Local car industry vital to island’s economy

 

The car dealership industry in Barbados continues to be a vital and integral part of the national economy.
 
This is according to Minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss, while revealing that the importation of vehicles into Barbados for the last five years totalled 22 691 with an import value to the tune of BDS$572 787 275.
 
“With the current duty structure, this also represents great revenue earnings to the Government of Barbados,” he stressed.
 
The Minister, who was at the time addressing the official opening of Platinum Motors at its new Fontabelle location on Wednesday night, said there has been growth in the number of licences issued for the importation of used and new vehicles into Barbados.
 
“In 2015 we processed 2 084 licences for new vehicles which is a 0.7 per cent increase over 2014 amount of 2 084; However, the figures for 2016 shows a further increase to 2 673 new vehicles which is a 28.28 per cent increase over 2015…Whereas for 2015 we processed 1 759 licences for used vehicles which is a 30.10 per cent increase over the 1 352 issued for 2014. For 2016, we saw a further increase in the number of licences issued for used cars increasing to 2 078 which is an increase of 18 per cent over 2015.”
 
He also shared that Barbados currently imports an average of 395 vehicles per month at an average monthly expenditure of almost $10 million per month, explaining that the invoices for the importation of vehicles is settled primarily in US dollars.
 
“Perhaps we will get a better grasp of why the report issued by the Central Bank yesterday (on Tuesday) is so timely and relevant,” he told guests.
 
“Whilst I am satisfied that there is no need for us to panic and perhaps become irrational, it is instructive that purchases like these do come a good chunk of our foreign reserves”.
“I am not suggesting that we curb the importation of motor vehicles but rather that we remind ourselves as to the need for us to earn and save foreign exchange wherever possible. We cannot tax or borrow our way out of our circumstance – we have to earn our way out of it,” the Minister insisted.
 
Inniss further observed that when the expenditure on fuel imports is added as well as the importation of parts and other supplies, there is a better appreciation where a lot of the country’s foreign exchange is going. According to him, “a lot of it goes in the vehicles we drive”, also disclosing that currently in excess of $1 billion per year is spent year on the importation, fuelling and operation of vehicles in Barbados. 
 
“I do not foresee any significant decline in the expenditure on vehicles, ceterius paribus, in the short to medium term. Therefore, our task must lie in how we can earn the money to pay for the vehicles we own and operate whether they be public or private sector owned and operated”. (TL)

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