Paulwell wants electricity bill concession to most vulnerable extended
OPPOSITION spokesman on Mining and Energy Phillip Paulwell wants the Government to extend the 20 per cent concession on electricity bills, announced recently by Finance and Public Service Minister Dr Nigel Clarke.
“Extend the concession for the entire year, as you consider the calls we have made, and noise the JPS (Jamaica Public Service) has been making in relation to the relaxation of the tax regime specific to fuels,” the Opposition MP told Parliament Tuesday as he made his contribution to the annual sectoral debate at Gordon House.
“Honourable minister of finance must be aware that prices have already increased by more than 40 per cent since the start of the year. Therefore, a four-month respite [on electricity bills for the most vulnerable], though appreciated, is woefully inadequate,” he said, while recommending that the concession should be extended from four to 12 months.
He also urged the Government to extend the existing waiver of $4.56 per litre on automotive diesel oil, “which was granted to electricity generators and which will expire on April 30”.
Turning to the issue of energy security, Paulwell said that JPS CEO Michel Gantois has also raised the issue, and told parliamentarians it is very likely that there will be a mad scramble, by countries, to find new sources for fuels as further sanctions against Russia escalate.
“I think that the only realistic, near-shore and reliable source of crude oil and finished products is Venezuela. But Venezuela is currently under US sanctions which, quite understandably, the Government of Jamaica is not going to violate,” he stated.
However, he suggested that there is another approach, which will require employing good diplomatic skills, and recommended that the Government take another approach to resuming its relationship with Venezuela, in a bid to access cheaper oil from that country.
He recalled that in 2013 the US Government had expressed great reservation about the Petrocaribe Agreement, and there was discernible concern in Washington about the growing close relationship between Venezuela and certain Caribbean Community (Caricom) states.
“We were asked to attend a summit in Washington to discuss the issues. The summit was chaired by then Vice-President Joe Biden. Jamaica was ably represented by then Prime Minister Portia Simpson Miller. I attended in support as the portfolio minister,” he said.
He said that, to the credit of the United States, all member states were invited and were in attendance.
“We used the opportunity to speak certain truths to our American friends. We not only defended our position to continue with the Petrocaribe arrangement, but we also challenged the US Administration to assist us with our energy security issues,” Paulwell stated.
He said that out of that summit in Washington came a letter of intent for energy cooperation signed between the US Energy Secretary and himself; and Jamaica becoming the first non-NAFTA (North American Free Trade Agreement) country to get access to US LNG supplies which, he said, was how New Fortress Energy emerged.
“We acknowledge the more-than US$1-billion investment in Jamaica by that company and the diversification in our fuel sources that was achieved, and US support by way of financing of two major renewable energy projects valued at over US$200 million in Malvern, St Elizabeth, and the 20MW solar farm by WRB in Content, Clarendon.
“I daresay that out of that mission to Washington the roots were firmly planted for the official visit of former President Barack Obama to Jamaica,” he said.
“That is how diplomacy works. Principled discussions, speaking truths to our friends and pursuing our best interest which involved the participation of our Caricom sovereign siblings, and in the spirit of collective cooperation among friendly nations in the interest of our respective peoples,” Paulwell stated.
“Now, in relation to Venezuela, I am not sure how we will overcome what was a most glaring act of ungratefulness shown to Venezuela by Jamaica. This ungraciousness, notwithstanding the billions of US dollars benefits throughout the course of the Petrocaribe agreement, but also the US$1.5-billion write-off Jamaica received of our debt to Venezuela.
“As the sanctions remain a block to any trade with Venezuela, it is now necessary for the Government of Jamaica to approach our US partners requesting special dispensation to overcome the sanctions. This is how diplomacy works,” he stated.