Robert Hart, Assistant News Editor
GOVERNMENT YESTERDAY tabled new proposals for an energy policy which could include the reintroduction of a value-added tax on gas.
In presenting the measure, Prime Minister P.J. Patterson said the Jamaica Energy Policy 2006-2020 was aimed at tackling the social and economic threats created by rising oil prices across the world.
Mr. Patterson told the House of Representatives that the current "wave of oil price increases" represents the fourth since 1973.
"(But) unlike the previous ones, there is a common prognosis that this one represents a permanent rise, and the days of low prices have ended, and this does not augur well for oil-dependent economies such as Jamaica," the Prime Minister said.
He told members of the House that the new Jamaica Energy Policy will be subjected to the scrutiny of parliamentarians, interest groups and the public at large before a final draft is completed.
The document is intended to place greater emphasis on energy efficiency, fuel sources, and energy use in transportation than did an earlier policy developed in 1995.
"The Green Paper deals with these issues, as well as others such as environmental impacts, under the various areas of the energy sector such as energy supply and security," Mr. Patterson said in outlining some of the fundamental concerns put forward in the document.
Other issues examined in the document include diversification of energy types, with focus placed on natural gas, coal and renewables; and a potentially explosive examination of the petroleum tax regime.
According to the tabled document, "The Government will undertake studies and conduct consultations with a view to the possible introduction of an ad valorem tax in transportation fuels and the dedication of the increased revenue to the Road Maintenance Fund ..."
About 20 per cent of the revenue would be provided to the National Energy Fund to support conservation, efficiency and renewable energy projects.
The planned introduction of an ad valorem tax on gas led to islandwide protests in 1999, forcing the Government to back down from the move announced at the time by Minister of Finance and Planning, Dr. Omar Davies.
However, in recent years, the possible reintroduction of such a tax on gas has crept back into the national psyche with the Matalon Committee on Taxation proposing that it be implemented, as well as suggestions from Dr. Davies that Jamaicans must give the issue serious thought. Just last year Prime Minister Patterson stressed that the Opposition should avoid "playing politics" with any suggestion that the tax be reintroduced.
NATIONAL ENERGY POLICY CONSIDERATIONS
Energy supply and security.
Diversification of energy types.
The petroleum industry.
The Petrojam Refinery.
Petroleum pricing.
Petroleum tax regime.
The electricity sector.
The transport sector.
Development of renewable energy resources.
Solar energy.
Conservation and efficiency.
Creation of an energy fund.
Institutional structure for
managing the sector.
