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Stabroek News

PSOJ reform vs tradition of big business - Clarke, Zacca maintain platforms as presidential elections near
published: Friday | November 17, 2006


Left: PSOJ presidential candidate William 'Bill' Clarke (right) is seen here in a January 2005 file photo in conversation with chairman of Musson Desmond Blades and BNS executive Minna Israel.   Right: PSOJ presidential candidate Christopher Zacca (left foreground) is seen here in this December 2004 file photo in conversation with Aubyn Hill at a press conference to announce ownership changes to Air Jamaica. In the background, at left, is Leo Lambert, and chairman of the ATL Group Gordon 'Butch' Stewart. - File photos

- William 'Bill' Clarke, president of the powerful Bank of Nova Scotia Jamaica Limited, and Christopher Zacca, deputy chairman of the ATL Group of companies and former chief executive officer of the national airline Air Jamaica - their reasons for wanting the position. The same questions were put to both men in separate interviews this week.

Why do you want to be president of the PSOJ?

Clarke: I have headed the Jamaica Banker's Association five different times, and have been on the executive committee of the PSOJ as a result, so I know what goes on there. The PSOJ has been doing the same thing for 30 years.

The PSOJ needs to change to become more inclusive, with greater outreach. For example, it only has three members outside of Kingston. People in Mobay won't join a Kingston organisation. The articles of the PSOJ allow for the creation of regional chapters.

The organisation is also currently very reactive. When something happens the PSOJ issues a statement of support or not as the case may be. Instead, it needs to take positions on the basis of Jamaica's best national interest.

We need a wider cross section of companies making decisions. Currently the larger companies call the shots, on the basis of "he who pays the piper calls the tune."

I would expand the officer core, with a first vice-president, three additional vice presidents, an economic and taxation policy advisor and a legal advisor, to share the load, giving them sufficient stature to talk on an issue. For example, a VP in charge of looking at the issue of crime would have sufficient stature to talk on the issue in a scenario of shared responsibility rather than the current lonely position of the president at the top issuing statements on everything.

The PSOJ needs to be a non-political organisation. We need to be transparent in the private sector in the way we do business with the state and observe the laws of Jamaica, e.g., with respect to paying taxes, and generally observe ethical behaviour in all our business dealings. One can't just pontificate about what government is doing wrong, but we also need to say what it should do differently.

While my original position was that I wanted greater representation for companies on the PSOJ council, my current position is that there should be no change in the 50/40/10 per cent split on the council between associations, companies and individuals.

Zacca: I feel a passion to try and influence the business environment. For the most part, business has been operating in an unfriendly environment in Jamaica for many decades. I am committed to positive change in this area, which in my view will benefit both business and every Jamaican.

In addition, the private sector is not united, and I believe I have the skills to unify them to achieve one common set of strategic goals.

What are you seeking to accomplish specifically?

Clarke: Lets talk about pension reform. Why is the National Insurance Fund, with the largest pool of pension funds in Jamaica, not subject to the same pension legislation as the private sector? The current policy also depresses pensioners' investment returns. Why withhold tax on pensioners when their income is supposed to be tax free? The 45-day window is not operating, as BNS alone is owed $1 billion.

In the area of education, members of the PSOJ complain it is terrible that our kids can't read. However, what programme or model can the PSOJ bring to the government targeting education reform?

The government has 88 bargaining units. They should have a three-year contract cycle, as opposed to an annual cycle, as this bargaining has a huge administration cost. In the case of education, how much of the money is being spent on the curriculum as opposed to teacher's salaries?

Zacca: Specifically, I would like to bring the Jamaica Chamber of Commerce and the Jamaica Manufacturers Association back into the PSOJ, giving them a greater voice in the PSOJ and thereby making the PSOJ lobby stronger.

I want the PSOJ to keep its relevance to the large companies and the various sectors that it currently serves, but also make it more relevant to younger entrepreneurs and businessmen, as it is they who will provide the future growth and jobs for the country.

Why do you believe you will be able to accomplish this?

Clarke: I believe I will be able to accomplish this because I am a results orientated person. We have had marches, etc, against crime, but have we got substantive results? Whilst we've made an impact in this area, a lot more could be done.

There is a huge opportunity for the PSOJ to impact the state of the nation by putting the government's feet to the fire in a constructive fashion. The PSOJ needs to bring forward plans to government that are workable and executable.

Zacca: My broad experience in business across different industries, including exports and manufacturing (Desnoes and Geddes and Caribrake), in commerce and trading with ATL and its associated companies, in media with the Observer and in services (Air Jamaica and Sandals).

Why do you believe you will have the time for the position when you already have a very demanding job as a CEO?

Clarke: The position of president is not a full time position. I would widen the officer core to share the burden of administration of the PSOJ, instead of the current 'one man band' situation. One can't run Scotiabank as president alone. Nobody is indispensable. I would like the PSOJ to be the same, working as a collective effort.

Zacca: While I realise it will take a lot of my time, I am very confident in my ability to manage that time, and delegate some of my existing job functions. Very importantly, I have the support of my board, and I am willing to sacrifice some of my personal life to meet my goals as president.

I've no doubt that with the support of a strong team of officers at the PSOJ, we can get the job done.

What will be your relationship with the other private sector organisations?

Clarke: The PSOJ has to be an umbrella organisation. We need consensus building, with no one group prevailing so only their voice is heard. In some organisations the majority counts, so everybody goes along with the majority, but if I disagree I will say so. I need to be convinced. It's as if you are in a jury. You must have conviction in whatever decision you make.

Zacca: I do not believe in competing with the other organisations. Any plans to expand the membership of the PSOJ would end up competing with the other organisations and that is the wrong path.

Are there any past presidents of the PSOJ you admire, and would seek to emulate?

Clarke: (Made no direct comment)

Zacca: All have brought some positives to the organisation and all the past presidents should be respected. The late Carlton Alexander of Grace Kennedy, who as president helped found the PSOJ, was in my opinion the ultimate conciliator and diplomat.

Does your current job impose any limitations on your independence or ability to speak your mind?

Clarke: I have been dealing with the Government on difficult issues for many years, and have disagreed with them on a lot if issues. If I think my position could be compromised I would resign. It would be like one giving a political donation and asking the government to keep quiet on an issue. They wouldn't do that, and neither would I.

Zacca: No. It gives me the independence and strength to speak my mind on issues of national importance. However, the PSOJ should only be critical publicly if all other policies have failed.

Do you believe lack of trust is one of the biggest problems between the Jamaican Government and the private sector, and how would you fix it?

Clarke: Yes. The solution is for the government to enact policies that are fair and ethical, showing no favouritism across the business community.

The private sector has a similar need to be ethical, for example, with respect to paying its taxes. One also needs to treat people with respect, even your gardener or helper, and give them the dignity they deserve, which is a serious failing in this country.

Zacca: I believe it very strongly. You have to fix the problem by operating with transparency and accountability, and demand a similar modus operandi from the Government.

Do you agree that the private sector doesn't hold government accountable, and what would you do about it as president?

Clarke: It goes back to the trust factor. One can only be effective with the government if they trust you and believe what you are saying. Accountability requires respect, otherwise you won't get anywhere at all with the government.

Zacca: It is not a matter of the PSOJ holding a particular group accountable, or taking a stand against the government. The PSOJ must act in a structured negotiated fashion, and always use reasoned informed discussion as its first tool to accomplish its goals. The PSOJ should however be prepared to take strong positions when absolutely necessary.

If you are elected, what will your three top lobbying priorities be to help Jamaica?

Clarke: Health, education and security. We need a policy to deal with our social problems such as crime, acting to not only deal with the symptoms, but the root causes. Lots of 15-year-old kids who can't read become a breeding ground for crime. We can bring foreign cops from wherever in the world we want, but we still need to deal with root causes such as education.

Zacca: The creation of a business friendly environment, for example through simplifying the bureaucracy and taxation; reducing the underground economy the current business environment favours either large companies, or companies that operate outside the official legitimate structure, and this has been the case for decades; crime and corruption.

How should your performance as president be judged?

Clarke: By whether there is tangible change between the state and its people. If I am able to bring about change through lobbying the government, for example, in health care.

Zacca: If in a year's time, there is greater participation in the organisation, in particular from the JCC and JMA.

Also, if the PSOJ has greater support and recognition from young entrepreneurs and small business persons.

If business in general feels the PSOJ has earned them greater respect in the society as a whole.

As president, in your dealings with the government, will you lobby behind closed doors, or shout from the rooftops through the press?

Clarke: Going to the press is counter productive, negotiation requires dialogue and respect.

Zacca: Reiterated that PSOJ should only be critical publicly if everything else fails.

How will your management style differ as head of the PSOJ from your style as CEO?

Clarke: My corporate management style is action orientated deliverables not mediocrity, a can do spirit with a team who are doers. You are not going to succeed in changing an organisation immediately which has been the same for decades. If you want change, you can't make an omelette without breaking eggs.

Zacca: As a CEO, you depend on your team to accomplish your goals, and you should encourage team building through the delegation of responsibility and inclusion in decision-making. However, as a CEO, if all else fails, you issue instructions. As president of the PSOJ, you must rely on your skills of persuasion and negotiation to a much greater extent than as a corporate CEO.

What is the single biggest impediment to growth in Jamaica, and what will you be able to do as President to improve matters?

Clarke: The lack of job opportunities. We have a large number of unemployables in our workforce. We need to make it a priority to identify opportunities for them. We also need to encourage entrepreneurship in schools, encouraging a student to study chemistry so as to start a business extracting pimento oil or food processing. We are too reliant on employment rather than entrepreneurship in Jamaica today.

We need to turn around the education system, as currently our kids are passing through the system "like water through a tap." Jamaica needs an educated workforce, a very productive public sector, and good conditions in hospitals to keep our nurses and doctors here.

Zacca: We need to create a business-friendly environment, simplify the bureaucracy and improve trust.

In the U.S. it has been said that the business of America is business. Do we need a similar focus here?

Clarke: Yes. Only small and micro businesses are going to grow the economy, generating the employment and economic revolution we so badly need. Entrepreneurship needs to become a way of life, rather than people lying on a street corner saying they have no work.

Zacca: Absolutely.

- keithcollister@cwjamaica.com

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