Gov't freezes waivers, incentives

Damion Mitchell

Assistant News Editor



DENBIGH, Clarendon:

The Prime Minister Bruce Golding has announced a freeze on the granting of all waivers and incentives effective yesterday.



Mr Golding made the announcement a short while ago on day three of the 58th annual Denbigh Agri-Industrial Show now on in Clarendon.



According to Mr Golding, waivers and incentives have been costing the Government revenue equal to 14 per cent of the Gross Domestic Product (GDP).



At the same time Mr Golding says the Government has had to be borrowing money to help to run the country.



This year, the Government is targeting a 7-8 percent-reduction in the fiscal deficit.



In other words the Government is trying to reduce by 7-8 per cent, the amount of money it has to borrow to help to run the country.



Mr Golding says the Cabinet has commissioned a study to determine what waivers and incentives should ultimately be scrapped.



According to him, the committee undertaking the study is expected to present its recommendations by the end of the year, and once those recommendations are made, the Government will act on them.



In the meantime, he has sought to allay fears that the freeze on the granting of all waivers and incentives will cause disruption in the agriculture and other sectors.



Mr Golding says waivers and incentives now in effect will remain, but he is insisting that no new ones will be granted:



Mr Golding has also appealed to businesses to undertake investments in agriculture to help with the further development of the sector.