CEMENT CRISIS - ANOTHER FOUL-UP

By Delano Seiveright

THE MESS MASTER
Minister of Technology, Science and Commerce, the Hon. Phillip Paulwell has yet again made a mess of his portfolio responsibilities. Constant calls for Paulwell’s resignation are coming from the Opposition, some quarters of the media and some in civil society. He has incompetently watched the cement dilemma grow from a problem to a colossal crisis. The cabinet has now splintered into three opposing factions and Prime Minister Portia Simpson-Miller is being increasingly seen as ineffective, indecisive and simply unable to manage the responsibilities of her new job. She is fast becoming the national symbol of mediocrity.

CEMENT CRISIS
The cement crisis grew out of the recall, by the monopoly Caribbean Cement Company, of tens of thousands of tons of faulty cement from the local market. The recall went on to worsen the already short supply of cement from the cement company. The construction sector has since then come to a virtual halt. As many as 300,000 Jamaicans are said to have been negatively affected by the stoppage of construction activity across the island. The ripple effects of the crisis are being across the length and breadth of the society. Most construction workers and their families are now struggling to make ends meet. Already the economy has taken a direct hit. According to the Planning Institute of Jamaica (PIOJ) the current cement crisis has brought about a 6.3% decline in the construction sector during the first quarter of the year. The Financial Gleaner estimates that the cost of the crisis to the country is over $100 million per day. This to some industry leaders is a very conservative estimate.

INCOMPETENCE
Despite the painful consequences of the crisis thus far Minister Paulwell has shown a level of incompetence and nonchalance that boggles the mind. The May 17, 2006 Gleaner editorial noted that the cement crisis is, “… the direct result of transparently bad policy on the part of Mr. Paulwell as his apparent inability to respond with alacrity and clear-headedness in the face of problems.” The May 21, 2006 Sunday Observer editorial stated that, “The government, through a recalcitrant minister of industry, Mr Phillip Paulwell, and a rather preppy and officious minister of development Colin Campbell, has flip-flopped through the cement crisis at the expense of the country.” Prime Minister Portia Simpson-Miller has also deservingly so taken some hits. Her management of the first real crisis since her ascension to the top job is absolutely atrocious. The Sunday Observer editorial noted that, “The intervention of Prime Minister Portia Simpson Miller in the cement catastrophe, we believe, is an early indication of poor crisis management by her government and her personally.”

SERIES OF BLUNDERS
Blunders are not new to Minister Paulwell, his performance over the years as Minister of Technology, Science and Commerce has been marked by tremendous failure. He is now being touted as the Minister of Waste and Mismanagement. Now rivaling his equally profligate boss Prime Minister Portia Simpson-Miller.
The NETSERV scandal for instance saw over $200 million of public (INTECH Fund) funds going up in smoke.
The INTECH fund scandal is another major foul-up. Both Minister Paulwell and now Minister of Information and Development Colin Campbell had mismanaged the INTECH Fund. It was originally created in the late 1990s from the sale of cellular licenses to help develop the information technology industry. It is now being funded from a tax on incoming overseas calls. The gross mismanagement of the fund has led to the loss of almost $1 billion, which includes, the renowned Netserv $200-million swindle.
The promised creation of 40,000 jobs by Minister Paulwell in the Call Centre sector has also turned out to be farce. The industry is yet to have 10,000 employees, despite the promise being made years ago.

DOLLY HOUSE MANAGEMENT
Prime Minister Portia Simpson-Miller and her cabinet have again illustrated their inability to proficiently manage the affairs of our country. The most rudimentary problems seem to automatically fester into unimaginable crises in the space of a few days or weeks. Yet despite these crises, no one is held accountable.

For how much longer can Jamaicans continue to allow this government to play dolly house with our country’s affairs?

SLB ON THE WRONG PATH

By Delano Seiveright

The government’s recent decision to cut the interest rate of the Student Loans Bureau (SLB) loans from 16% to 12% is not good enough. An interest rate of 12% on loans to largely young people eager to attain tertiary level education is unnecessarily high. Incidentally, the grand proclamation of the interest rate reduction by the Finance Minister came at almost the same time that it was announced that tuition fees for UWI will be increased by 8%.

It is becoming increasingly evident that poor Jamaicans will continue to experience serious difficulties accessing tertiary level education. Tertiary students and those aspiring to gain tertiary education are not in any way asking for hand outs, we would simply appreciate it if government could find innovative and less costly ways of breaking down the barriers to accessing tertiary education.

Recommendations
One recommendation is to further reduce SLB interest rates to single digits. This would aid in turning dreams of attaining tertiary education a reality for that very large and marginalized segment of society.
A second recommendation is for the government to initiate the process of overhauling the operations of the SLB. Most persons who have had to interact with the SLB realize that the agency is inefficient and a bit chaotic.
A third recommendation is to prioritize expenditure. It is an ignominy for the SLB to build new uptown office space for its self costing over $360 million. $360 million in grants and student loans could fund well over 3,000 current and new tertiary students for a year.
Other recommendations include lengthening the time for loan repayment and making the recent reduction in interest rates retroactive.

Judging by recent pronouncements and trends it is becoming increasingly apparent that the value of tertiary education in Jamaica is being diluted. Though early childhood education is in need of substantial amounts of resources and must become the priority; this does not necessitate the negation of tertiary level education. An education system strong at one end and weak at another will not necessarily redound to the overall benefit of the society.

The government must therefore act quickly as the ball now in their court.