JMEA want special fund to meet plastic ban deadline
Published:Tuesday | November 20, 2018 | 12:00 AMChristopher Serju/Gleaner Writer
The Jamaica Manufacturers and Exporters' Association (JMEA) wants the Government to offer a low-interest special fund to facilitate the necessary adjustments to business operations in order to comply with the pending ban of plastic and styrofoam products.
The ban on the import, manufacture and distribution of plastic and styrofoam products is to take effect January 1.
While the ban will undoubtedly have an adverse impact on manufacturing jobs, the JMEA welcomes the initiative for the opportunities it will present for diversification into production of healthier and environmentally friendly value added. However, it believes that in the absence of protection during the transition period, local businesses could suffer serious fallout.
"For this to be successful, the Government must allow manufacturers a reasonable time frame to be protected from a flood of imports in order to make the necessary re-investments and get these new production lines in place," JMEA President Metry Seaga told a press conference on Tuesday.
He continued: "Additionally, we will require access to low-cost funds. While we have received communications that the discussions have been held by the Ministry of Economic Growth and Job Creation with EX-IM Bank and the DBJ (Development Bank of Jamaica), and that they are ready to assist, our expectation still is that a special facility will be developed with lower rates of interest to facilitate the process."
The president insisted that this is absolutely necessary if the JMEA is to maintain its momentum as the driving force for the productive sectors to advance a thriving manufacturing and export-led economy. These gains have been achieved against the hurdles of overtaxation, government bureaucracy, lack of access to finance, high interest rates, limited factory space and stifling regulations.