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As many as 27 government agencies are to be wound up during the 2008/2009 fiscal year along with a merger of other agencies, as part of the cost-containment measures to be announced by Finance and Public Service Minister Audley Shaw when he opens the 2008/2009 budget debate on April 10.
While confirming that several government agencies are to be wound up, Minister Shaw explained that most of them are non-operational while others are performing overlapping functions, which can be merged.
Included in the list of mergers and winding up are some of the current 15 subsidiaries of the Urban Developm≠ent Corporation (UDC), which could be contracted to seven or eight, coming from a high of 20 in the early 1990s, as well as the National Health Corporation.
The 15 UDC subsidiaries are Ackendown Newtown Development Company, Bloody Bay Hotel Development, Caymanas Development, Hellshire Marble Limited, Kingston Waterfront Re-Development Company, Lilliput Development Corporation, Montego Freeport, National Hotels and Properties, Ocho Rios Commercial Centre Limited, Pegasus Hotel of Jamaica, Runaway Bay Water Company, Rutland Point Beach Resorts, St. Ann Development Company, Seacastles Limited and Urban Maintenance Limited.
Cabinet has already approved the list of agencies to be merged and wound up but no one is willing to identify the affected entities. Informed sources told the Sunday Herald that work is far advanced on winding up seven dormant entities in government, two of which are subsidiaries of the UDC.
There were talks of winding up Jamaica Railway Corporation, which ceased passenger and cargo service in the early 90s and with the advent of Highway 2000 making passenger and cargo transportation much easier, it was felt there was no need for the company to remain on the books.
However, with Chinese interest expressing a desire to revitalize the rail service, it was thought best not to wound up the company in the event that a deal is struck.
When questioned on Friday Minister Shaw declined to identify any of the affected entities but agreed that funding is being made available so that those entities to be wound up can have their financial records, which are years in arrears, brought up to date. This is a prerequisite to any winding order being made.
The finance minister did concede that winding up dormant state agencies and merging those providing overlapping functions would aid in tidying up and eliminating some of the waste taking place in government, which was one of the trump cards the Jamaica Labour Party used to win the General Election last September.
In addition to the cost containment measures being employed, Minister Shaw will also use his maiden budget debate presentation to outline the heavy investment being made in technology to improve tax compliance and collection. This is part of the measures to finance the $489.6 billion budget for 2008/2009, where the promise has been given for no new taxes.
In the 2008/2009 Estimates of Expenditures, popularly known as the Budget, there is a doubling in the expenditure for computerizing the Customs Department moving from $45 million in 2007/2008 to $119 million in 2008/2009. A total of $210 million have been allocated to computerize the Revenue Services, which is just a million dollars over the amount spent in 2007/2008. In capital budget, a sum of $346 million has been allocated for fiscal management, of which the lion’s share of $336.1 million would be spent on capital goods and $9.8 million for services.
In addition, the capital allocation for improvements to the Island Collectorates has almost doubled moving from $65 million in 2007/2008 to $120.4 million in 2008/2009.
http://www.sunheraldja.com/article/show/580
While confirming that several government agencies are to be wound up, Minister Shaw explained that most of them are non-operational while others are performing overlapping functions, which can be merged.
Included in the list of mergers and winding up are some of the current 15 subsidiaries of the Urban Developm≠ent Corporation (UDC), which could be contracted to seven or eight, coming from a high of 20 in the early 1990s, as well as the National Health Corporation.
The 15 UDC subsidiaries are Ackendown Newtown Development Company, Bloody Bay Hotel Development, Caymanas Development, Hellshire Marble Limited, Kingston Waterfront Re-Development Company, Lilliput Development Corporation, Montego Freeport, National Hotels and Properties, Ocho Rios Commercial Centre Limited, Pegasus Hotel of Jamaica, Runaway Bay Water Company, Rutland Point Beach Resorts, St. Ann Development Company, Seacastles Limited and Urban Maintenance Limited.
Cabinet has already approved the list of agencies to be merged and wound up but no one is willing to identify the affected entities. Informed sources told the Sunday Herald that work is far advanced on winding up seven dormant entities in government, two of which are subsidiaries of the UDC.
There were talks of winding up Jamaica Railway Corporation, which ceased passenger and cargo service in the early 90s and with the advent of Highway 2000 making passenger and cargo transportation much easier, it was felt there was no need for the company to remain on the books.
However, with Chinese interest expressing a desire to revitalize the rail service, it was thought best not to wound up the company in the event that a deal is struck.
When questioned on Friday Minister Shaw declined to identify any of the affected entities but agreed that funding is being made available so that those entities to be wound up can have their financial records, which are years in arrears, brought up to date. This is a prerequisite to any winding order being made.
The finance minister did concede that winding up dormant state agencies and merging those providing overlapping functions would aid in tidying up and eliminating some of the waste taking place in government, which was one of the trump cards the Jamaica Labour Party used to win the General Election last September.
In addition to the cost containment measures being employed, Minister Shaw will also use his maiden budget debate presentation to outline the heavy investment being made in technology to improve tax compliance and collection. This is part of the measures to finance the $489.6 billion budget for 2008/2009, where the promise has been given for no new taxes.
In the 2008/2009 Estimates of Expenditures, popularly known as the Budget, there is a doubling in the expenditure for computerizing the Customs Department moving from $45 million in 2007/2008 to $119 million in 2008/2009. A total of $210 million have been allocated to computerize the Revenue Services, which is just a million dollars over the amount spent in 2007/2008. In capital budget, a sum of $346 million has been allocated for fiscal management, of which the lion’s share of $336.1 million would be spent on capital goods and $9.8 million for services.
In addition, the capital allocation for improvements to the Island Collectorates has almost doubled moving from $65 million in 2007/2008 to $120.4 million in 2008/2009.
http://www.sunheraldja.com/article/show/580
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