Sep 2006 Financial News

Cement crisis eased

Sep 19, 2006

The cement-starved construction sector is now experiencing relief following the importation of more than 40,000 tonnes of cement by two private sector entities last week.

Mainland International and ARC Systems Limited last week imported 42,500 tonnes and 2,300 tonnes of cement respectively from China.

President of the Master Builders Association of Jamaica, Michael Archer said the shortage of cement had eased following the shipment of the 44, 800 tonnes of cement and the 57 tonnes expected by month end.

"In the short-run we are getting to the end of the crisis, but we need to have this level of private sector importation continue to the end of the year to ensure that we do get over it (the crisis)," Mr. Archer told The Gleaner.

When contacted, Minister of Industry, Technology, Energy and Commerce, Phillip Paulwell, confirmed that the cement crisis had eased as the major players in the industry reported that the demand for bulk cement has been satisfied.

He said that through the Government's programme with Cuba, some 8,000 tonnes of cement will arrive in the island next week while Caribbean Cement Company Limited (CCCL) is expected to supply the market with 16 tonnes this week.

Concerns about the quality of cement distributed by CCCL were brought to the fore by Opposition spokesperson on Industry and Commerce, Shirley Williams in February of this year, following the distribution of 500 tonnes of faulty cement by the company.

A shortage followed which led to a halt in construction and the loss of thousands of construction and related jobs.

Mr. Paulwell had announced a 15 per cent waiver on the Common External Tariff (CET) for three months in May, but this caused an uproar in the construction sector.

However, following several calls for her intervention, Prime Minister Portia Simpson Miller later extended the waiver on cement imports to one year.

Meanwhile, the Consumer Affairs Commission (CAC), is reporting that between April and September of this year, a total of 104 complaints were received regarding faulty cement.

Pash Fuller, director of the western region at the CAC, told The Gleaner that of the 104 complaints, 47 have been resolved and payments of $6.4 million made.

Yahneake Sterling, Staff Reporter
The Jamaica Gleaner
Tuesday, September 19, 2006.
http://www.jamaica-gleaner.com/gleaner/20060919/news/news3.html