• NOTES FOR ADDRESS BY
PRIME MINISTER,
RT. HON. P.J. PATTERSON,
P.C.,Q.C., M.P.
TO
ANNUALJMA
A WARDS CEREMONY
WYNDHAM, NEW KINGSTON
FRIDAY APRIL 28 1995
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· Salutations.
Pleasantries.
Congratulations to winners of awards.
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ti.
• As in every aspect of this changing
world in which we live, the
requirements for engaging in successful
manufacturing enterprises are vastly
different from the ones that obtained
when our local sector was born.
But while the formula for success may
have radically altered, this sector
remains vital to overall national
development objectives.
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• What is the environment in which you
are doing business today? Like every
sector of our society, the
manufacturing sector is oblige to adjust
to the demands of a market-driven
economy. The extent and speed by
which you make the adjustment to
these changes will determine your
success in maintaining your position as
one of the major sectors of the
economy.
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There is no longer any question that
the sound fiscal and monetary policies
which my Administration has faithfully
implemented now provide the stability
which forms a solid foundation for
investment and its consequent benefits.
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If the private sector is the real engine
of growth, it cannot expect the
Government to provide the camshaft,
the carburettor, the spark plugs and
the gear box! My Administration is
f oily conscious of the role of
Government as facilitator. What we
need is not no Government, as the
most extreme of our critics will argue,
or less Government but rather more
effective Government. That we are
providing.
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It is this principle that has guided my
Administration as we have assiduously
undertaken the task of upgrading and
modernising financial legislation as well
as carrying out a tax reform
programme which is still in progress.
Equally importantly, this
Administration has initiated and
maintained a programme of
participation and constant dialogue
with the people at all levels and in all
sectors that is unprecedented.
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It is through this process of
consultation and consensus that we will
best ensure the creativity, the
entrepreneurial spirit, the marriage of
experience and wisdom and new ideas
required for the development of the
policies and programmes to move the
country forward and enable us to
realise our full potential as a people.
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'
It is this approach which is being
applied as we continue to take a hard
look at how we are doing busines~ in
order to enable the manufacturing
sector to take its rightful place in an
export-oriented, or rather an exportdriven,
economy.
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1) You have been clamouring for one
Minister. You have got that.
Since assuming responsibility, the
Minister, Dr. Paul Robertson, has
engaged in a series of meetings
with key players in the sector and
heads of organisations.
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2) The Trade Facilitation Board has
been re-vitalised to remove the last
remnants of red tape.
3. The accelerated depreciation scheme
for industrial machinery and
equipment, foregoing some J$220
million in revenue in 1994 the
processes is now reality.
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4. We have removed duties on raw
materials, reduced the duties on
capital goods to 5%, foregoing
J$400 million in that process.
5. Another promise recently fulfilled is
that regarding the establishment of
a framework that would permit
single entity commercial free zones.
One company has already been
granted approval for operating a
single unit free zone and we are
open to consider other applications.
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Negotiations are also taking place for
the establishment of another to be
operated on the Machado property.
Construction is scheduled to start in
October this year with an investment
of J$80 million. Existing freezone
operators also now have the option to
purchase their facility.
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The role of JAMPRO has been the
subject of serious examination. Under
the Chairmanship of a practitioner in
the industrial field, Claude Clarke and
the temporary stewardship of one of
our finest public servants, Lucien
Rattray, JAMPRO has been reorganised.
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The Minister on Wednesday
announced the appointment of new
President - Patricia Francis. As an
experienced entrepreneur, we believe
she brings to the job the benefit of that
knowledge as well as the added asset of
fresh ideas.
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We see the role of JAMPRO as that of
leader in the drive to industrialise our
economy, enabling exporters to take
advantage of the many opportunities
available in the new global
environment and the mobilisation of
capital for investment.
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Together with the National Investment
Bank of Jamaica and the National
Development Bank, JAMPRO will be
undertaking a more aggressive overseas
promotional strategy as they seek to
tap into the American financial market
and promote direct investment and
trade.
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This week I held discussions with the
heads of our missions overseas who
have been meeting in Jamaica. I took
the opportunity to remind them that
our foreign service can no longer
afford "pin-stripe-suit" diplomacy.
Today, one of their major functions is
to promote investment.
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We will be aggressively promoting the
economic success we have quietly
achieved so that the turn-around in
economic performance does not remain
a secret.
It is imperative that we i• ncrease
investment inflows and this sector's
ability to produce, with greater
efficiency, competitive export-quality
goods.
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This leads me to the subject of the
National Industrial Policy.
The contribution of all sectors of the
society has been sought in its
formulation. What is the objective?
Simply put, it is to create the
appropriate conditions necessary to
promote continued expansion of
exports through growth of existing
lines of production of tradeable goods
and services as well as diversification
into new lines.
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Market forces by themselves, without
the support of the State, cannot bring
about sustained development of the
productive base of the economy. The
State must provide both policy and
direction. We are doing so now and
intend to continue on this path.
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Capital formation or investment lies at
the core of building the competitive
advantage without which we cannot
survive. This requires increased
investment by firms; expansion of
production facilities; modernisation of
production using new techniques made
possible by scientific and technological
advance; research and development as
related to innovation in production
processes and new products;
marketing and in distribution.
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•
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Your organisation has been
participating in the planning as a
member of the Steering Committee. I
trust that you will continue to make
your contribution to its completion.
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In the transition to a market-oriented
economy and in an international
economy that is becoming increasingly
global, it is necessary to ensure that
the important component - the labour
market - be reformed so as to better
enable it to deal with these
developments in the interests of labour
and the economy as a whole.
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We have to create a trained work
force, both flexible and specialised. We
have to increase productivity and raise
output. We have to exploit niche
markets.
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j.
With the conclusion of the basic
framework for economic stability and
Government seeking in earnest
resolutions of the long-term issues of
human resource development, social
and economic infrastructure,
technology - all key components of a
strategy to make the economy more
efficient and competitive - (the nation
now faces an historic opportunity).
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C.
"' Jamaica can move itself into the ranks
of the "NICS" in the early decades of
the 21st century if we lay the
groundwork now. And the
manufacturing sector can transform
itself into a vibrant and dynamic
engine of growth if necessary changes
are made in the mental outlook of our
manufacturers as in their
entrepreneurial dynamism.
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.. The manufacturing sector can rest
assured that Government is committed
to achievement of both goals since the
growth of the Jamaican economy is
integrally connected, we believe, with
the growth of the Jamaican
manufacturing sector.
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•
Ladies and gentlemen, all of us here
share a common goal - the desire for
economic, social and spiritual
development. All indicators say that
this goal can be realised. It is now time
for action.
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