Far be it for me to seek to interrupt the very important activities of very busy, important people. But the Jamaican taxpayer is entitled to and should demand an answer to the very simple questions, "How did my asset in Clarendon Alumina Production (CAP) that was worth some US$500 million 15 years ago, in which I have invested a further approximately US$400 million, come to be worth a negative US$250 million, or thereabouts, today? Does it mean I have suffered a capital loss of over US$1billion?".

This situation existed before the start of the current global economic crisis and cannot be blamed on it. No amount of name-calling or groundless imputations of motives of spite and malevolence can disguise the fact that the public has the right to know; and those entrusted with the stewardship of these assets have a duty to respond.

Dr Carlton Davis' letter to the editor on Sunday, March 1, 2009, in response to my recent articles, 'A Lost Birthright' and 'Wasting the People's Capital', which addressed the appropriate use of publicly owned assets for national development and which used as an example the destruction of value in the alumina assets controlled by Government, exemplifies precisely my point that "the institutional edifice presiding over Government's interest in the sector has long been a sacred cow that brooks neither questioning nor criticism".

Infused as it was with vitriol and personal insult, the letter was clearly designed to obfuscate, not elucidate, the critical issue of the waste of the people's capital. Not only is Dr Davis' response riddled with red herrings, but it completely misrepresents the facts.

Misrepresentations

One glaring misrepresentation is that my assertion that Government was ill-advised not to have set prices for 2009 earlier in 2008 was based on predictive powers. I specifically pointed out in my article, 'Wasting the People's Capital', that my position was based on the actual pricing trends on the futures market, which, I assert, should have guided the Government's price-setting decisions, not predictions I had made. Others were relying on predictions, and it is that which I criticised.

A second misrepresentation relates to the communication between the managing director of the Bauxite Trading Company (BATCO), Dr Davis and me, regarding an attempt to start a renegotiation of prices with Glencore in late October, 2008. My simple advice to the MD and caution to Dr Davis was not to approach the matter with the bullying attitude which Dr Davis seemed to have been pushing the BATCO MD towards, lest we were perceived as being less than respectful of contracts. Also, with the appointment of a new board expected within a week that they allow the board to advise on these negotiations or, should time be an issue, request the new minister's guidance. Perhaps Dr Davis considers that his superior reasoning on the matter ought to have outweighed any views that either the new board or the minister might have had.

Except for the factual correction above, I have to date, unlike Dr Davis, carefully avoided revealing anything that is not already or should not properly be in the public domain and hope that I will be allowed to continue to do so. I do not intend at present to respond further to Dr Davis' letter, which, in addition to not responding to the central issues raised in my articles, contained nothing of substance. I intend instead to await the impending treatise on the subject, which Dr Davis has indicated will be forthcoming. At that time, it might become necessary to reveal details I have so far refrained from mentioning.

Heartened

My article of November 30, 2008, titled, 'Jamaica and the global financial crisis', spoke to the circumstances which would be likely to confront the local alumina sector as a consequence of the global financial crisis. The article stated: "The substantial erosion of confidence and consequent contraction of consumer demand in the US will lead to a major slowdown in global economic activities. The frenetic pace of industrial expansion in the emerging markets, which was the main driving force behind the increase in demand for and price of all hard commodities including aluminium, has already begun to slow. Several smelters are likely to close and closure of the least-competitive alumina plants will follow. Unfortunately, at least two of Jamaica's alumina plants fall into that category and are clearly in jeopardy."

I am saddened that my analysis has in fact proven correct and the plants are indeed closing, but am heartened by the news that the Government will be embarking on a mission to find alternative markets for the product to lessen the resultant loss of government revenue.

Hopefully, the Jamaica Bauxite Institute, of which Dr Davis is chairman and which is responsible for monitoring and studying the aluminium industry, was sufficiently alert to the likelihood of these closures to have given itself and the Government enough time and information to plan a workable strategy for the Government to have a reasonable chance of success.

Issue at hand

There is no doubt that Dr Davis possesses vast knowledge of the history and technical details of this very important industry. This has never been in question. What is at issue here is the commercial stewardship of a valuable national asset and the public's right to be kept informed on its health and performance, just like any shareholder in an enterprise.

Let me hope that my point, that Government should avoid being involved in owning and running commercial businesses - except where strategically essential - and instead focus on investing in infrastructure for national development, is not lost in this kerfuffle on which Dr Davis seems prepared to embark.

Claude Clarke is a former trade minister and manufacturer. Feedback may be sent to columns@gleanerjm.com.