PNP unveils economic platform

[Lazie]

The Opposition People's National Party (PNP) has indicated that it will be focusing more on stimulating domestic investments when it forms the next government in Jamaica.

Senator Mark Golding, the party’s spokesman on industry and commerce, told journalists today that the PNP's new economic frontier aims to reverse the levels of stagnation now present in the economy.
Golding says a PNP government will place the development of Micro Small and Medium-sized Enterprises (MSMEs) at the forefront of its political affairs.

According to him, in order for Jamaica to grow these businesses, they must have an environment in which to survive.
On Sunday, PNP president Portia Simpson Miller told the public session of the party's 72nd annual conference that businesses could benefit from a five-year tax holiday as an incentive to encourage investment.
And Golding says the tax-break being contemplated would have to be agreed on by the multilateral agencies.

He also said that one of the criteria for benefiting from the tax holiday would be job creation.
The governing Jamaica Labour Party (JLP) attempted to introduce a tax break incentive scheme in the tourism sector but was told by the multilaterals to put it on hold.

http://go-jamaica.com/news/read_article.php?id=22763

[Lazie]

ummm ... interesting.

[Willi]

LoL
Annada liad Gelding.

[Assasin]

After all a dat, "the multilaterals have to approve"? A Caymanas park them call it "A late none starter".

Him nuh see how them clip Bartlett wing when him wanted to give the hotel them a tax break?

[MissLondon]

How does this economic plan differ from the one during the disasterous 18 years of stagnation? And who will oversee this economic plan, Omar Davies? lol (shouldn't laugh, it's really not that funny)

[Willi]

How does this economic plan differ from the one during the disasterous 18 years of stagnation? And who will oversee this economic plan, Omar Davies? lol (shouldn't laugh, it's really not that funny)

PNP's tax promise hollow

Published: Wednesday | September 22, 2010




THE EDITOR, Sir: THE OPPOSITION'S promise of tax breaks for business sounds hollow when you consider the dim state of the economy it left three years ago, the even darker state in which the People's National Party (PNP) says it now is, and the prospect of utter ruin that it envisages at the end of the present government's term. If this situation be true, then where will a new PNP government find resources to afford tax breaks?
According to Gleaner records for 2007-08, Mr Davies "... presented a deficit for the fiscal year (excluding debt amortisation of $102 billion), which appears to be close to $37 billion." And he said, "In a deficit target of 4.5 per cent of GDP (gross domestic product), we require revenues and grants of $241.4 billion." Since tax breaks were not then considered nor affordable, they can be realised only if there is growth and stability, more productivity and less reliance on loans and grants. This is precisely what the PNP says is not happening; so how are we to going to get the promised tax breaks? Serious people must demand an explanation.
Lending agencies
While we are on the subject, it might be useful to recall that the present administration addressed the issue in December 2008 when it announced the re-engagement of multilateral lending agencies such as the World Bank and Inter-American Development Bank, to gain access to longer term loans at a lower interest rate cost. These efforts resulted in the government securing US$350 million, with further plans to receive an additional US$600 million by the end of the fiscal term in March 2009.
There was also the plan to provide $350 million for small- and medium-size businesses via the Jamaica National Small Business Loans Ltd; $150 million for lending to small businesses through the Jamaica Business Develop-ment Centre at a 10 per cent rate; $150 million at a similar rate to credit unions for similar type lending. A mandatory 15 per cent of total procurement offered by government agencies was said to be reserved for small businesses and microenterprises.
Serious people must insist on and ensure that the present administration live up to the flesh and bone of this promise before thinking about a shadowy promise that says nothing about how it is to be achieved.
I am, etc.,
KEN JONES
kensjones2002@yahoo.com

[Don1]

PNP's tax promise hollow

Published: Wednesday | September 22, 2010




THE EDITOR, Sir: THE OPPOSITION'S promise of tax breaks for business sounds hollow when you consider the dim state of the economy it left three years ago, the even darker state in which the People's National Party (PNP) says it now is, and the prospect of utter ruin that it envisages at the end of the present government's term. If this situation be true, then where will a new PNP government find resources to afford tax breaks?
According to Gleaner records for 2007-08, Mr Davies "... presented a deficit for the fiscal year (excluding debt amortisation of $102 billion), which appears to be close to $37 billion." And he said, "In a deficit target of 4.5 per cent of GDP (gross domestic product), we require revenues and grants of $241.4 billion." Since tax breaks were not then considered nor affordable, they can be realised only if there is growth and stability, more productivity and less reliance on loans and grants. This is precisely what the PNP says is not happening; so how are we to going to get the promised tax breaks? Serious people must demand an explanation.
Lending agencies
While we are on the subject, it might be useful to recall that the present administration addressed the issue in December 2008 when it announced the re-engagement of multilateral lending agencies such as the World Bank and Inter-American Development Bank, to gain access to longer term loans at a lower interest rate cost. These efforts resulted in the government securing US$350 million, with further plans to receive an additional US$600 million by the end of the fiscal term in March 2009.
There was also the plan to provide $350 million for small- and medium-size businesses via the Jamaica National Small Business Loans Ltd; $150 million for lending to small businesses through the Jamaica Business Develop-ment Centre at a 10 per cent rate; $150 million at a similar rate to credit unions for similar type lending. A mandatory 15 per cent of total procurement offered by government agencies was said to be reserved for small businesses and microenterprises.
Serious people must insist on and ensure that the present administration live up to the flesh and bone of this promise before thinking about a shadowy promise that says nothing about how it is to be achieved.
I am, etc.,
KEN JONES
kensjones2002@yahoo.com

Notwithstanding his decided JLP sycophancy...Ken Jones makes very salient points here

[Willi]

Farquharson (sp?) institute is a PNP founded institute that bruk whey when they could no llonger take the foolishness.

[Assasin]

so wait, what if the man support a party? As you say the point is what matter.

[Willi]

Jones always on point.

[Don1]

The Opposition People's National Party (PNP) has indicated that it will be focusing more on stimulating domestic investments when it forms the next government in Jamaica.

Senator Mark Golding, the party’s spokesman on industry and commerce, told journalists today that the PNP's new economic frontier aims to reverse the levels of stagnation now present in the economy.
Golding says a PNP government will place the development of Micro Small and Medium-sized Enterprises (MSMEs) at the forefront of its political affairs.

According to him, in order for Jamaica to grow these businesses, they must have an environment in which to survive.
On Sunday, PNP president Portia Simpson Miller told the public session of the party's 72nd annual conference that businesses could benefit from a five-year tax holiday as an incentive to encourage investment.
And Golding says the tax-break being contemplated would have to be agreed on by the multilateral agencies.

He also said that one of the criteria for benefiting from the tax holiday would be job creation.
The governing Jamaica Labour Party (JLP) attempted to introduce a tax break incentive scheme in the tourism sector but was told by the multilaterals to put it on hold.

http://go-jamaica.com/news/read_article.php?id=22763

No one can argue that MSME business development is a primary interest to any country....but it is disingenuous or perhaps merely a flaw in this so called policy that the authors don't explain how they will address the primary impediments to the sector:

1. A ridiculously cumbersome taxation system with multiple layers of inefficient, costly govt administration....how will this be simplified and improved? When will it be simple & affordable to start and operate a small business? ...since it's not people opt for the underground economy in droves...maybe 40% or so of output is underground and unrecorded...and untaxed.

Time to bring more above ground..

2. High cost of funds... after promoting a deflationary, high interest rate regime for a long time.. is the PNP switching to a different model? One Turd is thankfully already on track with that with the JDX paradigm shift & low cost multilateral funding. Is the PNP now a convert to that model or do they have their own?

3. Low savings rate.... what strategies to improve this. Without increased savings there will be little surplus for investments.... maybe credit unions should be further incentivized to generate more savings

4. Technology... how will access to appropriate technology & training be improved? Will we have an industrial policy with the GOJ picking & incentivizing different sectors? ...for example software development, or Computer Aided Design & Engineering outsourced from the US or Europe?

5. Security

6. Utility costs


Perhaps this is a mere outline and the complete PNP "economic plan" has fleshed out these and other issues....but Omar should not be actively involved imho...in Jamaica's economic program absent some major mea culpa from him..... he has zero developmental credibility and people will not believe in his prescriptions

A new PNP economic team should be installed...and hard questions asked of them

[Don1]

Jones always on point.

nope...his sycophancy many times gets the better of him...witness his craven defence of the regime & Gelding over their protection of the narco criminal/Manatt issue

[Don1]

so wait, what if the man support a party? As you say the point is what matter.

LoL!

That was my point...thanks for the (unnecessary) reiteration

[Willi]

Good questions.

Wither the "Progressive Agenda" or is that stillborn?

[Don1]

Problem: An agenda for Progress cannot be executed by the unprogressive & myopic