Montague: PETROJAM Gas Price Calculations Contradicts GOJ Growth Agenda Policy

Release Date: 
Wednesday, June 24, 2015 - 11:30

Chairman of the Jamaica Labour Party and Shadow Minister on Mining and Energy, Senator Robert Montague, is today insisting that PETROJAM’s Gas Price calculations is in conflict with Government of Jamaica (GOJ) Growth agenda Policy Paper 2015/2016 under the present International Monetary Fund (IMF) agreement.

GOJ Growth Agenda Policy

Senator Montague says that the IMF in their Press Release No.15/277
June 16, 2015 states the following: “Continued proactive implementation of the government’s growth strategy will be critical to improve Jamaica’s economic growth and job opportunities. To foster sustainably lower electricity costs, scheduled investments in new power plants need to proceed without delay. Improving access to credit by small and medium-sized enterprises will improve financial inclusion and support private investment….”

However, as long as PETROJAM pricing policy and its secrecy continues to contradict international Market trends none of the above will be achievable said Senator Montague.

Transparent and Effective Governance of the Sector

The central message here to PETROJAM is that high-quality and well-managed information is critical to ensure the transparent and effective governance of the sector; which will ultimately produce growth and jobs. Especially, against the background of a recently published report by the Inter American Development Bank (IDB); entitled Transparent Governance in an Age of Abundance: Experiences from the Extractive Industries in Latin America and the Caribbean   said the JLP Shadow Minister, Senator Robert Montague.

PETROJAM Policy Recommendations

·         Government must insist that the Petroleum Corporation of Jamaica immediately put in place a new Governance structure in order to facilitate the above stated Growth policy as outlined by the International Monetary Fund (IMF) if Jamaica is to achieve Developed country status by 2030.

·         A commitment to meeting the highest ethical standards in the conduct of business. This commitment should be underpinned by their Mission, Vision and Values which informs Strategy and corporate governance practices.

·         Guidelines and company standards should be built upon the following growth columns: Respect, Trust, Value, Stewardship, Accountability and Integrity.

·         A serious commitment to demonstrating transparency in PETROJAM operations as they develop relations that are critical to PETROJAMS long term success.
·         An Internal Audit Department that can be been entrusted with the powers to guide and evaluate PETROJAMS activities to mitigate against the risk of fraud and corruption and to conduct internal audit activities where required.

In concluding Senator Robert Montague said: PETOJAM as it is, is not viable or sustainable and is a hindrance to economic growth.

PETROJAM must be reorganized and restructured and a new governance structure put in place.

It is only then that the stated objectives of the present IMF/GOJ programme will be achieved.

Only then the struggling Jamaican will begin to make both ends meet.

Only then, the poor long suffering consumer will be able to reap the benefits of the low price of a barrel of oil on gas prices in Jamaica.

 

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