MINISTRY PAPER NO~

DEVELOPMENTS IN INDUSTRY.

Last year the manufacturing sector ~f the economy continued

t~ hold the position it f irst achieved in 1963 as the largest contri­

butor to Jamaica's gross domestic product, accounting for 15.1% (£56.2

million) of the total GDP figure of £371.7 million. The contribution

in 1967 was 14.9% (£50.8 million) ~f the total GDP figure of £340.8

million for that year.

2. Gro~th in the manufacturing sector was much faster last year

than in 1967, the increa se being 10.~~ (£5.4 million) as compared with

2.~~ (£1.2 million) in the previous year. This resulted from the high

level ~f activity in t~e country, with substantial requirements for

cement, metal products, furnitu~e and fixtures, printing and publishing ,

chemicals and chemical products, made-up textiles and miscellaneous manu­

factures and repairs.

3. An examination of the Island's yearly total investment sh~ws

that the greatest absolute increase at current values took place in 1968,

when outlays were £27.5 million more than in 1967. Total investment

moved from £88.3 million to £115.8 million. This increase was more than

double the previous record increase of £12.5 million in 1967 and in

relative terms was 31%, as compared with 16.5% in 1967. This is highly

expressive evidence ~f confidence in our economy.

4. In 1968 the value of domestic exports increased substantially

from £80.4 million to £91.4 million.

5. Exports of manufactured goods, which declined by 5.5% in 1967,

showed the largest increase recorded in any single year by moving from

£8.5 million in 1967 to £10.8 million in 1968 - an i n crease of 27%.

Clothing; mi~eral fuels, lubricants and related materials; essential

oils; toilet, polishing a nd cleansing preparations constituted 71.~~

o£ the total export of manufactured goods in 1968. Exports ~f all these

products increased significantly. Increases were also registered in

cement, as well as textiles and textile products. on the other hand,

there were decreases in the value of exports of dyeing, tanning and

colouring materials; pa per and paper products; and manufactures of

metal. Over the entire 1963/68 period export s of the following mor e

/than •••••

APPENDIX I .

APPROVED COMPANIES OPERATING OUTSIDE THE CORPORATE AREA

Production Year --rcal endar ) Company

1957

1959 1960

1961

1962

1964

1965

1966

1967

1968

l. Ame rica Form Brassiere Co . Ltd .

2 . Carib Metal Works Ltd .

3 . Wi nwell Manufa cturing co . Ltd .

4. Undergarment Accessories Ltd .

5. Ha r bour Road Manufacturing Ltd .

6. Spanish Town Manufacturing Co . Ltd .

7. 8.

9.

J a y tex Finishing & Print Work Ltd .

J amaica Ce ramic Indus tries Ltd . ( formerly Worcester Porcelain co . (Jamaica) Ltd ).

Caribbea n Button Company Ltd .

10 . Bl ue Ribbon Products co . Ltd .

Il; Caribbean Bitumals (Ja , ) Ltd .

12. Col onial Industries Ltd .

13 . Caribb ean Asbestos Products Ltd .

14 . F . P . E. Car ibbean Ltd , ( formerly Univex ( J ama ica) Lt~ .

15 . I . T . T. Standard Electric Co , of Jamaica Ltd .

16. Va~ Leer ( Ja . ) Ltd .

17 . W. I . Chi pboard Ltd .

18 . W. I . Synthetics Ltd .

19 . Sterling Drug Int ernat ional Ltd .

20 , Nat i onal Fibres Ltd .

21 . Hosiery Company of Jamaica Ltd .

22 . Recki tt & Colman ( W. I . ) Ltd .

23 . Textiles of Jamaica Ltd .

24 . Goodyear Jamaica Ltd .

25 . Jama ica Food Products Ltd ,

26 . Fabric Manufacturers Ltd .

27 . Carib steel Company Ltd .

28 . Pr i de Manufocturing Co . Ltd . ( form e rly Atlas Manufacturing Co. Ltd . )

29 . Gered Ltd .

30 . Caribb ean Foods Ltd .

31 . Robert Shaw Co . (Jama ica) Ltd .

32 . General Di stributors Ltd .

33 . N. M. Holden & Sons Ltd .

34 . Wi bac o Limited

*35 . Standard Building Products Ltd .

Locat ion

Port Maria , St . Mary

Falmouth, Trelawny

Lucea , Hanover

Spanish Town 1 st . Catherine

Spanish Town 1 St . Catherine

Spanish Town , st . Catherine

Spanish Town , st . Catherin e

Spanish Town , st . Cathe rine

Lyssons 1 st . Thomas

May Pen , Clarendon

Rio Bueno , Trelawny

Above Rocks , St . Catherine

Montego Bay , .st . James

Spanish Town , St . catherine

Yallahs , St . Thomas

Twickenham Park , St . Catherine

Spanish Town , st . catherine

Twickenham.Park , st . catherine

Whit e Marl , central Village, St. Catherine .

Lyssons , st • . Thomas

Eleven Miles , St . Thomas

Twickenham Park , st. catherin8

May Pen , Clarendon

Morant Bay, st. Thor.as

Highgate , st . Mary

Old Harbour, .st . Catherine

Spanish Town , st . Catherine

Eleven Miles , St . Thomas

Old Harbour , St. catherine

Twickenham Park , st . Ca therine

Old Harbour , st. Catherine

Seven Mi l es , .st . Thomas

Spanish Town , st . C&therine

Lucea , Hanover

Spanish Town , st . Catherine

/* 36 •••••

' . . .

-2-

Production Yea r (Calenda r ) Company

1969

* 36 o B. I . c . c . (Jamaica) Ltd .

* 37 . Clark Brothers Lt d .

* 38 . Alcan Products of J a maica Ltd .

* 39. Leathercraft Ltd .

* 40 . Angela Bra (Jama ica) Ltd .

* 41 . Northern Industri e s (Ja . ) Ltd .

Location

Old Harbour; st. Catherine

Old Ha rbour, St. catherine

Twickenham Park , St . Catherine

Spanish Town, st . catherine

Port Maria; st . Mary

Port Mar i a , st . Mary

NB *Establ ished during l a st financia l year .

.. ' I ..

Breakdown of Loans Approved by Small Businesses Loan Board in 1968

CATEGORIES

Bakery Business

Baking Powder Manufacturing

Black P eppe r Manufacturing

Blockmaking

Canning Operations

Clay Products

Comb Manufacturing

Cosmetic Manufacturing

Craft Work

Drycl eaning & Laundry

Garment Manufacturing

Garage Operations

Glue Manufacturing

Hand-Bag Manufacturing

Mechanical Engineering

Metal working

Millinery Business

Miscellaneous Operations

Mirror Manufacturing

Piano Manufacturing

Printing

Shoe Manufacturing

Spices & Seasoning Manufacturing

stone crushing

Stop Signs Manufacturing

Syrup Manufacturing

Tile Manufacturing

Upholstering

Wall Plaque Manufacturing

Woodworking

NUMBER

7

1

1

5 2

3

1

1

2

11

31

4

1

1

2

5 2

12

1

1

4

13

1

2

1

1

5 2

1

29

APPENDIX II

AMOUNT

£ 8,250

400

. 150

9,050

5+000

4,200

1,ooo 2,000

.600

14,275

22 1 0 50

6,750

2,250

.400

2,200

7 , 500

.400

17,100

2,500

2 4500

6,ooo 10,900

2 ,500

4,500

1,500

2,500

9,750

1 , 500

.200

33?975

153 £181,900

-

-2-

than doubled: chemical elements and components; medicinal and phar-

maceutical products; Portland cement; and manufactures of metal.

6. With our accession to C~RIFTA, exports to the commonwealth

caribbean improved ~ubstantially, especially clothing and cosmetics to

Trinidad and Tobago, and cement to Guyana. Preliminary data for 1968

indicate that our exports to CARIFTA member territories increased by

40% over 1967, from £1.8 million to £2.5 million and by 76% during the

five month period last year when we were members of CARIFTA. A further

figure of £2.3 million was exported to other countries in the region -

Belize, Dominican Republic, Bahamas and Bermuda.

The establishment of the National Export council is designed to ensure

that our export expansion will be accelerated.

7. Official records maintained by the Factories Inspectorate of

the Ministry of Labour aild National Insurance indicate that at the end

of 1968, there were 1,106 registered manufa cturing industries in opera-

tion throughout the Island, employing nearly 44,000 workers. This is

another significant index of the major contribution the manufacturing

sector is making to the national economy.

New Industries Established with Incentives:

8. · Fourteen new factories went into operation during 1968/69.

Taken on a calendar year basis, 23 new factories were established in

1968, compared with 19 in 1 967. The 14 established during the 1968(69

financial year represent a fixed capital investment of £3.9 million,

and provide new jobs for 1 1 100 persons. The new plants brought the

total number operating under the incentives legislation to 181 at 31st

March this year. They now provide direct employment for approximately

12,000 persons, and ha ve a total fixed capital investment of £27

million.

9. The products being manufactured by these new factories include . . . work gloves, leather bu~tons, novelties, brassieres and ancillary

fittings for brassiere~, plastic fill e r, pla stic ~oys, office paper

and typew~iter r~bbons, keypunc~ tabulating cards, low pressure gas

cylinders, flour, b a gasse board, electrical wir e s and cables, and

aluminium extrusions. The last four products are valuable additions to

the Island's indus trial complex, the combined forei gn exchange savings

/resulting •••••

-3-

resulting from their establishment being very substantial .

10 . The flour/ animal feed project now employs over seventy workers .

Th e plant is capabl e of producing 40 , 000 short tons of baking flour per

annum and the feed mill 26,000 short tons of livestock feed per annum .

Production of bagasse board on a commercial scale commenced last year

but the plant has been experiencing certain technical difficulties . A

substantial addi tional sum is being spent by the Company to rectify the . .

s i tuation . Production will be between 25 , 000 and 30 , 000 short tons of

bagasse board per annum .

Al um i nium extrusions now b e ing manufactured locally should be of

conside r able benefit not only to other manufacturing industries but also

to t h e construction industry .

11. At 31st March this year , t hirty - one other compani es had b e en

granted approved sta tus but had not yet commenced production . The mo Et

s i gn i ficant of these projects from the point of view of overall economic

benef i ts to the Island are those involving the production of caustic

soda , corrugating medium and tissue ~rade pa p e r, galvanised ~ater pipes ,

electrical equipm ent a nd accessories , .knitt e d t extile fabrics, table salt

and woven plastic sacks . In a ddition , seventy-two a pplica tions for

approval of compani e s were being processed at 31st March , invol ving a

wi de range of products for the dom estic market, as well as for export .

Whi le these new deve lopm ents are taking place, it is important to note

the consi derable amount of expansion of existing fact ories which is at the

same time taking place .

Lo c a l Inv estors :

12 . Increas i ng interest is being taken by loca l investors in

establishing manufacturing operations . Of the 181 companies operating

under incentive laws at 31st March , eighty- four are 100% local owner-

s hip and forty are joint ventures between local and foreign interests .

I n effect , there is local participation in 69% of the approved compani e s

now operating in Jamaica . This increase in local ownership is in line

with the policy of J amaicanisation .

Decentral isation of Industry:

1 3 . seven new incentive factories were estab l ished l ast year in

r ura l areas , bringing the total numb e r operating with inc entives out side

/ of ••• . •

-4-

of the Corporate Area to forty-one at 31st March . Details of the rural

locat i ons of these approved companies are shown in Appendix I . The

products being manufactured by the new companies are work gloves?

alum ini~m extrusions, e lectrical wires and cables, bagasse board, leather

buttons , brassieres ~n d novelties .

With the n ew provisions in the Industrial Incentives Law and the Export

I ndustry Encouragement Law for granting additional incentives for f actori e s

in rural loca tions , it is confidently expected that the rate of develop-

ment of manufacturing activity in rural areas wil l progressi.nely expand .

Fa c to r y Building Programme:

14 . The factory building programme of Jirc is an important plank in

the Governm ent's industrial po licy. During 1968/69 the Corporation

compl e ted construction of three factories in rural areas with an approxi-

mate floor area of 89 , 000 square feet, at a cost of £295 , 000 . Negc~ia -

t i ons are current l y being conduct e d in rela tion to four othe r factori es

and one extension, all of which are a lso in rural locations .

Services to Industry - Productivity Centre of JIDC :

15 . The activities of the Productivity Centre which was established

in 1967 with the assistance of ILO and the Unit e d Nations Development

Pr ogramme have expanded considerably . The assignments ca r ried out have

shown a healthy evolutionary trend , with a s i gnifica nt increase in

demand for the Centre ' s services . In 1968/69 local counterpart staff

was increased from 16 to 20 in accordance with the 1968/72 expansion

pl an . An active programme to extend on-site training and staff develop-

ment was introduced ; assi gnments covering Production Planning and Control ,

/Stock control i Pl ant Layout , Method Study , Time Study and Organisation of Ma i ntenanc e

have been undertaken primarily for this purpose. Expansion i n r e cruit-

ment of local counterparts wo rking with the United Nations specialists

helped the Centr e to increase its output both in consultancy and

training services to i ndustry .

16 . The inte rest shown by management, as well as worke r s ' repr esen -

tat i ves , in wage systems and incentive schemes has broadene d . Meetings

have been arranged with trade union officials and employers ' represen-

tatives to establish clea rly the Productivity Centre's role in this

field as an impart i a l technical advis e r a nd sourc e of help . Useful

/progr ess •• a • . ,

-5-

progress has also been made in assisting organisations to set up their

own work- study systems. Six organisations are now engaged in recruiting

staff in this area.

The growing public confidence the Centre is enjoying is illustrated

by the fact that the Joint Industrial Council for the Port of Kingston

has sought its technical advice on the design and operation of an

inc ent ive scheme for otevedores .

17 . The following summaries indicate the consultancy assignments

and cours es conduct ed by the centre during 1968/69:

Consultancy Assignments

(i) Industria l Engineering

Production Planning & Control

Layout & Methods

Methods Improveme, .t

Work Standards and Incentives

Capacity Surveys

Maintenance Organisation

In-plant Training

(ii) Management Accounting

Product Costing

Costing Systems

stock & Cost Control

Co st Accounting

Cost & Financial Control

Organisation-Management study

Job Costing System

(iii) Marketing

Market Research

Distribution & Cost Research

Sales Evaluation

Sales Potential

Product Profitability

Survey - Marketing Manpower

Cours es Completed

Maint enance OrganisationP

Work-Study Appreciation for Management

Work-Study Appreciation for Trade Union Delegat es

Work-study Technicians Training

Marketing Efficiency Methods I mprovement

Joint Labour/Management Seminar Int ~rnal Develo~~ent Seminars

25

4

3

2

6 6 2

2

21

6 2

7 1

3 1

1

10

5

1

1

l

1

l

ll

2

2

1

1

1 l

1 2 jm..., . i :·:i :··

' ..

-6-

Training Depart ment of JIDC

18 . In addition to the invalu able work so far done by JIDC ' s

Productivity Centre in up- gradin g industrial skills , the Corporation's

Tra ining Depar t ment carried out a full programme which r ec~ ive d wide

a cceptance by both industry and comm e rce. During the year, thirty-nine

courses we r e h e ld, involving 953 participants . These c ou rse s r anged

from s upe rvi so ry management to report wr i ting :

Supe rvisory Management

Training Co-ord inators

Better Te l ephone Communicat ions

Report Writing

Sma ll Businessmen

Leadership Training (Jayc ees)

Dec ima l Currency

Courses

27 1

1

1

1

1

7

39 ==

Partici- Participant pants Hours

462 20 .790

13 1,170

12 180

76 456 10 120

99 144

281 .843 --953 Q ,703 ~

19 . For the fir st time , a course was introduced for the training of

personnel r espons i b l e for organising and implementing training pr ogr ammes

within an organisation . The Training Department also a ssist e d the f ollow-

ing organisat ions and i nst i t utions in o rg~n ising training actions:

Ministry of Educat ion

Ministry of Labour

J amaica Manufa cturers ' Association

- Vccat iona l Guidance Course

- Workshop Supervi so r s ' course

- Educat ion Committee

Caribbean Nurses ' Organisation - Annua l Confe r ence .

Several l e c tures were p r esented to se rvic e organisations a n d

othe r institu t ions , the main theme for the year be i ng " Management ' s

Responsibility for Training" . As a result of these discussions there

is growing awareness on the part of top - management that in-plant

training i s an obligation of the organisation and a tool of top-manage-

men t to realise the objectives of t he organ i sat ion more effect ively .

21. The National Advi sory committee on Productivity, whi ch was s e t

up in 1968 to advise Government through the Ministry of Tra de & Industry

on the r espects i n which the Productivity Centre and JIDC ' s Training

Depa rtment ma y make the greatest i mpa c t on the country ' s developm ent 1

hns established three representative sub - committees - dealing with

/operationaL . • .

-7-

operational policy; worke r/management productivity r elat ionships; and

public relat ions, publicity a nd promotion. The influenc e of these sub-

committ ees has been in evidence ir. the programme of work being impie -

mented .

22 . Special acknowledgoent is due to the Board of Directors, as

well as the staff , of JIDC for the valuab l e contribution they continue

to make in the public interest .

Ministry ' s Industrial Training scheme

23 . The industrial training scheme established by the Government

in 1963 for ~ending suitably qualified young men to the United Kingdom

for training , principally in mechanical, e l ectrical and civil eng ineerin

has fully justifi e d itself . 103 young men are currently undergoing

training and it is planned,to send another 25 this year .

Over the period 1963/68, 121 yvung men were sent forward and only 5

have been withdrawn for various reasons .

24 . Last year tAe first group of 13 completed the ir training and

returned to the Island . Several are presently attached to the Producti­

vity Centre of JIDC, whi l 3 the others have readily been employed by

private firms . A furthe r batch will be returning this year on completion

of t r aining .

25 . The minimum qualification aimed at in the scheme is the U. K.

Highe r National Certificate . However , a number of promising students

ha ve been all e wed to proceed to higher training~ 21 are working towards

the Highe r National Diploma, l towards the Diploma in Technology, and

14 towards the B. Sc . Honours degree course . The numbers now pursuing

the va rious courses are :-

Course

Hig h e r National Certificate

Mechanical Enginee ring

Electrical Engine ering

Structural Engineering

Chemical Engineering

Production Eng inee ring

Nos .

55 8

l

l

2

67

/C/Fwd . 67 . ..

26 .

-8-

Cour se Nos

Hi ghe r National Diploma

Me chani cal En g inee rin g

El ectrica l Enginee ring

Me t a llurg y

Civil Eng inee ring

Diploma in Te chnolog y

Mechanicc l En gineering

B. sc . Degr ee

Me chan ica l En g inee ring

El ectrical En g i nee ring

Pro duction Eng i nee ring

Civil En g ineering

B/Fwd . 67

11

7

2

1

1

9

3 1

1

103

Small Busine s~ e s Loan Board

The Boa rd i s fulfilling ~ valua ble rol e in supplem enting the

wo rk of oth e r a gencies in increas ing production a n d e mploym ent? through

the assista nc e it continue s t o g ive to a wide va rie ty of small, produ c tive

b u s i ne s,3e s . Th e fa cts continue t o confirm tha t ove r th e course o f the

past seve n ye ar s the Boa rd ha s ma inta i ne d so und ma nagement of it s af f a i r s .

The record of pa ym ent of s inking fu nd and inte r es t by borrowers cont inue<

to b e good , as a conseque nc e of which t he Boa rd ' s curr ent incom e fr om

in t e re s t is not only covering r e current expe n ses for a dmin i st r a tion and

operation but l a st year l e ft a s urplu s of approxima t e ly £4 , 800 ~

Over the period 1963 t o 1968 int e re s t colle ct e d by the Board a mountec

to £96 , 980 , whil e r e curr ent exp ense s f or a dministrat ion a n d ope r a ti on

cam e to £90 ,177 , l eaving a t o t a l surplus of £6 , 803 a t t h e e nd of 1968 .

27 . At the end of Ma rch this yea r , th e tota l fund admini s t e r ed

by the Boa rd s t ood at £539 ,000 . In 1967/68 a nd a gain in 1968/ 69 a

g r ant of £34 , 000 was made to th e Boa rd as well as a loa n of £50 , 000 ,

which togeth e r r e pre sent a sub s t a ntia l increase ove r the annua l a lloca-

tion for a ny pre vious year . Th e purp ose was t o i mpl e men t Governme n t ' s

decision to r a ise t he pe r mitt e d c e iling on ind i vidua l assista nc e given

by th e Board fro m £1 , 000 to £2 , 500, in r esp on se to th e de ma nd for loans

above the for me r limit a nd a l so t o p e r mit ex pan s ion of t h e Bo a rd l s

/over a ll •••••

-9-overall loan programme.

28 . During 1968 the Board approved 153 loans involving £1 81 , 900 .

A statement of these loans classified in terms of product ion activity

is attached as Appendix II . The m~ in areas in which assistance was

given w~re wood -work~ng, garment manufacturing, dry cleaning a nd

laundry, shoe making , tile making and block making . The total amount

of loans actually paid out last year was £174 , 243 . Comparable figur es

for 1967 ind icate that 1Lt-9 loans were then appro ved amounting to

£133 , 830 , of which £93 ,300 was paid O'lt.

Lookin g back over the period 1963 to 1968, the summary position is

tha t 783 loans amounting to £566 ,107 were ma~e by the Board . Loan

r epayment s over the period amounted to £366 , 206 .

29 . As in recent years , the Board continues to pay increas ing

attention to the needs of borrow ers in rural areas . LoanG to such

borrowers approved over the l as t three years were :-

30 . The

congratulated

MTI FILE NO . 66/l/03

1966 £39 ; 925

1967 42;780

1968 55 , 650

membe rs of the Small Businesses Loan Boa rd are

on this record of the ir overall achievements.

ROBERT C. LIGHTBOURNE Minist e r of Trade a nd Industry ,

8th May , 1969 .

to be