Imperatives for the Minister of Finance

Therefore, it requires the Minister of Finance to send signals by addressing some definite imperatives in his Budget statement on Friday.

In general, when subsidies are being provided by the State to an entity, it tells us that services are being made available below cost. It may be that certain social considerations might dictate that this be done. However, apart from this, providing services below cost generates a tendency of encouraging waste, a lack of competitive edge and a general lack of accountability. In this regard, TT has been a “happy haven” for subsidies.

The suggestions which are made herein are therefore confined to a few areas which, in my view, impinge significantly on the failure of TT to have, at this time, an economy which is more self-sustaining. Here are some: 1. The fuel subsidy: The case for elimination of fuel subsidies has been discussed extensively and accepted generally and therefore the minister should continue the programme of reducing subsidies on fuel by a further reduction of, say, 25 percent, thus leading to their complete elimination in four-five years.

2. State enterprises: The definition of a “State enterprise”, even though it happens to be owned by the State, implies that such an entity should be business-oriented and from which a profit is, in “normal” circumstances, to be expected. Unfortunately, in TT there has arisen a plethora of State- owned entities, many of which had come into existence for two purposes principally: (a) As tools for employment creation and (b) to fill “gaps” in the economy which, it was felt, for some reason, were not being addressed properly by private enterprise. Unfortunately, many of these entities have been making large demands on the public purse with doubts being expressed as to whether the public interest demands their continuing existence. Therefore, here is an area for serious consideration by the minister.

3. Utility and other service rates: Utility rates have been stagnant for several years. Thus, water and sewerage rates have been unchanged since 1985, ie, over 30 years. What manner of management is this? Here again the minister should take the bull by the horns by addressing the matter of the mechanisms which have been put in place to ensure that “the cost of providing services to the public is being met by revenues collected.” 4. Agriculture and agro-based industries: This is one area where, rather than their removal being advocated, there ought to be an increase in subsidies. Pivotal must be action aimed at establishing viable agriculture-based industries with the aim of employment creation and import substitution.

Errol OC Cupid Trincity, Tacarigua