MINISTRY PAPER NO~ DEVELOPMENTS IN INDUSTRY. · Undergarment Accessories Ltd. 5. Har bour Road...
Transcript of MINISTRY PAPER NO~ DEVELOPMENTS IN INDUSTRY. · Undergarment Accessories Ltd. 5. Har bour Road...
MINISTRY PAPER NO~
DEVELOPMENTS IN INDUSTRY.
Last year the manufacturing sector ~f the economy continued
t~ hold the position it f irst achieved in 1963 as the largest contri
butor to Jamaica's gross domestic product, accounting for 15.1% (£56.2
million) of the total GDP figure of £371.7 million. The contribution
in 1967 was 14.9% (£50.8 million) ~f the total GDP figure of £340.8
million for that year.
2. Gro~th in the manufacturing sector was much faster last year
than in 1967, the increa se being 10.~~ (£5.4 million) as compared with
2.~~ (£1.2 million) in the previous year. This resulted from the high
level ~f activity in t~e country, with substantial requirements for
cement, metal products, furnitu~e and fixtures, printing and publishing ,
chemicals and chemical products, made-up textiles and miscellaneous manu
factures and repairs.
3. An examination of the Island's yearly total investment sh~ws
that the greatest absolute increase at current values took place in 1968,
when outlays were £27.5 million more than in 1967. Total investment
moved from £88.3 million to £115.8 million. This increase was more than
double the previous record increase of £12.5 million in 1967 and in
relative terms was 31%, as compared with 16.5% in 1967. This is highly
expressive evidence ~f confidence in our economy.
4. In 1968 the value of domestic exports increased substantially
from £80.4 million to £91.4 million.
5. Exports of manufactured goods, which declined by 5.5% in 1967,
showed the largest increase recorded in any single year by moving from
£8.5 million in 1967 to £10.8 million in 1968 - an i n crease of 27%.
Clothing; mi~eral fuels, lubricants and related materials; essential
oils; toilet, polishing a nd cleansing preparations constituted 71.~~
o£ the total export of manufactured goods in 1968. Exports ~f all these
products increased significantly. Increases were also registered in
cement, as well as textiles and textile products. on the other hand,
there were decreases in the value of exports of dyeing, tanning and
colouring materials; pa per and paper products; and manufactures of
metal. Over the entire 1963/68 period export s of the following mor e
/than •••••
APPENDIX I .
APPROVED COMPANIES OPERATING OUTSIDE THE CORPORATE AREA
Production Year --rcal endar ) Company
1957
1959 1960
1961
1962
1964
1965
1966
1967
1968
l. Ame rica Form Brassiere Co . Ltd .
2 . Carib Metal Works Ltd .
3 . Wi nwell Manufa cturing co . Ltd .
4. Undergarment Accessories Ltd .
5. Ha r bour Road Manufacturing Ltd .
6. Spanish Town Manufacturing Co . Ltd .
7. 8.
9.
J a y tex Finishing & Print Work Ltd .
J amaica Ce ramic Indus tries Ltd . ( formerly Worcester Porcelain co . (Jamaica) Ltd ).
Caribbea n Button Company Ltd .
10 . Bl ue Ribbon Products co . Ltd .
Il; Caribbean Bitumals (Ja , ) Ltd .
12. Col onial Industries Ltd .
13 . Caribb ean Asbestos Products Ltd .
14 . F . P . E. Car ibbean Ltd , ( formerly Univex ( J ama ica) Lt~ .
15 . I . T . T. Standard Electric Co , of Jamaica Ltd .
16. Va~ Leer ( Ja . ) Ltd .
17 . W. I . Chi pboard Ltd .
18 . W. I . Synthetics Ltd .
19 . Sterling Drug Int ernat ional Ltd .
20 , Nat i onal Fibres Ltd .
21 . Hosiery Company of Jamaica Ltd .
22 . Recki tt & Colman ( W. I . ) Ltd .
23 . Textiles of Jamaica Ltd .
24 . Goodyear Jamaica Ltd .
25 . Jama ica Food Products Ltd ,
26 . Fabric Manufacturers Ltd .
27 . Carib steel Company Ltd .
28 . Pr i de Manufocturing Co . Ltd . ( form e rly Atlas Manufacturing Co. Ltd . )
29 . Gered Ltd .
30 . Caribb ean Foods Ltd .
31 . Robert Shaw Co . (Jama ica) Ltd .
32 . General Di stributors Ltd .
33 . N. M. Holden & Sons Ltd .
34 . Wi bac o Limited
*35 . Standard Building Products Ltd .
Locat ion
Port Maria , St . Mary
Falmouth, Trelawny
Lucea , Hanover
Spanish Town 1 st . Catherine
Spanish Town 1 St . Catherine
Spanish Town , st . Catherine
Spanish Town , st . Catherin e
Spanish Town , st . Cathe rine
Lyssons 1 st . Thomas
May Pen , Clarendon
Rio Bueno , Trelawny
Above Rocks , St . Catherine
Montego Bay , .st . James
Spanish Town , St . catherine
Yallahs , St . Thomas
Twickenham Park , St . Catherine
Spanish Town , st . catherine
Twickenham.Park , st . catherine
Whit e Marl , central Village, St. Catherine .
Lyssons , st • . Thomas
Eleven Miles , St . Thomas
Twickenham Park , st. catherin8
May Pen , Clarendon
Morant Bay, st. Thor.as
Highgate , st . Mary
Old Harbour, .st . Catherine
Spanish Town , st . Catherine
Eleven Miles , St . Thomas
Old Harbour , St. catherine
Twickenham Park , st . Ca therine
Old Harbour , st. Catherine
Seven Mi l es , .st . Thomas
Spanish Town , st . C&therine
Lucea , Hanover
Spanish Town , st . Catherine
/* 36 •••••
' . . .
-2-
Production Yea r (Calenda r ) Company
1969
* 36 o B. I . c . c . (Jamaica) Ltd .
* 37 . Clark Brothers Lt d .
* 38 . Alcan Products of J a maica Ltd .
* 39. Leathercraft Ltd .
* 40 . Angela Bra (Jama ica) Ltd .
* 41 . Northern Industri e s (Ja . ) Ltd .
Location
Old Harbour; st. Catherine
Old Ha rbour, St. catherine
Twickenham Park , St . Catherine
Spanish Town, st . catherine
Port Maria; st . Mary
Port Mar i a , st . Mary
NB *Establ ished during l a st financia l year .
.. ' I ..
Breakdown of Loans Approved by Small Businesses Loan Board in 1968
CATEGORIES
Bakery Business
Baking Powder Manufacturing
Black P eppe r Manufacturing
Blockmaking
Canning Operations
Clay Products
Comb Manufacturing
Cosmetic Manufacturing
Craft Work
Drycl eaning & Laundry
Garment Manufacturing
Garage Operations
Glue Manufacturing
Hand-Bag Manufacturing
Mechanical Engineering
Metal working
Millinery Business
Miscellaneous Operations
Mirror Manufacturing
Piano Manufacturing
Printing
Shoe Manufacturing
Spices & Seasoning Manufacturing
stone crushing
Stop Signs Manufacturing
Syrup Manufacturing
Tile Manufacturing
Upholstering
Wall Plaque Manufacturing
Woodworking
NUMBER
7
1
1
5 2
3
1
1
2
11
31
4
1
1
2
5 2
12
1
1
4
13
1
2
1
1
5 2
1
29
APPENDIX II
AMOUNT
£ 8,250
400
. 150
9,050
5+000
4,200
1,ooo 2,000
.600
14,275
22 1 0 50
6,750
2,250
.400
2,200
7 , 500
.400
17,100
2,500
2 4500
6,ooo 10,900
2 ,500
4,500
1,500
2,500
9,750
1 , 500
.200
33?975
153 £181,900
-
-2-
than doubled: chemical elements and components; medicinal and phar-
maceutical products; Portland cement; and manufactures of metal.
6. With our accession to C~RIFTA, exports to the commonwealth
caribbean improved ~ubstantially, especially clothing and cosmetics to
Trinidad and Tobago, and cement to Guyana. Preliminary data for 1968
indicate that our exports to CARIFTA member territories increased by
40% over 1967, from £1.8 million to £2.5 million and by 76% during the
five month period last year when we were members of CARIFTA. A further
figure of £2.3 million was exported to other countries in the region -
Belize, Dominican Republic, Bahamas and Bermuda.
The establishment of the National Export council is designed to ensure
that our export expansion will be accelerated.
7. Official records maintained by the Factories Inspectorate of
the Ministry of Labour aild National Insurance indicate that at the end
of 1968, there were 1,106 registered manufa cturing industries in opera-
tion throughout the Island, employing nearly 44,000 workers. This is
another significant index of the major contribution the manufacturing
sector is making to the national economy.
New Industries Established with Incentives:
8. · Fourteen new factories went into operation during 1968/69.
Taken on a calendar year basis, 23 new factories were established in
1968, compared with 19 in 1 967. The 14 established during the 1968(69
financial year represent a fixed capital investment of £3.9 million,
and provide new jobs for 1 1 100 persons. The new plants brought the
total number operating under the incentives legislation to 181 at 31st
March this year. They now provide direct employment for approximately
12,000 persons, and ha ve a total fixed capital investment of £27
million.
9. The products being manufactured by these new factories include . . . work gloves, leather bu~tons, novelties, brassieres and ancillary
fittings for brassiere~, plastic fill e r, pla stic ~oys, office paper
and typew~iter r~bbons, keypunc~ tabulating cards, low pressure gas
cylinders, flour, b a gasse board, electrical wir e s and cables, and
aluminium extrusions. The last four products are valuable additions to
the Island's indus trial complex, the combined forei gn exchange savings
/resulting •••••
-3-
resulting from their establishment being very substantial .
10 . The flour/ animal feed project now employs over seventy workers .
Th e plant is capabl e of producing 40 , 000 short tons of baking flour per
annum and the feed mill 26,000 short tons of livestock feed per annum .
Production of bagasse board on a commercial scale commenced last year
but the plant has been experiencing certain technical difficulties . A
substantial addi tional sum is being spent by the Company to rectify the . .
s i tuation . Production will be between 25 , 000 and 30 , 000 short tons of
bagasse board per annum .
Al um i nium extrusions now b e ing manufactured locally should be of
conside r able benefit not only to other manufacturing industries but also
to t h e construction industry .
11. At 31st March this year , t hirty - one other compani es had b e en
granted approved sta tus but had not yet commenced production . The mo Et
s i gn i ficant of these projects from the point of view of overall economic
benef i ts to the Island are those involving the production of caustic
soda , corrugating medium and tissue ~rade pa p e r, galvanised ~ater pipes ,
electrical equipm ent a nd accessories , .knitt e d t extile fabrics, table salt
and woven plastic sacks . In a ddition , seventy-two a pplica tions for
approval of compani e s were being processed at 31st March , invol ving a
wi de range of products for the dom estic market, as well as for export .
Whi le these new deve lopm ents are taking place, it is important to note
the consi derable amount of expansion of existing fact ories which is at the
same time taking place .
Lo c a l Inv estors :
12 . Increas i ng interest is being taken by loca l investors in
establishing manufacturing operations . Of the 181 companies operating
under incentive laws at 31st March , eighty- four are 100% local owner-
s hip and forty are joint ventures between local and foreign interests .
I n effect , there is local participation in 69% of the approved compani e s
now operating in Jamaica . This increase in local ownership is in line
with the policy of J amaicanisation .
Decentral isation of Industry:
1 3 . seven new incentive factories were estab l ished l ast year in
r ura l areas , bringing the total numb e r operating with inc entives out side
/ of ••• . •
-4-
of the Corporate Area to forty-one at 31st March . Details of the rural
locat i ons of these approved companies are shown in Appendix I . The
products being manufactured by the new companies are work gloves?
alum ini~m extrusions, e lectrical wires and cables, bagasse board, leather
buttons , brassieres ~n d novelties .
With the n ew provisions in the Industrial Incentives Law and the Export
I ndustry Encouragement Law for granting additional incentives for f actori e s
in rural loca tions , it is confidently expected that the rate of develop-
ment of manufacturing activity in rural areas wil l progressi.nely expand .
Fa c to r y Building Programme:
14 . The factory building programme of Jirc is an important plank in
the Governm ent's industrial po licy. During 1968/69 the Corporation
compl e ted construction of three factories in rural areas with an approxi-
mate floor area of 89 , 000 square feet, at a cost of £295 , 000 . Negc~ia -
t i ons are current l y being conduct e d in rela tion to four othe r factori es
and one extension, all of which are a lso in rural locations .
Services to Industry - Productivity Centre of JIDC :
15 . The activities of the Productivity Centre which was established
in 1967 with the assistance of ILO and the Unit e d Nations Development
Pr ogramme have expanded considerably . The assignments ca r ried out have
shown a healthy evolutionary trend , with a s i gnifica nt increase in
demand for the Centre ' s services . In 1968/69 local counterpart staff
was increased from 16 to 20 in accordance with the 1968/72 expansion
pl an . An active programme to extend on-site training and staff develop-
ment was introduced ; assi gnments covering Production Planning and Control ,
/Stock control i Pl ant Layout , Method Study , Time Study and Organisation of Ma i ntenanc e
have been undertaken primarily for this purpose. Expansion i n r e cruit-
ment of local counterparts wo rking with the United Nations specialists
helped the Centr e to increase its output both in consultancy and
training services to i ndustry .
16 . The inte rest shown by management, as well as worke r s ' repr esen -
tat i ves , in wage systems and incentive schemes has broadene d . Meetings
have been arranged with trade union officials and employers ' represen-
tatives to establish clea rly the Productivity Centre's role in this
field as an impart i a l technical advis e r a nd sourc e of help . Useful
/progr ess •• a • . ,
-5-
progress has also been made in assisting organisations to set up their
own work- study systems. Six organisations are now engaged in recruiting
staff in this area.
The growing public confidence the Centre is enjoying is illustrated
by the fact that the Joint Industrial Council for the Port of Kingston
has sought its technical advice on the design and operation of an
inc ent ive scheme for otevedores .
17 . The following summaries indicate the consultancy assignments
and cours es conduct ed by the centre during 1968/69:
Consultancy Assignments
(i) Industria l Engineering
Production Planning & Control
Layout & Methods
Methods Improveme, .t
Work Standards and Incentives
Capacity Surveys
Maintenance Organisation
In-plant Training
(ii) Management Accounting
Product Costing
Costing Systems
stock & Cost Control
Co st Accounting
Cost & Financial Control
Organisation-Management study
Job Costing System
(iii) Marketing
Market Research
Distribution & Cost Research
Sales Evaluation
Sales Potential
Product Profitability
Survey - Marketing Manpower
Cours es Completed
Maint enance OrganisationP
Work-Study Appreciation for Management
Work-Study Appreciation for Trade Union Delegat es
Work-study Technicians Training
Marketing Efficiency Methods I mprovement
Joint Labour/Management Seminar Int ~rnal Develo~~ent Seminars
25
4
3
2
6 6 2
2
21
6 2
7 1
3 1
1
10
5
1
1
l
1
l
ll
2
2
1
1
1 l
1 2 jm..., . i :·:i :··
' ..
-6-
Training Depart ment of JIDC
18 . In addition to the invalu able work so far done by JIDC ' s
Productivity Centre in up- gradin g industrial skills , the Corporation's
Tra ining Depar t ment carried out a full programme which r ec~ ive d wide
a cceptance by both industry and comm e rce. During the year, thirty-nine
courses we r e h e ld, involving 953 participants . These c ou rse s r anged
from s upe rvi so ry management to report wr i ting :
Supe rvisory Management
Training Co-ord inators
Better Te l ephone Communicat ions
Report Writing
Sma ll Businessmen
Leadership Training (Jayc ees)
Dec ima l Currency
Courses
27 1
1
1
1
1
7
39 ==
Partici- Participant pants Hours
462 20 .790
13 1,170
12 180
76 456 10 120
99 144
281 .843 --953 Q ,703 ~
19 . For the fir st time , a course was introduced for the training of
personnel r espons i b l e for organising and implementing training pr ogr ammes
within an organisation . The Training Department also a ssist e d the f ollow-
ing organisat ions and i nst i t utions in o rg~n ising training actions:
Ministry of Educat ion
Ministry of Labour
J amaica Manufa cturers ' Association
- Vccat iona l Guidance Course
- Workshop Supervi so r s ' course
- Educat ion Committee
Caribbean Nurses ' Organisation - Annua l Confe r ence .
Several l e c tures were p r esented to se rvic e organisations a n d
othe r institu t ions , the main theme for the year be i ng " Management ' s
Responsibility for Training" . As a result of these discussions there
is growing awareness on the part of top - management that in-plant
training i s an obligation of the organisation and a tool of top-manage-
men t to realise the objectives of t he organ i sat ion more effect ively .
21. The National Advi sory committee on Productivity, whi ch was s e t
up in 1968 to advise Government through the Ministry of Tra de & Industry
on the r espects i n which the Productivity Centre and JIDC ' s Training
Depa rtment ma y make the greatest i mpa c t on the country ' s developm ent 1
hns established three representative sub - committees - dealing with
/operationaL . • .
-7-
operational policy; worke r/management productivity r elat ionships; and
public relat ions, publicity a nd promotion. The influenc e of these sub-
committ ees has been in evidence ir. the programme of work being impie -
mented .
22 . Special acknowledgoent is due to the Board of Directors, as
well as the staff , of JIDC for the valuab l e contribution they continue
to make in the public interest .
Ministry ' s Industrial Training scheme
23 . The industrial training scheme established by the Government
in 1963 for ~ending suitably qualified young men to the United Kingdom
for training , principally in mechanical, e l ectrical and civil eng ineerin
has fully justifi e d itself . 103 young men are currently undergoing
training and it is planned,to send another 25 this year .
Over the period 1963/68, 121 yvung men were sent forward and only 5
have been withdrawn for various reasons .
24 . Last year tAe first group of 13 completed the ir training and
returned to the Island . Several are presently attached to the Producti
vity Centre of JIDC, whi l 3 the others have readily been employed by
private firms . A furthe r batch will be returning this year on completion
of t r aining .
25 . The minimum qualification aimed at in the scheme is the U. K.
Highe r National Certificate . However , a number of promising students
ha ve been all e wed to proceed to higher training~ 21 are working towards
the Highe r National Diploma, l towards the Diploma in Technology, and
14 towards the B. Sc . Honours degree course . The numbers now pursuing
the va rious courses are :-
Course
Hig h e r National Certificate
Mechanical Enginee ring
Electrical Engine ering
Structural Engineering
Chemical Engineering
Production Eng inee ring
Nos .
55 8
l
l
2
67
/C/Fwd . 67 . ..
26 .
-8-
Cour se Nos
Hi ghe r National Diploma
Me chani cal En g inee rin g
El ectrica l Enginee ring
Me t a llurg y
Civil Eng inee ring
Diploma in Te chnolog y
Mechanicc l En gineering
B. sc . Degr ee
Me chan ica l En g inee ring
El ectrical En g i nee ring
Pro duction Eng i nee ring
Civil En g ineering
B/Fwd . 67
11
7
2
1
1
9
3 1
1
103
Small Busine s~ e s Loan Board
The Boa rd i s fulfilling ~ valua ble rol e in supplem enting the
wo rk of oth e r a gencies in increas ing production a n d e mploym ent? through
the assista nc e it continue s t o g ive to a wide va rie ty of small, produ c tive
b u s i ne s,3e s . Th e fa cts continue t o confirm tha t ove r th e course o f the
past seve n ye ar s the Boa rd ha s ma inta i ne d so und ma nagement of it s af f a i r s .
The record of pa ym ent of s inking fu nd and inte r es t by borrowers cont inue<
to b e good , as a conseque nc e of which t he Boa rd ' s curr ent incom e fr om
in t e re s t is not only covering r e current expe n ses for a dmin i st r a tion and
operation but l a st year l e ft a s urplu s of approxima t e ly £4 , 800 ~
Over the period 1963 t o 1968 int e re s t colle ct e d by the Board a mountec
to £96 , 980 , whil e r e curr ent exp ense s f or a dministrat ion a n d ope r a ti on
cam e to £90 ,177 , l eaving a t o t a l surplus of £6 , 803 a t t h e e nd of 1968 .
27 . At the end of Ma rch this yea r , th e tota l fund admini s t e r ed
by the Boa rd s t ood at £539 ,000 . In 1967/68 a nd a gain in 1968/ 69 a
g r ant of £34 , 000 was made to th e Boa rd as well as a loa n of £50 , 000 ,
which togeth e r r e pre sent a sub s t a ntia l increase ove r the annua l a lloca-
tion for a ny pre vious year . Th e purp ose was t o i mpl e men t Governme n t ' s
decision to r a ise t he pe r mitt e d c e iling on ind i vidua l assista nc e given
by th e Board fro m £1 , 000 to £2 , 500, in r esp on se to th e de ma nd for loans
above the for me r limit a nd a l so t o p e r mit ex pan s ion of t h e Bo a rd l s
/over a ll •••••
-9-overall loan programme.
28 . During 1968 the Board approved 153 loans involving £1 81 , 900 .
A statement of these loans classified in terms of product ion activity
is attached as Appendix II . The m~ in areas in which assistance was
given w~re wood -work~ng, garment manufacturing, dry cleaning a nd
laundry, shoe making , tile making and block making . The total amount
of loans actually paid out last year was £174 , 243 . Comparable figur es
for 1967 ind icate that 1Lt-9 loans were then appro ved amounting to
£133 , 830 , of which £93 ,300 was paid O'lt.
Lookin g back over the period 1963 to 1968, the summary position is
tha t 783 loans amounting to £566 ,107 were ma~e by the Board . Loan
r epayment s over the period amounted to £366 , 206 .
29 . As in recent years , the Board continues to pay increas ing
attention to the needs of borrow ers in rural areas . LoanG to such
borrowers approved over the l as t three years were :-
30 . The
congratulated
MTI FILE NO . 66/l/03
1966 £39 ; 925
1967 42;780
1968 55 , 650
membe rs of the Small Businesses Loan Boa rd are
on this record of the ir overall achievements.
ROBERT C. LIGHTBOURNE Minist e r of Trade a nd Industry ,
8th May , 1969 .
to be