BUDGET STATEMENT 2004 continued...

Reform of the State Enterprises Sector
Over the medium term, we will seek to encourage increased private sector participation in the State sector as well as reduce the dependence of the sector on the Treasury. A restructuring of the Port Authority of Trinidad and Tobago will be undertaken in 2004. The program will include the establishment of strategic units to undertake the operations of the Port relating to infrastructure development, real estate management, cargo handling, cruise shipping, the inter-island ferry service, towage operations and the CARICOM wharves. Mr. Speaker, we shall undertake measures to strengthen corporate governance. The Central Audit Committee of the Ministry of Finance will strengthen its monitoring of the internal operations of all State Agencies to ensure greater transparency and managerial accountability. The Government intends to formulate new By-Laws that each enterprise will be required to adopt. In addition, a Code of Best Practice will be instituted. The deepening of the partnership between the State Enterprises and various communities of Trinidad and Tobago will be a major policy initiative in the reform of the State Enterprise Sector. The recently established Community Improvement Services Limited (CISL) will facilitate building this partnership by undertaking infrastructural development and construction of community facilities on behalf of communities. The National Schools Dietary Services Limited is now fully operational and is expected to address more effectively the nutritional needs of the school population. Additionally, the National Entrepreneurship Development Company Limited will continue to serve as a catalyst in fostering new business initiatives, including small businesses with high earning potential.

Local Government Reform
Mr. Speaker, we view Local Government as an important instrument for deepening the democratic process by widening the participation of the people in the process of governance. We shall take steps to give full effect to the Municipal Corporations Act. During the course of the year, we will undertake a comprehensive review of the system of Local Government to advance the process of decentralisation, to improve management capability in the sector, and to make more effective the delivery of goods and services to our communities. This approach recognises the diversity of Trinidad and Tobago and could lead to an appropriate arrangement for power-sharing in due course.

V STIMULATING THE PRODUCTIVE SECTORS

Mr. Speaker, in the fiercely competitive and uncertain international environment, there is no guarantee of success. There is also no room for complacency. The economy must be in forward gear at all times. All resources must be brought into play and all potential developed to overcome challenges and reap the maximum benefit from opportunities that arise.

Energy
Mr. Speaker, the Government acknowledges that the energy sector will continue to be the principal driver of growth in the economy for some time.
Honourable Members will recall that we approved construction of Atlantic LNG Train IV which has a capacity of 5.2 million tonnes of LNG per annum.
Members will also no doubt be aware of the implications of these developments for Trinidad and Tobago in light of the American Government’s stated policy of making natural gas their preferred fuel.
Additionally, there is the possibility of processing Venezuelan gas in our domestic facilities.
Mr. Speaker, there are also a number of other major developments expected in the energy sector, including -

! Commencement of exploration activity by Exxon in the Soldado
Oil Field;
! Granting of new exploration and production licences;
! Construction of new ammonia and methanol plants;
! Construction of a Gas Refinery aimed at optimizing the production of downstream petrochemicals based on syngas viz: carbon oxides and hydrogen; and
! Initiation of feasibility studies for a gas-to-liquids project and an aluminum smelter in 2004.

A Memorandum of Understanding has already been signed for the establishment of an Aluminum Smelter in Trinidad. Further upgrading of the Pointe a Pierre refinery to improve its competitiveness and future profitability is under consideration. Implementation of a Cross Border Field Development Plan between Trinidad and Tobago and Venezuela is being aggressively pursued, with a Memorandum of Understanding already signed, paving the way for the processing of Venezuelan Gas in Trinidad and Tobago facilities. In keeping with our commitment to CARICOM and the ideals of the Caribbean Single Market and Economy, a feasibility study has been initiated for the construction of the Caribbean gas pipeline previously announced.

Agriculture Sector
Mr. Speaker, this Government has assigned a very high priority to the modernization of the agriculture sector and will immediately introduce new and appropriate technologies, improve infrastructure and generate a wave of new investments in the sector. To facilitate an expansion of the agro-processing sector we propose that an initial allowance of 100 percent be applied to capital expenditure in plant and equipment for approved agro-processing activities. This initiative will be complemented by a reform of the Fiscal Regime for the agriculture sector including the streamlining of existing support arrangements as well as the introduction of tax credits and investment allowances to create a more effective fiscal regime.

The Government will undertake a review of the existing market structure of the Cocoa sub-sector in order to identify specific actions to improve market efficiency, returns to farmers, and promote investment in the sector. We shall improve land management and administration by addressing the issues relating to the leasing, renting, buying and selling of state lands and buildings. This new thrust in the Agricultural  Land Development Programme will include the development of the Agricultural Land Information System and Inventory of State Lands. It will involve the updating of the database of 16,537 parcels of tenanted or occupied state agricultural lands and creation of an inventory of privately owned lands and other state lands used for agriculture. The agricultural infrastructure will be strengthened by the provision of roads, drains, electricity and water to areas of new development for the settlement of new farms, as well as continuation of the access roads programme, and establishment of water management and flood control programmes at Duck Pond, Moruga, Carlsen Field and Depot Road. Mr. Speaker, this year, the Youth Apprenticeship Programme in Agriculture will train 1,000 individuals in the basic programme and 100 graduates in an advanced programme.

Caroni (1975) Limited
Mr. Speaker, in December of last year the Government took the unavoidable decision to restructure the Sugar Industry in Trinidad and Tobago.
In August 2003, Caroni (1975) Limited ceased operations and the voluntary separation package which had been offered to former employees in April took effect. The Government has now incorporated three companies to undertake some of the activities which need to be conducted as a result of the cessation of operations of Caroni.
The Estate Management and Business Company Limited will be responsible for stimulating and facilitating economic activity on the 77,000 acres of land formerly utilized by Caroni (1975) Limited. Approximately 100 acres will be used to establish a Demonstration Organic Farm.
It is anticipated that a significant number of jobs will be created over the next five years through establishment of agricultural estates, heavy and light manufacturing estates, housing projects and commercial complexes. The Estate Management and Business Development Company Limited has already begun reviewing over 6,000 applications from former employees of Caroni for agricultural leases and housing plots.
The Sugar Manufacturing Company Limited has been established to assume responsibility for processing sugarcane and the refining of sugar. This company will purchase cane from farmers and will sell raw and refined sugar on the local market and to the European Community under the Cotonou Agreement.
Rum Distillers Limited will operate the rum distillery formerly owned by Caroni. The Government intends to seek private sector equity participation for this company.
Mr. Speaker, the restructuring of Caroni is intended to play a pivotal role in facilitating the new thrust in agriculture. This will increase the sector’s contribution to the national economy and provide a satisfactory standard of living for agricultural workers. It will do this in a manner that supports sustainable land use. We will therefore pursue the following key strategies:

• Concentrate on the production of crops which satisfy domestic demand or attract high export value, including development of the nation’s aquaculture and horticulture capacity.
• Introduce up-to-date technology in the food processing industry.
• Encourage agricultural research in the use of domestic
products for the agro-processing industry.
• Provide greater support for farmers, fishermen, and aqua culturists through improvements in the physical infrastructure, fiscal incentive regime, marketing and export infrastructure.
• Review and implement policies for encouraging sustainable land use and the preservation of the nation’s forests, wet-lands, watersheds, flora and fauna.
• Increase support for agricultural projects by making agricultural credit more accessible and by the provision of appropriate crop insurance.
• Strengthen and enforce measures aimed at combating praedial larceny.
• Provide appropriate protection for domestic agricultural producers from unfair foreign competition.
• Develop the nation’s inshore and offshore fisheries resources.

Manufacturing Sector
Mr. Speaker, the Government recognizes its obligation to provide the environment that will facilitate the growth of the manufacturing and services sectors. To this end, we are discussing the elements of a trade assistance programme with the Trinidad and Tobago Manufacturers Association. The programme will consider the form of assistance needed by the business sector to improve market penetration into those new markets with favourable bilateral trading agreements with Trinidad and Tobago such as Colombia, Costa Rica, Cuba, the Dominican Republic, and Venezuela.

During fiscal 2004, the Government will continue its quest to position Trinidad and Tobago as the Manufacturing Centre of the Caribbean and the gateway to the Americas. The Standing Committee on Business Development, which is chaired by the Prime Minister, and which includes a combination of Government and private sector interests, will undertake a comprehensive review of the manufacturing and services sectors. This review will cover the institutions and legislation that impact the sector. It will identify the adjustment needs of the business community with a focus on reinventing and re-engineering domestic enterprises to respond to the challenges of globalisation.
The Wallerfield Business Park will commence physical infrastructure development during this fiscal year. The phased development of the eleven hundred acre estate will consist of three clusters:
Academic, Light Manufacturing, and Services.
Four hundred and eighty acres have been allocated for the manufacturing and service sectors to attract investments in areas like medical and electronic device manufacture, light metallurgical products, agro-processing, shared services and tele-services.
The Wallerfield Business Park, Mr. Speaker, will be characterized as a Grade ‘A’ development both in its physical infrastructure, as well as the type of operations situated therein. The business park has been strategically designed to emerge as an innovation and manufacturing center, resulting in new economic growth through technology for Trinidad & Tobago.
Mr. Speaker, to improve further the efficiency of the business environment we shall;

• Amend the Anti-Dumping legislation and enact legislation relating to Fair Trading;
• Strengthen the regulatory oversight of the Bureau of Standards and the Food and Drugs Department;
• Enhance the efficiency of the Customs & Excise Division through further computerisation and improvement in facilities and physical accommodation.

Small Business
Mr Speaker, small business will continue to be a major driver of economic activity and employment generation. A primary objective in the coming year will be easier accessibility to financing for the small and medium enterprise sector. We shall be approaching the international lending agencies for a low interest rate line of credit to  provide financing for small business.

Information and Communication Technology (ICT)
Mr. Speaker, the Information and Communication Technology Sector is critical to the modernization of Trinidad and Tobago and to improving our competitiveness in the international market place. The Government will therefore continue to facilitate the development of information technologies, telecommunications and internet infrastructures in Trinidad and Tobago. A National Information and Communication Technology Plan has been formulated. National Connectivity will be the main thrust of this plan to connect people, communities, business, government and educational institutions through an integrated technology network. This will maximize the potential of all our citizens and accelerate the development of a knowledge-based society. We will finalise the National Broadband Policy and supporting infrastructure which will determine the specific measures needed to bring high-speed access to individuals, schools and communities. The Government, through the Central Statistical Office, will develop an ICT Statistical Management Information System to strengthen the institutional capacity of that agency. Special emphasis will be placed on assisting the small business sector in employing e-Commerce technology in the modernization of its operations.

Infrastructure
Mr. Speaker, an important factor impacting the economy and the quality of life in Trinidad and Tobago is the state of the country’s infrastructure. Priority is therefore being given to expanding the nation’s highways, improving drainage, providing an efficient sea transport system between Trinidad and Tobago, and the construction, maintenance and restoration of public buildings. The Trunk Roads Expansion programme will continue with the extension of the Churchill Roosevelt Highway to Wallerfield beginning in 2004 and the Solomon Hochoy Highway to Point Fortin which is carded to begin in 2005. In the coming year, we will begin construction of the Mamoral Dam and Reservoir Project, which is expected to alleviate flooding in Brasso Caparo, Mamoral, Palmiste, Longdenville, Chaguanas and surrounding areas. We shall also upgrade drainage works on the following rivers: Marabella, Caroni, Cipero, Vistabella, North Oropuche and Richplain Ravine. Coastal protection works will be undertaken at Manzanilla/Mayaro. Restoration works on the President’s Residence and Office, Queen’s Royal College, Holy Trinity Cathedral and the associated Deanery, Mille Fleurs and Stollmeyer’s Castle will begin over the next two years. A significant project to be undertaken by the Port Authority of Trinidad and Tobago is the reconstruction of Berth 7, with major investments in cargo handling equipment. On completion the Port of Port-of- Spain will emerge as a truly modern and competitive facility.

Transportation
Mr. Speaker, this month, we will begin a comprehensive national transportation study which will focus on all modes of transport and will provide the basis for our investment programme in the transportation infrastructure over the next twenty (20) years. We intend to acquire a new passenger ferry to service the inter-island route. Additionally, we will upgrade passenger accommodation at the ports of Port of Spain and Scarborough. Air transport will also be significantly upgraded with the rehabilitation of the runways at Crown Point and Piarco, and the acquisition of a new navigational aid system for the Civil Aviation Authority. In our effort to modernize the operations of the Transport Division, we will implement a new Permits and Vehicle Registration Information System over the next two years. Mr. Speaker, the Government finds the number of vehicular accidents and loss of lives on the nation’s roads totally unacceptable. To help improve safety, we will bring to Parliament legislation to introduce the use of the Breathalyser. Breaches of the legislation will carry severe penalties. Consideration is also being given to the introduction of the Points System.

Culture
Mr. Speaker, this Government is committed to the enrichment of our unique culture which, if properly managed, could be a major asset for the social and economic development of Trinidad and Tobago. We shall strengthen partnerships with community based organizations and non-governmental organizations in this sector, in particular umbrella organizations in the cultural field. We will introduce Initiatives to strengthen institutions, implement support systems and encourage the development of the creative arts. The Government will develop a Strategic Plan for the development of culture and the creative arts. A mobile pan institute will be opened and a complementary pan ensemble project will be launched for the development of the steelband. The Academy of the Performing Arts will also be established.

VI PRIORITIES FOR TRINIDAD AND TOBAGO

Mr. Speaker, this Government has given priority to the empowerment of the disadvantaged groups in our society, including the liberation of those who appear to be trapped in a state of chronic underdevelopment. This is the challenge facing Trinidad and Tobago and this is what this Government and this Budget are all about. This is our primary responsibility and is at the heart of our goal to make Trinidad and Tobago a developed nation by 2020.

Education
Mr. Speaker, Education continues to be our major instrument for social transformation and development in Trinidad and Tobago. We must create a comprehensive modern educational system that is able to provide training and knowledge as well as foster skills and aptitudes relevant to the development needs of Trinidad and Tobago. In this regard, preschool, primary and secondary level institutions will be strengthened to accommodate a stronger foundation for the development of scientific and technical skills and to prepare students for continuous learning. We propose to establish a National Curriculum Council as well as a Teacher Professional Development programme to improve teacher training and skills. We shall expand the loan system for books in key subjects to students entering Forms One and Two in all public and private Secondary Schools.

Government will also provide a $1,000 Book Grant to each child in Forms Three to Lower Six of all secondary schools. Approximately 53,000 students will benefit from the programme.
We shall introduce the Caribbean Advanced Proficiency Examination (CAPE) in secondary schools from the new academic year on a phased basis. We will continue the de-shifting of Junior Secondary Schools and their conversion to full-time institutions. The School Feeding Programme will be expanded to provide 90,000 fully subsidized lunches daily as well as 25,000 breakfast meals five days a week. A cafeteria-style service will be introduced in a number of schools throughout the country. Mr. Speaker, we will also expand the school transport service. The PTSC will provide 20,000 seats per day at a cost of $20 million annually, while 200 maxi taxis will be engaged to provide transport for 21,500 school children in rural areas also at a cost of $20 million annually. Bus transportation will soon be provided for differently-abled school children. We shall also expand several school intervention strategies to address the high level of school violence and foster a “culture of peace and civility in the classroom.” An additional twenty-eight (28) high-risk secondary schools are to be provided with repairs to perimeter fences and security lighting at a cost of $25 million this year.

Mr. Speaker, the University of Trinidad and Tobago is now scheduled to begin in September 2004 even though construction of the main campus will not be completed by then. The main campus of the new university will be located at Wallerfield and will comprise a School of Engineering, a School of Science, a School of Applied Arts, and a School of Humanities. There will also be a campus located in Tobago.

Universal Pre-School Education
Mr, Speaker, in keeping with our holistic approach to education we have developed a plan to achieve universal pre-school education before the end of this decade and we are now committing this country to the achievement of this objective. This will place Trinidad and Tobago among the very few nations of the world to have achieved this. It is further evidence of the importance that we place on the education of our nation’s children. Towards this end, we shall build a total of 200 Centres over the next four years throughout the country, and train the teachers required for this very special task. To encourage the private sector to participate in this effort we will devise an appropriate package of incentives to companies providing Early Childhood Care Centres and similar facilities for the benefit of their employees.

Health
Mr. Speaker, the Government remains committed to improving the quality of health services available to the nation. A National Health Policy is being formulated to articulate clearly the scope and coverage of public health services and to examine the public/private mix for more effective and efficient provision of integrated health services to the public. Health Quality Legislation, prescribing proper standards for the quality of health care in our public and private health sector, will be enacted in 2004. The Government has committed to complete the Reform of the Health Sector within the next 3 years, and to inject TT$500 million in additional funding into the development programme of the Ministry of Health over the period 2004 to 2006, so that the original health sector reform objectives can be achieved. Forty (40) brand new fully-equipped right-hand-drive ambulances will be acquired early in 2004.
Magnetic Resonance Imaging (MRI) and CT-Scan equipment will also arrive in the country, together with new X-Ray machines for all of our public hospitals, including five (5) mammography machines, and a significant number of much-needed basic and sophisticated diagnostic imaging devices.

Reform of the management systems in the RHA’s is programmed for implementation in 2004. The Ministry of Health is also in the process of conducting a Health Needs Assessment to gather accurate data on the health conditions and health priorities for the country Construction is expected to begin during this year on the National Oncology Centre at the Eric Williams Medical Sciences Complex, and the St. James District Health Facility and the Point Fortin District Hospital. An additional eighteen (18) Health Centres as well as six (6) District Health Facilities will also be upgraded during 2004. Substantial improvements will be made to the Port of Spain General Hospital, the San Fernando General Hospital, the St. Ann’s Hospital, the St. James Infirmary, the Sangre Grande District Hospital and several other health facilities. We shall continue to provide relief for persons over the age of 60 and recipients of disability assistance, who suffer from hypertension, diabetes, glaucoma and cardiac disease, through the Chronic Diseases Assistance Programme (CDAP). In 2004, this Programme will be expanded to include a wider range of free medication catering for diseases such as arthritis, asthma and depression, among others.

A new National Mental Health Programme will also be implemented in 2004, with the assistance of Dalhousie University. In addition to these initiatives and the Government’s concern regarding the affordability of health care, we will accelerate our review of the National Health Insurance System with a view to early implementation. Further, Mr. Speaker, the Government is implementing our National Strategic Plan for HIV/AIDS and an integral part of the plan is the establishment of the National Aids Coordinating Committee which will be formally launched by the end of this month. This Committee, which is supported by a Technical Secretariat, will provide effective oversight for implementation of the national response. It is expected that the Secretariat will administer loan resources of US$20 million from the World Bank. These resources will be utilized to promote behavioural change, particularly among high-risk groups, enhance the physical facilities for the delivery of care and treatment, and strengthen the institutional arrangements for the assault on HIV/AIDS. The Government is also currently in discussions with the European Union for further resources to be used in the fight against

HIV
We shall also expand access to anti-retroviral therapy by establishing treatment centres throughout the country and expanding the coverage of the Prevention of Mother to Child Transmission Programme. We shall also improve testing capacity, clinical interventions, and behavioural modification and provide additional care and support by facilitating access to Anti-Retroviral Treatment, treatment for opportunistic infections, and home care

Housing
Mr. Speaker, I will now address the issue of housing. This Government is committed to alleviating expeditiously the acute housing shortage in the country, particularly among the low and lower-middle income groups.
We are in the process of implementing a National Housing Policy geared towards:

• providing affordable and accessible housing;
• creating sustainable settlements and communities;
• encouraging private sector participation in the provision of housing;
• eliminating the marginalisation and discrimination of the physically and mentally challenged; and
• households headed by single women.

In this new housing policy, the NHA will be re-organised and its new role will be that of property management and maintenance of its housing estates. Except for the vesting of lands for housing, the NHA would not be directly involved in the development and delivery of houses. These functions would be shifted to a new company. On the issue of Regularization of Tenure, the Government will improve the living conditions in regularized settlements through a programme of aided self-help; will streamline the programme of providing Deeds of Lease on public lands; develop a holistic community-based approach to squatter regularization; and forge partnerships between community groups and non-governmental organizations such as FEEL, and HABITAT for Humanity to assist in the upgrading of squatter settlements.
Mr. Speaker, the Urban Development Corporation of Trinidad and Tobago shall embark on a programme of Urban Renewal to improve the quality of life in low and middle-income residential areas. This process has already started in Port of Spain. The San Fernando
Development Programme will begin next year and phased over a three year period. This will include

• Harris Promenade Development
• Naparima Bowl Refurbishment and Upgrade
• Chancery lane Complex
• San Fernando Transit Hub;
• a Waterfront Redevelopment and Expansion.

The next phase will involve development in Chaguanas, Arima and Point Fortin. We will introduce a rent to own programme and develop a standardized mortgage deed to facilitate and assist home ownership. We shall commence our programme of financing low cost housing by providing a subsidy of $36,000 to beneficiaries with an annual household income of $12,000 to $27,000, and a subsidy of $24,000 to beneficiaries whose annual household incomes are between $27,001 to $44,000, for the construction or purchase of a new house.