Golding on Sunday revealed a raft of measures aimed at limiting ripple effects on Jamaica of a global economic downturn.

The manufacturers' group praised the prime minister for the institution of a mandatory reserve of 15 per cent of government agency contracts, for local stakeholders.

"The JMA has over the years lobbied for the implementation of the procurement policy, and is therefore pleased that the Government has decided to strengthen its linkages with manufacturers, by reserving 15 per cent of their total procurement for small business and micro-enterprises, and giving preference to locally-owned companies quoting within a 10 per cent price differential," the release stated.

Leading by example

"This is a clear signal of leading by example, to buy Jamaican and build Jamaica. The implementation of this policy will ensure that the contracts for the printing of our primary-school textbooks are granted to Jamaican printeries," the statement continued.

The Government's decision to scrap the two per cent customs user fee on capital equipment and raw materials also won plaudits from the JMA, which said the move would give greater breathing space for businesses with payroll challenges.

The manufacturers' lobby also said that the US$300-million credit facility with the Inter-American Development Bank, and other boosters to small and medium business, would help to shield the Jamaican economy.

Step in the right direction

"The JMA believes that these initiatives are a step in the right direction and timely in light of the current world economic situation, which has threatened job security and the livelihood of manufacturers," the release read. "It is also indicative of the Government's commitment to job and wealth creation through the development of industry.

The Wisynco Group, a local manufacturer of plastic and foam products, has also welcomed the relief package.

William Mahfood, managing director of the Wisynco Group, said he expected the measures to have an immediate impact on industries, specifically manufacturing. The lifeline should shore up investor confidence and provide well-needed funds to capitalise anaemic businesses, he said.

While welcoming the relief package, Mahfood urged the Government to rein in the value of the Jamaican dollar.

"We must caution the Government that the level of confidence these measures will bring back to the various sectors in the short term will be quickly eroded by any further devaluation of the Jamaican dollar.

"It is, therefore, imperative that whatever measures are necessary to ensure stability in the currency be put in place," the Wisynco boss said, in a release Monday.

Currency clobbered

Gains from plunging world oil prices, which have resulted in a more than 30 per cent drop in fuel costs and a 15 per cent dip in electricity rates in Jamaica, have been largely undercut by the skidding dollar. The currency has been clobbered by the 'greenback' over the last six weeks, losing 10 per cent in value, and is heading perilously close to the $80 mark.

Mahfood was upbeat, though, that the concessionary measures would help jump-start limping industries, specifically manufacturing. The lifeline should shore up investor confidence and provide well-needed funds to capitalise anaemic businesses, he said.

Wisynco also announced that it would be slashing the prices of its key products, in solidarity with the Government's bid to cushion hard-hit consumers. The company said the reductions would take effect immediately.