Identifier
Created
Classification
Origin
06KINGSTON647
2006-04-03 18:03:00
UNCLASSIFIED
Embassy Kingston
Cable title:
KINGSTON POL/ECON ROUNDUP: MARCH 18 - MARCH 31,
how-toVZCZCXRO0830 RR RUEHGR DE RUEHKG #0647/01 0931803 ZNR UUUUU ZZH R 031803Z APR 06 FM AMEMBASSY KINGSTON TO RUEHC/SECSTATE WASHDC 2536 INFO RUCNCOM/EC CARICOM COLLECTIVE RUEHAO/AMCONSUL CURACAO 0159 RHEFDIA/DIA WASHDC RUEABND/DEA HQS WASHINGTON DC RUMIAAA/CDR USSOUTHCOM MIAMI FL RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 02 KINGSTON 000647
SIPDIS
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
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL EFIN ECON EINV PHUM ELAB KHIV JM
SUBJECT: KINGSTON POL/ECON ROUNDUP: MARCH 18 - MARCH 31,
2006
Ref: A. Kingston 555
B. Kingston 633
KINGSTON 00000647 001.2 OF 002
UNCLAS SECTION 01 OF 02 KINGSTON 000647
SIPDIS
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
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL EFIN ECON EINV PHUM ELAB KHIV JM
SUBJECT: KINGSTON POL/ECON ROUNDUP: MARCH 18 - MARCH 31,
2006
Ref: A. Kingston 555
B. Kingston 633
KINGSTON 00000647 001.2 OF 002
1. This week's topics:
-- New Prime Minister Sworn In
-- Economic Policy Stability
-- Cement Industry Developments
-- Labor Relations
-- Revised Sugar Production Target for `05/`06
--------------
New Prime Minister Sworn In
--------------
2. On March 30, Portia Simpson Miller, was sworn in as Prime
Minister by Governor-General, Professor Kenneth Hall. She
became Jamaica's seventh Prime Minister and the first female
to hold the position at an outdoor ceremony at King's House
in front of a crowd estimated to be between 6,000-10,000.
The former Prime Minister PJ Patterson stepped down earlier
the same day. Simpson Miller was previously Minister of
Local Government, Sports and Environment. At midnight on
March 31, Prime Minister Simpson Miller announced her
cabinet (Septel).
--------------
Economic Policy Stability
--------------
3. Newly installed Prime Minister Simpson Miller has kept
Dr. Omar Davies as Minister of Finance and Planning, which
comes as no surprise. Dr. Davies is generally well regarded
for his efforts to impose fiscal responsibility in order to
bring down the national debt and keep inflation and interest
rates under control. A meeting with officials from the
Fiscal Policy Unit at the Ministry of Finance and Planning
indicated that this year's budget will contain no surprises,
although they acknowledged that the dream of a balanced
budget will have to wait at least another year. The
expenditure budget will be announced on April 12.
--------------
Cement Industry Developments
--------------
4. The embattled Carib Cement Company Limited (CCCL)
continues to reel from the twin blows of insufficient supply
and the detection of substandard quality product. While the
removal of a 25 percent surcharge on imported cement is
beginning to address the national shortage that has crippled
the construction sector island-wide (Ref A),the quality
issue may yet prove the more serious blow. Rumors are
swirling that CCCL intends to "mix" new batches of cement
with the old, faulty batches, a claim that the company
strenuously denies.
--------------
Labor Relations
--------------
5. Amid a variety of fractious labor disputes over the past
several months (Ref B),the public sector Memorandum of
Understanding (MoU) expired on March 31, without reaching
consensus. The Jamaica Teachers Association pulled out of
negotiations last week amid wage disagreements, calling the
GOJ's offer an "insult." Nevertheless, the public sector
unions and the government are confident that an agreement
will be reached very soon, ideally before the budget is
announced on April 12.
--------------
Revised Sugar Production Target for `05/`06
--------------
KINGSTON 00000647 002.2 OF 002
6. The state-owned Sugar Company of Jamaica (SCJ),which
accounts for approximately eighty percent of the industry's
output, has revised its `05/`06 raw sugar production target
from 130,000 metric tons (MT) to 115,000 MT. Industry
experts are skeptical of this projection and expect SCJ's
target to be further reduced to about 100,000 MT in the
coming weeks, and actual SCJ output to be in the
neighborhood of 90,000 MT. The ailing industry is heading
for a third consecutive year of record low production.
Output is projected at 130,000 MT, 15,000 MT below Jamaica's
145 MT quota obligations (EU 126,000 MT and US 19,000 MT).
Domestic consumption will be fulfilled from imports, as in
recent years. SCJ's CEO, Livingstone Morrison, attributed
the decline to unfavorable weather conditions during
harvesting that affected crop quality.
SIPDIS
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
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL EFIN ECON EINV PHUM ELAB KHIV JM
SUBJECT: KINGSTON POL/ECON ROUNDUP: MARCH 18 - MARCH 31,
2006
Ref: A. Kingston 555
B. Kingston 633
KINGSTON 00000647 001.2 OF 002
1. This week's topics:
-- New Prime Minister Sworn In
-- Economic Policy Stability
-- Cement Industry Developments
-- Labor Relations
-- Revised Sugar Production Target for `05/`06
--------------
New Prime Minister Sworn In
--------------
2. On March 30, Portia Simpson Miller, was sworn in as Prime
Minister by Governor-General, Professor Kenneth Hall. She
became Jamaica's seventh Prime Minister and the first female
to hold the position at an outdoor ceremony at King's House
in front of a crowd estimated to be between 6,000-10,000.
The former Prime Minister PJ Patterson stepped down earlier
the same day. Simpson Miller was previously Minister of
Local Government, Sports and Environment. At midnight on
March 31, Prime Minister Simpson Miller announced her
cabinet (Septel).
--------------
Economic Policy Stability
--------------
3. Newly installed Prime Minister Simpson Miller has kept
Dr. Omar Davies as Minister of Finance and Planning, which
comes as no surprise. Dr. Davies is generally well regarded
for his efforts to impose fiscal responsibility in order to
bring down the national debt and keep inflation and interest
rates under control. A meeting with officials from the
Fiscal Policy Unit at the Ministry of Finance and Planning
indicated that this year's budget will contain no surprises,
although they acknowledged that the dream of a balanced
budget will have to wait at least another year. The
expenditure budget will be announced on April 12.
--------------
Cement Industry Developments
--------------
4. The embattled Carib Cement Company Limited (CCCL)
continues to reel from the twin blows of insufficient supply
and the detection of substandard quality product. While the
removal of a 25 percent surcharge on imported cement is
beginning to address the national shortage that has crippled
the construction sector island-wide (Ref A),the quality
issue may yet prove the more serious blow. Rumors are
swirling that CCCL intends to "mix" new batches of cement
with the old, faulty batches, a claim that the company
strenuously denies.
--------------
Labor Relations
--------------
5. Amid a variety of fractious labor disputes over the past
several months (Ref B),the public sector Memorandum of
Understanding (MoU) expired on March 31, without reaching
consensus. The Jamaica Teachers Association pulled out of
negotiations last week amid wage disagreements, calling the
GOJ's offer an "insult." Nevertheless, the public sector
unions and the government are confident that an agreement
will be reached very soon, ideally before the budget is
announced on April 12.
--------------
Revised Sugar Production Target for `05/`06
--------------
KINGSTON 00000647 002.2 OF 002
6. The state-owned Sugar Company of Jamaica (SCJ),which
accounts for approximately eighty percent of the industry's
output, has revised its `05/`06 raw sugar production target
from 130,000 metric tons (MT) to 115,000 MT. Industry
experts are skeptical of this projection and expect SCJ's
target to be further reduced to about 100,000 MT in the
coming weeks, and actual SCJ output to be in the
neighborhood of 90,000 MT. The ailing industry is heading
for a third consecutive year of record low production.
Output is projected at 130,000 MT, 15,000 MT below Jamaica's
145 MT quota obligations (EU 126,000 MT and US 19,000 MT).
Domestic consumption will be fulfilled from imports, as in
recent years. SCJ's CEO, Livingstone Morrison, attributed
the decline to unfavorable weather conditions during
harvesting that affected crop quality.