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Page 4 NEWS Hendrickson family and GraceKennedy share Observer Business Leader Award
Contents
CADRC closes operations Page 7 COVER STORY
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50 under Fifty programme comes to a successful end
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Dr Freeman Hrabowski’s ‘pearls of wisdom’ Pictorial highlights of the 50underFifty Awards Gala Page 12 Member Focus International Asset Management takes to the skies
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Page 13 Happenings Members’ Luncheon Members unwind at third Executive Lyme
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Page15 News from the CEO’s report
10 Message from the Editor The social and economic challenges of the times might suggest otherwise, but at the PSOJ, we believe this vision can be achieved and we remain fully committed to playing our part to help make this Jamaica a reality.
There are many things to ponder as we say goodbye to 2012 and prepare to welcome the challenges and opportunities of 2013. On the positive side, Jamaica marked her golden jubilee on August 6 and the spirit of patriotism was high across the island. Many of the people who have helped to shape the country were honoured for their years of service and here at the PSOJ, we recognised the new guard, those business leaders under 50 years of age who will take Jamaica into the next half century. We firmly believe that with their passion, talent and keen business acumen, Jamaica is in good hands and we look forward to working with them to change the economic fortunes of our great country.
In the spirit of Christmas, we also want to wish for you and yours a peaceful holiday season and a prosperous new year. And as many of us write down our resolutions, let us all resolve to play a role in nation building in 2013 and beyond.
Attendees at the gala awards banquet held in honour of these 50UnderFifty business leaders were treated to an inspiring presentation by keynote speaker, Dr Freeman Hrabowski, President of the University of Maryland, Baltimore County. We already know the vast potential that exists in every Jamaican, but we were further stirred to action by Dr Hrabowski’s charge to develop a more innovative culture where failure isn’t final but a stepping stone to greater things and where the sciences and engineering are pursued with the same passion as the humanities and sports.
Sandra AC Glasgow CEO The Private Sector Organisation of Jamaica (PSOJ)
As he spoke, we all envisioned a Jamaica where stakeholders are committed to working together for the good of the nation and our children are all given equal opportunity to succeed. 4
News
Hendrickson Group, Grace Kennedy win Observer Business Leader Award
(L-R): Members of the GraceKennedy and Hendrickson family group of companies with Observer Chairman Gordon ‘Butch’ Stewart (6th left) and his son, Adam (7th left) after both companies were named Observer Business Leader Corporate at the 16th annual Observer Business Leader Award last night. From left are Kevin Hendirckson, Garry Hendrickson, Don Wehby and Douglas Orane of GraceKennedy, Karl Hendrickson, Joe Taffe of GraceKennedy, Nelly Hendrickson, Karl Henddrickson’s daughters Cathy Kerr and Lori-Ann Lyn, and Courtney Campbell, Frank James and Catherine Kennedy of GraceKennedy. Photo courtesy of the Jamacia Observer
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istory was created on December 2, when, for the first time in its 16-year existence, the Observer Business Leader Award was shared by two recipients. The Award Selection Committee found itself in a deadlock, unable to choose between GraceKennedy and the Hendrickson group of companies for the top prize of Business Corporate Leader as both were evenly matched in terms of the scope, depth or quality of their impact on the Jamaican economy over the past 50 years. GraceKennedy and the Hendrickson family were chosen as the winners from a pool of 35 companies nominated for the prestigious award. Patriarch Karl Hendrickson, as well as GraceKennedy Chairman Douglas Orane and Group CEO Don Wehby, were present at the awards ceremony held at the Jamaica Pegasus Hotel (coincidentally, owned by the Hendricksons), under the theme ‘5 Decades of Nation Building.’ Speaking on behalf of GraceKennedy, Wehby expressed gratitude for the award and pledged its continued commitment to nation building. “Our founding fathers started and built GraceKennedy on the values of honesty, integrity and trust. I can’t help but feel proud that 90 years after they founded this company, we have been recognised for excellence not only for the business we do, but for the way we do business. Our former Chairman and CEO, Carlton Alexander, who was pivotal to the shaping of GraceKennedy, had a mantra that we hold dear to this day: “what is good for Jamaica is what is good for GraceKennedy,” he said. Gary ‘Butch’ Hendrickson, Chairman of National Baking Company, said the win was a surprise to the family. “Just to be nominated is itself an honour and we are very proud - in fact, we are humbled. 5
To us, winning means we have to now set the bar a little higher, work harder and do more, not just in terms of our businesses, but helping the country go forward and looking after our staff, helping them meet their own expectations and dreams,” he said. GraceKennedy is one of the oldest companies not only in Jamaica but the Caribbean and has a positive reputation on the international business scene. The conglomerate has 60 subsidiaries and associates spanning across almost every sphere of economic endeavour, from food production to banking and insurance. Last year, Grace earned $58.2 billion in gross revenue, making it the best performer in terms of sales amongst all the companies listed on the Jamaica Stock Exchange. Internationally, the group generated $16 billion from exports to Europe, the USA and Africa, significantly more than the country’s $10 billion earnings from sugar export. The Hendricksons also had much to be proud of this year. Continental Baking Company, which operates National Bakery Ltd, Jamaica’s largest maker of breads, buns and other baked items, celebrated its 60th anniversary. The group also owns and operates the Jamaica Pegasus Hotel in Kingston and the Holiday Inn Montego Bay and agro-processing company Caribbean Broilers. These operations employ more than 4,500 Jamaicans.
News
CADRC forced to close due to lack of support
Justice Hugh Small, who was instrumental in establishing the CADRC
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he Commercial Alternative Dispute Resolution Centre (CADRC) was started on December 13, 2010 (officially established in January 2011) with the aim of encouraging more local companies, particularly small and medium sized enterprises (SMEs) to resolve disputes outside of the court system, which is fraught with costly delays. Through mediation and arbitration, the organisation offered these entities the opportunity to resolve disputes in the most timely and cost-effective manner, while avoiding the acrimony often involved in legal proceedings. However, due to lack of support from the local business community, the CADRC was officially closed on December 5. During the closing workshop, CEO of the Private Sector Organisation of Jamaica (PSOJ), Sandra Glasgow elaborated on the achievements as well as the challenges faced by the centre. She informed the workshop that the PSOJ Executive Committee had taken a decision to close the CADRC as the centre is not able to sustain itself. During its two years of operation, the CADRC, which was headed by Justice Hugh Small, hosted 10 awareness seminars conducted in five parishes, sensitising 100 SMEs and SME association representatives about ADR principles and services available at the centre. Twenty SMEs were able to access matching grants of up to US$1,000 to encourage them to use the services of the CADRC, which included video conferencing facilities. The centre also facilitated several mediations and arbitrations, including an international arbitration case. 6
Addressing the workshop, Justice Hugh Small, who had championed the centre’s establishment from as early as 2006, commended Earl Jarrett, General Manager of the Jamaica National Building Society (JNBS) for his efforts and the investments made to get the Jamaican business community aware of ADR. He also thanked Glasgow and immediate past president of the PSOJ, Joseph M Matalon, for their dedication to the establishment of the CADRC despite the resistance faced from other stakeholders and the little support received from government officials. Despite its own promotional efforts, the CADRC was also affected by less than adequate publicity. Glasgow advised that one of the reasons the centre did not gain the necessary traction might be because it was a new entity and most persons were accustomed to calling their lawyers and going through the courts to resolve their disputes. She noted that it would take time and more promotional efforts to get businesses to be open to change. Glasgow also indicated that her closing presentation, along with a follow up letter requesting any new developments on the Arbitration Act, would be sent to Minister of Justice, Senator Mark Golding. The PSOJ had received a grant of from the Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IDB) to establish the CADRC.
50u50 recap
50UnderFifty Programme comes to a successful end
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Managing Director of The Gleaner Company and PSOJ Vice President Christopher Barnes and PSOJ CEO Sandra Glasgow with guest speaker, Dr Freeman Hrabowski
he highly anticipated PSOJ/Gleaner 50UnderFifty gala awards banquet was held on Thursday, November 29, at the Wyndham Kingston Hotel. The banquet was attended by the nation’s top movers and shakers, including government leaders and industry stalwarts, all of whom crowned the night a fabulous success. The 50 business leaders basked in their moment in the spotlight, as they were recognised for their contributions to various industries throughout the years.
“I challenge you to come into this world of science and engineering because whether China or India or America, science and engineering along with arts and the humanities will be very important,” he said.
The keynote speaker for the night was Dr Freeman Hrabowski III, president of the University of Maryland, Baltimore County and a 2012 TIME Magazine honouree who, among other things, urged Jamaicans to focus more on fostering an interest in science, mathematics and engineering.
Asked what radical steps he would take to improve educational outcomes in mathematics and the sciences at the secondary level, given our low performance in these areas, Dr Hrabowski responded that he would double the pay of all teachers and triple the remuneration of mathematics and science teachers.
“As you are good at track, you can be good in maths and science,” said Dr Hrabowski. “What makes the difference in any society, beyond our understanding the context through the arts and humanities, will always be the strength in science and engineering to create the jobs. And that’s where you need to go in your culture.”
He also spoke about those Jamaicans who have migrated, saying, “I think you need to stop talking about people who have left, quite frankly, because every time I hear someone in Jamaica mention that, I talk more about the ones who stay because the ones who stay are making such a difference.”
Dr Hrabowski also challenged Jamaican authorities to use those subjects as tools to create jobs and drive economic growth. “If you are talking about health care, if you are talking about the environment, if you are talking about energy, if you are talking about intelligence - all of these (subject) areas will be required,” he said.
“There is something to be said about taking pride in self, taking what you’ve learnt from around the world... bringing it back and making this place better. What you have to do is... bring to the attention of the world the best in all the ways that you have it. You’ve got it here, sell it,” Dr Hrabowski declared.
After his address, a select few of the 50 were given the opportunity to ask Dr Hrabowski wide ranging questions based on his presentation and his overall impression of the country.
But at the same time, Dr Hrabowski reminded the audience that the arts and humanities are just as important as science, mathematics and engineering. 7
50u50 recap
Dr Freeman Hrabowski’s ‘pearls of wisdom’ Dr Hrabowski delivered a stirring keynote address that encouraged all in attendance to not only strive to attain their personal goals, but the goals of the entire nation. Passionate about science education, Dr Hrabowski focused on how this field of study can help the country grow into the successful, prosperous nation we all envision. Here are some of his most notable quotes and ‘pearls of wisdom.’
“A part of innovation for us who are older is to listen to the voices of people who have been disenfranchised, to understand the challenges of children who have not had what our children have had, to see the strengths that they have and to build them up and to give them a sense of self. If a child has a sense of self and believes in herself, all things are possible.”
“You’ve got all these firsts and the best in many ways. The challenge that you face is the challenge that all societies face and that is this: to celebrate all of the high achievements and at the same time, to look in that mirror with an innovative spirit and say, ‘What else must be done?’” “It’s not just what the government does, it’s what all of us do. I like the notion of the PSOJ because they are saying, ‘We can make a difference.We can leverage what we do with what government does and we can build synergy so that we can create the jobs and push for the skills that we need.’”
“If you know anything about science, if you know anything about life, you know that when you fail, sometimes you can learn more about what needs to be done than even when you succeed; that failure can lead to more understanding of what needs to happen. The challenge that you face as you look at your policies, as you look at your approaches, is to allow these people under 50 to try new things without believing that if it doesn’t work well, its over for them.” “Because my mother was an English teacher, I read [Robert] Browning also, and so ‘Ah, that a man’s reach should exceed his grasp, Or what’s a heaven for?’ - there is the question for Jamaica: What is it that your reach should be? How should you think about innovation? How do you convince more Jamaicans to think about science and engineering in addition to the arts and humanities?”
“As you are good in track, you can be good in math and science. You have students, many of them, who will major in science and math and right now your vision is not about necessarily creating those scientists and the engineers who will change the world. I challenge you to come into this world of science and engineering.” “You want to be a country of thinkers, who are willing to ask the hard and the good questions; to look at self and to say, ‘We can do this.’ Aristotle once said that excellence is never an accident; it is the result of high intention, sincere effort and intelligent execution. It represents the wisest option among many alternatives and, finally, he said this: choice, not chance, determines your destiny. Jamaica, what do you choose?” 8
50u50 recap
The Financiers (L-R): Rezworth Burchenson, Marcus James, Patrick Hylton, Imani Duncan-Price and Philip Armstrong
The Game Changers (L-R): Michele English, Stephen Spence, Andrew Pairman, Ingrid Riley and Parris Lyew-Ayee
The Leisure Tycoons (L-R): Adam Stewart, Noel Sloely, Jr; Jacqueline Sinclair, Jason Henzell and Gregory Burrowes
The Producers (L-R): Peter McConnell, Douglas Lindo, Jeffrey Hall, Nigel Clarke and Omar Azan
The Winners Circle The Innovators (L-R): Patrice Wilson-McHugh, Andrea Kinach, Brian Jardim, Mark Hart and Zachary Harding
The Entrepreneurs (L-R): Enola Williams, Garth Walker, Marsha Smikle and Jason McKay. Missing is Oliver McIntosh.
The Educators (L-R): Kellie Magnus, Yaneek Page, Lisa Lake, Gordon Swaby and Marvin Hall
The Power Brokers (L-R): Don Wehby, Peter Melhado, Nicholas Scott and William Mahfood. Missing is Paul Scott.
The Imaginators (L-R): Alex Morrisey, Keneea Linton-George and Gary Matalon, with presenter Christopher Barnes. Missing are Solomon Sharpe and Orville ‘Shaggy’ Burrell.
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The ‘Shot’ Callers (L-R): Tyrone Wilson, Storm Saulter, Justine Henzell, Delano Forbes and Kimala Bennett
50u50 recap
Photo highlights
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50u50 recap
Photo highlights
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member focus
Everton Bryan
taking International Asset Services to the skies
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nternational Asset Services Limited started operations in 2003, created as a joint venture between the principals of RSM International, the consulting division of tax services company H & R Block and TransAmerican Financial Services, LLC, an international consulting and management firm based in Dallas, Texas. IAS is headquartered in Jamaica and has franchises in Washington, DC and St Lucia. The company started operations after purchasing a part of the portfolio of the Financial Sector Adjustment Company (FINSAC) and has grown tremendously in the nine years of its existence. The core of the company’s services is debt collection and management, which includes loan management, recovery and liquidation. These services are in high demand as the global economy continues to struggle. This is perhaps one reason IAS has grown exponentially over the past two years. The other is the ‘full speed ahead’ management style of CEO Everton Bryan, who was appointed to the position in 2010. Bryan joined the company in 2004 as a collector and was promoted to Assistant Manager within six months. One year later, he was made Manager. Under his leadership, he said, the company’s business has grown by a staggering 700 per cent. What makes this even more impressive is the fact that Bryan didn’t even finish his college courses at the Institute of Management and Production (IMP – now a part of the University College of the Caribbean). When he was promoted to the position of CEO, Bryan turned to ActionCOACH Marcia Woon Choy, a fellow PSOJ member, for guidance. “I owe everything to her. She has given me a lot of knowledge that has helped me move the company forward,” he said. One of the first things Bryan did as CEO was join the PSOJ, which he said will help IAS achieve its goal of becoming one of the fastest growing companies in the world. Bryan is envisioning more overseas franchises for IAS and forming strategic alliances with international businesses. The firm has already established a strong reputation in the Caribbean and Latin America, as well as the United States. With an overseas office already established in the US capital, further international success is not far-fetched. 12
Everton Bryan, CEO of International Asset Services Ltd
In fact, if Bryan’s total confidence in his goals for the company seems lofty, it’s probably because he is used to viewing things from above – he is a trained pilot, licensed to fly solo around the island. While training, he worked three jobs – at Carlos Café in New Kingston and at IAS, while selling insurance for Life of Jamaica (now Sagicor – which could have gotten him into hot water at IAS.) “This is the time I should get some rest,” he laughed, “but I am still pushing to achieve the goals of the company. We are trying to make a difference.” This difference also extends to philanthropy. Presently, the company supports the Elletson Road Police Station and next January, Bryan will launch the IAS Foundation, which has as its first goal a plan to help legitimise the operations of the young men on the streets of Kingston who wash car windows for a living. This will include collecting their information, providing identification and branded wear to help increase the public’s trust and also help them with skills training opportunities. “You have to create an atmosphere of hope and we will be providing assistance to help them earn an honest living,” he said.
happenings
PSOJ Ends 2012 with final Members’ Luncheon
(Left) Finance Minister, Dr Peter Phillips (Right) Kingston port, one of the areas scheduled for development under Jamaica’s Economic Reform Programme
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he Private Sector Organisation of Jamaica (PSOJ) held its final Members’ Luncheon for 2012 at the Wyndham Kingston Hotel on December 13. The keynote speaker was Dr Peter Phillips, Minister of Finance, Planning and the Public Service, who shared his thoughts on the status of Jamaica’s Economic Reform Programme, almost one year after taking office. While Dr Phillips acknowledged and spoke about the economic challenges the country is currently facing, his overall message was one of hope. “At the outset, let me acknowledge the state of apprehension that exists both inside and outside of this room about Jamaica’s future. For some, this apprehension is directly related to what they perceive as an inordinate delay in the signing of a new agreement with the IMF. In the absence of a signed agreement, they perceive the slide in the dollar and the decline in the Net International Reserves (NIR) as indicators of impending economic disaster. For others, the economic challenge is but a reflection of a far deeper malaise that robs the society of its cohesion and the capacity to unite around any national objective,” he explained. “In relation to the economic challenges, let me say that from the vantage point that I presently occupy, ‘we can overcome.’ There is no need for panic. However, let me again emphasise that, as important as the IMF agreement is to Jamaica’s macro-economic stability and the enhancement of investor confidence, it will only signal a new stage in the long, hard road to sustained growth and job creation. Over the medium to long term, the prospects for the economy remain healthy,” Dr Phillips added.
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He also spoke about the future prospects for fuelling economic growth, specifically the Economic Reform Programme (ERP) and made reference to a few areas where the government will be seeking assistance from the private sector. “Going forward, the ERP will provide significant investment opportunities in infrastructure projects, tourism, information and communication technology /business process outsourcing (ICT/BPO), energy and agriculture,” he said. There is already a roster of projects that has attracted foreign direct investment.
The infrastructure projects mentioned include: (a) The restarting of the North-South Highway Link (the old Mt Rosser bypass project); (b) Expansion of the Kingston port to accommodate large Panama ships to take advantage of the opportunities arising from the expansion of the Panama Canal, which will see Jamaica developing as a logistics hub serving the Americas; (c) Establishment of a container terminal at Fort Augusta to facilitate transshipment services and (d) Extension of the runways at the Norman Manley and Sangster International Airports to accommodate larger aircrafts For the full transcript of the address, please visit:
www.psoj.org
happenings
Members unwind at Executive Lyme The third and final Membership Mixer for 2012 was held on Wednesday, November 7 at the Grog Shoppe, Devon House. The event was well attended by members and prospective members. The food was good and the networking was lively. The success of this lyme was made possible by our sponsors, International Asset Services Limited, which provided cash; Rainforest Seafoods, Jamaica Broilers and Caribbean Producers Jamaica, which supplied products in kind and The Marketing Counselors, which did the promotional flyer.
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ceo’s report Sectoral Performance July–September 2011 to July–Sept
Sectoral Performance July–September 2011 to July–September 2012
ECONOMIC HIGHLIGHTS
Industrial Sectors
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Total GDP
2.1
0.5
-0.1
-0.2
-0.6
Goods Producing Industries 2.3 6.6 -0.2 -0.1 -2.4 Jamaica’s Economy Slips into Agriculture, Forestry & Fishing 2.2 14.7 6.5 9.5 -0.5 Double-Dip Recession Mining & Quarrying 6.6 7.3 -5.0 -10.2 -10.4 Manufacture 2.0 6.5 0.5 -1.9 -0.6 After four quarters of economic growth in 2011, he CEO’s report Construction & Installation 1.4 0.2 -5.6 -3.4 -3.5 Jamaica’s economy has again slipped into recession. Recent estimates by the Statistical Institute of Jamaica Services Industries -0.5 -0.2 -0.2 -0.3 0.0 HIGHLIGHTS Electricity & Water Supply 1.1 3.5 0.2 0.3 0.2 (STATIN) are that Jamaica’s economy contracted by Trans, Storage & Communication 3.5 -2.8 -3.1 -4.1 -2.3 –0.1 per cent in Slips January-March 2012, –0.2 Economy into then by Double-Dip Recession Wholesale & Retail Trade etc. 0.8 1.1 0.9 0.3 0.4 per cent in April—June andJamaica’s by –0.6 per cent in has July-again slippedFinance Insurance Services -1.0 -1.1 -0.6 0.0 0.8 ers of economic growth in 2011, economy into &recession. Real Estate, Renting & Business -0.5 -0.3 -0.2 -0.2 -0.2 September. As the government agency officially by the charged Statistical Institute of Jamaica (STATIN) are that Jamaica’s economy Producerscontracted of Government Services 0.4 -0.6 -0.5 -0.2 -0.2 with recording national output data, STATIN Hotels & Restaurants -0.1 1.0 0.8 3.7 2.3 in January-March 2012,over-ride then by –0.2 perprojections cent in April—June and by –0.6 per cent in estimates would earlier by the Other Services -1.5 0.0 0.0 0.3 0.4 Institute of Jamaica (PIOJ) that with economic As the Planning government agency officially charged recording national output data, Source: PIOJ had occurred in the first by twothe quarters of 2012. es wouldgrowth over-ride earlier projections Planning Institute of Jamaica (PIOJ) that The -10.4 per cent decline in Mining and Quarrying - the h had occurred in the first two quarters of 2012. The -10.4quarterly per cent decline in Mining and Quarrying - the the third continuing quarterly decline in 201 third decline in 2012 - reflected A recession is defined as two consecutive quarters continuing impact of the global slowdown on theon local bauxite/alumina industry and incr impact of the global slowdown the local bauxite/ of negative economic growth. The data for the last from newly-commissioned more efficient plants worldwide which depressed prices. The efined asthree two quarters consecutive quarters of negative economic growth. The data for the last alumina industry and increased supply from newly clearly meet these criteria and, in fact, cent and 6.5 per cent declines in alumina and bauxite production respectively, and av learly meet these and, in of fact, the contraction per ofcommissioned the Jamaicanmore efficient plants worldwide which suggest thatcriteria the contraction the suggest Jamaicanthat economy utilisation of only 37.5 per cent at Jamaica’s alumina refineries. Construction also decli ening. is worsening. depressed prices. The result 13 per and 6.5 net decre quarter in a row due to a 57.0 per cent dropwere in Housing Startscent and a substantial per cent declines in alumina and bauxite production capital expenditure. Real value added for the Manufacture industry declined by an estim cent reflecting a -0.5and per cent contraction in ‘Food, Beverages and Tobacco’. respectively, average capacity utilisation of only 37.5‘Other Man contracted by -0.7 per cent, influenced by refineries. a 13.8 per cent drop in cement production and per cent at Jamaica’s alumina
per cent and 12.8 per cent in gasoline and LPG production respectively.
Construction also declined for the third quarter in a Other Local News
row due to a 57.0 per cent drop in Housing Starts and
Net a International substantialReserve net decrease in GOJ capital expenditure. During 2012, Net Reserves declined by declined an additional -US$ Real October value added forInternational the Manufacture industry US$1,132.8 million, compared to US$1,257.8 million at the end of September 2012. by an estimated -0.6 per cent reflecting a -0.5 per monthly decline of NIR in 17 months. Since January 2012, the NIR has declined by -U cent contraction in ‘Food, Beverages and Tobacco’. This is largely due to continued net selling of the USD since May 2011 by the BO Jamaican and also the fact that contracted earners of foreign havecent, been holding r ‘Otherdollar Manufacture’ also byexchange -0.7 per into and replenishing the private market for foreign currency.
influenced by a 13.8 per cent drop in cement production and declines of 9.9 per cent and 12.8 per cent in gasoline Foreign exchange rates USand Dollar: October 2012, the Jamaican dollar depreciated by an additional $1.1 LPGDuring production respectively.
several months of testing, the Jamaican dollar finally breeched key psychological resi
Other local news
Net International Reserve During October 2012, Net International Reserves declined by an additional -US$125.0 million to The Outturn US$1,132.8 million, compared to US$1,257.8 million at r July-September 2012 for July-September 2012 The outturn for July – September 2012 shows the end per of September 2012. This is the 16th monthly July – September 2012 shows the Goods Producing Sectors contract ingthe by 2.4 cent Goods Producing Sectors contract ing by 2.4 per decline of NIR in 17 months. Since January 2012, the NIR groups contracting, while the Services Sector was flat which is an improvement on the cent with all industry groups contracting, while the has declined by -US$822.8 million. This is largely due to ng the previous quarters. Forestry andonFishing resulted from the 6.1 Servicesfour Sector was flatAgriculture, which is an improvement continued net selling of the USD since May 2011 by the in traditional export crops following the ending of quarters. the sugar crop year in June and a 0.5 the contraction during the previous four BOJ to support the Jamaican dollar and also the fact that in otherAgriculture, agricultural crops and due Fishing to drought conditions producing Forestry resulted from thein 6.1major agricultural earners of foreign exchange have been holding rather per cent decline in traditional export crops following than selling into and replenishing the private market for the ending of the sugar crop year in June and a 0.5 per foreign currency. cent decline in other agricultural crops due to drought conditions in major agricultural producing parishes. 15
ceo’s report Foreign exchange rates US Dollar: During October 2012, the Jamaican dollar depreciated by an additional $1.16 to $91.09. After several months of testing, the Jamaican dollar finally breeched key psychological resistance of US$1 = $90, and declined rapidly during October by 1.29 per cent. Inflation The rate of inflation increased by 0.96 per cent during October 2012 - the second highest rate for 2012, but well below the 1.9 per cent recorded the previous month. The main contributors to this increase were a 2.8 per cent rise in the division Housing, Water, Electricity, Gas and Other Fuels. This was due to a 5.6 per cent rise in the group ‘Water Supply and Miscellaneous Services Related to Dwelling’ while prices for ‘Electricity, Gas and Other Fuels’ rose by 4.0 per cent.
“matching events” for SMEs seeking equity investors or angel investors, and 4. Component 4 – knowledge sharing through the development of case studies and a closing workshop. d. JSE Best Practice awards The Chair advised that 17 applications for the PSOJ’s CG JSE award had been received and two applications for the Junior Market award. The applicants were shortlisted to eight, then the top three will be chosen and interviews conducted. The banquet was held on December 5. e. UNCTAD Project The CEO advised that The PSOJ was collaborating with Syntegra Change Architects in Trinidad on a research project that is being done in conjunction with the United Nations Conference on Trade and Development (UNCTAD). The Corporate Governance Disclosure Practices research project employs as the benchmark the Guidance on Good Practices in Corporate Governance Disclosures published by UNCTAD in 2006. In essence, we are assessing how companies listed on the JSE are disclosing information, through their annual reports and on their website, measuring this against the UNCTAD standard.
CORPORATE GOVERNANCE COMMITTEE
Letters had been sent to the companies listed on the main market along with a report indicating the issues that had been publicly disclosed. Companies were asked to say whether the report was deficient in any way.
a. Draft Governance Framework for the Public Sector The cmmittee was advised that Cabinet was to receive the amended framework for approval and once this is done The PSOJ should receive a copy.
JUSTICE REFORM COMMITTEE
b. Training of Directors/Round Table on CG FSC had received the proposal and it is to be discussed with the Chairman, Colin Bullock.
The committee has been disbanded.
A request had also been received from Nekeisha Smith, who was affiliated with the Institute of Internal Auditors in the Bahamas, to deliver a train-the-trainer workshop and a proposal was sent. Committee members who had been trained in the use of the IFC Board Leadership Tool Kit were asked to indicate their interest in assisting in the delivery of the workshop.
CRIME STOP The Manager of Crime Stop has reported the following data: Number of calls received in November (42) was five per cent below that of October (44). Year over year calls are up by two per cent.
c. NCB/IDB The CEO outlined The PSOJ’s role in delivering project management services for an IDB-funded project with NCB. The project would have 4 components: 1. Component 1 – deployment of a proprietary scoring model for NCB. Aspects of the scoring model would be shared with SME clients via NCB’s website 2. Component 2 – capacity building workshops and a conference for SMEs 3. Component 3 – technical assistance for 20 firms and
Number of first calls in November (39) was five per cent below October’s (41). Year over year calls are up by three per cent. Number of calls to 311 (37) was down by three per cent (from 38 in October). Compared to the corresponding period last year, number of calls are down by five per cent. 16
ceo’s report Number of web tips was down by 17 per cent (from 6 in October to 5 in November). Compared to the corresponding period last year, web tips are up by 128 per cent. There were no arrests in November, down from four in October. Year over year, the number of arrests are down by 49 per cent (37 as against 73 last year). Rewards paid out in November ($40,000) were 50 per cent below that paid on October ($80,000). Year over year, the amount paid as rewards is down by 37 per cent. No narcotics were seized in November, as against $2.5M worth in October. Rewards paid out year over year are down by 10 per cent. Communication to Members The following events were communicated to members: 1. Save the Date’ for events – Executive Lyme & Chairman’s Club Forum 2. Invitation to PSOJ Executive Ly 3. Hall of Fame – ticket solicitation 4. Address made by President Zacca at the Rotary Club of Downtown 5. Weekly advisory to view 50UnderFifty Conversations with 50 on Flow Channel 100 6. Membership Satisfaction Survey 7. 50UnderFifty – ticket solicitation Membership packages were sent to: Gas Pro Alternative Power Sources Caribbean Producer Jamaica (requested relevant documents to accompany application) Hotel Four Seasons (requested relevant documents to accompany application) Mona Geoinformatics (requested relevant documents to accompany application) Membership was approved for: - Sure Loyalty Solutions - Green Sun Energy Plus Ltd. - DHL - Indies Pharma Jamaica Ltd. - BCW Capital The following companies/individuals joined the PSOJ: - Sterling Asset Management - HRM Options Group International - Jamaica Insurance Brokers Association (JIBA)
PROJECTS: YUTE Youth Month Launch The YUTE PMO, in collaboration with the Ministry of Youth 17
and Culture, organised a series of events for the month of November, which is celebrated annually as National Youth Month. On November 1, all YUTE participants were invited to attend the launch of Nation Youth Month at the Sir Grant William Park in Downtown Kingston. Youth Professional Empowerment Session – Caribbean Maritime Institute Sixty-four participants were in attendance at the Professional Empowerment Session at the Caribbean Maritime Institute on November 2. The guest speaker, the Honourable Lisa Hanna, encouraged the participants to cultivate the skills that will allow them to capitalise on the strategic location of Jamaica within the Caribbean. In attendance was Councillor Lorraine Dobson of the Springfield Division, representatives from National Water Commission, Jamaica Trade Board, Andre’s Auto, Electrical Engineer Leighton McCarty and CMI lecturers. The participants benefitted from the small group discussions that allowed them to ask questions related to their area/s of training.
(L-R): PSOJ President, Christopher Zacca; Immediate Past President Joseph M Matalon; Minister of Youth and Culture, Lisa Hanna and a participant at the YUTE Healthy Lifestyle Expo
Hospitality Empowerment Session A Youth Month Empowerment Session was held at The Girls Guide Association on Tuesday, November 6. Approximately 50 YUTE participants from both Bars to Go and Jan’s School of Catering were invited to this session, where they were able to listen to and interact with experts in the food and beverage industry. They were treated to food and mixing demonstrations, as experts from a private catering company, Rosalina’s and bartenders from the popular casino and restaurant Acropolis, showed the participants how to make their premiere specials. The participants were also addressed by a guest speaker from the Spanish Court Hotel. Community-based church services Community-based Church Services were organised for the participants to share in the worship experience at a church in their community. The church services were held on November 11 in the communities in which Pre-skills Training Centres are established.
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members and 60 volunteers from the National Youth Service worked together to manage the day’s events.
Seven pre-skills training participants took part in the services by reading a scripture or sharing their story about the YUTE Programme. The church services were held at Antioch Assembly in Mountain View, Gracehouse Family Church in Whitfield Town, First Missionary Church in Parade Gardens, Balmagie Baptist Church in Drewsland, and the Innercity for Christ Ministries in Trench Town. YUTE PMO staff and Community Engagement Officers also attended these Church Services.
Patrons were able to apply for key services such as National Insurance numbers, the PATH programme and copies of birth certificates. Information on child protection, community participation and accessing student loans were also available. The Wellness Zone proved to be a hit, with attendees being treated to haircuts, massages and make up application, as well as a counselling corner. Dental services, eye screenings and HIV tests were also popular options. The urban garden display was also a big draw, highlighting practical ways in which persons could use recycled materials and limited urban spaces to grow crops.
Recycling Pays Workshops The Recycling Pays Workshops was held in order to sensitise the Pre-Skills Training participants about the importance of recycling, the proper disposal of waste, and the economic viability of recycling. In an effort to sensitise the Pre-Skills Training participants about the environment and recycling, workshops were conducted over a threeweek period from November 12 to November 28. Environmental groups such as the National Environmental Planning Agency (NEPA) and the Jamaica Business Development Corporation (JBDC) were solicited to conduct the workshops. Workshops were conducted in the Drewsland and Trench Town communities.
Attendees were welcomed by Mayor of Kingston Senator Angela Brown Burke, who encouraged the young persons to be committed to community building. Member of Parliament for Central Kingston, Minister Ronald Thwaites, spoke of the importance of capitalising on available opportunities, while Minister of Youth and Culture Lisa Hanna congratulated the participants for the progress they had made thus far. The day’s activities culminated in the first ever Jerk Chicken Back Grill Off, sponsored by Jamaica Broilers, which saw six participants facing off for the top prize. In the end, Yaneica Walker from the microenterprise stream emerged as the victor. Judges included Member of Parliament for St Andrew Eastern, Andre Hylton, Chef Stephen Hamilton and Restaurant Week conceptualiser and coordinator, Stephanie Scott.
NEPA focused on environmental stewardship sensitisation which heightened the participants’ awareness of protecting the environment through conservation, re-use and recycling. JBDC focused on the technical aspect of recycling such as how to reuse things that are usually thrown away. Participants were taught how to make jewellery from newspaper, magazine paper and plastic bottles. YUTE Build The signing of the Memorandum of Understanding for the YUTE Build Project was held on November 26 at Jamaica House. YUTE Build is an initiative for young women and men aged 18 to 29, with a strong interest and commitment to becoming construction professionals. Over a nine month period, participants will be guided through a comprehensive programme of skills training, certification, practical work experience and personal development coaching.
The YUTE Healthy Lifestyles Expo was made possible with the sponsorship of the National Health Fund, The CHASE Fund and the Housing Agency of Jamaica.
The Project will be sponsored by the National Housing Trust and will be conducted in collaboration with the HEART Trust NTA and the Jamaica Emergency Employment Programme (JEEP). YUTE Healthy Lifestyle Expo Approximately 550 young people aged 18 to 30 attended the first ever Youth Healthy Lifestyles Expo held on November 30. The Breezy Castle Complex hosted 30 entities, including state and non-governmental partners who provided a range of information and services connected to the theme, ‘Healthy Minds, Healthy Bodies, Healthy Communities.’ YUTE implementation team 18
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COMMERCIAL ALTERNATIVE DISPUTE RESOLUTION CENTRE (CADRC)
Dr Hutchinson spoke at the Chairman’s Club Forum on ‘Transitioning from IMF Programme to sustained private sector-led growth.’ Two years after and with Jamaica still in the throes of IMF negotiations, Dr Hutchinson shared his thoughts on ‘Dynamic Economic Growth in Jamaica at last! Some necessary conditions.’
IDB Project A Project Close-Out Workshop took place on Wednesday, December 5. The workshop included representatives of the IDB as well as the members of the Project Steering Committee and the Board of the Jamaican Institute of Arbitrators. The workshop explore the original objectives of the project, the achievement of these objectives, the management of project risks and sustainability issues. The project comes to an end on December 31, 2012. CADRC Activities The parties in the arbitration managed by the CADRC reached a settlement two days before the commencement of the four-day hearing. A meeting was held with the parties and the arbitrators are to document this settlement. The CADRC hosted two workshops in this month. Regrettably, four of the confirmed bookings for workshops during the period November to December 2012 and January 2013 were postponed. The new dates for these workshops are to be confirmed.
MARKETING AND PUBLIC RELATIONS DEPARTMENT Hall of Fame Banquet The history of the PSOJ was forever changed in the annals of time when on November 14, a female member was inducted in the Private Sector Hall of Fame – a first in twenty years! Lorna Allison Myers, Executive Chairman of Restaurants of Jamaica and Pizza Hut, was conferred the award at the Wyndham Kingston Hotel in a grand affair, which was fully subscribed. The event received excellent media exposure from both in The Gleaner and the Jamaica Observer. The PSOJ will also be publishing its usual Hall of Fame supplement. Chairman’s Club Forum Dr Gladstone Hutchinson, Director General of the Planning Institute of Jamaica (PIOJ), was the guest speaker at the Chairman’s Club Forum, which took place on Wednesday, November 21 at the Jamaica Pegasus Hotel. In September 2010, Dr Hutchinson was appointed as Director General of PIOJ to serve for two years. Shortly after his appointment,
Rita Humphries-Lewin
Mentorship Dinner The last dinner of the year was held on Thursday, November 22 at the Spanish Court Hotel. Rita Humphries-Lewin, Founder and Chairman of the Barita Group of Companies was the guest mentor at this month’s event. HumphriesLewin drew from her years of wisdom and financial savvy, which safely guided the Barita Group through many turbulent waters and shared with these mentees what it takes to be successful and remain successful in an ever changing environment. The mentees were Luciana Gordon Smith, Oneill Gordon Smith, Delano Forbes, Safiya Chisholm and Stephanie Treasure. 50UnderFifty Awards Banquet History was wonderfully recorded with the staging of the historic PSOJ/Gleaner 50UnderFifty Gala Awards Banquet on Thursday, November 29, at the Wyndham Kingston Hotel. The banquet represented the culmination of months of preparation for this event to honour the 50 awardees who were nominated as leaders who will make great contributions to Jamaica’s economic future. The event was sold out and went very well. The Host, Hon Oliver Clarke was brilliant and the guest speaker, Dr Freeman Hrabowski, was in fine form as he delivered an energetic and engaging presentation that was well received by the audience. The event received excellent publicity from its print media and main partner, The Gleaner.
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