The Editor, Sir:

In the face of the present global economic crisis, every country is putting in place some strategy and 'stimulus' to seek to preserve the jobs of most of the population, as well as to stimulate the country's economy.

Here, in Jamaica, the Government has already unfolded a plan based on the encouragement of the small business sector to accomplish these ends. However, it is a known but regrettable fact that most Jamaicans are not known for their entrepreneurial abilities, especially at the level of the mass of the population. Therefore, as the layoffs have begun to multiply, some strategy has to be devised which will utilise the unskilled as well as the skilled labour in the country. One sector of the economy which could do both is the construction industry.

A glorious opportunity

Now that the cement company has decided to reduce the price of cement, this presents a glorious opportunity for the Government to lower the cost of construction by subsidising the other main input in building, that is, steel. The construction industry could be stimulated by subsidising the price of steel. If both cement and steel are at reasonable prices, this could lead to an expansion not only in the construction industry but also in other sectors of the economy, leading to the creation of thousands of jobs. The reasons behind this suggestion are as follows:

1. The construction industry employs both skilled and unskilled labour, and so could absorb some of the labour force being laid off in the agricultural, bauxite and other industries.

2. By reducing the cost of building, this would attract funds from Jamaicans residing overseas, because one of the main reasons for Jamaicans seeking employment overseas is to be able to own a house. Remittances would therefore increase as Jamaicans overseas would grasp the opportunity of the lower cost of building to achieve their 'dream'.

3. It is an acknowledged fact that the construction industry is a main agent of the multiplier effect, especially in developing countries. Growth in the building of homes would touch and influence many other spheres of economic activity in Jamaica, e.g., cabinetmaking, and the sale of household appliances and other consumer items.

4. It should also be noted that most of the raw materials used in the production of cement are found here in Jamaica. The increased production of cement should not therefore affect seriously the demand for foreign currency. If the production of 'stresscrete' was encouraged, this could also influence the economy by reducing the demand for steel in certain kinds of buildings.

5. The revenue gained from not only the building trade itself, but also from the additional spin-offs in economic activity, would eventually compensate for the initial amount invested by the government to provide the subsidy for steel.

Jamaica has not yet been fully hit by the global recession. It would be wise to seek to forestall the inevitable.

I am, etc.,

Rev EARL THAMES

Andrews Memorial United Church,

Ward Ave

Mandeville