Shaw not horsing around - To take a serious look at Caymanas divestment

MINISTER OF Finance Audley Shaw on Thursday night hinted that divestment of Caymanas Park or diversification of its present offering, horseracing, would be pursued by the new government in a bid to attract investors to local racing.

Touching on what was a controversial topic in local racing circles last year, Shaw said he was not sure why divestment of Caymanas Park fell through under the People's National Party (PNP) administration but said "it cannot be business as usual" and ways must be found to attract investment to the huge complex in Portmore, St. Catherine.

"Nothing is wrong with divestment," Shaw said. "It is how you divest. You must divest to people who will bring money and a market," Shaw told the audience at Caymanas Track Limited's (CTL) first long service awards ceremony.

"Caymanas Park occupies 198 acres of some of the most prime real estate in Jamaica and ways need to be found to maximise its potential," said the Finance Minister.

"We need ways to diversify the product. It does not have to be a hundred per cent divestment. There are many ways to approach it, but it cannot be business as usual," he said.

Meanwhile, Shaw also hinted that some of the present CTL board members could be retained as he commended the William Chin-See-led board for "keeping its head above water despite trying times".

Monitored continuity

Sticking to the mode of new Prime Minister Bruce Golding, who led the Jamaica Labour Party (JLP) to victory over the PNP at the September 3 general election, Shaw said he would not announce any major policy decisions but pointed out the need for monitored continuity.

"Very shortly, I will name a new board," Shaw told the expectant gathering.

"However, we are not into any chopping away and putting in a totally new board. We cannot afford the tribalism of throwing out one board and putting in another.

"That's the approach I will be taking, in consultation with the Prime Minister, regarding all the boards which fall under my ministry," Shaw pointed out.

Shaw further outlined what he described as a "broad framework" under which the Finance Ministry is expecting to perform and how CTL would fit into the model.

Admitting he was given a crash course on the state of local racing by Chin-See shortly before taking the podium, the Finance Minister outlined five areas which his ministry intends to attack as priorities in order to restore investor confidence in an economy, which has recorded a negative growth rate for nearly two decades under successive PNP administrations.

"The Jamaican economy has suffered certain structural difficulties for the past 15 or more years," he said.

"If the economy does not grow, there will be no earning power. If there is no earning power, there will be no purchasing power. If there is no purchasing power, there will be no disposable income, and if there is no disposable income, there will be no money to invest in racing," he stressed.

The Finance Minister said his ministry intends to tackle the country's debt burden, high energy costs, bureaucracy, tax reform and investment promotions.

"Our energy costs are too high and we have served notice to speak to the Jamaica Public Service about investing in more expensive but efficient equipment. We also have to start looking a sources such as solar, wind and hydro-power," he pointed out.

Cutting bureaucracy, Shaw said, was not about people losing their jobs, but instead making the public sector more efficient.

Tax reform, he added, was needed as an instrument to stimulate investment, which also applies to the local racing and gaming sectors.