Enill: Parliament will control TT energy dollars

PARLIAMENT will prevent any government of Trinidad and Tobago from squandering the millions of energy dollars now flowing into the Interim Revenue Stabilisation Fund, which will total US$688 million by September 30. In making this announcement yesterday at the 2005 TT Petroleum Conference at the Hilton Trinidad, Junior Finance Minister Conrad Enill also disclosed that by June, Government will bring legislation to Parliament to establish separate tax regimes for oil and natural gas to further ensure that TT’s energy wealth is used for the benefit of the population. Enill said the fund could be vulnerable in its current form and Government’s proposed legislation to establish a Heritage and Stabilisation Fund will “raise the standard of understanding, transparency and accountability on the use of our national petroleum wealth.”

The minister said 60 percent of the fund will be used for stabilisation issues (to ensure Government expenditure is not derailed), 20 percent will be allocated for strategic investments (vital to economic diversification) and the remaining 20 percent will be used for inter-generational equity — to build new financial assets to provide a stream of revenue once energy revenues have been exhausted. Enill said the fund’s assets would be managed by the Central Bank, invested off-shore, integrated into the annual budget process by aligning Government expenditure with a medium-term price of oil and gas, and will be subject to parliamentary oversight. Annual reports on the management of the fund will be laid in Parliament.

The minister indicated that as of September 30, 2004, resources in the fund totalled US$441 million and “on the basis of our current estimates, resources in the fund, including interest and earnings, would amount to US$688 million by September 30, 2005.” Enill said because existing petroleum tax legislation fails to address expansion of the gas sector in TT or in international gas markets and has created a number of anomalies, Government will bring legislation to Parliament in June to “put in place separate regimes for crude oil and natural gas.” Enill also said Government will soon bring legislation to Parliament to operationalise the Green Fund and the amount of monies in that fund was approximately $80 million. He said the fund is currently in an account in the Central Bank accruing interest.