New EGC Initiatives to Spur Economic Growth and Improved Security in Jamaica – Joe Issa

Businessman Joe Issa has said that the initiatives of the Economic Growth Council (EGC) led by banker Michael Lee-Chin could spur growth in the economy and improvements in national security.

Welcoming in Lee-Chin’s initiative, the inclusion of the Jamaica Defence Force (JDF), which partners with Issa’s PICA portfolio as chairman to secure Jamaica’s borders, he says the initiative could stimulate improvements in national security and the business environment.

A product of the EGC announced by chairman, Lee Chin, the multi-sector initiative aims to formulate a comprehensive and integrated approach to national security and the business environment.

In responding to questions about the initiative which, in addition of the JDF, includes the key Ministries of National Security, Justice, and Economic Growth and Job Creation, Issa says “we all have to be on board, on the same page on the important matter of protecting the island’s security and business landscape.” 

Issa adds, “There are lots of issues to be resolved in both security and business facilitation…you have issues in policing crime and investigating corruption, as well in the issue of various long-delayed licenses and permits for developments,” Issa informs.

The initiative broadly covers police reform, including a new Police Act; the establishment of the Major Organised Crime and Anti-Corruption Agency (MOCA) as a separate entity (from the JCF); further improvement of the justice sector; border security; effective use of technology; and (creating) safe communities, according to the Jamaica Observer.

The areas of focus for the business environment include improvement in the licensing and permitting regimes, reduction in the development approval timeline and the establishment of public procurement regulations. 

As EGC chairman, Lee-Chin disclosed the initiative while delivering the fourth quarter for 2016, at the Jamaica Pegasus hotel in New Kingston recently. He said preserving the nation’s security “has to be at the foundation of all other things that we do.” 

Noting that the Government has appointed a National Security Advisor in the former JDF Chief of Defence Staff, Major General Antony Anderson, Lee-Chin said the EGC had consultations with several stakeholder ministries and agencies to formulate the comprehensive and integrated approach.

He also announced that three targets under the EGC’s eight initiatives, focusing on generating five per cent growth over the next four years, had been met, according to the newspaper report.

He identified the targets met as, “the tabling of the Building Bill in Parliament, the Bank of Jamaica’s (BoJ) finalisation of the terms of reference for Banking Competition Review, and amendment of the BoJ regulations to enable capital relief for portions of small and medium enterprise (SME) loans that have Development Bank of Jamaica (DBJ)-guarantee under the latter’s credit enhancement facility programme, where that provision is backed by segregated funds.”

Lee-Chin said all the targets, which had completion timelines of December 2016 and March 2017 as outlined in the EGC’s policy recommendations matrix, were met well ahead of time.

He said that the Government was ahead of schedule on work to review and reduce the Minimum Capital Test for insurance companies, while noting that the Financial Services Commission (FSC), which is undertaking the work, had a March 2017 deadline to review the capital requirements for property and casualty insurance companies, and that they had already reduced it from 250 to 150 per cent.

This, he said, has effectively “freed up $300 million...in available capital that can now flow into the productive sector,” assuring that the EGC will be working “tirelessly” with the Government to ensure the implementation of all their commitments in keeping with the new IMF agreement.