Dr. Marshall Hall, CD

Dr. Hall with Hall Of Fame Citation

Many years ago when I was trying to emerge as an economist, I attended an American Economic Association annual meeting and one of the presenters in talking about economists said, if an economist was asked to choose between writing a theorem that would solve the worlds unemployment problems and writing a theorem that all economists would say that is the best article ever written by an economist it is the latter, the praise of his fellow economists, that would be chosen. That is why this induction is so special to me tonight. It is my colleagues in the private sector who have declared me fit to be inducted into their Hall of Fame and for that I am pleased and humbled and feel honoured and proud. I almost did not accept however.I don’t know if any of you know this but the PSOJ first approached the most ethical businessman in Jamaica but he turned them down…! Then they approached the most brilliant businessman in Jamaica…and he turned them down. Then they approached the most handsome business man in Jamaica, and then I said to myself Hall you cannot turn down this offer for the third time in a row so I accepted.

The founding fathers of JP had the vision and the courage back in 1929-1930, to look at a through the the Jamaican banana industry fro m growing to retailing and identify the appropriate entry point to impact the industry and find a way to overcome the difficulty of getting produce on to the international market without depending on the established multinationals. Representing a group of small growers – PEOPLE WITH 10 AND 20 ACRES OF LAND from St. Mary and Portland and the other banana growing parishes -- , they did not just try to tinker at the margins. These farmers and their representatives, did not just repeat the tried approaches of cost reduction or marginal productivity improvements.

Dr. Hall receiving citation from Mrs. Beverley Lopez

Think of the times, 1929, 1930—major world recession and then think of the intervention – borrowing money, chartering and buying refrigerated vessels to sail them across the Atlantic. Such courage, such vision. Can any of you imagine leading 6,000 banana growers today in Jamaica to put together the money to buy four refrigerated vessels to get their produce to the UK market.

Joining a company with that history and that tradition of working looking through the problems by and identifying the crucial points of intervention and bold innovation is one of the major reasons why we have not only survived for over 75 years but done so successfully. Over the years that I have been privileged to lead Producers I have sought with the support of Board, Management and Staff to look at problems and try something bold and radical to get them solved.

We did not start life as a banana company narrowly defined and have never been a traditional banana company. We began with shipping integrated forward into banana ripening and other fresh produce distribution and later backward into farming in Jamaica. We have always regarded the world as our turf and now import into the UK produce and juices from some twenty countries and are a key supplier to four of the top five UK supermarkets. 

In doing this we have had our share of failures but that is normal if you seek to implement your dreams. Jamaica today has a multitude of problems and, as was the case back in 1929 with bananas, vision is needed. Understanding how others have responded to challenges similar to ours is important but we must understand that we need to adapt and modify the solutions of others to the special problems of Jamaica. We cannot just repeat.

Indeed the recent models of rapid growth—Ireland, Singapore, China, India , Hong Kong – are all trying different models from each other, and also, different models from what worked in the US and Europe. The different approaches reflect different histories, radically different views of the state, and radically different notions of politics and democracy. Their vision and the unique interventions that flowed from their vision were to deal with their problems and their starting point for development. Jamaican problems require Jamaican solutions. If we are to catch up, we have to try something different from the tactics of the countries we are trailing…otherwise we will forever be behind.

Politicians and businessmen love to say that the private sector is the engine of growth. I suspect that both agree because one wants to pass the buck rather than start the engine and the other wants to be given a buck to start the engine.

The private sector is about business and business is about doing things that employ people and makes a profit. How do we get this engine of growth on track and traveling fast enough to help resolve some of the many problems that beset our country is a major goal.

In Wales where our juice complex is located we have built a significant food business. One secret of our success – and there are many – is that we struck a deal with the Government of Wales to support the development of the plant.

Fifteen years ago when we were getting started, South Wales was one of the most depressed areas in Great Britain. We promised to employ people and the government said that that was worth something to them and was worthy of support. Today, we are proud that that business employs over 500 people and pays over $150 million dollars a year in taxes – more than the Wesh Government ever offered us in support.

In Europe and other countries the establishment and support of enterprise zones is an accepted way to foster development.

As we look through the needs of the depressed parts of Jamaica the requirement of permanent, successful businesses doing what businesses do -- bringing in capital, employing people and making a profit must be a goal. The pressures on the state, however, are enormous and no research is necessary to conclude that the state simply does not have the funds to provide meaningful incentives to persuade companies to establish new businesses in the more depressed parts of Jamaica.

Rational businessmen do not maximize risk and so locating in the inner city or in parts of rural Jamaica prone to agricultural theft and the vagaries of the weather are simply not attractive enough to warrant the risk. Jamaican problems require Jamaican solutions. We cannot afford to pay for failure and therefore I would like to suggest that for Jamaica the government identify certain enterprise zones and say to the private sector if you establish in these zones with prior approval of what you plan to do and your business survives there be some rationally structured way of returning to the companies all or an agreed portion of the taxes generated from their establishment in the approved enterprise zone.

The incentive in other words is self-funding. The company would have to be established and survive for at least three years before any taxes generated are returned to them.

The goal is not to offer support to businesses that need support to get started. Rather we look through to the needs of the inner city and depressed rural Jamaica and see that the need is for permanent jobs, a stable environment and a future for the young. In parts of inner-city Kingston there are empty factories, and some infrastructure. Idle land there is aplenty in certain parishes.

The proposal is simple, straightforward, clear and specific. Succeed and you will be rewarded, no upfront funds. The approach need not be permanent but could be Lasting for six years is a great start to lasting for generations. The exercise must also have certainty about the payment of the ultimate incentive.

What am I suggesting? I am suggesting that we look at the through the problem of depressed communities to the solution and find a way to get the best involved in the solution and try a bold an entrepreneurial solution. That solution involves getting businesses to locate in the heart of these communities.

Forget our normal envy concerns of whether it is a foreign company or local successful company that gets the incentive. The incentive is only paid after successful establishment and is paid from the taxes that would not have been generated if the enterprise had not been established. We need not start with a big project. Identify the most likely zone to succeed and start and learn. That was the way of the founding fathers of JP and that was the way of the juice pioneers.

The nay sayers will say they would have done it without the support or they should have done it a long time ago and without any support. The economist trained on opportunity cost will say they have merely chosen a different location at the expense of the taxpayer. I say we would be on course to utilizing a lot of empty factories and idle land and providing the foundation for growth. It is not all about getting the macro parameters right.

I can hear the whispering at your tables. How did we manage to consider inducting this teacher into our Hall of Fame? These academics do nothing but theorize. I think my idea has merit but it is not the idea per se that I am pushing but rather the requirement to look through our problems to identify the point and type of intervention. To be visionary but practical. To accept that our problems require solutions that recognize our special circumstances.

We need witnesses to come forward to help the police solve our crime but they are terrified. Perhaps we should ask them just to provide the evidence that points the police in the right direction without the requirement that they testify. Surely some good information is better than no information.

I close by recognizing those who guided me – the two chairmen during my stint at Producers, -- the late George Downer, and my current chairman - Charles Johnston. The duty of the Board is to say yes or no on key decisions and I thank Charlie for the many times he and his Board said yes and it worked and say to them for the times they said yes and it did not work thanks for the faith.

I have been privileged to have had and still have a single secretary who serves as my personal assistant and guidance counselor since I have been at Producers and gratefully acknowledge her help tonight. I speak of course of Cavell Gale. Please give her a round of applause. She knows that my motto is if you hand out psychic income you do not have to give salary increases so from that applause I am on course to holding the wage increases to acceptable levels next year. Maybe I should ask you to give a cheer for the whole staff and then get away with only psychic income increases. I must be a dreamer.

Wife Jean, children Allyson, Andrea and Jeffrey, brothers and baby sister, in-laws, extended family a thousand thanks. You know and I certainly know that you have provided succor and guidance in a million ways.

I salute also the management and staff both those who have moved on and those still with Producers.

This is your induction.

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