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No precise growth, debt forecasts in PNP manifesto
Published: Friday | December 16, 2011 2 Comments
People's National Party Chairman Robert Pickersgill (left) with chairman of the Manifesto Committee, Dr Omar Davies (centre), and General Secretary Peter Bunting following the launch of the party's 2011 policy manual at the Wyndham hotel, New Kingston, on Wednesday. - Norman Grindley/Chief Photographer
Steven Jackson, Business Reporter The Parliamentary Opposition People's National [COLOR=blue !important][COLOR=blue !important]Party[/COLOR][/COLOR] (PNP) has avoided outlining any specific growth or debt projections to underpin its economic strategies if it wins the upcoming general election, and thus does not [COLOR=blue !important][COLOR=blue !important]mirror[/COLOR][/COLOR] the traditional stance in previous policy manuals or other public statements.
In its manifesto, entitled 'People Power: Leading the Agenda for Progressive Change', the party concedes that its economic plans were constrained by the "global uncertainty and the absence of full information from the present administration about the extent of Jamaica's challenges and commitments".
The 68-page document, however, addresses how the party would steer the country out of its economic difficulties. This, the PNP said, would be predicated primarily on a new International Monetary Fund (IMF) [COLOR=blue !important][COLOR=blue !important]deal[/COLOR][/COLOR], undisclosed reductions in energy [COLOR=blue !important][COLOR=blue !important]costs[/COLOR][/COLOR] augmented by the prioritisation of a US$1.5-billion upgrade of the Petrojam oil refinery in Kingston, an effective US$100-million slash in the import bill over five years, tax reform, and a bauxite sector rebound.
The IMF deal, it said, would place emphasis on stability, growth and development, and tax reform would entail broadening the tax base. "An integral part of this reform is the broadening of the tax net and the revamping of the incentives regime as a tool to stimulate growth," the document states.
According to the manifesto, the focal point of the PNP administration would be to grow the economy, but the party outlined no projections or estimates. "We are confident that we have the right mix of policies to jump-start the economy in an environment of stable prices," it said. "These initiatives should provide the [COLOR=blue !important][COLOR=blue !important]jobs[/COLOR][/COLOR] in the numbers needed, reduce poverty levels at a more acceptable pace and improve the quality of life for our people".
The growth target set in the PNP's 2002 manifesto was two to four per cent in the medium term and six per cent thereafter. The 2007 manifesto avoided the topic, but at its launch before general election that year, the party reportedly revealed a six to seven per cent annual growth target.
Opposition spokesman on finance, Dr Peter Philips, was not reached by telephone for comment.
According to the policy manual, the overarching sectors to reposition the economy for growth would include energy as well as information and communication technology (ICT). The rapid escalation in the price of oil since 2006, the PNP argues, has adversely affected the Jamaican economy and its product competitiveness, especially within the bauxite sector.
"The re-engineering and retrofitting of the Petrojam oil refinery at an approximate cost of some US$1.5 billion will be a priority," it said. "The administration will leverage its relationship with the Venezuelan state-owned petroleum company, Petroleum of Venezuela (PDVSA), and create a joint-venture partnership to access equity and debt financing, hence preventing any need for the GOJ (Government of Jamaica) to provide a sovereign debt guarantee. A revamped refinery will also enable provision of cleaner diesel fuel at a much lower cost. It will also allow for the separation of petcoke, the cheapest fuel for electricity generation," the PNP said in the document.
According to the document, a PNP administration would stimulate local food production and thereby reduce food imports by US$20 million a year.
"The annual food import bill of US$800 million provides an indication of the possibility of simultaneously saving foreign exchange and increasing output from agro-processing activities. A conservative target of the next administration is to reduce the import bill by US$20 million per year over the next five years. At the same time, the administration will establish a formal mechanism to promote such linkages between the tourism, manufacturing and agricultural sectors," it explained.
The party outlined 18 steps to achieve full people empowerment, including the introduction of new legislation to impact positively on doing business in Jamaica, and renewing the focus on facilitating small and medium-size enterprises "which make the greatest contribution to economic growth and employment".
According to the manifesto, "The PNP is mindful of the economic challenges, both global and domestic, and recognises that there will be limited options within which to manoeuvre. However, in developing the path to domestic recovery, the PNP administration will exploit, to the fullest, its relationships with emerging economic blocs".
steven.jackson@gleanerjm.com
Published: Friday | December 16, 2011 2 Comments
People's National Party Chairman Robert Pickersgill (left) with chairman of the Manifesto Committee, Dr Omar Davies (centre), and General Secretary Peter Bunting following the launch of the party's 2011 policy manual at the Wyndham hotel, New Kingston, on Wednesday. - Norman Grindley/Chief Photographer
Steven Jackson, Business Reporter The Parliamentary Opposition People's National [COLOR=blue !important][COLOR=blue !important]Party[/COLOR][/COLOR] (PNP) has avoided outlining any specific growth or debt projections to underpin its economic strategies if it wins the upcoming general election, and thus does not [COLOR=blue !important][COLOR=blue !important]mirror[/COLOR][/COLOR] the traditional stance in previous policy manuals or other public statements.
In its manifesto, entitled 'People Power: Leading the Agenda for Progressive Change', the party concedes that its economic plans were constrained by the "global uncertainty and the absence of full information from the present administration about the extent of Jamaica's challenges and commitments".
The 68-page document, however, addresses how the party would steer the country out of its economic difficulties. This, the PNP said, would be predicated primarily on a new International Monetary Fund (IMF) [COLOR=blue !important][COLOR=blue !important]deal[/COLOR][/COLOR], undisclosed reductions in energy [COLOR=blue !important][COLOR=blue !important]costs[/COLOR][/COLOR] augmented by the prioritisation of a US$1.5-billion upgrade of the Petrojam oil refinery in Kingston, an effective US$100-million slash in the import bill over five years, tax reform, and a bauxite sector rebound.
The IMF deal, it said, would place emphasis on stability, growth and development, and tax reform would entail broadening the tax base. "An integral part of this reform is the broadening of the tax net and the revamping of the incentives regime as a tool to stimulate growth," the document states.
According to the manifesto, the focal point of the PNP administration would be to grow the economy, but the party outlined no projections or estimates. "We are confident that we have the right mix of policies to jump-start the economy in an environment of stable prices," it said. "These initiatives should provide the [COLOR=blue !important][COLOR=blue !important]jobs[/COLOR][/COLOR] in the numbers needed, reduce poverty levels at a more acceptable pace and improve the quality of life for our people".
The growth target set in the PNP's 2002 manifesto was two to four per cent in the medium term and six per cent thereafter. The 2007 manifesto avoided the topic, but at its launch before general election that year, the party reportedly revealed a six to seven per cent annual growth target.
Opposition spokesman on finance, Dr Peter Philips, was not reached by telephone for comment.
According to the policy manual, the overarching sectors to reposition the economy for growth would include energy as well as information and communication technology (ICT). The rapid escalation in the price of oil since 2006, the PNP argues, has adversely affected the Jamaican economy and its product competitiveness, especially within the bauxite sector.
"The re-engineering and retrofitting of the Petrojam oil refinery at an approximate cost of some US$1.5 billion will be a priority," it said. "The administration will leverage its relationship with the Venezuelan state-owned petroleum company, Petroleum of Venezuela (PDVSA), and create a joint-venture partnership to access equity and debt financing, hence preventing any need for the GOJ (Government of Jamaica) to provide a sovereign debt guarantee. A revamped refinery will also enable provision of cleaner diesel fuel at a much lower cost. It will also allow for the separation of petcoke, the cheapest fuel for electricity generation," the PNP said in the document.
According to the document, a PNP administration would stimulate local food production and thereby reduce food imports by US$20 million a year.
"The annual food import bill of US$800 million provides an indication of the possibility of simultaneously saving foreign exchange and increasing output from agro-processing activities. A conservative target of the next administration is to reduce the import bill by US$20 million per year over the next five years. At the same time, the administration will establish a formal mechanism to promote such linkages between the tourism, manufacturing and agricultural sectors," it explained.
The party outlined 18 steps to achieve full people empowerment, including the introduction of new legislation to impact positively on doing business in Jamaica, and renewing the focus on facilitating small and medium-size enterprises "which make the greatest contribution to economic growth and employment".
According to the manifesto, "The PNP is mindful of the economic challenges, both global and domestic, and recognises that there will be limited options within which to manoeuvre. However, in developing the path to domestic recovery, the PNP administration will exploit, to the fullest, its relationships with emerging economic blocs".
steven.jackson@gleanerjm.com
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