Govt. Continued to Strengthen Social Infrastructure in 2006

The Government, through the Ministry of Labour and Social Security, continued to make strides in social infrastructure development in 2006, through its flagship project,  the Programme of Advancement Through Health and Education (PATH).

            In February, beneficiaries of the programme received a 32.5 per cent increase in their benefits, which translated into each beneficiary in a household receiving $530, up from  $400.

Also during the month, a delegation from the Kenyan government and the United Nations Children's Fund (UNICEF), visited the island to examine elements of the programme, to see how best practices could be duplicated in social programmes in the African nation.

            After an extensive meeting, where the foreign representatives were briefed about the initiative, State Minister in the Ministry, Senator Floyd Morris, informed that PATH has had much success since its implementation three years ago.

            Data from the Ministry shows that 250,000 persons have accessed the programme.  Senator Morris announced in July that the programme had been streamlined to make the delivery of services to the poor and the most vulnerable more efficient.

            He disclosed that as part of the process, the beneficiary identification scheme would be revised.

            Senator Morris also revealed that an assessment of the PATH programme by the United States-based policy research company, Mathematica, indicated that up to 80 per cent of individuals who accessed benefits under the programme were “amongst the poorest groups within our society”.

            The programme operates on the premise that beneficiaries meet basic health and education conditionalities and aims to: increase educational achievement and improve health; reduce child labour by requiring an 85 per cent school attendance; reduce current poverty by increasing the value of benefits to the poor and serve as a safety net for poor families.

            “Since PATH was implemented, there has been a marked improvement in the attendance of children (at school).  Currently, figures point to between 88 and 91 per cent attendance in schools and we have also seen a high level of reduction of individuals, who are not deserving of the benefits of the programme,” Senator Morris informed.

            The delivery of service to the poor and the vulnerable has also improved significantly, he added.

            Another big moment for the programme occurred in September when it was announced that beneficiaries would be provided with cash cards, which would enable them to more readily access their funds.

            Senator Morris explained that the cash cards would be introduced on a pilot basis in Manchester, St. Catherine and Kingston.

“It will see beneficiaries being granted a card that they can go to supermarket and use just like any other cash card. They can go to any National Commercial Bank machine and draw cash,” he explained.

National Insurance Fund

            Some $420 million out of $825 million, which was approved for disbursement under the National Insurance Fund Credit Facility, was handed over to eight public and private sector financial institutions for on-lending.

            This exercise resulted from an undertaking given by Prime Minister Portia Simpson Miller in her Budget Debate presentation in May, to establish a $1 billion revolving credit facility to provide loans to assist small and medium size business enterprises.

            Minister of Labour and Social Security, Derrick Kellier, who  spoke at the handing over and launching ceremony, said that this facility would be of great benefit to persons in the small and medium business sector, as well as the financial institutions involved. 

            “It is an important development for the Government, the Ministry of Labour and Social Security, the NIF, the network of public and private sector institutions, which will on-lend the funds, and the many micro, small and medium size businesses that will benefit from the facility,” the Minister said.

            “The Ministry, the NIF Board and Secretariat will be very vigilant in ensuring that the guidelines are adhered to. The credit facility must have the intended impact on reducing poverty and unemployment, driving the small business development, and bringing more persons into the National Insurance Scheme,” Mr. Kellier said.