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The
Distributive Sector comprises various categories broadly referred to as micro
enterprises, small enterprises and large firms. During 2009, the Distributive
sector was impacted by the effects of the global economic crisis on the domestic
economy. It recorded a decline of 1.2 per cent and contributed 19.3 per
cent or J$94.7 billion to overall GDP. The decline was attributed to:
-
A
reduction
in remittance inflows;
-
A
decline
in real incomes;
-
Increased
unemployment levels; and
-
A
reduction in the stock of loans and advances extended by commercial banks
for personal consumption.
Policies and Programmes
Regulation
of the Distributive Sector is done mainly through the Fair Trading Commission
(FTC); Consumer Affairs Commission (CAC); Bureau of Standards Jamaica (BSJ);
and Trade Board Limited (TB). The Ministry of Industry, Investment and
Commerce (MIIC) also launched the regional Consumers International/IDB Project
and Jamaica National Agency for Accreditation. This was done in an effort to protect
consumers and ensure that goods traded on the domestic market comply
with specified standards.
During the period under
review, FTC investigated 465 cases, 254 less than the previous year. The
primary breaches investigated were from the category “Misleading
Advertisement” with 298 followed by “Offences against competition”. A
total of 340 cases were resolved by the FTC, 84 less than the previous year. During
2009, the FTC received 164 complaints, 13 less than the previous year. The
largest number of complaints was in relation to "Misleading Advertisements". The majority of
the complaints (54) were made against Telecommunication companies. Firms selling household
appliances and accessories and those dealing in automobiles recorded 14 and 12 complaints respectively.
The
CAC continued its mandate to represent consumers'
interest in both national and regional matters through its public education
programme. It conducted a number of surveys on the prices of grocery items, agricultural produce, hardware items,
textbooks and petrol in an effort
to monitor price movements and availability of these products. The results
were made available to the public in local newspapers and other publications.
During
the year the number of complaints received by the CAC totalled 1,947 of which
1,908 were settled. Complaints were made concerning for example electrical equipment and
appliances, motor vehicles and parts. The agency kept the public
informed by publishing the prices of basic food items on a weekly/monthly
basis. In addition, a total of $25.3 million in refunds was secured on behalf
of consumers.
Site visits
were conducted as part of the BSJ's mandate to establishments in order
to enforce the Standards Act. During 2009, the BSJ made approximately 16,071
site visits, 2,763 more than the previous year. A total 7,554 containers were inspected
at the port of entry of which 348 did not conform
to the Standards Act. Goods that were in breach included garments, food items,
toiletries and footwear.
The
Trade Board is responsible for administering and enforcing the Trade Act and
it monitors the issuance of licenses required for
the importation of specific goods. During 2009 a total of 12,151 motor
vehicles were
imported, compared to 21,802 in 2008, a decrease of 9,651.
Permits were issued for the importation of items such as sugar, explosives/ammunitions,
firearms, chemicals and gaming machines.
Performance Indicators
The categories of goods which
recorded the highest sales in 2009 were:
-
Chemicals,
Pharmaceuticals and Cosmetics, and
-
Minerals,
Fuels, Lubricants and Petroleum.
Sales
for the Chemicals, Pharmaceuticals and Cosmetics group increased by 9.3 per
cent. There was a similar increase (9.5 per cent) in the sale of Minerals, Fuels, Lubricants and Petroleum.
The furniture, furnishings, office equipment and jewellery sub-category recorded
the highest declines in sales of 26.6 per cent. The automobiles, commercial
and transport equipment sub-sector recorded an 11.4 per cent decline in sales.
The primary reason for this reduction was in the sale of motor
vehicles, auto parts and accessories.
The
food, beverages and tobacco sub-category recorded a reduction of 7.8 per cent
in 2009. This reduction may be attributed to low sales by wholesale and
supermarket grocers.
Source: The Economic and Social Survey 2009
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