Electricity's domino effect

The Editor, Sir:

The most pressing problem facing the country at this time is not crime and violence, but the arrangement that we have with the Jamaica Public Service. The first chief executive officer under the new arrangement, Charles Matthews, had told us from very early that a time was coming when many Jamaicans would not be able to afford electricity, and it seems we did not believe him. How could it be otherwise, given the kind of contract that his company was able to secure with the Government of Jamaica?

How could we have agreed to an arrangement that exposed the entire economy to the kind of disaster that we are now facing, and why did it take so long for us to realise that the situation was unsustainable, and take timely steps to correct it? The Jamaica Manufacturers Association, Jamaica Hotel and Tourist Association, the Jamaica Exporters Association, and numerous other consumers have been complaining bitterly for a long time, and more recently, the Spanish ambassador to Jamaica has added his voice to the chorus. God bless Jesus.

Severe cash-flow problems

By the time the cost of electricity is factored into the prices of even the most basic goods, half of them get left at the cash register and of those people who are able to pay their own electricity bills, they can hardly buy anything else. As the disposable dollar is being taken away, businesses are losing their customers, resulting in severe cash-flow problems and as they struggle to pay their own exorbitant electricity bills, they find it extremely difficult to pay anyone else, including their staff. Even taxes become hard to pay. The domino effect takes over and before you know it, corruption sets in.

As economic activity slows down with demand, so will revenue collection and this time, enforcement will not be of much help. We must address this problem urgently. We will not meet the International Monetary Fund conditionalities if we don't.

It is also in the JPS's interest that this matter be resolved as soon as possible as the current arrangement is leading to a stalemate. It is quite possible to arrive at a modified contract that will allow all concerned to make a reasonable return on their investment.

I am, etc.,

VICTOR NUGENT

St Ann's Bay