Holness says Petrojam is a fiscal risk, defends gov't actions

Prime Minister Andrew Holness has declared that the state-owned oil refinery Petrojam is facing a fiscal risk and he is now focused on avoiding any development that could be detrimental to Jamaica's growth agenda.

Petrojam's viability is threatened because of its long-delayed upgrade and the impending loss of the Jamaica Public Service Company (JPS) when it switches from using heavy fuel oil to liquefied natural gas to operate its power plants.
The JPS is Petrojam's largest customer. 

 “I am not running a Government that is under the sea, not knowing what is coming in the future as we have had Governments do in the past," Holness said in Montego, St James yesterday.

Earlier this week, the government announced plans to enact a law to retake Venezuela's 49 per cent share in Petrojam following a series of unsuccessful efforts to otherwise assume the shares.

The Opposition has called the move hostile, unnecessary and premature. 

Yesterday, Holness asserted that he was not fazed.

“Those who are critical of the Government now, should explain why we are happening upon situations that are creating fiscal risks," he said.

Last year, the auditor general had reported that Petrojam's problems were compounded by the impending loss of its largest customer.

“This Government is giving the people of Jamaica the commitment that we will not just manage the situations that exist now, but we are managing the situations to come and you can be assured that the Government I lead will always make decisions in the interest of the Jamaican people first," Holness said.

The Prime Minister was giving the keynote address at the official opening of a new 6,300-square-foot business process outsourcing facility at the Montego Bay Free Zone.

 The new facility, occupied by Unique Vacations Limited, currently employs over 200 agents and provides support services for Sandals and Beaches resorts, as well as Concentrix, a publicly traded US-based firm offering services in more than 70 languages.

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