Arthur Hall, Senior Gleaner Reporter

THE NATION should know today how the Government will react to the global financial crisis which has already started to have a devastating impact on some local industries.

Prime Minister Bruce Golding will be making a broadcast to the nation this evening during which he will outline the Government's plans to help ease some of the economic pressures now facing certain critical sectors as a result of the global economic crisis.

According to Golding, some of these measures may be temporary, but they will provide a cushion to assist the critical sectors in the economy, such as tourism, manufacturing, export and small-business operators.

Met with private sector

Earlier this week, Golding met with representatives of private-sector groups, including the Jamaica Chamber of Commerce, the Jamaica Manufacturers' Association, the Jamaica Exporters' Association, the Private Sector Organisation of Jamaica, the Small Business Association and the Jamaica Bankers' Association.

The prime minister was accompanied by Minister of Finance Audley Shaw and ministers without portfolio in the Ministry of Finance and the Public Service, Dwight Nelson and Don Wehby, as he sought to assure the productive sector that they would not be left hanging.

Outlining concerns

The meeting was requested by the private-sector agencies to outline their growing concern with the effects of the global crisis on their operations, the impact of increases in interest rates, and the instability in the foreign-exchange market.

With the fiscal constraints facing the administration, Golding has already made it clear that the Government would not be providing bailouts to the sectors.

However, he promised that his administration would be placing emphasis on projects that are not necessarily sensitive to the global situation, as well as putting in place measures to ensure that sectors, such as the bauxite industry, do not succumb to threats of closure.

Layoffs in tourist sector

Already, one of the island's leading hotel chains, Sandal Resorts, has announced that it will be laying off 650 workers because of the financial meltdown.

Other hotels are expected to also lay off workers, while some smaller properties could close their doors.

Outside of tourism, job cuts are expected in some industries, including bauxite, media and manufacturing.

This has prompted labour minister Pearnel Charles to warn that hundreds and possibly thousands of jobs could be lost.

Charles has already initiated talks with the trade unions and employers in an effort to minimise the impact.

However, with the global crisis not expected to ease before 2010, more Jamaican workers could find themselves looking for jobs.

arthur.hall@gleanerjm.com