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Manufacturers Credit & Information Services
March 27, 2006
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ACKNOWLEDGEMENTS
• Mrs Enola Beharie-Williams, General Manager of MCIS
• Mr Henry Pratt, General Manager of Pan Caribbean Financial Services Limited and MCIS Director
• Other Directors of the MCIS Board
• Mr Trevor Heaven, President of the Jamaica Gasoline Retailers Association
• Representatives of the Marketing Companies
• Award Recipients
• Executives of Jamaica National and its subsidiaries
• Staff of MCIS
• Members of the media
• Other invited guests
…Good afternoon.
I am happy to be here this afternoon to share in this awards function. The JN family is particularly pleased with this newest addition to our team. When the proposal was discussed for incorporating MCIS into our family, it was not a difficult decision to arrive at, as we were confident that the partnership would be mutually beneficial.
Today MCS, and by extension Jamaica National, is proud to be the parent and grandparent of this company. As Enola indicated, there is no doubt that synergies exist in this partnership, and these will be fomented to provide our collective customer base with improved products and the highest quality service.
In recent years, Jamaica National has made significant strides into the automobile industry. In 2004 we acquired the Jamaica Automobile Association to strengthen the road assistance programme of our insurance arm, NEM Alert. Now with the partnership created through MCIS and ADVANCE Card, we are poised to make even greater impact on this industry.
We are positioning ourselves to offer customers a comprehensive motor vehicle experience that starts from the insurance of the vehicles right through to facilitating convenient and controlled expenditure management as well as assistance with maintenance and roadside recovery.
IMPORTATION STANDARDS
With this increased focus on the automobile industry, we have been paying keener attention to what’s happening there and how this will affect the quality of service that we will be able to provide. This afternoon, I want to share with you some areas of concern.
Liberalisation of our economy in the early 1990s brought a new face to our automobile industry. It not only facilitated greater ease in ownership of motor vehicles but more importantly, improved their affordability. Today, we are importing approximately 18,000 motor vehicles each year, given the number of import permits that are granted by the Trade Board. One-third of these vehicles are for authorized new car dealers while two-thirds are for the used-car sector. These used vehicles are imported primarily from Japan and, in recent years, from Singapore.
Our concern is the safety standards requirements regarding the importation of these used vehicles. The 2004 Motor Vehicle Import Policy classifies these vehicles as motor cars manufactured within the past three years and light commercial vehicles within the past four years old. While it understood that some of these vehicles are new, others are pre-owned, with most manufactured by the countries of origin specifically for export.
On the whole these vehicles meet the basic importation standards such as manuals printed in English, adherence to the age of importation, stipulated warranty and so on. However, Jamaica does not stipulate requirements of safety standards such as air bags and safety locks on vehicles imported into the country. Instead we depend on the safety features that the manufacturing country may decide to include. But, is this enough? And how does our importation policies compare to that of other countries?
In countries such as the USA and New Zealand, there are specific safety requirements which must be adhered to before automobiles can enter their markets. Interior impact, side impact and head restraints are among the minimum mandatory safety requirements of the New Zealand government for vehicles being imported into that country.
The USA, through its Federal Motor Vehicle Safety Standards, has a series of standards governing motor vehicle importation to ensure the safety of its citizens in the event of an accident. This includes specifications for various areas such as the braking system, tyre specifications, panels and beams, emission standards and vehicle performance requirements to provide head impact protection for occupants, as well as impact protection for minimizing chest, neck, and facial injuries. The motor vehicle must comply with all applicable standards in effect when these vehicles were manufactured and a Customs inspection at the time of entry into the country determines whether or not such criteria are met.
I believe that we also must set established safety standards for our vehicles as, without them, we leave ourselves vulnerable, particularly to markets that operate two sets of automobile industries – with one set of standards for the domestic market and another for the export market. No section of the revised Motor Vehicle Policy speaks specifically to safety standards governing the importation of vehicles.
What is evident in abundance are areas governing obtaining licenses for importation and customer service guarantees. While this is commendable, the Motor Vehicle Policy must go further to definitively address safety standards, which may be the cause of many accidents and deaths on our roads.
ROAD ACCIDENTS
Road accidents are another matter of grave concern. The World Health Organisation reveals that deaths from road traffic injuries account for approximately 25% of all deaths from injury. Worldwide, the number of people killed in road traffic crashes each year is estimated to be almost 1.2 million. That’s 3000 people every day.
Here in Jamaica, the Police Traffic Division reported that there was an increase in the number of fatal traffic accidents for the first 46 days of 2006, when compared with the corresponding period in 2005. Overall for 2005, there were 286 accidents resulting in 326 deaths compared to 309 accidents with 360 deaths in 2004. While the Police submit that excessive speeding and improper overtaking featured significantly in most of these mishaps, I want to propose the possibility of non-compliant vehicle safety issues as another factor.
In this vein I call for the quick implementation of the plan to modernize and privatize the Island Traffic Authority, which has oversight responsibility for ensuring the road-worthiness of vehicles. When the announcement was made by the Ministry of Transport last November, it was stated that this was a priority project with the aim of transforming the Authority into an Executive Agency by April 1 of this year. That deadline is eight days away and we have not heard much, if anything, about this divestment process.
What is the status of this divestment process? It is no secret that concerns have arisen over the competence of persons who have been issued drivers’ licences and vehicles that have been certified as fit for the road. It is imperative that this modernization process be placed on the front burner of the Ministry as the effective functioning of this unit will have implications for road safety, including fewer accidents on our roads.
In many instances, the allocation of drivers’ licences and certification of motor vehicles as road worthy are less than transparent. There is need for greater integrity in the Motor Vehicle Examination section and speedy privatization of the Authority to help reduce corruption.
I encourage the Police to increase their vigilance in this regard on our roads as well as incidences of overloading of commercial as well as passenger vehicles. Too often we have mourned the loss of relatives and friends due to the careless actions of others. Not many of us can readily forget the ghastly accident in St Elizabeth last December when a truck carrying three times its weight overturned killing six persons. The absence of weighing trucks that travel on our roads will continue to support this practice unless measures are implemented to prevent such negligent actions.
ROAD SAFETY
Road safety in all respects must be the concern of each Jamaican. While I commend the National Road Safety Council for its focus on ‘National Road Safety' during the month of June, I want to submit that a national campaign of road safety services and consensus must be developed to support and sustain the work of the Council.
Elements of this national road safety campaign should include the registration of mechanics and the annual renewal of licences as demanded and enforced in other sectors such as hairdressing and nursing. For too long the lifeblood of our nation is being drained on our streets due to careless actions by many of those who sit behind steering wheels or are responsible to ensuring road safety.
This is where private sector entities such as ours is eager to get involved in ensuring that the right policies are in place and that they are enforced. Our insurance company, NEM, is committed to providing ample motor insurance coverage must be available for vehicles deemed worthy by a competent, authentic system. We are willing to support programmes that will make our roads safer with our products and services such as Women on Wheels and NEM Alert.
Through the Jamaica Automobile Association we are willing to provide good motor service that emphasizes the highest quality in roadside assistance and access to repairs. With this company we can offer customers services such as having motor vehicles taken to the Motor Vehicle Examination depot to be passed or vehicle registration renewal at the Tax Collectorate, while ensuring that the process is legal and above-board.
CONCLUSION
Ladies and Gentlemen, I know that these suggestions may not be implemented overnight, but the process must begin if we are serious about making significant improvements in our automobile industry. Proper, standardized safety requirements, an efficient, transparent and reliable system that ensures that we purchase good vehicles and maintain sound, roadworthy ones are imperative in achieving this. It can be done if we are committed to making it happen. Jamaica National stands ready to play its part and we welcome willing partners in this initiative.
Thank you. |
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