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The absence of dialogue
between the government and the private sector is “unhealthy
and harmful to the country”, says the JEC. It is important
that the former goes ahead with budget decisions and stops
with “inconsistencies”.
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| JEC director, Raj Makoond (L.) and chairman,
Jacques de Navacelle, did not mince their words
yesterday. | The Joint Economic
Council (JEC) is “extremely disappointed” at the government’s
attitude and voiced it out in a meeting with the press
yesterday. “The state must not interfere in spheres where it
has nothing to do,” said the JEC chairman, Jacques de
Navacelle, as an introduction, denouncing the irrational
behaviour of the government compared to the last budget and
calling upon a reopening of a dialogue between the private
sector and the state.
While the private sector had a
very positive reaction just after the presentation of the last
budget, it now seems hopes have given way to disillusion. The
JEC director, Raj Makoond, now speaks of “mixed feelings”. The
budget speech paved the way to certain changes towards a more
liberal economy but some recent government decisions including
price control, the delay in the sugar sector reforms or of
labour laws points exactly in the opposite direction. “We
would not say anything if the budget speech last year was
directed towards a state-controlled economy but this was not
the case. We were in favour of the decisions announced because
they were going in the same direction as the measures the
private sector had always recommended. The state can’t decide
to change direction without any consultations with the private
sector,” comments Jacques de Navacelle.
Raj Makoond
pointed at the inconsistency and uncertainties that such a
change is creating in the business world. “When we go abroad,
we are not very keen on telling potential investors what is
happening here! The whole country will end up suffering from
such a situation,” said Jacques de Navacelle. “Demagogic
speeches that some Mauritians are too rich must stop. If the
ones who have succeeded are discouraged, how will future
potential entrepreneurs be interested in starting a business?”
The private sector feels it should no longer be
criticised. “We should not forget that 80% of employment, 75%
of GDP and more than 70% of total investment come from the
private sector,” reminded Raj Makoond on several occasions.
“The dialogue between private sector and policy makers is at
the basis of our development. This is what has always helped
us face challenges. This is why Mauritius is quoted as an
example in the region.”
This is why the JEC can’t
understand why the state has switched off any relationships
and discussions with them. The latest consultations date from
the last tripartite negotiations. Since then, the government
has not been interested in listening to the private sector’s
opinions. And yet, “we would have a certain number of things
to say especially on the issue of broadening economic
opportunities”.
Lack of progress on several
fronts
For them, this lack of dialogue has
resulted in a “lack of progress on several fronts” including
price control, a delay in sugar sector reforms, in
infrastructure reforms while “some improvement could be noted
lately after the budget measures”. They also regret that the
competition bill has not been implemented yet, as it would
help liberalise the market while making sure that no company
is taking inappropriate advantage of the situation.
In
fact, the private sector wants the government to be clear on
what it really wants: “either it wants a liberal type of
economy or not,” said Jacques de Navacelle. “And the state is
still too present in a certain number of sectors.” If the
state does not deliver the goods and keeps avoiding the
private sector, the JEC thinks it may have to “make up for its
lacks”. But what the JEC would like, above all, is that the
state resumes the dialogue with the private sector, as this
collaboration has always been profitable to the country.
After being one of the most ardent defenders of the
budget when it was presented last year, the JEC does not
hesitate to be very severe against the government. They make
it clear that they only support stands – and not people. “The
JEC will never support any government. Politicians stay only a
short while; Mauritius has centuries ahead,” concluded the
chairman. It sounds like an advice for the government, as the
next budget is getting closer, doesn’t it?
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