Parliament back in business Tuesday

PARLIAMENT resumes sitting on Tuesday, following a near six-week-long summer break, with signs of a robust and challenging pre-Christmas session in the making.

The main issues will continue to be related to the economy, particularly the medium term economic outlook and the Government’s efforts to ensure long term gains from its fiscal consolidation efforts over the past 3-4 months under the Extended Fund Facility agreement with the International Monetary Fund (IMF).The Government is expected to focus on the so-called “key elements” of an updated economic programme, which should establish a conceptual framework for fiscal rule to help lock in the gains from the fiscal consolidation over the longer term.The programme includes the adoption of fundamental tax reform before the next fiscal year, designed to broaden the tax base, simplify the tax system, reduce tax rates and lower economic distortions and support growth.Tax reform is programmed to commence with the Omnibus Incentive Tax Act and a Charities Bill, to be tabled before the end of September.Minister of Finance, Dr Peter Phillips, told the House of Representatives just before the start of the summer break, that he would table details on the omnibus incentive regulations as soon as it reconvenes.The tax incentives legislation is expected to replace and streamline the many existing sectoral incentive schemes with a rules-based regime for limited tax incentives.The Government is also expected to focus on a strategy to increase growth, by improving the business environment and pursuing strategic investments, as well as: further actions to make the financial sector more resilient, through enhanced supervision and monitoring, and with phased reforms of the securities dealers sector; and strengthening the social protection framework, with enhanced efforts to move recipients from welfare to work, and the recent increase in PATH benefits are among the priorities to be pursued under the economic programme this session.However, there are a number of issues less directly related to the EFF, which will be of great significance to members during this session. These include: energy matters, such as the 360-megawatt Project; the PetroCaribe agreement; Jamaica’s trade imbalance with Caricom, especially with Trinidad and Tobago; the logistics hub and the controversial Goat Islands development project; pre-winter tourism prospects; and the completion of the Jamaica Development Infrastructure Programme (JDIP) and delayed start to its successor, the Major Investment Development Programme (MIDP).The Public Administration and Appropriations Committee (PAAC) will meet on Wednesday, and the current issue is whether Chinese firm China Harbour Engineering Company (CHEC) will take up an invitation from the committee to make an appearance, to help clear up a number of issues related to JDIP.There are a number of issues pertaining to JDIP, which the PAAC says it needs to address with the assistance of CHEC. However, the question is whether the committee has the power to summon the presence of private firms, like CHEC?Among the issues CHEC’s presence could help to resolve are:A debt of over $700 million owed to Jamaican contractors for several months;The slow processing of work certificates by the China Ex Im Bank in Beijing, and the resulting holding up of several projects;The question of whether CHEC can advance payments to local contractors pending payments from China Exim Bank;And whether Government’s use of JDIP funds for Jamaica Emergency Employment Programme (JEEP), and its failure to complete JDIP projects by end of 2012, are factors contributing to the problems affecting the completion of JDIP.In July, former Minister of Transport and Works Mike Henry raised the issue of whether the Government has been channeling JDIP funds into JEEP projects. There was US$50 million (J$5 billion) left at the start of 2013/14 for the completion of the projects, many of which are stalled close to completion.Minister of Transport, Works and Housing Dr Omar Davies responded in a statement to Parliament on July 16, denying Henry’s claim and laying the blame squarely on the shoulders of the Chinese interests — CHEC and China Exim Bank. But, Opposition spokesman on Transport and Works, Karl Samuda, has insisted that the Government is to be blamed.In terms of other impending issues, the Human Resource and Social Development Committee, headed by Opposition MP, Rudy Spencer, is expected to review the regulations under which tobacco smoking was banned by the Government just prior to the break.Two very important Joint Select Committees, those reviewing the so-called Anti-Gang legislation and that reviewing the first three years’ performance of the Independent Commission of Investigations (INDECOM) will also resume sittings this session.

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Parliament back in business Tuesday