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Stabroek News

'I know you're hurting' - Wave of woes hits Golding government - PM cites punishing price hikes
published: Monday | November 12, 2007

Prime Minister Bruce Golding appealed last night for the nation to hold strain as his administration grapples with wide-ranging woes, including skyrocketing prices, the sliding dollar, infrastructural damage and the crime monster.

Golding, who was making his first national address since leading the Jamaica Labour Party (JLP) to power two months ago, empathised with consumers who have been feeling the pinch of rising food and fuel prices driven by the international market.

"These have been rough times for the consumer and I know that many of you are hurting," Golding said.

Oil prices have risen from US$72 to US$96 per barrel since August, more than a 33 1/3 per cent increase.

"It has had a punishing effect on us because it pushes up the price of everything: food, electricity, transportation - everything!" the Prime Minister stressed.

Golding acknowledged that his administration did not anticipate many of the challenges which have emerged since assuming office.

Since Labour broke the 18-year reign of the People's National Party (PNP), there has been a 30 per cent hike in the price of counter flour, a main ingredient in baked goods. The price of chicken meat also went up five per cent, arising from an increase in corn prices.

Meanwhile, the Prime Minister said the country was still recovering from the effects of Hurricane Dean, which has caused an estimated $23 billion in damage.

The hurricane, coupled with the recent rains, has done considerable damage to roads, homes and farms. Consequently, the price of farm products has also soared and much of the country's road infrastructure devastated.

In addressing the sliding dollar, the Prime Minister said the central bank has been trying to manage the devaluation of the Jamaican dollar and has promised stability in the foreign exchange market.

At the start of the year, it cost J$67.15 to purchase one US dollar. But the currency slipped to $70.16 by the time the JLP assumed office in September, and since then it has plunged a further $1.10 to $71.26 at the close of trading on Friday.

Golding said Jamaica's $600 million-a-day debt servicing bill was chief among the factors affecting his Government's ability to provide all the services necessary for the country.

But of all the problems confronting the country, crime, the Prime Minister said, remains the country's greatest challenge.

"One of our biggest challenges is to tackle the high crime rate. Our crime prevention, detection and apprehension capabilities are woefully inadequate. Our policing strategies will have to be more professional, scientific and better coordinated if they are to be more effective," he said.

He, however, said that $280 million has been approved to improve mobility, repair damaged police stations and provide additional protective and other equipment to enable the police to deal with crime hot spots.

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