Message from the Editor
Table of CONTENTS
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When the Private Sector Organisation of Jamaica and The Gleaner launched the ‘50UnderFifty Business Leaders Shaping Jamaica’s Future’ Awards on June 6, we were delighted by the influx of nominations and entries that came in by the June 22 deadline. In fact, we have received entries long after the time for submission has passed. Unfortunately, we are not able to recognise all the people who were nominated, but we are encouraged by the work being done by the younger members of Jamaica’s business community and feel it augurs well for our economic and social development in the future. This month, we introduce you to the first group of awardees who will be honoured at the formal banquet on November 29. This group, the ‘Shot’ Callers, features five of Jamaica’s brightest talents in the media and production industry, film-makers Justine Henzell and Storm Saulter, new media pioneer Tyrone Wilson and production stalwarts Kimala Bennett and Delano Forbes. These five, ranging in age from 26 to 47, have all demonstrated that they have what it takes to elevate the quality and value of film and television content coming out of Jamaica to international standards. We are excited by the passion they each display for their craft as well as their keen interest in sharing what they have learned with members of the younger generation of film-makers and entrepreneurs. While we prepare to fete our 50UnderFifty awardees, we also prepare to say farewell to one of Jamaica’s most determined and outspoken public servants, Contractor General Greg Christie, who demits office in November after seven years. Mr Christie took the time to address the Chairman’s Club Forum in late September and spoke of the Office of the Contractor General’s achievements under his leadership, in addition to the many challenges his administration faced over the years. Corruption has severely hampered Jamaica’s economic development and it is clear that decisive action needs to be taken by all concerned - government, business interests and the average Jamaican - to clean up our act and remove the stain of being considered the most corrupt country in the Caribbean.
16 Page 19 Page 4 NEWS Power to prosecute could strengthen OCG’s mandate Page 6 MEMBER FOCUS Hart Muirhead Fatta: Partnership in action
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Page 9 COVER STORY Meet the ‘Shot’ Callers from the 50UnderFifty Awards Programme Page 14 MEET THE STAFF Introducing Kaeen Cox, new PRO Page 16 HAPPENINGS Real estate industry the key to driving economic growth
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Council holds strategic retreat Page 19 NEWS FROM THE CEO’S REPORT
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We commend Mr Christie for his tireless efforts over the past seven years and wish him all the best in his next undertaking.
Page 10 Sandra AC Glasgow CEO The Private Sector Organisation of Jamaica (PSOJ) 3
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NEWS
Power to prosecute could strengthen OCG’s mandate - Christie
Contractor General Greg Christie addressing the audience at the PSOJ’s Chairman’s Club Forum
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ontractor General Greg Christie will demit office in November, but before he steps down, Christie took some time to address members of the business community at September’s Private Sector Organisation of Jamaica’s Chairman’s Club Forum. In his address, Christie made it clear that while the Office of the Contractor General (OCG) has made significant strides under his leadership, until it is granted the power to take action against acts of corruption, it will remain a “toothless bulldog”. “Successive administrations have paid little more than lip service to corruption,” Christie said. “As Contractor General, I must admit I have become extremely despondent about… the vacuous absence of political will that is now desperately required to combat corruption and to enhance the powers of the OCG and ensure its mandates are effectively discharged.” This inertia has resulted in Jamaica receiving a 3.3 ranking on Transparency International’s corruption perception index for the past five years, where one is seen as the most corrupt and 10 the least. “Corruption is considered today by many to be the largest impediment to our country’s attainment of sustained economic growth and development,” he added.
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Christie also outlined several results that have been achieved during his tenure. “In our quest to uphold the rule of law, we have held all public officers equal before the law and, in so doing, we have successfully increased the level of compliance… with regards to the Contractor General Act and government procurement procedures,” he said. Among the improvements seen over the past seven years are: an exponential increase in the number of government contracts being monitored from 350 per annum to 11,000; 58 special investigations, 40 enquiries and 24 audits being launched, compared to only two investigations in the three years prior to Christie’s appointment; the development of an online database portal that monitors continuously updated information about the country’s 200 public bodies and the more than 600 classification of licenses routinely issued by 75 of them; and a significant reduction in the high incidence of fraud in governmental contractual agreements. “Since 2010, as many as 80 works contractors have been removed from the National Contracts Commission’s register of approved contractors, with some having been referred by us to the fraud squad for criminal investigation,” Christie noted.
Additionally, members of the public can now access more than 70,000 electronic reports from all 200 public bodies on the OCG website. Despite these strides, Christie admits that there is still significant work to be done and urged the political administration to take the requisite steps to ensure that “lucid and unambiguous” governance structures and anti-corruption frameworks are put in place. “In the circumstances, the destiny of the OCG and, whether and to what extent Jamaica will succeed, in the fight to secure probity, transparency, accountability and value for money in the award of its public contracts and to root out the scourge of corruption from its midst, is a destiny which now lies firmly not within the hands of the OCG, but within the hands of the government, our Parliament and, ultimately, in your hands - the hands of the Jamaican people,” he said. “Make no mistake about it – the challenges and the problems that I have outlined will remain for the OCG and for my successor-in-office, as long as the OCG’s many remedial recommendations to the state continue to be ignored.” PSOJ President Chris Zacca thanked the Contractor General for the work he has done to transform the OCG into a respectable anti-corruption state agency, despite “a perceived intemperance and overzealousness, which has caused him to be criticised in various segments of society.” He also supported the call for the establishment of a single anti-corruption commission, which would house the special prosecutor of corruption with the appropriate constitutional safeguards against the abuse of power. Stamping out corruption is essential to economic growth, which Jamaica has not achieved over 50 years of independence. World Bank indicates that countries that control corruption can expect, on average, a three per cent per annum increase in annual growth for enterprise. Also, one study of foreign direct investments estimates that corruption is equivalent to 20 per cent tax to foreign investors. Zacca also reiterated the PSOJ’s commitment to promoting good governance as an effective anti-corruption tool in both the private and the public sectors through the work of its Corporate Governance Committee and support of the National Integrity Action Limited. Additionally, he made it clear that the PSOJ requires nothing less than transparency in the process to appoint the Contractor General’s successor. “Transparency was the hallmark of Mr Christie’s term in office and it will be the 5
(L-R): Contractor General Greg Christie, PSOJ President Christopher Zacca and Edward Gabbidon, Vice President of Corporate and Business Sales, LIME benchmark against which his successor is chosen and eventually carries out his or her duties,” Zacca said. “We are making it clear that we do not expect to wake up one morning to the surprise announcement that a new Contractor General has been chosen. What we expect to see is the post being advertised, with a clear detailing of the experience and qualifications required and a transparent process of selecting short-listed candidates. All of this should be done against the background of a consultative approach, with the Governor General working in tandem with both the Prime Minister and the leader of the opposition.”
MEMBER FOCUS Hart Muirhead Fatta: Partnership in action
“We have been integrally involved in respect to a number of major real estate developments over the years and continue to advise a number of developers. We have assisted several clients in raising finance on the bond and equity markets, both locally and overseas and have also acted for borrowers and lenders in respect of secured and unsecured lending facilities,” said McDonald. “We also have expertise in intellectual property and pensions, with [partner] Sanya Goffe being regarded as one of the leaders in the field in pension law in Jamaica.” HMF was formed in 1990 when founding partners, Hon Hugh Hart, OJ, the late John Muirhead and George Fatta decided to combine their individual practices into one boutique firm that would provide a greater level of personal interaction with clients, while offering the advantages of operating in partnership. The firm’s capacity and reputation were enhanced when Mark Golding (now Minister of Justice) joined in 1993, followed by its first litigation partner, Conrad George, in 1997. McDonald joined HMF in 2002 and other new partners, TraceyAnn Long, Shelly-Anne Forte-Sykes, Donovan Walker, Goffe, Stuart Stimpson and Weiden Daley have come on board between 2005 and now, while Muirhead and Fatta retired in 2003 and 2008, respectively. McDonald, who practices in the commercial field, has brought his experience to bear in his work on the PSOJ’s Corporate Governance Committee. He also serves on the Jamaica Stock Exchange’s Best Practices Awards Committee, which is responsible for the JSE’s Annual Best Practices Awards, which recognise listed companies that excel in different areas of performance, including the PSOJ/JSE award for corporate governance. N Patrick McDonald, partner at Hart Muirhead Fatta
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early a decade has passed since law firm Hart Muirhead Fatta (HMF) joined the Private Sector Organisation of Jamaica and, since then, the partnership has grown from strength to strength. According to N Patrick McDonald, a partner at the firm, the PSOJ’s strong track record of research and developing concrete proposals for Jamaica’s social and economic advancement is what drew the company to sign up in the first place. Commercial law is the core of HMF’s operations, but over the years, the company has expanded into a full service law firm, branching out into litigation and developing a strong reputation in the real estate sector.
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HMF has dealt with a number of major transactions over the years, including the merger of what used to be Life of Jamaica and Island Life. This was the first time that the mechanism for the transfer of insurance business, under the Insurance Act 2001, was being utilised. Another major transaction was the acquisition of Esso’s petroleum retail and distribution operations by Total. More recently was Jamaica Money Market Brokers’ acquisition of Capital and Credit Financial Group Limited. Operating in Jamaica has not been easy, but despite the challenging economic climate, HMF has managed to increase its clientele by focusing on its mission – providing personalised service. In the future, HMF plans to concentrate on improving its operational efficiency and looking at ways to better its product offerings.
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COVER STORY
Meet the 50UnderFifty ‘Shot’ Callers: Up and coming media and production stars
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eet the first group of honourees in the Private Sector Organisation of Jamaica’s and The Gleaner’s 50UnderFifty Business Leaders Shaping Jamaica’s Future Awards programme. These ‘Shot’ Callers are all involved in media and production and have been selected for their pioneering efforts in the industry.
The 50UnderFifty Awards were developed to celebrate 50 Jamaican business leaders under 50 years of age who, based on their current contributions to the business community and the country, are expected to make a significant impact on Jamaica’s civic and business landscape in the foreseeable future. The awards programme culminates with a black tie banquet to be held on November 29. The keynote speaker will be Dr Freeman Hrabowski III, President of the University of Maryland, Baltimore County and one of TIME’s 100 Most Influential Leaders 2012. Watch ‘Conversations with 50UnderFifty’ on Flow Channel 100 on Thursdays at 9pm, with repeats on Sundays at 5:30pm and Tuesdays at 8pm.
Delano Forbes
AGE: 34 TITLE: Chief Executive Officer and TV Director COMPANY: Phase 3 Productions Delano Forbes was born into the television and film production business, but he fought the idea of making a career because of, “not wanting to do the same thing that my parents did”. He briefly toyed with the idea of architecture or becoming a pilot, but eventually entered the family business after realising it was indeed his calling. “I realised that I just could not fight the inevitable,” he stated. Forbes developed a passion for the business and fell in love with Phase 3 Productions, started by his parents Richard and Marcia Forbes in 1984. Working with the company sporadically, it wasn’t until returning to Jamaica in 2001 from studying film and television production in New York, USA, that he took on a full-time role, later achieving his master’s degree in the field. His devotion has served to grow the company exponentially, as the Campion College graduate brought a number of vibrant, cutting-edge ideas to the fullservice multimedia television and film production company, specialising in live entertainment and sports productions. “Having somewhat of an appetite to take risks, I brought some new ideas to the table, such heavy involvement in sports production and being the only private company to have a multi-camera production truck. Such a huge investment has allowed us to step up our game and expand into areas that would normally require bringing in overseas companies to deal with,” he said. Productions now have a higher quality, with original graphics and novel elements to the local television landscape. “I think we have brought some level of innovation and taken risks that are paying off, creating a more heightened sense of televisuality,” stated Forbes. The company employs approximately 20 full-time staff and 50 freelancers, with three locations in Kingston. 9
Kimala Bennett
AGE: 31 TITLE: Managing Director and Film Director COMPANY: The Business Lab and The Production Lab Extremely goal-oriented and solution-driven, Kimala Bennett always loved telling a good story in a very creative way and, with the creation of both her companies, she now has the perfect avenue to do so. In 2007, she founded The Production Lab with Melissa Llewellyn, with the aim to produce high-quality video production in a fast turnover time and on budget. The company produces numerous television commercials. “We ensure that we are always resourceful and efficient, keeping our clients happy,” Bennett stated. The Business Lab, established two years later, is a business solution company focusing on youth entrepreneurship. So far, they have published the books Starting a Business In Jamaica and The Young Entrepreneur’s Handbook. Both companies provide consistent full-time and contract employment for a number of persons. For the 31-year-old, changing the mindset of the youth to focus heavily on entrepreneurship is one of the biggest contributions she can make to the development of the nation. “Youth are now able to see entrepreneurship as a viable option, creating business models around their ideas, and to be more focused on finding solutions to problems. We also provide employment for a lot of youth,” she stated. 10
Storm Saulter
AGE: 29 TITLE: Film-maker COMPANY: New Caribbean Cinema Named in honour of an actual storm that heralded his birth, Storm Saulter fell in love with the film industry while living in Los Angeles, California, in the United States. After studying cinematography and editing at the Los Angeles Film School, he worked in the industry in both Los Angeles and New York before returning to Jamaica to start an independent film movement. A partner in the Flashpoint Film Festival, founded by his parents, Saulter is the name behind the critically acclaimed, multi-award winning Better Mus Come that has taken the independent film industry by storm as a landmark in Caribbean film-making. “I think this will be considered the next great Jamaican film to Harder They Come,” declared Saulter. A driven young man, he was among a number of independent film producers who founded the New Caribbean Cinema in 2010, a film collective organisation focused on producing high-quality films and commercials on a low budget. Ring Di Alarm is their first feature film, made up of seven short stories by different directors all set in Jamaica. In September, it had its world premiere in London, England, at the British Film Institute and now heads to the Trinidad and Tobago Film Festival. A graduate of the Mannings School, Saulter, who was always drawn to art and approaches everything with an open mind, said New Caribbean Cinema is very uncompromising in its approach to film production. “There are not that many film-makers here making films at the level that we are and operating in that unified way. The quality of our work is definitely superior and we have been able to create some very high-quality work inexpensively,” he stated. Saulter believes the creative industry is an emerging market that will have a lucrative impact on Jamaica’s economy. “This is a very inspiring and encouraging industry and offers a lot of room for growth,” he stated. 11
Tyrone Wilson
AGE: 26 TITLE: President and Chief Executive Officer COMPANY: eMedia Interactive Ltd At an age when most young men would be enjoying their youth, 22-year-old Tyrone Wilson was launching his own online company, eMedia Interactive Ltd. “I’ve always wanted to be an entrepreneur and I sought to learn from my experience in the work world. I fell in love with media while working at The Gleaner, so I decided I wanted a business that incorporated media, technology and online,” he shared. Today, the vibrant four-year-old organisation, with a staff of 20, has expanded to publishing online magazines for a wide range of companies and a $30-million PanCaribbean investment saw the April launch of the Caribbean region’s first online television, iVu tv. “We consider ourselves game-changers, very technologically driven. Always abreast of the latest technology, we make sure our website is always innovative,” Wilson said. “We try to play our part in the growth of Jamaica by providing employment, being environmentally friendly and advancing a business that is moving with the times. We are looking to open up the whole industry in online media and being quite competitive,” he said. “We will also play our part in giving back to the nation through community involvement, such as working with Governor General Sir Patrick Allen’s ‘I Believe’ initiative, and bringing computer usage and Internet access to a lot of communities.” The Jamaica College graduate who holds a Bachelor of Science degree in banking and finance from the University of the West Indies, said that when not on the job 24/7, he makes time for his big passion – basketball.
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Justine Henzell
AGE: 47 TITLE: Owner and Producer COMPANY: 1962 Productions Ltd Being born into film, the daughter of Jamaica’s premier film-maker Perry Henzell, 47-year-old Justine Henzell’s passion for the industry is no surprise. To this day, the scent of celluloid (film) brings back fond, vivid memories of being a six-year-old child sitting in the editing room with her father, joining together film ends with a splicer and joiner. That early influence is evident today in the life of the independent film producer. She has been overseeing the legacy of the award-winning movie The Harder They Come, co-written, produced and directed by her father, Perry Henzell, which continues to reach a global audience. A remake of the film is in the works for next year. The production director and one of the founders of the Calabash International Literary Festival, Henzell and her team this year staged the event as a special celebration of Jamaica 50. Last year, with Zachary Harding, she launched 1962 Productions to co-produce One People, a documentary celebrating Jamaica’s global reach in honour of the country’s 50th year of independence. “This was our way of highlighting some of the enormously talented Jamaicans across the world, who are excelling in several key areas. It was a gift to the nation,” she stated. “It is a celebration of Jamaica’s global influence. We are known for our sports, music and food, but there are Jamaicans excelling in their fields at the highest levels all over the world.”
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MEET THE STAFF
Introducing new PRO, Kareen Cox
Although the job has been hectic, Cox was welcomed into the PSOJ family and describes her colleagues as helpful. While she may be consumed with work for the PSOJ’s major programmes, these cover just one aspect of Cox’s job. She is also responsible for writing speeches, preparing press releases, managing media relations, assisting with event planning and developing an overall communication strategy for the organisation. “I really want to increase the visibility of the organisation, more so to the mainstream public,” she said. “I want to raise awareness using our website and on Facebook to draw more young businesspeople to what we do and show them how we can advocate on their behalf.” Cox has been involved in public relations since 2006, when she completed a BA in Media and Communication from the University of the West Indies. After completing her studies, she worked at a small PR and marketing company for a year, before moving on to the HEART Trust/NTA. “I worked in education, but I was doing some PR as well, although that wasn’t the focus of the job,” she said. Last year, Cox completed a rigorous dual masters degree programme in International Marketing and Communication (MA) and Communication Strategies (Msc) from London Metropolitan University and ESCEM Ecole de Management in Poitiers, France. She describes it as the best, but most difficult experience of her life. “It was a great experience meeting people from different cultures and having to immerse myself in a different culture, but I had to push myself to complete two degrees in a year, when it would normally take 18 months,” she explained.
Kareen Cox, the new PRO
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areen Cox has only been at the Private Sector Organisation of Jamaica for a few weeks, but she already feels like a seasoned employee. Cox, the PSOJ’s new Public Relations Officer, had to hit the ground running as soon as she began her first day on September 17, coming into the organisation at an extremely busy time, with preparations for the 50UnderFifty programme, among others, in full swing.
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It was even more difficult because Cox did not have family in Europe, “but the people I met and the connections I made were out of this world. I would love to go back,” she added. Returning to Jamaica, Cox was ready to get back into PR and the opportunity at the PSOJ came along at the right time. “I heard about this opportunity through a friend and thought it was the best fit for what I wanted to do,” she said. Cox, who likes the movies, reading and going to the beach when she is not at work, is settling nicely into her new role and looking forward to what lies ahead. Outside of workrelated goals, she also has her eye on another degree or a certificate in project management in the future.
HAPPENINGS
Real estate industry the key to driving economic growth
Several new members of the Realtors Association of Jamaica
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resident of the Private Sector Organisation of Jamaica, Christopher Zacca, has charged the real estate industry to help improve Jamaica’s economic growth rate, which currently averages 0.6 per cent annually.
Delivering the keynote speech at the annual general meeting of the Realtors Association of Jamaica recently, Zacca gave his thoughts on the economy and the role that the RAJ could play. He stated that for economic growth to be achieved, the country should consider a vision of a globally competitive and vibrant real estate industry that attracts and keeps both local and foreign investors. “While the performance of the economy as a whole has been at best anaemic, the real estate industry has been one of the key drivers of economic growth and job creation. In fact, in the short term, it may well be the key economic driver towards job creation,” he said. In analysing Jamaica’s GDP per capita, Zacca stated that the real estate, renting and business activities sector had performed better than the general economy over the past five years. “The sector typically accounts for 10-11% of the Jamaican economy and is, in fact, the fourth largest sector of the economy... Last year, real value-added in the sector amounted to $79.4b. This was twice the value-added created in hotels and 16
restaurants ($39.6b); more than four times the value-added created in mining and quarrying ($17.8b); about 30 per cent more than the value-added in construction ($55.65b) and 2.5 per cent more than the value-added in finance and insurance services ($77.4b),” Zacca explained. Real estate was responsible for job creation in the construction sector as well, employing some 59,000 persons in 2011, up 12,000 from January 2010 and employs more than twice the numbers of persons in financial Intermediation and more than 12 times in mining and quarrying. Zacca noted that it is the role of our government to provide the enabling environment for the private sector to grow and thrive, implementing policies that allow for transaction costs to be kept to a minimum, that support and protect property rights and that promotes competition, entrepreneurship and the effective functioning of markets. However, he also urged the RAJ to “re-examine the way it lobbies for the reforms that are critical to the growth of its industry... It is time to get serious and on the issues that have been under discussion for decades. It is time to get tough and you should not take no for an answer.” The AGM closed with the induction of 42 new members into the association.
HAPPENINGS
Council holds strategic retreat
Facilitator Nsombi Jaja discusses the group assignment
The Council discusses the dtrategic priorities for 2012 - 2014
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he new Council, chaired by President Christopher Zacca, elected by the Executive Committee on July 19, met in a one-day strategic retreat in the Belisario Suite of the Jamaica Pegasus Hotel on Saturday, September 22. The retreat was facilitated by Nsombi Jaja. Thirty-one Council members and committee chairs, working in groups, reviewed the PSOJ’s vision and mission, the key strategic issues raised at the last retreat, the 20102012 Strategy Map and the results of the strategic scorecard as at June 30, 2012. Members then validated the vision and vision statements and agreed on a revised strategy map for the period 2012–2014.
The group discusses revision of the Strategy Map
The members charged the secretariat with the responsibility of putting together a strategic plan for 2012–2014 and developing an operational plan and budget for 2013, which will be approved by the Council at its meeting in December 2012 after a review by the Officers and Executive Committee.
Pros and cons of strategic imperatives being discussed by this group
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NEWS From the CEO’s Report ECONOMIC HIGHLIGHTS
Jamaica’s economy barely grows by 0.1 per cent during April-June 2012 The Planning Institute of Jamaica (PIOJ) reported recently that the Jamaican economy barely grew in the April-June quarter (Q2), expanding by only 0.1 per cent, essentially a flat out-turn. This marks the sixth consecutive quarter of economic growth for the Jamaican economy, but as Table 1a shows, on a noticeably declining trajectory. from the CEO’s report News ECONOMIC HIGHLIGHTS The PIOJ explains the flat out-turn for Q2 is reflective of a “general Jamaica’s economy barely grows by 0.1 per cent during April-June 2012 weakening of the economy due to global and domestic developThe Planning Institute of Jamaica (PIOJ) reported recently that the Jamaican economy barely ments.” amongquarter the factors cited bybythe PIOJ for cent, the “slowgrew in the Key April-June (Q2), expanding only 0.1 per essentially a flat out-turn. This marks the sixth consecutive quarter of economic for the Jamaican economy, but down in the growth momentum in emerging andgrowth advanced econoasmies” Table 1a shows, on a noticeably declining was the prolonged crises in the trajectory. Euro-zone that had spread instability throughout global and was economy The PIOJ explains the flat the out-turn foreconomy Q2 as reflective of asapping “generalinvestor weakening of the and confidence in many countries leading restrained due to consumer global and domestic developments.” Key among the to factors cited by the At PIOJ forend the of July 2012, gross reserves were adequate to finance the “slowdown in the levels growthofmomentum in emerging and advanced was the demand, higher unemployment and reduced exports. economies” 20.56 weeks of goods imports or 15.48 weeks of goods and serprolonged crises in the Euro-zone that had spread instability throughout the global economy vices imports, still above the 12 weeks international benchmark of and was sapping investor and consumer confidence in many countries leading to restrained In Q2, higher goodslevels producing industries inand Jamaica grew marginally by 0.1 demand, of unemployment reduced exports. reserves adequacy. per cent while services industries were flat. Foreign exchange rates In Q2, goods producing industries in Jamaica grew marginally by 0.1% while Services USD: During industries were flat.
Year over year change in quarterly GDP Industrial Sectors Total GDP Goods Producing Industries Agric, Forestry & Fishing Mining & Quarrying Manufacture Construction & Installation Services Industries Electricity & Water Supply Trans, Storage & Communication Wholesale & Retail Trade etc. Finance & Insurance Services Real Estate, Renting & Business Services Producers of Government Services Hotels & Restaurants Other Services Source: PIOJ
Q2 2011 2.1
Q3 2011 0.5
Q4 2011 1.7
Q1 2012 0.6
Q2 2012 0.1
5.6 10.7 33.8 -0.4 1.4
2.6 2.9 7.7 2.1 1.4
6.0 15.0 8.0 4.7 0.1
1.4 7.0 -5.5 0.4 -0.5
0.1 8.5 -8.7 -1.0 -3.2
0.9 0.3 3.3 0.0 -0.1 0.7 0.3 2.4 0.7
-0.2 1.1 -2.0 0.1 -1.1 0.8 0.5 0.0 -0.8
0.0 3.5 -1.6 0.7 -0.7 0.5 -0.5 0.8 -0.3
0.2 0.1 -1.0 0.5 0.0 0.5 0.0 1.0 0.4
0.0 0.6 -3.5 0.5 -0.5 0.0 -0.1 5.2 0.6
Other local news Net International Reserves During July, Net International Reserves (NIR) decreased by an additional US$56.6m to US$1,483.82 m compared to US$1,540.42m at the end of June. This is the 13th monthly decline of NIR in 14 months, for a total of US$672.5m over the period. This is largely due to continued net selling of the USD since May 2011 by the BOJ to support the Jamaican dollar, which has been under increasing pressure, possibly, because of the hiatus and uncertainty in the GOJ/IMF Arrangement. 19
July, depreciation of the dollar continued at the accelerated pace of $0.99 or 1.12 per cent to $89.69 from $88.70 the previous month. This rate of depreciation is faster than $0.58 or 0.65 per cent recorded in June and faster than $0.78 or 0.89 per cent recorded in May. GBP & CAD: During July, the dollar depreciated by $1.94 or 1.40 per cent against the GBP to $140.60 from $138.66 in June. Against the CAD, the dollar also depreciated in July by $2.38 or 2.74 per cent to sell for $89.08, compared to $86.71 in July. Interest rates Though the BOJ has not yet published definitive data for July, key interest rates do not appear to have moved much during the month. At the July 25 auction, the six-month Treasury bill sold off at roughly the same rate (6.52 per cent) as the previous month. No new figures were available in July for the average lending rate (ALR), which stood at 17.46 per cent in June, the lowest level in more than 25 years, or the average saving rate, which has been stuck at 2.10 per cent since January. Inflation The rate of inflation fell by –0.33 per cent during July 2012 - the lowest rate in 16 months. This fall was due to declines in two of 12 divisions within the Consumer Price Index (CPI). A sharp –41.6 per cent drop in the communication division, resulting from the recent competitive 80 per cent cuts in mobile telephone rates by providers and a –1.4 per cent fall in the division ‘housing, water, electricity, gas and other fuels’ due to declining water and electricity rates. Nine of 10 other divisions within the CPI recorded increases.
Other local news Net International Reserves During July, Net International Reserves (NIR) decreased by an additional US$56.6m to US$1,483.82 m compared to US$1,540.42m at the end of June. This is the 13th monthly decline of NIR in 14 months, for a total of US$672.5m over the period. This is largely due to continued net selling of the USD since May 2011 by the BOJ to support the Jamaican dollar, which has been under increasing pressure, possibly, because of the hiatus and uncertainty in the GOJ/IMF Arrangement. At the end of July 2012, gross reserves were adequate to finance 20.56 weeks of goods imports or 15.48 weeks of goods and services imports, still above the 12 weeks international benchmark of reserves adequacy. Foreign exchange rates USD: During July, depreciation of the dollar continued at the accelerated pace of $0.99 or 1.12 per cent to $89.69 from $88.70 the previous month. This rate of depreciation is faster than $0.58 or 0.65 per cent recorded in June and faster than $0.78 or 0.89 per cent recorded in May. GBP & CAD: During July, the dollar depreciated by $1.94 or 1.40 per cent against the GBP to $140.60 from $138.66 in June. Against the CAD, the dollar also depreciated in July by $2.38 or 2.74 per cent to sell for $89.08, compared to $86.71 in July. Interest rates Though the BOJ has not yet published definitive data for July, key interest rates do not appear to have moved much during the month. At the July 25 auction, the six-month Treasury bill sold off at roughly the same rate (6.52 per cent) as the previous month. No new figures were available in July for the average lending rate (ALR), which stood at 17.46 per cent in June, the lowest level in more than 25 years, or the average saving rate, which has been stuck at 2.10 per cent since January. Inflation The rate of inflation fell by –0.33 per cent during July 2012 - the lowest rate in 16 months. This fall was due to declines in two of 12 divisions within the Consumer Price Index (CPI). A sharp –41.6 per cent drop in the communication division, resulting from the recent competitive 80 per cent cuts in mobile telephone rates by providers and a –1.4 per cent fall in the division ‘housing, water, electricity, gas and other fuels’ due to declining water and electricity rates. Nine of 10 other divisions within the CPI recorded increases. Fiscal Accounts During the first three months of fiscal year 2012/13, the government of Jamaica ran a fiscal deficit of –$8.805b. This deficit was 20
$1.35b less than the –$10.16b budgeted and was –$1.909b or –27.7 per cent worse than the deficit (–$6,896.0b) recorded during the corresponding three month period of 2011/12. The better than expected out-turn on the fiscal deficit resulted from higher than projected revenues ($76.59b) and lower than targeted expenditures. CORPORATE GOVERNANCE COMMITTEE The committee met on July 3 and discussed the following issues: Draft governance framework for the public sector It was reported that the work was on-going. Senator Kamina Johnson-Smith shared that the motion she had brought had dropped off the order paper. It was noted that an RFP had been submitted by the Commonwealth Secretariat looking at risk management in public bodies. It was agreed that the CEO should write to chairpersons and again to ministers advising them of the opportunity for training in corporate governance and invite Senator Mark Golding to meet with the committee at his earliest convenience. IDB Family Business (FB) Project The cases had been printed and the plan is to market these to the universities. JSE Best Practice awards Marlene Street-Forrest advised that the Best Practices Committee agreed that there will be a separate award for Junior Market companies. For each award, there will be a similar award for the Junior Market and the PSOJ will provide the awards for corporate governance.
STANDING COMMITTEE ON NATIONAL SECURITY Highlights from the meeting on July 17 are as follows: By special invitation, John Clear, Vice President, Business at Columbus Communications (Flow) and Ralph Clark, CEO of ShotSpotter Technology (SST) made a special presentation to the committee on the ShotSpotter Flex System Technology (SST). The SST senses where a shot has been discharged, determines what calibre weapon was used and the actual location the shot had been discharged. Committee members agreed that the implementation of this system would significantly reduce crime. The government has endorsed the use of this technology. Flow has enlisted the PSOJ to apply for funding from the EU for this project.
ference was to help participants assist young persons to understand the importance of making goals, helping them build self-confidence and understand the importance of values, integrity and trust. Grace McLean, Acting Permanent Secretary in the Ministry of Education outlined the objectives of the Conference as follows: Minister Ronald Thwaites, who was the keynote speaker, reminded participants that education is the primary investment for Vision 2030 and that access to quality education is the inheritance of future generations. Thwaites said the Ministry is bringing the necessary structural changes to the educational system, especially at the primary level, to improve the quality of education.
A very comprehensive document was received from the JCF, entitled ‘JCF Strategic Review Implementation Progress’, which speaks to areas that the force is seeking to address in its modernisation efforts. It was agreed that ACP John McLean, as the officer in charge of the process, will be invited to the September meeting to have more fulsome discussions with the committee on this paper. A budget will be presented to Flow for the proposed security forum in Clarendon. EDUCATION AND CSR COMMITTEE CSR Survey Initiative The full survey should be sent to all members and the results analysed before November. Presentation from the Jamaica Tertiary Education Commission (JTEC) The PSOJ received a request from Maxine Henry-Wilson, Chairman of the Jamaica Tertiary Education Commission (JTEC) to make a special presentation on the commission. This presentation took place on July 13 and was the only item discussed. Henry-Wilson informed the meeting that the JTEC has been mandated by Cabinet to be responsible for the regulation and development of the tertiary sector in Jamaica. She said that the focus of the Commission is to: streamline the registration/operations of tertiary institutions meet employer demand for qualified prospectsreposition the tertiary sector making it globally recognised, and continue to position Jamaica as a desired destination for tertiary education Meeting in August The committee did not meet in August as all committees were on recess. However, committee members continue to work on their respective action items. The focus for the committee at this point is the CSR Survey Initiative. Ministry of Education Back to School Conference Committee Chairman, Lloyd Eubank-Green, represented the PSOJ at the Ministry of Education’s back-to-school conference entitled ‘Empowering Youths Through Partnerships’. The focus of the con21
ENERGY AND ENVIRONMENT COMMITTEE The first meeting of the Energy and Environment Committee was held on August 29, with the new chair, Christopher Zacca. A decision was made to form two sub-committees looking at the policy, regulatory framework and energy efficiency, environment, alternative energy. This decision was taken due to the many issues that the committee would have to address. The TOR for the committee would be revised in order to make it more relevant an applicable to the current mandate and situation. The policy paper would be finalised by the end of September. The committee would look at financing options for energy projects, such as the Private Advisory Financing Network (PFAN) and also sustainability issues. A clear strategy for the committee would be developed over the next month.
MEMBERSHIP COMMITTEE The Membership Committee did not meet in the months of July and August, however, the judges for the 50UnderFifty Awards met in August and decided on the 50 awardees. The 50UnderFifty Planning Committee also met. Executive Lyme The second Executive Lyme was held on July 6 at the Spanish Court Hotel. The event was used as an opportunity for members to bid farewell to the outgoing president Joseph M Matalon, CD in an informal setting. Christopher Reckord, Chairman of the Membership Committee thanked Matalon on behalf of the members for three years of yeoman service and for a job well done. Incoming president, Christopher Zacca addressed the gathering saying that he was looking forward to a successful tenure. The event was sponsored by: - International Asset Services Ltd– Main Sponsor - Caribbean Producers Jamaica Ltd - Rainforest Seafoods Ltd - Jamaica Broilers Group Mentoring Entrepreneurial Leaders On August 23, the Membership Committee hosted the 12th in the series of intimate dinners at the Spanish Court Hotel. The mentor for the evening was Brian Jardim, CEO of Rainforest Seafoods and co-founder of Margaritaville. Rainforest Seafoods was also the evening’s sponsor and Roger Lyn, Marketing Manager as well as PSOJ President, Christopher Zacca, CEO Sandra Glasgow and Christopher Reckord, Chair of the Membership Committee, along with six young entrepreneurs, were in rapt attention as Jardim shared the fascinating story of his emergence as one of Jamaica’s most successful entrepreneurs. TRADE POLICY COMMITTEE (TPC) For the January to April period, Jamaica imported goods amounting to US$2,095.8m an increase of US$39.0m or 1.9 per cent, of which US$21.7m was imported by the Jamaica Free Zone. Total exports for the period were US$627.6m, up from US$567.8m in the corresponding period last year, an increase of US$59.8m. The Jamaica Free Zone accounted for US$20.6m of the US$627.6m exported during the 2012 period. For the four months under review, Jamaica recorded a trade deficit of US$1,468.2m, down from US$1,489.0m recorded in the January to April 2011 period. The United States of America (USA) remained Jamaica’s main trading partner, with imports worth US$762.9m and total exports of US$248.2m being traded with that country. Jamaica’s trade deficit with the USA was US$514.7m, compared to US$338.2m in the January to April 2011 period. Total traditional domestic exports accounted for a larger share of domestic exports during the review period, representing 56.5 per 22
cent versus 55.4 per cent in January to April 2011 period. Earnings from manufacturing represented the highest increase, rising during the 2012 period by US$25.6m or 39.4 per cent and was valued at US$90.7m. Events The second meeting of the CARIFORUM/EU EPA Trade and Development Committee and the CARIFO-RUM/EU EPA Ministerial Council are scheduled to be held in Port-of-Spain in September and Brussels in October respectively. A CARICOM/Dominican Republic Trade Council Meeting is scheduled for October as a follow-up to the meeting held from May 31 to June 21, which sought to resolve market access issues in trade in goods. PROJECTS YUTE YUTE Pre- Skills – Jamaica Foundation for Life Long Learning (JFLL Assessment) On August 14, 21 individuals from Drewsland took the JFLL Secondary Assessment. This was done in an attempt to increase the current number of Pre-Skills Training participants attending class. Thirteen of the participants would qualify for Pre-Skills Training, of which 10 will be placed at Level 4 and two at Level 3. A similar assessment was done with 31 participants from Jones Town, Rose Town and Trench Town on August 23. YUTE JA50 Event – Legacy 2012 – A look at JA50 through the eyes of our YUTE Participants The Dynamic Life Foundation team started conducting JA50 workshops at the Pre-Skills Training Centres on August 8. These workshops prepared participants for the YUTE JA50 event grand finale, which took place on September 6 at the Louise Bennett Garden Theatre. There were 12 presentations from each of the current classes. Before the grand finale, there were ‘YUTE in the Community’ events where the Pre-Skills Training participants were afforded the opportunity to showcase their JA50 pieces to their communities.
Fullgram interviews As at August 15, a total of 113 participants have been trained by Fullgram Solutions and 91 have received job placements. Sixty-one YUTE participants were scheduled for interview at Fullgram Solutions on August 23 and 24, of which 26 were selected for training. Pre-Skills Training Support To assist with the coordination of the YUTE Pre-Skills Training activities, the YUTE PMO partnered with the National Youth Service (NYS) to hire its participants as Pre-Skills Training Support for a period of three and a half weeks. There were eight NYS participants assigned to one or more Pre-Skills Trainer(s) who is being paid a stipend of $1,000 to $2,000 on a weekly basis.
Building out the cosmetics business model On August 29, the EO met with the cosmetic sales team from T Geddes Grant to consider the activities in building out a cosmetics business model. The information from this exercise will be complemented by a cosmetics market survey to be conducted during the month of September. Upcoming Events Restaurant Week press conference – October 4 (YUTE participants to work as waiters). COMMERCIAL ALTERNATIVE DISPUTE RESOLUTION CENTRE (CADRC)
Jamaica Productivity Centre & Pre-Skills The Jamaica Productivity Centre had expressed an interest in doing soft skill presentations for the YUTE Pre-Skills Training Programme. They were given this opportunity on August 21, where Tenneisha Hibbert-Nelson and Kimberly Whyte did a presentation on the topic ‘Productivity and You’. YUTE Entrepreneurship Junior Achievement training Junior Achievement training continues at the following locations: 1. There are two groups benefitting from Junior Achievement Training at the Rockfort Pre-Skills Centre. One group meets on Tuesdays between the hours of 9am–12pm and the second group meets on Thursdays between 10am and 12pm. 2. Two Junior Achievement groups are currently receiving training at the Parade Gardens Pre-Skills. The session for Level 4 participants is held on Wednesdays from 9am and 12pm and the session for participants who started the programme at levels 1, 2 or 3 is held on Wednesdays in the afternoon. 3. Junior Achievement Training has begun at the Trench Town Pre-Skills Centres. Two groups are receiving training: one group meets on Mondays between 9sm and 12pm and a second group meets on Tuesdays in the afternoon. Micro-Franchise Potential Micro-franchise Opportunity On August 2, the YUTE PMO met with Jeffrey Hall, Managing Director of Jamaica Producers, to discuss the possibility of partnering together to distribute ripe bananas and banana chips. Further discussions took place on August 28 with David Martin and Kenia Mattis. The YUTE PMO is awaiting feedback from Jamaica Producers. Micro-Franchise Information Meeting The YUTE PMO hosted an information meeting for the Jamaica Micro-franchise Project on August 15 at the St Andrew High School for Girls. Fifty-one persons attended the meeting, with 42 completing registration forms. Thirty-one attendees indicated that they would attend the Entrepreneurship Preparedness Workshop on August 20 and 21. 23
In our continued efforts to promote the centre and the matching grant programme, two interviews were conducted in July and August. Justice Roy Anderson was interviewed on the programme ‘Real Business’ with Ralston Hyman aired on Power 106 FM Radio on July 9. Also, Sandra Glasgow and Justice Roy Anderson were interviewed on the programme ‘On the Agenda’ with Ronald Mason aired on Nationwide 90 FM Radio on August 31. A detailed piece on the matching grant programme was featured in the August edition of this eZine. Visual and Performing Arts Jamaica (VPAJ) has been promoting the grant programme on their website. The matching grant programme flyer was circulated to approximately 500 SMEs during this period. As a result, one individual has contacted the centre and a formal letter with the necessary instructions and forms has been sent, awaiting feedback. To date, we have received 27 calls regarding disputes since the implementation of the public relations campaign.
ister Golding enclosing letter dated July 19 co-signed by the DRF and the PSOJ indicating that the DRF and the PSOJ are committed to work for the good of Jamaica and to support the Ministry of Justice in reforming the domestic and international arbitral framework for Jamaica.
IDB and DBJ The CADRC submitted a letter dated July 27 to the IDB requesting a revision of the Milestone Table to reflect the installation of video conferencing facility and one matching grant approved. We received IDB’s letter dated August 14 indicating that the bank will adjust the Milestone Table to read: five SMEs access matching grants, Arbitration Act drafted and the video conferencing facility installed. This milestone is due September 30. Additionally, the CADRC submitted a letter dated August 13, formally requesting the bank’s non-objection to a revision of the budget to reallocate the matching grant of US$20,000 to cover other expenses such as the total amount of Anne Marie Bonner’s salary from January to March 2012, Andreen McKenzie-Lee’s salary from April to June 2012 and other project expenses. We are still awaiting the bank’s feedback. The MIF online project status report was completed and submitted on July 31. The report was reviewed and we have been advised to include in the report the ‘knowledge products’ of the project and then re-submit the report. We have received DBJ’s second tranche of US$20,000 from the total amount of US$60,000 received for the marketing and communication programme and the matching grant programme to promote the centre. Referral Agency Status & Arbitration Act A letter dated August 9 was sent to the Chief Justice, Zalia McCalla acknowledging receipt of her letter dated June 22 and advising that the CADRC is reviewing the contents of the letter and the requested information to be submitted early September. A letter dated August 22 was sent to Minister Mark Golding informing him that the project that established the CADRC is coming to a close and as part of the closing activities, we are required to provide the IDB with an update on the drafting of the New Arbitration Act. We are awaiting the Minister’s written response providing an update on any further developments, as well as a copy of the latest version of the draft Act, for submission to the IDB. Additionally, a cover letter dated August 22 was sent to Min24
ADR Services A letter dated July 16 was sent to Caribbean Villa Restaurant & Lounge advising that the CADRC was pleased that our involvement in a dispute concerning a tailoring company assisted them to resolve their business dispute amicably. Letter dated July 31 was sent to Shandav Auto Limited advising that the centre was unable to get all the parties involved to sign a mediation agreement as a result our efforts to conduct any kind of mediation was abandoned. These cases are now closed. A meeting was held with DCC and New Media Studios on July 13 to review the mock-up of CADRC new website. The hearings for the arbitration managed by the CADRC are confirmed for the second week of September. The CADRC had three confirmed bookings for the month of July, two for workshops and one for consultation. EU BANANA SUPPORT PROGRAMME – ST JAMES YOUTH TRAINING AND JOB PLACEMENT PROJECT The third batch of training was completed at the Maldon facility at the end of August. Due to a shortage of HEART trainers, training has not yet begun at the Cambridge facility. A letter has been drafted to Carolyn Hayle, Executive Director of the HEART Trust/NTA, requesting an intervention in the training challenges at Cambridge. One option would be to contract trainers outside of HEART to undertake the training at the Cambridge facility. Chilon Whyte, the project liaison officer, has sent the CVs for two possible trainers and a decision is to be made to contract them. A job fair was held in August for the Cambridge community to recruit possible employees for GGS. More than 20 persons were recruited and their names submitted to GGS, which also submitted the names of 100 persons to be placed on the internship programme. Moveta Munroe of the Office of the Prime Minister confirmed that the payment of the next tranche of CDF funds for the project would be made by September 15. Sixty persons have received training so far under the project and 100 persons indicated for the internship programme by GGS.
CDB PROJECT: IMPROVING CARICOM MARKET ACCESS FOR JAMAICAN GOODS AND SERVICES There were delays in obtaining the required number of expressions of interests from consultants for each project activity. This resulted in the late start-up of the project. Initial reports submitted by consultants were not adequate and revisions and further consultations were requested in keeping with the consultants’ TORs. The consultants submitted revised reports as requested. Revision of consultants’ reports and recommendations for improvements were done jointly by the PSOJ Project Manager, Omar Chedda and June Griffin, CDB’s CART Fund consultant. CDB approved the final reports and all payments made to consultants. The final payments to the website and market access database developer, Mendel Verlag, were not made. The main issue for the market access database was the time period for the collection of the information for 14 countries. The TOR developed by the CDB indicated 30 days for data collection. The consultant explained that trade databases take over a year to populate with all the required data, and that the required framework was developed for this project which could be further enhanced over a period of time. After the submission of the final report by Trevor Hamilton and Associates, CDB did not approve the trade mission as originally agreed in the project contract for the private sector mechanism because they did not think this activity was still necessary because of the establishment of a trade desk in Trinidad by the JCC. 25
June Griffin, CDB’s CART Fund consultant, met with Glasgow and Omar Chedda on August 15 to discuss the status of the project. She recommended the formation of a working group with JEA, JAMPRO and JMA to determine the next steps for the project and to make recommendations for improvements to the market access database and website, which were found not to be satisfactory. A working group was formed with the JEA, JAMPRO and JMA and two meetings were held on August 23 and 30, in which a TOR was finalised and preliminary recommendations made to improve the market access database and website. The working group also recommended the next steps for the project in order to achieve the project objectives as follows. Specific market research for specific companies for processed foods for St Lucia, Barbados and Trinidad as a part of the preparatory work for a trade mission to these countries to meet with specific distributors; to sensitise consumers of specific Jamaican products and to meet with trade agencies to resolve challenges faced by Jamaican exporters. Packaging or labelling workshop for the UK market. A detailed plan for the market research and trade mission with selected companies will be finalised for the next meeting.