|
The
Distributive Sector recorded an estimated growth rate of 0.1 per cent relative
to 2007. It’s contribution to GDP was 19.0 per cent and the sector employed
23.3 per cent of the labour force. Improvements in the sector were attributed
to:
-
Increases in
the volume of remittances
-
Loans and
advances by commercial banks to distributors and consumers
-
Activities in
the Tourist Industry
-
Increases in
Imports
POLICY
AND REGULATION
Regulation of
the Distributive Sector is done mainly through four agencies namely:
-
The Fair
Trading Commission (FTC)
-
The Consumer
Affairs Commission (CAC)
-
The Bureau of
Standards Jamaica (BSJ) and
-
The Trade
Board (TB).
Fair Trading Commission (FTC)
During
2008, the FTC continued to enforce the requirements of the Fair Competition
Act (FCA). The process of amending the Notices and Procedures Regulations was
not advanced as the draft Bill was incomplete. The FTC prioritized areas such
as:-
·
Investigations of
complaints on competition matters;
·
Assisting the
Ministry of Foreign Affairs in formulating competition policy relating to
issues affecting CARICOM,
·
Spearheading
competition advocacy through the coordination of activities that provide
information about the role of the FTC and how that role overlaps with other
government agencies and educating the public on competition issues.
A total of 472 new cases were investigated in 2008,
compared to 764 in 2007. Of this total 416 were resolved. Misleading
advertisements accounted for the largest number of complaints. The industry
with the most investigations was Agricultural Products and Agro Processing
with (95 cases) while Transportation had the least amount with 22 cases.
Consumer
Affairs Commission (CAC)
The
Consumer Affairs Commission is entrusted with the responsibility to represent
consumer interest in both national and regional matters. It continued its
programme on educating the public on the rights and responsibilities of the
consumers. The CAC plays an instrumental role in implementing the National
Disaster Management Plan which seeks to assess the preparedness of the
Distributive Sector in coping with the negative impact of disasters on
consumers. The Agency also kept the public informed by publishing the prices
of basic food items on a weekly/monthly basis. During the year the number of
complaints reviewed totalled 1,502 of which 1,476 were settled. Complaints
were made concerning electrical equipment and appliances, utilities and
payment difficulties and other services. In addition, 2,508 consumers sought
advice from the CAC which secured approximately $19.8 million consumer refunds
on behalf of consumers.
Bureau of
Standards Jamaica (BSJ)
The BSJ
continued jurisdiction over the enforcement of the Standards, Weights and
Measures, Act and Processed Food Acts. Recommendation for the New Standards
Act and the Metrology Act were prepared and submitted to the Ministry of
Industry, Investment and Commerce (MIIC). Under these Acts the Bureau will be
mandated to undertake investigations in relation to the
implementation
of standards for goods and services, as well as enforcing compliance with
regulations dealing with health and safety.
As part of
its mandate the BSJ undertakes site visits to establishments in order to
enforce the Standards Act. During 2008, the BSJ made approximately 13,308 site
visits, which was 2,796 more than the previous year. Overall at the port of
entry a total 5,262 containers were inspected and 48.0 per cent of the goods
did not conform to the Standards Act. Goods that were in breach of the
Standards Act included garments, footwear, appliances and food items.
Trade
Board Limited
The
Trade Board is responsible for administering and enforcing the Trade Act.
Additionally, the Trade Board monitors the issuance of licences required for
the importation of specific goods. During 2008 a total of 21,802 vehicles were
imported, 5,407 less than the previous year. Permits were issued for the
importation of sugar and milk powder; however there was a decline in the
issuance of permits for items such as explosives/ammunitions, firearms,
chemicals and gaming machines.
PERFORMANCE INDICATORS
The
Distributive Sector comprises various categories broadly referred to as
micro-enterprises, small enterprises and large firms.
The primary
categories of goods which showed the highest sales in 2008 were
-
Hardware,
building supplies and electrical goods
-
Chemicals,
pharmaceuticals and cosmetics
-
Automobiles,
commercial and transport and equipment
Sales for the
hardware group increased by 5.0 per cent during 2008. This was driven by the
expansion in sales of lumber and building materials which are widely used in
the Construction Sector.
Sales in chemicals, pharmaceuticals and cosmetics
accounted for the largest increase of 10.6 per cent. However sales for the
industrial and non-industrial chemical sub-category was 0.3 per cent lower
than 2007. The automobiles, commercial and transport equipment sub-sector
recorded a 2.4 per cent reduction in sales. The primary reason for this was a
reduction in the sale of motor vehicles, auto parts and accessories. The
decline outweighed increases in sales by importers of motor vehicles.
The
furniture, furnishings, office equipment and jewellery distributors registered
the largest decline in sales of 24.5 per cent in 2008. The food, beverages and
tobacco sub-category recorded a reduction of 5.2 per cent in 2008 compared to
2007. This reduction may be attributed to low sales by wholesale and
supermarket grocers.
The minerals,
fuels, lubricants and petroleum producers sub-category grew by 4.1 per cent,
which was due to increased sales by distributors of petroleum/ gasoline and
lubricant oil and gases.
TOURISM
Jamaica’s tourism sector experienced growth of 2.7 per cent during 2008
compared to 2007. Stop over arrivals and visitor expenditure increased.
However, there was a decline in the average length of stay. This was as a
result of the global economic downturn and a decline in consumer confidence in
the main source markets. The overall performance of the sector was slow
especially during the second half of the year.
Source: The Economic and Social Survey Jamaica 2008
Updated November 2009
|