PSOJ tells NWC to fix inefficiencies instead of competing with private sector
KINGSTON, Jamaica — The Private Sector Organisation of Jamaica (PSOJ) has expressed concerned with recent media reports outlining that the National Water Commission (NWC) is positioning itself to compete with private sector interests through the production of retail branded bottled water.
The PSOJ said it is concerned that this move could possibly create distortions in the market, resulting in disinvestment, and is of the view that the NWC should instead, focus its resources on providing an efficient water supply system, which it has been mandated to do as a public-sector monopoly.
Paul Scott, PSOJ President, expressed that “the PSOJ is disturbed that this has been proposed by the NWC, and hopes that the government sees the folly in this move and prevents it from happening.”
He said public sector organisations, especially essential monopolies, can compete unfairly by being less efficient but offer lower prices, and will not only pass on that inefficiency to tax payers but also negatively impact the private sector market players.
This, he added, would also greatly affect productivity, jobs and ultimately create a market distortion that would keep capital out of the market.
Scott further noted that “NWC is already being kept operational by tax payers even though the water distribution system is very inefficient; the NWC should therefore focus on finding solutions to fixing these inefficiencies and providing lower cost water to the country, thereby reducing the tax burden, instead of trying to compete in the private market.”
The PSOJ is urging the Government to give the assurance to current and potential investors, that they are not in support of public sector entities being involved in private sector activities, as this would prove detrimental to the growing business confidence being experienced.