NOTES FOR ADDRESS
BY PRIME MINISTER, RT HON P.J. PATTERSON
AT JAMAICA EMPLOYERS' . FEDERATION
LUNCHEON
JAMAICA PEGASUS HOTEL
.THURSDAY DECEMBER 15 1994
UWI LIBRARIES
t
I.
Salutations.
II.
Congratulations to recipients of
awards.
UWI LIBRARIES
Ill.
The Year in Review
- Stability in rate of exchange
- Cambio system has made the
black market a thing of
the distant past.
- Amounts being held in foreign
exchange accounts:
October 1 994 - US$645
million. UWI LIBRARIES
- Despite progressive reductions
in purchases by BOJ1 the NIR is
now equivalent to 1 4 weeks of nonbauxite
imports.
Who dared to expect all this one
year ago?
2
UWI LIBRARIES
IV
There have been other noteworthy
performances.
- Figures for Balance of Trade:
for the first nine months of
19941 exports increased by
US$76 million when compared
with the same period for
1993;
non-traditional exports, for
the first nine months of 1 994,
increased by US$54 million.
l
UWI LIBRARIES
. '
/~
The import figures remained
r-constant.
- Performance tl1,,--, /2~ 'r f~
- No public or private Sector
arrears. Amounts being held in
foreign exchange accounts amountd
to US$645 million.
- Jamaica1 s credit rating has
improved considerably.
4
UWI LIBRARIES
In fact1 and I doubt whether this
will make the major headlines1 for it
is good news1 Jamaica has passed
the September quarterly IMF test
and is now able to make a drawing
under the IMF programme.
5
UWI LIBRARIES
V
On the down side1 was the failure
to keep inflation within the targeted
limits.
Throughout the year I inflation
remained the common enemy - the
concentrated focus and total
energies of the entire nation1 of
each and every sector I must be
combined to contain and eventually
destroy this monster.
6
UWI LIBRARIES
In the tendency to blame the
Government for everything, some
would argue that the sole
responsibility lies with the Cabinet.
No doubt we must move boldly to
address questions of liquidity and
money supply. We are now better
able to do this with a stable
exchange rate and the healthy buildup
of exchange reserves.
7
UWI LIBRARIES
But employers and workers also
have their role to play. We have
watched organised labour
attempting to retrieve the effects of
previous depreciation and to protect
themselves against the possibilities
of future inflation.
8
UWI LIBRARIES
We have seen some corporate firms
jacking up the prices of goods and
servi•c es, so•m eti•m es as a necessary
result of local costs and purchases
but sometimes simply to increase
their profit levels and gouge the
consumer.
9
UWI LIBRARIES
There is only one effective answer -
we will need to increase production,
improve productivity and become
more efficient. Only thereby can
we secure a competitive advantage.
Only thereby can we boost investor
confidence and ensure economic
expansion. And only by this meaans
will we ensure meaningful benefit
from wage increases.
10
UWI LIBRARIES
We all hope that the · significant
drop in the inflation rate for
September and October will mark
the start of a welcome trend1 but
even so it must be further reduced.
11
UWI LIBRARIES
VI
1994 has been a year of high
industrial turbulence. Trade union
leaders would attribute this to
inflation levels1 but we all know
that any attempt to keep on
adjusting wages on such a basis
results in a self-fulfilling prophecy.
12
UWI LIBRARIES
But if we are really honest with
ourselves1 many of these industrial
disputes had nothing to do with
wages or inflation.
13
UWI LIBRARIES
.. '
They reflect a sense of social disquet
and workers' discomfort with the
prevailing industrial climate which
the Government1 the trade union
movement and the private sector
must collectively seek to address as
a matter of urgency.
14
UWI LIBRARIES
• Jamaica must recognise that the
transition to a market-oriented
economy also requi• res a
corresponding adjustment in labour
practices and industrial
relationships. You cannot have
drastic changes in one area and
remain static in the other.
15
UWI LIBRARIES
If the market economy 1• s
interpreted by the private sector to
mean everything for me and myself,
the workers will not be slow to take
the cue and insist on resorting to
such action as will protect their own
pos1• t1• on.
16
UWI LIBRARIES
The pursuit of narrow self-interest
and short term gains is likely to
cause social dislocation and
industrial disquiet - which breed
economic disruption and thereby
put the whole society at grave risk.
17
UWI LIBRARIES
• I
Our present situation requires a
robust private sector response, one
reflecting stronger outward and
global orientation. We expect the
pri• vate sector to i• nvest more 1• n
research, training and development
and to produce new goods and
servi•c es.
18
UWI LIBRARIES
I call on the private sector to design
new strategies which enhance
productivity and employment
security as major corporate goals
and objectives.
Let 1995 be the year when the
nation begins to reap the dividends
for all the sacrifices we have made.
19
UWI LIBRARIES
Like the other social partners,
workers and their organizations
must respond by re-positioning
themselves technically and
psychologically to deal with the new
global production culture. They too
must anticipate and respond to the
consequences of new technology
and other labour market signals.
20
UWI LIBRARIES
They must become more attuned to
higher standards of productivity and
quality.
VII
As 1 994 draws to a close, we have
clear evidence that we have made
significant steps in transformation
of the Jamaican economy.
21
UWI LIBRARIES
• I
The Government is exerting greater
fiscal and monetary discipline.
Indeed the public sector as a whole
is now in surplus.
The public servi• ce I•S being
rationalised in order to do better
those things which the State is
expected to provide.
22
UWI LIBRARIES
The Citizens' Charter an·nounced in
the House on Tuesday is a step in
this regard.·
We have achieved the liberalisation
of trade and the foreign exchange
market is working efficiently.
23
UWI LIBRARIES
. '
We have accelerated the
privatisation programme, including
our four sugar estates and Air
Jamaica.
But in order to face the challenges
ahead, we must remember that the
process of modernisation needs to
be ongoing.
24
UWI LIBRARIES
At the recent Cabinet Retreat, we
came to the view that we must now
give special ·focus to that important
area of our economy, the labour
market. We recognise that if this is
not done, the efforts in the other
areas of reform will not be
effective • .
25
UWI LIBRARIES
• I
We would find ourselves unable to
meet the fierce competition of
other economies that do a better
job with their overall reforms.
We need to re-visit questions
relating to productivity I flexibility
of the workplace and safety at the
workplace. ·
26
UWI LIBRARIES
• I
\
There is need to improve the
efficiency of our negotiation and
arbitration process. Too much time
and production are lost when there
is industrial strife.
27
UWI LIBRARIES
The i• mportance of making
productivity gains cannot be overstressed.
· Ultimately, this
determines the real value of the
workers' salaries and wages.
28
UWI LIBRARIES
.
The worker must be of paramount
consideration. Here the quality and
relevance of education and training
to keep abreast of new systems and
technology, as well as to be
creati• ve, are i• mportant.
29
UWI LIBRARIES
The educational system and the
tra1•n 1• ng opportun1•t 1•e s are even
• • more important as we enter a more
technologically intense era, with
computers being run-of-the-mill
equipment in offices, plants and
homes, for example.
30
UWI LIBRARIES
Consequently1 great attention must
be paid to the quality and relevance
of education1 especially the need for
sustained emphasis on vocational1
technical and scientific disciplines1
without which we will find ourselves
in the Htechnological backwater".
31
UWI LIBRARIES
- t
\
'\ -
With all this in mind, the Cabinet
has commissioned a study, to
commence early next year, on the
requirements for appropriate labour
market reform in a market-oriented
economy.
32
UWI LIBRARIES
Granted the Government1 s
responsibility for the legislative
framework and implementing
institutions, it will be necessary
during 1995 to initiate far-reaching
reforms affecting industrial
legislation and strengthening the
Ministries and agencies which are at
the front line.
33
UWI LIBRARIES
We will be governed by principles of
consultation and equity which
safeguard the interests of all parties
and promote industrial harmony.
34
UWI LIBRARIES
CONCLUSION
Today1 s function takes place with
Christmas close at hand. It should
be an occasion for celebration. My
instincts the ref ore tell me that not
even the Prime Minister should
trespass unduly on your patience at
this time of year.
35
UWI LIBRARIES
•
In conclusion therefore1 I want to
thank employees and workers for
the contribution they have made in
helping to move this nation onward
and forward during 1994.
36
UWI LIBRARIES
I wish for all a meaningful, safe and
enjoyable festive season. In spite of
whatever hurdles we know we have
to overcome in the new year, the
indomitable Jamaican spirit will
prevail as we mark one more year as
a vibrant nation, striving to realise
our goals •.
37
UWI LIBRARIES
Once again this Christmas, I know
that we will all remember its true
meaning as · we share whatever we
have with each other.
38
UWI LIBRARIES
' As we look forward to 1995, let us
determine to make it a year when
the nation blossoms into a period of
sustained economic growth and
unprecedented prosperity for all the
people of Jamaica.
39
UWI LIBRARIES
