Councillor for the Montego Bay North East Division and Government Senator Charles Sinclair is calling for local authorities (Municipal Corporations) to be allowed to use provisions of existing legislations in generating funds to undertake capital projects.
These provisions include the Local Authority’s Act and the Local Governance and Financial Management Act-legislations which facilitate local authorities, with the approval of the appropriate Minister raising fund through loans by the issuing of stocks or debenture or both
Senator Sinclair who is a former Mayor of Montego Bay said the call comes against the background of local representatives having to seek funds from central government every time there is a major project to be undertaken in their parish.
He said “every member of every local authority across the length and breadth of Jamaica would wish for the authority to undertake major capital project s for the benefits of the citizens of the respective parish. In order to do so they cast their eyes on central government for funding…It is high time that local authorities should be allowed to use the provisions of existing legislations to generate funds to undertake well thought-out and meaningful projects…projects that can generate substantial revenues to offset liabilities incurred in securing the funds or which meet the necessary threshold of a necessary social service to warrant the risk”.
Senator Sinclair added that there are a number of capital projects which can become a reality if this new method becomes a reality.
He said “ I can envision capital projects that can produce returns sufficient to meet obligations to the funding source…Local authorities should strive to establish credit worthiness and good fiscal management and advance worthwhile projects to the Minister for funding…It is time that we take a critical look at the Local Governance Act and the Local Governance Financing and Financial Management Act”.
