Singapore, Lee Kuan Yew, a world-renowned example of a truly transformational and visionary leader, in his seminal book From Third World to First, in recalling a personal experience at a 1975 Commonwealth Summit in Kingston, stated, "(Michael Manley) presided with panache and spoke with great eloquence. But (I) found his views quixotic (impractical) ...; the policies of (his) government were ruinous." Now that's a quote for the ages.

Miss Middleton went on to state that I trotted out a "pile of meaningless statistics". Meaningless, Miss Middleton? Under Michael Manley's leadership between 1972 and 1980, the economy lost 17.5 per cent of its GDP; the national debt increased tenfold from $300 million to $3,000 million; inflation ballooned by 250 per cent; revenues remained constant while expenditure galloped by 66 per cent; the budget deficit sprinted from 3.9 per cent to 17.5 per cent of GDP, probably the highest for any country not at war; investment buckled by 40 per cent of GDP; foreign exchange reserves were eviscerated, collapsing from US$239 million to negative US$549 million; and unemployment increased by more than 43 per cent, moving from 182,000 to 271,000! The then World Bank president pointed out that Jamaica was the second worst economy in the world.

The fact is, Mr Manley oversaw the most comprehensive destruction of Jamaica's economy since Independence, damaging the future of my generation and the one before. Only PJ Patterson's economic management comes close.

Now, for Miss Middleton to credit the achievements of our sportsmen and sportswomen to Mr Manley is so silly, it deserves no further comment.

Former prime ministers, Bruce Golding, Edward Seaga, Hugh Shearer, Donald Sangster and Sir Alexander Bustamante deserve far more credit than the failed populist orator that Michael Manley was. Learn to argue with facts, Miss Middleton.

Delano Seiveright

delanoseiveright@yahoo.com

source: http://m.jamaicaobserver.com/mobile/letters/Michael-Manley-s-policies-were-ruinous_12335256

The PNP's Tax Package

2012-06-04T23:15:00.000-05:00

L-R- Peter Phillips & Portia Simpson- Miller

Who would have thought that a little girl from Woodhall in St. Catherine would become Prime Minister of Jamaica, a common phrase used by the Most Honourable Portia Simpson-Miller, Prime Minister of Jamaica. Mrs. Simpson Miller is known to speak for the poor and most vulnerable so it was a bit surprising that the first budget of her new administration would have hit the poor so hard. Back in 2010 when the then Finance Minister Audley Shaw did a similar tax package, the then Opposition leader Portia Simpson threatened to lead island wide protests, she said ‘ I am ruling out nothing, all cards on the table’. She called the package cruel, unjust and insensitive. Now isn’t it ironic that the very thing she chastised the then government about she is now doing? Andrew Holness leader of the opposition in his budget presentation said that ‘What has been presented is not stimulus but potential toxic shocks to remaining sectors of the economy that have been the lifeblood of our economic recovery, including tourism, telecommunications and business process outsourcing, agriculture and small businesses’ How can you bite the hands that feed you? It is evident that no thought process went behind this budget and the administration tried to tap into any area in order to get much needed funds not thinking about the ripple effect.

Civil Society/ Sugar Divestment

As a people there are certain principles that we must uphold regardless of who is in charge, however it seems like the goal post has shifted since the PNP took office. In 2007 to December 2011 we had such active civil society groups; everybody had a comment to make about everything that was done by the Jamaica Labour Party. It is interesting that we are not hearing from these people and that the general reaction to this budget is so different from that of 2010. I am also amazed that the very comrades who chastised the then administration are now finding excuses for this budget instituted by Dr. Phillips even though the PNP broke a solemn promise to the Jamaican people. It was Portia Simpson Miller while on the campaign trail in St. Thomas who said "My platform will promise nothing that we are not sure we can deliver" but it was her administration that did the direct opposite. The PNP promised to removed GCT on electricity which would give a break to the poor and the manufacturing sector instead they increased the GCT from 10 percent to 16.5 percent and the threshold to 300kw hours. Prior to the reading of the budget it was Phillip Paulwell who said “There is a commitment that was given to the people of Jamaica which we intend to fulfil,” When quizzed about the promise, Peter Phillips responded by saying "A commitment was given in relation to GCT and by raising the threshold, we have in fact relieved all except the highest consumers of electricity." This is such an insult to the intelligence of the Jamaican people and I am amazed that we sit and accept this explanation from the minister. We deserve to get an updates on the IMF deal; while in opposition the PNP, along with civil society would often ask the government to give updates to the people. The previous administration had covered much needed ground on the issue of tax reform but since the PNP took office we have not heard anything further on this much needed reform. Civil society should be the one to chastise the administration from breaking its promise and to question them on issues of national importance, but instead they have rolled over and played dead.

During the same week Agriculture Minister Roger Clarke during his sectoral presentation tried to create a smoke screen by disclosing the deal made between the JLP and the COMPLANT International Sugar Industry Company Limited. He told the house about the tax incentives received as part of an agreement to purchase government-owned sugar factories. This is a mechanism by the PNP to score cheap political points and to remove the attention from the tax package. It is the norm for government to broker deals with investors. The only other solution was to keep the sugar company on the budget and try to recover the money through taxation or to close the sugar factories and put thousands of people who are employed directly and indirectly out of a job. The toll road investors have been given 40 years to control the toll income, this was an agreement inked that the PNP. They also negotiated the present contract with the Jamaica Public Service Company. It is not unusual for successive administrations to broker certain deals which will encourage potential investors. It is commendable that the JLP could have gotten such a deal in the middle of a recession. It is time we stop playing politics and focus on investment which will help us as a people.

Solutions

My solutions to the gap in the budget are very simple; we need to cut the Jamaica Emergency Employment Programme (JEEP). It is costing tax payers too much for work that can be done by the National Solid Waste Management Authority and the National Works Agency. We need to focus on long term investment for our people, yes we all need jobs but at what cost? It is pointless to have a quick fix to our problems and then raise taxes as the solution.

It is also proposed that we revisit the issue of free healthcare. Those who can pay must pay and while it is a tough decision to make it must be done. We need to institute a health card system where the people of the country apply to the government. An agency of the government should assess each applicant and then issue a card that will give them free healthcare at all government operated institutions. Of course there will be challenges at the start, but overtime we can enhance this system and save the government well needed funds. The government must understand that taxation will not solve the problem, it will only force more people to find creative way to evade; investment will take us out of this crisis not taxation.

UWI: Institution of Higher Learning or an Intellectual Ghetto?

2012-05-01T00:55:00.000-05:00

UWI Students Protest- April 30th, 2012

It is said that a mere twenty percent (20%) of the population have the opportunity to acquire a tertiary education, while there may be some variation, this percentage is relatively low. It is for this reason why expectations are high and the level of decorum from these students should be commensurate with their level of education. I recently read about the actions of some of the students of the University of the West Indies, and after seeing them on television I hung my head in shame. These students disrupted an examination in progress, flung chairs to the ground and destroyed examination material all in an attempt for their voices to be heard. The actions of these students led by the Guild were selfish; absolutely no consideration was given to the students who were adequately prepared for their examinations and paid their tuition in full. They are now forced to have their exams rescheduled. It is time these students realize that the university must sustain itself. How can one expect to have good lecturers, air conditioner in classes, an efficient library among other things without paying their tuition? According to UWI’s registrar the fees owed are in excess of $233 million dollars; this is a significant sum especially in a time when the university subvention from the government has reduced drastically and considering the changes on the financial front in light of recent recession.

It is also interesting to point out that the public only hear from the university students when tuitions are not paid. Why should tax payers continue to fund the university when we get such unacceptable behaviour from our students who are supposedly the men and women that will lead our country forward? The students who disrupted the exams should be arrested and face the courts. Why can’t I hear more about social programmes that these students participate in throughout the year, how are they through the university impacting the country positively?

Let me make it clear that students should pay their tuition in full before they are allowed to sit any exam; the university has implemented several mechanisms for students to create a payment plan. We have to be forward thinkers and one cannot enter an institution of higher learning without any plans of how their tuition will be covered. Every year, the university encourages students to pay fees; periodic reminders are issued and despite certain facilities established to help students many do not make use of this facility. It must be made clear that I do not agree with the University to assign a failing grade for students who have not paid; instead an appropriate notification should be made to show that the student did not sit the exam.

UWI Students and Members of the Guild

It is time the university students elevate their thinking and I urge the members of the guild to find more appropriate ways of getting their point across to the administration. For the coming semester they should start a public education campaign to urge students to set up a payment plan for payment of tuition. It is full time the guild begin to change its modus operandi. Demonstration of this nature only serves to disrupt progress. Our future leaders must display a higher level of thinking and stop allowing people to call UWI an intellectual ghetto.

Monarchy to Republic: The Saga Continues

2012-02-16T21:28:00.000-05:00

As Queen Elizabeth II prepares to celebrate her Diamond Jubilee relevance of the monarchy to Britain's former colonies is being questioned. The most recent indication came from Prime Minister Portia Simpson-Miller who in her inaugural speech gave the clearest signal of the PNP lead administration’s plan is to move away from the monarchy.

Most Hon. Portia Simpson- Miller, Prime Minister of Jamaica

She reiterated that as Jamaica celebrates its achievements as an independent nation we need to complete the circle of independence. "In this regard we will initiate the process of our detachment from the monarchy, to become a republic with our own indigenous president as head of state” said Mrs. Simpson-Miller.

Jamaica will not be the first to sever its links with the British monarchy to become a republic within the Commonwealth. In fact, Trinidad & Tobago who gained independence in 1962 severed ties with the British monarchy in 1976. Guyana which gained independence in 1966 became a republic in February of 1970. The decision if taken, will effect changes to our legislative structure and I believe it should be done with the people in mind.

As head of State, Queen Elizabeth II is represented by a Governor General who is the vice regal. Since the 1950’s the title of Governor General has been given to all representatives of sovereign independent Commonwealth realms, whose purpose is mere ceremonial. He acts upon the advice of the Prime Minister and in accordance with constitutional conventions.

Queen Elizabeth 11

If Jamaica, like Trinidad and Tobago transfers the role of Governor General to that of a president then I am not in support of this action. What we would see is the office of president being mere ceremonial and in essence would perform the same functions that the Governor General is currently performing.

We cannot move from the monarchy to an equally expensive ceremonial president. I am advocating for a worthwhile change and not just a change from Monarchy to Republic to say we are indigenous, that is not independence. What we should demand from our leaders is a complete overhaul of our structure of governance which is far reaching. We cannot declare true independence if we do not have a system that is tailored for us, we must have a meaningful change.

Suggestions surrounding this move should be focused on having a President who is directly elected by the people and who will serve the role of head of state and head of government. The process of going republic is too complex for it to happen by year end; frankly the issue may even be shelved especially because members of the Royal Family will tour Commonwealth countries later this year and more specifically plans are already in full gear from Prince Harry visit to Jamaica.

A cabinet, breakfront or watnot? ... An analysis of the new cabinet

2012-01-07T01:26:00.000-05:00

Less than twenty-four hours after taking the oath of office as Prime Minister of Jamaica for the second time, Portia Lucretia Simpson-Miller and her team of forty-two incoming members of parliament once again gathered at King's House, albeit on the inside this time for the naming and swearing-in of Jamaica's next cabinet which she will lead.

Although in much smaller numbers than the over ten thousand strong that littered the state lawns on Thursday, there was more than a buzz of excitement as prominent citizens, members of civil society, high ranking party supporters, the media and general well-wishers streamed into the ballroom way in advance of the slated 11:00a.m. commencement. At a quarter to the hour, journalists were already reporting that the ballroom, built to accommodate two hundred guests was full and overflowing and several people could be seen standing against the walls and even more on the outside leading into the foyer and onto the portico.

Then came 11:00a.m...then came 11:30a.m...then came 12 noon! And even though by then, Simpson-Miller and all those expected to be sworn-in were in their respective places for the greater part of an hour - there was no sign of the Governor General or any public announcement or apology from the powers that be as reasons for to hold up. Needless to say, restless guests were now evidently impatient as this delay was bound to cut deeper into their lunchtime than had been predicted.

Apparently operating from a different time zone, His Excellency Sir Patrick accompanied by Lady Allen sauntered in at what would now be a whopping 80-plus minutes late. After a brief a capella rendition of the national anthem, pitched most unceremoniously by...you guessed it - the GG himself, the programme got under way. Clearly something was wrong in the state of Denmark. But of course, nothing would put a damper on the swearing-in of Sista P's cabinet and for the next hour we would labouriously watch twenty-seven people come and go repeating as though a nursery rhyme, the oath of office as ministers and state ministers; before crossing the floor one by one to receive their obligatory trademark hug and kiss from a glowing comrade leader.

And.......Yes! You heard me right - Simpson-Miller included, there are twenty ministers and seven state ministers in the new cabinet. Only the second largest in our nation's history since Michael Manley's twenty-three ministers in 1976. Then, as if to add insult to injury, having been put through the painful ordeal of hearing the two part oath a record twenty-six times in one day, the specific portfolio responsibilities were not disclosed then and there and we would have to wait another lifetime for an official announcement much later in the evening.

So as to not hold you any more in suspense, here are the portfolios:

• Prime Minister and Minister of Defence • Peter Phillips - Finance, Planning & the Public Service• AJ Nicholson - Foreign Affairs & Foreign Trade• Peter Bunting - National Security• Ronald Thwaites - Education• Lisa Hanna - Youth and Culture• Robert Pickersgill - Water, Land, Environment & Climate Change• Fenton Ferguson - Health• Anthony Hylton - Industry, Investment & Commerce• Mark Golding - Justice• Derrick Kellier - Labour and Social Security• Noel Arscott - Local Government & Community Development• Omar Davies - Transport, Works & Housing• Wykeham McNeil - Tourism & Entertainment• Phillip Paulwell - Mining, Energy & ICT• Roger Clarke - Agriculture & Fisheries Portia Simpson Miller,

Ministers Without Portfolio

• Morais Guy - Transport, Works & Housing (Housing)• Sandrea Falconer - Office of the Prime Minister (Information)• Horace Dalley - Finance, Planning & Public Service (Public Service)• Natalie Neita-Headley - Office of the Prime Minister (Sports)

Ministers of State
• Arnaldo Brown - Foreign Affairs & Foreign Trade• Sharon Ffolkes Abrahams - Industry, Investment & Commerce• Ian Hayles - Agriculture & Fisheries• Colin Fagan - Local Government & Community Development• Richard Azan - Transport, Works & Housing• Damion Crawford - Tourism & Entertainment• Julian Robinson - Mining, Energy & ICT• Luther Buchanan - Office of the Prime Minister

Now, let me be very clear, I do not have a problem with the size of the cabinet, but I do find it a bit ironic, amusing even, that this comes on the heels of the very same Simpson-Miller being highly critical of and almost scolding the former Bruce Golding led 18-member cabinet... Styling it in dramatic fashion as - "a watnot". Well, Knock Knock Mrs. Simpson-Miller, just in case you haven't realized...what you have here is a pretty large break front! To be fair, one must call a spade a spade; and this spade could easily be considered a shovel!

There has been extensive research and reports done on cabinet size worldwide and I agree firmly with the school of thought that there should be no fixed numbers to a cabinet and Prime Ministers should be free to adjust, add, minus, multiply and divide as he or she so sees fit in keeping with the needs, the projections, the expectations and the budget of the day. However, what I cannot ever agree with is tokenism, and this cabinet seems to be heavily ladened with quite a few rewards to old faithfuls and young cousins of the comrade leader.

A minister with responsibility for nothing but sports? Sports could have easily been placed with Tourism or with Youth & Culture, as it has been in the past.

Then there is the return of the old titans - AJ Nicholson and Roger Clarke. One cannot help but think that certainly these two appointments must be a regression of sorts, as these men have served in cabinets from as far back as the eighties.

Mark Golding, while being a trained attorney has made a sterling career for himself as an investment banker and business leader, would he not have been better utilized in Industry and Commerce or better yet, in Finance?

Since Nicholson had to be rewarded for staying the course, why not give him Justice? A portfolio with which he is all too familiar. Golding to Industry and Hylton, who has shadowed and acted as Foreign Affairs Minister for some time to that very ministry.

Youth, Sports and Culture was already a waste of public funds under the JLP administration, as Youth could have easily been paired with Education and Sports & Culture administered by Tourism. Now one must agree that Lisa Hanna is deserving of a ministry, but I cannot support the maintenance of this farce especially with the discipline of sports taken away.

Then, there are all of three ministers in Transport, Works and Housing - Dr. Omar Davies and Dr. Morais Guy as full ministers, the latter with specific responsibility for Housing and Richard Azan as state minister. By all indications, this is not a "super-ministry" in its true sense, so the question here is - couldn't a minister and a state minister alone have done the trick?

Finance, Planning and the Public Service whiles staffed with two fairly competent men - Dr. Peter Phillips (seen by many as the de facto Deputy Prime Minister) and former Health Minister Horace Dalley, seems to lack the real technical competence that would be needed at a crucial time in our nation like this. Maybe this is where an extra minister without portfolio should have been wasted.

Now to Simpson-Miller's Office...with just Sports under Natalie Neita Headley's belt and Information with Falconer, I am at a genuine loss as to why the Prime Minister's Office would have to be staffed with a state minister, in the person of Luther Buchanan.. Certainly, Neita-Headley will have so much time on her hands when Sports is "out-of-season", that whatever Buchanan is being brought there to do, she and Falconer could more than straddle between the two of them.

That aside, many of those expected to take particular portfolios were so appointed and there were not any major surprises with probably the exception of the total absence of former general secretary and Simpson-Miller loyalist - Collin Campbell.

While we may have our differences on this new cabinet it is important that these members perform and stand firm by the mandate they have been given. The needs of this country are great and the people have placed a significant amount of trust in this administration. While it is evident that some of the members of this cabinet were rewarded because of loyalty and long service we expect that they will prove the naysayers wrong. I can only hope that they will perform above expectation, because in the end...PNP and JLP aside, the country will be the ultimate victor.

Jamaica- not just the Government's Business...the People's Business

2012-01-04T23:59:00.000-05:00

It was the IMF head Christine Lagarde who said that "There is no economy in the world, whether low-income countries, emerging markets, middle-income countries or super-advanced economies that will be immune to the crisis that we see not only unfolding but escalating." It is against the background of such a frightening statement that the Portia Simpson-Miller led People’s National Party will take the rein of governance in Jamaica. The People’s National Party will face significant challenges with a debt running at approximately 130per cent of GDP and unemployment at 12per cent. Despite this phenomenon the people of this country are expecting opportunities. As such this government must be decisive; there will be no honeymoon period and the ministers must be skillful in managing their portfolio with little or no room for error. The electorates are expecting maximum performance and will vote against a government if they believe that they are not doing enough to serve the interest of the people. As such there are some key areas that this government must give serious attention.

Priority areas

Attention must be given to the increasing oil bill, the cost continues to escalate and the ripple effects are felt all over the country. This government must ensure that they find a cheaper alternative to oil whether it is Liquefied Natural Gas, coal or some other choice. This alternative source must help to reduce production cost and thereby reduce the cost for several items in the country. The PNP in its manifesto promises to re-engineer Petrojam through a joint venture partnership and they promise to re-formulate the Liquefied Natural Gas Project within the context of a competitive exercise where the market makes a determination as to the fuel sources. For too long this issue of alternative source of energy is on the table and the longer the government takes to deal with this issue is the longer the country suffers. It is imperative that this government seek comprehensive advice and make a decision (after consultation with industry players) in selecting an alternative source of energy. Leaving it to the market to decide will take years as people will always present pros and cons to any energy alternate that is placed on the table.

Attention must also be placed on job creation; many persons are desperate for employment opportunities to advance themselves. Jamaica Emergency Employment Program (JEEP), a major Job creation proposal of the PNP is not far reaching and the government must find innovative ways to get Jamaicans employed. JEEP may provide a temporary solution for the people within the inner city but there are a large number of graduates that leave university who are jobless and as such a widespread solution must be provided. Careful attention must be given to the micro and small business enterprise as they may be a key source in stimulating the economy. The Information and Communication Technology (ICT) is an area that this government plans to examine and it may reap some level of success. We have seen a steady increase of call centres and there is potential for an expansion.

The deal with the International Monetary Fund is also important and the PNP must close the deal in the shortest possible time. Renegotiation is not an option as clearly outlined by the Fund but what could be suggested is that we have an Extended Fund Facility which will give us enough breathing room to deal with the issues of tax reform, public sector rationalization and pension reform.

Good governance is one of the most important features of any governing body and the PNP cannot lose its connection with the people. Mrs. Simpson- Miller in her victory speech said, "We will tell you as it is, we will hide nothing from you, when it is tough and rough we will let you know, when it is easy we will let you know." The government must always respect the people but must ensure that they explain the realities to them. Honesty is always important and there is no room for corruption. Where there are incidences of corruption the leadership must ensure that they are decisive and just in its actions.

Areas of Interest in the PNP's Manifesto

The PNP promises constitutional reform and this is important, we have seen significant development in this area under the JLP government and it must be continued by the PNP. The transformation of the police force to a civilian law enforcement organization is also under the microscope. The government must position itself in such a way to change the way people view the police force and have the human rights as high priority.

The PNP also proposes to develop a special unit that will deal with extreme violence, this is a key factor in developing as a nation and being that the crime rate is on a low it should be the government’s intention to keep this inversely proportional to the level of production. There are plans to implement the Individual and Corporate Insolvency Act; this will replace the bankruptcy act and will give protection to businesses that have the potential to survive if given enough breathing room. I am particularly interested with the proposed idea to establish Local Public Accounts Committees within the parish councils. The government needs to ensure that its officials on all level are accountable to the people who elected them. The renegotiation of the Jamaica Public Service contract if successful will reap significant benefits to the country. This will create competition and give people the opportunity to make choices hence breaking the monopoly of the Jamaica Public Service.

The next three to five years will be challenging for both the government and the people who are about to encounter a different transition. The government must ensure that the ministers are effective and that the country is well aware of its every move. The opposition must ensure that they keep the government on its feet and the people of this country must be the ultimate watchman as the government moves forward on the mandate given to them by the people. The party leader needs to be assertive and responsive, cognizant of sensitive issues and she must also prove herself ready to lead a nation that is destined for greatness.

JLP and the way forward

2012-01-02T15:37:00.000-05:00

The 2011 General Election in Jamaica will be viewed as historic for a few reasons. It is the first that a government served one term in office; it is also the first in the history of politics that a woman is leading a party to victory and it is the first in our history that we are having an election after Christmas but before the New Year. Andrew’s defeat at the polls caused him to be one of the shortest serving Prime Ministers of Jamaica, (with the exception of Donald Sangster who died while in office) he served for 2 months and a week to be exact. Now that the dust has settled and the reality has hit it is now time for the party to examine what went wrong and begin to position themselves for the future.

What went wrong?

Generation 2000, the young professional arm of the Jamaica Labour Party launched a series of attacks. Firstly they began to attack the president of the People’s National Party, Mrs. Portia Simpson-Miller. One would have thought that after watching the leadership race within the PNP the group would have learnt that when you attack this woman it causes people to become sympathetic and cause her to receive votes. The organisation also launched an attack on the media; any well thinking individual would know that you cannot fight the media. I will be the first to admit that certain elements in the media were evidently biased. However, when one can control the thoughts of the public whether via a microphone or a camera one must be careful of the attacks; the organisation created enemies within the media and the attack worked against them. The party along with Generation 2000 also took a swipe on gays and while we all may have our views on this sensitive matter we must be realistic. It is important that we respect one’s choice, the issue of morality will surface but frankly whatever a man chooses it is for him and his God to make amends on judgement day. This gay issue got personal and G2K along with certain elements within the party began to attack individuals who they suspected were gay. As such the campaign was no longer about the issues within the constituency of which these perceived gay persons are representing but more about their sexual orientation. This broadside attack backfired and in fact the persons who are said to be gay all won their seat. There was also a level of arrogance that existed among the top brass of the party. The common rhetoric of ‘it is not what you say but how you say it’ was at play and the Jamaica Labour Party failed to grasp this clever rhetoric. The party was not smart in how it sold the message, it is known that there is no money to pay public sector workers, yes we had to cut capital expenditure projects but the issue was how it was sold to the people. The party did not realise that the people you disrespect and shrug are the same ones you will ‘beg’ to vote for you when it is time to face the polls. The Jamaica Labour Party suffered significantly in the area of communications and public relations; the people will not know what you are doing unless you tell them. Not many of us will read a manifesto; frankly the people are not concerned about this document. They are more concerned with the ‘bread and butter’ issues. They want to know that they have money to go to the supermarket, money to send their children to school and some want to know that they have a job. The JLP should have broken down this issue and sold it to the people. While it is good that Mr. Shaw can point out that during the 18.5 years that the People’s National Party was in power Jamaica's growth averaged 1.2 per cent while the world economy grew at 5.0 per cent per year; growth in the Caribbean and Latin American exceeded 6.0 per cent, the truth is Jamaicans are really not concerned with these issues. Yes we have a stable exchange rate, BOJ/GOJ interest rates are at an all time low, there is record net and gross foreign exchange reserves, improvement in our balance of payments, a successful debt exchange program, growth in our economy despite the recession and a comprehensive tax reform is underway. Are Jamaicans really interested in hearing this? Jamaicans want this message to be broken down in the simplest common denominator and the Jamaica Labour Party failed in this aspect.

The PNP’s Strategy

The PNP after their loss at the 2007 general election went back to the drawing board. They stayed far from using their leader as the main person in the campaign, something they did in 2007 and this is what the JLP used in 2011. They reconnected with their base and while the JLP was busy in government the PNP was busy getting their people on the voters list. They focused on critical seats and ensured that they were in constant contact with the people. The PNP also used technology to their advantage; they outdid the JLP which was seen as the tech savvy party. The PNP had paid ads on Face book; they had carefully crafted links on the Gleaner website that would take us to a site to inform us of their plans. The advertisements were well focused; they informed the people of what they will do if they formed government. They played on the arrogance of the labour party and they focused on the people hence the tagline ‘People Power’. The PNP went for its finest, they had PJ Patterson a chief architect who led the PNP to four consecutive victories, and they also had Vin Lawrence who led the Urban Developed Corporation. Under his leadership we saw the evasion of the spanish hotels and investors who developed the Sangsters International Airport and highway 2000. They also had Alston Stewart and this was bolstered with the team that was already in place. The campaign was well focused and the mission was accomplished, even though Andrew was new he played right into the hands of PNP. The mistakes he made at the mass rally in Manchester led them to call him ‘baby bruce’ and the issue of trust resonated among the people. The PNP led the way with the campaign and the JLP was always on the back end. As it reached closer to the election the JLP campaign seemed desperate and was completely lost, this was coupled with the JDIP issues and the unfortunate handling of the ‘spy plane’ issue.

The Way forward

The Jamaica Labour party must now quickly lick its wounds and position itself for the future. First order of business is to reposition Generation 2000. This group must return to its mandate and become a ‘think tank’ for the party. G2K must now return to the days of David Panton and Christopher Tufton, we must see policies coming to the fore, they must guide the party on its course to success. The opposition although small in number must be effective in parliament. While the PNP can pass any bill without the need of the opposition the JLP must use the media to its advantage while showing the nation that they are holding the government to task. The opposition spokespersons must be informed and must challenge the ministers at all times. They should never be quick to oppose but must be strident and show the Jamaican people that they are keeping the government in check. The party faces a serious challenge, most of the parliamentarians are from the old guard and hence an old style of politics. Andrew must be skilful as he moves the party forward; I believe that the party must ensure that they retain some of their candidates. It is going to be hard but we must have people like Marlene Malahoo, Danville Walker, Sapphire Longmore, Robert Montaque, Dr. Christopher Tufton, Paula Kerr-Jarret et al to continue working in their constituencies. I also suggest that all these people are appointed to the senate so that the opposition can be strong and effective. The party must also reconnect with its base, they are not energized and they must find innovative ways to get them to stay true to the party. If I may take a line from popular entertainer Buju Banton ‘It is not an easy road, many see the glamour and the glitter and think it’s a bed of rose’. Uneasy is the head that wears the crown and the road ahead for Prince Andrew will not be smooth.