DaviesLisa Nicely-Peterkin, Gleaner Writer
HURRICANE IVAN, according to the Minister of Finance and Planning, Dr. Omar Davies, did not seriously destabilise Jamaica's macro economy. The economy, he said, is on track for "the sixth consecutive year of positive growth."
However, the minister said preliminary estimates indicate growth decelerating to 2.3 per cent and increasing in fiscal year 2005-2006 to between 2.5 per cent and 3.0 per cent. Dr. Davies was speaking last week to Jamaicans in Toronto, Canada, at a forum on the economy sponsored by Jamaica National Building Scoiety (JNBS) and the Gleaner Company. He told the audience that the economy is looking up and spoke of the prospects of growth in sectors such as tourism, mining, information technology and infrastructure.
Tourism, he said, is bouncing back with 5,000 new rooms to be built over a three-year period, including some $600 million worth of investment by Spanish hoteliers (Iberstar, AM Resorts, Riu etc.).
GROWTH IN THE MINING SECTOR
Bauxite and alumina are driving growth in the mining sector and the Minister attributes this to new fiscal regimes, which have eliminated bauxite levies. Mr. Davies said infrastructural development such as Highway 2000 - to be opened by the end of December - are under way and information technology will get a boost with Government expenditure of US$23 million "to get Jamaica to e-readiness."
Approximately 200 Jamaicans gathered at the King Edward Hotel in downtown Toronto to hear the minister talk about the outlook for the economy. "The economy up to August was on track and ahead of projections we're going to recover (from the hurricane) we will have growth this year the medium term growth is one of the best in my times," he told The Gleaner before the presentation.
RECOVERY AND RECONSTRUCTION
The minister said the Government decided not to borrow money to fund the recovery and reconstruction after the hurricane because it intends to stick to the target of eliminating the deficit and achieving single digit inflation by the next fiscal year, although it will be "a tough balancing act."
"Debt is already high. To borrow more would throw us off track," he said. The recovery process, he said, is being funded through re-allocation of funds and grants received from external sources.
The Jamaican community in Canada has organised various hurricane relief initiatives for their homeland. At least four bank accounts have been opened in Toronto and Ottawa to accept monetary donations for the Jamaican hurricane victims. The Jamaican High Commissioner, the Jamaican Consul General, the Jamaican Canadian Association and JNBS all opened bank accounts where donors could deposit money for the hurricane victims. Dozens of events were also held, the proceeds from which, the organisers said, would be sent to Jamaica. Large amounts of clothing, food and other items were also collected and the remittance companies allowed periods of free money transfers to the affected islands.
Dr. Davies told the gathering that he would be having talks with the Canadian Government to try to ascertain the amount of remittances being made to Jamaica yearly. This is just for information, he said, and there are no plans to impose a tax on remittances. Earl Jarrett, general manager for JNBS told the audience that Jamaicans remit over $1.4 billion yearly.
SOURCE OF REMITTANCES
Canadians provide the third largest source of remittances to Jamaica. While Dr. Davies admitted that the growing crime rate is a deterrent to investment, he said that 'a good chunk' of the crime rate is domestically related and that the Minister of National Security has put in place some initiatives to deal with the crime problem.
The minister said the Government is facilitating investment by strengthening regulation; reducing bureaucracy and removing barriers to business and shortening and reducing approval for investments through its Jamaica Promotions agency.
Attendees at the function included, Toronto police chief, Julian Fantino; Jamaican High Commissioner to Toronto, Carl Marshall; Jamaican Consul General to Toronto, Vivia Betton; chairman/managing director of the Gleaner Company and chairman of Jamaica National, Oliver Clarke, and a host of other Jamaicans and friends.
