Government Spearheading Legislation To Revise Incentive Scheme

Government is spearheading legislation aimed at revising the incentive scheme regimes, to consolidate and simplifying present systems and to encourage greater private sector involvement in economic development.

Making the announcement on Tuesday (Feb. 4), Minister of Development, Dr. Paul Robertson, said that discussions were now taking place on issues dealing with corporate income tax rate and incentives to support infrastructure investments, development of human capital, supporting research and development and the creation of knowledge based industry.

He was speaking at a Ridge to Reef Watershed (R2RW) Project workshop at the Jamaica Pegasus hotel in Kingston, aimed at discussing a report entitled, “Development of Incentives for Private Sector Investment in Improved Watershed Management in Jamaica.”

The workshop was hosted jointly by the National Environment and Planning Agency (NEPA) and the United States Agency for International Development (USAID).

“We are working in collaboration with the USAID and the Jamaica Chamber of Commerce on the Jamaica Regulations Legislation and Process Improvement Project, which involves the establishment of an investigative unit located at the office of the Cabinet/Development,” Dr. Robertson said. He noted that the intent was to “look at the legislative framework, regulations and the administrative practices, which impinge on the effort at ensuring that incentives can be properly applied and effectively implemented”.

The Development Minister however emphasized, that any new incentive system had to be applied in a non-discriminatory manner to both local and foreign investors and allow for continual assessment of the effectiveness of these incentive packages.

“We all have to bear in mind that the new systems must also be in line with World Trade Organization (WTO) policy, should abide by international best practices and should reflect sound fiscal policies,” he stated.

The Minister noted that the R2RW Project was consistent with the Government’s plan to provide all Jamaicans with potable water by 2005. He said however, that in order to achieve this target, the island’s watersheds must be protected. In all this, Dr. Robertson said, Government seeks to play a facilitating role, allowing the private sector to be the engine of growth.

He commended the Project stating that the approach, which seeks to encourage private sector participation as well as all the stakeholders at the community level, was in recognition that for any sustained economic development, there had to be a partnership among the state, the private sector and civil society through community based organizations.

He challenged NEPA to develop and publish information in regard to environmental standards so that policy makers and investors could know in advance, what needed to be done to preserve the environment prior to attempts at commencing various projects.

“This will require inter-agency and inter-governmental cooperation,” he said, adding that his office was prepared to assist in coordinating the process.