Roadworks aid is 'genuine effort'

Thu, Mar 22nd 2012, 09:20 AM

Montego Bay, Jamaica - Prime Minister Hubert Ingraham allayed concerns of possible fraud or bureaucratic cobwebs stemming from the proposed compensation for businesses impacted by the roadworks. Representatives from the Ministry of Finance started going door-to-door yesterday, focusing on corridors and connecting streets that were touched by the "vexing and tortuous" New Providence Road Improvement Project, as described by Ingraham in the House of Assembly around two weeks ago. The survey is intended to gather specific information from business owners to later assess what compensation they are entitled to, if any. Ingraham spoke with Guardian Business about the new program in Jamaica at the launch of Sandals Corporate University. While criticized by some as political posturing, Ingraham defended the program, calling it a "genuine effort on our part". He said the compensation procedure will be carefully administered and ultimately benefit both large and small business owners. The prime minister also insisted that businesses that shut down due to the roadworks will not have a problem gaining compensation. "Many will appreciate it, others won't. That's just how the world works," he added. "There is a business license requirement, so clearly you must be in my system and the government's system. If you're not, you'll have a very hard time to prove you were in business. You are required to pay [for] a business license every year. If you are lying to me, then the lie will still be there. You tell me the truth and I will know that." The comments follow a measure of concern on the effectiveness of the compensation strategy. Winston Rolle, the chairman of the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), told Guardian Business that determining the exact need and filtering out those with sufficient claims could be time consuming and costly. He felt relief on Business License Tax and Real Property Tax, representing clear and transparent savings, might be an easier and preferred approach. "Any assistance provided would be welcomed by someone adversely affected. The challenge will be how you quantify that. A number of those businesses would have been small businesses, without significant record keeping. It would be very difficult knowing what their revenue streams were at that time," he said. Ingraham acknowledged that small businesses present unique challenges. However, he noted that at least two small businesses have already been able "to really make a case" that made sense in terms of compensation. One such store, a beauty salon on Prince Charles Drive, "made a good case on what they lost". He encouraged other businesses to be conscientious and thorough in their assessments. According to a release from the prime minister's office, the information sought from businesses includes details regarding expenses, revenue, profits, accounts receivable and payable during the period 2007 to 2011. "The survey will commerce on Baillou Hill Road, Market Street and Prince Charles Drive. Other corridors to be surveyed include: Robinson Road, East Street South, Soldier Road, Marathon Road, Abundant Life Road, Wulff Road, Fox Hill Road and Thompson Boulevard," the release said. Businesses are given one week to complete the survey and gather information and support documents. The New Providence Road Improvement Project, well behind schedule and over budget, has continued to present major problems for entrepreneurs that depend on steady traffic to attract customers. The projected cost of the IDB-funded initiative is now an estimated $206 million, up from $119.9 million when Jose Cartellone Construcciones Civiles was originally contracted back in September 2008.

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