Jamaica Gleaner
Published: Monday | January 12, 2009
Home : Business
Westmoreland in a bind - Economic slowdown, unemployment affect parish
Gareth Manning, Gleaner Writer

Coupled with an economic slowdown, the tardy start in sugar production this season has put Westmoreland and its capital, Savanna-la-Mar, in particular, in a bind.

The town's unemployment number have been swelling in a parish where joblessness is already high, as businesses see dismal days. A usually busy Christmas season was half its size last year, causing sales to drop some business people told The Gleaner.

Businessmen like Andrew Williams, who operates one of Savanna-la-Mar's oldest family outfits - Jackson Williams Company Limited - have seen sales plunge by as much as 60 per cent.

"I've had to cut my staff by half. ... I've cut back my staff's overtime, I've sent home the cook and I've parked one my trucks and taken off the insurance," Williams said. "I'm looking for every way to cut expense and hopefully keep on the staff because they have been loyal."

There has been little money to spend in the sugar capital, as the island's largest producer of the commodity, the Frome factory, failed to restart operations on time. The season, which would have normally begun between late November and December, only started last Friday.

"We would have had two or three pay bills for the cane farmers and the haulage contractors and that money would be in circulation. When the cane factory is down, there is no money in circulation," said cane farmer Delroy Daay.

Pharmacy sales decline

Daay, who is also a pharmacist, added that he has seen sales at his pharmacy in Savanna-la-Mar decline by 30 per cent.

"The normal avenues of input into the Westmoreland economy, sugar cane and remittances, are all down because of the global slowdown and businesses are feeling the pinch," said Williams.

Westmoreland's prime resort area, Negril, accounts for 22.6 per cent or 9,137 of people directly employed to the accommodations sector, according to the Jamaica Tourist Board. Over the January to February period, the resort town enjoyed 8.3 per cent of stopover visitor arrivals. Meanwhile, sugar through Frome provides an estimated $2 billion for the economy annually, stakeholders say.

Not only businesses have been suffering though, said Williams, but also service clubs like the Rotary. Williams, who is an active Rotarian, said the club did not receive the contributions it normally would during the Christmas holidays either.

Some projects have had to be delayed as contributions have been reduced to a trickle because of the sugar slowdown and the state of the national economy, still struggling with high prices and sliding dollar.

Businesses are also concerned that crime could see another dramatic increase as the Westmoreland economy continues to suffer.

"With unemployment being so high in Westmoreland, crime is up," Williams said.

The situation has already forced him to make some operational changes at his supermarket because of an exponential growth in shoplifting.

"For every person you send home, that is a family that won't be fed tomorrow ... . If a man is desperate enough, he will steal food to feed his family," he said.

gareth.manning@gleanerjm.com


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