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ADDRESS BY
PRIME MINISTER HON P.J. PATTERSON
AT
OFFICIAL OPENING OF JMA/JEA EXPO 96
AT
NATIONAL ARENA
ON
THURSDAY OCTOBER 31, 1996
Your kind invitation to participate in your
eighth biennial trade exhibition affords me
another welcome opportunity of interaction,
with some of the principal cogs in the wheels of
Jamaica's economic development.
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am particularly struck by the theme
of your exposition.
Indeed, that "a world of opportunity awaits you",
is a message which I have long endeavoured
to disseminate to all Jamaicans.
I can scarcely contain my sense of delight, that
this realisation is now being embraced
by those sectors of the society, where it matters
most.
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If the captains of industry and commerce can
successfully market this concept to all our
people, tremendous dividends will accrue
to the nation as a whole.
I am also pleased to note that your exposition
has out-grown its single habitat.
This year it spans two venues, one of which
is devoted to the showcasing of high quality
Jamaican fashions and intellectual property
in the fields of music, publishing and craft.
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The recognition of the un-tapped potential of our
music is of particular interest and augurs well
for the promising future of this indigenous natural
attribute of our country.
The other innovations which you have introduced
for this year's show are also worthy of note,
as also, is the diverse international clientele
which you have been able to attract
to our shores for this exhibition.
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This year's exhibition is being staged at the end
of a biennial period in which the manufacturing
sector has been severely tested.
When the period commenced, Jamaica was
dependent on the External Fund Facility
of the IMF to obtain foreign exchange support.
We now have Net International Reserves
equivalent to 15 weeks of imports.
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Some people refuse to concede that we can
manage the economy without the IMF telling us
what to do. Hence this unfounded story about
IMF Country Report for 1996 being "not so
good". There is in fact no such adverse report.
What the Report did say is that our fiscal
programme must be implemented as planned
and that there needs to be an incomes policy
to avoid erosion of our external competitiveness.
It seems that we have become immune to good
news.
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The fact that this impressive exhibition coincides
with the end of such a period, suggests to me
that our Jamaican manufacturing sector
has the ability to perform under a diverse range
of circumstances.
For me this is most encouraging. It points
to the exciting future which lies ahead.
We have been able to achieve macro-economic
stability through the careful and meticulous
management of the economy which has
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characterised Government's operations over
the past two or so years.
The Foreign Exchange Market is working well.
The reducing trend in the rate of inflation, the fall
in interest rates, the stability of the re-valued
Jamaican dollar, all point to an economic
environment which is conducive to a
positive approach to investment.
This Exposition takes place at the launch
of the National Industrial Policy.
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The document proceeds from a simple base -
you cannot build on a shaky foundation
and so in order to secure sustaining growth
you must first achieve economic stability.
This is the main emphasis of our economic
programmes during this fiscal year.
The National Industrial Policy itself provides
the framework for building up the momentum
of growth and development to take the country
into the 21st century.
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It incorporates the tools by which the export
sector can attain the external competitiveness,
which is the single most critical factor upon
which the future of the sector is hinged.
The Government intends to focus its attention to
build and strengthen the manufacturing sector.
We have already begun to pave the way
through: -
• The modernization of industry programme
which provides technical assistance to improve
competitiveness.
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• Removal of duty on non-competing capital
goods, to facilitate the upgrading
of machinery used in the production process.
• Zero Duty on raw materials to provide cheaper
inputs and increased ability to compete.
• The enactment of legislation to allow for single
entity free zones to facilitate investment
in export activities and greater flexibility
in locating projects
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• Facilitation of retooling and upgrading of plant
and equipment through the accelerated
depreciation programme, to allow firms
to depreciate 50 per cent of the full cost of any
new machinery in year one, and the remaining
50 per cent in year two.
• Extension of the Export Industry
(Encouragement) Act to partial exporters
and the provision of matching grants to firms
which upgrade their technological and
marketing capabilities.
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The Policy has identified a number of areas of
manufacturing in which we have actual or
potential competitive advantage.
These are the areas which will under-pin
the country's efforts to achieve an average
growth rate of six per cent per year by the year
2010.
Although it is early days yet, the signs of
renewed investment activity are encouraging.
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Over the past six months, after a period of
relative lending in-activity, the National
Development Bank is reporting a long pipe-line
of loan applications.
Within the last two months the National
Development Bank approved projects totalling
J$275 Million and US$9.8 Million.
As the business sector positions itself
to play its full part in the emerging economic
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landscape, it is vital that members diversify
their approach to production through product
innovation and the search for niche markets.
There is an urgent need for businesses to move
up the technological ladder by embracing
the innovative techniques which are available
for modern production.
Although we are a small country, it is possible
for us, by focusing intently on our specific
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advantages, to gain a competitive edge
in the international market-place.
We need to capitalise on such advantages
as our natural resources, strategic geographic
location, unique speciality products.
These signs of renewed interest are indicative of
what can be expected from the investmentfriendly
environment, which is emerging in the
country.
The cycle of poverty cannot be broken
in the absence of economic opportunity.
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We need to stimulate investment in order
to promote growth and create new opportunities.
There is a new world out there waiting for us
to conquer.
To compete successfully, with our rivals
in the international market-place , Jamaican
firms must enter the new world of technology,
based on flexible manufacturing systems,
sophisticated information technology, advanced
methods of product design and quality control.
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For this to be accomplished, there is need for a
rapid programme of plant and equipment retooling,
technological up-grading and
modernisation
In spite of the importance of all the financial,
scientific and management factors which must
be brought into play, the country will not
achieve higher levels of economic activity,
unless we release the creativity, drive and
enthusiasm of all the people.
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Every one has a role to play in the renewed
production drive, which the country requires at
this time.
We must as a people, avoid seeing problems
instead of opportunities -
That makes us recognise and applaud
positives even in the face of some
unavoidable difficulties
That makes us ask ourselves, " if not why
not"
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instead of simply taking the line of least
resistance and saying, "we CANNOT".
That makes us have a burning desire to
succeed and not be content to accept
failure.
The scope and magnificence of the exposition,
tells me that the ingredients of which I have
spoken, reside not only within the captains
of industry and commerce, but also within
the hearts and souls of the vast
majority of the Jamaican people.
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It is for this reason, that I face the future with the
confidence, that this little country of ours,
possesses all the required attributes for a great
future.
I therefore have great pleasure in declaring
EXPO 96 truly open, with the hope that it will
herald a new day for the manufacturing sector
and that your efforts will earn the success, they
so richly deserve.
I thank you.
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