Tweet
BY balford henry Observer writer balfordh@jamaicaobserver.com
Wednesday, April 18, 2007
Opposition spokesman on finance and the public service, Audley Shaw, yesterday laid out the Jamaica Labour Party's (JLP's) economic and social agenda which, he said, would deliver economic growth of six to 10 per cent over the medium to long term if the party is elected to run the country after the next elections.
In a wide ranging speech lasting over two hours and clearly predicting an early general election, Shaw accused the Government and, especially, Finance Minister Dr Omar Davies, of failing to create an appropriate business environment and offered what he termed "a clear alternative".
Shaw said that he had "clearly demonstrated" that Jamaica's problems can be traced back to "a gradual reduction in productivity and growth over the past 18 years, and offered the JLP's plan for:
. increased borrowing from multilateral agencies, instead of commercial banks;
. an audit of the public sector to advise on the elimination of loss-bearing entities and the divestment of profitable ones;
. exploring the possibility of issuing diaspora bonds to attract investments from Jamaicans overseas;
. reforming the tax system to include the merging of National Housing Trust, National Insurance Scheme and the HEART Trust into a single social security tax, which would also incorporate the National Health Fund in an effort to protect Jamaicans who are unable to meet health costs;
. reduction of stamp duties and transfer taxes on land transactions, as well as the elimination of estate duties (death tax) to encourage dynamism in residential and commercial property transactions;
. merging JAMPRO with the Development Bank of Jamaica to create an economic development agency that can cut red tape and facilitate speedy start-ups and expansions in the business sector;
. a comprehensive customs modernisation programme;
. an agricultural revolution; and
. the pursuit of a strategy to make Jamaica the financial services centre of the Caribbean, headquartered in downtown Kingston.
Shaw said that in terms of debt management, the JLP has developed a holistic strategy to reduce the impact of the debt burden, which includes fiscal measures as well as legal and alternative policies.
Among the measures were: imposing constitutional limits on borrowing; securing lending from multilateral agencies on Jamaica's terms; using the proceeds of the PetroCaribe agreement to pay down debt; securing a partnership with the private sector on debt and interest rate reduction; and securing foreign currency fiscal revenue.
He said that a "credible energy policy" would be revealed by the Opposition's spokesman on mining, energy and telecommunications, Clive Mullings, when he speaks in the debate this afternoon.
On tax reform, he said that the JLP was in favour of reducing corporate income tax, in line with personal income taxes, and over time reduce them further to stimulate investment and savings.
"In order to do this, we believe reform must focus on two areas: the simplification of the tax system and the expansion of the tax net," he said.
Turning to investment promotion, Shaw said that the JLPs would: streamline tax and customs bureaucracy to stimulate investment and exports; tailor incentives specifically to meet business needs; facilitate the expansion of venture capital financing; focus on business process outsourcing; diversify the tourism sector; create an agricultural revolution; expand research capacity; and increase micro-enterprise credit.
"In all of this, the objective of good governance will be restored where the government will serve in the best interest of the people," he said.
Wednesday, April 18, 2007
Opposition spokesman on finance and the public service, Audley Shaw, yesterday laid out the Jamaica Labour Party's (JLP's) economic and social agenda which, he said, would deliver economic growth of six to 10 per cent over the medium to long term if the party is elected to run the country after the next elections.
In a wide ranging speech lasting over two hours and clearly predicting an early general election, Shaw accused the Government and, especially, Finance Minister Dr Omar Davies, of failing to create an appropriate business environment and offered what he termed "a clear alternative".
Shaw said that he had "clearly demonstrated" that Jamaica's problems can be traced back to "a gradual reduction in productivity and growth over the past 18 years, and offered the JLP's plan for:
. increased borrowing from multilateral agencies, instead of commercial banks;
. an audit of the public sector to advise on the elimination of loss-bearing entities and the divestment of profitable ones;
. exploring the possibility of issuing diaspora bonds to attract investments from Jamaicans overseas;
. reforming the tax system to include the merging of National Housing Trust, National Insurance Scheme and the HEART Trust into a single social security tax, which would also incorporate the National Health Fund in an effort to protect Jamaicans who are unable to meet health costs;
. reduction of stamp duties and transfer taxes on land transactions, as well as the elimination of estate duties (death tax) to encourage dynamism in residential and commercial property transactions;
. merging JAMPRO with the Development Bank of Jamaica to create an economic development agency that can cut red tape and facilitate speedy start-ups and expansions in the business sector;
. a comprehensive customs modernisation programme;
. an agricultural revolution; and
. the pursuit of a strategy to make Jamaica the financial services centre of the Caribbean, headquartered in downtown Kingston.
Shaw said that in terms of debt management, the JLP has developed a holistic strategy to reduce the impact of the debt burden, which includes fiscal measures as well as legal and alternative policies.
Among the measures were: imposing constitutional limits on borrowing; securing lending from multilateral agencies on Jamaica's terms; using the proceeds of the PetroCaribe agreement to pay down debt; securing a partnership with the private sector on debt and interest rate reduction; and securing foreign currency fiscal revenue.
He said that a "credible energy policy" would be revealed by the Opposition's spokesman on mining, energy and telecommunications, Clive Mullings, when he speaks in the debate this afternoon.
On tax reform, he said that the JLP was in favour of reducing corporate income tax, in line with personal income taxes, and over time reduce them further to stimulate investment and savings.
"In order to do this, we believe reform must focus on two areas: the simplification of the tax system and the expansion of the tax net," he said.
Turning to investment promotion, Shaw said that the JLPs would: streamline tax and customs bureaucracy to stimulate investment and exports; tailor incentives specifically to meet business needs; facilitate the expansion of venture capital financing; focus on business process outsourcing; diversify the tourism sector; create an agricultural revolution; expand research capacity; and increase micro-enterprise credit.
"In all of this, the objective of good governance will be restored where the government will serve in the best interest of the people," he said.
Comment