Slow going: Golding says international offshore centre far off

OPPOSITION SENATOR Mark Golding has characterised the Jamaica International Financial Services Authority Act as worthless.

The bill, which was passed by the Senate last Friday, is intended to form part of the framework for the creation of an offshore financial sector in downtown, Kingston.

"I must confess to be rather disappointed with the bill considering that this idea has been pursued for over three years.

"I feel that the bill that has come before us is a disappointment in terms of the content and where it can take us at this time," Golding said.

He argued promoting Jamaica as a destination for international financial services could be done through JAMPRO rather than any new legislation.

"This bill is not going to create an international financial services industry for Jamaica. In order for that to happen we are going to have to have far, far more, " Golding said.

He added: "What we are going to need is a raft of modern business-friendly legislation to create an enabling legal framework."

Golding argued a tax framework would have to be put in place which would encourage international investors to use Jamaica as a jurisdiction as an offshore destination.

"The nuts and bolts of establishing an international offshore centre do now exist and it would be a long time coming if it ever does come.

"And if it ever does come I don't see anything thus far to suggest that it will generate the kind of economic activity and jobs that we hope for, but be that as it may, I would like to be proven wrong in this regard so I wish the government well in this initiative" Golding said.

Important step for Jamaica

However, Government senator Kamina Johnson Smith charged that Golding's comments amounted to "an unhelpful approach to national development."

"It is an important step for this administration and it is an important step for the nation," Johnson Smith said.

She argued that the government was unable to act sooner in establishing the financial centre because it was beset by crisis after crisis.

Government senator Arthur Williams also rose in support of the bill. He said the process is going to take some time and argued that a continuous strengthening of the regulatory framework is necessary.

"What we had done here is to make an important start to that process... it is not going to come overnight," Williams said.

Leader of Government business Dorothy Lightbourne, who piloted the bill, said approximately eight bills dealing with the establishment of the financial centre are being drafted and a draftsperson has been specially retained to prepare them.

"This is a start. I think we should move on, other pieces of legislation are being drafted to support and strengthen this," Lightbourne said.

The bill speaks not only to the establishment of the authority but also to how administrative matters would be dealt with such as the payment of pension and gratuities and the appointment of a chief executive officer and other employees.

The bill, which was passed in the House of Representatives in February, was passed in the Senate without amendments as there were no draftsmen in the Chamber on Friday.

No reason was given for the absence of the draftsmen who would be needed to make any amendment.