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Wehby exploring offshore centre - Eric Crawford to head committee
published: Wednesday | October 31, 2007
Senator Don Wehby, Minister without Portfolio in the Ministry of Finance and the Public Service, has set up a special advisory committee, headed by tax expert Eric Crawford of Pricewater-houseCoopers, to explore the development of a International Financial Services Centre (IFSC) in Jamaica.
"This initiative is in keeping with the Government's vision to generate the jobs needed to raise the standard of living and lower the national debt," said Wehby, quoted in a Finance Ministry release.
"Jamaica will benefit from this initiative which will, in essence create significant employment for skilled workers, complement our tourism product, increase the presence of Brand Jamaica in the international market and diversify the economic base."
'Full report'
Crawford and his team are to present "a full report" to the ministry by the first quarter of 2008. Beyond that, legislation to guide the new sector would have to be crafted, leaving the timetable to its establishment open.
The Jamaica Chamber of Commerce has been batting for an offshore business centre in Jamaica now for several years, saying it was one of the best ways to fuel the redevelopment of downtown Kingston.
Its proposal has centred on a "low tax" rather than a "no tax" jurisdiction, driven by incentives to invest.
Business processing
Jampro also looked at the issue back in 2005 using the services of overseas consultants, whose recommendation favoured the IFSC as an extension of the back office operations of the IT sector - a business processing centre staffed by professionals.
However, former Finance Minister Dr. Omar Davies was said to be wary of the plan, fearing that it could result in increased tax evasion.
The new Jamaica Labour Party administration, in its manifesto, had committed to reviewing the plan. Central Bank governor Derick Latibeaudiere, while not opposed to the idea, said the government should enter the sector with the realisation that Jamaica will come under greater scrutiny from the multilaterals, under anti-moneylaundering and terrorism financing laws.
New concerns
The central bank, he said, is also concerned that the new business coming in would not crowd out the domestic sector.
"There are issues of saturation in the market," said Latibeau-diere. "There are issues of the source of the monies coming in."
Wehby said yesterday that his committee will have represen-tatives from the Private Sector Organisation of Jamaica, the Companies Office of Jamaica, Jamaica Trade and Invest (formerly JAMPRO), the Bank of Jamaica, the Jamaica Bankers Association, the Jamaica Stock Exchange and other members from the private sector, "including two professionals from the Jamaican Diaspora who have extensive knowledge in the establishment and operations of international financial centres."
Committee's job
Studying the existing market for International Financial Services and determine those segments/niches that would allow Jamaica to compete successfully
Identifying the resources that would be required to enter the market, in particular the required legislative framework
Ensuring the input and buy-in of all stakeholders in the process which includes all agencies of Government that would be required to support the initiative, e.g. BOJ and FSC
Developing a marketing/education programme for local stakeholders prior to implementation.
published: Wednesday | October 31, 2007
Senator Don Wehby, Minister without Portfolio in the Ministry of Finance and the Public Service, has set up a special advisory committee, headed by tax expert Eric Crawford of Pricewater-houseCoopers, to explore the development of a International Financial Services Centre (IFSC) in Jamaica.
"This initiative is in keeping with the Government's vision to generate the jobs needed to raise the standard of living and lower the national debt," said Wehby, quoted in a Finance Ministry release.
"Jamaica will benefit from this initiative which will, in essence create significant employment for skilled workers, complement our tourism product, increase the presence of Brand Jamaica in the international market and diversify the economic base."
'Full report'
Crawford and his team are to present "a full report" to the ministry by the first quarter of 2008. Beyond that, legislation to guide the new sector would have to be crafted, leaving the timetable to its establishment open.
The Jamaica Chamber of Commerce has been batting for an offshore business centre in Jamaica now for several years, saying it was one of the best ways to fuel the redevelopment of downtown Kingston.
Its proposal has centred on a "low tax" rather than a "no tax" jurisdiction, driven by incentives to invest.
Business processing
Jampro also looked at the issue back in 2005 using the services of overseas consultants, whose recommendation favoured the IFSC as an extension of the back office operations of the IT sector - a business processing centre staffed by professionals.
However, former Finance Minister Dr. Omar Davies was said to be wary of the plan, fearing that it could result in increased tax evasion.
The new Jamaica Labour Party administration, in its manifesto, had committed to reviewing the plan. Central Bank governor Derick Latibeaudiere, while not opposed to the idea, said the government should enter the sector with the realisation that Jamaica will come under greater scrutiny from the multilaterals, under anti-moneylaundering and terrorism financing laws.
New concerns
The central bank, he said, is also concerned that the new business coming in would not crowd out the domestic sector.
"There are issues of saturation in the market," said Latibeau-diere. "There are issues of the source of the monies coming in."
Wehby said yesterday that his committee will have represen-tatives from the Private Sector Organisation of Jamaica, the Companies Office of Jamaica, Jamaica Trade and Invest (formerly JAMPRO), the Bank of Jamaica, the Jamaica Bankers Association, the Jamaica Stock Exchange and other members from the private sector, "including two professionals from the Jamaican Diaspora who have extensive knowledge in the establishment and operations of international financial centres."
Committee's job
Studying the existing market for International Financial Services and determine those segments/niches that would allow Jamaica to compete successfully
Identifying the resources that would be required to enter the market, in particular the required legislative framework
Ensuring the input and buy-in of all stakeholders in the process which includes all agencies of Government that would be required to support the initiative, e.g. BOJ and FSC
Developing a marketing/education programme for local stakeholders prior to implementation.