Ken Valley: NEW TT Service Policy coming

He also revealed that a new company will be launched in January 2006 to better coordinate the activities of the domestic services sector.

In a speech read by Trade Ministry senior economist Ramjit Sarabjit at the opening of a construction sector seminar, Valley said the services sector was the largest within the national economy, contributing US$5 billion annually to the Gross Domestic Product (GDP) and employing 425,000 persons from 2001 to 2004.

At the function, which took place at the TT Chamber of Industry and Commerce’s offices in Westmoorings, the minister also observed that the sector has been "a net contributor to the national balance of payments."

Valley said that in recognition of the need to enhance the services sector at the national and regional levels, Government "has undertaken the development of a services trade policy which, in conjunction with other policy documents on trade, industry and investment, will guide the future direction of the services sector in a holistic and structured manner."

He said the policy is now in the final stages of drafting and will be subjected to "comprehensive public consultation" before it is submitted to Cabinet.

Referring to the results of a survey of local services companies undertaken from April to June, Valley said the 2006 to 2010 NSTP will focus on measures to address deficiencies in the system in a particularly regulatory reform in all services sectors. Valley also disclosed that the TT Coalition of Service Industries (TTCSI), that will provide a common institutional cover for all local service trade industries, will be launched in January 2006.

The minister also underscored the importance of the construction sector to Government’s developmental initiatives, in terms of improving the nation’s physical infrastructure, job creation and overall economic growth.

Valley said the construction sector (including the quarries sector) is the third largest services contributor, adding US$964 million to GDP in the 2004-2005 period and "accounting for 16.2 percent of employed persons (during this period)."

Valley expressed confidence that the Caribbean Single Market and Economy (CSME) will open new opportunities for local service providers, especially with respect to the free movement of capital and persons throughout the region.

He said this was a particular benefit from the CSME’s Single Market unit which will be operational throughout Caricom by January 1, 2006.

The CSME is expected to be operational in 2008. Valley reiterated that the CSME would be the bridgehead for Caricom’s entry into the Free Trade Area of the Americas, the European Union and the entire global economy being shaped by the World Trade Organisation.