JLP did not mismanage the IMF programme

Audley Shaw, GUEST COLUMNIST

I wish to categorically reject as reckless and irresponsible the assertion of your columnist, Dr André Haughton, that the previous International Monetary Fund (IMF) programme "went off track due to negligence and mismanagement by the previous administration".

I have stated exhaustively, both inside and outside Parliament, that the lack of reviews under the previous IMF programme was due mainly to a slower-than-programmed pace of implementation of certain structural reforms, which to this very moment remain outstanding under this present Government, despite being in office for some 19 months.

I have constantly made the point that we made a conscious decision to use additional time to consult with all stakeholders in respect of tax, pension and public-sector reform. To this end, we established parliamentary committees on tax and pension reform and commenced robust discussions with public-sector unions, as well as completed and tabled in Parliament a report on public-sector transformation.

If these were such simple matters to deal with, Dr Haughton, why is it that tax reform remains a promise for later this year? And why is it that the implementation of pension reform has been delayed until 2016? And why is it that public-sector reform remains in limbo? Is this negligence or mismanagement by the People's National Party Government? Or both?

I categorically reject this nonsensical propaganda which passes for analysis by stating once again that the previous government, in which I had the honour to serve as minister of finance, after inheriting a sick economy that had grown by a mere 0.83 per cent per annum in the previous 14 years, had to battle through a global economic crisis and still achieved the following:

Left foreign exchange reserves at US$2 billion and gross reserves at US$2.8 billion (the net international reserves have since been cut in half to less than US$1 billion).

Kept the exchange rate stable at J$86 to US$1 for more than two years. (Now it's almost J$102: US$1 and there is no world crisis).

Brought in more than US$3 billion from multilateral institutions.

At record-low interest rates, most of it at between 0.63 per cent and two per cent per annum.

Implemented game-changing fiscal initiatives such as reducing transfer tax and stamp duty, abolishing death taxes, eliminating tax on the transfer of loans, eliminating customs user fees for manufacturers, and abolishing tax on dividends. (Several of these measures have already been reversed by this Government).

Brought down interest rates to a record 30-year low with single digit. Central bank rates and mortgage rates as low as 9.39 per cent (down from 18 per cent in 2007).

Returned the economy to a growth path of 1.3 per cent in 2011 and net new jobs were being created again.

Arranged for investments in infrastructure from the Government of China, without the need for loans or government guarantees, paving the way for investment in the US$600-million North-South Highway and investment in port expansion.

We were 95 per cent compliant with the multilateral institutions, and in November 2011, just before the change of government, we were able to borrow US$318 million from the World Bank and the Inter-American Development Bank.

The above represents just a few highlights of the accomplishments of the Jamaica Labour Party (JLP) Government between 2007 and 2011 in its management of the economy. I am quite prepared to engage in a debate at the public square with Dr Haughton at a time of his choice.

Audley Shaw, MP, is opposition spokesman on finance, planning, growth and economic development. Email feedback to columns@gleanerjm.com.