The presidents of 25 private-sector associations have repeated their claim that the interest rate policy being implemented by the central bank is "inimical to doing business, particularly in the (current) economic downturn".

However, the organisation heads seem to have accepted the often repeated position of the central bank that "interest rates will not fall on a sustained long-term basis unless the fundamentals of supply and demand for foreign exchange are addressed".

The group has also admitted that if Jamaica continues to spend more than it earns, the country will continue to face these challenges.

Specific proposals

Against that background, the Council of Presidents has decided to work with a team of specialists to offer the minister of finance specific proposals to bring down interest rates through cooperation between the Government and the private sector.

The presidents have also called on the Government to make tax reforms a priority.

"We have been on a drive over the last 18 months to push for comprehensive tax reform with much lower rates, a more robust system of administration and increased compliance by all businesses," Christopher Zacca, president of the Private Sector Organisation of Jamaica, said at a recent meeting of the group.

According to Zacca, given the economic crisis that the country and the world now faces and the attendant budgetary pressures facing the Government, the presidents should arrive at a a consensus position on tax reform by its next meeting.