VZCZCXRO0830
RR RUEHGR
DE RUEHKG #0647/01 0931803
ZNR UUUUU ZZH
R 031803Z APR 06
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC 2536
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHAO/AMCONSUL CURACAO 0159
RHEFDIA/DIA WASHDC
RUEABND/DEA HQS WASHINGTON DC
RUMIAAA/CDR USSOUTHCOM MIAMI FL
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 KINGSTON 000647 
 
SIPDIS 
 
STATE FOR WHA/CAR (BENT) AND WHA/PDA 
STATE ALSO FOR INL/LP (BOZZOLO), EB/TPP, AND EB/IFD 
STATE ALSO DOE CA/OCS/ACS/WHA (RUTH BRANSON) 
STATE PASS OPIC FOR TABERNAKI 
CUSTOMS MIAMI FOR LOWEN AND MAHABIR 
SANTO DOMINGO FOR FCS, FAS, AND LEGATT 
STATE PASS USTR FOR A. GASH-DURKIN 
DOJ FOR OPDAT/R LIPMAN 
TREASURY FOR LAMONICA 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EFIN ECON EINV PHUM ELAB KHIV JM
SUBJECT: KINGSTON POL/ECON ROUNDUP: MARCH 18 - MARCH 31, 
2006 
 
Ref: A. Kingston 555 
 
     ¶B. Kingston 633 
 
KINGSTON 00000647  001.2 OF 002 
 
 
¶1.   This week's topics: 
 
--   New Prime Minister Sworn In 
--   Economic Policy Stability 
--   Cement Industry Developments 
--   Labor Relations 
--   Revised Sugar Production Target for `05/`06 
 
------------------------------ 
New Prime Minister Sworn In 
------------------------------ 
 
¶2. On March 30, Portia Simpson Miller, was sworn in as Prime 
Minister by Governor-General, Professor Kenneth Hall.  She 
became Jamaica's seventh Prime Minister and the first female 
to hold the position at an outdoor ceremony at King's House 
in front of a crowd estimated to be between 6,000-10,000. 
The former Prime Minister PJ Patterson stepped down earlier 
the same day.  Simpson Miller was previously Minister of 
Local Government, Sports and Environment.  At midnight on 
March 31, Prime Minister Simpson Miller announced her 
cabinet (Septel). 
 
------------------------- 
Economic Policy Stability 
------------------------- 
 
¶3. Newly installed Prime Minister Simpson Miller has kept 
Dr. Omar Davies as Minister of Finance and Planning, which 
comes as no surprise.  Dr. Davies is generally well regarded 
for his efforts to impose fiscal responsibility in order to 
bring down the national debt and keep inflation and interest 
rates under control.  A meeting with officials from the 
Fiscal Policy Unit at the Ministry of Finance and Planning 
indicated that this year's budget will contain no surprises, 
although they acknowledged that the dream of a balanced 
budget will have to wait at least another year.  The 
expenditure budget will be announced on April 12. 
 
---------------------------- 
Cement Industry Developments 
---------------------------- 
 
¶4. The embattled Carib Cement Company Limited (CCCL) 
continues to reel from the twin blows of insufficient supply 
and the detection of substandard quality product.  While the 
removal of a 25 percent surcharge on imported cement is 
beginning to address the national shortage that has crippled 
the construction sector island-wide (Ref A), the quality 
issue may yet prove the more serious blow.  Rumors are 
swirling that CCCL intends to "mix" new batches of cement 
with the old, faulty batches, a claim that the company 
strenuously denies. 
 
--------------- 
Labor Relations 
--------------- 
 
¶5. Amid a variety of fractious labor disputes over the past 
several months (Ref B), the public sector Memorandum of 
Understanding (MoU) expired on March 31, without reaching 
consensus.  The Jamaica Teachers Association pulled out of 
negotiations last week amid wage disagreements, calling the 
GOJ's offer an "insult."  Nevertheless, the public sector 
unions and the government are confident that an agreement 
will be reached very soon, ideally before the budget is 
announced on April 12. 
 
----------------------------------------- 
Revised Sugar Production Target for `05/`06 
----------------------------------------- 
 
 
KINGSTON 00000647  002.2 OF 002 
 
 
¶6.  The  state-owned Sugar Company of Jamaica  (SCJ),  which 
accounts  for approximately eighty percent of the industry's 
output, has revised its `05/`06 raw sugar production  target 
from  130,000  metric  tons (MT)  to  115,000  MT.  Industry 
experts  are  skeptical of this projection and expect  SCJ's 
target  to  be further reduced to about 100,000  MT  in  the 
coming   weeks,  and  actual  SCJ  output  to  be   in   the 
neighborhood  of 90,000 MT. The ailing industry  is  heading 
for  a  third  consecutive year of  record  low  production. 
Output is projected at 130,000 MT, 15,000 MT below Jamaica's 
145  MT quota obligations (EU 126,000 MT and US 19,000  MT). 
Domestic consumption will be fulfilled from imports,  as  in 
recent  years.  SCJ's CEO, Livingstone Morrison,  attributed 
the   decline  to  unfavorable  weather  conditions   during 
harvesting that affected crop quality.