DAVIESMINISTER OF Finance and Planning, Dr. Omar Davies, has appealed to members of the private sector including the banking community and the Jamaica Exporters' Association (JEA) to work with the Government to keep prices and inflation down.
Making reference to the recent Memorandum of Understanding (MoU), which was signed with the trade unions to have a restraint on wages for public sector for the next two years, the Minister issued an invitation to members of the private sector to participate in the move for progress in the interest of the nation.
"I know that the private sector wishes to be part of that buy in and my invitation to the private sector is let us get together and work toward this national programme for expanding the economy," the Minister said.
Dr. Davies made the call while addressing members of the Private Sector Organisation of Jamaica, the JEA and the Jamaica Bankers Association at their bi-annual luncheon on Tuesday (March 2) at the Terra Nova Hotel in Kingston.
Meanwhile, Dr. Davies said that the MoU would see the Government saving between $5 billion and $6 billion for the next fiscal year.
"I think this is one of the most significant developments in recent history and it demonstrates the possibilities if we all agree that this one country is the only one we have and therefore we need to work together in building it," the Minister said.
He also told members of the private sector that he would be leading a team of Cabinet Ministers to meet with the sector to discuss a comprehensive MoU.
"Let us all identify clearly what each side must give in that process and the trade unions have indicated what is possible if everyone came to the bargaining table," he said.
Dr. Davies gave a firm commitment that the Government would bring inflation down to single digit and eliminate the fiscal deficit in fiscal year 2005/2006.
He said the Government would be doing everything in its power to reduce inflation to single digit, but noted that it needed the support of the private sector. "I think that it must be a national objective to return inflation to single digit in 04/05," he stressed.
Commenting further on the elimination of the fiscal deficit, the Finance and Planning Minister said: "We intend to adhere to the target of eliminating the fiscal deficit in fiscal year 2005/06 so essentially virtually everything, which we are doing in this new fiscal year is intended to achieve that target which I articulated a year ago, which is to bring the budget in balance by March 2006."
ISSUES TO BE CONSIDERED
He said in achieving this there were issues to be considered such as, the domestic debt, interest rates, the issue of growth and employment and maintaining investments in education and health.
Dr. Davies also disclosed that there were some positives that had emerged for the economy where Revenue and Grants up to January 2004, had increased by 28 per cent.
The Finance Minister also mentioned that up to the end of January, expenditure was $6.5 billion greater than the amount projected.
He said the Government was on target to make the primary surplus of 12 per cent. "The primary surplus is a critical indicator as to whether or not we are serious about restricting expenditure," he said.
