THE JAMAICA Agricultural Society (JAS) says that it has been promised some $12 million in subventions owed by the Ministry of Finance.
Patrick N. Anderson, Chief Executive Officer of the JAS, told The Gleaner on Wednesday that he has been informed by the Ministry of Agriculture that the Finance Ministry has the payment of the overdue subventions.
However, he said, the JAS had not yet received a written commitment to this effect.
According to Mr. Anderson, the backlog was the result of a shortfall in annual subventions for six consecutive years. He said that except for 2002, the Ministry (of Agriculture) has been "inconsistent in paying its subvention to the JAS" for almost a decade. As a result, he said the JAS was only able to pay the salaries of its administrative staff and fund other administrative expenses, for the six years in question, during which time the society's statutory deductions accumulated.
With the $12 million owed in subventions, the JAS would be able to clear its statutory deduction bill but, even then, the society would still be indebted, as it is yet to repay a $5 million loan received from a local financial institution five years ago.
According to the CEO, the loan was used to finance development projects of the society as well as to assist with the staging of the Denbigh Agricultural Show.
He said, however, that given the fact that the loan has accrued interest, the outstanding amount now stands at approximately $12 million.
The JAS earns its revenues from government subventions as well as from commercial activities, such as the operation of farm stores. Mr. Anderson said, at the moment, the only alternative was for the JAS to sell a portion of land in Westmoreland to repay the loan. But, he said, the land is currently being used as the base for one of the society's development projects.
As a result, it might take another three years before the Society would be able to pay off the loan.
According to Mr. Anderson, the JAS is currently undergoing a strengthening programme, which is expected to be completed at the end of three years. At end of the programme, he said, the JAS should be able to raise more revenues from its commercial entities, which would be used to finance the loan.
