Bauxite fallout detrimental
Published:Friday | November 21, 2008 | 9:45 AM
Former Prime Minister Edward Seaga, says Jamaica could be in serious economic trouble if the international automobile industry falls into a deep depression.
During a national council on youth leadership at the University of the West Indies, Mona, yesterday, he said a fallout in the automobile industry would significantly affect bauxite exports.
Bauxite is the second leading foreign exchange earner for the country behind tourism.
Mr Seaga is predicting that if bauxite exports fall, Jamaica would be in a worse economic situation than in the 1980s.
According to Mr Seaga, the situation is different since this time all countries are experiencing the economic crisis.
He says in the 1980s, when he was Prime Minister; he was able to get the United States to buy several million tonnes of bauxite.
He is predicting there will be no such help this time.
Meanwhile US politicians have told crisis-hit carmakers to come up with their own viable recovery plan if they want a US$25 billion government rescue.
The leaders of both houses of Congress said Ford, General Motors and Chrysler had until December 2 to present a plan.
House Speaker Nancy Pelosi says there would be no bailout without a plan showing that the money would make the firms financially viable.