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Stabroek News

The problem of inflation
published: Monday | September 19, 2005

THE EDITOR, Sir:

SINCE 2003, the economy has been experiencing some problems with inflation. This has come within the context of a previous situation where the government has managed to contain inflation to single-digits. The movement of prices for goods and services has come within two contexts: the explosion of oil prices on the international market and natural disasters.

It is absolutely clear to me that the current round of inflation that we are experiencing is not caused by reckless government policies, but exogenous factors of which the administration has no control. However, I must say that I am flabbergasted by some of the erroneous commentaries that I hear being adumbrated in the public, especially from the Opposition, Jamaica Labour Party (JLP).

From 1997-2002, we experienced single-digit inflation. In 1997 the figure was 9.2 per cent, 1998 7.9 per cent, 1999 6.8 per cent, 2000 6.1 per cent, 2001 8.8 per cent and 2002 7.3 per cent. Minister Omar Davies has constantly articulated single-digit inflation as a critical plank of the Government's economic policy. He has come under consistent criticism for his emphasis on inflation containment. As a matter of fact, Mr. Audley Shaw, Opposition Spokesman on Finance, in one of his speeches, articulated the view that Minister Davies has a "fixation on inflation."

It is ironic to hear some of the quarters that are being critical of the Government and Minister Davies on the recent round of price increases.

JPS UNFAIR TO CUSTOMERS

I am even dismayed about some of the posturing by the JLP on the imbroglio with the Jamaica Public Service (JPS). I must state upfront that I support the view that there is the need for an enquiry in the operation of the monopoly. Just like other customers, I have had some horrible experiences with the company and I believe that they are not treating the Jamaican consumers fairly. However, I abhor the position being adopted by the JLP in which they are trying to lay the blame on the Government for the actions of the JPS.

The truth is that ever since the new regime relating to public utilities, there has been the requirement for an Independent Regulator. This Independent Regulator is mandated by law to monitor all the operations of the public utility companies and this includes the setting of prices for the services rendered by the utility companies. Such authority has been reposed in the Office of Utilities Regulation through legislation. The Opposition sat in Parliament when these legislations were being enacted and therefore they know and understand that the Government is not responsible for setting the price for these utility companies. It is therefore political expediency and intellectual dishonesty on the part of the Opposition in accusing the Government of not doing anything where the price adjustments to these companies are concerned.

I am further disturbed by the fact that the ruling People's National Party (PNP) has fallen asleep where some of these issues are concerned. The Party is failing to defend its own policies at a critical time when it needs to. It is my humble opinion that our members are so consumed with the internal presidential election, so much so that members are paying a blind eye to these matters. The problem gets worse if the issue is related to the portfolio of anyone of the aspirants. No one wants to be seen as defending an individual unless they are supporting him or her. This is why the JLP can be positing some of these erroneous views in the public domain. They flexed their muscle a few days ago by sponsoring street protest in some of their strong-hold communities. This has come back to haunt them because the majority of the Jamaican people, whilst disappointed with the Government, were not in favour with the type of thuggery that was taking place in the JLP sponsored protest. To the PNP I say, "Awake from your slumber and answer the call."

I am, etc.,

FLOYD MORRIS

Senator and Minister of State

Ministry of Labour and Social Security

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