Phillip Paulwell | Navigating the looming crisis with big ideas

Recently, while in London, I attended the play Get Up Stand Up, reflecting the life and music of the legend, Robert Nesta Marley. I was supremely proud of that experience, even becoming emotional, especially as I witnessed the audience, rocking and vibrating to the Jamaican music and seeming to understand our language. The greatness of Bob and Jamaica was on show. We are a cultural superpower. Anywhere in the world you go, Jamaica as a country is known, and it is due to our greatness. Why then can’t we achieve greatness in other aspects of our lives?

I really believe that we have to use the occasion of our 60th anniversary to work towards the Jamaican dream. I am disappointed that so far, we have not seen it fit to use this diamond jubilee as an opportunity to advance some major transformational projects, some Big Ideas that will lead to major development projects to benefit our people.

At the turn of the century, the then Government promulgated many millennium projects. These included the major highways across the East-West and the North-South corridors, massive airport development that transformed the Montego Bay airport into a Caribbean hub, major hotel projects, revolutionary telecommunications development, etc.

TWIN CRISES

Now we are experiencing the twin crises of the pandemic and the Russian war with Ukraine, and it is felt that we have to batten down and be fiscally conservative. I believe otherwise. Now is the time to be bold and pursue transformational projects that will enable us to catch up to the targets of the Vision 2030 master plan for Jamaica to see exponential growth in its economy, with greater wealth created to enable our per capita income to approach First World status.

It is still possible for many big ideas to emanate during this year by both sides of the aisle working together. The development and implementation of such bold ideas and plans need not be characterised with the usual unending disputes and conflicts. We can pre-empt this by a deliberate strategy that must be led by the Government to have meaningful and effective consultation to embrace, from the outset, the views and cooperation of the Opposition.

Then to rid ourselves of the usual suspicion of graft by ensuring that all aspects of such projects are constantly monitored and scrutinised by the Public Administration and Appropriations Committee that is chaired by the Opposition. That should only require an amendment to parliamentary Standing Orders. Such a change will work for both the Opposition and the Government regardless of the swing of the pendulum of power. Let that be a bold big idea.

We are facing yet again, another energy crisis. This is probably worse than those of the ‘70s and the period 2008-2010. We are hearing cries from everyone about higher electricity bills and even more dramatic and weekly record-breaking price increases for the fuels that we use. The JPSCO is complaining that it has become a tax collections agency of the Government, and the same claim can be made of Petrojam and gas retail dealers. In the face of this great crisis, the Government continues to engorge itself on the billions of taxes collected.

CAPPING TAX ON FUEL

I support the calls by the leader of the Opposition and our spokesman on finance for capping the tax component on the fuel by using the Government’s own benchmark price established in this year’s Budget at US$67. But I also see the JPSCO’s CEO proposing to cut the taxes on electricity bills which make up 16 per cent of such bills. I support this call as well.

The Government has announced a 20 per cent discount for JPSCO’s customers for four months. Four months! Really? Prices have already increased beyond 40 per cent since the start of the year. The least the Government could do is to extend the concession for the entire year. I also wish to propose that the existing waiver of $4.56 per litre on automotive diesel oil that was granted to electricity generators and that will expire on April 30 be extended into the foreseeable future.

The issue of oil supply arises here. I think that the only realistic and reliable source of crude oil and finished products is Venezuela. But Venezuela is currently under US sanctions, so the Government is not going to violate that. But there is another approach that will require the Government employing good diplomatic skills.

In 2013 when the US government had expressed great reservations about the Petrocaribe Agreement, there was discernible concern in Washington about the growing close relationship between Venezuela and certain CARICOM states. We were asked to attend a summit in Washington to discuss the issues. The summit was chaired by then Vice President Joe Biden, and Prime Minister Portia Simpson Miller and I represented Jamaica.

SPEAK CERTAIN TRUTHS

We used the opportunity to speak certain truths to our American friends. We not only defended our position to continue with the Petrocaribe arrangement, but we also challenged the US administration to assist us with our energy-security issues.

As the sanctions remain a block to any trade with Venezuela, it is now necessary for the Government to approach our US friends requesting special dispensation to overcome the sanctions. It will be necessary for us to have access to the largest oil and gas reserves that exist in Venezuela during this crisis.

Speaking of big ideas, The Gleaner’s editorial of December 27, 2021, regarding the use of bauxite residue for the extraction of very valuable rare earth elements recalls when this project was conceived in 2014. Jamaica’s estimated 100 million tonnes of red mud bauxite residue was envisioned to contain viable levels of several rare earth elements. We established a state-of-the-art pilot plant financed by a US$5 million investment that is now totally ours. This facility can be used to conduct a wide range of related experiments. That is a big idea that will benefit Jamaica. Can we do this too?

- Phillip Paulwell is member of parliament for Kingston East and Port Royal and former minister of science, technology, energy, and mining. He is the managing director of Cite Consulting Services Limited. Send feedback to columns@gleanerjm.com.