Mario James, Gleaner Writer

Kent LaCroix, who was re-elected Automobile Dealers' Association (ADA) chairman on July 29, and has held the post since 2003, said that one of his mandates for this term is to improve communication between the auto dealers and the Ministry of Finance. He said that this move is a priority.

"I am striving to make meaningful dialogue on a timely basis," he said, speaking with Automotives.

The chairman said that the lack of effective communication with the ministry was a challenge that had posed serious problems to the industry.

More involved

"[In] many instances, things happen, changes are made ... and we are not necessarily involved. When they are made, we have to become involved ... sometimes these changes are not in the best interest of the industry," he said.

The chairman also hinted that the industry might be in for even tougher times, with the Government's intention to re-establish an arrangement with the International Monetary Fund (IMF).

"Nothing has been mentioned to us [the ADA] as it relates to any type of restrictions that may be imposed, should we go to theIMF," LaCroix said.

"I don't think that any of us are of the opinion that it will be business as usual. The whole industry has been reduced dramatically, and what we are going to have to do is try to do our best to diversify," he added.

Tax relaxation

Also comprising the board is re-elected Major Greg Webster, managing director of Fidelity, and Howard Foster, marketing manager of Toyota Jamaica.

Recently, representatives of the ADA met with Prime Minister Bruce Golding and Finance Minister AudleyShaw in a bid to request the Government's relaxationof the special consumptiontax on motor vehicleimports.

With the IMF's proposed injection of US$1.2 billion into the Jamaican economy, some dealers are bracing for the effect it may have on the industry.

Quota system

Gregory Robinson, owner and operator of Auto Impressions, feel that some restrictions may take place.

"A quota system will probably be implemented; such a system could look quite viable to the powers that be right now. It is a system that they probably have infrastructure for, as it was in place during the '80s," he said.

Ricky Geourzoung, sales manager at Fidelity Auto Sales, puts a different spin on the situation.

"If interest rates fall, there is the possibility that the dollar could slide if [consumers] don't have the confidence in the economy to provide them with foreign exchange. They might want to hoard dollars, and spending might contract," he said.

When asked if he thinks there would be a change in the tax structure as it affects motor cars, Geourzoung theorised that if such was the case it would be in the short term.

"If it changes, it would be a temporary thing ... it would not be applied for an extended period."

Efforts to get a comment from the Ministry of Finance were usuccessful.

mario.james@gleanerjm.com