SOMETHING is drastically wrong with this country.

We have been informed by the best of our scientific minds that close to half of us are mentally unstable and yet we have never considered that among that 50 per cent may be politicians.

PAULWELL… leading light to draw the PNP into new 21st century

We seem to be people who mean well, but somehow don’t want to do well.

In the time of the last administration, a lot of noise was made about transforming energy from expensive oil-burning to the interim stage of LNG. It wasn’t exactly earth-shattering, but it indicated that we were on the right track towards making our country more competitive in the region and giving our people a chance to make their lives more meaningful.

As the talk of moving to liquid natural gas (LNG) gained momentum, so it seemed did the savvy of those who made up the last JLP administration. First, the Office of the Contractor General pushed its way to the front and the JLP Government wilted as the people rejoiced. As one listened to “the people” it must have seemed that there were many scallywags stalking the halls of JLP party central.

An election was later held and the JLP was soundly rejected.

Close to one year later, the only sound voice in the present PNP administration seems to be that of PNP minister, Phillip Paulwell.

We have all accepted the fact that if we do not configure our energy-producing sector to move away from heavy oil-burning, we will remain in the backwoods forever. That we know. In the last JLP administration, one which made its name through making Jamaicans even more distrustful of politicians than they were before, once the matter of LNG arose, all eyes lit up!

Too many people were making too much money, we thought. And even if we did have the full picture in our minds, it must have meant that we the people were being shafted. Or so we imagined.

In the end, a weak JLP administration bowed to the dictates of political and public pressure and the entity that had won the concession for introducing LNG to Jamaica, Exmar, and its local connection were scuttled.

The PNP rejoiced.

With a PNP administration that is close to one year old and is generally suffering from “old-age” in so short a time, there have been a few areas which have attracted my attention, and it seems the attention of the general public, if word at street level still has any credence. I speak, of course, of the energy ministry.

First, there have been the efforts in levelling the playing field in the mobile phone market. Somehow that seems to be on the reverse as one big telecoms player has been playing grand games with the public. Second, a convenient and totally indiscriminating public has bought the idea that that particular telecoms entity is deeply in love with them.

That said, Minister Paulwell’s strident efforts to bring about a lowering of the energy bill to ALL in this country must be lauded.

First, there was the thought among many that the LNG project was going to be government-driven and run by a historically proved inefficient government, especially one dominated by the PNP, an administration that has a history of being anti-business and too socialist-oriented. Second, as the world turns, and especially in Jamaica, corruption was the big bugbear.

The present arrangement which takes the LNG supply project totally out of the hands of government, once it had reached the stage of deciding the directions of the energy policy of the country is, to me, the best compromise. It is not the perfect one, the one that I would have preferred – that of reverting to awarding the LNG bid to Exmar and its local partners. To me, however, Minister Paulwell has committed his ministry and government to the JPS lowering energy rates by 50 per cent by the year 2015, a time when the people of this country will still have the chance to make a decision on the direction of his government.

Let us face it – there is not much that the Portia Simpson Miller administration can feed to the people as pap at this time. It won the 2011 elections on wild and reckless promises and mostly on the fact that it placed the populist PM Simpson Miller out front to play her song-and-dance routine to the people. Since the win, her song has died and her dance has failed to move us, but in the bleachers, the political watchers know that the Opposition JLP has a next-to-impossible chance of regaining all that was lost and given away by the abysmal and indecisive leadership of Bruce Golding.

Seaga was dead right!

The IMF analysis of economic trends for the next five to 10 years makes for bleak reading. Jamaica has lived most of its post-independence life as a mendicant nation where our prime ministers earn their kudos and clout at the polls for selling to the people their potential for borrowing the most. To a people of low-information voters and aggressive businessmen who are always seeing in such an arrangement an opportunity to make an extra buck, that simply feeds into the idea that government in this country must not be a facilitator as much as it ought to be a feeding tree.

The people rely on this, especially whenever a PNP administration is in power, and big businesses know that as much as they hate to do business during a PNP administration, if they want to survive, the ball has to be kicked back and forth. Again, Seaga was right.

In an administration filled with too many old socialists, Phillip Paulwell is a leading light in the effort to draw the PNP into the new 21st century. Finance Minister Peter Phillips has long shucked off his socialist leanings as the rigours of the current economic climate present themselves to him in a most unkind light.

He has to face the harsh reality of an IMF programme in danger of being derailed by the historical politics of the PNP. The negotiations need the full cooperation of all inputs from the various ministries such as the energy and commerce ministries.

We all know that the prime minister is out to lunch, so not much can be expected there more than a tip to the poor waitress, a hug and a kiss. Poor “she”.

Keep doing your thing, Minister Paulwell. Who knows, maybe even the most inflexible leader can be brought fully into the 21st century.

SOMETHING is drastically wrong with this country.

We have been informed by the best of our scientific minds that close to half of us are mentally unstable and yet we have never considered that among that 50 per cent may be politicians.

PAULWELL… leading light to draw the PNP into new 21st century

We seem to be people who mean well, but somehow don’t want to do well.

In the time of the last administration, a lot of noise was made about transforming energy from expensive oil-burning to the interim stage of LNG. It wasn’t exactly earth-shattering, but it indicated that we were on the right track towards making our country more competitive in the region and giving our people a chance to make their lives more meaningful.

As the talk of moving to liquid natural gas (LNG) gained momentum, so it seemed did the savvy of those who made up the last JLP administration. First, the Office of the Contractor General pushed its way to the front and the JLP Government wilted as the people rejoiced. As one listened to “the people” it must have seemed that there were many scallywags stalking the halls of JLP party central.

An election was later held and the JLP was soundly rejected.

Close to one year later, the only sound voice in the present PNP administration seems to be that of PNP minister, Phillip Paulwell.

We have all accepted the fact that if we do not configure our energy-producing sector to move away from heavy oil-burning, we will remain in the backwoods forever. That we know. In the last JLP administration, one which made its name through making Jamaicans even more distrustful of politicians than they were before, once the matter of LNG arose, all eyes lit up!

Too many people were making too much money, we thought. And even if we did have the full picture in our minds, it must have meant that we the people were being shafted. Or so we imagined.

In the end, a weak JLP administration bowed to the dictates of political and public pressure and the entity that had won the concession for introducing LNG to Jamaica, Exmar, and its local connection were scuttled.

The PNP rejoiced.

With a PNP administration that is close to one year old and is generally suffering from “old-age” in so short a time, there have been a few areas which have attracted my attention, and it seems the attention of the general public, if word at street level still has any credence. I speak, of course, of the energy ministry.

First, there have been the efforts in levelling the playing field in the mobile phone market. Somehow that seems to be on the reverse as one big telecoms player has been playing grand games with the public. Second, a convenient and totally indiscriminating public has bought the idea that that particular telecoms entity is deeply in love with them.

That said, Minister Paulwell’s strident efforts to bring about a lowering of the energy bill to ALL in this country must be lauded.

First, there was the thought among many that the LNG project was going to be government-driven and run by a historically proved inefficient government, especially one dominated by the PNP, an administration that has a history of being anti-business and too socialist-oriented. Second, as the world turns, and especially in Jamaica, corruption was the big bugbear.

The present arrangement which takes the LNG supply project totally out of the hands of government, once it had reached the stage of deciding the directions of the energy policy of the country is, to me, the best compromise. It is not the perfect one, the one that I would have preferred – that of reverting to awarding the LNG bid to Exmar and its local partners. To me, however, Minister Paulwell has committed his ministry and government to the JPS lowering energy rates by 50 per cent by the year 2015, a time when the people of this country will still have the chance to make a decision on the direction of his government.

Let us face it – there is not much that the Portia Simpson Miller administration can feed to the people as pap at this time. It won the 2011 elections on wild and reckless promises and mostly on the fact that it placed the populist PM Simpson Miller out front to play her song-and-dance routine to the people. Since the win, her song has died and her dance has failed to move us, but in the bleachers, the political watchers know that the Opposition JLP has a next-to-impossible chance of regaining all that was lost and given away by the abysmal and indecisive leadership of Bruce Golding.

Seaga was dead right!

The IMF analysis of economic trends for the next five to 10 years makes for bleak reading. Jamaica has lived most of its post-independence life as a mendicant nation where our prime ministers earn their kudos and clout at the polls for selling to the people their potential for borrowing the most. To a people of low-information voters and aggressive businessmen who are always seeing in such an arrangement an opportunity to make an extra buck, that simply feeds into the idea that government in this country must not be a facilitator as much as it ought to be a feeding tree.

The people rely on this, especially whenever a PNP administration is in power, and big businesses know that as much as they hate to do business during a PNP administration, if they want to survive, the ball has to be kicked back and forth. Again, Seaga was right.

In an administration filled with too many old socialists, Phillip Paulwell is a leading light in the effort to draw the PNP into the new 21st century. Finance Minister Peter Phillips has long shucked off his socialist leanings as the rigours of the current economic climate present themselves to him in a most unkind light.

He has to face the harsh reality of an IMF programme in danger of being derailed by the historical politics of the PNP. The negotiations need the full cooperation of all inputs from the various ministries such as the energy and commerce ministries.

We all know that the prime minister is out to lunch, so not much can be expected there more than a tip to the poor waitress, a hug and a kiss. Poor “she”.

Keep doing your thing, Minister Paulwell. Who knows, maybe even the most inflexible leader can be brought fully into the 21st century.

TREVOR Heaven, president of the Jamaica Gasolene Retailers’ Association (JGRA), has said that service stations will be revamping their operations in a bid to save the sector from extinction.

“We are facing an unprecedented financial challenge,” he told Auto. “At this point, there are four stations in the Corporate Area that are already closed. These are the Total service stations in Harbour View, Half-Way-Tree, shortwood, and Red Hills.”

HEAVEN… four stations in the Corporate Area are now closed

“I intend to seek audience with the management of the French-owned Total Jamaica to see how we can best resolve the issue,” he said.

When contacted, Paula Duncan, HR manager for Total Jamaica, said she could not comment as the company’s managing director, Dr Michael Faulkner, was off the island.

However, the JGRA president said he has been advised that another two service stations in St Catherine and one in Manchester were on the verge of closure, but refused to name the brands.

Heaven, who met with retailers at the JGRA’s Constant Spring Road headquarters on Wednesday, attributed the current downturn in the gasolene retail business to high operational costs, shrinkage due to temperature changes, reduced gross income (low margins and reduced throughput) and increased bank and credit card charges.

The JGRA president said a raft of new measures would have to be implemented.

“We’ll be moving away from full service to self service. We’ll will have discussions with the unions to see how best we can transition,” he said. “While we [the dealers] develop other income streams, we can divert our employees into other areas of activities rather than dislocate them.”

Heaven said dealers would discontinue accepting Master Cards and Visa Cards at service stations as the bank charges are sometimes greater than the profits made.

“Only the NCB Key Card and debit cards will be accepted,” he said.

Heaven said he would also be seeking a meeting with Dr Peter Phillips, minister of finance, planning and the public service, as well as Anthony Hylton, minister of industry, investment and commerce, regarding an amendment to the Weights and Measurement Regulation.

The JGRA comprises 160 members and celebrated its 61st anniversary in April, 2012.

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TREVOR Heaven, president of the Jamaica Gasolene Retailers’ Association (JGRA), has said that service stations will be revamping their operations in a bid to save the sector from extinction.

“We are facing an unprecedented financial challenge,” he told Auto. “At this point, there are four stations in the Corporate Area that are already closed. These are the Total service stations in Harbour View, Half-Way-Tree, shortwood, and Red Hills.”

HEAVEN… four stations in the Corporate Area are now closed

“I intend to seek audience with the management of the French-owned Total Jamaica to see how we can best resolve the issue,” he said.

When contacted, Paula Duncan, HR manager for Total Jamaica, said she could not comment as the company’s managing director, Dr Michael Faulkner, was off the island.

However, the JGRA president said he has been advised that another two service stations in St Catherine and one in Manchester were on the verge of closure, but refused to name the brands.

Heaven, who met with retailers at the JGRA’s Constant Spring Road headquarters on Wednesday, attributed the current downturn in the gasolene retail business to high operational costs, shrinkage due to temperature changes, reduced gross income (low margins and reduced throughput) and increased bank and credit card charges.

The JGRA president said a raft of new measures would have to be implemented.

“We’ll be moving away from full service to self service. We’ll will have discussions with the unions to see how best we can transition,” he said. “While we [the dealers] develop other income streams, we can divert our employees into other areas of activities rather than dislocate them.”

Heaven said dealers would discontinue accepting Master Cards and Visa Cards at service stations as the bank charges are sometimes greater than the profits made.

“Only the NCB Key Card and debit cards will be accepted,” he said.

Heaven said he would also be seeking a meeting with Dr Peter Phillips, minister of finance, planning and the public service, as well as Anthony Hylton, minister of industry, investment and commerce, regarding an amendment to the Weights and Measurement Regulation.

The JGRA comprises 160 members and celebrated its 61st anniversary in April, 2012.

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GCT Removed from Electricity Used by Residential Customers

 

June 6, 2012

Prime Minister, the Most Honourable Portia Simpson Miller, in her budget presentation yesterday announced the complete removal of General Consumption Tax (GCT) from the electricity used by residential customers. This reverses an announcement made earlier by the Minister of Finance that GCT would be applied to residential usage over 300 kWh. Business customers will still pay GCT on their electricity usage.

JPS is awaiting further details from the Ministry of Finance regarding the impact of GCT on related services, and will share this information with the public in due course.

In her presentation, the Prime Minister also spoke to initiatives to ensure a secure energy future for Jamaica, which she said was crucial and needs to be urgently addressed to enable the country to capitalize on opportunities. She made the following points:

1) Fuel Diversification: The Government is awaiting the outcome of bids and the associated negotiations for the provision of natural gas and the regassification infrastructure.

2) Renewables: Emphasis will be placed on the use of more renewables as well as waste and biofuels for generating electricity.

3) Conservation: The Government will be setting an example by implementing projects to reduce energy use. The Government will therefore be taking the lead in the national conservation effort, with its goal being a 30% reduction in the energy bill. The Prime Minister indicated that the pilot project for the conservation efforts would begin at the Office of the Prime Minister.

http://www.jpsco.com/

 

SUSTAINED OBJECTIONS to the Government‘s announced increase in general consumption tax (GCT) on the use of electricity above the 300 kWh threshold have prompted the Portia Simpson Miller-led administration to remove the tax measure altogether from residential customers.

Simpson Miller, in her contribution to the 2012-2013 Budget Debate, also announced yesterday that businesses that use more than 300 kWh of electricity could reclaim the tax.

Hours after Finance and Planning Minister Dr Peter Phillips announced the 16.5 per cent GCT on electricity use above 300 kWh on May 24, pressure began to mount as public outcry grew louder against the decision.

Simpson Miller, who had promised a roll back in GCT on electricity during the election campaign declared yesterday that she had “heard the cries of the people” and felt their pain.

“It was not possible to fulfil all the promises in the five months based on the conditions we found. As a responsive Government, after discussion with the minister of finance, the decision has been taken to completely remove GCT on electricity bills for all residential customers,” Simpson Miller stated.

The charge on electricity was expected to rake in $430 million in taxes for the current financial year.

However, Simpson Miller did not explain how the administration would recover sums that had been given up with the decision to roll back the tax.

She told the country that her finance minister would provide details on the roll back as well as address other revenue measures when he closes the Budget Debate today.

Budget goodies

Removal of GCT on electricity to residential customers

Sharp cut in interest rates for NHT contributors:

– From three per cent to one per cent

– From Five per cent to three per cent

Extension in one per cent interest rate reduction to public sector workers

– From March 31, 2013 to March 31, 2015

Cut in NHT rate by one per cent for hotel workers earning $10,000 or less per week

$1.2 million grants to NHT applicants earning $10,000 or less per week

The award of 50 ‘Jamaica 50′ scholarships to students

edmond.campbell@gleanerjm.com

http://jamaica-gleaner.com/gleaner/20120606/lead/lead2.html

ALTHOUGH chicken remains exempted from General Consumption Tax (GCT) under the Government’s new tax measures, the price of the popular protein will be increased because of the hike in the tax on electricity announced by Finance Minister Dr Peter Phillips last week.

At the same time, local manufacturer and distributor GraceKennedy says the imposition of GCT on corned beef will push the popular tinned meat out of the reach of the average consumer.

Jamaica Broilers Chief Executive Officer Chris Levy yesterday confirmed that higher electricity costs, which his company will not be able to recover, will result in a hike in the cost of chicken meat.

“Without a doubt it is going to affect us, because with the tax on electricity going up, this is going to flow through to our consumers in the price of chicken,” Levy told the Jamaica Observer.

According to Levy, the company is now in the process of working out what the impact will be on the current price.

“We got the ministry paper Saturday and we are trying to work this thing through because the impact is not only for us but also for our suppliers and contract farmers,” he explained.

Last Thursday in his Budget presentation, Dr Phillips had announced that GCT on electricity usage of 300 kWh and above will be increased from 10 per cent to 16.5 per cent effective June 1.

Companies are able to reclaim GCT paid on electricity from the tax collected on the goods and services they provide. However, companies which supply tax-exempt goods are not able to recover this GCT.

Yesterday, Levy said it was still too early to finalise the impact of the increased costs to Jamaica Broilers’ as the model being used for its contract farmers also has to be worked out.

“Whatever happens is going to happen between now and Monday when these changes become effective,” he said.

Chief executive officer of GraceKennedy Don Wehby said an internal analysis has since shown that the addition of GCT on corned beef will affect consumer demand of a food which is relied upon a lot by low-income householders.

“At GraceKennedy we have done quite a bit of analysis on the removal of GCT on basic food items and we have some major concerns which we will be writing to the minister about,” Wehby said.

GraceKennedy, he said, will be calling for the removal of GCT on corned beef, which is an imported item.

“We believe they should remove it from corned beef because we have gone out there and done the sensitivity studies and have done our best to look at how to cost it out and it is just not good,” he said.

While corned beef is expected to be most affected, Wehby said it is just one of several basic food items which will be impacted by the tax measures.

“We are looking at all the various ways in terms of how the group of companies can become more cost-efficient to try and minimise the impact to our consumers and customers,” he said.

Wehby also said the increase in GCT on electricity will have both a “cost implication” as well as a “profitability consideration” for the GraceKennedy Group of companies, which also offers banking and securities services.

He explained that since the services of the bank and securities companies in the group are exempted from GCT, these companies will not be able to recover the 6.5 per cent increase on electricity charges, hence making this a direct expense to them.

“We have some of our manufacturing plants which manufacture goods that are also exempt from GCT and so we will not be able to recover some of the incremental costs, including that of electricity,” Wehby said.

He added further that the group is trying its best to keep the cost to the consumer at a minimum, as the market is very competitive.

“We are now spending a lot of time looking to see how we can become more efficient as a group because you can’t assume that you can just pass on the increase to the consumer, because it is very competitive,” he said.

“We are now spending a lot of time looking to see how we can become more efficient as a group because you can’t assume that you can just pass on the increase to the consumer, because it is very competitive,” he said.

Yesterday, president of the Jamaica Manufacturers’ Association (JMA) Brian Pengelley said the increased GCT on electricity will further impact the cash flow of a lot of companies.

He explained that with GCT being a credit/debit situation most people will be able to reclaim the tax in a 30-day period. However, this will impact on the management of a company’s cash flow.

He explained further that what can be passed on to the consumer is driven by what is the available tax the consumer has to pay.

“So companies will have to look for more efficiencies, maybe to mitigate that, because you can only pass to the consumer what they are willing to pay,” the JMA head said.

The management of Carib Cement agreed that the increased GCT on electricity will impact the company’s cash flow, but said it should not directly affect the cost of cement.

“At this time I would not make the comment that it will be rolled into the product but the financing cost of operation is one that ultimately factors into the pricing of our product, so to the extent that the financing is impacted it would be in that manner,” said Orville Hill, Carib Cement’s finance manager.

While the impact of the increased GCT by itself will not necessarily trigger a change in cement prices, Hill said the company will be looking at a number of other issues and incorporate those factors in adjusting price correction as needed.

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