Ministry of Finance & the Public Service

		PRINT THIS			SEND TO A FRIEND

Members of the audience are very amused at a remark made by Minister of Finance and the Public Service, Audley Shaw (left), during his address at the 63rd annual general meeting of GSB Co-operative Credit Union Limited, at the Jamaica Pegasus Hotel on May 6.

Minister of Finance and the Public Service, Audley Shaw has urged the Credit Union Movement to become more inclusive in the Government's investment promotion thrust.

"The truth is that it is investment, it is growth, it is job creation that is going to provide Jamaica with the salvation that we need. We have to grow our way out of our difficulties, we have to earn our way out of our difficulties. The credit union movement traditionally has tended to support more consumer type expenditure, and I am placing it on the table today, that the time is now, that there has to be a radical shift in the entire investment portfolio of the country, where all eyes now must be on the productive sector," Mr. Shaw emphasized.

He was addressing the 63rd annual general meeting of the GSB Co-operative Credit Union, at the Jamaica Pegasus Hotel, yesterday (May 6).

"For too long, we have seen a structural shift from production in our country, to investment in government paper," Mr. Shaw pointed out, adding that, "we need to have investment back in the production of goods, services, and the greatest natural resources that Jamaica has and will ever have - its people."

The Minister said an environment must be created within which a respect for human productivity and work ethic is redeveloped.

"If your loan portfolio can begin to reflect not just a loan to buy a motor car, but can begin to reflect a loan to put in a cottage industry, to make more things for local consumption, for linkage industries, produce more things that can be sold here and abroad, the credit union movement has a vast opportunity that can be part of the change that is needed in this country - the need for us to put idle hands back to work, for us to get idle minds engaged in productive activity," he said.

Meanwhile, he acknowledged concerns about impending Bank of Jamaica (BoJ) regulations that will affect credit unions. Mr. Shaw said while the regulations could not be dismissed, there are some issues that could be re-examined.

Minister of Finance and the Public Service, Audley Shaw (centre), in dialogue with members of the Board of Directors of GSB Co-operative Credit Union Limited, Wayne Jones (left) and Christopher Samuda, at the 63rd annual general meeting of the organisation, at the Jamaica Pegasus Hotel on May 6.

"The credit union movement has grown into a multi-billion dollar business, and so there has to be some level of prudential management to ensure that your assets are being protected.but I think that there are issues that we can look at," he said, pointing out that he has asked the BoJ Governor to take another look at some of the burning issues that are affecting the credit union, such as the limit on unsecured loans.

"I think that having regard to your track record and your history, we should take another look at it (the limit).because we must be practical," Mr. Shaw added.

The Minister also cited the issue of overseas credit union members not being able to make their contributions in foreign currency as another matter that should be addressed for practical reasons.

"If the credit union movement has been so strong and vibrant in Jamaica, what it tells us is that your tentacles also go far and wide into the Diaspora. So, why should it be that if someone goes abroad and wishes to stay in touch with their local credit union, why force them to send their money down, convert it to Jamaican dollars and put it into the credit union? That's not fair. It is my position that the credit union movement ought to be given permission to open foreign exchange accounts to receive contributions from their members," Mr. Shaw stressed.

Regulations are being finalized under the Co-operative Societies (Amendment) Bill to provide the BoJ with the necessary regulatory and sanction powers to effectively supervise co-operative societies, including credit unions. These regulations will introduce a licensing regime and provide the BoJ with the requisite authority and legal powers to examine these entities, as well as impose sanctions.

On another matter, Mr. Shaw informed that the PetroCaribe Fund now has a surplus of $6 million for 2007 and that it is expected that there would be a further surplus of at least $6 million for this year, all of which would be used as "special creative windows that are going to be fuel for investment and job creation."

Mr. Shaw invited the credit unions to be a part of the process, in order to boost investment in the country.

		PRINT THIS			SEND TO A FRIEND