Karl Samuda, Opposition spokes-man on Commerce, made his contribution to the Sectoral Debate in the House last week. Below are excerpts of his presentation.
I NOW turn my attention to the final part of this presentation, that of the manufacturing sector.
A once proud sector employing over 130,000 is today just a shadow of itself with direct employment of less than 70,000.
Price dumping, security, high electricity costs, uncompetitive interest costs and very uncompetitive capital structures (high debt to equity ratios) are the main problems facing the sector.
Our economy will not grow significantly without a meaningful contribution from the manufacturing sector.
ABSORBED
There are approximately 160,000 professional and technical persons unemployed that could be absorbed by the manufacturing sector. (2002 STATIN report)
Capital used to stimulate the IT Sector through the Intec fund scheme would have done more for the country had it been spent on manufacturing. More jobs would have been created with greater value added contribution to the overall economy.
One may ask, what can we now do? Suggestions:
Contain debt, cut expenditure and facilitate the productive and service sectors to create growth. The Minister likes to ask how can this be achieved without cutting health and education etc.
Mr. Minister, the truth is it can be done and must be done if we are to work our way out of this mess.
The draconian cess on the backs of the productive sector must be reviewed at the end of the year with a view to removing it from Manufacturing, Agriculture and Tourism in particular.
The strategy must be to discourage local consumption of foreign goods whilst simultaneously facilitating local production.
Assist the small business sector by encouraging the use of local raw materials by giving tax breaks to investors willing to pursue those activities. Maximise the use of our primary raw materials in the agro-industrial sub-sector through a system of tax incentives.
Facilitate the development of maritime transportation.
Support and encourage a buy Jamaica brand in the same way that we market tourism. We should also consider giving tax relief for export marketing expenses.
Remove taxes from craft manufacturers. Treat this as part of the export sector.
Government must as a policy support local production by purchasing locally produced goods for its use, such as furniture and office supplies etc.
Enact a Productivity Incentive Scheme immediately.
ECONOMIC CLUSTERS
Facilitate the establishment of special economic clusters where common services can be shared in order to reduce costs and be more competitive. Where factory space is vacant, extent use to genuine manufacturing enterprises at little or no rent for at least five years. This will give the businesses an opportunity to get off the ground without the overhead cost of rental. The Government must realise that it has to give to receive.
How are we going to be competitive against our principal trading partners within the next three years when we have to face what is likely to be the ravages of the FTAA. Already we are running a trade deficit with most if not all of our CARICOM partners.
Establish a system to give incentives to genuine venture capital firms. Encourage the owners of capital to invest in new and existing ventures through special tax breaks.
Productivity must increase so that we can pay our workers more without affecting our competitiveness. The increased productivity will absorb the higher wages. Remaining with low productivity will drive companies out of business and worker will be thrown out of work, its as simple as that. Introduce a tax relief for the purchase of all new technology that enhances productivity and improves competitiveness.
We in CARICOM must begin to select collective goals as has been done in Africa under the "New Partnership for African's Development (Nepad)". The objective is to achieve an average growth rate in Africa over the next 15 years of seven per cent per year. In addition they will seek to attract US$64 billion of new investment, whilst bidding for more debt relief, better trade and more aid.
Deal effectively and collectively with crime. Mr. Speaker, there is no single scourge on the fact of this country that is rapidly picking up speed, than that of crime. Disregard for the law is now the general rule.
EMPLOYMENT
It is easier to make a living illegally today than to obtain lawful employment.
The time has come for us to put a stop to it before it is too late. It is either we stop it or it will stop us.
Each member of this House owes it to both the present and future generation to stamp out crime, corruption and violence at all levels.
As Members of Parliament we will never bring this about until both sides recognise and treat criminals as criminals, regardless of whatever political influence they may possess. The only havens that should be offered to those who wilfully attempt to destroy our country, should be those offered in our prisons.
