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Address by
Prime Minister the Most Hon P.J. Patterson
Jamaica Manufacturers' Association
37th Annual Awards Banquet
Jamaica Pegasus Hotel
Thursday, May 19, 2005
Salutations.
Early career in 1960 led to joining the staff of the European
offices of the Jamaica Industrial Development Corporation
(JIDC).)
• Harry Dayes - Chairman
• Charlie Braham - General Manager
I had a strong belief in its mandate of promoting what was
then our fledgling manufacturing sector.
JIDC in London - personalities involved.
• Mayer Mata/on
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When in 1972, I was appointed the Minister of Industry and
Tourism, I felt a sense of pursuing a path which would allow
me to fulfill some of my earlier dreams.
I was succeeding Ministerial legends such as Hon. Wills
Isaacs and Hon. Robert Lightbourne
• Charles Henderson Davis
It has been a long and exciting journey. One that, like so
much of my political and indeed my legal career, has been
challenging... but by now you know I am stimulated by
challenges!
• Carroll Dacosta/ Cecil Abrahams
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In representing the interests of the manufacturing sector
and the productive sector in general, I have had some truly
memorable interaction with a wide range of personalities
both here at home and in the large number of international
fora I have attended and contributed to across the globe.
My fellow travelers at the beginning of the journey were a
pioneering group of business persons determined to create a
local manufacturing sector, despite a history which relegated
us to being a permanent market for goods from overseas
manufacturing companies.
• Vin Bennete Aaron Mata/on/ Ray Hadeed, Chris Morin/
Tom Desulme/ Edwin WinC Mable Tenn/ George
Holness/ Paulette Rhoden/ Barclay Ewart
• Government Officials: Herbert Walker✓ Don Brice/
Frank Francis/ Alfred Rattray
• Carroll Dacosta/ Cecil Abrahams
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Many of the older pioneers have gone on to another plane
but their foundation stands firm. The new players, the
inheritors of their legacy, share many of the attributes of
those pioneers including a strong spirit of entrepreneurship,
a determination to succeed and faith in their homeland.
Throughout the years, we have traversed the path of
protectionism, state incentives and export industry
encouragement. We have passed through extended tracts
where the emphasis has been on the creation of industrial
estates and the provision of concessionary fiscal and tariff
incentives.
As the climate changed dramatically, we had to adapt as the
world turned away from state support and preference-driven
external markets to the age of globalisation .
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It was at the beginning of this phase that I assumed the
mantle of Prime Minister thirteen years ago. Once again, I
became intimately involved and engaged with the fortunes
and progress of the manufacturing sector at a critical
juncture in its development.
Within the context of the rapidly changing domestic and
global environment, there had to be a virtual sea-change.
Gone were the days of protectionism, import licensing, price
controls and foreign exchange restrictions. We had to
fashion policies for promoting growth and diversification of
production.
Those in the manufacturing sector who were among the
most directly affected by increased competition and loss of
markets, understandably protested. They insisted that the
State should do something to protect them. This demand
came even as the forces of global change were reducing the
capacity of the State itself to act unilaterally .
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At times, it appeared to be mission impossible, but the
change had to come. The National Industrial Policy,
launched in 1996, managed to provide, and still remains, a
valuable and comprehensive compass in guiding us toward
competitiveness, based on retooled and transformed
businesses and new technologies. Most importantly, there
has emerged a new appreciation of the reality of the world
of this twenty-first century in which we must find our own
path to prosperity.
We needed to communicate constantly and more effectively
with each other, and in the course of doing so we forged a
more workable and creative partnership. The Sector has
now accepted that painful, but necessary adjustments, were
both urgent and imperative.
We had to give up plants and industries that were no longer
competitive; products that were no longer wanted by the
market. We had to set about creating new industries; we
had to build new sources of competitive advantage .
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We moved as swiftly as we could to adopt the appropriate
policy measures and give the necessary incentives to
investors to transform existing businesses by adopting new
technologies to enhance international competitiveness.
In due course, after much anguish and fear, people began to
realise that the changes were global in nature and
irreversible. With Jamaican adaptability and resilience, it is
safe to say that we are back on track.
Once the level of understanding of the new environment
was achieved, the JMA became, and still remains, a leading
proponent of the new attitudes and new approaches that
must be adopted in overcoming the constraints that have so
far delayed the renaissance of manufacturing in Jamaica .
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The organization has rallied its members to shape a common
vision for the sector, aggressively lobbying both government
and the_private sector in key policy areas. It is winning back
the support and confidence of our people in the ability of
Jamaican products to satisfy the demands of consumers
both domestically and internationally.
In late 2003, the JMA sought the support of the government
for a stimulus package for small and medium size
businesses. It included a request for a financial facility for
market research, and customer outreach initiatives, and
research and development.
It has taken some time. However, the government with
assistance from the European Union, has now been able to
put together a major private sector development programme
valued at EURO 28.7 Million, or J$ 2.2 Billion, which will
provide assistance in a number of areas .
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We expect the JMA to play a lead role in the management of
the programme and ensure that your members can benefit
fully from the assistance that it will provide.
From May 31 to the end of July, private sector groups,
including the Small Business Association and the JMA will be
invited to submit proposals for assistance under the
programme. This will take the form of financing for market
studies, workforce training, business re-organisation as well
as preparation of business and financing plans.
The JMA itself can also get assistance for upgrading your
systems to better serve your membership. To achieve
competitiveness, we have not only to improve our physical
facilities but more importantly transform our management
practices, upgrade the skill and productivity of our workforce
at all levels. Of critical importance also are market
intelligence and quality standards. This particular
programme has been specifically designed to address the
deficiencies in these aspects of our production systems .
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2005 is a year of transition globally as well as on the
domestic front. A new generation of leaders is emerging at
the national and organizational levels as different situations
and challenges come to the fore. So do exciting
opportunities.
The CSME opens a much larger market - more than twice
our size in terms of population and a much greater
proportion in terms of purchasing power for our producers
and providers of services.
The massive construction now in progress with new hotels,
infrastructure works and bauxite expansion offers
considerable prospects for business expansion.
Next month, I intend to pay an official visit to China. My
delegation will include a number of private sector
representatives who will pursue specific business initiatives
which were identified in . the various memoranda of
understanding which were signed during the recent visit of
the Vice President of China .
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Today, we see evidence of a clearer way ahead, as we
consolidate and build on the macro-economic stability by
and large achieved. Interest rates have admittedly been an
inhibiting factor and the Government has taken the lead by a
gradual reduction of the BOJ rates consistent with prudent
economic management. We have lowered considerably the
cash reserve requirement.
Market forces must now work to ensure that the benefits are
passed on to borrowers. I doubt whether your President
needs any political voice to be engaged in the debate with
another Group in the Private Sector as to the benefits which
could accrue to all, including the Commercial Banks, were
we to see a lowering of interest rates for those involved in
production and export.
The unprecedented infrastructural development, the
emphasis on an enhanced investment climate, and the plan
of action for improved educational output in our country are
all designed to drive economic growth, and provide
increased opportunities for individual entities within the
manufacturing and other critical sectors .
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This is clear evidence that we have made great progress in
revising our routes in response to the demand for open
economies. We are much better placed to compete in the
face of the unrelenting process of liberalization, deregulation
and globalization.
In these and all our efforts in respect of a development
strategy for manufacturing, I have been greatly heartened
by the level of collaboration and consensus that has
characterized my relationship with the sector and the JMA.
The strengthening of synergies between key institutions in
both the public and private sectors, the development of
financial loan programmes and technical assistance
programmes, education, training, research and development
are all critical to our success. We must re-double our efforts
in all these areas. They are vital as we continue to facilitate
productivity and expansion in our manufacturing sector,
improvement in international competitiveness and enhanced
contribution by the sector to national development.
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Before closing, I must commend the JMA for their
demonstration of social responsibility through outreach
programmes that assist our inner city communities,
particularly our youth. Your existing and planned assistance
in the physical facilities of the Police Force is also a welcome
and much needed initiative for which the nation is grateful.
There is no more deserving cause in our current
environment.
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CONCLUSION
I thank the Jamaica Manufacturing Association for the
honour, which you have bestowed on me this evening. Your
decision to demonstrate your thanks to me via the awarding
of a scholarship to for entrepreneurial studies at the tertiary
level demonstrates how well you understand my passionate
belief that educational opportunity is the key to social
mobility and economic prosperity for individuals and, by
extension our entire nation.
I thank the Association for the vision we have shared of
transcending historical and current constraints in the quest
to achieve consistent world-class competitiveness and a
secure niche for the Jamaican manufacturer. This is a
position that many have worked long and hard toward
achieving. It is a position on which much hinges in respect
of export-led economic growth, and the linkages that play a
vital role in job creation and poverty alleviation for the
people of our country .
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We pause tonight to look back on the road traveled, to
acknowledge achievements and to draw inspiration from
each other for continuation of the journey ahead. It is by no
means the end but a pause along the way that is indeed
refreshing and marks a new phase of our journey as we still
"have promises to keep and miles to go before we sleep'~
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