KINGSTON, Jamaica – Earl Jarrett, Chief Executive Officer of The Jamaica National Group (JN Group), has suggested that government should look towards implementing a policy that reduces duty on water efficient technologies imported into the country, to encourage demand for such facilities.
He posited that the idea could result in reduced water demand and conservation; improved supplies; and consequently, strengthen the country’s resilience to the effects of climate change.
Mr Jarrett was addressing multilateral officials; JN executives and directors; as well as, the Minister without portfolio in the Ministry of Economic Growth and Job Creation with responsibility for Water, Works and Housing, Dr Horace Chang, during a breakfast meeting at the JN Financial Services Centre in New Kingston, on March 10.
The meeting was held to sign a loan agreement with the Inter-American Development Bank (IDB), which will result in the multilateral institution channelling US$5.75 million in loan funding, through JN Bank, the JN Group’s commercial banking subsidiary, to finance housing developers to integrate water efficiency technologies in their new developments. (See: JN Bank Helping To Improve Water Efficiency Technology In Jamaica)
“Sometimes you can dangle a carrot in terms of providing a good enough economic reason,” Mr Jarrett commented, pointing to the value of instituting a policy regime.
Giving an example, he stated that such a policy could drive behaviour towards using more efficient water adaptation equipment.
“If there is going to be someone who can supply high volume flush toilets from Latin America and it’s at 25% of the price for the low flush toilet from the US then you know where people are going to go,” he underscored.
Concurring with Mr Jarrett, Onika Miller, Managing Director, MCS Group, which manages The Jamaica National Group’s non-financial assets, noted that such a policy would be an incentive to local suppliers to push environmentally friendly water commodities, similar to the implementation of codes, which resulted in the country’s adaptation of refrigerators and air conditioning units that did not emit ozone-damaging pollutants.
“When you look at the low flush toilets and the difference in volumes used in comparison to a high volume toilet, you’re talking about up to four gallons of water as the savings that you’d have,” Ms Miller, a former Permanent Secretary in the Office of the Prime Minister and a public policy expert, said.
“And, when we examine the public policy dimensions, there is a lot more that we can do to promote water adaptation and water conservation,” she said.
In response, Dr Chang noted that public policy is important to support wide adaptation of efficient technologies. Commending the JN Group and the IDB for the project, he noted that the initiative is coherent with the government’s push for more private sector leadership in development initiatives, with government facilitating the actions.
“I’ll be having discussions with my colleagues to see what policy shifts we can make to encourage these kinds of activities and ensure they succeed,” Minister Chang assured JN executives and directors, noting the importance of the water sector to the country’s development.
Increasing demand for water efficiency technologies, Saffrey Brown, general manager, JN Foundation, commented, could also strengthen innovation in micro small and medium enterprises, which supply the equipment.
The JN Foundation, which is the philanthropic arm of the JN Group, is overseeing the implementation of the technical components of the IDB/JN Water Adaptation Project.
“We are seeking to create local innovation in the marketplace,” Miss Brown said. “Sometimes your demands are immediate and you can’t wait for global solutions. Therefore, how do we create a space in Jamaica, where local suppliers and innovators can collaborate to come up with great solutions?”
“It’s not solely about water adaptation, but also innovation in climate resilience overall,” she commented. And she explained that one of the components of the project is to implement a challenge for businesses, so that MSME’s which produce climate resilient solutions can be identified.
“The objective is to increase the awareness of demand and the related business opportunities for MSMEs in Jamaica; and to help firms to exploit these opportunities by incorporating climate resilience into their business models,” Miss Brown affirmed.
There are also opportunities for the development of new skills and expertise in retrofitting the technologies. The project will take advantage of this by incorporating training through the HEART/Trust National Training Agency.
Lauding the opportunities, Therese Turner Jones, general manager, Country Department of the IDB, commented that, in the final analysis, the move towards water adaption will not only redound to greater cost savings for consumers; and climate change resilience, but also create a stimulus for the productive sector.
“We hope to stimulate the entrepreneurs who may want to go into this business and do more to grow this sector,” she said.
