Oct 2015 Financial News

Planning Minister tells AmChamTT: Private sector has role in T&T’s revival

Oct 07, 2015

Government and the private sector must work together to help revive T&T’s economy, Trade Minister Paula Gopee-Scoon said yesterday.

“Today all governments are looking for ways to stimulate economic growth and the question is whether it is the sole responsibility of the government to stimulate that growth and development. While policy makers may lead the way, it is businesses that are important so that all the dynamics are well understood and investments flow naturally,” she said in her contribution to the American Chamber of Commerce of T&T’s (AmChamTT) Post budget presentation at the Hilton Hotel and Conference Centre.

Gopee-Scoon said while Government must provide a stable environment for economic growth, the country “needs the private sector to invest and be wealth creators.”

She added: “Investor confidence is perhaps the most important in re invigorating the economy, especially in light of the stark economic reality revelations that were made by the Minister of Finance during the budget presentation on Monday.”

Noting that the gross domestic product (GDP) growth in the export sector declined this year, the minister gave examples of how badly the T&T economy had fared over the last few years.

“Total energy exports estimated at US$7.5 billion in 2015 when compared to an annual average of US$12.7 billion in the period 2010 to 2014. In 2015 there was an overall balance of payment deficit and loss of official reserves of US $720 million. At one point in September 2015 the overdraft to the Central Bank was approximately TT $9 billion and it had reached 98 percent of the legal limit,” she said.

Apart from the shortcomings of the last government, Gopee-Scoon said there are structural shortcomings the country must overcome for the economy to revive. These include crime, corruption and low productivity.

AmChamTT president Ravi Suryadevara called for more value for money spent.

“We are faced with the current imperative that public expenditure needs to derive greater value for money spent. The Finance Minister has announced the formation of the General Accounting Office,” he said.

Suryadevara said the country is facing the “shock” of the fall of external commodity prices.

“The common factor is the significant decrease in government revenue, that in 2008 led to a shortfall of $10 billion and at present day an even greater shortfall. Undoubtedly the Government would be considering how this rationalization and prioritization of expenditure affects people, communities and business,” he said.

Source:
Rapheal John-Lall
Trinidad Guardian
Wednesday October 7, 2015

http://www.guardian.co.tt/business/2015-10-07/private-sector-has-role-tt%E2%80%99s-revival