Dr. Davies Suggests Using Tourism and Universal Access Funds to Stimulate Economy

Opposition Spokesperson on Finance, Dr. Omar Davies, has suggested that the Government transfer $3 billion from the Tourism Enhancement Fund (TEF) and the Universal Access Fund (UAF) to finance programmes to stimulate the economy.
“With particular reference to the TEF, it is inconsistent that whilst this Fund has a balance of over $4 billion, the squatter communities surrounding our two major tourism centres, Montego Bay and Ocho Rios, inhabited by many workers in that sector, are left unattended to grow and to continue stimulating social unrest,” Dr. Davies said.
“Therefore, a transfer of $3 billion from these two funds, for the fiscal year 2009/10, is more than justified,” he suggested during his contribution to the 2009/10 Budget Debate, in the House of Representatives, yesterday (April 28).
The mandate of the TEF, which falls under the Tourism Master Plan for Sustainable Tourism Development, involves promoting growth and development in the tourism sector, encouraging better management of environmental resources in the island, enhancing the overall tourist experience and providing for the sustainable development of the tourism sector.
The UAF is financed by a levy on incoming international calls to Jamaica. The revenue earned from the charges should finance the implementation of a national e-learning project designed to enhance the education process through the use of information technology. As at March 31, 2009 the UAF had just under $5 billion and the TEF just over $4 billion.
Dr. Davies also proposed that a special surtax be placed on the interest charged on Government paper for the financial year 2009/10. He, however, noted that this should be reviewed at the end of the fiscal year.
“The proposal is that the tax be increased from the current 25 per cent to either 30 per cent or 33⅓ per cent for fiscal year 2009 to 2010, in the first instance. In any event, this would still yield a net of between 16 per cent and 17 per cent on holders of government paper,” Dr. Davies said.
He added that this surcharge on interest would provide additional revenue in the range of $6 to 8 billion.
“It could also facilitate a reduction in the $8.75 special consumption tax on gasoline, or allow for adequate resources to be provided to areas of need which have been under funded in the budget presented,” Dr. Davies said.