NEWSROOM

Wednesday, October 22, 2008
NCB Corporate Banking Sets Sail with the Captains of Industries

Mr. Wendell Mottley (left), Managing Director of Emerging Markets at Credit Suisse based in New York, and a former Minister of Finance of Trinidad and Tobago presents an autographed copy on his newly-released book to Mrs. Marjorie Seeberan, General Manager of the NCB Corporate Banking Division. Also sharing in the occasion is NCB Deputy Group Managing Director Mr. Dennis Cohen.

The Corporate Banking Division of National Commercial Bank Jamaica Limited recently held its second  annual Corporate Round Table Breakfast at the Hilton Kingston Hotel.  The event was hosted by NCB’s Chairman the Hon. Michael Lee-Chin along with co-hosts Group Managing Director, Mr. Patrick Hylton and Mrs. Marjorie Seeberan, General Manager of the Corporate Banking Division. Participating in the Corporate Breakfast, where the discussion was centered on “Foreign Direct Investment: Key Driver for Jamaica’s Future Economic Growth?”, were CEOs and other leaders across Jamaica’s business sectors.

The keynote address was given by Senator the Hon. Don Wehby, Minister Without Portfolio in the Ministry of Finance & Public Service. Senator Wehby highlighted Jamaica’s underperformance compared to other regions and our Caribbean counterparts,  saying in relation to the period 2003 – 2007 “The nation’s GDP grew by a meager 1.7% when compared to Trinidad’s 9.7% and Barbados’ 3.6% during the same period. The main solution is to grow the Jamaican economy and the GDP. Foreign Direct Investment (FDI) is only one of the ways to do so.” He also expressed the need to:

• Generate substantial revenue in order to reduce Jamaica’s debt burden
  
• Invest in healthcare and national security
  
• Grow and protect our human capital
  
• Develop ports which are among  the best in the world
  
• Invest in education
  
• Simplify tax system for corporate investors
  
• Identify ambassadors of business who could form a high-level team to market Jamaica and solicit FDI from corporations worldwide.
  

Mr. Wendell Mottley, Managing Director of Emerging Markets at Credit Suisse based in New York, and a former Minister of Finance of Trinidad and Tobago gave an impassioned presentation on the ‘Regional Perspective - Success Stories’. Mr. Mottley urged Jamaicans in his plea “Do not give up hope.  In the 1990s Trinidad was once in the same position of economic crisis as Jamaica is today. A sense of urgency has to be present for the change to be made.”   He further stated in his presentation “Without the heavy direct investment and coordinating role of the state, Trinidad and Tobago’s energy industrialisation would not have taken place.”

Mr. Mottley gave practical examples to a riveted audience, as he cited the development of Trinidad’s energy industry which played a vital role in the country’s economic turnaround. He went on to endorse several of the points raised by Senator Wehby and reiterated “In the land of free enterprise… the role of the State should not be underestimated. A big solution is needed for Jamaica’s big problem which must be led by the State.”

He suggested that Jamaica identify its “value proposition” based on distinct competitive advantages, establish a facilitative macroeconomic environment, and initiate the development of infrastructure (including human capital) required to support the roll-out of the value proposition.  All those factors taken together would then bring the FDI needed to further grow Jamaica’s infrastructure and productive capacity.

Mr. Mottley is the author of the newly-released book entitled 'Trinidad and Tobago Industrial Policy 1959-2008' which sets out how Trinidad and Tobago established itself as a world-class gas export hub, and the world’s largest exporter of methanol and ammonia.

In addition to the considerations surrounding FDI, some key points raised by the private sector leaders for consideration and action were:

• Tax compliance - critical for the generation of revenue.  The recent success of an extra $6.5 billion collected under the government’s tax amnesty programme was cited.
  
• The turnaround time for new legislation is very long, and additional resources may be required for drafting purposes.
  
• Execution is a major challenge.  Whereas there are already many plans addressing all of Jamaica’s issues, what is lacking is execution. According to NCB’s Deputy Group Managing Director Dennis Cohen, we all need to take responsibility as ‘the role of government is too important to be left to the government alone.’
  

NCB’s Corporate Banking Division (CBD) led by Mrs. Marjorie Seeberan has established itself as the preferred arranger and underwriter of structured financings across industrial and commercial sectors within Jamaica.  Besides arranging deals, CBD is driven to engage corporate Jamaica through the captains of industry, in dialogue on issues pertinent to nation building and economic development.