Sunday, 31 May 2009

Killing The Goose


Groundins

By: Charles H.E. Campbell


N.B. The Jamaica Observer published an abridged version, omitting salient and critical aspects of some paragraphs, and by so doing might have misrepresented the thrust of my article. Please see original version below.



The Dancehall community feels it is being unfairly targeted and set upon by various local authorities, and they are digging in their heels. The fraternity cites recent actions by the Broadcasting Commission and other Law Enforcement agencies, for coming to this conclusion. As a consequence, they seem to be adopting a bunker mentality, remaining skeptical to approaches by all perceived ‘outsiders’, even questioning the motives of JARIA, the newly formed umbrella organization for the Jamaican Music Industry. This is a major challenge which the association will have to overcome through dialogue with influential members of this genre if it intends to effectively pursue its mandate to represent all sectors within the industry. The “Hail & Reasoning” planned for 7:00pm on Tuesday, June 2, at Rib Cage, is an attempt by JARIA to begin a process of consultation with Artistes, Managers, Producers and Promoters from this sector. The function is designed exclusively, to allow them full expression of their points of view, on all the issues currently impacting their profession and individual careers.

Ironically, a similar sentiment, as it relates to JARIA, still persists amongst some formally trained classical musicians, but this is because of historical reasons and the misnomer of the term Reggae in the association’s name. For posterity, it is important to note that ‘Reggae’ was only incorporated into the name after it was discovered that the domain of ‘Jamaica Music Industry Association’ was already registered by some other entity. Fortunately, this unfounded view is gradually being eroded, as a significant number of them, unlike their Dancehall counterparts, have joined and become more integrated in the work of the organization. This has helped, through ongoing and oft-times intense deliberations, to better clarify their needs and vision, and by extension, the ability of JARIA to lend critical support and representation, in keeping with the stated mission of the organization.

These are natural growing pains for any organization of this type, seeking to represent sometimes competing (and even conflicting) interests. However, JARIA will have to speedily overcome this phase, in order to concentrate its focus on the many burning issues affecting the entire sector, and are in dire need of being addressed in everyone’s mutual interests.

One of the most important stated objectives of JARIA is to lobby for the reduction, amelioration and/or revision of regulations, laws and taxation that presently retard the ability of the industry to operate efficiently and profitably, and on a more level playing field. For example, the Government is actively moving ahead with its policy of making Parish Councils autonomous bodies. This means that each one will be allowed to establish their own rate structure and scale for services within their Parish, including Places of Amusement Licenses and permits to place advertisement boards in public places. This is against the background that already, there has been an escalation of indirect overhead costs for events in all parishes. This is due, in large measure, to License related fees charged by participating local agencies, apparently without any centrally stipulated and approved, uniform standards, classifications, codes or verifiable references, which would make the process transparent to the average applicant. Some public bodies are obviously exploiting this unregulated state of affairs, not in the public interest, but to satisfy extortion demands, and the sheer greed of so-called public servants in their employ.

To fulfill application conditions for a recently held event in Clarendon, for instance, and before the timely intervention of the Parish Manager, five Public Health Officers were ‘assigned’ at a rate of Ten Thousand dollars ($10,000) each for two four-hour shifts. This number was solely decided by the parish’s chief public health officer, as being necessary to supervise ten (10) food stalls. Upon request by the applicant, the department was unable to provide any objective criteria for arriving at this number. Further, when asked to rationalize the fees, the deputy chief public health officer claimed that the fees were based on the fact that the event was being held on a public holiday. When it was pointed out that the holiday was actually being celebrated on the Monday because the official date fell on a Saturday, the response from the department was that the rate was a weekend rate. Aren’t you flabbergasted? This implies that the public health service in Clarendon only functions from a Monday to a Friday. Does this mean then, that under normal circumstances, diseases, germs and viruses are in frozen animation on a weekend, unless an event comes to town? The deputy chief public health officer also kindly informed the producers that the correct rate was Seven Thousand Dollars ($7,000) per four-hour shift and that this was in fact a discounted rate. To add insult to injury, an attempt was made to console the producers, by suggesting that if the function was being staged St. Catherine, their counterparts would require Twenty Thousand Dollars ($20,000) for each public health inspector. Dejected and frustrated, the producers called the Ministry of Health seeking guidance and were informed that no fees apply and the promoters are only required to pay duty allowance. I do not know where in the public sector duty allowance is Ten Thousand Dollars ($10,000) per person.

A similar arbitrary approach is used by Parish Councils and the KSAC in determining the costs of permits for temporary advertisement boards, normally used as teaser boards and placed along roadways, prior to the commencement of the main advertising campaign for an event. While the KSAC charges one flat fee of Two Thousand Five Hundred ($2,500) Dollars per 2’ x 2’ board, some councils charge upwards of Five Hundred Dollars ($500) per week for each board. This defies logic, since by nature the boards are designed to create awareness of the event at the very beginning of the promotion cycle, ideally for a minimum of ten (10) weeks. At that unit cost however, no event can possibly afford to use the boards for the full cycle. In effect, their main purpose is partially defeated and unwittingly, the Parish Councils are losing potential revenues by applying these unfeasible rates.

Another tax measure re-imposed by the Minister of Finance during this year’s national budget exercise, is Central Government’s requirement of sixteen and a half percent (16½%) General Consumption Tax on every ticket sold for an event. What happens when the event is an all-inclusive event, where food, beverages and other services such as parking or shuttle transportation are a part of the ticket cost? Has anyone thought through how to separate, isolate and pro-rate the services included in such a package? Note here, that GCT is paid by the promoter to the providers of all contracted goods and services, for example, stage, light, PA system, caterers, transportation- every thing down to the cost to print and supply the event tickets and arm bracelets. Does the law still allow companies to deduct GCT paid by the promoter on related overhead costs?

The need to arrive at common industry positions and lobby Government on these issues, has become even more critical during this global economic recession, as along with increased overheads, most events now demand more risk financing by promoters due to a drastic reduction of corporate sponsorship and lower patronage.

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