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MINUTES

OF THE

HONOURABLE JAMAICA HOUSE

OF REPRESENTATIVES

At a meeting of the Members of the House of Representatives held pursuant to adjournment at Gordon House in the City and Parish of Kingston on Tuesday, the

19TH DAY OF JULY, 2011 The House met at 2:24 p.m. o’clock PRAYERS Prayer was offered by the Reverend Ronald Thwaites. CALL OF THE ROLL

PRESENT WERE:

Hon. Marisa Colleen Dalrymple Philibert, MP, Speaker Mr. Tarn Andrew Peralto, MP, Deputy Speaker Hon. Andrew Michael Holness, MP, Minister of Education and Leader of the House Hon. Orette Bruce Golding, MP, Prime Minister & Minister of Defence Hon. Lester Michael Henry, CD, MP, Minister of Transport & Works

Hon. Rudyard Conrad Spencer, OD, MP, Minister of Health Hon. Delroy Hawmin Chuck, MP, Minister of Justice Hon. Clive Arthur Mullings, MP, Minister of Energy and Mining

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Hon. Daryl Wesley Phillip Vaz, MP, Minister without Portfolio in the Office of the Prime Minister, with responsibility for Information and Telecommunication Hon. Robert St. Aubyn Montague, MP, Minister of Agriculture and Fisheries Hon. Shahine Elizabeth Robinson, MP, Minister of State in the Office of the Prime Minister Hon. Laurence George Broderick, MP, Minister of State in the Ministry of Energy and Mining Hon. Desmond Gregory Mair, MP, Minister of State in the Ministry of Education Mr. Noel George Delano Arscott, MP, Clarendon, South Western Mr. Peter Murcott Bunting, MP, Manchester, Central Mr. Roger Harold Clifford Clarke, MP, Westmoreland, Central Mr. Colin Alfred Alexander Fagan, MP, St. Catherine, South Eastern Dr. Fenton Rudyard Ferguson, MP, St. Thomas, Eastern Dr. Morais Valentine Guy, MP, St. Mary, Central Ms. Lisa Rene Shanti Hanna, MP, St. Ann, South Eastern Mrs. Sharon Merle Hay-Webster, MP, St. Catherine, South Central Mrs. Maxine Antoinette Henry-Wilson, MP, St. Andrew, South Eastern Mr. Joseph Uriah Hibbert, MP, St. Andrew, West Rural Mr. George Anthony Hylton, MP, St. Andrew, Western

Mr. Derrick Flavius Kellier, CD, MP, St. James, Southern Dr. Kenneth Wykeham McNeill, MP, Westmoreland, Western Mrs. Natalie Gaye Neita-Headley, MP, St. Catherine, East Central Mr. Dean Alexander Peart, CD, MP, Manchester, North Western Mr. Michael Anthony Peart, MP, Manchester, Southern Dr. Peter David Phillips, MP, St. Andrew, East Central

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Mr. James Rudolph Edward Robertson, MP, St. Thomas, Western Mr. Derrick Charles Smith, CD, MP, St. Andrew, North Western Rev. Ronald George Thwaites, MP, Kingston, Central Mr. Clifford Everald Errol Warmington, MP , St. Catherine, South Western

STATEMENTS BY MINISTERS

The Minister of Energy and Mining, the Honourable Clive Mullings made the following statement regarding the Jamaica Public Service Company (JPSCo.) Shareholding: The House is being advised that Cabinet yesterday granted consent to Marubeni Corporation to transfer 40% of the shares in the Jamaica Public Service Company (JPSCo.) to Korea East-West Power Company Limited, commonly referred to as EWP. Following the transfer, Madam Speaker, the Government of Jamaica will own 19.9% of the shares in JPS, Marubeni will own 40% and EWP will own another 40%. Some three thousand shareholders own the remaining 0.1% of the shares. Madam Speaker, EWP is expected to significantly improve the operations of the JPS. The company is wholly owned by the Government of South Korea and ranks as the largest thermal power company in the Republic of South Korea, owning and operating in excess of 9000MW of power generation facilities in the country. It provides 11.5% of Korea’s electricity on a nationwide level. As a power generator, the company has experience in the use of all fuel types. Quite significantly, it provides 24% of the electricity supply by the use of Liquefied Natural Gas (LNG) in South Korea, that is, some 2,100 MW of electricity from LNG. By contrast, Madam Speaker, the total electricity demand for Jamaica currently stands at 800 MW. EWP, Madam Speaker, is a member of the Korea Electric Power Corporation which transmits and distributes power to almost nineteen million customers throughout South Korea. EWP also operates power facilities in the US, Haiti, Phillipines, South America and throughout Asia. The company reported assets of United States Four Billion Dollars in 2010 and carries an A1 rating from Moody’s Investors’ Service. Madam Speaker, the House is to know that, notwithstanding the impressive resume´ of EWP, the Government deliberated long and hard on the application by Marubeni to sell 50% of its shares to EWP, as all factors had to be carefully considered. The main purpose being to aggressively pursue the best strategy to significantly reduce the high prices local consumers have to pay for electricity. Among the factors, Madam Speaker, was the need by EWP for the Government to formally include in the JPS licence, the extension of six years granted by the last administration in July 2007 to the term of the JPS licence. The House will recall that, in July 2007, when Mirant sold its 80% stake in JPS, certain operational measures were agreed, in principle, with the details to be worked out between JPS and the Office of Utilities Regulation (OUR). In exchange the then

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Government contracted the JPS that the licence was to run until 2027 instead of 2021. The OUR has implemented a number of these operational measures and has agreed timelines for the implementation of the others. Madam Speaker, this is not a blame game, the provision of electricity services is a capital intensive business that demands substantial investments. An investor usually requires, and receives, a contract for twenty years as it allows for the recovery of the investment to be spread over a reasonably lengthy period. This reduces the sum to be recovered annually. A shorter arrangement, Madam Speaker, would mean that the sum to be recovered each year could be so high that most consumers could not afford the services. It is against this background, Madam Speaker, that Marubeni and EWP requested that the Government honour the commitment given by Mr. Paulwell and the then Cabinet. After careful consideration, Cabinet decided that it was in the best interest of the country to honour that commitment. The JPS was the sole respondent to a Request for Proposals, issued by the OUR, for the generation of the 480MW of new generating capacity. The generation of electricity, as we all know, must be undertaken by way of a competitive process that is administered by the OUR. At this point, Madam Speaker, I must say to all the Members of this House and every citizen of this country, that the only real solution for significant and meaningful reduction in the price of electricity lies in the use of modern, efficient generating plants to generate the bulk of our electricity (that is base load) from cheaper energy sources other than the Heavy Fuel Oil. The dependence on oil over several decades without the necessary investments, to install modern efficient plants, is the source of our energy crisis. The generation of electricity takes up to 80% of the total cost to generate, transmit and distribute electricity island-wide. Hence, Madam Speaker, the replacement of these plants by modern efficient units, burning natural gas, is the strategy that has been adopted by this Government and commands our primary focus. Madam Speaker, I do believe that there was a suggestion in some quarters that the Government should have used the circumstance of EWP’s desire to invest in JPS to negotiate for competition in the transmission and distribution of electricity throughout the island. Such a suggestion, Madam Speaker, would offer no real savings or reduction in price to consumers, since the transmission and distribution of electricity only accounts for twenty percent (20%) of the cost of electricity. We do not have the time to undertake risky experiments and are obliged to consider the following factors: ● JPS, and its shareholders, have committed to install the 480MW of urgently required electricity, without a Government guarantee. There is need for a degree of certainty that the electricity to be generated will get to a sufficient number of customers in a reliable and consistent manner to make the project affordable for consumers and feasible for JPS. No company is likely to risk the substantial investment, by being dependent on other transmitters and distributors to reach paying customers, without requiring Government support (Guarantee) or indemnity.

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● The JPS also, Madam Speaker, would likely require substantial compensation for giving up or foregoing investments in the transmission and distribution system to lessen service interruptions and blackouts that plagued the supply some years ago. The recovery of those investments would have been projected over the remaining term of the licence, including the six years extension granted in July 2007. ● There are many communities or residential districts that have few customers spread over a relatively large area. At present, these customers are able to afford a supply of electricity because they are not required to bear the total cost for the transmission and distribution system that supplies their electricity. To break up the distribution and transmission network could result in these communities being left stranded without service. Investors are not likely to consider them attractive. Alternatively, the cost of electricity to these communities could become so high that it is totally prohibitive, much worse than the prices that they now have to pay. ● Significantly too, the OUR has advised that the breaking up of the transmission and distribution network would not likely lead to a reduction in the price of electricity. Rather, given smaller pools of customers who would be required to absorb the cost of different transmission and distribution systems, it could actually result in an increase in electricity prices. It should be recalled that the transmission and distribution network of the country is a continuous physical infrastructure and not wireless technology. ● The practical option to the Government is to ensure that the JPS, backed by its shareholders, undertakes the most expeditious installation of the 480MW of electricity, burning LNG. In the interim, Madam Speaker, the Government will continue to press JPS into implementing measures aimed at improving the efficiency of its operations and passing on the benefits to consumers. In this regard, we have negotiated additional amendments to the JPS licence. These include (a) the modernization of its transmission and distribution system towards the build-out of a Smart Grid so customers can better control their demand and supply of electricity; (b) allowing power wheeling along the transmission and distribution system so that customers who are able to generate electricity at one location can also use the power at another location; and (c) facilitating net billing for self generators of electricity; and the JPS is also required to agree that the threshold for the addition of renewable energy to the grid without the need for competition will be increased from 15MW to 25MW. Madam Speaker, in keeping with the consent granted by Cabinet for the transfer of the shares to EWP, a number of housekeeping matters will be necessary. These include the execution of an amended Shareholders Agreement to reflect that the shareholders in JPS will be the GOJ, Marubeni and EWP. The JPS licence will also be restated to include the amendments that were outlined above (The Minister of Tourism, the Honourable Edmund Bartlett, entered and took his seat).

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(Mr. Robert Pickersgill, M.P., St. Catherine, North Western entered and took his seat). (Dr. Omar Davies, M.P., St. Andrew, Southern entered and took his seat). (Mr. Luther Buchanan, M.P., Westmoreland, Eastern entered and took his seat). (Mr. Franklin Witter, M.P., St. Elizabeth, South Eastern entered and took his seat). (Mr. Karl Samuda, M.P., St. Andrew, North Central entered and took his seat. (Dr. Esmond Harris, M.P., Trelawny, Northern entered and took his seat). (The Minister of Labour and Social Security, the Honourable Pearnel Charles, entered and took his seat). (Dr. Donald Duncan, M.P., Hanover, Eastern entered and took his seat). (The Minister of Industry, Commerce and Investment, Dr. the Honourable Christopher Tufton, entered and took his seat). (The Minister of State in the Ministry of Industry, Commerce and Investment, the Honourable Michael Stern, entered and took his seat). (The Minister of State in the Ministry of Labour and Social Security and Deputy Leader of the House, the Honourable Neville Gallimore, entered and took his seat). (The Minister of Youth, Sports and Culture, the Honourable Olivia Grange, entered and took her seat). (The Minister of State in the Ministry of Transport and Works, the Honourable Othneil Lawrence, entered and took his seat). (The Minister of State in the Ministry of National Security, the Honourable Dr. St. Aubyn Bartlett, entered and took his seat). (The Leader of the Opposition, the Most Honourable Portia Simpson Miller, entered and took her seat). (The Minister of Finance, the Honourable Audley Shaw, entered and took his seat).

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ANNOUNCEMENTS The Clerk laid on the Table of the House, a copy of the following:

Ministry Paper No. 54/11 and

Annual Report and Audited Financial Statements of the

Public Accountancy Board for the Financial Year April 1, 2009 - March 31, 2010

(Ministry of Finance)

The Civil Service Establishment (General)

(Amendment) (No. 2) Order, 2011, Resolution under

The Civil Service Establishment Act (Ministry of Finance)

The Civil Service Establishment (General)

(Amendment) (No. 2) Order, 2011 under

The Civil Service Establishment Act (Ministry of Finance)

The Constabulary Force (Interim Provisions for Arrest and Detention) Act

(Extension of Duration) Resolution, 2011 under

The Constabulary Force (Interim Provisions for Arrest and Detention) Act (Ministry of National Security)

Certified Appropriation Accounts

Head Ministry/Department Financial Year 2831 Attorney General’s Department 2008/2009

2600 Ministry of National Security 2009/2010

2852 Legal Reform Department 2008/2009

2852 Legal Reform Department 2009/2010

2826 Family Court 2008/2009

4100A Ministry of Education 2007/2008

2825 Director of Public Prosecutions 2008/2009

0400 Office of the Contractor General 2009/2010

5300A & 5300B Ministry of Industry, Investment 2009/2010 and Commerce

(Auditor General’s Department)

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Report of the Public Administration and Appropriations Committee of the House of Representatives on our Deliberations

on Ministry Paper No. 9 of 2011, “Reporting Status for Statutory Agencies and Government-owned Companies”

(Houses of Parliament)

REPORTS FROM COMMITTEES Dr. Kenneth McNeill laid on the Table of the House a copy of the Report of the Sessional Select Committee on Public Administration and Appropriations on their deliberations on Ministry Paper No. 9 of 2011, titled “Reporting Status for Statutory Agencies and Government-Owned Companies” 1.0 ESTABLISHMENT, COMPOSITION AND POWERS OF THE COMMITTEE Members of this Honourable House are reminded that, by virtue of a motion by the Leader of the House on April 5, 2011, the composition of the Public Administration and Appropriations Committee, as it existed at the prorogation of Parliament on April 7, 2011, was made to continue in force for the current session of Parliament and the Committee empowered to proceed with matters that were before it at that time. The Committee had been appointed by resolution of this Honourable House on March 27, 2008 and its life had been extended by various subsequent resolutions. Taking into account all resolutions to amend the membership of the Committee or to allow its continuity, the Committee as at April 2011 comprised the following Members:

Dr. Kenneth W. McNeill – Chairman Hon. Robert Montague Hon. Michael Stern Mr. Ernest Smith Dr. St. Aubyn Bartlett Mr. Desmond Mair Mr. Franklyn Witter Mr. Tarn Peralto Mr. Othneil Lawrence Mr. Fitz Jackson Mr. Phillip Paulwell Dr. Morais Guy Rev. Ronald Thwaites Dr. Donald Duncan Mr. Ian Hayles

Its terms of reference as set out in Standing Order 73A are as follows: The Public Administration and Appropriations Committee shall have the duty of— (a) examining budgetary expenditure of Government agencies to ensure that expenditure is done in accordance with parliamentary approval; (b) monitoring expenditure as it occurs and keeping the Parliament informed of how the Budget is being implemented; and

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(c) enquiring into the administration of the Government to determine hindrances to efficiency and to make recommendations to the Government for improvement of public administration. 2.0 INTRODUCTION AND BACKGROUND Ministry Paper No. 9 of 2011, dated February 3, 2011, which was laid on the Table of the House by the Honourable Prime Minister, presented a status report on the submission to Parliament by government entities of their annual reports as required by the Public Bodies Management and Accountability Act (PBMAA). Section 3 of the Act provides that “as soon as possible after the end of each financial year, but not more than four months thereafter, a copy of the annual report and audited financial statements of each public body shall be submitted to the responsible Minister who shall cause such report and statements to be laid on the Table of the House of Representatives and of the Senate.” The Ministry Paper outlined the significant level of delinquency in this regard, with some bodies never having submitted a report and others not having done so for in excess of ten years. It presented a chronic situation, with over fifty percent (50%) of required entities being delinquent by three years or more for 2008/2009 and sixty percent (60%) for 2009/2010, the latter being the year for which submission would have had to be made for an entity to be deemed compliant.

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Your Committee therefore investigated the reporting status of public bodies and government agencies in keeping with our responsibilities under Standing Order 73A(c) as set out above. We scheduled two meetings on the subject, the first on March 2 and the second on March 16, 2011. It was noted that there was an exceptionally high level of delinquency among public bodies within the remit of four ministries in particular, namely, the Office of the Prime Minister; the Ministry of Youth Sports and Culture; the Ministry of Transport and Works; and the Ministry of Health. The permanent secretaries in these ministries, along with representatives of their subsidiary agencies outstanding in their reporting for in excess of three years, were invited to appear before the Committee on March 2, 2011. The Chairmen of the Boards of Directors were also invited to be in attendance since, under the Act, it is the Boards of Directors that have responsibility for the reportage. There were some entities that protested their inclusion on the list given that they had presented their reports to their Ministries and could not accept culpability for the further non-submission to the Cabinet Office and ultimately Parliament. For those that were non-compliant, there were a variety of reasons given, examples being bottlenecks at various points in the system, such as within the entity itself, at the parent Ministry or at the Cabinet Office. In some cases, the statutory requirement for audit by the Auditor General’s Department had caused delays. Misunderstanding about what exactly is required in the reports also contributed to the delinquency of some agencies. Furthermore, some entities had severe, long-term challenges, the details of which can be found in a subsequent section of this report. Based on the reasonableness of the majority of responses at the meeting of March 2, it was agreed that the permanent secretaries in the remaining Ministries would be afforded the opportunity to provide status reports on or before March 11 in relation to the public bodies falling under their charge. The technical support to the Committee then reviewed those status reports to determine which entities would still need to be invited to appear. For those entities that were still required to appear, in many cases, their responses and explanations mirrored those of the group which had appeared at the previous meeting. It therefore became apparent to the Committee that certain changes were needed in order to improve the efficiency of the reporting process. We now present our findings and recommendations for the consideration of the Honourable House. 3.0 FINDINGS AND RECOMMENDATIONS 3.1 SITUATION Some agencies had in fact submitted the required reports and financial statements to their Ministries but were negatively affected in the tabling in Parliament by the bottlenecks that occurred either at the Ministry level or at the Cabinet Office. These bottlenecks were attributable to a number of causes which included non-preparation of Cabinet Notes and non-submission to the Cabinet Office by Ministries due to human resource constraints; incorrect routing of the reports on receipt; superseding issues for the address of the Cabinet, thereby delaying submission to the Houses of Parliament given that a condition precedent is the review of the report by the

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Cabinet; or rejection of the report for a technical or material omission thereby requiring correction and resubmission. Additionally, there were instances when problems with finalising the audit of a prior year caused later completed statements to be held in abeyance for both audit and submission. At the end of the assessment, the delinquent public bodies essentially fell into four categories:

1. Entities listed as non-compliant but which had submitted their reports to their parent Ministry. This represented some 17% of the 155 non-compliant public bodies noted in the Appendix to the Ministry Paper tabled in Parliament.

2. Those entities that are expected to achieve compliance by July of 2011 based on their own commitment or due to their having reports outstanding for two years or less. Together, these entities represented 51% of the entities reported as non-compliant.

3. Entities that had serious challenges in achieving compliance due to legitimate obstacles or prolonged negligence.

In the case of category 3 there may be a requirement for support in the form of funding for the procurement of private auditing services, special attention by the Auditor General’s Department, or additional input from their parent Ministry to allow resolution of the problem such that the required reports can be submitted within the shortest possible time. Thereafter, it would be incumbent on the Ministries and the Cabinet Office to do what is necessary to ensure that the reports are tabled in Parliament. 3.2 UPDATE Your committee is pleased to report that 12 agencies achieved full compliance in the period between our second meeting and the end of June, 2011. 3.3 ENTITIES IN THEIR RESPECTIVE CATEGORIES WITH SPECIFIC RECOMMENDATIONS 3.3.1 Entities listed as non-compliant but which had submitted their reports to their parent Ministry The following table identifies public bodies whose reports had previously been submitted to the parent Ministry. The committed date of delivery of the reports to the Cabinet is also shown where those entities were invited to the Committee.

Entity Date committed for Submission to the Cabinet 1. Montego Bay Metro† April 30, 2011 2. Sports Development Foundation Up to 2007 confirmed received by the Cabinet Office 3. Agricultural Credit Board March 16, 2011 4. Montego Bay Freezone Confirmed received by the Cabinet Office 5. Kingston Freezone Confirmed received by the Cabinet Office 6. Caymanas Track Ltd March 16, 2011 7. Fiscal Services Ltd Confirmed received by the Cabinet Office 8. Betting, Gaming and Lotteries

Commission June 2011

9. CHASE Fund June 2011 10. Financial Services Commission June 2011

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Entity Date committed for Submission to the Cabinet 11. Jamaica Deposit Insurance

Corporation Most recent report noted in Cabinet Decision 24/11

12. EXIM Bank Confirmed received by the Cabinet Office 13. Public Accountancy Board June 2011 14. Students’ Loan Bureau June 2011 15. Integrity Commission Confirmed received by the Cabinet Office 16. University Council of Jamaica Confirmed received by the Cabinet Office 17. Women’s Centre of Jamaica

Foundation Confirmed received by the Cabinet Office

18. Port Authority of Jamaica Confirmed received by the Cabinet Office 19. Jamaica Foundation for

Lifelong Learning Confirmed received by the Cabinet Office

20. Jamaica Library Service Confirmed received by the Cabinet Office 21. Jamaica Mortgage Bank Confirmed received by the Cabinet Office 22. Office of Utilities Regulation Confirmed received by the Cabinet Office 23. Fiscal Services (EDP) Limited Confirmed received by the Cabinet Office 24. Self-Start Fund Confirmed received by the Cabinet Office 25. Commission for the Prevention

of Corruption Confirmed received by the Cabinet Office

† Committee advised that reports submitted to Metropolitan Management Transport Holdings since 2002. Six of the entities listed above have since become current in respect of the tabling of annual reports in Parliament. These are as follows: Fiscal Services Limited – annual report for 2009-2010 tabled February 9, 2011 The Corruption Prevention Commission – annual reports for2007-2008, 2008-2009, and

2009-2010 tabled February 15, 2011 The Office of Utilities Regulation – annual report for 2009-2010 tabled March 22, 2011 The Jamaica Mortgage Bank – annual report for 2009-2010 tabled April 28, 2011 The University Council of Jamaica – annual report for 2009-2010 tabled May 3, 2011 The Self Start Fund – annual reports for 2007-2008, 2008-2009 and 2009-2010 tabled

June 21, 2011 Additionally, the Office of the Children’s Advocate and the Creative Production and Training Centre became compliant on March 1 and May 11, respectively. Recommendation In the light of the deficiency in the existing procedure which does not recognise compliance by public entities in respect of their duty to submit their reports to the parent Ministry, your Committee recommends the implementation of a monitoring system which would incorporate the issuance of a compliance certificate, to be endorsed at each stage of the process, for each year of submission. The stages would be as follows:

1. Submission by the public body to their parent Ministry.

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2. Submission by parent Ministry to the Office of the Cabinet 3. Approval by the Office of the Cabinet 4. Submission to the Houses of Parliament by the Ministry

This would assist the entities, the Ministries and the Office of the Cabinet in managing the level of delinquency. The compliance certificates would be copied to the PAAC for information. 3.3.2 Entities which have committed to become compliant by the end of July 2011 in respect of annual reports up to 2009/2010

Entity Situation/Commitment for Compliance 1. Jamaica Tourist Board Difficulties with the tendering process delayed the

procurement of auditing services in respect of the reports for 2008/2009 and 2009/2010. July 2011

2. Child Development Agency March 2011 3. Harmonisation Limited July 2011 4. Negril/Green Island Local

Planning Authority Discrepancies in emoluments discovered in reports for 2007/2008 and 2008/2009. July 2011

5. Nutrition Products Ltd Rejected by Ministry due to the format of reporting of emoluments. All outstanding reports tabled in Parliament May 5, 2011

6. National Council on Education

Amendment to report for 2008/2009 required. July 2011

7. Rural Water Supply Audit of 2006/2007 revealed major discrepancies in the entity’s accounting records. July 2011

8. Bureau of Standards Significant delay due to efforts to resolve discrepancies identified in 2007/2008 audit.

9. Bauxite and Alumina Trading Company

June 2011

10. National Investment Bank of Jamaica.

Functions assumed by the Development Bank of Jamaica in 2006 and the required information is included in the reports of that body as of that year. Most recent report, that for 2005/2006, tabled in Parliament April 5, 2011

11. Jamaica Anti-Doping Commission

The entity does not have a separate budget but is a line item in the budget of the Ministry of Youth, Sports and Culture. June 2011

12. Micro-Investment Development Agency

All outstanding reports tabled in Parliament June 21, 2011

13. Universal Access Fund Unable to proceed with the preparation of audited financial reports for technical reasons - Challenges in establishing tax liability. July 2011

14. PetroCaribe Development Fund

Unable to proceed with the preparation of audited financial reports for technical reasons - Had to await resolution of issues with international partner. June 2011

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Entity Situation/Commitment for Compliance 15. Office of Disaster

Preparedness and Emergency Management

Committed for July 2011

16. Jamaica National Agency for Accreditation


17. Water Resources Authority The AG’s Department did not complete the audit of the 05/06 report until the end of 2008. Subsequently, approval to use external auditors was obtained but the procurement process was riddled with various challenges such that final selection was delayed and the successful auditor only retained in March 2009. Audited statements are now available up to 08/09 with 09/10 to be ready by the end of April. Entity will be fully compliant by the end of May 2011.

18. Private Security Regulation Authority

The reports are completed to be sent to the Cabinet Office

19. Factories Corporation of Jamaica

Report for 2009/2010 tabled in Parliament June 7, 2011

20. Consumer Affairs Commission

2008/2009 tabled in Parliament May 31, 2011. One year still outstanding

21. Jamaica Business Development Centre

2007/2008 and 2008/2009 Received by the Cabinet Office. Outstanding report for 2009/2010 to be tabled by July 2011

22. Jamaica Exotic Flavours and Essences Company Limited

2004/2005 to 2008/2009 received by the Cabinet Office. Report for 2009/2010 to be submitted to the Ministry by July 2011

23. National Irrigation Commission

2008/2009 received by the Cabinet Office. One year still outstanding

24. Tourism Enhancement Fund Ministry reports that outstanding report submitted to Parliament June 2011

25. Tourism Product Development Company

Report for 2009/2010 tabled in Parliament May 11, 2011

26. Overseas Examinations Commission


27. Firearm Licensing Authority Committed for June 2011 28. Development Bank of

Jamaica Ministry reports that sole outstanding report was submitted to Cabinet December 2010

29. Passport Immigration and Citizen Agency

Committed for June 2011

30. Environmental Foundation of Jamaica

One Year Outstanding

31. Integrity Commission Ministry reports that sole outstanding report submitted to Cabinet June 2011

32. National Housing Trust One Year Outstanding

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Entity Situation/Commitment for Compliance 33. Real Estate Board Ministry reports that sole outstanding report submitted to

Cabinet December 2010 34. Jamaica Social Investment

Fund Ministry reports that sole outstanding report submitted to Cabinet December 2010

35. Road Maintenance Fund One Year Outstanding 36. Housing Agency of Jamaica

Limited Report for 2009/2010 tabled in Parliament January 11, 2011

37. Trade Board Limited Report for 2009/2010 tabled in Parliament January 11, 2011

38. Agricultural Credit Board One year outstanding. Submitted to Ministry and to be tabled in Parliament by July 2011

39. Jamaica Bauxite Institute One Year Outstanding 40. Jamaica Bauxite Mining

Limited One Year Outstanding

41. Culture, Health, Arts, Sports and Education Fund


42. Jamaica Deposit Insurance Corporation


43. Financial Services Commission


44. Scientific Research Council One Year Outstanding 45. General Legal Council One Year Outstanding (Submitted to Parliament 31 May

2011) 46. Broadcasting Commission One Year Outstanding. 47. Statistical Institute of

Jamaica Two Years Outstanding

48. Jamaica Civil Aviation Authority

Two Years Outstanding

49. Aeronautical Telecommunications Limited


50. Airports Authority of Jamaica


51. Caribbean Maritime Institute Two Years Outstanding 52. Jamaica Ultimate Tyre

Company Two Years Outstanding

53. Maritime Authority of Jamaica


54. Port Security Corps. Limited Two Years Outstanding 55. Toll Authority of Jamaica Two Years Outstanding 56. Air Jamaica Limited Two Years Outstanding 57. Jamaica Civil Aviation

Authority Two Years Outstanding

58. Health Corporation Limited Two Years Outstanding

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Entity Situation/Commitment for Compliance 59. National Family Planning

Board Two Years Outstanding

60. National Health Fund Two Years Outstanding 61. Pesticides Control Authority Two Years Outstanding 62. National Water Commission Report for 2009/2010 tabled in Parliament June 21,

2011 63. Jamaica Agricultural Society Two Years Outstanding 64. Police Public Complaints

Authority Two Years Outstanding

65. Police (Civilian Oversight) Authority

Report for 2009/2010 tabled in Parliament May 10, 2011

66. Human Employment and Resource Training Trust/National Training Agency

Reports for 2008/2009 and 2009/2010 tabled in Parliament May 3, 2011

3.3.3 Entities that had significant delays or challenges to achieving compliance The following agencies appeared to have major problems with achieving compliance, for one reason or another, many having reports outstanding for more than four years.

1. Jamaica 4-H Clubs

Ministry Paper showed that no report had ever been submitted. Permission was received from the Ministry of Finance and the Public Service to outsource auditing of financial statements up to 2008/2009. Commitment was received to have reports concluded by the end of September 2011.

2. Institute of Sports Audits completed but not paid for. $2.6 million required3. Institute of Jamaica All statements from 2003 up to 2010 were submitted en

bloc to the AG’s Department in 2010 and are in the audit queue

4. Jamaica National Heritage Trust

Unable to proceed with the preparation of audited financial reports for technical reasons. Incomplete valuation of extensive land and artefacts. Once these issues are resolved, $8 million will be required for auditing services.

5. Jamaica Railway Corporation The JRC requires funding of $3 million to procure auditing services

6. Jamaica Urban Transit Company Limited

Reports for 2008/2009 had to be adjusted after printing, causing a delay in the submission of later reports. All outstanding reports submitted to the Ministry as at June 24, 2011

7. Sports Development Foundation

Rejected financial statements from 1995 -2007 were accepted to finally allow the submission of latter years

8. Independence Park Limited Discrepancies in the 2004/2005 financial are being sorted out to allow the presentation of latter years.

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September 2011 9. Jamaica Veterinary Board The Annual Reports were submitted to the Ministry

without the Audited Financial Statements. 10. Fair Trading Commission The first two of the five years have been submitted and

the latter three years’ are with the AG’s department awaiting audit. Reports to be finalised by September 2011.

11. E-Learning Jamaica Discrepancies in earliest report delayed preparation of later ones. Audit reports to be completed and reports submitted by December 2011

12. National Solid Waste Management Authority

The auditors had some issues with incorrect recording and only recently signed off for 07/08. Subsequent statements up to 09/10 will be signed off on by the end of November 2011

13. Jamaica Information Service Report for 2008/2009 to be tabled by July 2011. Audit for 2009/2010 incomplete.

14. National Land Agency Reports prepared annually, but discrepancies in the report for 2005/2006 prevented submission of this and all later ones. Reports being reviewed by Auditor General. As at June 2011, audits for 2005/2006 onward had not been completed.

15. Anti-Dumping & Subsidies Commission

Awaiting receipt of audited reports

16. Companies Office of Jamaica Awaiting audit certificate 17. Jamaica Intellectual Property

Office There is a backlog of audited statements from the AG’s Department. Committed for September 2011

18. JAMPRO/Jamaica Trade and Invest

Awaiting Cabinet Decision

19. University of Technology Although the reports were submitted annually, a record of the emoluments of certain officials, which is required by law, was not included

20. Devon House

Commitment was received to have reports concluded by the end of July 2011. However, the Ministry has indicated that the lack of funds for the procurement of auditing services will cause a further delay. New date for submission is December 2011

21. Clarendon Alumina Production

Reports to be submitted to Ministry by September 2011

22. Social Development Commission

They indicated a backlog in the AG’s Department. However that department advised that nine years of statements were received en bloc in 08/09

23. National Commission on Science and Technology

All statements up to 2005/2006 will be submitted by the end of April 2011. Draft statements for 06/07 and 007/08 are awaiting the approval of the new Commission which would then make completion of all later years a priority.

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24. Registrar General’s Department

Reports up to 2008/2009 had been submitted to the Ministry but some cannot be located and are being replaced by the Agency. The Ministry is seeking to get the latter years.

25. Council of Community Colleges of Jamaica

There is no record of submissions ever being made under a previous Executive Director. Under the current Executive Director, reports for 2002-2006 were submitted to the Cabinet Office and reports for 2006-2010 are being prepared.

26. Milk River Hotel and Spa

Statements up to 2004/2005 were audited by the AG’s Department and returned to the entity. Subsequent years need to be submitted. Arrangements have been made with the Auditor General’s Department for carrying out audits for 2005-2010. The Ministry aims to submit all annual reports by September 2011.

27. North East Regional Health Authority

The first annual reports ever from 1999 to 2006 were received by the Cabinet Office in March 2011. Latter years are still outstanding

28. South East Regional Health Authority

The first annual reports ever from 1999 to 2006 were received by the Cabinet Office in April 2011. Latter years are still outstanding

29. Southern Regional Health Authority

The first annual reports ever from 1999 to 2006 were received by the Cabinet Office in April 2011. Latter years are still outstanding

30. Western Regional Health Authority

The first annual reports ever from 1999 to 2006 were received by the Cabinet Office in March 2011. Latter years are still outstanding

31. Golden Age Home, Vineyard Town

Financial Statements from 2006 -2010 are now with the auditors awaiting the location of the financial records and reports prior to 2005 which had been submitted to the Department of Local Government

32. Jamaica Fire Brigade Reports from 2005/2006 to 2009/2010 were submitted and are to be located by the Department of Local Government. However prior year from the entity’s establishment in 1995 have to be re-created and submitted to facilitate audit.

33. Urban Development Corporation

Difficulties with valuation of assets and other concerns delayed preparation of audit reports. To be compliant by September 2011

34. National Council on Drug Abuse

There have been challenges with getting the audited financials since 2004/2005

35. Bath of St. Thomas the Apostle (Bath Fountain, Hotel and Spa)

There have been challenges with getting the financials submitted for audit. The Auditor General’s Department agreed to visit Bath Fountain in July of 2011 to conduct the audit for 2007-2010

36. Correctional Services Commitment for compliance by the end of calendar year

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Production Company 2011 37. Coffee Industry Board Preparation of audited financial statements for

2008/2009 and 2009/2010 delayed by severe financial constraints. September 2011

38.Wallenford Coffee Company Unable to proceed with the preparation of audited financial reports for technical reasons - Company formed in 2004 but legal separation agreement not signed until 2009, delaying transfer of assets. They have reported to the Ministry that the Annual Reports for the years 2003/04 to 2008/09 should be ready by August 2011.

39. Rural Agricultural Development Authority

The Ministry is awaiting corrections to the 2008/2009 Report before it is forwarded to the Cabinet. The Authority has reported to the Ministry that the Annual Report for the year ended March 31, 2010 is being completed and will be delivered to the Ministry by August 2011.

40. Agricultural Development Corporation

The ADC has reported to the Ministry that the auditors are completing an audit on the March 31, 2010 financial statements and the Annual Report is expected to be ready by August 2011. The March 31, 2010 Annual Report will be the last under the auspices of the ADC. The ADC has been merged with the Agricultural Support Services Project (ASSP) to form the Agro-Investment Corporation.

41. Coconut Industry Board The Ministry reports that the report for the financial year ending December 2009 has been submitted to the Cabinet Office, while the report for the financial year ending December 2010 is being completed by the Board and should be ready by August 2011.

42. Sugar Industry Authority The Authority has reported to the Ministry that they are awaiting the completion of the audit of their 2009/2010 financial statements. Also, based on a request from the auditors, changes had to be made to content of the 2010 Report. However, it is expected to be completed and delivered to the Ministry by August 2011.

43. Banana Board The Ministry is presently preparing the Ministry Paper for the 2008 Report and this will be ready by July 2011. The Board has also reported that the draft Report for 2009 has been completed and will be printed shortly. This Report will be forwarded to Cabinet in July 2011. The auditors are completing their audit on the 2010 financial statements and the Annual Report will be ready by September 2011.

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In addition to the various challenges identified in respect of the previously named entities, your committee found that the absence of critical information that was required under the PBMAA prevented some entities from complying with the reporting requirement. Specific information regarding each of these bodies is set out below. Your Committee found that due to structural complications, it would be difficult to resolve the ongoing challenge faced by certain entities in preparing financial statements. The Board of Supervision had no separate budget, but was a line item in the budget of the Department of Local Government. Similarly, the Jamaica Anti-Doping Commission received its financing from the appropriations of the parent Ministry. Additionally, the Cinematograph Authority had no administrative structure, as its only function was to assign ratings to video productions. Your Committee has sought the advice of the Auditor General regarding a possible exemption from the full reporting requirement for these entities. If this is found to be feasible following a review of the relevant legislation by that office, these bodies will submit operational reports only. Jamaica Vacations Ltd had been subsumed under the Jamaica Tourist Board from 2005 to 2008 and therefore there were no separate audit reports for that period. The Auditor General has advised that Statements of Affairs be done for those years using the closing balance at 2004/2005. In the case of Jamaica Reservation Services Ltd, it had become apparent after a while that the services of the company, which had been based in Miami, would no longer be needed and therefore its operations had been significantly reduced, the Board had been removed, and only a skeleton staff had been maintained. Notwithstanding this, they had not been able to achieve a formal wind-up of the entity. The files had been shipped to Jamaica in 2011 and an attempt made to compile the outstanding annual reports from existing documents using the services of a consultant, but your Committee was not in favour of this procedure. However, the Ministry of Tourism reported in April 2011 that at a meeting with the Auditor General and officials from the Ministry of Finance and the Public Service in March of 2011, it was recommended that the outstanding annual reports be completed and that the Ministry proceed with the plan to complete the winding-up process using consulting services. A similar situation existed in respect of Metropolitan Management Transport Holdings, which had been closed in 2002, but had not been formally wound up. No reports had been prepared for the years during which the company had been in operation, namely, 1995 to 2002. However, it might be possible to extract the relevant information from existing records. In the case of the University Hospital of the West Indies, there were audited financial statements for every year from 2002-2007, but the operational reports had not been completed and there had been a change the membership of the Board, as a result of which certain information could only be compiled through a review of the minutes of previous years. In respect of the Sugar Company of Jamaica, the current Chairman of the Board had found on assuming office in 2006 that there had been no annual reports since 1999. Furthermore, certain important documents had been lost in a fire. Nevertheless, reports for 1999 to 2005 were compiled and submitted to the Ministry, but this process delayed the preparation of reports for subsequent years. Given the pending liquidation of the company, the Ministry of Finance and

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the Public Service granted permission for a single report to be submitted for the period 2005/2006 to 2009/2010. The Public Broadcasting Corporation of Jamaica was awaiting a determination from the Ministry of Finance and the Public Service regarding accurate opening balances and the treatment of income on intellectual property. 3.4 ASSESSMENT The Committee expects that all public bodies are currently engaged in a concerted effort to become compliant attendant on their delinquency being brought into sharp focus. Nevertheless, having regard to existing challenges to the attainment of full compliance and to the apparent negligence of certain entities, we considered measures to assist in the creation of an environment which primarily facilitates and supports the Public Bodies being compliant but one which also provides sanctions and disincentives for non-compliance. In terms of a facilitating environment, the Committee was of the view that there needs to be legislative reform such that the entities are allowed to submit the reports to the Permanent Secretaries rather than the Ministers. The legislation must empower the Permanent Secretaries to mandate compliance rather than rely upon moral suasion and, as confirmed by the Office of the Cabinet Secretary, would be in keeping with recommendations accepted by Cabinet for an improved corporate governance framework for public bodies which envisages a greater role for Permanent Secretaries as chief advisors to Ministers. Additionally, in circumstances where there are chronic data reproduction difficulties, as has occurred with Jamaica Reservation Services, there ought to be the possibility of allowing Parliament to vote for exemption or ratification of the status quo, except in those circumstances where malfeasance is suspected. Entities that do not have their own budget but are line items in a Ministry’s budget ought to be able to be exempted from reporting to Parliament and report only to their Ministries. Your Committee also puts forward for consideration the need to further define the timelines contained in the PBMAA to mandate the timeframe within which Ministries must submit the received reports to the Cabinet Office and further from the Cabinet Office to the Houses of Parliament. Supplemental funding needs to be found to shore up the capabilities of the AG’s Department to audit those entities that are required by statute to be audited by them. This could be accomplished by garnering a portion of the funding that is approved for some agencies to retain external auditors and routing that funding instead to the AG’s department where the ability to attract and retain a greater number of competent staff would provide a greater return. In cases where entities are delinquent in excess of three years, the Ministries would be required to assess the competence of the Financial Controllers in the particular entity as well as their support systems to determine their capability to produce the required statements on a timely

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basis. Where deficiencies are identified, the Accountable Officer would bear some responsibility via the renewal of their work contract or their entitlement to their end of contract gratuity. Given that Board Chairmen have the responsibility to see the preparation and submission of the reports, orientation training must be provided upon the acceptance of board appointments such that at the end, each Chairman can sign, acknowledging their awareness and acceptance of the responsibilities assigned to their position under the Act. One disincentive that is being recommended is the withholding of Board fees where any reports are outstanding for more than two years. An assessment of the devolution of this responsibility would also be expected to be made to determine eligibility to serve subsequent terms or on any other Board of Directors of a government owned company. The cost of reproduction of finalised reports was also examined and a rough estimate of the amount of funds that would be required to reproduce the required 130 copies for Parliament, assuming all entities listed in Ministry Paper No. 9 – 2011 are made current, totalled some one hundred and fifty million dollars, a significant amount that could be better used in the AG’s Department. At that required level of financing, the recommendation of the Committee is that there be wide circulation of the Guidelines to Ministers – Clerk to the Houses January 2011 which stipulates that only twelve (12) hard copies of Annual Reports should be sent to Parliament with compact discs only for each Member of Parliament. 3.5 RECOMMENDATIONS The overarching recommendations of the Public Administration and Appropriations Committee in relation to the required submission to Parliament by government entities of their annual reports as required by the Public Bodies Management and Accountability Act are therefore:

1. Permanent Secretaries are to be empowered via legislative reform or some other mechanism to mandate compliance, as one of the challenges highlighted by parent Ministries is that there are no real sanctions for non-compliance and so the Permanent Secretaries have limited recourse outside of moral suasion.

2. The legislative reform should be expanded to involve the Accountable Officers of Public

Bodies in the responsibility for submission of the required reports with consequent sanctions being the possibility of the non- renewal of their contracts or some annual percentage deduction from their gratuities

3. The Auditor General’s Department is to be provided with supplemental funding to

strengthen the capabilities of the Financial Statements Audit Unit. A possible source of funding could be the garnering of specific amounts from agencies that are required by statute to be audited by the AG’s Department.

4. Board Members, and in particular the Chairmen, of public entities are to be held

responsible for the compliance record of their Public Institutions during their tenure.

5. A compliance monitoring system in which certificates are issued and endorsed at each stage of the process is to be implemented.

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Your Committee recommends that a submission be made to the Cabinet on the subject of this report. 4.0 ACKNOWLEDGEMENTS Your Committee wishes to express gratitude to the representatives of all the Ministries and Agencies who attending the sittings of the PAAC provided substantive input to this report. Gratitude is also extended to the Auditor General and members of her team as well as the Cabinet Secretary and his team. The administrative and other support of the Technical Advisor and the Clerk to the Houses and staff are also acknowledged. Houses of Parliament July 2011

APPENDIX A

ATTENDANCE

(2 meetings)

Present Absent Apologies

Dr Kenneth McNeill – Chairman 2 - -

Hon. Robert Montague - 2 -

Hon. Michael Stern - 2 -

Mr Ernest Smith - 2 -

Dr St. Aubyn Bartlett 2 - -

Mr Desmond Mair - 2 1

Mr Franklin Witter 2 - -

Mr Tarn Peralto 1 1 -

Mr Othneil Lawrence 1 1 -

Mr Fitz Jackson 2 - -

Mr Phillip Paulwell 1 1 -

Dr Morais Guy 2 - -

Rev. Ronald Thwaites 1 1 1

Dr Donald Duncan - 2 -

Mr Ian Hayles - 2 -

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NOTICES OF MOTIONS GIVEN ORALLY

Dr. Kenneth McNeill gave notice that at the next meeting of the House he would move: BE IT RESOLVED that the Report of the Sessional Select Committee on Public Administration and Appropriations on their deliberations on Ministry Paper No. 9 of 2011, titled “Reporting Status for Statutory Agencies and Government-Owned Companies” which was laid on the Table of the House on the 29th day of July, 2011, be adopted. Dr. Peter Phillips gave notice that at the next meeting of the House he would move: WHEREAS Parliament has ultimate authority to levy all taxes in Jamaica; AND WHEREAS in practical terms taxation has been levied on the basis of executive decision without adequate parliamentary examination; AND CONSIDERING that Jamaica has maintained persistent fiscal deficits and has a distorted taxation system: BE IT RESOLVED that this Honourable House, as part of an overall effort to achieve a greater level of fiscal responsibility, request the House Committee on Taxation Measures to review the country’s approach to taxation with a view to- a) ensuring greater parliamentary consideration of tax proposals to be included in each budget; b) allowing for greater consultation with the public and especially affected stake holders in defining and approving taxation; c) allowing for greater equity in the sharing of the tax burden. BE IT FURTHER RESOLVED that this matter be referred to the Committee for consideration with its deliberations on Green Paper No. 1 of 2011. The Minister of Tourism, the Honourable Edmund Bartlett, gave notice that at the next meeting of the House he would move to introduce and have read a first time a Bill shortly entitled “The Tourism Enhancement (Amendment) Act, 2011”. He further gave notice that at a later stage that day he would move for the suspension of the Standing Orders to enable him to move to introduce the Bill, have it read a first time, give notice of second reading and take it through all its concluding stages. The Minister of Finance, the Honourable Audley Shaw gave notice that at the next meeting of the House he would move:

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THE CIVIL SERVICE ESTABLISHMENT ACT

The Civil Service Establishment (General) (Amendment) (No.2)

Order, 2011, Resolution

WHEAREAS section 3(1) of the Civil Service Establishment Act (hereinafter referred to as “the Act”) the Minister may exercise the power to constitute or abolish offices in the public service by Order; AND WHEREAS the Civil Service Establishment (General) Order, 2010 was affirmed by the House of Representatives on the 14th day of September, 2010, and has subsequently been amended; AND WHEREAS the Minister considers it necessary or expedient to further amend the Civil Service Establishment (General) Order, 2010, and made the Civil Service Establishment (General) (Amendment) (No.2) Order, 2011, on the 19th day of July, 2011; AND WHEREAS section 3(2) (c) of the Act provides that an order made under that section may, from time to time, make such incidental, consequential and supplemental provisions as the Minister thinks necessary or expedient to give full effect to the Order; AND WHEREAS section 3(4) of the Act provides that an order made under that section shall be subject to affirmative resolution of the House of Representatives; AND WHEREAS it is desirable that the Civil Service Establishment (General) (Amendment) (No.2) Order, 2011, be affirmed: NOW, THEREFORE, BE IT RESOLVED by this Honourable House as follows: 1. This Resolution may be cited as the Civil Service Establishment (General) (Amendment) (No.2) Order, 2011, Resolution. 2. The Civil Service Establishment (General) (Amendment) (No.2) Order, 2011, which was laid on the Table of the House on the 19th day of July, 2011, is hereby affirmed. The Minister of Justice, the Honourable Delroy Chuck, gave notice that at the next meeting of the House he would move:

THE CONSTABULARY FORCE (INTERIM PROVISIONS FOR ARREST AND DETENTION) ACT, 2010

The Constabulary Force (Interim Provisions for Arrest and Detention) Act (Extension of Duration)

Resolution WHEREAS the Constabulary Force (Interim Provisions for Arrest and Detention) Act, 2010, came into force on the 23rd day of July, 2010:

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AND WHEREAS it is provided by section 2(1) of the Act that the Act shall continue in force for a period of one year from the date of its commencement and shall then expire unless its duration is extended by resolution of each House of Parliament: AND WHEREAS it is provided by section 2(2) of the Act that a resolution under section 2(1) of the Act –

(a) shall be in the same terms for each House;

(b) shall specify the period for which the duration of the Act is extended; and

(c) may amend any provision of the Act; AND WHEREAS the Act has been a critical tool employed by the Jamaica Constabulary Force in reducing serious crimes, and it is therefore expected that an extension of the duration of the Act will contribute further to the reduction of serious crimes: NOW THEREFORE, BE IT RESOLVED by this Honourable House as follows:- 1. This Resolution may be cited as the Constabulary Force (Interim Provisions for Arrest and Detention) Act (Extension of Duration) Resolution, 2011. 2. The duration of the Constabulary Force (Interim Provisions for Arrest and Detention) Act, 2010, shall be extended until the 22nd day of July, 2012. 3. The Constabulary Force (Interim Provisions for Arrest and Detention) Act (Extension of Duration) Resolution, 2011, which was laid on the Table of the House on the 19th day of July, 2011, is hereby approved. He further gave notice that at a later stage that day he would move for the suspension of the Standing Orders to enable him to take the motion.

PUBLIC BUSINESS

The Minister of Tourism moved that a Bill entitled “AN ACT to Amend the Travel Agencies Regulation Act; and for connected matters” be now read a second time. Dr. Kenneth McNeill also spoke on the Bill. Seconded by: Mr. Franklin Witter. Agreed to. Clerk read Bill a second time.

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The House resolved itself into a committee of the whole House to consider the clauses of the Bill. Clauses 1 - 6 agreed to. Title and Enacting Clause agreed to. The question that the Chairman do report the Bill to the House was agreed to. The House resumed. The Bill having been reported to the House without amendment, the Minister of Tourism moved that the Bill be now read a third time and passed. Seconded by: Mr. Joseph Hibbert. Agreed to. Clerk read Bill a third time. Bill passed without amendment. The Minister of Tourism, having obtained suspension of the Sanding Orders, moved to introduce and have read a first time a Bill shortly entitled “The Tourism Enhancement (Amendment) Act, 2011”. Clerk read Bill a first time. Notice of second reading given. The Minister of Tourism, having obtained suspension of the Standing Orders, moved that Bill be now read a second time. (Mr. Ernest Smith, M.P., St. Ann, South Western entered and took his seat). Dr. Kenneth McNeill, Dr. Omar Davies, Mr. Derrick Kellier and Mrs. Portia Simpson Miller also spoke on the Bill. Seconded by: Mr. Franklin Witter. Agreed to. Clerk read Bill a second time. The House resolved itself into a committee of the whole House to consider the clauses of the Bill. Clauses 1 - 4 agreed to.

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Title and Enacting Clause agreed to. The question that the Chairman do report the Bill to the House was agreed to. The House resumed. The Bill having been reported to the House without amendment, the Minister of Tourism moved that the Bill be now read a third time and passed. Seconded by: Mr. Joseph Hibbert. Agreed to. Clerk read Bill a third time. Bill passed without amendment. The Minister of Justice, having obtained suspension of the Standing Orders, moved:

THE CONSTABULARY FORCE (INTERIM PROVISIONS FOR ARREST AND DETENTION) ACT, 2010

The Constabulary Force (Interim Provisions for Arrest and Detention) Act (Extension of Duration)

Resolution WHEREAS the Constabulary Force (Interim Provisions for Arrest and Detention) Act, 2010, came into force on the 23rd day of July, 2010: AND WHEREAS it is provided by section 2(1) of the Act that the Act shall continue in force for a period of one year from the date of its commencement and shall then expire unless its duration is extended by resolution of each House of Parliament: AND WHEREAS it is provided by section 2(2) of the Act that a resolution under section 2(1) of the Act –

(a) shall be in the same terms for each House;

(b) shall specify the period for which the duration of the Act is extended; and

(c) may amend any provision of the Act; AND WHEREAS the Act has been a critical tool employed by the Jamaica Constabulary Force in reducing serious crimes, and it is therefore expected that an extension of the duration of the Act will contribute further to the reduction of serious crimes: NOW THEREFORE, BE IT RESOLVED by this Honourable House as follows:-

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1. This Resolution may be cited as the Constabulary Force (Interim Provisions for Arrest and Detention) Act (Extension of Duration) Resolution, 2011. 2. The duration of the Constabulary Force (Interim Provisions for Arrest and Detention) Act, 2010, shall be extended until the 22nd day of July, 2012. 3. The Constabulary Force (Interim Provisions for Arrest and Detention) Act (Extension of Duration) Resolution, 2011, which was laid on the Table of the House on the 19th day of July, 2011, is hereby approved. Mr. Peter Bunting, Reverend Ronald Thwaites, Mrs. Sharon Hay-Webster, Dr. Donald Duncan, Dr. Horace Chang, and Miss Olivia Grange, also spoke on the motion. Seconded by: Mr. Tarn Peralto. Agreed to. On the motion being put, the House divided as follows: AYES – Mr. Edmund Bartlett, Dr. St. Aubyn Bartlett, Dr. Horace Chang, Mr. Pearnel Charles, Mr. Delroy Chuck, Mr. Neville Gallimore, Miss Olivia Grange, Mrs. Sharon Hay-Webster, Mr. Lester Henry, Mr. Joseph Hibbert, Mr. Andrew Holness, Mr. Othneil Lawrence, Mr. Desmond Mair, Mr. Robert Montague, Mr. Clive Mullings, Mr. Tarn Peralto, Mr. Audley Shaw, Mr. Rudyard Spencer, M. Michael Stern and Mr. Franklin Witter = 20 NOES – Mr. Luther Buchanan, Mr. Peter Bunting, Dr. Omar Davies, Dr. Donald Duncan, Dr. Fenton Ferguson, Dr. Morais Guy, Ms. Lisa Hanna, Mr. George Hylton, Mr. Derrick Kellier, Dr. Kenneth McNeill, Mrs. Natalie Neita-Headley, Mr. Michael Peart, Mrs. Portia Simpson Miller, and the Reverend Ronald Thwaites = 14 ABSENTEES – Mr. Noel Arscott, Dr. Kenneth Baugh, Mr. Laurence Broderick, Mr. Roger Clarke, Mr. Colin Fagan, Mr. Bruce Golding, Dr. Esmond Harris, Mr. Ian Hayles, Mrs. Maxine Henry-Wilson, Mr. William Hutchinson, Mr. Fitz Jackson, Mr. Phillip Paulwell, Mr. Dean Peart, Dr. Peter Phillips, Mr. Robert Pickersgill, Dr. Donald Rhodd, Mr. James Robertson, Mrs. Shahine Robinson, Mr. Karl Samuda, Mr. Derrick Smith, Mr. Ernest Smith, Mr. Kern Spencer, Dr. Christopher Tufton, Mr. Daryl Vaz and Mr. Clifford Warmington = 25 DECLINED TO VOTE = 0 Passed in the affirmative. The Minister of Education and Leader of the House moved for the recommittal of the item “Questions and Answers to Questions”. Seconded by: Mr. Michael Peart. Agreed to.

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QUESTIONS AND ANSWERS TO QUESTIONS

Ms. Lisa Hanna gave notice that at the expiration of 21 days she would ask the Minister of Youth, Sports and Culture the following question: Part 1 Is the Minister aware that the 2011 JCDC Festival Song compilation CD bears her name as Executive Producer? Part 2 Can the Minister advise the Parliament as to what changes in policy led to the replacement of the JCDC as Executive Producer as previously obtained? Part 3 Will the Minister outline what steps were taken to arrive at her selection as Executive Producer? Part 4 Can the Minster advise this House if her specific commercial interests in this matter had been declared and disclosed to the relevant parliamentary and other bodies a priori? Part 5 Will the Minister therefore outline what if any steps/measures did she take to so declare her commercial interests? The Reverend Ronald Thwaites gave notice that at the expiration of 21 days he would ask the Prime Minister the following question:

Part 1 How does the Government plan to deal with the pending public sector wage claims for the period 2010 – 2012? Part 2 How does the Government propose to cope with the unfunded portions of the non-contributory public sector pension obligations? Dr. Peter Phillips gave notice that at the expiration of 21 days he would ask the Minister of Finance the following question: Part 1 Will the Minister advise as to the status of December 2010 to March 2011 Reviews of the Performance Targets undertaken by the International Monetary Fund (IMF) under its Standby Agreement? Part 2 If the Government failed to meet any of the performance targets will the Minister indicate which targets and the extent of the variation from those targets?

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Part 3 Will the Minister advise if the recent Public Sector wage settlements were provided for in the original target scheduled for review in the 2011 – 2012 fiscal year? Part 4 If the answer to Part 3 above is in the negative, will the Minister say why not? Part 5 What elements of the Budget will be cut to meet the government’s obligations?

ADJOURNMENT

At 7:08 p.m., the Minister of Education and Leader of the House moved that the House do now adjourn to a date to be fixed by the Speaker. Seconded by: Mr. Joseph Hibbert. Agreed to. Mr. Luther Buchanan expressed his concern in relation to the Constituency Development Fund (CDF), wherein projects were approved but monies were not disbursed for the 2010/2011 budget period and wanted to know if these amounts would be included in the Supplementary Estimates. The Minister of Finance, the Minister of Agriculture and Dr. Omar Davies also spoke on the matter. At 7:20 p.m., the Speaker interrupted. The Minister of Education and Leader of the House moved for the suspension of the Standing Orders to enable the House to sit beyond 7:30 p.m. to complete the business of the day. Seconded by: Franklin Witter. Agreed to. At 7:25 p.m. on the motion for the adjournment being put, same was agreed to. The House adjourned accordingly.

------------------------------------------- Marisa Dalrymple Philibert, M.P. Speaker

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