Shaw Says Surge in Interest in Downtown Not Surprising

KINGSTON — Minister of Finance, Hon. Audley Shaw, says the recent surge of interest in investing in the redevelopment of downtown Kingston was not surprising, as it reflects the return of business confidence, now that macro-economic stability has been realized.

Addressing the Urban Development Corporation (UDC)/Scotia Bank Investment Forum, at the Jamaica Conference, Thursday September 22, Mr. Shaw emphasized that, for the private sector to assume its role as the engine of growth, the environment must be conducive to growth and development.

He observed that, despite the challenges of the global economic crisis, lack of meaningful growth for over a decade, the unsustainable debt burden and interest rates inimical to investment in the real economy, the economy is now well positioned to achieve stability and growth.

The Jamaica Debt Exchange (JDX) has resulted in the reduction of interest rates from an average of 17 percent to 12 percent. The JDX has been so successful, that it is being promoted “as a model for debt ridden Greece,” the Minister bragged.

He also pointed to the divestment of loss-making state enterprises, such as Air Jamaica, the sugar estates and the impending divestment of Clarendon Alumina Production (CAP), as well as measures designed to achieve debt sustainability, transparency and fiscal responsibility.

He reflected that the Government now has a 95 per cent compliance rate, in all performance measures it is required to meet under its agreements with multilateral partners, including the International Monetary Fund (IMF), World Bank, European Union (EU), Inter-American Development Bank (IDB) and Caribbean Development Bank.

Mr. Shaw pointed to the incentive for companies wishing to invest in the redevelopment and renewal of urban areas, such as downtown Kingston, with the passing of the Urban Renewal and Tax relief Amendment Act.

The amendment allows for the exemption from stamp duty and transfer tax, the acquisition of land for use by approved developers. It also allows for an increase from 25 per cent to 33 1/3 per cent tax credit of the capital expenditure, in respect of improvement works carried out in the special development areas.

Commending enterprises that have taken the lead in relocating to downtown Kingston, Mr. Shaw advised other investors to follow the lead, as it is time to take full advantage of the opportunity “to make Kingston the dream capital of the world.”

By Allan Brooks, JIS Senior Reporter