Tweet
A NEAR wipe-out of the Capital Development Fund (CDF), mainly for budgetary support, on Tuesday left some opposition parliamentarians fuming that successive political administrations have failed to plan effectively for life after bauxite.
Following yet another withdrawal from the CDF, South Manchester Member of Parliament Michael Peart complained that enough resources have not been directed to bauxite communities.
$6.8 million remaining
Finance Minister Audley Shaw, moved a resolution for the withdrawal of $770 million from the CDF, leaving $6.8 million in the fund.
The CDF, which is financed by the bauxite levy, was intended to be used for capital and development projects in areas that are subjected to bauxite-mining activities.
The finance minister said $510 million of the amount was being taken out of the fund for budgetary areas. Another $159.4 million will go to the Jamaica Bauxite Institute for budgetary support, while $100 million has been set aside for the bauxite community development fund.
"I am amazed that this Govern-ment, at this point in time, can make a significant withdrawal from the Capital Development Fund and it is basically for housekeeping," Peart protested in the House.
The opposition MP described as "a token amount", the allocation for the bauxite community development fund, noting that, in light of the shutdown of three of the country's four alumina plants, more should be done for the areas.
"I would expect that with a dwindling resource, which is the Capital Development Fund and the dislocation being caused by the alumina plants, that some special allocation be made to assist these areas.
"Not even the crisis in the bauxite areas can jerk this Government into addressing some critical needs of these people," Peart said.
However, government MPs said the allocation to the bauxite community development fund was laudable.
Proper allocation
"It was increased from two million to four million ... . How much more does he want?" MP Everald Warmington said, noting that the allocation to each constituency had been doubled.
North Central MP Pearnel Charles said it was "the first time we are getting a proper allocation".
Meanwhile, Mining and Energy Minister James Robertson told the House that the full budget for the communities was $136 million but noted that he expected the finance minister to cover the shortfall in the future.
Meanwhile, Peart's opposition colleague, Dr Peter Phillips, said the state and use of the CDF since its inception was "an indictment on all of us and the political system".
"It was designed to prepare our society and economy for a time when the bauxite which we have been blessed with would have been exhausted," Phillips said.
"The crisis is upon us now and we have not a penny to spend on our long-term development options," Phillips added, urging that it was time for Jamaica to plan for a post-crisis economic model.
The finance minister described as "a tragedy that we have not sought to replace that depleting resource with capital that you can discern and you can see".
With demand and prices down for bauxite, and only one of the four bauxite plants still open in the country, Jamaica is projected to earn just more than $130 million from the industry this year, down from $1.5 billion in former years.
daraine.luton@gleanerjm.com
http://www.jamaica-gleaner.com/glean...ews/news2.html
Following yet another withdrawal from the CDF, South Manchester Member of Parliament Michael Peart complained that enough resources have not been directed to bauxite communities.
$6.8 million remaining
Finance Minister Audley Shaw, moved a resolution for the withdrawal of $770 million from the CDF, leaving $6.8 million in the fund.
The CDF, which is financed by the bauxite levy, was intended to be used for capital and development projects in areas that are subjected to bauxite-mining activities.
The finance minister said $510 million of the amount was being taken out of the fund for budgetary areas. Another $159.4 million will go to the Jamaica Bauxite Institute for budgetary support, while $100 million has been set aside for the bauxite community development fund.
"I am amazed that this Govern-ment, at this point in time, can make a significant withdrawal from the Capital Development Fund and it is basically for housekeeping," Peart protested in the House.
The opposition MP described as "a token amount", the allocation for the bauxite community development fund, noting that, in light of the shutdown of three of the country's four alumina plants, more should be done for the areas.
"I would expect that with a dwindling resource, which is the Capital Development Fund and the dislocation being caused by the alumina plants, that some special allocation be made to assist these areas.
"Not even the crisis in the bauxite areas can jerk this Government into addressing some critical needs of these people," Peart said.
However, government MPs said the allocation to the bauxite community development fund was laudable.
Proper allocation
"It was increased from two million to four million ... . How much more does he want?" MP Everald Warmington said, noting that the allocation to each constituency had been doubled.
North Central MP Pearnel Charles said it was "the first time we are getting a proper allocation".
Meanwhile, Mining and Energy Minister James Robertson told the House that the full budget for the communities was $136 million but noted that he expected the finance minister to cover the shortfall in the future.
Meanwhile, Peart's opposition colleague, Dr Peter Phillips, said the state and use of the CDF since its inception was "an indictment on all of us and the political system".
"It was designed to prepare our society and economy for a time when the bauxite which we have been blessed with would have been exhausted," Phillips said.
"The crisis is upon us now and we have not a penny to spend on our long-term development options," Phillips added, urging that it was time for Jamaica to plan for a post-crisis economic model.
The finance minister described as "a tragedy that we have not sought to replace that depleting resource with capital that you can discern and you can see".
With demand and prices down for bauxite, and only one of the four bauxite plants still open in the country, Jamaica is projected to earn just more than $130 million from the industry this year, down from $1.5 billion in former years.
daraine.luton@gleanerjm.com
http://www.jamaica-gleaner.com/glean...ews/news2.html