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Cut the 'red tape' Private sector leaders plead for reduction in bureaucracy

By Lynford Simpson, Staff Reporter


Clarke

PRIVATE SECTOR leaders over the weekend again urged the Government to reduce the level of public sector bureaucracy which, they say, is a major deterrent to economic growth.

The call, which was first made on Friday by Anthony Chang, president of the Jamaica Chamber of Commerce (CofC), was repeated on Saturday night by Clarence Clarke, president of the Jamaica Manufacturers' Association. He was addressing the association's 34th annual awards banquet at the Jamaica Pegasus Hotel, New Kingston.

Mr. Clarke asked as he addressed the JMA's banquet:

"Can you imagine how much better the manufacturing sector could have performed if we were not impeded by 'red tape'?"

His question came against the background of marginal growth experienced in the manufacturing sector last year.

According to Mr. Clarke, "The time has come to cut the 'red tape', so that the sector can experience new heights of success."

He encouraged the SMEs (small and medium enterprises), to capitalise on providing the non-core services being out-sourced by larger companies which were now concentrating on their core functions. This, he said, would boost GDP growth and sustain economic development.

Red Stripe walked away with the Governor-General's Award for Excellence at Saturday night's ceremony; Wray and Nephew Ltd., copped the Prime Minister's Cup for the Champion Exporter. Wray and Nephew also walked away with the Robert Lightbourne Award for productivity; Walkerswood Caribbean Foods Ltd. won the award for competitiveness; Edge-chem Jamaica Ltd. was voted best medium-sized manufacturer. The award for the best use of energy went to Red Stripe.

Mr. Chang, speaking at a breakfast meeting of the New Kingston chapter of the Rotary Club, said the transformation of the Jamaican economy could only be achieved if there was a significant reduction in both private and public sector bureaucracy.

"How can you transform if you have ...problems, friction in completing transactions in the private sector and public sector?" he asked. He said the problem had persisted for decades. "We looked at speeches of 20 to 30 years ago, and many of the (CofC) presidents spoke about the same thing, and it still exists today. We have, in my estimation, too much 'red tape' and it's a hidden cost in doing business."

According to Mr. Chang, the high level of bureaucracy was especially burdensome on the SMEs (small, medium enterprises). This, he said, "does not help our competitive position and the cost of doing business." He expressed disappointment that the issue had not been discussed in the just-concluded Budget debate in the House of Representatives.

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