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Wednesday, December 17, 2008
The Government's relief package has been described by the Opposition as lacking in central focus, while the Jamaica Manufacturers' Association (JMA) says the initiatives are a timely step in the right direction.
Both groups issued the contrasting responses Monday after listening to Prime Minister Bruce Golding announce on Sunday night the package of tax cuts, duty exemptions and hundreds of millions of dollars in low-interest loans designed to bring relief to companies and individuals in the face of the global economic crisis.
"The JMA believes that these initiatives are a step in the right direction and timely in light of the current world economic situation, which has threatened job security and the livelihood of manufacturers," the umbrella body of manufacturers said in a statement. "It is also indicative of the Government's commitment to job and wealth creation through the development of industry."
The JMA, headed by Omar Azan, expressed support too, for the procurement policy under which a 10 per cent margin of preference will be given to Jamaican-owned companies in the award of contracts.
"This is a clear signal of leading by example to buy Jamaican and build Jamaica," the JMA said. "The implementation of this policy will ensure that the contracts for the printing of our primary school textbooks are granted to Jamaican printeries."
The JMA also said it appreciated the decision to remove the two per cent Customs User Fee on both capital equipment and raw materials, and that it was looking forward to next month's signing by the Government of a US$300-million credit facility with the Inter-American Development Bank to be made available through commercial banks and the Export-Import Bank for the productive sector.
"Micro, small and medium-sized enterprises are important to the development of Jamaica, so the association also welcomes the Development Bank of Jamaica allocation of $350 million through the Jamaica National Small Business Loans Ltd and the $150 million provided to the Jamaica Business Development Centre," said the JMA. "These financial packages will enable manufacturers to retool and enhance their competitiveness."
The association was also pleased with the initiative to abolish the withholding tax on dividends for all locally owned companies, arguing that it would "further encourage equity financing and enhance wealth creation within the economy".
In sharp contrast, the Opposition said that while it welcomed any relief for households and businesses, the package "reflects an effort to appease those sectoral interests who have shouted the loudest and enjoy ready access to the prime minister, whilst providing little for the vulnerable and voiceless in our society".
It described as inadequate, the increase in the income tax threshold - saying it was not targeted at the needy, since it benefits taxpayers from top to bottom - and the two-week window for duty free importation of barrels under US$3,000.
The Opposition also renewed its call for a rollback of National Housing Trust (NHT) mortgage rates, particularly for the fact that the agency was reaping a windfall due to the sharp hike in interest rates on government instruments.
A rollback of the rates, the Opposition added, would also "give the Government the moral authority to encourage private sector institutions not to increase their rates".
The Opposition also raised concerns about the cost of the relief package to the state, saying that several of the measures will "adversely impact the current budget, and the absence of any costing of the measures in the prime minister's speech will only serve to further erode confidence among creditors, investors and others who watch Jamaica's fiscal performance carefully".
http://www.jamaicaobserver.com/news/...ACKAGE__B_.asp
The Government's relief package has been described by the Opposition as lacking in central focus, while the Jamaica Manufacturers' Association (JMA) says the initiatives are a timely step in the right direction.
Both groups issued the contrasting responses Monday after listening to Prime Minister Bruce Golding announce on Sunday night the package of tax cuts, duty exemptions and hundreds of millions of dollars in low-interest loans designed to bring relief to companies and individuals in the face of the global economic crisis.
"The JMA believes that these initiatives are a step in the right direction and timely in light of the current world economic situation, which has threatened job security and the livelihood of manufacturers," the umbrella body of manufacturers said in a statement. "It is also indicative of the Government's commitment to job and wealth creation through the development of industry."
The JMA, headed by Omar Azan, expressed support too, for the procurement policy under which a 10 per cent margin of preference will be given to Jamaican-owned companies in the award of contracts.
"This is a clear signal of leading by example to buy Jamaican and build Jamaica," the JMA said. "The implementation of this policy will ensure that the contracts for the printing of our primary school textbooks are granted to Jamaican printeries."
The JMA also said it appreciated the decision to remove the two per cent Customs User Fee on both capital equipment and raw materials, and that it was looking forward to next month's signing by the Government of a US$300-million credit facility with the Inter-American Development Bank to be made available through commercial banks and the Export-Import Bank for the productive sector.
"Micro, small and medium-sized enterprises are important to the development of Jamaica, so the association also welcomes the Development Bank of Jamaica allocation of $350 million through the Jamaica National Small Business Loans Ltd and the $150 million provided to the Jamaica Business Development Centre," said the JMA. "These financial packages will enable manufacturers to retool and enhance their competitiveness."
The association was also pleased with the initiative to abolish the withholding tax on dividends for all locally owned companies, arguing that it would "further encourage equity financing and enhance wealth creation within the economy".
In sharp contrast, the Opposition said that while it welcomed any relief for households and businesses, the package "reflects an effort to appease those sectoral interests who have shouted the loudest and enjoy ready access to the prime minister, whilst providing little for the vulnerable and voiceless in our society".
It described as inadequate, the increase in the income tax threshold - saying it was not targeted at the needy, since it benefits taxpayers from top to bottom - and the two-week window for duty free importation of barrels under US$3,000.
The Opposition also renewed its call for a rollback of National Housing Trust (NHT) mortgage rates, particularly for the fact that the agency was reaping a windfall due to the sharp hike in interest rates on government instruments.
A rollback of the rates, the Opposition added, would also "give the Government the moral authority to encourage private sector institutions not to increase their rates".
The Opposition also raised concerns about the cost of the relief package to the state, saying that several of the measures will "adversely impact the current budget, and the absence of any costing of the measures in the prime minister's speech will only serve to further erode confidence among creditors, investors and others who watch Jamaica's fiscal performance carefully".
http://www.jamaicaobserver.com/news/...ACKAGE__B_.asp