JMA Online News
Talk is cheap - Gov't chided for not buying Jamaican products
Written by: Jamaica Gleaner
Date: 2011-10-31
With the local manufacturing sector facing a downturn in business, one key industry player has charged that successive administrations have failed "miserably" to lead from the front with the buy Jamaican initiative that was designed to help save local businesses.
In fact, Metry Seaga, who is a vice-president of the influential Jamaica Manufacturers' Association (JMA), went a step further, arguing that governments have lost the moral authority to tell Jamaicans to buy locally when, as the single-largest purchaser of goods and services, they did not.
"Successive administrations have failed miserably at doing what they have said others need to do," Seaga told a recent Gleaner Editors' Forum at the newspaper's central Kingston offices.
"If they did that, it would make a significant statement and foster many of the fledgling industries out there," he reasoned.
Check locally first
Seaga said he was not advocating for any major policy shift.
Instead, he suggested that all the various government agencies should check locally before deciding to source goods and services overseas.
"If we were to take that approach in every single ministry and every government agency, you would be frightened to see businesses opening up to provide these things," he said.
Businessman Carvel Stewart agreed, charging that governments have gone about sourcing goods and services in a "disqualifying" manner.
"They disqualify Jamaican competences for foreign competences," explained Stewart, who represented the Incorporated Masterbuilders' Association of Jamaica.
He pointed to the construction sector as a prime example, asserting that all the major projects being undertaken across the island are being done by foreign contractors.
Stifling employment
Stewart said Jamaica has trained all the skilled persons required in the construction industry, but noted that except for private development, they are unable to access the local market.
"So how do we grow local employment and the economy?" he questioned.
"The buy Jamaica principle, policy, whatever we want to call it, has to be taken seriously," Stewart insisted.
Another major sticking point for local manufacturers, according to the JMA vice-president is the existing government policy for the procurement of goods and services.
He said he accept that the Government needs to buy based on price and quality, but insisted that there should be some "equalisation" of the procurement system.
According to him, the policy dictates that in cases where work is being sought from the State, previous experience in a similar field is rated as high as 50 per cent.
This, Seaga said, "automatically" puts local manufacturers "out of the loop".
"It needs to be redone, revamped and it needs to be changed," he argued.
"The Government could, in a very simple way, start to practise what they preach and start buy local," he said.
Seaga said the JMA, in its discussion with the tax-reform committee of the Partnership for Social Transformation, is examining some new and "very unique" tax-reform measures.
These measures, he said, would have far-reaching impact and would help to spur the economy.How would you solve Jamaica's unemployment problem?
The Statistical Institute of Jamaica released data that show that in the labour market, the construction sector has shed the most jobs followed by manufacturing, wholesale and retail. Hotels and restaurants are also badly affected by job losses. We brought in leaders from those sectors to The Gleaner's 10-year-old Editors' Forum recently to debate the topic: How would you solve Jamaica's unemployment problem?
Successive administrations have failed miserably at doing what they have said others need to do (buy Jamaican). If they did that, it would make a significant statement and foster many of the fledgling industries out there.
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