Speech of Honourable Dr Rajeshwar Jeetah, Minister of Industry,

Small and Medium Enterprises, Commerce and Cooperatives on the

occasion of the WORLD STANDARDS DAY 2006

 

 

Miss Varuna Bunwaree, Chairperson, Standards Council

Mrs. R. Nanhuck, Acting Director, Mauritius Standards Bureau

Distinguished guests

Ladies and Gentlemen.

 

1.      It gives me much pleasure to address you this morning on the occasion of the half day seminar being organised by the Mauritius Standards Bureau to mark the  World Standards Day 2006.  In fact, I should say that I am doubly pleased as the theme this year is Standards: ‘Big Benefits for Small Businesses’ and we all know the emphasis that  Government is placing on small businesses.

 

2.      As you are aware, the Mauritian economy is faced with three main constraints.  First, the soaring prices of petroleum products on the world market.  Second, the programmed cut in the price of sugar by 36% in four years under the European reform strategy of the sugar sector.  Third, the dismantling of the Multi-Fibre Agreement.  Accordingly, Mauritius has to compete in markets with the big producers such as China, India and Vietnam.  The competitive advantage that Mauritius had in terms of quotas and prices has withered.  There is need therefore to find innovative ways to maintain our share in the global market place.  One way is to produce goods and services that meet international standards.

 

Ladies and Gentlemen,

 

3.      Quality and standards are not empty slogans but prerequisites for market penetration.  In today’s globalised market, entrepreneurs and businesses should in their strategies incorporate the concept of quality and standards with respect to goods and services.  This strategy should prevail irrespective of whether they are meant for the local, regional or global market.  Compliance with environmental standards also goes along this line when it comes to production processes.

 

4.      The world business environment is fast changing.  The globalisation process is nothing less than global competition.  With the opening up of markets, the phasing out of tariff and non-tariff barriers, enterprises would have to compete globally without any safety net to capture their share of business by ensuring compliance with standards, technical regulations and conformity assessment procedures. 

 

Ladies and Gentlemen,

 

5.      In this context, the Mauritius Standards Bureau has a crucial responsibility in the development of our economy by fulfilling the functions of standardization and conformity assessment. Thus, the various certification schemes such as management systems and product certification schemes as well as its testing facilities provide an invaluable tool for ensuring compliance of goods and services.   It will be incumbent on all enterprises to reckon with quality and standards to stay in business or to increase their share of the market. These are the challenges now facing businesses and enterprises in Mauritius.

 

6.      In order to make the MSB more responsive to the evolving needs of the entrepreneurs, we are reviewing the current role and functions of the MSB.  A new organisational structure is being worked out to respond to the new challenges.  Moreover, the different technical laboratories of MSB will be accredited with MAURITAS.

 

Ladies and Gentlemen,

 

7.      The importance of Small and Medium Enterprises in national economies is acknowledged worldwide.  SMEs not only provide the impetus to the world economy but they also contribute heavily to achieving social goals such as employment creation, poverty alleviation, price stability and economies democratisation.  In more developed economies such as Singapore, SMEs account for 90% of the total establishment, 44% of total employment and 16% of direct exports.  Similarly, in Mauritius SMEs account for 40% of employment, 13% of direct exports and 11.5 of GDP.

 

8.      Government is fully committed to the development of SMEs. In line with its vision to create a nation of creative and innovative entrepreneurs, Government is providing an integrated package of measures:

 

First, Outreach Programme – decentralisation of business counselling services to Rose Belle, Flacq and Goodlands.

 

Second, SME registration – streamlining of registration procedures: certificates now issued within two/three days.

 

Third, Caravane de l’Entrepreneuriat – Regions covered so far Panchavati, St.Hilaire/St.Hubert, Valle Pitot and Camp Levieux.

 

Forth, Restructuration of SEHDA – New organisation structure and new legislation.

 

Fifth, New Schemes for SMEs – Support to Start-ups Scheme and Support to High Potential Entrepreneurs.

 

Sixth, Industrial estates for SMEs.- Immediate construction of three low costs industrial estates.

 

Seventh, Investment facilitation – Abolition of all permits and clearances for starting businesses.  Now SMEs can start within three days.

 

Eighth, Empowerment Programme – Total project value of 5 billion over 5 years.  It will also cover training and skilling.

Ninth, Access to Equity Finance  - Provision of equity of Rs 300,000 to Rs 3 million to SMEs.

 

Tenth, Access to Market – Organisation of SMEs fair, establishment of Mauritius Trading Houses in COMESA and SADC region, tourist villages in strategic locations.

 

Ladies and Gentlemen,

 

9.      While saying so, I want to bring home one main argument – Mauritian enterprises small, medium or big – would have – sooner or later – to reckon with the realities of the new world economic order.  Only products meeting international quality and standards would be able to capture markets.   The rules promulgated by the WTO, as you know, lay more and more emphasis on technical requirements such as technical regulations, standards and conformity assessment procedures.   In this context, I appeal to all Mauritian enterprises to reckon with the exigencies of the new market place.  In this regard, MSB must act as a proactive facilitator.

 

Ladies and Gentlemen,

 

10.    In a very near future my Ministry will come up with a number of regulations for controlling the quality of imported electrical accessories and appliances so as to ensure the safety of everyone in the country. 

 

11.    It is a mistaken belief that standardization only benefits big businesses.  International Standards facilitate economic development and the dissemination of technologies that empower small businesses as much as their larger counterparts.    I wish to urge the business community to take advantage of the value added benefit of standards  and to make use of the various services offered by the Mauritius Standards Bureau to position their businesses in the world market.

 

12.    I thank you for your attention and wish all the participants fruitful deliberations. 

 

13.    I have now the pleasure to declare the seminar open.