JIS News

The House of Representatives, on Tuesday (October 30), approved the withdrawal of $1.8 billion from the Capital Development Fund (CDF), to provide budgetary support for the 2012/13 financial year, as well as to fund community development programmes.

Minister of Finance and Planning, Dr. the Hon. Peter Phillips, who moved the Withdrawal Order in the House of Representatives on Tuesday (Oct. 31) said of the total amount, $1.397 billion is to be paid into the Consolidated Fund.

He also informed that $154 million is to be used for budgetary support for the Jamaica Bauxite Institute for the fiscal year 2012/13; and $130 million to the Jamaica Bauxite Institute for the implementation of special projects in the bauxite communities under the Bauxite Community Development Programme.

The Ministry of Transport and Works is also receiving $145.7 million to meet commitments arising from the privatisation process of the Jamaica Railway Corporation (JRC).

The amount, he said, include $23.7 million for payment of redundancies, gratuity and notice pay; $19 million for outstanding payments to local creditors; $19 million for expenditure for material and services provided to the JRC; and $11 million of rehabilitation work.

He also informed that $43 million has been allocated for the payment of statutory deductions and contributions; some $33 million for the payment of retroactive salaries of workers; and $17.5 million has been allocated for a viability study and valuation works to be undertaken prior to the privatisation of JRC.

The CDF was established under the Bauxite Production and Levy Act. It was promulgated in 1974 at the time when the bauxite production levy was imposed, and the proceeds of the levy directed to the CDF.