Peter Ganteaume Chief Executive Officer, Guardian Holdings Limited is pleased to announce the appointment of a new General Manager, Risk Management Services Limited, a member of the Guardian Holdings Group. He is Christian Low. A past student of Trinity College, Port-of-Spain, Christian Low has had extensive experience in the broking industry having started his career in 1976. Since then he has worked in the United Kingdom market handling the industrial account for a leading insurance company for five years. Christian has made many strides since his employment 13 years ago with RMS. He was appointed a Director in 1999. His administrative mandate included the overall responsibility for “Servicing Business Units,” in addition to maintaining the responsibility for account handling of specific key clients. His role also included acting as corporate resource to the multi-national team in the area of international marketing and claims support services. GHL former Risk Manager was Paul Traboulay.

For years, WITCO dominated the local cigarette market.That may soon change. With the introduction of international brand Marlboro, WITCO faces some stiff competition. The company has thus far been able to fend off the competition.  Craven A tried and failed. Marlboro is the flagship brand of Philip Morris International and was introduced to the local market last month. WITCO is a division of British American Tobacco (BAT). WITCO’s managing director, Anthony Phillip said his company “was and is not afraid of competition and has never been.” He said he expected Philip Morris to comply with the International Marketing Standards it signed with BAT and Japan Tobacco.He is confident though that WITCO’s brands can stand up against any Philip Morris product. Sources say that WITCO is putting together a strategy to counter Marlboro’s foray into the market. Estuardo Ortiz, Caribbean Business Unit director, Marlboro is equally confident about his brand. At the recent launch of Marlboro to the TT market, Ortiz said he believes that the brand can become the number one selling brand in TT. “We are here for the long term and are always looking for trends and opportunities,” he said. Ortiz said TT is a cigarette market with lots of potential and citizens should have a choice. “We intend to comply with the local and international standards,” he said.     

Nevertheless, both WITCO and Philip Morris now face an uphill climb. There is  the threat of litigation from smokers and the Trinidad and Tobago Cancer Society who continues to snipe at WITCO. Health Minister Colm Imbert recently announced that legislation is currently being drafted by his Ministry which will ensure that foreign tobacco companies do not use TT as a refuge from the global anti-tobacco movement. Imbert said because these companies are getting so much pressure from the anti-tobacco movement and are being pushed out from first world nations like the United States and Canada, they are now turning their attention to third world nations. It is why, he said,  TT and 99 other nations signed an international convention against tobacco at the World Health Assembly which was held last May/June in Geneva. The proposed legislation will ban tobacco ads, the sale of tobacco to minors and institute strict controls regarding the use of tobacco. He said the arguments from these companies regarding the sale of tobacco is hardly convincing when one considers the attached health risks.

“It is poison,” he said in a recent interview. While Imbert is putting pressure on foreign tobacco companies, the Cancer Society led by George Laquis is redoubling its efforts. It has called on the country’s leading sportsmen, women and officials to boycott all future sports awards sponsored by the West Indian Tobacco Sports Foundation. This is the second time that Dr Laquis has tried to gain support for his cause against WITCO. In 1999, the Cancer Society embarked on a campaign to raise $1 million to file a class action suit against WITCO, however, after six months, it was only able to raise $30,000. The Rotary Club of San Juan contributed $10,000 while Emile Elias and Company donated $20,000. Dr Laquis eventually returned the money and wrote the sponsors a letter thanking them for their support. He also wrote a letter to the then Minister of Health, Hamza Rafeeq to join the battle against the tobacco industry. Dr Laquis also voiced his disappointment at Ansa McAl’s decision to enter the tobacco market by introducing Marlboro. He chastised the group for openly advertising Marlboro cigarettes. In defending its, Ansa McAl says its moveis a viable business opportunity. At a recent meeting to announce the Group’s half year profits, questions and concerns were raised by local stockbrokers as to why Ansa McAl would even consider getting into such a market when they know that it poses such a health risk.

Chairman and Chief Executive Officer (CEO) Ansa McAl Norman Sabga said while they were aware of the risks involved in cigarette smoking, many people chose to do it anyway. He said there is a very lucrative market for cigarettes in TT and they wanted to give people a choice. He said he believed that such a move will enhance the group’s overall profits. But Laquis disagrees. “It is indeed a sad day when a conglomerate such as Ansa McAl decides to shed its good corporate image, an image which they have worked so hard to build, to move into the cigarette industry.” He continued: “With all the facts about the scourge of cigarette smoking at its disposal, with the developed countries daily tightening the noose around the necks of the cigarette manufacturers, with millions around the world expected to die over the next few years from cigarette- caused lung cancer, Ansa McAl’s decision fascinates me.” Dr Laquis said he hoped good sense would prevail and the company’s directors in their infinite wisdom will reverse their decision and get out of the business. “We at the Cancer Society are very concerned that the day may very well come when the Ansa McAl Group rues its decision.” WITCO’s spokesperson, Keith Carter said this is not the first time that Dr Laquis has tried to gain support for his cause by trying to tarnish WITCO’s reputation.

He said Dr Laquis has tried before to get local sportsmen and women to stop supporting the West Indian Tobacco Sports Awards. He said it is very unfortunate that Dr Laquis takes such a position against WITCO. “It was and still is our view that right thinking individuals who examine our behaviour as a corporate citizen and the significant contribution we have made to society over the many years, would find it difficult to accept any attempts to demonise the company.” Carter noted that, it is WITCO’s view that along with the pleasures of cigarette smoking, come real risks of serious diseases such as lung cancer and respiratory and heart disease. He added that the company also recognises that for many people, smoking is difficult to quit. He said the company has employed and supports several programmes which will prevent and reduce smoking especially among teenagers. Two years ago, WITCO launched an under-age smoking prevention programme. The programme took approximately 18 months to develop and was launched at two levels, a retailer access programme and a media campaign.

The retailer campaign, the pilot for which was being conducted in key supermarket chains, consists of warning posters in the outlets, informing them that there is a penalty for selling cigarettes to minors. The company also placed campaign stickers on all their cigarette dispensers and a brochure entitled: Tips on Talking to Your Kids about Not Smoking. On its website, Philip Morris said it also has an important role to play in preventing youth smoking. “We have a dedicated Youth Smoking Prevention department that supports youth programmes, produces advertising for parents and conducts ongoing research, all with the sole purpose of helping to prevent youth smoking.” But Dr Laquis chastised WITCO for its “anti-smoking campaigns” saying that is was a “big joke.” He explained that while WITCO tries to prevent smoking on one hand, it is also encouraging both teenagers and adults to smoke with their press and television ads. The same goes for Marlboro. “Those ads are portraying young and sexy people who are smoking. It makes you look good. If you want to be a He-man or glamorous woman you have to smoke. That is what these ads are saying,” he argued. “Tobacco companies target the illegal smoker, those under the age of 18. That is their biggest market. They do not target older people.”

Carter reiterated that WITCO does not want children to smoke and as such its advertising campaign is targetted to minors. He said research has shown that the major causes of smoking by minors include peer pressure, personal problems and adult smokers in the household. He noted that WITCO’s advertising is governed by a specific bureau of standards called Advertising Standard Regulations for Tobacco. “We go beyond this regulation with our own voluntary advertising code, which is more stringent than the legal requirements of the advertising regulations. For instance we do not advertise on television before 9 pm and the models used in our ads are over 25 years of age. Billboards are not placed less than 100 metres from schools.” “I hope people competing against us respect how we market in TT and behave accordingly. On advertising codes, Phillip said that he expects Phillip Morris to comply just as WITCO does.

Philip Morris said, “we have our own internal responsible marketing standards that govern our advertising, marketing and promotional practices.
Our marketing programmes are designed to enhance brand awareness, recognition and loyalty among adult smokers, while honouring the company’s commitment to responsible marketing.” “Smoking kills people and we continue to lose talent in the workplace. How can you be a good corporate citizen while you kill people and destroy society ?” Laquis said. On the US lawsuits, Laquis said it will show the local and international cigarette companies that people are paying more attention to their health and that the industry should back down. On the question of lawsuits against WITCO, Carter said, “The US, as you are aware is a very litigious society. “The solutions being applied to deal with smoking and health issues in the US are being conducted in a unique justice system, which we believe is not applicable to TT.” He said WITCO is quite aware that the threat of litigation is ever present and noted that should it come to pass, the company will vigorously defend its right to conduct its business. 

 

Q. We bought a house 5 years ago and the mortgage payment is $3,000 a month. My husband has just lost his job. There’s no way my salary alone can meet the mortgage. How can we hold onto our home?

Martha, Chaguanas

A: Don’t lose hope. Remember to immediately advise the bank, or financial institution holding your mortgage, of your husband’s situation. Here are a few strategies you can apply that may help.
1. Negotiate with the bank to spread your mortgage over a longer period. This would reduce the monthly installment
2. If rates in the market have fallen (as is currently the case), arrange to refinance the mortgage at a lower rate in order to reduce the interest cost
3. Negotiate a moratorium on principal payments i.e. pay interest only for a period of time in order to reduce the monthly installment
4. Draw down on your savings to help pay the installment. It is in circumstances like these that one sees the real value of savings.
5. If the real estate market is buoyant, consider renting some rooms in your house. The extra income from the rent will help to pay the mortgage.
Any one or even a combination of these measures can buy you some time while your husband looks for another job.

Q. I have heard it said that time reduces the risk involved in investment. What does that mean and what length of time is required to cut the risk?

Hollis, Santa Cruz

A: There is a concept in finance known as the “Time Diversification of Risk” and it refers to investments in the stock market.
We know that the prices of stocks go up and down in a seesaw fashion. So it’s possible for one to lose part of the money invested while it is also quite possible to gain a lot.
Nevertheless, in a growing economy the prices of stocks over the long term would be moving up. Even in the midst of that upward movement there could be short-term reductions in prices. But over the long haul, the investment should yield a positive return.
Therefore, the longer the time period — the lower is the risk that the investment return would be negative. That’s why it’s advisable to put money in the stock market which you do not need immediately and which you can lock up for a few years. Even for those clients that have invested in stocks or funds that have fallen in value, it is better to hold on because if the company’s fundamentals are strong there is a possibility that the prices could go back up.
Time is all that is needed to make the difference between a positive or negative return. The length of time would vary from market to market and is related to the length of the economic cycle of the country.

Q. I want to get start investing directly in the stock market. How much money do I need to get the ball rolling?

Sat, Freeport

A: It depends on the broker. Most have minimum transaction sizes, but the average would be about $500. If you have a small amount, there are shares on the market which have low prices and so are quite affordable. A positive feature of these relatively low priced shares is that for a given dollar value growth in the stock price, the percentage return on capital is much higher than a higher priced share. So if you have a small amount of cash to start with that does not prevent you from being able to benefit from the high returns on the stock market. The process is simple. Just walk in with picture identification to a stockbroker’s office. You sign a share purchase form for the number of shares you want in a particular company at the price you would like to buy it at. Then most brokers would ask for some type of down payment, which averages about 10% of the transaction cost.
When the broker obtains the shares on the exchange you would be contacted, after which you would go into the office seven days after to pay the other 90% of the purchase price. At that point you would be presented with a transaction ticket, which is proof of purchase. This is held until your certificate is delivered which would take about six to eight weeks. Or you can arrange to deposit the shares into the Trinidad & Tobago Central Depository, which is an electronic exchange from which you can easily sell your shares and hold for safekeeping.

Questions can be sent to PO Box 1830, Wrightson Road, Port-of-SpainE-mail : cmmbsecurities@my cmmb.com

ONE positive development of the failed world trade talks at Cancun is the emergence of developing countries as a united front to offset the traditional dominance of the wealthier block of nations. Looking back, in fact, the confrontation at Cancun seems almost inevitable in light of the determined reluctance of First World countries, mostly the United States and European Union states, to deal adequately with the major issue holding up another round of  multi-lateral trade agreements, that is the massive subsidies and export incentives they award their farmers, to the detriment of Third World producers.

This has been a standing grievance of developing countries for most of the three decades since the World Trade Organisation was launched, and the progress made in other areas had eventually brought it at the top of the agenda for the Cancun deliberations. Hopes of a settlement of this burning issue, however, were dashed when it became clear that the developed countries were still not prepared to make the kind of subsidy-cutting adjustments that would give farmers in developing countries a decent chance to compete. Indeed, true to their pattern of WTO dominance, the rich countries sought to sideline the farming issue by demanding instead negotiations on expanding the WTO rules aimed at protecting foreign investment and cutting out red tape and corruption in trading transactions.

This time, however, it seems the WTO chieftains did not bargain for the convergence of interest and strength among the poorer member countries born out of the long period of frustration and pressure experienced by their farmers. The First World countries clashed with a new Third World block, the so-called G21 grouping representing more than half of the world’s population and some two-thirds of its farmers. The G21 states are united by their common commitment to getting the West to unwind subsidies running at nearly $1 billion a day. In the end, the G21’s new found influence was not put to the test as the WTO insistence on dealing with its new rules led to the total collapse of the Cancun meeting.

Inspite of the failure of the round, there was no mistaking the fact that something critical and vital  had happened at the Mexican resort. Australian Trade Minister Mark Vaile, whose country shares many of the Group’s criticisms of the EU and the United States, noted that emergence of the G21 marked “a significant shift in the dynamic” of the WTO. Brazil’s Foreign Minister Celso Amorim observed:” It was not possible to get a concrete result. But we think we have achieved some important things. Firstly, the respect for our group.” The Confederation of Indian Industry, a top business lobby, declared that the confrontation at Cancun had changed the shape of trade negotiations. “These will never be the same again,” a spokesman said. “The developing countries are now a force to be reckoned with.”

It seems unfortunate, yet perhaps necessary, that the “showdown” at Cancun should have ended this way. We agree entirely with the proposition that, in this case, no deal was better than a bad deal. Where do the world trade talks go from here? We can only hope that the wealthier countries, which have had their way in the WTO since its inception, will now adjust themselves to the need to deal seriously with the united force of the developing world. It would be foolhardy and counter productive for them to retreat from the free trade movement as they cannot afford to ignore the vast majority of the planet’s population. The global economy can only grow when trade is free among all the world’s countries. So it’s back to the WTO headquarters in Geneva where the search for a deal must continue.
 

Internationally, there is growing distrust with individuals and organisations in public life directed particularly at familiar institutions and office holders. Britain, like several other countries, is in the grip of what many claim is a deepening crisis of trust directed at its most familiar institutions and office-holders and many accusations of betrayal are routinely levelled at politicians, officials, hospitals, examination boards, companies and schools. Consumers do not trust businesses, especially big businesses, or their products. People appear not to trust each other. In Britain, Brian Groom asserted an emerging picture of a “surly, self-centred society in which citizens are suspicious of their neighbours, their colleagues, those who provide them with goods and services and those who govern them.” Lord Hurd, former British Foreign Secretary, felt the lack of trust made it more difficult to achieve anything in Britain. He commented: “The idea used to be that if you were a headmaster, you knew something about running a school and you were trusted to do that. Now governments or councils set targets and ask all sorts of questions and the moment anything goes wrong the media pounce on you. All this makes jobs more difficult and less attractive.”

Here, regular BWIA customers felt their trust in the company had been abused recently when the electrical blackout in several parts of the USA led to their being stranded at Piarco airport. Similarly, in Britain recently, British Airways customers felt their trust was abused when strikes by check-in staff left them stranded. Lack of trust in each other is increasingly evident here. The upsurge of crime in Trinidad and Tobago has led to a decline in the number of motorcar owners who previously offered a lift to complete strangers awaiting public transportation. Even mothers accompanied by small children are now denied this trust being regarded as possible foils for criminal activity. Neighbourhood Watch Groups regard non-inhabitants of the area seen in their districts as potential criminals, although they may be innocently in search of a friend’s home or perhaps employment in what they regard as a more prosperous neighbourhood. Service personnel suffer a similar fate. Homeowners demand identity cards from health and other service personnel and after viewing them still suspect these workers of surveying the surroundings with an intention to return with accomplices at nightfall on more devious missions.

Lack of trust in the ability of the police authorities to solve crimes of kidnapping, related murder and theft has contributed to change in behaviour.
Businessmen seek licensed firearms as a measure of personal protection and surveillance cameras have become a desirable feature in most business places. Many families keep their young children at home rather than allow them to play with neighbourhood children lest they be snatched by criminals and placed in a stolen kidnap vehicle. Parents who previously allowed their children to find their way home from school now ensure paid transport via school and home, to soften the possibility of their children becoming kidnap victims. Michael Jacobs, general secretary of the Fabian Society, a Labour think-tank in Britain, says: “There has been a decline in blind trust, which was like deference. The automatic reflex of trust in institutions and people in authority has gone.” He says: “We are more sceptical, which is not a bad thing.” We need more “evidenced-based trust,” which institutions have to earn by their behaviour.

Mori, a United Kingdom polling organisation, conducts an annual survey of whether members of professions can be trusted to tell the truth. Doctors (91%), teachers (87%), professors (74%), and judges (72%) generally emerge at the bottom, ranging from 18-28%. Trust in clergymen and priests has fallen, while trust in civil servants and trade union officials has risen sharply. Trust in individuals with whom people have most contact such as front-line staff is often higher than in organisations. The survey also asked which institutions were trusted. The top four were the army (82%), television (71%), police (65%), and radio (55%). At the bottom of the scale were political parties (16%), the press (20%), and big companies (22%).
It will be interesting to know what would be the respective rankings in Trinidad and Tobago.

In this country, The Employee Benchmark survey conducted over the last three years by local consultancy firm Quality Consultants Ltd examined multi-national and local energy sector companies. Participants included Atlantic LNG, British Gas, Phoenix Park Gas Processors Ltd, Powergen, Algico, First Citizens Bank, RBTT Ltd, National Flour Mills, TIDCO and UWI. Results showed that employees of some of this country’s largest businesses have a serious mistrust of their employers. Encouragingly, Dr Kwame Charles Director of Quality Services advised that all organisations which took part in the 2001 survey improved their 2000 performance. Employees were seeking among other things, respect and simple courtesies like being bid the time of day by managers.
(To be continued next week)

The views expressed in this column are not necessarily those of Guardian Life. You are invited to send your comments to guardianlife @gh.co.tt

Last week we looked at what financial choices are available to retirees and levels of care that need to be considered. The next level of care is called the assisted living facility. In these facilities, residents get additional housekeeping services, receive assistance with managing their medications, and usually get help with bathing, grooming and dressing. Many also provide group activities for the residents. Assisted living facilities have complicated fee structures based on the level of care you need. Monthly bills average between $3,000 and $5,000 per month. Lastly, nursing homes are for individuals whose disability requires regular skilled nursing care. For most people and their families, these facilities are the option of last resort. Their costs are high, usually averaging about $200 per day or $6,000 per month and can go as high as $10,000 per month.

Other housing options are also available for seniors. There are group homes, which provide independent, private living but in a house shared with several seniors who split the rent, housekeeping services, utilities, and meals. Some homeowners who want to share their house with others offer shared housing. Many times the homeowner is a widow or widower who is looking for companionship as well as for someone to help with. I’m sure you’ve figured out by now that choosing a retirement location requires a lot of research. Your flexibility during retirement increases in communities that provide greater choice of living options for seniors. Making the right choice up front can not only save you a lot of money but will also prevent you having to move a great distance as your needs change or if you find out you just hate the place you chose.

Retirement Stages
As we’ve talked about the different types of living arrangements and health-care needs, I’m sure you’ve begun to realise that your life in retirement will not be one long stage in which all your needs will remain exactly the same. Planners have found that, in general, there are actually three stages of retirement.

1. Active Stage.  This is the time you really get to enjoy all the money you so carefully socked away. Your health will be in good shape and you’ll be able to travel and do things you dreamed about. Living costs will probably be nearly the same as they were when you were working.
2. Passive Stage. During this stage, you will find that you need to slow down, but will still be healthy enough to remain independent and in your own home. Living costs will probably be the cheapest in this stage because your medical bills will not be that high and your travel, transportation, clothing, and entertainment costs will probably decrease.
3. Dependent Stage. Unless you are one of the lucky few, you will get to a stage of your life where you are dependent on others in order to meet your daily needs of life. You may even need to move to a facility that can offer you more intensive care.
Living costs in this stage can sometimes be the highest because of your need for the services of skilled nursing care.

Travel and Leisure Goals
Now we’ll move on to the fun stuff! I hope all this talk of varying living needs hasn’t been too depressing. Unfortunately, they are the realities of the retirement phase of life.
Hopefully, you will have entered retirement without having to work full time to make ends meet and with enough money to do the things you never had time for while you were working. If you have, the possibilities are limited only by your imagination and what you want to do with your time. Let’s revisit the dream list you created at the start. How many of those items fit in the category of travel and leisure goals?
In addition to the goals you have already identified, retirement can be a time to learn new things, try things you’ve never tried before and it can also be a time during which you strive to grow spiritually. Don’t get too rigid about your dreams and forget to enjoy things that just happen to come your way.
Continued next week

When it was announced that a delegation of about 45 Indian businessmen and women were coming to TT to showcase their goods at an exhibition at the Divali Nagar, it raised the hackles of the Indian Importers Association of TT. Such a mission, said the local shop owners, comprised of about 25 Indian shops (which include Preetanjali’s, Maharaja and Miss India) would  compete with them and place them at a disadvantage. Many of the Indian businessmen were optimistic that they would have several partnerships with many local businesses, which, they say, are interested in retailing their goods. The 40-member Indian trade mission, which arrived in TT on September 5 and left on Monday, were  retailing a diverse range of goods,  including costume jewelry, ethnic wear, furniture, kitchenware, musical and religious items among other things. But members of the trade mission were not bothered or even threatened by the local businessmen.

Veena Bajaj, owner of Eternity Inc, a company which specialises in handcrafted ethnic garments and leather goods in New Delhi, said she is not at all threatened by the local businessmen. She said she was just here to survey the local market and see what prospects were available to her.
“We always travel to different countries around the world, but this is really my first visit to TT and I am quite pleased with what I saw.” Bajaj said TT has a very “flourishing market” and thinks that see can make a “good name” here for herself. “I am really here to introduce myself to the market. I think that I can get a good name here.” Eternity Inc is one of the leading clothing stores in India. Baja said she designs the clothes herself and has her own factory where the garments are made by hand.  She noted that she has stores and partnerships around the world and also supplies all the leading ethnic clothing stores in India and other countries. She also supplies all the five star hotels in India with clothing. Baja said she knows that there are many local stores which sell Indian ethnic clothing, but she is of the view that these garments are not good quality. “The garments that people are selling here is not up to mark. They are not quality goods. People here are being charged high prices for these goods.”
 
She said she has visited a number of stores in TT which sell Indian ethnic wear but noted that none of them can compete with the quality of her products. She said people have expressed an interest in forming a partnership with her to supply their stores here in TT. “Many people have approached me to supply their stores,” she said, noting that she had lots of orders. Another businessman from Delhi, SS Ghanshani, said the response to his products has been good. His company, Mercury Impex Enterprise, specialises in brass handicrafts, sequined dresses, costume jewelry, wooden furniture and other furnishings. This is Ghanshani’s second visit to TT and he believes that there are many opportunities for him in TT. He said many people have visited his booth and have proposed joint venture partnerships with him. “I have never seen these kinds of products here in TT and maybe this is why there is such an interest in the products. I think that there is a strong market here for my goods.”

Partners Lalit Malhotra and Arya Bhatt, who own and operate Royal Exports and Rinku Enterprises respectively, a company that  manufactures and supplies general merchandise, handicrafts and textiles, said there is a  big demand for Indian products here. “This is our first visit here and we like this market and the people.” Malhotra said most of the items they brought from India had been sold. He said they have also received enquires to export to TT. “Lots of people like our furniture and they say even though they have seen furniture like this here, ours is much cheaper and of better quality.” Malhotra boasted that people could buy handcrafted furniture from them from as low as $100. Himanshu Trivedi from Bombay came to TT with a wide variety of kitchenware, which he claims can only be found in India. The kitchenware, he said, which comprises of pots and pans, have a copper base which heats very fast and uses less gas. Additionally, he noted these items are easy to clean.

Trivedi said his company, Try Steel Overseas, has done business in many parts of the world including South Africa, Durban, Mauritius and Sri Lanka among others. “Even though this is a small market it is full of potential,” he said, noting that he too wanted to set up good trading links.
Vinod Kumar Gupta of Shivam Int India complained that while sales have been good, the hall where they were housed was not comfortable and fit for doing business. Even so, Gupta said he is very interested in doing business in TT. “I can have good business here. I have been in business in India for over 15 years and I want to do business in a country like this.” Manish Jain of Vardhman Exports said he came to TT to boost  sales. “I have never traded here before, but I like the business prospects.” Indian High Commissioner to TT, Virendra Gupta said he was pleased with the response to the trade mission.

He said the trade fair is being held in an effort to facilitate the expansion of economic and commercial linkages between India and TT. Gupta said the presence of approximately 40 Indian businessmen during the fair provided the local business community with an opportunity to establish enduring business connections for the mutual benefit of the two countries. “India has emerged as a reliable supplier of quality goods at highly competitive prices and people here would be able to experience it first hand at the trade fair.” Gupta said he was confident that this trade fair, like other promotional events, will result in net increase in demand for Indian products in this country. The trade mission was organised by the international Association of Mother India Clubs and Festival of India Committee (TT), in association with the National Council of Indian Culture and the Indian High Commission.

When my Editor announced that he was sending me to test drive the new model 2004 Audi A-8 Sedan, I was skeptical, since I can’t drive and I have never really been much of a car person. Sending me on an assignment like this would be like sending a blind man to a silent movie. I would be completely clueless when the sales people started talking about fuel injection, air suspension and multitronic transmission with triptonic function. However, two hours later, there I was sitting in the office of Audi Brand Manager, Garth Marshall, waiting for him to take me on my very first test drive. Needless to say, I just sat in the passenger seat and let him drive me around while he explained the technological features of a car that cost seven time the price of my house.

At first glance, the Audi flagship A8 Sedan is, for want of a better word, intimidating. For one, it costs between $990,000 and $1,250,000, a sum of money that I may never see in my entire life, unless Lady Luck smiles on me and I win the Lotto. And even then, after taxes, I still won’t be able to afford a car like that. However, Marshall explained, this was the case for most people, since by setting such a price, Audi was targeting a niche market. He also explained that it was made to appeal to Ambassadors, other diplomats and Ministers who were allowed duty free concessions for the purchase of a car. Although the price might seem steep for many, Marshall noted that the A8 was competitively priced with other luxury cars like the Mercedes S Class and the BMW 7 series which possessed similar features. “The Audi Sedan is still a competitive car,” he noted, “the equipment level in the car is compatible if not superior to the other two brands.”

During the 10-minute drive around the Queen’s Park Savannah, I could not help but notice the admiring, not to mention envious glances that came our way. On a normal day, traffic around the Savannah after 3 o’clock, is well, unbearable. However, this was the first time that my blood pressure did not go up, as we cruised around, with the air conditioning and radio on, gliding over road bumps and pot holes, like a knife over butter.
The Audi A8 was officially launched in Trinidad on September 4, by Automobile Sales Limited, local Audi distributor. It was launched in Europe last year and became the recipient of numerous design awards, including the prestigious “Golden Steering Wheel” for Best Luxury Class Vehicle. The media also named it the sportiest luxury sedan on the market. Since the launch, the public response to the car has been overwhelming. “People have looked at the car and marveled at it,” he said. “They are very impressed with what they have seen with the car, especially knowing what the older model looked like.”

He explained that in terms of outward appearances, the new model projected a sportier image, while the older model leaned towards the executive look. “There is more to this car than meets the eye,” Marshall went on. “Some of the electronics in this model are of a higher level than was present in the older model.” The focal point of the A8 is undoubtable the Multi Media Interface (MMI), an electronic system which allows the driver to programme the car to various settings to make his ride more comfortable. This includes air-conditioning, suspension, audio, steering wheel, alarm system and mirrors, among others. Using a touch pad on a control panel located between the driver’s and passenger’s seats, the driver can make any changes to these settings using just his finger. This also prevents others from using the car without their settings being programmed into the MMI.
Amazingly, there is no need for keys to start the car. Marshall explained that once the driver had the keys on his person, by just pressing a button on the control panel, he can start the car.

“It is a lot to talk about,” Marshall maintained.  “You don’t have to be a rocket scientist to understand this car.” “The people who buy these cars,” he went on, “demand a certain level of luxury. You don’t want to get into a car and have to waste time adjusting your seat and such. You don’t have time for that.” “The only thing this car does not do is drive you from Point A to Point B. The less you have to worry about the better.” The car is basically available in two configurations, a 3.7 liter engine and a 4.2 liter engine. The 3.7l V8, a 280 Horse (hp) power engine, is priced at $990,000 while the 4.2l V8 costs $1,250,000. This can reach speeds of up to 335 miles per hour. They come with two years unlimited mileage, a 12 year warranty on body corrosion and three years on paint work. Other features of the A8 model include central remote locking, a 12-speaker Bose surround sound system, with a six-disc CD changer located in the glove compartment, cup holders in the rear and front, as well as a multifunctional steering wheel and a walnut wood dashboard with a glossy trim. It also possesses both active and passive safety features, including dual front airbags, side front airbags and eight side guards and aluminum spacing which enhances the strength of the car.

Revenue was marginally higher for LJ Williams (LJW) in the six months ended June 30, 2003.  In 2003 revenue was $44.2 million compared with $43.8 million made in 2002. LJW recorded an operating loss of $0.5 million in 2003 against a profit of $1.4 million posted in the same period in 2002. Overall, Group net profit after taxation reflected a loss in 2003 of $1.2 million.  This is a decline over the similar period in 2002 when LJW recorded a gain of $1.1 million. The Chairman stated that there was a ‘substantial fall off’ in the contributions of subsidiary companies.  Movalite, which does interiors and glazings of buildings derives income at the end of a project.  The Chairman indicated that there were few large projects in the first half of the year from which the Company could benefit.  It is expected that business will improve toward the end of 2003. The Jamaican subsidiary NACO has felt the effects of a weak Jamaican dollar, and a deteriorating market for its product.  We consequently refrain from making an end of year projection for earnings as the situation appears to be somewhat uncertain.  
Barbados Shipping and Trading Limited

Results for the Nine Months Ended June 30, 2003
All figures in bds$

Barbados Shipping and Trading (BS&T) posted an increase of 2.7 per cent in revenue in the nine month period ended June 30, 2003. This year, revenue totalled Bds$464.8 million compared to the similar 2002 period’s Bds$452.6 million. Net Income was 4.1 per cent higher in 2003 at Bds$19.8 million from the 2002 figure of Bds$19.0 million.  Earnings per share for the nine month period was Bds27 cents in 2003 compared to Bds26 cents made in 2002. We forecast a full year EPS of Bds45 cents, which translates to TT$1.40.  At the current trading price of $11.31, this gives a PE ratio of 8.1.  This is low by Trinidad stock market levels. Analysis by West Indies Stockbrokers Limited. Member of the Trinidad and Tobago Stock Exchange Ltd.WISE is a subsidiary of RBTT Financial Hodings Limited

LAST WEEK, the USA and for that matter the entire world remembered that fateful day two years ago when a simple unsophisticated plan by terrorists to commandeer jumbo jets and crash them into the World Trade Centre buildings accounted for untold loss of life and property. That single occurrence has changed the world forever and it would appear that the USA is determined to ensure no such act of terrorism ever takes place on its soil again. In the intervening period the USA has taken unprecedented action in terms of homeland security which has affected the individual rights of its citizens, which they have not objected to giving up if it improves the chances of preventing terrorists’ attacks. This is in itself a lesson for all of us in Trinidad and Tobago where we still continue to bury our heads in the sand and to do little or nothing to deal with the violent crimes involving the use of firearms and weapons and the increased incidences of kidnapping when the situation cries out for tougher action. We have a love for “things American,” but why don’t we now take a leaf from the Americans and adopt some of the same approaches to deal with our domestic crime situation?

We, as outsiders looking in, may even view that the USA has become obsessed with issues of security and have gone overboard to the point of paranoia, but Americans will not allow their leaders the luxury of a repeat of what happened on September 11 without serious political fallout. That is the American way! We in Trinidad and Tobago never take anything seriously. We have had our own experience of July 27, 1990 and the insurance issues have only just been settled in favour of the insurance industry as was expected, but the wider community may not agree that we feel any safer today. The effects of 9/11 are still reverberating throughout the world insurance industry and it will be some years before some certainty and a degree of normalcy return. The insurance business is like no other business since there is interaction among insurers and re-insurers around the world and, in fact, there are no borders. Insurers cannot operate without the support of international re-insurers since risks must be spread and expertise sourced and this holds true for all countries, and Trinidad and Tobago cannot be an exception to this rule.

Following our own events of July 27, 1990, our insurers developed a product with the support of the international re-insurance community to provide some coverage in the event such an event happened here again. Now all bets are off! This re-insurance support has been withdrawn and this coverage is no longer generally available. Our best insurance coverage is to ensure that no such event ever takes place again and our insurance policy is the security forces — so please note! Trinidad and Tobago is not alone. Most countries are in a similar position and the coverage is now a general exclusion. In the USA, the situation is somewhat different. Terrorism cover is available and where capacity is exhausted, it is the Federal government that is now a re-insurer of last resort. The government has taken action in quick time to fill the breach, but that is also the USA’s way of doing things and is an immediate response to a market failure. Our way is not the USA’s way and we do nothing quickly, but rather expend energies in talk and only in deliberate action.

The immediate reaction was the increase of re-insurance costs as the re-insurers that provide support to our insurance companies were affected. The result was an increase in insurance premiums to the ordinary policyholder and businesses and a further tightening of the policy terms and conditions, and the situation continues although in a less dramatic form. The world’s major insurance and re-insurance companies have been under immense scrutiny by the rating agencies — Standard and Poor’s and AMBest and in fact there has been a downgrading of the leading players as these agencies believe that the sector is still under-performing. In addition, these major players have seen a significant reduction in their stock market valuation which in itself raises questions in their ability to take advantage of the high premiums as they themselves might have to seek increased capitalisation. Coupled with this state is the continuing volatility in the world stock markets as all these major players are active participants and therefore they would all have suffered losses following the collapse of Enron, WorldCom and the other corporate scandals. However, insurance business must look towards the future and all these road humps only serve to prove the industry’s resilience and its ability to ride out short-term difficulties.

The 9/11 event is only now having its sequel in the Courts. The World Trade Centre losses are in dispute as the judge in the first instance has ruled that there were two losses. The insurance companies hold that the policy covered an event and that there was only one loss. It could mean the difference of some US$3.5 billion when the final ruling is handed down sometime in the future. The US companies have reported that their net claims were US$9.3 billion at the end of 2002. The company (GMAC) that financed Larry Silverstein’s lease on the WTC is suing him allegedly for not putting enough insurance money aside to secure his debt to the bondholders and this was reported in Insurance Day.

On the heels of all of these law suits, a USA federal judge has ruled that lawsuits blaming the airlines, the Port Authority and Boeing for deaths and injuries can proceed. They (the defendants) argued that they had no duty to anticipate or guard against suicidal attacks and that no negligence could be placed at their doorstep. The plaintiffs argued that Boeing should have designed a cockpit door to prevent hijackers from invading the cockpit. They also claimed that the airlines and the Port Authority did not take sufficient preventative measures on the ground to protect passengers and in the circumstances failed the travelling public. While there will be appeals of the judge’s decision it will be some considerable time before there is closure.

E-mail: daquing@cablenett.net