The Joint Economic Council (JEC) is ?extremely disappointed? at the government?s attitude and voiced it out in a meeting with the press yesterday. ?The state must not interfere in spheres where it has nothing to do,? said the JEC chairman, Jacques de Navacelle, as an introduction, denouncing the irrational behaviour of the government compared to the last budget and calling upon a reopening of a dialogue between the private sector and the state.

While the private sector had a very positive reaction just after the presentation of the last budget, it now seems hopes have given way to disillusion. The JEC director, Raj Makoond, now speaks of ?mixed feelings?. The budget speech paved the way to certain changes towards a more liberal economy but some recent government decisions including price control, the delay in the sugar sector reforms or of labour laws points exactly in the opposite direction. ?We would not say anything if the budget speech last year was directed towards a state-controlled economy but this was not the case. We were in favour of the decisions announced because they were going in the same direction as the measures the private sector had always recommended. The state can?t decide to change direction without any consultations with the private sector,? comments Jacques de Navacelle.

Raj Makoond pointed at the inconsistency and uncertainties that such a change is creating in the business world. ?When we go abroad, we are not very keen on telling potential investors what is happening here! The whole country will end up suffering from such a situation,? said Jacques de Navacelle. ?Demagogic speeches that some Mauritians are too rich must stop. If the ones who have succeeded are discouraged, how will future potential entrepreneurs be interested in starting a business??

The private sector feels it should no longer be criticised. ?We should not forget that 80% of employment, 75% of GDP and more than 70% of total investment come from the private sector,? reminded Raj Makoond on several occasions. ?The dialogue between private sector and policy makers is at the basis of our development. This is what has always helped us face challenges. This is why Mauritius is quoted as an example in the region.?

This is why the JEC can?t understand why the state has switched off any relationships and discussions with them. The latest consultations date from the last tripartite negotiations. Since then, the government has not been interested in listening to the private sector?s opinions. And yet, ?we would have a certain number of things to say especially on the issue of broadening economic opportunities?.

Lack of progress on several fronts

For them, this lack of dialogue has resulted in a ?lack of progress on several fronts? including price control, a delay in sugar sector reforms, in infrastructure reforms while ?some improvement could be noted lately after the budget measures?. They also regret that the competition bill has not been implemented yet, as it would help liberalise the market while making sure that no company is taking inappropriate advantage of the situation.

In fact, the private sector wants the government to be clear on what it really wants: ?either it wants a liberal type of economy or not,? said Jacques de Navacelle. ?And the state is still too present in a certain number of sectors.? If the state does not deliver the goods and keeps avoiding the private sector, the JEC thinks it may have to ?make up for its lacks?. But what the JEC would like, above all, is that the state resumes the dialogue with the private sector, as this collaboration has always been profitable to the country.

After being one of the most ardent defenders of the budget when it was presented last year, the JEC does not hesitate to be very severe against the government. They make it clear that they only support stands ? and not people. ?The JEC will never support any government. Politicians stay only a short while; Mauritius has centuries ahead,? concluded the chairman. It sounds like an advice for the government, as the next budget is getting closer, doesn?t it?