Minister Shaw says Business Confidence Rising

MANDEVILLE — Minister of Finance and the Public Service, Hon. Audley Shaw, says that the reduction in the crime rate has led to encouraging signs of growing business confidence, which will ultimately result in economic growth.

“Business confidence is on the rise, not because of what the Ministry of Finance alone is doing, or other arms of Government are doing, but obviously the business confidence must also be on the rise because there is an increase in the perception that our communities are safer, because the murder rate is down and the crime rate overall is down,” Mr. Shaw said.

He was speaking at a closing exercise for 30 police corporals, from the Jamaica Constabulary Force’s (JCF) Area 3 division, who had participated in a one month development training course, on Friday (July 8) at the Ingleside Recreation and Wellness Centre, Mandeville.

Mr. Shaw said that, as the economy improves, more quality jobs will be created, reducing the propensity for crime in communities. He also stressed that with the public sector wage issue now settled, workers in that sector should take advantage of the trending down of mortgage rates which he attributed to Government’s policy of encouraging competition in the financial sector.

“Interest rates on mortgage loans have been going down, and they have been going down, in part, because I have put in place certain initiatives to allow for greater competition in the banking sector, and to allow for greater competition in the commercial mortgage market,” he noted.

“As a result of that, we are seeing over the past two months where mortgage rates have dropped from an average of 14 and 15 percent, and mortgage rates now in your normal building society are now coming down to ten and eleven percent,” he added.

The minister said single digit interest rates must be a firm pillow on which to build the economy, by expanding enterprises and creating quality jobs. He noted, as well, that as the low interest rates policy produces intended results, and business expand, the crime rate will continue to go down.

“That is where we have to go, that is where the majority of the world has been for many years. We in Jamaica have had high interest rates for too long. These high interest rates hinder businesses from expanding and hinder the creation of more jobs in the economy,” he said.       

Mr. Shaw also encouraged the police corporals not to let up on the fight against crime. He pointed out that among the effects of criminal activities is the stagnation of the economy, diminishing of business confidence, reduced job creation, and the entire society suffers the consequences.

By GARFIELD L. ANGUS, JIS Reporter