Statement by DAIC President Genevieve M. Astaphan at private sector meeting with the PM, Jan. 13, 2010

Hon. Prime Minister Mr. Roosevelt Skerrit, Ministers of Government, invited guests, good morning.

Let me first of all thank you for inviting the DAIC to meet with you and your team to dialogue on the way forward in finding and implementing workable solutions to the cost of living and other matters affecting the advancement of our national economy.  We welcome the dialogue with Government.

We recognize the need for frequent and constructive dialogue between government and the private sector. That will allow the parties to merge all efforts in achieving the objective of providing a favorable environment whereby both local and foreign investors can flourish and at the same time provide better services as well as better prices to the general public, on whom whose dollar we depend in order to survive.  However, we must not lose sight of the reality that a number of global factors impact severely on our economy.

We also need to end the cycle of distrust which exists between the private and public sectors as this only succeeds in placing barriers towards results oriented dialogue.  The time has come where we as a people need to move to the next level whereby we begin to implement the policies which are beneficial to our national interest instead of just talking or writing policy papers about them.

I will outline a few areas where the DAIC believes changes can be made to the benefit of all.

–    Currently, our bills of lading include both the local and ocean freight charges with the total being paid directly to the shipping lines.
–    We also have had flat landing fees charged for 20’ and 40’ containers which have not been adjusted over the past six plus years to take into consideration the reduction in port fees granted to the shipping lines since August 11, 2003.

In the Prime Minister’s speech at La plaine he promised a 20% reduction in the port fees within his 1st 100 days in office.  However, to avoid a repeat of the past, we strongly recommend that the method of billing at the port be changed whereby the Importer will pay all local charges directly to the port authority and not to the shipping line, as presently done.

Should the current approach be continued then the only beneficiaries will be the shipping lines and not the Country at large.

The second item promised by the Prime Minister is the free time allowance which he promised to increase from 5 to 7 days.  I believe the only thing standing in the way of implementing this 100 day promise is cabinet’s amendment of SRO #2 of 2009. I trust we can see this item become a reality soonest.

As we await ASYCUDA world, I would like to call upon the Customs department to improve its efficiency within the current system.  The processing of duty free declarations has been moved over to the Customs department but the same issues still remain whereby, only one officer has been assigned that role of dealing with these matters.  If that officer is absent from work, unnecessary delays arise, as the paperwork cannot get processed.

There has been much talk about reviewing profit margins etc. We would like to caution against this approach as we believe this to be treading on a very slippery slope.  Telling/legistlating how much markup a business is allowed to make will only succeed in driving away potential business investors.  We are of the view that open and fair competition and I stress fair on the market is the best determinant of effective price management.

Another of the items to be covered within the Prime Minister’s first 100 days in office was to set up an employment agency.  Whilst we commend government efforts to provide the appropriate training, thus making persons more marketable in their quest to find employment, the DAIC is curious as to what model government plans to utilize to implement the unemployment allowance.  It is my understanding persons would be eligible once they have been unemployed for a period of 3 months and would continue for up to six months if the person still remains unemployed.

Government also needs to be efficient in its operations and reduce costs through increasing productivity within the sector, keeping projects within the specified budgets, adhering to the tender process and eliminating waste and the abuse of its resources by its employees.

The list of recommendations is endless but I know that time is limited and will conclude by saying that I look forward to presenting the DAIC’s 2010 agenda in further detail at a subsequent meeting with the Honorable Prime Minister, Minister of Trade among others in order to further enhance an enabling environment which will allow for more private sector investment.  This agenda includes Income Tax reform, the Magistracy/Courts and fair trading practices.

Thank you

Genevieve M. Astaphan
President – DAIC