psoj annual report 2011

ANNUAL REPORT 2011

CONTENTS

FINANCIAL STATEMENTS

THE PSOJ SECRETARIAT

THE EXECUTIVE COMMITTEE

STATEMENT FROM THE PRESIDENT

STRATEGIC SCORECARD DASHBOARD

NOTICE OF ANNUAL GENERAL MEETING 1

3

6

9THE COUNCIL

11

13

34CRIME STOP

37

45

49

53

55

COMMITTEES

OUR PROJECTS

A PICTORIAL REVIEW

OUR VALUABLE AND LEADING SPONSORS

ANNUAL REPORT 2011 ANNUAL REPORT 2011

NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN:

That the 24th Annual General Meeting of the Members of The Private Sector Organisation of Jamaica (PSOJ)) will be held at the Knutsford Court Hotel (Blue Mountain Suite) 16 Chelsea Avenue, Kingston 10 on Wednesday, July 4, 2012, at 4:00 p.m., for the purposes of considering and if thought fit, passing the following resolutions, namely:

1. That, in keeping with the provisions of Article 7 of the Articles of Association, this meeting will be deemed to be the 24th Annual General Meeting of The PSOJ;

2. That the Reports of the President, the Executive Committee, and the Auditors for the year ended December 31, 2011 and the Balance Sheet and Audited Financial Statements of Accounts for this period be and are hereby adopted;

3. In accordance with Article III, Clause 4 of the Organisations Articles of Association, the following Members of Council retire by rotation, and being eligible offer themselves for re-election:

Companies1. Bank of Nova Scotia Jamaica Limited2. Citigroup3. First Caribbean International Bank Limited4. GraceKennedy Limited5. Jamaica Observer Limited6. Jamaica Producers Group7. Jamaica Public Service Co. Ltd.8. Musson Jamaica Limited9. Pan Caribbean Financial Services Ltd10. Sagicor Life of Jamaica Limited

Individuals1. Mr. Oswald Lee2. Mr. Roy Banarsee

4. That such number, as required by the Articles of Association, of persons, duly nominated by the Members, being able and willing to serve, be hereby elected as Members of the Council.

5. That the Executive Committee is authorised to issue a Request for Proposal for audit services, select and approve the remuneration and terms of engagement of the external auditor.

6. To consider any other business that may appropriately be transacted at an Annual General Meeting.

BY ORDER OF THE COUNCIL

Earl Jarrett, CDHONORARY SECRETARY June 7, 201239 Hope RoadKingston 10

Associations1. Incorporated Masterbuilders Association2. Institute of Chartered Accountants of Jamaica3. Jamaica Customer Service Association4. Jamaica Developers Association5. Jamaica Livestock Association6. Sugar Manufacturing Corporation of Jamaica7. Womens Business Owners Jamaica Limited8. Jamaica Cooperative Credit Union League9. Institute of Internal Auditors

Members who shall be an organisation or a group of two or more individuals, companies, firms, establishments or bodies shall, at least seventy-two hours before the commencement of the Annual General Meeting, that is, by 4:00 p.m., on Friday, June 29, 2012, give to the Honorary Secretary or other person acting on his behalf for this purpose written notice of the name and address of one person who shall have been nominated to attend the meeting on the members behalf, and such person shall have the voting rights and any other rights and privileges of the member he represents. There shall be no attendance or voting by proxy at any meeting of The PSOJ.

Nominations for Members of Council, who must be members of the Organisation in good standing, must be made by a member of the Organisation in good standing and seconded by a member of the Organisation in good standing, signed by the proposer and seconder and delivered to the Secretary of the Organisation at least fourteen days prior to the date of the meeting, that is, by 4:00 p.m. on Monday, June 20, 2012.

LIST OF MEMBERS SERVING A SECOND YEAR ON COUNCIL

Associations1. In bond Merchants Association of Jamaica2. Insurance Association of Jamaica3. Jamaica Bankers Association 4. Jamaica Employers Federation5. Jamaica Exporters Association6. Jamaica Hotel & Tourist Association7. Jamaica Securities Dealers Association8. Jamaica Used Car Dealers Association9. Realtors Association of Jamaica10. Shipping Association of Jamaica11. Small Business Association of Jamaica12. Spirits Pool Association Limited

Individuals1. Mr. Charles Ross 2. Mr. Elon Beckford 3. Ms. Maureen Webber

Companies1. Digicel 2. ICD Group Limited3. J. Wray & Nephew Group Limited4. LIME 5. Red Stripe6. Jamaica National Building Society7. Pan Jamaican Investment Trust Limited8. National Commercial Bank Jamaica Limited9. The Gleaner Company Limited10. Jamaica Broilers Group Limited

Linval Freeman, Partner at Ernst & Young presents the Independent Auditors Report at the AGM

Dalma James, President of the Small Business Association of Jamaica is acknowledged

1 2


STRATEGIC SCORECARD DASHBOARD

Continue to next page.

NET PROFIT/(LOSS) $000CONSOLIDATED REVENUE $000

9%

42%

10%11%

8%

13%

4%

3%

Subscriptions &Contributions

Project Grants

Seminars/Participation Fees

SponsoredBreakfasts

Luncheons/Dinners

Publications

Rental

Other

5,786

4,126

2,698

(1,449)(942)

6,000

5,000

4,000

3,000

2,000

1,000

(1,000)

(2,000)

2007

2008

2009

2010

2011

3 4

ANNUAL REPORT 2011

STATEMENT FROM THE PRESIDENT

We often say theres never a dull moment in Jamaica and those of us on the front line of PSOJ advocacy - the Officers, Executive Committee, Council and Secretariat can attest to that fact as 2011 was another busy and challenging year. From

fundraising for our major CSR project, Youth Upliftment Through Employment, YUTE, to advocacy on tax reform, macroeconomic reform, helping to create an enabling environment for commercial alternative dispute resolution, working with family owned and controlled businesses on corporate governance and exploring improved energy and environmental management in member firms, your President, the Organisations Chief Executive Officer, Committee Chairs and Secretariat staff were fully engaged throughout the year.

Orientation sessions for YUTE got off to a rousing start in January 2011 with just under 1000 young people participating. By year end, there was significant attrition for varying reasons and as at December 2011 a total 505 young persons had been fully engaged in YUTE activities including Pre-skills classes, U-Turn (re-socialisation) camps and short and medium term employment in various sectors. Undoubtedly the journey to facilitate the economic empowerment of hundreds of unattached, at-risk youth in vulnerable communities will neither be smooth nor easy and our experiences so far, in helping these young people to overcome the challenges of unemployment have borne this out.

The PSOJ continued its efforts at partnership building and was active as a member of the Jamaica Civil Society Coalition (JCSC) which it joined in 2010 and the Partnership for Transformation (PFT) which, regrettably, did not meet for most of 2011. However, important work on Tax Reform, begun in the PFTs Working Group, continued in earnest and this topic was one of the big ticket items on the agenda of the PSOJs Economic Policy Committee in 2011. For six months, starting in June 2011, a broad coalition of private sector representatives came together in the national interest in an effort to present a unified position on the way forward for Jamaicas tax system. Over the many monthly of sometimes testy and testing deliberations, sectoral interests were subordinated in an effort to achieve a regime that is equitable, transparent and accessible to all Jamaicans, and that ensures that resources are available for the protection of the most vulnerable in our society.

Calling itself the Private Sector Working Group on Tax Reform, the group comprised the PSOJ (representing 21 business associations), the Jamaica Manufacturers Association, the Jamaica Exporters Association, the Jamaica Chamber of Commerce, the Jamaica Agro-Processors Association, the Jamaica Bankers Association, the Insurance Association of Jamaica and the MSME Alliance (representing 35 business associations). The Jamaica Hotel and Tourist Association and the Jamaica Agricultural Society, while also part of the group, did not agree with certain of the positions taken by

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the PSWG and did not eventually sign the document presented to the government in early 2012. This level of unity is unprecedented in the history of Jamaica, as was the collaboration between the private and public sectors. The PSWG has acknowledged that for high, sustained rates of growth, tax reform must be accompanied by measures that maximise efficiency, minimise waste, and effectively combat corruption in both public and private sectors, with appropriate sanctions imposed on guilty parties irrespective of their status in society. The PSOJ shares the view that retaining the status quo is not an option and, as Jamaica celebrates 50 years of independence, establishing a fair and just system surely cannot be beyond us as a people.

In 2011, Jamaica continued to face the challenges of fallout from the global economic crisis. After successfully passing the first two sets of IMF quarterly tests in June and September 2010, some dissonance entered into the relationship between the Government and the IMF early in 2011 and by year end it was evident that the Fund was not satisfied with the pace of a number of reforms, including the reduction of the public sector wage bill: Jamaicas performance of the primary balance target: the trajectory of the debt to GDP ratio; and the progress on certain other structural reforms.

The PSOJ continued to offer a number of policy recommendations which we believe will go a far way in reducing our extraordinarily high crime rate in the short, medium and longer term. These recommendations are outlined in The PSOJs National Security Position Paper Improving National Security in Jamaica, which was finalised in May 2010, after extensive research and broad consultation with various interest groups. The contents of the paper have since been shared with the wider private sector and other key stakeholders including the JCF, the JDF and the Ministry of National Security.

Giving credit where it is due, during 2011 we saw tangible successes in the countrys crime fighting efforts, but we will continue to urge the Government to move with alacrity to implement many of the effective crime fighting measures that have been outlined in the position paper.

The Justice Reform Committee, though having few formal meetings during the year, took on two important areas of advocacy, the first on reforming the Bankruptcy Act, which dates back to 1880 and the second, drafting a new Arbitration Act to replace the current 1900 law and

establishing an alternative dispute resolution centre that can support businesses (big and small) in resolving their commercial disputes without resorting to the overworked and backlogged court system. By year end, a broad based Insolvency Review Committee had substantially completed its report outlining a model for the new Act as well as a number of critical policy decisions that are necessary to encourage greater risk taking and foster entrepreneurship. The Commercial Alternative Dispute Resolution Centre (CADRC) was formally opened in January 2011 in New Kingston premises provided rent free by our member, Jamaica Property Limited. During the year, with support from the Inter-American Development Bank, the CADRC undertook a series of road shows to promote the concept of ADR and to publicise the Centre, to large and small businesses, lawyers, ADR practitioners and business associations. The PSOJ invested heavily in the CADRC and though our advocacy has been fraught with challenges and the future of the Centre is uncertain, we remain committed to doing all we can to support this critical area of business development.

Arising from the successful implementation of the EU/ProInvest Project Capacity Building for Caribbean Private Sector Environmental and Energy Management Capabilities an Energy and Environment Committee was created to facilitate discussion on public policy, improve awareness of financing mechanisms that allow businesses to improve energy efficiency and environmental impacts and promote business opportunities in energy and environmental management for members.

The Corporate Governance Committee continues to be active in conducting director training programmes and collaborating on a continuing basis with agencies locally and regionally on issues of corporate governance and ethics. My call at the annual best practice awards banquet of the Jamaica Stock Exchange for more women to be appointed to corporate boards; for the JSE to institute a rule requiring companies to disclose in their annual reports their tangible objectives and progress in this regard, are, I believe, the kind of best practices that will enhance the competitiveness of Jamaican companies.

In December, we inducted the Honourable Lascelles Chin, OJ, CD, Founder and Executive Chairman of the LASCO Affiliated Companies into the Private Sector Hall of Fame. Lascelles Chin came from very humble beginnings in rural Jamaica but managed to defy the odds to become an entrepreneur whose achievements have brought him success and recognition on the local

and international level. Throughout his life he has demonstrated a commitment to providing consumers with quite an array of products and services in response to their daily needs.

The Hall of Fame banquet was just one of the several successful member events that were hosted by the PSOJ during the year. We continue to thank our faithful and generous sponsors, LIME and NCB for allowing us to provide, free of cost to members, an opportunity to engage with speakers on various topics and to network with each other every other month. Our breakfasts, luncheons and seminars not only provide knowledge-enhancing benefits of membership but also allow us to inform our members and the wider public about our continuing work in developing the private sector and improving public policy formulation. We also recognise all our other sponsors without whose critical support, these fine events would not be possible.

We welcomed a number of new members to the Organisation and recognise the work of our revived

Membership Committee, which is utilising a number of innovative approaches to recruiting and retaining members. One of these was the series of intimate dinners initiated in mid 2011 that seeks to provide mentorship to emerging entrepreneurial leaders. Many of our Hall of Fame inductees and other experienced members have volunteered to act as Mentors and this programme promises to be an exciting benefit for our young, new members to the PSOJ.

On your behalf, I thank our energetic and visionary CEO and her team of dedicated staff at the Secretariat for their work to ensure the continued sustainability and relevance of your Organisation.

JOSEPH M. MATALON, CD

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THE COUNCIL

1. The Bank of Nova Scotia Jamaica Limited2. Citigroup3. FirstCaribbean International Bank Limited4. GraceKennedy Limited5. Jamaica Observer Limited6. Jamaica Producers Group7. Jamaica Public Service Company Limited8. Musson Jamaica Limited9. Pan Caribbean Financial Services Limited10. Sagicor Life Jamaica Limited11. Red Stripe12.The Gleaner Company Limited13. Pan Jamaican Investment Trust Limited14. National Commercial Bank Jamaica Limited15. LIME16. Digicel17. Jamaica Broilers Group18. J Wray & Nephew Group Limited19. ICD Group Limited20. Jamaica National Building Society

COMPANIES

1. Inbond Merchants Association of Jamaica2. Incorporated Masterbuilders Association3. Institute of Chartered Accountants of Jamaica4. Institute of Internal Auditors5. Insurance Association of Jamaica6. Jamaica Bankers Association7. Jamaica Cooperative Credit Union League8. Jamaica Customer Service Association9. Jamaica Developers Association10. Jamaica Employers Federation11. Jamaica Exporters Association12. Jamaica Hotel and Tourist Association13. Jamaica Livestock Association14. Jamaica Real Estate Association15. Jamaica Securities Dealers Association16. Jamaica Used Car Dealers Association17. Realtors Association of Jamaica18. Shipping Association of Jamaica19. Small Business Association of Jamaica20. Spirits Pool Association Limited21. Sugar Manufacturing Corporation of Jamaica22. Womens Business Owners Jamaica Limited

ASSOCIATIONS

INDIVIDUALS

1. Mr. Roy Banarsee2. Mr. Elon Beckford3. Mr. Oswald Lee4. Mr. Charles Ross

5. Ms. Maureen Webber

Spokesperson for the Caribbean Diaspora Business in the UK Denis St Bernard makespresentation to PSOJ Council Members

ANNUAL REPORT 2011

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THE EXECUTIVE COMMITTEE

JOSEPH M. MATALON, CDPRESIDENT

SANDRA GLASGOWCHIEF EXECUTIVE OFFICER

EARL JARRETT, CDHONORARY SECRETARY

DON WEHBYVICE PRESIDENT

NICHOLAS SCOTTVICE PRESIDENT

LISA SOARES LEWISVICE PRESIDENT

JACQUELINE SHARPHONORARY TREASURER

EVELYN SMITH PRESIDENT

JAMAICA HOTEL & TOURIST ASSOCIATION

VITUS EVANSPRESIDENT

JAMAICA EXPORTERS ASSOCIATION

BRUCE BOWEN PRESIDENT

JAMAICA BANKERS ASSOCIATION

MEREDITH DERBY PRESIDENT

SMALL BUSINESS ASSOCIATION OF JAMAICA

WAYNE CHENPRESIDENT

JAMAICA EMPLOYERS FEDERATION

ROGER HINDSPRESIDENT

SHIPPING ASSOCIATION OF JAMAICA

VINTORIA BERNARD PRESIDENT

INSTITUTE OF CHARTERED ACCOUNTANTS OF JAMAICA

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COMMITTEES

Chairman: Mr. Nicholas Scott Facey Commodity Limited

Members: Mr. Joseph M. Matalon PSOJ PresidentMr. Keith Collister Appliance Traders LtdMrs. Lisa Lake Branson Centre for Entrepreneurship Mr. Jason Morris Scotia Investments LimitedMr. Rezworth Burchenson Prime Asset ManagementMr. Colin Steele ConsultantMs. Deika Morrison Mdk Advisory and Consulting Ltd.Mr. Christopher Barnes The Gleaner Company Ltd.Mr. Brian Denning PricewaterhouseCoopersMr. Frank James - GraceKennedy Group Mr. Earl Bartley - PSOJ

Work of the EPCIn 2011/12, the EPC was focused on lobbying for or monitoring the implementation of various aspects of the PSOJ Economic Policy Framework (EPF). These included:

1. Reforming the Tax SystemUnder the chairmanship of PSOJ President Joseph M. Matalon, a multi-sectoral task force, the Private Sector Working Group (PSWG) on Tax Reform, comprised of representatives including the Jamaica Manufacturers Association, Jamaica Chamber of Commerce, the Jamaica Hotel and Tourist Association, the Jamaica Agricultural Society, the Jamaica Bankers Association and the MSME Alliance was convened to develop proposals to reform Jamaicas Tax system. During the last six months of 2011, this group met to review existing tax policies and develop a comprehensive set of new policies that would be broadly applicable and generally acceptable to the various business associations and their members. The general aim of the tax reform committee was to propose reforms that would make the tax system simpler, more equitable and generally supportive. A document was completed in December 2011 and submitted to the Ministry of Finance. The document had broad support from most of the associations, but one or two had fundamental disagreements with certain proposals.

2. Public Sector Pension ReformWith public sector pension payments accounting for 10% of tax revenues in 2010 the unsustainable nature of Jamaicas existing public sector pension system is a threat to macroeconomic stability and was high on the agenda of the EPC as needing reform. The following steps were taken to raise public awareness of the issue and to advance the process of reform:

I. Presentation by Mrs. Constance Hall, actuary, at a Chairmans Club Forum breakfast in March 2011 highlighting the medium and longer-term challenges with Jamaicas current pay as you go system and possible options for reform.II. The PSOJ support for a contributory scheme was included in a presentation made to Parliament by Peter Melhado on behalf of the PSOJ in response to the GOJ Green Paper on Public Sector Reform.III. PSOJ proposals were also presented at a Forum hosted by Jamaicans United for Sustainable Development (JUSD), a forum sponsored by the Planning Institute of Jamaica and at the PSOJ/Prime Asset Management Pension seminar.IV. The need for public sector pension reforms were also frequently raised in meetings of the Partnership for Transformation.V. Developing a draft submission to the parliamentary committee on pension reform

3. Ensure Macroeconomic Stability Lobby for an Independent Monetary Policy Committee (IMPC) at the Bank of Jamaica (BOJ).

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The Chairman of the EPC appeared on a radio programme in which he highlighted the benefits of greater transparency and predictability in the development of monetary policy from having an IMPC. At a subsequent meeting of the EPC, it was decided that given the time frame that would be required to effect the desired changes, the EPC would recommend that the PSOJ continue to support the need for a more transparent and predictable process in the setting of monetary policy, but would grant it less immediacy on the PSOJ agenda.

4. Create an Enabling Legal and Regulatory Environment Eliminate stamp duty and transfer tax on corporate bonds and other corporate debt instruments and generally improve access to capital. The following steps were taken:

I. A Paper was prepared outlining the issue.II. A meeting was held with the Financial Secretary and representatives of the Ministry of Finance to discuss the paper. III. Proposal was accepted by GOJ and announced by Minister of Finance during 2011/12 Budget presentation.

Eliminate stamp duty, transfer tax and registration associated with moving loan and associated mortgage from one financial institution to another.

I. Published article in the GleanerII. Received comments from Jamaica Bankers AssociationIII. Proposal advocated in radio interview by EPC ChairmanIV. Meeting with MOF and Financial Secretary to discuss the proposalV. Accepted by the GOJ and announced by the Minister of Finance during 2011/12 Budget presentation

Other Initiatives5. Annual Economic ForumA well attended Annual Economic Forum (AEF) was held on June 28. In contrast to previous AEFs, the 2011 event took the form of two panel discussions followed by audience workshops on two issues Jamaicas Energy Challenges and Options and the Costs and Benefits of Jamaicas Current Incentives Regime. The main purpose of the workshop approach was to elicit the opinions of PSOJ members on the two issues mentioned to inform the Organisations advocacy of the two issues going forward.

6. Chairmans Club Breakfast ForumTwo PSOJ Chairmans Club Fora expressly dealt with economic issues: Public Sector Pension Reform and Agricultural Development in Jamaica

7. PSOJ Economic BulletinThe PSOJs monthly Economic Bulletin continued to be published in a timely manner and to provide quality analyses of relevant and current issues.

ImpactDuring 2011/12 the lobbying efforts of the PSOJ resulted in the elimination of stamp duty and transfer tax on: 1) corporate bonds and other corporate debt instruments, and 2) the movement of loans and associated mortgages from one financial institution to another. The effect of these changes was to deepen the capital market and make it easier to access capital, among other benefits. The PSOJ proposals on Tax Reform and Public Sector Pension Reform are among the submissions currently under discussion by the GOJ in relation to these major initiatives. In 2012, the Economic Policy Committee will continue its work to facilitate, support and expand economic activity in Jamaica.

EDUCATION AND CSR COMMITTEE

Chairman: Dr. Lloyd Eubank Green - Lloyd Eubank Green & Associates

Members:Mrs. Lisa Lewis - DiageoMr. Michael Jones - Scotia Bank GroupMr. Rickert G. Allen - National Commercial Bank Ja. ltd

ANNUAL REPORT 2011

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Mrs. Patricia Sutherland - Jamaica Money Market BrokersMrs. Caroline Mahfood - GraceKennedy FoundationMs. Saffrey Brown - JN FoundationMiss Alicia Glasgow - JN FoundationDr. Renee Rattray - Mutual Building Societies FoundationMrs. Marie Hitchins - BizWear ApparelMr. Paul McFarlane - Youth RepresentativeMrs. Bernita Locke - Jamaica Employers Federation

In keeping with the PSOJs mission of advocating for an effective education system that provides benefit for all stakeholders, the PSOJ Education Committee, led by Dr. Lloyd Eubank-Green, sought to position the PSOJ as a strong, committed group focusing on a number of activities for quality education that benefits all Jamaicans. During 2011, the Committee embarked on the following activities:

Education Policy PaperThe Education Policy Paper defining the PSOJs position on advocacy is in its final drafting stage. The document speaks to a number of issues such as:

The provision of the highest quality Early Childhood and Primary Education The development of an equitable secondary education system of the highest quality that is relevant, appropriate and accessible to all children The development of a social environment that is supportive of education and learning. An effective tertiary system that is well aligned to the needs of the labour market

ANNUAL REPORT 2011

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Chairman: Lt. Commander George Overton, Guardsman Group

Members:Mr. Peter John Thwaites Crime Stop Major General (Retired) Robert Neish - Digicel FoundationRear Admiral (Retired) Peter Brady - Maritime Authority of JamaicaMr. Owen Ellington - Jamaica Constabulary ForceMr. Glenmore Hinds - Jamaica Constabulary ForceColonel Desmond Edwards Jamaica Defence ForceMr. Richard Pandohie - Carreras Ltd.Prof. Anthony Harriott - Institute for Criminal Justice, UWIMr. Samuel Blake Organised Crime Unit, Ministry of National SecurityMs. Maria Williams - GraceKennedy Ltd.Mr. Michael Bernard - Shipping Services StevedoringMr. David Silvera - Jamaicans for Justice

The Standing Committee on National Security continued its effort to assist the security forces in finding meaningful and productive ways to solve security issues affecting our nation.

The Committee worked closely with the PSOJs Policy Advisor and the document is expected to be finalised in early 2012.

Representation on External CommitteesCommittee members represented the PSOJ at the meetings and activities of external Committees relevant to the development of Jamaicas education sector. Those committees include:

- Jamaica Foundation for Lifelong Learning (JFLL) - Caribbean Examinations Council (CXC) - University of Jamaica Steering Committee (UOJ) - Council on Community Colleges of Jamaica (CCCJ) - National Council on Education (NCE) - Early Childhood Commission (ECC)

In addition to serving on those external committees, PSOJs assigned representatives participated in international conferences such as World Skill International and Council of Community Colleges of Jamaica (CCCJ) and provided feedback to the Education Committee members.

PSOJ Reading ProjectWith the launch of the PSOJs Reading. The Bottomline project in 2007, members of the PSOJ and the Education Committee continued to participate on a monthly basis in reading projects at schools across the island. In addition to reading, PSOJ members engaged in other projects and activities at their adopted school, including:

donation of text books (Mathematics, English and Science text and workbooks) donation of computers whitewashing of trees and manicuring school yard renovation of computer lab renovation of library and reading room renovation of bathroom facilities being the Guest Speaker at a graduation ceremony making Remarks at the official re-opening of a school library .

The Committee is appreciative of all those who supported its work during 2011.

THE STANDING COMMITTEE ON NATIONAL SECURITY

These are the highlights of the Committee for the year 2011:

The Minister of National Security, Hon. Dwight Nelson, MP addressed the PSOJs Chairmans Club Forum on February 1. He spoke on the Governments focus for 2011 in the fight against crime - the strategies, challenges, possible solutions - and the Governments expectations of the private sector.

The approved PSOJ Policy Paper on Crime and Violence was circulated to the three major print media. Arising from that circulation, the Jamaica Observer invited members of the SCNS to discuss the document on its Monday Exchange Forum. Excerpts of the interview were published in the Jamaica Observer on February 22 and other articles were also carried in the Jamaica Observer.

Committee member and Managing Director of Carreras, Mr. Richard Pandohie along with members of the Committee participated in a ceremony to hand over a donation from Carreras for the repair of 70 vehicles belonging to the JCF.

On the invitation of the Committee, Minister of National Security, Hon. Dwight Nelson, MP attended the April 19 SCNS meeting. Minister Nelson discussed on the state of national security and also gave an update on the draft Anti-crime/Anti-gang Bill for presentation to Legislative Council and then Parliament. The Committee expressed to the Minister its concerns that the backlog in the courts would eventually frustrate the efforts of the security forces in effectively executing their duties and expressed the need for this matter to be urgently resolved.

Arising from concerns expressed to the Minister, a joint meeting of the PSOJs Justice Reform Committee and the SCNS was held with Minister of Justice, Mr. Delroy Chuck, MP on July 22. The following was discussed:

The bottleneck in the office of the Chief Parliamentary Counsel (CPC). The Minister advised that he had initiated discussions with the Minister of Industry, Investment and Commerce and the Attorney General regarding the shortage of staff in the Office of the CPC and a decision was made to pay the CPC staff overtime to complete the drafting of the Bills that were languishing.

The need to prioritise certain aspects of the prosecution process e.g. the Proceeds of Crime Act the very slow pace to deal with these cases renders them almost useless when a ruling has been made.

The Minister of Justice has asked the Chartered Institute of Arbitrators to draft a new Arbitration Act. The PSOJ is to submit comments on the draft legislation.

The security forces were commended for their efforts in the reduction of crime by the Committee and also in a press release sent from the PSOJ to the media.

TRADE POLICY COMMITTEE

Chairman: Mr. Earl Jarrett, CD Jamaica National Building Society

Members:Mrs. Alison Christie Binger - Illuminarte CommunicationsMr. Clifford Spencer - Ministry of Industry, Investment and CommerceMrs. Lisa Johnston - Jamaica Producers GroupMiss Tara Carnegie - Lascelles Demercardo Mrs. Dotsie Gordon - Dot Personnel Services LimitedMs. Gayle Peart - Small Business Association of JamaicaMr. Anthony Gomes - Jamaica Chamber of CommerceMr. Karl James - Jamaica Exporters AssociationMr. Steven Sykes - Jamaica Manufacturers Association/ Continental Baking Co. Mr. Noel Watson - A-Z Information Jamaica LimitedMr. David Barrett - Finder CaribbeanMr. Andrew Collins - GK Foods & Services LimitedMs. Natalie Grandison - Central Food Packers

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The Trade Policy Committee met with a delegation from the Dominican Republic in February, comprising Hugo Ramirez Risk and Ivan Ogando Lora, on behalf of ADOEXPO (Dominican Exporters Association), and Mr. Hugo Socorro and Mr. C. Alvarez, on behalf of the JAD (Dominican Agribusiness Board).

The visit of the DR delegation was aimed at gathering information on the perspectives of different sectors related to trade in goods and services, in regard to the deepening of trade relations with the Dominican Republic.

Arising out of these discussions, a PSOJ policy position paper on CARICOM-Dominican Republic Relations was submitted to the Ministry of Foreign Affairs and Foreign Trade.

The TPC examined and discussed the National Aid for Trade Strategy during 2011, with the objective of prioritizing Jamaicas trade-related needs for aid negotiation purposes, to ensure focused access and utilization of resources. The TPC identified priority technical assistance gaps and areas which required support.

The Meet Jamaica initiative, led by TPC Chairman, Earl Jarrett, participated in two major events in London - the International Food Event (IFE) at the Excel in March and the Taste of London held in June at Hyde Park. The PSOJ CEO attended both events and though private sector participation was below our expectations and neither event was a financial success, Jamaican brands were well received. GraceKennedy and Continental Baking Company were two member companies that provided strong support.

The TPC considered a proposal from Mr. Lewis Yat Wah Leung to represent Jamaican business interests in China through his investment company, Prince Edward Road Management Co. Ltd. (PERM)

The services offered would be

Shared use of PERMs office in Hong Kong Access to PERMs strong network in Hong

Kong, China and Asia Study missions to Jamaica Promotion, exhibition and trade shows in

Hong Kong and Guangdong province Updated market information and market

intelligence Launch and publication of promotional

materials and website in Chinese

A regional trade development project funded by the CDB was launched in 2011 under the auspices of the TPC, titled: Improving CARICOM Market Access for Jamaican Goods and Services.

The project has the following components:

Development of a regional private sector mechanism to improve Jamaicas trade in goods and services to the region

A trade mission to Trinidad and Barbados. Market access research for goods and services for a regional trade database. Training for exporters.

The TPC hosted a breakfast meeting on November 29, 2011, at the Knutsford Court Hotel with Mr. Nathan Halat, Economics Officer, Embassy of the United States of America. Mr. Halat spoke on US trade promotion efforts and the US Commercial Service programmes, which included:

Trade leads (a free service that connects non-U.S. buyers with U.S. suppliers)

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PSOJ MEMBERSHIP COMMITTEE

Chairman: Christopher Reckord Innovative Corporate Solutions/BIN 26 Wine Bar

Members:Mrs. Yaneek Page Future Services International Ltd/Women Business Owners Ltd. Mr. Christopher Barnes The Gleaner Co. Ltd.Mrs. Patrice Wilson-McHugh Bars to-Go Group Ltd.Mr. Christopher Williams Proven Wealth Ltd.Mrs. Karin Wilson-Edmonds Karin Wilson and Associates Mrs. Susan Fox The Marketing CounsellorsMs. Stephanie Cameron Geddes Refrigeration Ltd.

The Membership Committee seeks to increase membership in the PSOJ as well as to ensure membership retention by creating networking opportunities for members.

It was felt that one of the main advantages of being part of this great organisation was the fact that one could benefit from the wisdom of the more senior business leaders that are also members. In mid-2011 the Membership Committee began a series of monthly dinners entitled Mentorship of Emerging Entrepreneurial Leaders. The concept was simple, but effective invite a small group of young entrepreneurs mainly from the membership, along with a few prospective members; select one of Jamaicas senior business persons as the Mentor for the evening and let them all sit at a table and have a discussion. These events served two of our primary objectives: attracting new members into the PSOJ and providing networking opportunities for existing members.

The feedback from the attendees and more interestingly from the visiting mentors has been overwhelmingly positive and the unanimous response is that the discussions have been very beneficial and educational for all parties. In 2011 we had 6 Mentorship dinners hosting over 40 emerging entrepreneurs. Our guest mentors were Hon. William McConnell, OJ; Dr. Marshall Hall, CD; Hon. Maurice Facey, OJ; Mr. Richard Byles; Hon. Oliver Clarke, OJ and Mr. Douglas Orane,CD.

In December, 2011 NCBs CEO Patrick Hylton hosted all the emerging entrepreneurs at a cocktail party at the residence of our President, Mr. Joseph M Matalon. While not in the same format as the cozy Q&A sessions, Patrick Hylton delivered a very thought provoking address that featured highlights of his amazing journey as an intrapreneur. He shared a number of inspiring stories with the very attentive audience dotting his presentation with a number of thought provoking quotations. He ended his delivery with a quotation from former United States President Calvin Coolidge who said Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent.

Thanks to all the members of the Membership Committee and the team at the PSOJ who assisted with the events. 2011 was a rewarding year for the Membership Committee. For 2012 the membership committee plans to continue fulfilling its mandate: 1. To encourage private sector companies, associations, individuals and overseas associates to become members of the PSOJ; 2. To find creative ways to retain members; 3. To develop and drive creative projects that promote the PSOJ; 4. To create networking opportunities for members.

Business facilitation programmes Trade expos U.S. Ex-Im Bank financing Overseas Private Investment Corporation

The breakfast meeting was well received.

ANNUAL REPORT 2011

23


Chairman: Mr. David Barrett - En Bar Consulting

Members: Mr. Donovan Betancourt - DigicelMr. Christopher Levy - Jamaica Broilers Group LimitedMs. Jacqueline Simmonds - Jamaica Public Service Co. LtdMr. Sam Davis - Jamaica Public Service Co. LtdMr. Gordon Craig - Total Jamaica LimitedMr. Eaton Haughton - Caribbean EscoMrs. Eleanor Jones - Environmental Management SolutionsDr. Ruth Potopsingh - Environmental Management SolutionsDr. Winston McCalla - Environmental Management Solutions

The first meeting of the committee took place on July 20, 2011. Its first task was the development of a PSOJ Position Paper on energy and the environment which would graphically illustrate the issues and the Organisations policy positions. This paper would complement the PSOJs Economic Policy Position Paper.

The policy paper would address, inter alia, the cost issues relating to LNG, coal and renewables with reference to the research findings of the various consultants who examined these issues under the PROINVEST Project Capacity Building for Caribbean Private Sector Environmental and Energy Management Capabilities.

Other critical issues which the Committee decided to examine included:

Waste to energy Energy generation policy framework Petrojams pricing arrangement for fuel and the contract between Petrojam and the JPS Energy audits of private sector companies to identify problems and develop energy solutions Appropriate standards and incentive framework Contractual arrangement between the government and the JPS

During the year, members of the Committee met with the Minister of Energy and relevant experts from the OUR and the LNG project management office to gain a better understanding of the countrys energy plans and the cost implications to inform the drafting of the policy paper.

Chair: Miss Greta Bogues - J. Wray & Nephew

Members:Major Hugh Blake - Kingston Industrial GarageMr. Christopher Bovell - DunnCoxMrs. Tracey Campbell - PricewaterhouseCoopersMrs. Suzanne Goldson - Faculty of Law, UWI.Mr. David Hall - Institute of Internal AuditorsDr. Howard Haughton - Holistic Risk Solutions LimitedMrs. Alicia Hussey - Myers, Fletcher & GordonSenator Kamina Johnson-Smith - LIMEMr. Garth Kiddoe - Institute of Chartered Association of Jamaica

CORPORATE GOVERNANCE

Mr. Alastair Macbeath - MondialMr. Patrick McDonald - Hart, Muirhead, FattaMrs. Loretta Reid-Pitt - Financial Services CommissionMrs. Marlene Street Forrest - Jamaica Stock ExchangeMr. Hugh Thompson - Small Business Association of JamaicaMr. John Thompson - J. L. Thompson & Co. The PSOJs Corporate Governance Committee had another interesting year with a number of projects coming to fruition which added further value to the public corporate governance conversation. The Committee continued its focus on promoting the practice of good corporate governance in the private sector and promoting and influencing greater transparency, efficiency and accountability in the operations of the public sector.

One of the highlights for the year was the launch of the Business Ethics Programme for SMEs in September, 2011. In 2010 two (2) members of the CG Committee had been chosen along with four (4) other Jamaican representatives and personnel from Barbados and Trinidad and Tobago to participate in a Business Ethics Programme for trainers, sponsored by the Inter-American Investment Corporation (IIC)/International Trade Administration (ITA) Each group was required to develop a business ethics programme for their local environment, targeted at SMEs. This programme was launched in Jamaica on September 28 with the then Minister of Finance, Hon. Audley Shaw, as the Guest Speaker, along with other dignitaries from the IADB, the IIC and USAID. A four-day Ethics Training Programme followed, attended by 16 companies, using a prepared tool kit as a guide. This programme has now been successfully completed and has added to the level of awareness of business ethics as an important governance component for business. We expect to continue to further build awareness in this area in 2012.

During the year the committee welcomed two (2) new members, met five (5) times and heard and discussed presentations on various aspects of Corporate Governance, viz:

Applying First World CG in Jamaica by Dr. Howard Haughton, and Update on The Protected Disclosures Act 2011 by Senator Kamina Johnson- Smith

In line with the PSOJs corporate strategic scorecard the committee participated in /or facilitated the following activities:

Local and regional training in CG based on the

ENERGY AND ENVIRONMENT

25 26

Global Corporate Governance Forums Resource Kit for the following entities: o Syntegra Change Architects, Trinidad & Tobago a 2-day train-the- trainer workshop and a 2-day Director workshop, using the World Bank/IFC/Global Corporate Governance Forum Board Leadership materials. The workshops were held in January 2011.o National Commercial Bank Jamaica Limited; o National Peoples Cooperative Banko Pan Caribbean Financial Services

IADB Family business project Improving Family Business through Corporate Governanceo Publication of cases in family business governance

IIC/Finpyme Ethics Business Ethics for SMEso Launch of the programme in September 2011o Training programme for SMEs and subsequent delivery of in-firm technical assistance

Final review of the Public Bodies CG Frameworko Amendments to the PBMA Act

New JSE listing rules for CGo Review of joint Chairman/CEO on JSE Stock Exchange

PSOJ/Jamaica Stock Exchange Award for Corporate Governance to National Commercial Bank for the second year in a row.

Prospects for 2012

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ANNUAL REPORT 2011

27


JUSTICE REFORM

Chairman: Mrs. Janet Morrison - Dunn, Cox

MembersMrs. Jemelia Davis - Supreme CourtDr. Carolyn Gomes - Jamaicans for JusticeMr. Christopher Bovell - Dunn, CoxMiss Deborah Martin - Advocate in private practiceMrs. Julianne Mais-Cox - Dunn, CoxMr. Peter Parchment - Ministry of JusticeMiss Sandra Shirley - Individual memberRetired Chief Justice Edward Zacca - Individual member

The Committee met on only two occasions in 2011 and discussed the following issues:

Commercial Alternate Dispute Resolution CentreThis project, funded by the PSOJ and IDB, with its own Steering Committee was set up to encourage businesses to solve their disputes by way of alternative dispute resolution, instead of resorting to the Courts. One of the areas of focus of the project was the drafting of a new Arbitration Act, however, despite many meetings with representatives of the Ministry of Justice throughout the year, at year end there was still no clear policy direction from the Ministry and though a draft Act has been prepared,

The CADRC moved into newly refurbished and equipped premises at 64 Knutsford Boulevard, New Kingston in January 2011. Throughout the year, the Centre developed a business plan with support from the Centre for Effective Dispute Resolution (CEDR) in the UK and staged island-wide awareness sessions with SMEs, large businesses, lawyers, judges, business associations and existing arbitrators and mediators.

A Memorandum of Understanding which had been signed with the Jamaica Chamber of Commerce to share the counterpart funding for the project fell through, as did US$60,500 in funding from USAID through its PRIDE project, the latter because of the inordinate delays on the part of the Government in drafting the new Arbitration Act. At year end, the Development Bank of Jamaica had approved a grant of US$60,000 to enable the development of a marketing communication programme and Matching Grants for SMEs.

Throughout the year, the PSOJ pumped millions of dollars into the operations of the Centre in an effort to maintain its viability.

Donation of Computers to the CourtsThe PSOJ, through its member Intcomex, donated 10 laptop computers for use in the Supreme Court by Court Reporters and Judges. Along with those already purchased by the Ministry, these will assist the Court Reporters and Judges in more effectively carrying out their jobs.

Strategic Focus of the CommitteeMembers expressed frustration with the fact that the Committee had not made much progress, if any at all, on the matter of monitoring the progress of the implementation of the recommendations of the Justice Reform Task Force and the Darby Report because of lack of data from the Ministry and a perception of lack of communication between the players in the justice system. It was suggested that instead the Committee should consider having its main focus on bringing together the key stakeholders in a series of round tables in an effort to improve the pace of justice reform. Members of the Committee agreed with this recommendation.

An Insolvency Review Committee was established as a subcommittee of the JRC holding its first meeting on April 14, 2011. In early 2011, then Prime Minister Golding had requested the PSOJ to take the lead in the reform of insolvency legislation. The Committee also made contact with the Chairman of the Board of the International Financial Services

Centre Authority who confirmed that the Board was happy to leave matters concerning insolvency reform to the Committee.The members of the Committee are:

Hon. Michael Hylton, OJ, Q.C., Chair - Michael Hylton & AssociatesMrs. Sandra Glasgow - CEO, the PSOJMr. Maurice Bailey - Legal Reform DepartmentMiss Celia Barclay - Office of the Trustee in BankruptcyMr. Dave Garcia - National Commercial Bank Jamaica Ltd.Mr. Peter Goldson - Myers, Fletcher & GordonMs. Eulalie Greenaway - Norman Manley Law SchoolMr. John Lee - PricewaterhouseCoopersMiss Antoinette McKain - Jamaica Deposit Insurance CorporationMrs. Janet Morrison - Chair, Justice Reform Committee and DunnCoxMrs. Judith Ramlogan - Companies Office of JamaicaMiss Hilary Reid - Chairman, Commercial Sub-Committee, Jamaica Bar Association and Myers, Fletcher & Gordon Mrs. Stacey-Ann Soltau-Robinson - Attorney Generals ChambersMrs. Yvette Sutherland-Reid - Ministry of Industry, Investment and Commerce

29 30

1Chairmanship of the Trustee in Bankruptcy) (circa 2006-7); Proposals for Revision of Current Insolvency Legislation (Lijyasu Kandekore (2007); The Project under the auspices of Jamaica Trade and Investment throu0gh the Private Sector Development Programme (2009);

The membership of the Committee reflects the deep involvement of both private and public sector interests in the deliberations and discussions that led to the preparation of the report.

The Committee is not the first of its kind in recent years to consider the reform of insolvency and bankruptcy laws in Jamaica. In fact, the Committee is one of several which have sought to identify the problems with the existing law and to propose solutions and new policy approaches1.

Over the past ten (10) years or so, there have been a number of Committees which have been comprised of members from the public and private sectors which have examined the issue of the reform of insolvency legislation. At least two of those previous committees have had their work spearheaded by the Trustee in Bankruptcy and one was at the instigation of the Jamaica Trade and Invest (now called JAMPRO). For various reasons, although these committees identified the problems with the existing law, and offered some suggestions for reform, no clear and comprehensive proposals for legislative reform emerged from their reports. Nonetheless, the Committee benefitted tremendously from the interim reports and working papers prepared by those committees. At year-end, the Committee had made much progress in finalizing its report for presentation to the new Administration in early 2012.

ANNUAL REPORT 2011

31

ANNUAL REPORT 2011

CRIME STOP

Chairman: Peter John Thwaites

Mr. Lester Spaulding - Deputy ChairmanMr. Michael Hirst - Prism Communications Mrs. Paige Todd - Tankweld Ltd.Mrs. Sandra Glasgow - The PSOJMr. Neville James - ConsultantMaj. Gen. (Ret.) Robert Neish - Digicel FoundationMr. Charles Ross - Sterling Asset ManagementSSP James Forbes - Jamaica Constabulary ForceMiss Jenni Campbell - The Gleaner CompanyMr. Brian Schmidt - Irie FMMr. William Mahfood - Wisynco GroupMr. Paul Tai - Nunes Scholefield DeLeon & Co.Mr. Marcus James - Access Financial Services Ltd.

Ex Officio Members:Mr. Errol Miller - LIMEMrs. Sheree Martin - National Commercial Bank Jamaica Limited Mrs. Prudence Gentles - National Crime Prevention Fund

Police statistics indicate a reduction in all major crimes in 2011 in some areas by as much as 75%. With the reduction in crime in most inner city areas, the calls to Crime Stop have also decreased by over 50%. However, calls relating to illegal firearms, wanted men, drugs and gunmen remained at the top of the list of calls received.

Arrests made from information received by Crime Stop decreased by 41% during the year under review. Crimes related to drugs remained at the top of the list for arrests made through information to Crime Stop in 2011.

34

PROPERTY A total of twelve illegal firearms were recovered during 2011. Of the 12 firearms recovered, 6 were high powered firearms and 3 were locally manufactured.

Information to Crime Stop led to the recovery of sixteen stolen motor vehicles, a large quantity of contraband cigarettes, currency, mobile phones, air conditioning unit and various electronic items.

The total value of the property recovered/seized was $17,177,924.

NARCOTICSCrime Stop seized/destroyed $45.4M worth of drugs 464.36 kgs ganja, 21.8 hectares of fully grown ganja and 5.69 kgs of hashish.

REWARDS - Rewards totaling $916,800 were paid out.

MEMORANDUM OF UNDERSTANDING (MOU) WITH MINISTRY OF NATIONAL SECURITY Even though Crime Stop has been working with the Ministry of National Security for many years in the recovery of illegal firearms, the partnership was concretised with the signing of an MOU between the two parties: Crime Stop would continue asking the public for information on illegal firearms and the Ministry would pay the rewards for the recoveries.

32ND CRIME STOPPERS INTERNATIONAL TRAINING CONFERENCE Crime Stop hosted the 32nd Crime Stoppers International Training Conference from October 23-26, on behalf of the Crime Stoppers International Caribbean, Bermuda and Latin American Region. The conference was held at the Ritz Carlton Hotel in Montego Bay and was attended by 126 delegates from 19 countries worldwide. The theme was Crime Has No Borders with speakers representing international organisations such as the United Nations, FBI, US Marshals, Royal Canadian Mounted Police and representatives of several of the Caribbean Police fraternity. Based on the feedback, this was one of the most successful conferences in CSIs history.

NEW BOARD MEMBERS Five new Directors were added to the Board of the National Crime Prevention Fund during 2011, namely William Mahfood, Paige Todd, Marcus James, Paul Tai and Brian Schmidt.

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ANNUAL REPORT 2011

35


OUR PROJECTS

Members:Miss. Sandra Shirley - PSOJDr. Lawrence Nicholson - Mona School of Business (UWI)Mrs. Sandra Glasgow - PSOJMr. Wayne Beecher - Inter-American Development BankMr. Robin Levy - Jamaica Stock ExchangeMrs. Patsy Latchman-Atterbury - The Bank of Nova Scotia Ja. Ltd.Mrs. Yvonne Lewars - Development Bank of JamaicaMrs. Dorothea Gordon-Smith - Women Business Owners AssociationMr. Paul Facey - Pan Jamaican Investment TrustMr. Vitus Evans - Jamaica Exporters AssociationMrs. Marlene Porter - JAMPRO

The year ended December 2011 was one of much achievement for the FAMBIZ Project as the three remaining milestones were achieved.

Ten (10) firms received access to external resources for their firm-specific needs as determined by their approved needs assessments. To support this initiative two additional consultants were selected, which brought the complement of local consultants to four. Revised procedures and report formats were successfully implemented as required by the IADB and necessitated the

FAMBIZ PROJECT STEERING COMMITTEE revision of the Milestone Chart to reconcile with the updated Financial Plan. The procurement plan and other reports were provided as required.

EduNovas proposal for Dr. Robert Blunden of Blunden & Associates and Dalhousie University to develop and conduct a Case Writing workshop to train case writers in Jamaica was accepted and the four local consultants and the project manager were successfully trained in case writing techniques. At least one case was completed by each of the participants, thus six (6) family business cases with teaching notes were produced. This was three more than had been committed in the Project plan.

As the Project has ultimate oversight by the PSOJs Corporate Governance Committee the publication of a book with the six cases was treated as Volume 3 of the PSOJs publications on corporate governance entitled Improving The Competitiveness of Family Businesses through Corporate Governance: Selected Cases, Volume 3, 2011. The book was edited by Mrs. Sandra Glasgow, CEO of the PSOJ. In addition, a video case was also produced which dealt with the matter of sibling rivalry in family businesses.

Approximately 88 persons attended The Family Business Workshop and Launch of Selected the Case Studies on November 7 at the Wyndham Kingston Hotel. This achieved the intention of dissemination of the lessons learned during the execution of the project and publicity about the resulting cases. The launch was done by Dr. Robert Blunden whose participation was sponsored by EduNova Co-operative Ltd., Nova Scotia, Canada. The major sponsor for the event was The Bank of Nova Scotia Jamaica Limited and attendees represented family businesses, academia, corporate Jamaica and the media, among others. Bruce Bowen, CEO, the Bank of Nova Scotia Jamaica Limited was the Keynote Speaker at the Workshop luncheon.

An additional case was contracted for completion in 2012, which will bring the local family business case studies to seven.

The request for the procurement of resources for Final Audit and Impact and Final Evaluation was submitted and is being carried out by the IADB.

Contact had been made with academic institutions to determine their level of interest to include the case studies among their teaching material and responses are forthcoming.

At year-end the unfinished business remaining included: Completion and printing of the additional case study Firming up arrangements with the academic institutions that have expressed interest in using

the cases in their academic programs Update of the IADBs online PSR with the outcomes and lessons learned Completion of any outstanding payments and reconciliation of bank accounts and counterpart

obligations Closure of bank accounts and completion of documentation in anticipation of the audits. Financials for December and other months until all financial transactions are finalized.

The Project Plan anticipates completion by the latest March 2012.

COMMERCIAL ALTERNATIVE DISPUTE RESOLUTION CENTRE (CADRC)

Project Steering CommitteeChair: Mrs. Janet Morrison - DunnCox

Members:Mr. Donovan Walker - Hart Muirhead Fatta Professor Evan Duggan - Mona School of Business

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ANNUAL REPORT 2011

Hugh Small, QC - Individual PSOJ MemberMiss Michelle Walker - Ministry of Foreign Affairs and Foreign TradeMr. Brian Moodie - Samuda & Johnson Ltd.Mr. Dalma James - Small Business Association of Jamaica

The CADRC was established in January 2011 and began operations in July. The Inter-American Development Bank agreed to extend the Project to June 2012. The project lost funding from the United States Agency for International Development (USAID), which hampered its ability to market the Centre. Fortunately, the Development Bank of Jamaica (DBJ) approved a US $60,000 grant for promotional activities including the development of a website. The DBJ allocated a portion of the funds to support the access to the services of the Centre by Small and Medium Enterprises (SMEs).

The public education programme proceeded with two strategies: briefing meetings and sensitisation sessions. Over one hundred persons participated in the briefing meetings, to introduce prospective clients to the Centre. These included members of the legal fraternity, professional organisations, associations of small and medium enterprises, owners of businesses and officials from the public sector participated in these briefing meetings. Among them, the Minister of Justice, the Hon. Delroy Chuck and Minister of Industry, Investment and Commerce, Hon. Christopher Tufton, who toured the facilities in November and pledged their support for the initiative. Mr. Fernando Jiminez-Ontiveros, MIF Specialist at the Inter-American Development Bank, who was visiting Jamaica from Washington, also visited.

Sensitisation sessions were held to educate SMEs on the benefits of ADR and the services provided by CADRC, to ensure the speedy and effective resolution of disputes. The sessions promoted the Matching Grant Programme which provides a grant up to US $1000 to qualified SMEs. The sensitisation sessions were led by James South, a consultant from the Centre for Effective Dispute Resolution (CEDR) in the United Kingdom and Mr. Hugh Small. Six sessions, were held in July and August - one each in Montego Bay, Ocho Rios, Mandeville, Savanna La Mar and two in Kingston. Approximately one hundred persons participated in the two additional sessions held in Kingston in October, and ninety-three per cent of them found the sessions informative and effective.

In June CEDR, one of the largest ADR firms in Europe, was awarded a contract to prepare a Business Plan, outlining marketing, promotional and operation strategies for the Centre. The Consultant James South, had the opportunity to address a PSOJ Chairmans Forum on the benefits of Alternative Dispute Resolution (ADR) for Jamaican businesses. During his visit, Mr. South met with several associations including the Insurance Association of Jamaica, the Incorporated Masterbuilders Association of Jamaica, the Jamaica Bankers Association and the Mona School of Business. The CADRC also partnered with CEDR through a Memorandum of Understanding to provide internationally accredited training and advisory services to the CADRC.

Several trained mediators and arbitrators were invited to join the CADRC panels which consist of eighteen mediators and ten arbitrators including retired judges. Two arbitrations and five mediations were booked at the Centre during the year. In November, the first international arbitration was held using video-conference facility. The three arbitrators were able to hear evidence from Portugal and California. CADRC booked several consultations and workshops during the year. A marketing plan will be implemented in 2012 which will positively impact CADRCs business.

The Government reviewed the Arbitrations Act of 1900, which provides the framework for arbitration practice in Jamaica. A new Arbitration Act was drafted and the Ministry of Justice began a process of consultations with stakeholders. The PSOJ submitted its comments as well as a position paper outlining the gaps identified in the draft and the need for modifications in keeping with Jamaicas legal practice. The enactment of modern arbitration legislation is a component of the Project, which should be approved before the Project ends.

At the end of the year, the Jamaica Institute of Arbitrators was incorporated; It is a non-profit organisation which will operate and manage the CADRC, and its Board is chaired by Hugh Small, QC.

40

The YUTE programme was initiated in November 2010, and targeted eight communities in Kingston and St. Andrew. A total of 505 young persons were engaged in YUTE programme activities as participants of the first cohort (March 2011-December 2011); of that number, 4591 young persons across those eight communities were actively engaged in the programme. As Figure 1.1 shows, the majority of participants, 17 percent, were from the Mountain View community.

Figure 1.1: YUTE Participants Cohort 1, by Community2 (n=459)

Of this number the majority of YUTE participants, 57 percent, are female and approximately two-thirds are between the ages of 18 and 23 yearswith the majority being between the ages of 20 and 23 years.

1081 young persons were registered between December 2010 and January 2011 for cohort one; of that number 945 were eligible to participate. As of March 2011, 505 participants were engaged in the programme. The goal is to enroll an additional 1776 young persons, so that over the course of two and a half years, 2281 young persons would have been engaged in the programme.

In addition to engaging with 505 young persons in cohort one, the YUTE programme also provided support to 324 young persons who were involved in a one-year intervention in the OBRA Project, a youth employability project which is funded by USAID.

One of the three programme streams, YUTE Works is tasked with increasing the participants employability skills and their access to employment opportunities. Participants came to the YUTE programme with varying levels of academic qualifications and literacy and number competencies, which indicated their readiness for employment. Almost half of the 287 participants that were engaged in YUTE Works were unskilleddid not have any academic qualifications (e.g. degrees, diplomas, certificates). 39% (112 participants) had some level of academic qualifications (e.g. C.X.C. passes) and 12% deemed to be workforce ready because they had degrees, diplomas, or certificates.

Participants were offered various levels of training and work opportunities, based on their literacy and numeracy levels, their academic qualifications and their overall readiness for work. Participants with low levels of numeracy and literacy skills were enrolled in pre-skills training classes to improve their competencies so that they could later enroll in the post-secondary training programme. In cohort one, 140 participants received pre-skills training.

Tivoli Gardens

Rocfort

Olympic Gardens

Mountain View

Denham Town

Jones Town

Trench Town

Parade Gardens

Bushy Park

11%

14%

12%

17%

12%

10%

10%

13%

1%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

1 Data retrieved from YUTE database on March 22, 20122 Participants from Bushy Park, St. Catherine were referred by YUTEs programme partner Children First Agency, a St. Catherine-based NGO which works with street and potential street children to improve their life chance.

ANNUAL REPORT 2011

41

Results from the pre-skills training exit surveys that were administered in July, November and December of 2011 show that 40 percent of respondents indicated that they believed that the pre-skills programme would help them to continue with their education;43 percent of respondents believed that it would help them to obtain a job. Upon completion of the pre-skills programme, participants move on to the post-secondary training at institutions such as HEART Trust/NTA and Golden Opportunity Training Centre (GOTC). 112 participants had the opportunity to pursue studies in fields such as Business Administration, Commercial Food Preparation, Computer Repairs, House Keeping, Practical Nursing and Web Design.

Access to employment opportunities was a critical element of participants experience in YUTE Three hundred and fourteen participants gained work experience, ranging from two-day placements to full-time employment. Close to 30% of YUTE Works participants received full-time employment.

79 companies (PSOJ and Non-PSOJ members) from the Services, Retail, Healthcare, Non-profit and Manufacturing sectors deposited job opportunities in the Job Opportunity Bank (J.O.B).

The second stream, U-Turn, a behaviour modification programme, was designed to engage the most at-risk young persons. Through a combination of residential camps, life coaching, counselling, skills upgrading, training and certification, U-Turn aims to increase participants life management and employability skills. Two cohorts of at-risk youth, totalling 81 persons have participated in U-Turn.

The third stream, YUTE Entrepreneurship was designed for young persons who are interested in establishing and operating their own businesses. Through workshops and a practical business development exercise, participants are expected to develop their business ideas, while learning key entrepreneurial skills. This programme stream was implemented in two parts: 1) a two-day orientation session and 2) business development training which exposes participants to the Junior Achievement Business Model and Micro-franchise Business Model. Community Business Aides are assigned who guide and monitor their progress and provide support.

Training for the first cohort was held in February/March 2011. The orientation exercises introduced participants to topics such as: Developing Entrepreneurial Strategies and Strengthening Individual Entrepreneurial Competencies. The development of partnerships has been critical to the implementation of the YUTE Entrepreneurship programme stream. A US$150,000 grant, secured from the Inter-American Development Bank to research, design and live-market test micro-franchise businesses has resulted in two companies committing to be partners for micro-franchise business ideas. Additionally a Citi Foundation grant valued at US$50,000 will be used to support the Business Development Training and Enterprise Orientation components of the Enterprise stream.

MentorshipThe mentoring relationship is critical element of the YUTE Programmeit provides a supportive foundation on which participants can rely as they go through the programme. YUTE trained and matched 408 mentors. The majority of YUTE mentors, roughly 78 percent, are women and approximately 34 percent of mentors are between the ages of 26 and 35 years.

ANNUAL REPORT 2011

43

ADMINISTRATION

MARKETING AND PUBLIC RELATIONS

Standing: left to right

Lascelles Page Administrative Assistant

Evett Evans-Coombs Executive Assistant

Winsome Millen Office Attendant

Cecil Lindo Caretaker

Seated: Sandra Glasgow Chief Executive Officer

Standing: left to right

Violet VassellMarketing Officer, Events & MediaCommunications

Angela Williams Customer Service Representative

Nichocie Bryan Administrative Assistant

Peta-Gay Hodges Marketing Officer, Membership Services

Seated:Marcia Ormsby Director, Marketing & Public Relations

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ANNUAL REPORT 2011

45

FINANCE AND OPERATIONS DEPARTMENT

Standing left to right:

Kisha-Kay WalkerAccounting Assistant

Garth JacksonAssistant IT Administrator

Kerry-Ann HamiltonAccountant

Seated left to right:

Michelle ScarlettAccountant

David MasonManager

Carlene ClarkeSenior Accountant

RESEARCH AND FINANCIAL SERVICES

Standing left to right:

Omar CheddaTrade and Environment Manager

Earl BartleyResearch Economist/Policy Advisor

Seated left to right:

Roxaine SmithAdministrative Officer

Karis FlowersDirector

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ANNUAL REPORT 2011

47

ANNUAL REPORT 2011

A PICTORIAL REVIEW A PICTORIAL REVIEW

Former Minister of National Security, Hon. Dwight Nelson at Chairmans Club Forum held in February

Former Minister of Agriculture, Hon. Christopher Tufton at Chairmans Club Forum held November

Hugh Small in conversation with CEO Sandra Glasgow, Joseph M. Matalon, NCBs Bernadette Barrow and James South of the Centre for Effective Dispute Resolution, (CEDR), UK

Jorge Roldan of the Inter-American Investment Corporation (IIC) makes a presentation at the launch of the SME Business Ethics Programme

PSOJ Proinvest Energy Seminar in Kingston Family Businesses selected for IDB technical assistance share their experiences at the launch of Fambiz Project Case Studies

Hon. Lascelles Chin, OJ receives his Hall of Fame citation from PSOJ President Matalon

Vice President Nicholas Scott gives remarks at the Annual Economic Forum

James South, makes a presentation at a CADRC Sensitisation Seminar

Ancile Brewster, IDB Representative hands over signed Cooperation Agreement for funding for YUTE

Gordon Foote of IBM explains the use of the Audience Response System at the Annual Economic Forum

JMMBs Imani Duncan makes a point to CEO Sandra Glasgow and Nicholas Scott, Chair, EPC

ANNUAL REPORT 2011

49 50

A PICTORIAL REVIEW

President Matalon gives his address at the Annual General Meeting in June

Professor Harris and PIOJ personnel make a presentation on the Growth Inducement Strategy to the Executive Committees

Emerging Entrepreneurial Leaders with Guest Mentor, Richard Byles President & CEO of Sagicor Life Jamaica

Chairman of Membership Committee Christopher Reckord in lively discussion at a Mentorship Dinner in July with Guest Mentor, Hon. William McConnell, OJ

Mr. Matthew DeLeon of Intcomex hands over one of 12 laptops to former Minister of Justice, Dorothy Lightbourne

Sheronne Lobban engages participants at IIC Finpyme Business Ethics Workshop held in September

ANNUAL REPORT 2011

51

OUR VALUABLE AND LEADING SPONSORS

Keeping you bright &your environmentright.

SuperCleaners Dry Cleaners & Launderers: Head Office and Plant,25 Connolley Avenue, Kingston 4, Jamaica W.I. Phone: (876) 922-6075, 967-5129, 967-5131, Fax: 922-6370

Jacks Hill: Langlys Texaco, 84 Barbican Road, Kgn. 6, Phone: (876) 978-9733

Sovereign Centre:106 Old Hope Road, Kgn. 6, Phone: (876) 978-5116

Liguanea Branch:Lane Plaza, Liguanea, Kgn. 6, Phone: (876) 977-4924

Duhaney Park:Duhaney Park Plaza, Kgn. 20, Phone (876) 933-3505

MichiSuperCentre:2-4 Savannah Ave. Kgn 20, phone (876) 755-4203

Boulevard SuperCentre:45 Elma Crescent ,Kgn 20, phone (876) 765-3582

Manor Park:184 Constant Spring Road, Kgn. 8, Phone: (876) 969-6646

New Kingston:New Kingston Shopping Centre,Phone: (876) 960-9331

East Kings House:LoShuSan Barbican Centre, Phone: (876) 978-3143

PLATINUM CLUB ($5,000,000 $20,000,000)

Bank of Nova Scotia Jamaica LimitedContinental Baking Company LimitedNational Commercial Bank Jamaica LimitedICD GroupIsland GroupJamaica Money Market Brokers LimitedJamaica Public Service Company LimitedJoseph M. MatalonStewarts MotorsWorkforce Development Consortium

LEADERSHIP CIRCLE($1,000,000 - $4,999,999)

Citibank N.A.CourtsGrace Kennedy LimitedJamaica National Building SocietyJ. Wray & Nephew LimitedLasco Manufacturing LimitedLIMEVictoria Mutual Building Society

GOLD($500,000 - $999,999)

Jamaica Broilers Group

SILVER ($100,000 - $499,999)

CIBC FirstCaribbean International BankDevelopment Bank of JamaicaDigicel Jamaica Limited EXIM BankFidelity Motors LimitedFLOWNCB FoundationMayberry Investments LimitedMyers, Fletcher & GordonMusson Jamaica LimitedPan Caribbean Financial ServicesPrime Asset Management LimitedSagicor Life JamaicaSports Max

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ANNUAL REPORT 2011

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T H E P R I VAT E S E C T O R O R G A N I Z AT I O N O F J A M A I C A A N N U A L R E P O R T 2 0 1 1

THE PRIVATE SECTOR ORGANISATION OF JAMAICA AND ITS SUBSIDIARY

FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011

(Expressed in Jamaican Dollars)

ANNUAL REPORT 2011

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T H E P R I VAT E S E C T O R O R G A N I Z AT I O N O F J A M A I C A A N N U A L R E P O R T 2 0 1 1 T H E P R I VAT E S E C T O R O R G A N I Z AT I O N O F J A M A I C A A N N U A L R E P O R T 2 0 1 1

psoj annual report 2011

Documents

jamaica public service

jamaica observer limited6

jamaica producers group7

musson jamaica limited9

jamaica livestock association6

members behalf

following members of

leading sponsorsannual