I would like to commend Ian Boyne for his article in The Sunday Gleaner of December 21, 2008 entitled 'Bruce's Stimulus and Jamaica's Crisis' where he hit the nail on the head that successive Jamaican governments continue to give the private sector incentives and concessions with no conditions attached.

It is an age-old problem in Jamaica where the private sector squeals and laments that the government's economic policies are not conducive to businesses' best practice. The private sector is of the opinion that the more government's economic policies are favourable to their business, the less likely there would be lay-offs or redundancies.

With this round of the government's stimulus package, around $500 million will be made available for micro-business sector through loans at below market rates. For businesses with annual sales of $1 million that are registered to pay GCT the limit is now $3 million. Hoteliers are getting a reduction in their GCT payment and a loan facility for working capital, and finally, customs user fees on capital goods are to be removed. These are some of the incentives and concessions that our business sector will receive which is a shot in the arm that they must appreciate.

The question should be: What conditions, requirements and measurements should the Government have in place to ensure that the workers in these businesses see the benefits?

I would have hoped that this stimulus package had a list of conditions attached that would guide the business sector.

Recently, the United States Federal Government approved a $700 billion bailout package for the struggling business sector. The industries that will receive this bailout money are mainly financial institutions and the automotives sector with conditions attached to their bailout package. With this bailout financial institutions are to be guided by stricter measures in lending to customers who qualify for loans and more regulations from the Federal Government. The auto industry will get a similar assistance from its bailout with the condition to make fuel efficient cars and retool their production plants to be competitive with other auto makers.

However, there are two examples in Jamaica where companies ask for the Government's intervention in return for the protection of their employees and to remain viable. Those companies are Caribbean Cement and Red Stripe where they were given Government guarantees to restructure.

Incentives and concessions

In the case of the cement company, they asked that they be given a monopoly to expand their plant to meet the demand from cement and combat the cheap cement imported from places like Egypt and Mexico. With Red Stripe, they asked for tax breaks to improve their operations for efficiency. Therefore, if the Government is doling out these incentives and concessions, there should be some form of conditions that the Government must request.

It is refreshing that one of our journalists has taken the time to point out this side of the argument that fixing the private sector will only translate into more investment for businesses to gain and what is left will trickle down to the employees. This has not worked! The stimulus package lacked conditions attached and come next year we will have this debate again. We need to get to the stage where everyone benefits and not just the private sector.

I am, etc.,

D. BERNARD

Laughdwight@yahoo.com