Red Stripe wants incentives for converting to LNG
LOCAL BEER manufacturing company, Red Stripe, is appealing to the Government to provide incentives to companies modernising their plants, in the process ensuring a cleaner environment.
Head of Communication at Red Stripe, Dianne Ashton-Smith, made the call against the background of the US$400-million (J$5.2 billion) investment made by the company to upgrade its plant to use liquefied natural gas (LNG). That move is expected to result in significant savings for the manufacturer. It also makes Red Stripe the first fully private company in Jamaica to go the LNG route.
The Jamaica Public Service (JPS), which received its first shipment of LNG from United States-based New Fortress Energy in August 2016, is 20 per cent owned by the Jamaican Government.
Ashton-Smith was speaking last Thursday at the first ever natural gas conference at The Jamaica Pegasus hotel in New Kingston.
She argued that it was time for the Government to consider some form of protection of the industry against increases in the special consumption tax to make it more appealing for other companies to convert to LNG.
Ashton-Smith said such a move would encourage more companies to go that route. An added boost would be for the Government to consider placing incentives on duties to import all equipment and accessories that use LNG, said Ashton-Smith.
And she is imploring the Government to consider a tax credit on the environmental protection levy and income tax, since converting to LNG is a “green initiative”.