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....while growing the economy
Dennise Williams
Friday, October 05, 2007
SHAW... all public sector workers are servants of Jamaica and we need to serve them well
Newly appointed Minister of Finance, Audley Shaw put investors on notice that he will enact promises outlined in the Jamaica Labour Party's campaign manifesto aimed at growing the economy by six to eight per cent while simultaneously collecting $10 billion to $20 billion in new taxes.
Speaking at the Century 21 Heave Ho Properties real estate seminar at the Hilton Hotel last week, Shaw stated that, "For every one per cent the economy grows, the tax revenue grows by J$2 billion. We will be expanding the economic pie for everyone through an investment promotion. It is not just about gimme."
Get to work
The finance minister said that it is time to stop taking about problems but to get to work finding solutions.
"Previously, the lack of economic growth was blamed on world oil prices, the World Bank and the various hurricanes." Shaw continued, "I say to you that other countries have similar problems but they are able to grow. They are not sitting around waiting for the next problem. They are getting to work."
Reduce debt to reduce interest rates
Despite interest rates increasing from 12 per cent to 14.40 per cent over the past four weeks, Shaw says that his ministry will eventually slash interest rates by lowering the debt burden. Ministry of Finance data shows that at the end of June, the national debt stood at $920 billion.
"Our debt problem is an albatross around our neck," Shaw stated. "While I cannot give details at this point, our debt reduction plan will lead to a reduction in interest rates. They are fundamentally interlinked."
JPS put on notice
Aside from the debt reduction plan, Shaw will be tackling what he termed, "the inequitious energy policy" that makes Jamaica uncompetitive compared to its Caribbean neighbours. "We have served notice on the new owners of the Jamaica Public Service (JPS), Mirabuni Corporation, that they must install new technology to expand the generating capacity," Shaw stated.
"Even if the new technology is expensive to install, it must be efficient and cheap to operate. This is how the country will pay less for its electricity usage." The finance minister spoke out against the previous owners of JPS. "Mirant did the opposite. They put in cheap equipment that was expensive to operate. Then they convinced the previous admininstration to grant them the right to bill us for all their inputs - the oil, the exchange rate and other operating costs."
"The result? Our light bills become more expensive then our mortgages," Shaw informed the audience.
Civil servants beware
Shaw announced that the civil service was going to facilitate economic growth. "We put the public sector on notice. All public sector workers are servants of Jamaica and we need to serve them well."
And addressing fears that there would be widescale layoffs, Shaw stated, "We are not on a witchhunt. We are just auditing the services to see how to get efficiency, growth and a better life of peace and prosperity for our citizens."
Expanding the mortgage market
In addition to the elimination of the transfer tax and the reduction of stamp duty on real estate transactions, Shaw stated that Jamaica will be developing its secondary mortgage market. "This will expand mortgage financing and providing more housing solutions." He further explained, "Look at the housing stock - look at the quality. People blame hurricanes on the poor infrastructure in very depressed areas, but I say it is a manifestation of the lack of growth. We will help expand the housing sector, which will create jobs and help the economy grow."
Exhale
To his detractors, Shaw had this statement. "People are saying that I can't run the Ministry of Finance.To them, I say, don't hold your breath."
Dennise Williams
Friday, October 05, 2007
SHAW... all public sector workers are servants of Jamaica and we need to serve them well
Newly appointed Minister of Finance, Audley Shaw put investors on notice that he will enact promises outlined in the Jamaica Labour Party's campaign manifesto aimed at growing the economy by six to eight per cent while simultaneously collecting $10 billion to $20 billion in new taxes.
Speaking at the Century 21 Heave Ho Properties real estate seminar at the Hilton Hotel last week, Shaw stated that, "For every one per cent the economy grows, the tax revenue grows by J$2 billion. We will be expanding the economic pie for everyone through an investment promotion. It is not just about gimme."
Get to work
The finance minister said that it is time to stop taking about problems but to get to work finding solutions.
"Previously, the lack of economic growth was blamed on world oil prices, the World Bank and the various hurricanes." Shaw continued, "I say to you that other countries have similar problems but they are able to grow. They are not sitting around waiting for the next problem. They are getting to work."
Reduce debt to reduce interest rates
Despite interest rates increasing from 12 per cent to 14.40 per cent over the past four weeks, Shaw says that his ministry will eventually slash interest rates by lowering the debt burden. Ministry of Finance data shows that at the end of June, the national debt stood at $920 billion.
"Our debt problem is an albatross around our neck," Shaw stated. "While I cannot give details at this point, our debt reduction plan will lead to a reduction in interest rates. They are fundamentally interlinked."
JPS put on notice
Aside from the debt reduction plan, Shaw will be tackling what he termed, "the inequitious energy policy" that makes Jamaica uncompetitive compared to its Caribbean neighbours. "We have served notice on the new owners of the Jamaica Public Service (JPS), Mirabuni Corporation, that they must install new technology to expand the generating capacity," Shaw stated.
"Even if the new technology is expensive to install, it must be efficient and cheap to operate. This is how the country will pay less for its electricity usage." The finance minister spoke out against the previous owners of JPS. "Mirant did the opposite. They put in cheap equipment that was expensive to operate. Then they convinced the previous admininstration to grant them the right to bill us for all their inputs - the oil, the exchange rate and other operating costs."
"The result? Our light bills become more expensive then our mortgages," Shaw informed the audience.
Civil servants beware
Shaw announced that the civil service was going to facilitate economic growth. "We put the public sector on notice. All public sector workers are servants of Jamaica and we need to serve them well."
And addressing fears that there would be widescale layoffs, Shaw stated, "We are not on a witchhunt. We are just auditing the services to see how to get efficiency, growth and a better life of peace and prosperity for our citizens."
Expanding the mortgage market
In addition to the elimination of the transfer tax and the reduction of stamp duty on real estate transactions, Shaw stated that Jamaica will be developing its secondary mortgage market. "This will expand mortgage financing and providing more housing solutions." He further explained, "Look at the housing stock - look at the quality. People blame hurricanes on the poor infrastructure in very depressed areas, but I say it is a manifestation of the lack of growth. We will help expand the housing sector, which will create jobs and help the economy grow."
Exhale
To his detractors, Shaw had this statement. "People are saying that I can't run the Ministry of Finance.To them, I say, don't hold your breath."
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