Budget of optimism

IN TERMS of the action the Government is taking and the measures it proposes in its social and economic programmes, the 2005 Budget delivered by Prime Minister Patrick Manning yesterday is a heartening one. If the progressive proposals outlined in the Budget to advance and improve critical areas in the life of the country are realised, then TT seems set to take a significant leap towards achievement of the developed nation status that Mr Manning has envisaged for the country.

Perhaps no other small developing nation has been given such an opportunity as TT, blessed as it is with oil and gas resources which are earning the necessary wherewithal as a result of strong demand and high world prices. But however strategically poised we may be to fulfil that vision and however relevant the Budget may be as a blue print for advancement, there still remains the difficult problem of implementation. The Budget for all its good and progressive intentions is, after all, only a road map to take us a certain distance along the way; the Government and the country must now have to walk the walk.

But it is difficult not to be optimistic about our country’s future particularly when we look at the mega developments in the energy sector upon which the realisation of our dreams largely depends. It is somewhat disappointing, however, to learn that the country may not be deriving maximum benefits from the exploitation of its hydrocarbon resources due to the failure as yet to modernise the tax regime with respect to companies operating in the energy sector. This exercise was due to be completed last January but, according to Mr Manning, discussions are now expected to take another six months before a new tax regime is hammered out, “given the highly complex and technical issues that need to be resolved.”

In keeping with the concerns we have expressed over the level of secrecy prevailing in energy sector transactions, we are pleased to learn of the measures being taken by the Government to assure transparency in this regard. The PM has announced that Government will work with multi-nationals and other entities “to develop a reporting format for revenues generated in the extractive industry and the oil and gas industry in particular.”  It is encouraging to hear that this “represents a joint public/private sector approach to transparency.”

Our expectation is that such a facility will be established within the life of the Budget so that, for the first time, the citizens of our country will be regularly and precisely informed about the income being derived from development of the resources that belong to them. The measures outlined in the Budget to expand and improve operations in the manufacturing sector, housing, agriculture, transport, infrastructure, tourism, finance, technology, telecommunications, human resources, pension and procurement reform and, most notably in the problem areas of  education, health and national security, are all quite impressive and together they appear to represent not only an effort to solve major problems but, more importantly, to create conditions for meeting the challenges of the future. A welcome proposal with respect to transport is the plan to develop a light rail mass transit system from Arima to Diego Martin and from Port-of-Spain to San Fernando. This would certainly ease the present commuting horrors of our mobile population.

In terms of social relief, the Budget contains some notable measures including a reduction in the price of imported chicken and turkey parts, poverty alleviation by an increase in SHARE hampers, an increase in the minimum wage from $8 to $9 per hour. Government retirees will also receive a long awaited rise in their pensions. In its developmental ambitions, the Budget gives cause for optimism and confidence. How well or comprehensively the Government can realise its proposals is left to be seen.