By Al Edwards, Business Co-ordinatorLASCO boss, Lascelles Chin is calling on the Jamaican Government to cut bureaucracy and go all out to attract foreign direct investment (FDI) thereby boosting local manufacturing and creating jobs.
He was speaking on Wednesday at the Jamaica British Business Association luncheon at the Jamaica Pegasus Hotel and recounting the relative ease and co-operation he received from the British Government in putting up his soy factory.
He said : "Of course, this project is an expansion, not a shifting of our focus -- we are remaining in Jamaica, to which we are deeply committed. In fact, after this new UK factory is completed in March; within two years time it is our intention to set up a similar plant right here in Jamaica, as we will be joining the Free Trade Area of the Americas or the FTAA. This will provide us with a 20 per cent saving in duty plus freight, in all the expanded markets of this hemisphere.
What I would like to share are the extremely positive experiences Lasco has had at every stage of the project in Britain.
"What was really pleasant, however, was the whole aspect of professionalism, eagerness and enthusiasm with which I was treated as an investor, by top Government officials, the Mayor himself and by the bankers.
Because Lasco has a good reputation and payment record, the project is being funded by as much as 90 per cent at 4 and a half per cent interest. In addition, it received grants of 820,000 pounds from the Regional Development Agency to provide 128 jobs."
He said that if he had been building a new factory instead of renting an existing one, the EU would have offered a grant of up to 35 per cent -- more than one third of the total cost. For example, if the land and building cost a total of 2 million pounds the grant could be 700,000 pounds.
He noted the way the Government agency responsible for assisting investors operated. There was no red tape, things were done quickly and smoothly, and the co-operation between the different agencies involved was effortless. For example, the Environment Department took a few days to give their approval. In addition, they gave Lasco 6 months to discharge effluent free of cost into their system.
"Our application to operate the factory was ready two days after the Government board met to consider it - and if a board meeting had not been planned at the time, one would have been scheduled to facilitate us!
ADJUSTMENTS
"Government officials, including the Mayor, even accompanied us to inspect the factory we wanted to rent. When the Mayor saw what our intentions were, he gave us £50,000 out of his budget to help us with the adjustments to the building.
The Plymouth City Council and other officials were so interested in our plans, that a 4-acre plot has been reserved for us, adjacent to our factory. When we are ready to expand, we will be able to either rent it for 99 years at peppercorn rental, or to purchase it at a very low price. This is really encouraging - to know that they are thinking about the long term on our behalf."
He said that Lasco had been offered a lot of assistance with marketing and sales and there are many grants available, especially for those involved in the area of export sales.
"The Government is assisting us with the recruiting of staff -- and I must mention that about 500 people applied for the initial 60 start up jobs! The City Council sent 10 persons and the Government agency sent another 5 persons (total of 15) to help with the interview process over a three-day period. What was interesting was that many of the persons came to the factory site as early as 6:00 a.m. to help us set up.
"So in all, it took us two and a half months to prepare for this project. And it then took the Regional Development Agency or RDA less than a month to approve it. During those few weeks we were interviewed extensively and checked out thoroughly - they have no intention of giving grants without getting results! After the RDA is satisfied with our performance, 60% of the grant is given in the first year, another 20 per cent in the second year, and the final 20% in the third year."
"With this type of financial help or grants, with all the interest, enthusiasm and the lack of red tape, with the speed at which the approval for our applications was given, it is no wonder they are attracting investment in the UK.
With that type of assistance, new investors are on very solid ground and enjoy excellent prospects, not only to succeeding in their initial ventures, but of expanding further!
This is the type of competition, which Jamaica faces as we try to attract investment in this country, whether by foreign investors, or by Jamaicans."
For Jamaica to attract investment and create jobs, the Government has to pay more attention to manufacturing. They need to give monetary incentives to create jobs; they need to create a special financial window for lower interest rates, to cut the red tape and reduce the bureaucracy. In addition, investors - whether local or foreign - need to be welcomed with interest, excitement and enthusiasm. Otherwise we will only be talking about job creation, without ever achieving it."
