House Approves Withdrawal of $1.54 Billion from CDF

The House of Representatives has approved the withdrawal of $1.54 billion from the Capital Development Fund (CDF), to provide budgetary support for the 2013/14 financial year.

Minister of Finance and Planning, Dr. the Hon. Peter Phillips, who moved the Withdrawal Order in the House of Representatives on February 4, said of the amount, $1.376 billion is to be paid into the Consolidated Fund.

He also informed that $163.58 million is to be used for budgetary support for the Jamaica Bauxite Institute for the fiscal year 2013/14.

Dr. Phillips noted that the withdrawal from the Capital Development Fund was determined on the basis of the balance available in the Fund as of April 1, 2013 and the estimated inflows of levy on interest for the period ending March 31, 2014.

“The opening balance in the CDF as at April 1, 2013 was $374.2 million, and   between April and December, an additional $868 million was placed in the Fund. Interest earned was some $21.36 million, less tax deducted of $5.3 million. So, total receipts would have been $884.26 million and the value of the Fund as at December 31, 2013 was $1.25 billion,” Dr. Phillips said.

Leader of the Opposition, Andrew Holness, said his members would not object to the withdrawal of the funds from the CDF.

However, he said some of the money from the CDF should be used for the development of the limestone industry.

The Opposition Leader also queried the re-opening of Alumina Partners of Jamaica (ALPART), in Nain, St. Elizabeth.

In his response, Dr. Phillips said that Minister of Science, Technology, Energy and Mining, Hon. Phillip Paulwell will, in the near future, give an update on the status of the mining industry.

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