Government senator Don Wehby made his contribution to the State of the Nation Debate in Gordon House on Friday (December 8).

Below is his presentation in full: 

The State of the Nation debate plays a significant role in this Honourable House.

It is an opportunity for us to reflect on our country’s performance; the economy and its impact on the lives of our people, the social infrastructure, and the governance structure under which all aspects of the country operate. 

It is a time for us to listen to each other and pull from the discussions the actionable outcomes that will propel Jamaica forward to taking its place as the best country in the world.

Mr President, very often you have heard me refer to our Vision 2030, and I will make my contribution today in the context of “Vision 2030- Hope & Prosperity for All Jamaicans”. Vision 2030’s objective is to make Jamaica the place of choice to live, work, raise families, and do business”.

Where we are coming from

Mr President, the debt to GDP ratio has been very high over the years. 

Commonly referred to as the FINSAC era, in 1991/1992 the debt to GDP ratio peaked to 193.5 per cent of GDP and interest rates were as high as 60 per cent.

Many Jamaican-owned companies changed ownership to non-Jamaican owned companies during that time.

Jamaicans lost our entrepreneurial spirit and innovation to do business. Borrowing to repay our debt crippled the economy. 

Our weak economic policies and lack of fiscal discipline cost us dearly.

High debt left little resources to spend enough on social services such as health, education, and crime prevention. Jamaicans have worked too hard, public sector workers have made too many sacrifices for us to reverse the gains made to reduce our debt and improve our economic outlook. We cannot forget where we are coming from! We must never go back there. We cannot borrow our way out of our problems, we must grow our way out.

Mr President, we cannot truly achieve our Vision 2030 aspirations until we attain economic independence. Economic independence has evaded us for many years, certainly the younger generation only know a Jamaica riddled by high debt and low economic growth. 

This government is intent on changing that narrative by sowing the seeds now, so the generations to come will reap the fruits of a bright future. That is why it is important to remind the younger generation of where we are coming from, so they can understand where we are going.

Where we are now

The government of Jamaica over the last decade has made significant strides to change our outlook as a country. With the policies put in place and proper execution, we are creating a future of Economic Independence where our citizens can enjoy first world infrastructure,- better roads, transportation, affordable health care and education, green spaces, safety, and security.

The debt servicing ratio is now at 78 per cent, which means we are on track to reducing the debt to GDP ratio to 60 per cent by FY2027/28.

This is well ahead of the Vision 2030 timeline. So, when I look at where we were in say 2015, and where we are now, I can say we have made significant progress.

Key economic indicators comparison 2015 vs 2023

Stable exchange rate

I recall when the exchange rate was the political football. However, over the last five-year period from February 2018-2023, the Jamaican dollar recorded an average annual depreciation of 4.1 per cent against the United States dollar. This is the lowest of any five-year period in the last 25 years from 1998 to 2023.

All the economic indicators are the best it has ever been in the history of our country.

These indicators must be placed in the context of approximately three years of the COVID-19 pandemic, the worst global health crisis we have ever seen in our lifetime.

Mr President, over the period 2020- 2021 during the COVID-19 crisis, our resilience as a country was tested to extreme limits. With God guarding us with his mighty hand and the wisdom he bestowed on our leaders we surmounted the challenges. We made it to the other side stronger together.

Mr President, instead of spending 60 cents of every dollar to pay debts, now we are only spending 30 cents— so now we have 70 cents of each dollar to spend on better roads, transportation, affordable health care, education, and security.

Mr President, to add to the issues we have faced there has been a significant increase in inflation globally. Every Jamaican is feeling the effect. To borrow a quote to put the situation in context, “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”

So essentially people’s disposable income is less, and it is purchasing less goods and services than what the average household could purchase a few years ago. Inflation is affecting countries right across the world. At the height of the recent inflation surge in the United States, inflation was 9.1 per cent, the worst it had been in 40 years. In the UK, inflation was clocking at 6.7 per cent.

Mr President, based on the impact of inflation, one of the key priorities is to reduce inflation and stabilise the Jamaican dollar. The Bank of Jamaica has been working to bring inflation within target and I want to congratulate the Governor and his team for their management of inflation in a difficult economic environment. 

As at November, Jamaica’s inflation rate was 5.1 per cent well within the inflation target of 4-6 per cent. This is compared to a rate of 10.3 per cent in 2022, so it is trending down. I’m hoping with inflation trending in the right direction for Jamaica we will see a lowering of interest rates to enhance the productive sector going forward.

I understand the impact of inflation and I know it is a hard time for many Jamaicans who have to “stretch every dollar to make ends meet. But this is not just in Jamaica, it is a worldwide phenomenon. I want to recognise Prime Minister Andrew Holness and the government for listening. It is a good trait of a leader, when that leader listens to the criticism and takes steps to make a difference. So, the cries of the people are being heard and the government is working to remove the pain points to ensure that all Jamaicans, not just some—ALL Jamaicans can reap the benefits of the hard work, the sacrifice, the blood, sweat and tears that have brought us to where we are today.

If we continue to work together, we can achieve our Vision 2030 aspiration. The best is yet to come!

CARE Programme

Despite the world economic conditions as mentioned earlier the government supported Jamaicans facing challenges through the CARE programme (Covid Allocation of Resources for Employees). The largest social programme in Jamaica’s history.

But the government hasn’t stopped there. It continues to roll out additional initiatives to expand the reach of the assistance to our people and improve the quality of their lives. In this regard, the government has been easing the pressure on parents finding school fees and related expenses:

•  Students from PATH households can access grants towards their education, a total cost of J$252 million. An additional J$380 million was set aside to cover the cost of school transportation to PATH beneficiaries,

•  J$3 million back-to-school support programme for each of the 63 constituencies,

• Interest rates on Student Loan Bureau loans were reduced by two per cent,

• A total of 1,000 STEM scholarships will be provided over five years at a total cost of J$2.4 billion. These STEM scholarships will be used to support Jamaicans from low-income households,

• “Give a man a fish you feed him for a day, teach him how to fish, you feed him for a lifetime” – No more HEART/NSTA fees- Jamaicans have free access to vocational training in keeping with the government’s commitment to increasing the skilled labour force,

• Our teachers are also being upskilled so they can train the future generations to have the knowledge and skills to contribute meaningfully to the growth of Jamaica as a place of choice to live. Full tuition scholarships will be provided to 1,250 new STEM teachers over the next five years,

• Over 1,000 parents will receive support this year through training in parenting,

• The government has also expanded the social pension programme,

Mr President, I was pleased to hear that come next year, the government will double the gross salary of public sector workers at the lower end of the wage scale.

Housing

Mr President, every Jamaican’s dream is to own their own home.

It creates a sense of pride and accomplishment, and this government has committed to making dreams a reality by providing 70,000 homes across the island under its affordable housing programme.

My understanding is that over 81 per cent of this target will be achieved over the next four years with over 52,000 units at various stages of the development process. This is in addition to the housing that is provided under the Social Housing Programme. This Social Housing Programme is aimed at bringing hope to those who are living in substandard conditions by providing them with a dignified living space. Over the time the programme has been in place 154 units have been delivered across the island.

This government is making housing accessible for all, one house at a time, one title at a time as we move closer to making Vision 2030 a reality. This is being done through increase in access to housing grants and reduction in interest rates for NHT mortgages. Under the Systematic Land Registration Programme which commenced in 2021, the National Land Agency has issued over 8,000 titles to Jamaicans. This is part of a three-year initiative to issue 20,000 titles. The government is committed to creating practical benefits for the people of Jamaica from the improved economic performance.

Family life

Caring for the people of Jamaica is not just about financial assistance but also about ensuring that this government supports quality family life for Jamaicans. A demonstration of this is the introduction of paternity leave for public sector workers and the extension of maternity leave to 60 days. In addition, adoption leave is now available for 20 working days in recognition of the diversity of the family structure in Jamaica.

Unemployment insurance

Mr President, the government is moving to complete the pre-requisites for the development of an unemployment insurance scheme. This will further bolster the social protection framework for workers. It provides a safety net of income support while persons during their search for new employment. I commend Minister Pearnel Charles Jnr. for his focus on this critical area.

These initiatives are putting us on the path towards achieving Vision 2030 – Hope & Prosperity for All Jamaicans

Mr President, making Jamaica a place where persons can live comfortably requires investing in the country’s infrastructure. This government is ensuring we all reap the benefits of a better economy.

• In terms of transportation 200 electric buses are being provided on a phased basis over a three-year period. The recent announcement by the government of a reduction in bus fares is a welcome initiative to ease the effects of inflation,

•  Additional garbage trucks are being deployed to support solid waste management,

• Road infrastructure is being improved across several projects under the to our road network SPARK Programme, a J$40 billion investment. Over 2,000 roads will be rehabilitated. Modern infrastructure is necessary to facilitate the economic development of the country. The Montego Bay Perimeter Road Project which was funded from our own treasury is a big compliment to the government.

These initiatives algin with the Vision 2030, in terms of reliable, sustainable, and resilient infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all Jamaicans.

All that I have highlighted would not have been possible or even imaginable unless the economy of Jamaica was being properly managed in a responsible fiscal manner.

Capital expenditure

Mr President, there has been a lot of discussion on both sides of the House about the efficiency of our public procurement process and there seems to be consensus that improvement is needed.

Capital expenditure is vital for increasing the productive capacity of the economy as I have mentioned.

Unfortunately, procurement processes have hampered the deployment of funding for much needed capital projects, it seems there is still an issue with red tape in getting approvals. 

As you are aware, based on accounting procedures in government if you don’t use it you lose it. I have raised the issue before in this House last year and I don’t have the exact numbers to date in terms of Ministry of National Security expenditure, but it must be a priority. I want to again call for a comprehensive review of why capital budgets are not being utilised and how we can get back on track to ensure budgetary allocation are fully disbursed.

I was happy to hear that the Minister of Finance [Nigel Clarke] has committed to amending the Procurement Act to increase the effectiveness of the procurement system and I am in full support of that commitment.

I also believe that we need the right resources with proper training and skillsets to implement capital projects. The objectives for capital programmes must be Specific Measurable Achievable Realistic and Time bound.

Crime

Mr President, all of us in this Senate will agree that we love our country. I strongly believe that every well thinking Jamaican wants their children and children’s, children to grow up in a safe society. There is a lot that is right about Jamaica, but I cannot deny that crime continues to be a significant challenge.

Every opportunity I get, I want to thank the members of the security forces, the JCF and the JDF for their commitment to protect and serve. We must stand in solidarity with the security forces against the scourge of crime in our island. The security forces need the resources and a robust legislative framework to assist them in the fight against crime.

I still believe the SOEs is one tool in the toolbox to fight the crime problem, and I have seen the positive impact it has made in restoring a sense of security in crime-riddled communities. There are also deep issues, social issues that we need to address, to eradicate crime, but it’s not going to happen overnight.

We know the Government alone cannot solve the social issues we face as a country; the private sector must get involved. I want to commend the Private Sector Organisation of Jamaica which has embarked on an initiative called Project STAR, the largest ever privately led social transformation project in Jamaica focused on building communities through an ‘all of society’ approach.

Agriculture & food security

Mr President, one of the areas I am passionate about which is being discussed all over the world is the issue of food security. I want to commend the Minister of Agriculture [Floyd Green] on the Eat Jamaica Campaign which seeks to boost food security and sustainable farming practices.

I have said on many occasions that Jamaica needs to cut its import bill from US$1 billion to US$500 million by 2030. To achieve this, we need more import substitution. The right policies, business environment and incentives will provide the backing to attain this target. We must increase production to improve food security, raise productivity and create sustainable value-added food products.

We must train and develop our human capital to improve productivity significantly. We must roll in the red tape and roll out the red carpet for our local farmers, manufacturers and other businesses so they can build capacity to produce domestic goods at a reasonable price and increase local consumption and for export. 

I want to take this opportunity to congratulate Senator Aubyn Hill on the work he is doing as Minister for Industry, Investment & Commerce to grow exports. For the first time in several decades the country had a surplus in its current account. This means Jamaica is a net exporter of goods and services. For the first half of this year, earnings form exports increased by 30 per cent over the same period last year. I support the Senator Hill’s commitment to grow all sectors including small businesses so Jamaica can compete on a global scale, diversify its economy and fuel economic growth.

The other point I’d like to raise in relation to agriculture and food security is praedial larceny. It is a huge problem in the agricultural sector. I gleaned from several newspaper reports that on an annual basis, over $8 billion in goods have been stolen from farmers, one sector player indicated it could be up to five times this amount.

The loss of income and livelihood from theft, forces farmers them to seek alternate income sources outside the agriculture sector and pursuing careers in farming becomes unattractive. 

The effect of praedial larceny is to threaten food security and the stability of rural farming communities. While combating praedial larceny requires a combination of measures, I am heartened that harsher penalties will be imposed to curb the persistence of this type of theft. At the same time there must be proper enforcement of the legislation to send a clear message that praedial larceny will not be tolerated. The agricultural warden programme will also be key to getting the issue of praedial larceny under control.

Brand Jamaica

Mr President, I could not complete my contribution today without speaking about Brand Jamaica. We must protect and harness the power of Brand Jamaica and use it to our advantage. I am therefore extremely pleased that Cabinet approved the development of a Nation Brand Strategy and Brand Identity for Jamaica. Brand Jamaica is a valuable asset that has great potential to extra value for us as a country.

Mr President, this leads me to another area that I am passionate about, sports.

Sports

Sports is a very key aspect of Brand Jamaica. We have a rich culture, heritage and legacy as a country which others have recognised. Jamaica is home to the world’s best athletes. Our Vision 2030 includes a long-term strategic plan for sports in Jamaica. It is built on a number of key elements which strengthen the role of sports in economic, social and cultural development by addressing all aspects of:

• opportunities to participate in recreational and competitive sports;
• the number of sporting facilities for use at all levels;
• the number of trained coaches and administrators;
• strengthening the institutions for sport education;
• establishment and modification of policies, legislation,
• and regulations to promote sport.

I want to commend the Minister of Sport [Olivia Grange], on the work her ministry has spearheaded to improve the benefits for eligible national athletes under the Jamaica Athletes Insurance Plan.

A National Sports Sector Policy was developed and from my research that policy was in the process of being revised. If we are to achieve the Vision 2030 the policy needs to be prioritised, we need clear objectives and the initiatives and the KPIs to measure success.

The focus areas that resonate with me for the policy are:

1) Business opportunities for the entrepreneur,

2) Sports tourism,

3) Sports for peace (the role of sports in reducing crime),

4) Athlete development (valuing our assets).

Estimates are that the North America sports market will reach US$83 billion by 2023. Sports is big business and could be a significant economic driver for Jamaica. The English Premier League, for example, recently signed a multi-billion-dollar domestic television rights deal.

I also want to comment on the Greenfield Stadium. It has been recognised time and time again as having a major role in the development of sports tourism. The stadium is an asset but based on the data I was able to find it was costing taxpayers about $50 million dollars per year in operating expenses, and little opportunities to generate funds for its maintenance.

My vision of the possibilities for the stadium are world class, with an Olympic-size running track and swimming pool. We can capitalise on our year-round warm climate and the proximity of the stadium to major hotels on the north coast for sports tourism.

The stadium has the most beautiful view of the Caribbean Sea. The stadium can be utilised to host training camps for athletes and host international events.

We have some of the best coaches in the world right here in Jamaica, Glen Mills and Stephen Francis, and this can be a competitive advantage.

So, I am still looking forward to the development of the facility – making it a world-class venue ready to host amateur and professional sports bodies both local and overseas at the highest level. I was very pleased to hear that plans are underway for the first phase of the development and I want to congratulate Minister Grange for her commitment to getting it done.

I believe that a public/private sector partnership can make this vision a reality. When we think about some of the large sporting brands that have benefited from the strength of brand Jamaica, I think it would be appropriate for them to reinvest in our sports infrastructure in the development of the stadium.

I am also suggesting that it would be most appropriate to rename the Greenfield Stadium the Usain Bolt Stadium, in honor of the world’s fastest man who hails from Trelawny in which the stadium is located.

Closing

Mr President, I’d like to end my contribution today, how I started, with the Vision 2030. I believe if we work together our future is bright and we can make Jamaica the place of choice to live, work, raise families and do business. I have a dream about the Jamaica we all want, the Jamaica we deserve. As echoed by one of our governorgenerals:

A Jamaica where we have equitable access to quality education and training.

A Jamaica where we can have access to timely and quality healthcare.