Senate gives nod to SEZ Bill
The Senate on Friday approved legislation to implement a regulatory framework for the setting up and operation of Special Economic Zones (SEZs) around the island.
The SEZ Bill, which repeals the Jamaica Export Free Zones Act, also makes way for necessary changes to related legislation which may be affected by its implementation.
Additionally, an authority and a fund are to be put in place to support the development which is expected to come from the activities of these zones.
Justice Minister Senator Mark Golding pointed out that although the SEZ Bill will ensure that Jamaica is in conformity with the World Trade Organisation (WTO) agreement on Subsidies and Countervailing Measures by the December 15 deadline, the legislation is “much more than a reaction” to that imperative.
He argued that the regime was an “exciting opportunity” for investment, employment and growth, and will allow domestic suppliers to become part of the global supply chain.
Opposition Senator Kavan Gayle voiced his full support for the Bill, noting that it was long in coming. At the same time, he argued that the Ministry of Labour must be a part of the team at the negotiating table with the investors who the Government wants to attract for these zones.
“The Ministry of Labour is only brought in to treat with the work permit and when a dispute arises, and I’m suggesting that the Ministry of Labour must be present in these consultations to ensure that foreign investors understand our labour market and appreciate the labour standards that are in place, and to be there to ensure that the investment that is supposed to take place, the working condition and the climate, and that the labour standards are adhered to,” he stated.
Government Senator Norman Grant called for special attention to be paid to rural areas when these zones are being set up. “The categorisation of the rural areas as special economic zones will repatriate some of the wealth that has left the rural areas over a period of time and slow down the rural-urban drift,” he said.
Another Opposition senator, Robert Montague, also supported the idea of linking rural areas as an integral part of the development process. “What you want to do is entice the developer of a special economic zone to go into these areas, so there ought to be a regime to say, if you go into Mavis Bank or Dallas Mountain, there ought to be an additional benefit. So if the developer is going to be in a rural area where there will be an additional cost to carry electricity, water, roads, there should be an extra incentive,” he explained.
He also suggested that certain services should be reserved for Jamaican businesses, such as those in the restaurant industry. “For example, the concessionary supply of gas (fuel) in the zone, those things should be reserved for Jamaican-owned businesses,” he said.
SEZs form an important pillar of the Government’s logistics hub initiative to link logistics services and facilitate the participation of small- and medium-sized businesses in the export sector.