KINGSTON POL/ECON ROUNDUP: DECEMBER 10 - DECEMBER

UNCLAS SECTION 01 OF 03 KINGSTON 002784 SIPDIS SENSITIVE STATE FOR WHA/CAR (BENT) AND WHA/PDA STATE ALSO FOR INL/LP (BOZZOLO),EB/TPP, AND EB/IFD STATE ALSO DOE CA/OCS/ACS/WHA (RUTH BRANSON) STATE PASS OPIC FOR TABERNAKI CUSTOMS MIAMI FOR LOWEN AND MAHABIR SANTO DOMINGO FOR FCS, FAS, AND LEGATT STATE PASS USTR FOR A. GASH-DURKIN DOJ FOR OPDAT/R LIPMAN TREASURY FOR LAMONICA E.O. 12958: N/A TAGS: PGOV PREL EFIN ECON EINV PHUM ELAB KHIV JM SUBJECT: KINGSTON POL/ECON ROUNDUP: DECEMBER 10 - DECEMBER 23, 2005 Ref: A. KINGSTON 02728 ¶1. This week's topics: -- Police Officers on Trial for Murder -- Telecommunications Company Goes Belly-up -- Electricity Thieves Cost Power Company -- Cricket World Cup -- Bauxite Industry Labor Issues -- Weak Christmas Retail Season -- Egg Farmers Seek Duty Protection -- Economic Deprivation Causes Crime -- Crime Statistics -------------- Police Officers on Trial for Murder -------------- ¶2. Six members of the Jamaica Constabulary Force's (JCF) disbanded Crime Management Unit, including Senior Superintendent Reneto Adams, were charged in connection with the killing of four people at a home in Crawle, Clarendon (Ref A). On December 12, the judge found that the prosecution failed to make a prima facie case against three of the officers and ordered the jury to free them. On December 20, the jury found the remaining three officers not guilty. It is anticipated that the officers could be back at their jobs in early 2006. -------------- Telecommunications Company Goes Belly-up -------------- ¶3. Just when the GOJ thought the information technology nightmare of 2002 was over, news has emerged that another company has failed. Between 2000 and 2002 the GOJ loaned billions of Jamaican dollars to information technology (IT) companies to increase employment. The amount of money a company was allowed to borrow was directly related to the number of Jamaicans that company employed. However, by 2001 some companies began to fold, ending with the high profile collapse of NetServ in 2002. In late 2002, Touchpoint Centres International Jamaica Ltd bought the assets of NetServ for JMD 240 million (USD 3.8 million). However, after losing its major client in September, Touchpoint laid off 200 workers and closed its operations. The GOJ has appointed a receiver to oversee the sale of the companies' assets to interested parties. -------------- Electricity Thieves Cost Power Company -------------- ¶4. The Mirant-owned Jamaica Public Service Company (JPS) has reported that electricity thieves have cost the company more that JMD 1 billion (USD 15.6 million) in revenues this year alone. The company also reported that contrary to popular belief, the theft is not limited to inner-city communities, where the service is referred to as "social electricity." Company estimates also suggest that up to one third of the half a million customers engage in some form of irregularity such as meter tampering. In an effort to stem the problem, JPS has started measuring and mapping losses, with preliminary results showing that commercial customers are the main culprits. The company also plans to use covered conductors and other measures, which will make it more difficult for persons to connect and maintain illegal lines. -------------- Cricket World Cup -------------- ¶5. With just 443 days to go until the Opening Ceremony of the 2007 Cricket World Cup, organizers still have much to do, and officials involved with preparations have hinted that some in the GOJ are "overconfident," and "lack a sense of urgency." GOJ success in staging other, much smaller events, such as the 2002 World Youth Athletic Games and the 2004 World Netball Games, have created a false optimism. Although it appears likely that the Jamaican venues will be completed ahead of the regional tournament, serious issues including travel and visa requirements, border security, event security, and infrastructure, still have yet to be adequately addressed. Tickets for the event are scheduled to go on sale in January 2006. -------------- Bauxite Industry Labor Issues -------------- ¶6. Workers at the West Indies Aluminum Company (Windalco) in Manchester returned to work yesterday after an agreement was reached regarding their action protesting cuts into their "productivity incentive." Details of the agreement have not yet been released. The Union of Technical, Administrative & Supervisory Personnel (UTASP) served a strike notice on Jamalco on behalf of 150 workers. The dispute involves overtime compensation for supervisory and clerical workers. The notice takes effect next Monday, December 26, at 9:00 pm. UTASP issued an additional notice on behalf of 250 contracted workers (for whom the union is seeking bargaining rights) who will not break the picket lines if there is a strike by the UTASP-represented employees. -------------- Weak Christmas Retail Season -------------- ¶7. Retailers are predicting that this year's Christmas shopping season could be the weakest in several years. They blame the slipping Jamaican dollar, the increase in the General Consumption Tax this year to 16.5%, and across-the- board price increases in everything from petrol to school fees. The hope is that the GOJ's provision of Christmas bonuses will spur a last-minute rush to save the season, but it seems clear that spending levels will not match last year. -------------- Egg Farmers Seek Duty Protection -------------- ¶8. Under presumed threat to the domestic egg industry, poultry farmers have chided the GOJ for its continued approval of imports of eggs, particularly liquefied egg products. The industry, which produced approximately 10.58 million dozen fresh eggs valued at JMD 947 million (USD 14.8 million),is a significant source of income for rural households along the South Central coast. Globally, Jamaica is the fifth (5th) largest market for U.S. exports of eggs and related products, amounting to USD 12 million (4.3 million Kgs.) per year. Egg farmers expect the GOJ to incorporate table eggs and related products under the existing 260 percent duty protection that is imposed on poultry. -------------- Economic Deprivation Causes Crime -------------- ¶9. A new study published by the Planning Institute of Jamaica on "Women in Prison" has cited economic deprivation as the main reason (85.7 percent) for the incarceration of females. The study showed that 86 percent of the inmates were incarcerated for drug offences and came from poor communities, living in poor households, which are generally headed by a single female. Conditions in the prison were rated negatively by 94 percent of the inmates, who cited clothing, health and meals as being poor. The study also focused on the impact of incarceration on the children of inmates. For the most part, children revealed high levels of depression, embarrassment, shame, anger, maltreatment by some caregivers and deterioration in school grades. -------------- Crime Statistics -------------- ¶10. Based on statistics provided by the Jamaica Constabulary Force (JCF),the country experienced 1,617 murders between January 1 and December 22, 2005. The previous record for murders reported in Jamaica was 1,469 in ¶2004. TIGHE #