One of the major challenges of competing in the global market is that developed countries are becoming increasingly stringent in the application of standards and specifications.  This stringency is putting additional pressure on suppliers in developing countries to meet such requirements. International economic liberalisation, forces countries to compete with manufacturers of other countries, both in terms of exportation and on the domestic market. In the new economic environment it is imperative that Trinidad and Tobago and other CARICOM countries enhance their competitiveness and increase their access to world markets by the implementation of Quality Management Systems (QMS) that promote greater accountability, produce higher levels of efficiency and nurture productivity-driven growth and profitability.

Many companies in the private sector know the value of ISO 9001 certification.  It provides external recognition leading to greater business prospects since foreign businesses dealing with an ISO 9001 certified organisation have realistic expectations of consistent product or service quality. During the latter years of the last decade however, several countries took the decision to invest heavily in the implementation of ISO based QMS in the public sector.  Three countries that reported major benefits as a result of these initiatives are the United Arab Emirates (UAE), Japan and Malaysia. In these countries, and others, traditional modes of public sector management burdened by emphasis on cumbersome hierarchical notions of command and control are being challenged and dismantled in favour of more fluid, flexible and collaborative models of management characterised by higher levels of efficiency, satisfaction and dynamism.

The case of the UAE is particularly interesting. The UAE with a population of just over 2 million embarked in 2001 on a government-wide programme to implement Quality Management Systems in a sustained effort to institutionalise excellence in the public sector. One of the major challenges to be surmounted there was the change in mindset and working culture that was necessary to achieve the objective, including the need for government workers to recognise other ministries as customers, and the public as stakeholders. The main inspiration behind this initiative was reportedly the dramatic transformation of the Ministry of Finance and Industry of the UAE following ISO certification in 1999.  For many years the functioning of this Ministry was a source of concern to many in other ministries as well as members of the public. They urged the Ministry to be more focused in responding to the changing needs of the environment, more transparent in its decision-making process and more consistent and systematic in its transactions.

A close examination of the internal work processes and systems of the Ministry revealed that officers were working with inadequate and antiquated guidelines that invariably resulted in inconsistent job performance and service quality. The implementation of the ISO 9001 QMS allowed the Ministry of Finance and Industry in the UAE to analyse customer requirements and to realign itself and re-engineer its processes to meet them.  Core organisational processes were also benchmarked against world-class standards (in this case the Treasury of New Zealand was selected) and this exercise was used to identify breakthrough improvements. Some of the benefits were the creation of a customer-focused culture; a change in the mindset of civil servants from day-to-day administration to one of helping to manage the organisation, and the development of optimised management systems with greater efficiency, increased productivity and higher levels of satisfaction.

ISO 9001 was selected by their government as the vehicle to achieve public sector excellence because it emphasises four key parameters — management commitment, resources, processes and measures to achieve customer satisfaction.  So successful was the initiative that a Cabinet resolution has directed all government agencies in the UAE to implement the ISO 9001:2000 standard by 2005. The thrust of the “Vision 20/20” Strategy of the Government of the Republic of Trinidad and Tobago, from all that has been said so far, appears to be a focus on a more holistic and systematic national approach towards decision-making and planning in response to the changing needs of the global environment. 

The process of building a developed nation can only succeed if there is dynamic private and public sector involvement. Emerging public-private sector partnerships also serve to blur the boundaries between government and business sector in response to the economic realities of the complex and rapidly changing global environment. Has the time come for us to invest in training for ministries and other Government agencies to implement QMS that ensure quality public service and inspire public confidence? If we are to learn from the experiences of other nations, then the answer is clear. In many ways, this is a revolutionary era and revolutionary times call for revolutionary measures.

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

If, as physicists say, the universe has a way of making people feel marginalised, then the disabled in Barbados and the rest of the Caribbean have every right to think they have been hit with a triple whammy. The disabled are often faced with a wall of discrimination and a myriad of other problems when they try to get a job in the English-speaking Caribbean. Small wonder, then, that a mix of the forces of nature, the tragedies caused by accidents and a lack of laws that bar discrimination and open up jobs and services may be spawning a feeling of marginalisation among the disabled across the region. In a survey of the problems facing the disabled in the Caribbean, the United States State Department made this very clear: English-speaking states have made some tentative steps designed to create opportunities for people with disabilities but their chances of being fully absorbed into the general community are slim. In almost every country, there is a lack of anti-discrimination laws that would help the disabled find jobs, housing, education and other services that they need.

However, a few countries, the Bah-amas, Jamaica, Gre-nada and Barbados have acted to bring them in from out of the dark shadows of society. Even so, the Caribbean Community (Caricom) has a long way to go before it can even come close to matching the aggressive federal, state and local government policies, rules and regulations that offer a helping hand to the disabled in the United States. Take the case of Jamaica, a country with a disabled population of 250,000. That’s more than the populations of Antigua, St Kitts-Nevis and Dominica combined. Of that relatively large number, only about 200 people were gainfully emp-loyed, 90 per cent of them by the government in 2002. To begin with, Jamaica hasn’t enacted any laws that mandate accessibility or address the issue of discrimination in employment and education. However, several government agencies and non-governmental organisations offer services and seek employment for the disabled.    

Jack Ramoutarsingh is fuming over what he says is Ispat’s arbitrary flexing of its monopolistic muscle. As chairman and CEO of Trinrico Steel and Wire Products Ltd, he has to stand by and watch his company lose about $300,000 per month because of the high price that he has had to pay Ispat for steel. Ramoutarsingh, who is also an active member of the Downstream Steel and Wire Rods Association (DSWRA), claims that within the last 12 months, Ispat has increased its prices five times from US $245 to US $300 per metric tonne. This, he claims, is about US $25 above the average world price. Billets are currently sold at US $245 per metric tonne. Ispat officials have refused to comment. Ramoutarsingh said his company, along with the the other eight downstream steel producers, only found out about the latest price hike last month; downstreamers were also told that Ispat will no longer be accepting credit, and now had to pay cash. “There has always been and continues to be a marked difference in Ispat prices for wire rods versus world market prices,” Ramourtarsingh said in an interview last week at his office on Coffee Street, San Fernando.

Ispat’s price increases, Ramoutarsingh said, not only threaten the existence of the local downstream steel manufacturers but also the 2,000 workers employed at these mills. He predicts that if the issue is not addressed soon, prices of steel products could go up.  Steel accounts for 20 percent of the cost of residential buildings and 30 percent in the case of commercial buildings and industrial plants. Government’s low cost housing project could also be jeoparsidised, as the costs for material will go up. In fact, the contractors involved are already complaining, as they operate on a fixed cost basis. Members of the Hardware Dealers Co-operative Society have now joined the Downstream Steel and Wire Rods Association in an attempt to get Ispat to back down. The increases, they say, are having a spiral effect with the cost of nails, roof sheetings, BRC wire, wire rolls and steel rods. Ramoutarsingh said he had hoped to see a drop in steel prices after the Iraq war, but Ispat, he added,  is only willing to drop the prices by about US $10 per tonne. Minister of Trade and Industry Ken Valley has given the producers the assurance that he will speak with Ispat soon on its pricing policy. “Ispat increases wire rod prices at no fixed interval, it is increased monthly, bi-monthly, quarterly, whatever suits them and the notice is given in as little as two days,” he argued. Ispat’s pricing policies, he claimed, have also forced two steel producers out of business. Ramoutarsingh himself has also had to close down one of his plants and stop the expansion on his current plant. Ispat’s arbitrary pricing strategy, Ramourtarsingh said, started ten years ago when Government sold ISCOTT to Ispat. He said at that time Government did not pay any attention to the contracts the steel producers had with ISCOTT and did not make any new contracts with Ispat. “ISCOTT should have given instructions to Ispat that they should continue selling us wire rods and billets at international prices or what they (ISCOTT) was selling us at. But they did no such thing.” Downstreamers took matters into their own hands in 1994 and formed an association and immediately appealed to then line Minister Ken Valley who took the matter to Cabinet.

But Ramoutarsingh was shocked when the Maning government recommended a 25 percent increase above the world market price. The matter was taken to court and the judge ruled that billets be sold to steel producers at world market prices. However, at that time only two of the 11 steel producers used billets, the other nine used wire rods. So Valley assured the producers that he will continue negotiations on wire rods. Additionally, Ramoutarsingh said, Lakshmi Mittal, owner of Ispat and several other steel mills around the world, promised the steel producers that Ispat would sell them at international prices and even offered to send his engineers to their plants to give them some assistance in upgrading their facilities so that they could sell more of his products and promote TT. At that time, steel became the second largest earner of foreign exchange in TT; now it is the third largest earner outside the petrochemical industry. Ramoutarsingh charged none of Mittal’s promises materialised and steel producers are still being charged much higher than international prices. “They are selling international markets at world prices to be competitive but at the same time they are charging us more,” noting, “that could never be fair.” Ispat produces about 900,000 tonnes of wire rods per year and another 72,000 tonnes of billets. In TT, Ramoutarsingh said, downstreamers use less than one third of Ispat’s output, the rest is exported. In November 2002 world prices stood at US $182 per tonne but, Ispat was still charging local producers at $255.

Ramoutarsingh said the industry could have survived at that price, “ because Ispat was selling at US$200 in the US.” Then came the other price increases and the local producers just could not keep up. In addition to the random price increases, Ispat has also suspended all the purchasing of wire rods even though the manufacturers have been providing “costly” bank guarantees to support the credit for over 12 years. “We had to pay the banks $45,000 to establish a letter of credit and we lost that,” noting that this happened while manufacturers extended credit to customers to compete. Ramoutarsingh said while they have considered exporting the raw materials, he explained that TT has the highest port charge in the Western Hemishere. Additionally, he said the Pt Lisas port is always filled and even if they wanted to import from countries like Turkey, the depth of water at the harbour is too shallow. “Ispat is using that as their big stick to fix their price, because they know that if we want to import, it will be hell because we have to wait three months and pay additional costs,” he said.

Ramoutarsingh charged that Ispat does not pay duty, pays no VAT on foreign exports and also gets concessions on gas. “We export over 60 percent of what we make and we have to pay duties and VAT and other additional costs.” He said Ispat’s pricing structure makes the local producers uncompetitive in the larger Caricom markets and the extra-regional markets to which most of the companies export because they start with the disadvantage of a higher raw material price. “In other words,” he said,” “ the playing field is not level.” He said even though trade agreements were signed between the Dominican Republic and Caricom, and a bi-lateral agreement between TT and Costa Rica, they still cannot export to these markets because of uncompetitive wire rod prices. Jamaica, he said, imports all of its steel products from Brazil and Turkey noting they they negotiate very competitive prices and pay no duty . Jamaica is Ramoutarsingh’s biggest market. Further, the Free Trade Area of the Americas (FTAA) would soon be in effect which would give local manufacturers the opportunity to export products duty free to countries in South, Central and North America excluding Cuba, a total of 34 countries. Ramoutarsingh said if they are not competitive then they will not benefit from the FTAA. Manufacturers, he added, have to take steps now to do whatever is necessary to enhance competitiveness, and this includes sourcing competitive raw materials. “All we are asking is that Ispat level the playing field,” Ramoutarsingh said. Ramoutarsingh said they are not asking Ispat for favours but want equitable treatment. “We have invested hundreds of millions of dollars in plant and equipment and employ over 2,000 people. If  Ispat is allowed to sink us with their high prices, this country will suffer tremendously,” he believes.  

The stained glass industry has come a long way since the eleventh and twelfth centuries when a religious fervour swept the European countryside. In those days it took more than four individuals to complete a piece. An alchemist was needed to formulate the glass, a chemist to figure out the colours, a metallurgist to mine and cast the lead and an artist to design the window. Today, stained glass can be created by individuals in the comfort of their own home, using only safety glasses, a glass cutter, breaking pliers, running pliers, glass grinder, copper tape, solder, flux, 100W soldering iron, a pattern, glass and a work surface. The local industry is fairly new — having only broken ground in the late 1980’s to 1990’s. One local artist, Denzley Butcher, owner of Artistic Glass and Home Finishers Limited, located on John Shaw Avenue in Arima, has high hopes for the local stained glass industry. “For me,” he said in a recent interview, “the stained glass industry is only going one way — up.” His view is shared by Construction and Interior Design Manager of Rodritec Systems Limited, Wendy-Fae Rodriguez, who sees the industry moving ahead at a rapid pace. “Many designers,” she said in an interview, “are incorporating stained glass into their designs. Existing suppliers are finally getting a break into the commercial and residential industry instead of the old Victorian buildings and churches.” Rodriguez revealed that locally the present designs were becoming prevalent in entrance doors and attic windows, influenced by North American designs. The advent of cable tv brought with it a medium for the exchange of ideas from one country to the next, which seemingly has had an impact on the revival of the stained glass industry.

Butcher also credits a return to the renaissance era in architectural design for this rebirth, noting that people are now becoming aware that their homes can be something more than just a daily shelter. “If you look at the buildings being constructed now,” he said, “you will find that they have gone back to the era of Gothic head roofs and fancy doors which leaves room for the revival of the stained glass industry.” Butcher has been involved in the business of stained glass and artistic design since 1984, having studied it in Canada. His business was officially opened in 1986 on its present site. His interest in stained glass came about after a visit to the small London town of St Thomas. “Here every other house on the street had a stained glass piece over their door and each depicted something different,” he recalled. His first piece was donated to the Tacarigua Roman Catholic Church and preceded his first big commission which was a stained glass window panel measuring 110 feet by 8 feet depicting the Annunciation, Crucifixion and the Feast of Pentecost. This was designed for the Malabar Roman Catholic Church.

Since then he has done restoration work for the St John’s Baptist Church on Pembroke Street, PoS, the Paramin RC Church, the Holy Cross RC Church in Princes Town and the La Divina Pastora Church in Siparia, in addition to numerous smaller churches. He has also designed pieces for homes in Goodwood Park, Lange Park, San Fernando and La Romaine, as well as for the Richmond Guest House in Tobago. Butcher is now offering courses in the art of stained glass for those who are interested. “My philosophy is that someone taught me and now I will teach others.”  For hundreds of years, the traditional art of stained glass has illuminated cathedrals and churches with its beauty and colour. Today, in addition to the more traditional uses in doors and windows, stained glass is increasingly used in gardens as a sculptural feature or hanging panels suspended from trees or pergolas. In the home stained glass can be used for many applications including decorative panes and free standing screens. There are more than ten different types of glass available on the market. Dichroic glass is coated with one or more ultra-thin crystalline layers of transparent metal oxides; glue-chip glass has a pattern resembling a fern and is often used for backgrounds while iridescent glass resembles an oily, metallic film of soft colour on water, which produces a shimmering rainbow effect. It is primarily used to highlight special areas.

Opalescent glass is made in a number of ways — as a single colour; with the pigments mixed to give the glass a streaky, mottled appearance and with or without a surface texture. The pigments are mixed into opalescent glass during manufacture with the result that the colours, patterns and textures are never exactly the same. This type of glass looks effectively when used with transparent glass to provide a contrast. Butcher dismisses the myth that stained glass is available only to the affluent. Noting that there are no rich or poor when it comes to this art. “Anyone can learn to do this,” he maintained. “You will find that there are a lot of people willing to learn the art which will have a significant and positive impact on the industry.”
However, the ready-made pieces may prove to be out of reach for many pockets since they range in price from $750 upwards. According to Rodriguez, cost varies from about $1,500 per door upwards according to the design and the various stained glass colours used. Smaller pieces such as sun catchers which are becoming popular in many households, may go for $100 or less.  “The more people who are exposed to the art of stained glass the better the industry will thrive. You will find that it will be accepted as something not for the elite but for anyone.”    

RBTT Merchant Bank executive, Filippo Alario, believes regional economies would be better off if businesses relied more on the financial markets rather than bank loans to fund their operations. Alario also said that developing the regional bond markets will encourage more investors to keep their funds at home and will in time lead to a more diversified risk portfolio across the region. New legislation is needed to meet international standards and will provide the confidence necessary for long term stability in the financial sector, he believed. In an address titled, “Issues surrounding the development of a corporate bond market in developing countries, at the third annual Euromoney Caribbean Investment Forum in the Dominican Republic last week, Alario said the move will lessen the region’s vulnerability to fluctuations in the international capital markets and also reduce the impact of global economic shocks and recessions.

Despite legal hurdles,  RBTT Bank has raised more than US$1 billion on the regional bond markets for its clients across the Caribbean, including a recent issue of US$104 million for Ege Haina, a power generating company in the DR. But Caribbean territories must update their legal and financial infrastructure if it wants to develop vibrant financial markets and boost global competitiveness across the region. He said the initiative will also support the determination by many regional governments to maintain sound economic policies and it will enhance stability of the local market for corporate and sovereign bonds and securities. “With a well managed government sector, investors and traders will be better positioned to forecast a smooth and more reliable yield curve from which corporate issues can be benchmarked. “With an improved legal framework, investors can look forward to a regional credit rating system, more reliable disclosure systems and updated bankruptcy laws that protect bondholders,” he said.

He said the regional bond markets face serious challenges ahead. Although the market has seen tremendous growth over the past few years, it is far from its true potential as a major tool for transforming economies across the region. “The regional market is limited by the small number of firms that are operating on a scale large enough to access the market. On the investment side, individual and institutional investors are few and are lacking the sophistication to take advantage of many of the new opportunities that are being introduced to the market,” says Alario. Governments, he said, should be committed to the process of reform and fostering the entrepreneurial spirit of regional businesses by providing tangible support through reductions in withholding taxes for funds raised and issuances. He said in most of the territories, overcoming the legal and institutional challenges have placed them out of the running for low cost funding on the international markets.    

Krishna Narwani, Chairman of the Board has announced the appointment of Mr Hugh Williams as a Director of Total Finance Limited, effective February 18, 2003. In welcoming him, Narwani stated that Williams brings a wealth of experience to the Board. He graduated from the University of Toronto with a Bachelor’s degree in Applied Science, and he also possesses an MBA (Hons) from the University of Western Ontario where he majored in finance and general management. He has also attended a number of continuing education programmes at the Wharton and Harvard Business Schools. His working experience was primarily as the partner in charge of the consulting practice with an international firm of Chartered Accountants, with particular emphasis on assessing organisational performance and assisting in charting corporate action plans. He has also lectured in Business Policy at the undergraduate level and has designed and facilitated workshops for executives in both the public and private sectors. Williams is a member of the Fellow of the Institute of Management Consultancy of the United Kingdom.     

The events of July 27, 1990 came back to haunt us this past week as those businesses that suffered losses and had initiated legal action against their insurers were called upon to pay legal expenses of around $15,000 each in order to have their matters formally withdrawn and brought to an end. If we as a people learn anything from this most traumatic event in the country’s history is that insurance companies will not pay for losses whether directly or indirectly resulting from any attempted overthrow of a duly elected government. The army must stay in the barracks and no group however well intentioned should try to unseat the government by force as the consequences of any such action will only cause mayhem and destruction to innocent bystanders without the hope of compensation from the insurance industry. Whereas insurance companies have tried to introduce policies that provided some measure of coverage against events like an attempted coup, sabotage and terrorism they are no longer able to sell such coverage following the 9/11 events in the USA. The international insurance and reinsurance markets have now totally excluded all such losses and coverage is simply not available for land-based risks at the present time. This is not to say that sometime in the future this coverage might not once more be available but in the light of worldwide terrorism threats it is unlikely that coverage will be sold anytime soon.

Turning to the attempted coup, the recent adverse publicity in the media that insurance companies not only did they not compensate their insureds but they were now making demands for legal costs painted a picture of an industry that seemed heartless and without a touch of human kindness. Insurance companies are generally looked upon as having deep pockets and could afford to pay out monies but would rather use their might to effect settlements that disadvantage their customers. This is true in some cases but in the main reputable insurance companies try to ensure that claims are fairly settled. It was clear immediately following July 27, 1990 that what took place in the country would fall within the exclusion clause in the fire policy and therefore no claims would be entertained. However, much work was carried out to get a ballpark figure of the values involved and discussions were held with the main international reinsurance markets to see whether special consideration would be given to making some kind of payment to claimants especially as the country was in a period of structural adjustment.

The international community was satisfied that the event was excluded and that they did not have to pay and they rejected outright any concession as that would make for bad precedent. It was only after much dialogue that they even entertained the idea of paying their share of legal expenses to defend the legal actions in the Courts and even then a number of international reinsurers flatly refused to pay as they contended that the claims had no merit. It was to the credit of the insurance industry that the market could come together and map out a way that would ensure an efficient handling of the legal actions that were at one time in excess of 300. If this approach was not taken a nightmare situation might have arisen where some 300 matters would have to be litigated with the same facts being presented and the legal work would have multiplied to the detriment of claimants and insurers alike. Instead, only two matters went ahead while all others remained alive pending their determination. If the insurers lost, obviously all the claimants’ legal actions would be alive and they could then seek to obtain settlements from their insurers. From the very outset, the legal precedents and arguments were heavily weighted against the claimants and therefore their chances of winning were extremely slim. However, some claimants were persuaded by their attorneys that the insurers would lose and that they would have to pay and so they had expectations or delusion of success. The rulings of the High Court and the Court of Appeal were only an affirmation of what the insurance companies already knew and the claimants were the losers. The insurance companies not only paid the costs which were substantial to defend the two cases but also the costs involved in defending every writ that had been filed against them. The insurance industry will only receive a mere fraction of the monies spent in defending the two decided cases since the winning party never receives his outlay in legal expenses.

If litigants are made aware from the outset that legal expenses are never fully recoverable then it is possible that there will be fewer legal actions. The Court is an expensive proposition and one should only resort to the Courts when all else fails. The only winners in this whole tragedy are the lawyers!! Lawyers on both sides — those who acted for the Plaintiffs and those who acted on behalf of the insurance companies. They were all paid and they would say that they deserve to be paid for their time and expertise but in the end the Plaintiffs received no compensation for their losses and the insurance companies had to fork out monies when with the passage of time they would have had difficulty in recovering from their reinsurers —some of whom are no longer in business. And that is the real tragedy — no winners except the lawyers. The recent flare-up over the costs sought by the insurance companies to finally bring closure to all the legal actions suggests that the insurance companies are rubbing “salt in the wound” and gleefully wringing their hands. Nothing is further from the truth! All the insurance industry wants to see is an end and the withdrawal of the legal actions so that the slate would be wiped clean and expunged from the Court List. In order for that to take place, further legal work has to done and here is where the difficulty lies. It is not the insurance companies that will receive this money but rather the legal firm/firms involved and in fact only a small amount will ever reach the insurance companies. It is the lawyers who will earn much of these fees — and they will argue that that is the system!!!

Indeed, the insurance industry is quite sympathetic to all those who have in some way suffered, especially the businesses and workers some of whom have lost their jobs. All the insurance industry wants is to bring an end to this unfortunate event in the country’s history and it does not want to incur any further legal costs in doing so. Its mandate to the attorneys is to negotiate reasonable costs where the insurance companies can recover some part of its outlay on the individual actions and that they should moderate their charges so that an agreement can be reached and the matters closed. The industry is taking a flexible position but essentially it is a matter between attorneys on both sides to arrive at a resolution. The insurance companies have received bad publicity but they do not deserve the bad reporting in this instance. The events of 1990 have caused enormous hardship on many businesses some of which are gone forever. The world is a much different place today and the international community is less willing to come to your assistance in cases of your own making — an event that should never have happened. Let us resolve that such an event will never again happen as we will all be losers.

email: daquing@cablenett.net    

Despite a positive statement from the United States Federal Reserve Chairman Alan Greenspan, and economists’ expectations of higher corporate earnings, share prices declined over the week but more or less held the post war rally gains with some measure of certainty. In general, the global market sentiment is looking for the well-timed and organised US-led stimulus efforts to foster economic growth and financial market gains. The Dow and S&P fell 1% but the NASDAQ was harder hit, having lodged larger gains over the last three weeks. Profit takers stepped in to sell off and the US-based tech index lost 2% over the week. The UK major market index fell over the week as well, dropping 19 points or 1/2% as gloomy economic news weighed on investor sentiment.  Life assurance and pharmaceuticals were the weakest sectors in the UK, while tobacco and general insurance made the most gains. In continental Europe, concerns over the strength of the euro against the US dollar weighed heavily on European equities during the week. The European currency reached fresh highs and breached $1.17, the rate at which it was launched in 1999.

Investors worried that the strengthening currency would hurt economic growth prospects, hamper exports and reduce earnings for companies in the region. At one point over half a year ago, we had offered an argument that the Euro would hit 1.20 by year end 2004. It now looks like that exchange rate will be hit this week. The German DAX index lost significant ground, down 2.9% for the week where as France fell more in line with the US indexes. In the United States, Alan Greenspan, the Chairman of the Federal Reserve, delivered a boost to the US markets, saying that it was not unreasonable to expect the economy to pick up in the second half of the year. He also commented that the risk of deflation appeared remote, however, the timing and extent of the pickup in economic activity was uncertain. We note that the Fed definitely took a very aggressive stance against the deflationary possibility in recent times. Unemployment in the US reversed its positive trend over the week, as 428,000 new applications for unemployment insurance were received for the week. The rise from last week’s figure broke three straight weeks of declines. The closure of factories, battered by tornados in the Midwest, were blamed for the increase.

US Tobacco companies received a big cheer over the week, as the Florida appeals court dismissed a verdict forcing firms to pay $145 billion in damages to 700,000 Florida smokers. The fine, which threatened earnings in the industry, was overturned after being judged as ‘grossly excessive’. The court also ruled that the cases should be treated individually and not collectively. More news on the US corporate front, the US clothing chain GAP announced that first-quarter earnings had more than quadrupled to $202.5 million from $36.7 million last year. The company said that sales had increased for its core products and this reduced the need for discounting. Home Depot, the world’s largest home improvement chain, reported that its first-quarter earnings had risen by 6% as sales remained resilient. Net income rose to $907 million from $856 million last year, as management kept costs under control.

The UK government confirmed GDP rose 0.2% in the first quarter, matching its preliminary estimate announced last month. However, retail sales, which have underpinned the economy, expanded less during April. The volume of sales rose 0.3% from March, compared with 0.6% in the month earlier. UK inflation remained at 3% in April. On the Continent, consumer activity continued to be weak, as worries persisted over rising unemployment and slowing economic growth. Confidence amongst Italian consumers reached its lowest level in six years, according to a survey by ISAE, and in France, consumer spending failed to grow in April. In contrast to many of its continental European peers, the French economy recorded modest growth of 0.3% in the first quarter of 2003, rebounding from contraction in the preceding quarter. Zurich Financial Services reported first-quarter profits of $114 million, helped by rising insurance premiums, particularly in its non-life business. Its management remain cautious but expect to report profits for 2003 following a $3.4 billion loss last year. In general, we remain comfortable with the economic developments and look forward to seeing business confidence and business spending figures to pick up in support of the general consumer position now entrenched.

e-mail: darcy@investments-intl.com     

Peter J July, Group Chairman, RBTT has announced the appointment of Miguel Pourier and Brian W Young, FCA, to the Board of Directors of RBTT Financial Holdings Limited with effect from May 1, 2003. Pourier, a member of the Supervisory Board of Directors of RBTT Bank NV since September 2002, is highly regarded in the financial services sector in the Netherlands Antilles and Aruba. He is well known for his long and distinguished service to the Netherlands Antilles, both in the public and private sectors. His career in the public service commenced in 1962 at the National Tax Department where he held the position of Director of Taxation. He served in various ministerial positions in the Central Government and assumed the esteemed office of Prime Minister on three occasions. He has also served on many important committees dealing with constitutional, economic and administrative matters affecting the Netherlands Antilles. From 1983 to 1991 Pourier held the position of General Managing Director, ABN AMRO Bank NV in the Netherlands Antilles and Aruba. Pourier brings to the RBTT Financial Holdings Board over 40 years of experience in public and private sector business and regional affairs.

Brian Young, a Chartered Accountant by profession, is a member of the Board of Directors of RBTT Bank Jamaica Limited. A former Senior Partner at Price Waterhouse — Jamaica, he retired in 1995 after 35 years of outstanding service. In 1996, Young was appointed to the Board of Directors of Neal & Massy Holdings Limited and simultaneously appointed the Executive Chairman of the Neal & Massy Group of companies in Jamaica, and from 1998 as Non-Executive Chairman. Young also sits on the Board of Directors of The Gleaner Company Limited, Caribbean Cement Company Limited and Trinidad Cement Company Limited. His government appointed directorships include Air Jamaica, The Petroleum Corporation of Jamaica and The National Water Commission. With extensive experience in the area of privatisation, Young has been appointed as an advisor to the Jamaican Government on a number of privatisation and joint-venture programmes. He is a member of The Insitute of Chartered Accountants in England and Wales, the Institute of Chartered Accountants of Jamaica, the Jamaica Institute of Management and the Institute of Management Consultants of Jamaica. Young brings to RBTT Financial Holdings Board more than 37 years experience in management consultancy and senior executive roles.    

Peter J July, Group Chairman, RBTT Financial Holdings Limited has announced the appointment of Cecil Camacho to the Board of Directors of RBTT Merchant Bank Limited effective May 1, 2003. Camacho, an attorney by profession was admitted to the Law Society of England and Wales in 1975, and was admitted to practise as a Solicitor of the Supreme Court Judicature of Trinidad and Tobago in 1976. He joined the established firm of De Nobriga Inniss & Company in 1976 and has been a partner since 1977. Camacho launched the firm’s Corporate Commercial Department in 1990 with a primary focus on finance, construction and developments in the energy sectors. This resulted in the creation of the firm’s third major areas of practice apart from conveyancing and litigation. Camacho has been involved in major finance and energy projects, including the Atlantic LNG Plant, British Gas’ up-stream activity, the Titan Methanol Plant, the Desalination Plant and the Atlas Methanol Plant. He has executed major finance transactions, mergers and acquisitions in almost every territory in the Caribbean, Belize, Guyana and Suriname.

In 2000 he was appointed Managing Partner of the merged law practices of De Nobriga Inniss & Co and Lex Caribbean, the latter a Barbados law firm and was subsequently responsible for the establishment of Lex Caribbean offices in the British Virgin Islands and Jamaica. Camacho has served on the Board of Directors of Caroni (1975) Limited and has been a Member of the Management Committee of the Queen’s Park Cricket Club for several terms.