UNC Senator warns about bursting housing bubble

Speaking in the Senate on the Variation of Appropriation Bill, UNC Senator Carolyn Seepersad-Bachan also stated that Government expenditure pattern was helping to fuel criminal activity.

She said Government spending was providing no lasting and serious jobs, but was only supporting high levels of consumerism which in turn was driving crime. "And the $3 billion more (Government is going to spend in this Variation of Appropriation Bill) is doing nothing more than assisting us down that path," she said.

She lamented that TT, which had an international reputation as an "economic tiger in a sea of pussycats," was now considered "an economic kitten riding a tiger called crime."

She said Government expenditure was not increasing output and productivity, only creating demand and inflation.

Seepersad-Bachan also wondered if the funds of financial institutions, "depositors funds," were being used to subsidise the high level of consumerism which could not be maintained. "I wonder if in years to come we will see another major shut down (of the financial sector). Saying she was not sure if credit standards were being adhered to in the financial institutions, she warned that another Trade Confirmers/South West Atlantic scenario was looming on the horizon.

Referring to the $20 million allocation to National Quarries, Seepersad-Bachan criticised the absence of quarrying regulations and Government’s policy of granting licences to persons without competitive tender, in breach of the Mineral Act of 2000.

"Why has the minister not brought the quarrying regulations and allowed illegal quarrying in Valencia by a group attached to a terrorist group?" she asked.

She said under the Mineral Act, a report had to come to Parliament within six months citing the reasons, whenever a licence was granted without tender. However, she stated, for the last three and a half years, Government had been flouting the law and awarding licences without tender or explanation. "I wonder where is the Director of Public Prosecutions in all this?" asked Seepersad-Bachan. She wanted to know who granted a quarrying licence to the Estate Management and Development Company. Seepersad-Bachan said the only time National Quarries ever made money was under the UNC. She said the Minister of Energy, who had a lot of allegations of corruption hanging over him, was silent in all of this.

On the issue of BWIA, Seepersad-Bachan asked whether some of the allocation under the bill was going to subsidise the losing routes of Cuba, Costa Rica and Dominican Republic. She said Government’s attempt to get FTAA votes had led it to "burn money" supporting these routes, which it now had to abandon.

Noting that under the UNC the country got an unprecedented US $5 billion in investment and had a high global competitiveness ranking, Seepersad-Bachan said this country’s only claim to fame now was to have a defence attorney in a Florida court stating that his client who had been charged for gun-running and heroin, had helped the Government get into power.

She also criticised the establishment of new companies which would cost a lot of money because Government had to pay management, provide space, vehicles, pay NIS.

A WARNING FINGER: UNC Senator Carolyn Seepersad-Bachan in the Senate yesterday. Photo by Suresh Cholai.