No reduction in gasoline prices in near future

Competing demands on the national treasury have been identified as one of the main reasons for not reducing the price of gasoline in this country. Prime Minister Patrick Manning made the observation at a San Fernando Business Association (SBA) dinner/seminar at Paria Suites, La Romaine, on Saturday evening. Manning, who fielded a number of questions from business persons concerning several Government projects and initiatives, also announced that the escalating crime situation would be addressed during the upcoming week. “I propose to address the nation this week on the crime situation. The Government is not insensitive to the feelings of the business community and the rest of the national community on this matter and we will continue to take whatever steps are necessary to restore law and order,” he said.

Manning reiterated that a 360-degree radar coverage of the nation’s coastline would come into effect by year’s end, adding that Government was also in the market for armed helicopters, off shore patrol vessels and high speed interceptors. He observed that a 1994 Scotland Yard report had stated that Trinidad and Tobago was “small enough to completely eradicate the drug trade.” In response to an observation by SBA president, Daphne Bartlett, that gasoline prices could be reduced in the 2004/2005 budget presentation due to extremely buoyant oil prices, the Prime Minister revealed that the gasoline subsidy to State-owned oil Company, Petrotrin, was already in the vicinity of $820 million. “It is not a simple exercise that we have extra money and we are going to do so and so with it... we have an entire range of Government activities and you have to decide on what competing demands you will use your resources,” he said.

Manning added: “Our priorities are education first, health services second, housing third and social services fourth.” He also noted that Trinidad and Tobago’s tax laws were “extremely complex” and were “not a straight question of calculating what the price of oil is and determining how much the Government gets.” “The laws in Trinidad and Tobago, for example, have incentives in them. For example, in 1992, when we put a new tax regime in place, we did it because there was no activity in the industry and we needed to stimulate activity,” he said, adding that one such incentive was a 100 percent write-off on exploration wells that amounted to “dry holes.” Manning also took aim at a statement by the Joint Select Committee looking into the workings of the Teaching Service Commission that the education staffing system had collapsed, saying this country’s education system was the envy of a number of Caricom countries.

“Our education system in Trinidad and Tobago is not on the verge of collapse,” he said. Manning added: “In fact, just last week in Grenada, I heard a Caribbean Prime Minister expressing concern that as the Caribbean Single Market and Economy (CSME) becomes operational, bringing with it free movement of skills within the region, because of Trinidad and Tobago’s education system, we might end up dominating the activities of countries to too great an extent.” He also said that the Education Ministry had also embarked on a $2B construction programme over the next three years. Also attending the seminar were ACP (South) Dennis Graham and Petrotrin executive chairman, Malcolm Jones.