Jul 2010 Financial News

Budget to focus on Clico, food and loans

Jul 29, 2010

An "early" national budget is expected to focus on issues like the near collapse of CL Financial and CLICO, as well as increasing food production and making it easier for entrepreneurs to get loans from banks.

Finance Minister Winston Dookeran said yesterday the Public Sector Investment Programme (PSIP) would need to focus on increasing food production, given the impact of rising food prices on inflation.

A restructuring of the State enterprises sector, including special purpose companies, is also being looked at.

Dookeran was speaking yesterday at a luncheon hosted by the American Chamber of Commerce at the Hyatt Regency Trinidad hotel in Port of Spain.

"The challenges are enormous," and the country needs to shift from an industry-based economy to one that is driven more by human development, he said.

Although baseline trajectories suggest the economy could be disrupted and the State's inherited deficit could increase, Dookeran said there was still some "wiggle room" to rebuild a platform for growth and fiscal consolidation.

Asked about problems contractors faced with getting paid for work on State projects, Dookeran said he recognised that the bills were piling up and that the process to work out payments for them was being addressed.

He said the national budget would be delivered earlier this year but would not give an exact date.

The previous 2009/2010 budget was delivered in Parliament on September 7.

Appointments of directors to State boards is also being addressed now, he added.

Deliberations on how to address CLICO and CL Financial are also ongoing and the State will have to come up with a solution soon, he said, adding that he knew policyholders had been waiting for payments from CLICO for 18 months.

The $2 billion gasoline subsidy may also be addressed shortly in time for the budget.


Source:
Curtis Rampersad
Business Editor
Trinidad Express
Thursday July 29, 2010

http://www.trinidadexpress.com/business/99524504.html