Manufacturers feel left out

Operators in the manufacturing sector are not pleased that there were no measures in the 2022 Budget aimed at decreasing production costs for them.

In fact, in a statement on Tuesday the Barbados Manufacturers’ Association (BMA) urged Government “to do more” for manufacturing.

President of the BMA John Marshall said the manufacturing sector remains an important contributor to foreign exchange and the development of human resources especially in the area of skills, job creation and economic growth in general.

He called on Government to do more to reposition manufacturing in Barbados to make it more sustainable.

“Data shows that manufacturing in Barbados declined significantly over the last 30 years and that timeframe coincides with a period where successive governments operated under the mindset that the only way to reduce the cost of living is to reduce the cost of finished product entering the island,” said Marshall.

“I’d argue, in real terms, that mindset has not reduced the cost of living, and in fact, inflation in Barbados exceeds most industrial averages, and the same is true I’m sure for nearly every other country that took this approach. So what then is the point of perpetuating the mindset? Rather, they [the Government] should turn their focus onto a much more sustainable path, and look to develop local manufacturing,” he said.

Marshall said while the BMA supported all efforts made by the Mia Mottley administration to lower cost, it would be equally supportive of a solid plan to grow manufacturing and “improve the fiscal environment in a manner that enables more Barbadians to open businesses in the sector”.

“There must be a continuous effort to provide opportunities and incentives for the average Barbadian to create competitive businesses in the manufacturing sector as a mechanism of financial and social enfranchisement. This is only possible if fiscal and trade policy are strategically developed and/or implemented in a manner that provides a conducive environment to do so,” said Marshall.

During her Budget presentation on Monday, Prime Minister Mia Mottley expressed a desire for manufacturing to be ramped up in Barbados.

She said legislation would also be introduced to establish a free zone as part of the island’s export strategy for manufacturing and non-financial service.

Mottley also reported that the Ministry of Agriculture was at an advanced stage in finalising the drafting of sanitary and phytosanitary legislation, which she said should open significant avenues for export potential.

The BMA indicated that for manufacturers to produce more the fiscal environment must be conducive to manufacturing, with measures to reduce production costs, “as was given to other sectors”.

“As it pertains to trade, we support government’s move to amend the sanitary and phytosanitary requirements to allow manufacturers to export to the European Union (EU) under the EU-CARIFORUM Partnership Agreement.

“The BMA strongly believes that the numerous trade agreements Barbados has signed must go beyond the invitation of foreign companies to take advantage of our local market. Instead, they should be implemented in a manner that provides opportunities for manufacturers and the local population, in a meaningful way,” said Marshall.

The association insists that trade agreements should be implemented in a fashion that stimulate manufacturing, employment and entrepreneurship for Barbadians, not in a manner that causes business closures and unemployment.

Moreover, there must be a plan to develop and encourage sustainable manufacturing businesses as a means of gainful employment, as a part of the implementation strategy of these agreements, the BMA said in its statement.

Addressing a post Budget breakfast forum hosted by the Barbados Chamber of Commerce and Industry (BCCI) and PricewaterhouseCoopers (PwC) on Tuesday, businessman Andy Armstrong said he welcomed the planned introduction of sanitary and phytosanitary legislation.

Armstrong, who is the Chairman of the Green Committee of the BCCI, said the legislation will help manufacturers and exporters.

Chairman of the Barbados Private Sector Association Trisha Tannis also called for continued “protection” of the manufacturing sector, while highlighting the need for greater consultation with those in the sector to determine the best policies.

“We have to highlight the fact that our manufacturing sector does need to be continually protected and we need to make sure we consider them as we try to shield imports as they come in,” said Tannis.

“I know there are hints and tips and strategic intents but what we are seeing particularly in manufacturing and agriculture there is a little bit of disconnect from the policy development and what the sector is saying that we need. So I would encourage the government to consult in real terms on the ground with these sectors as part of crafting the policy,” said Tannis. marlonmadden@barbadostoday.bb