Crime can strangle TT economic growth

The session, which came a day after Prime Minister Patrick Manning delivered the 2006 National Budget in Parliament, saw presentations made by Minister in the Ministry of Finance, Conrad Enill, consultant William Lucie-Smith and Ernst and Young tax expert Nicole Lawrence.

On the worsening crime situation, Ramkissoon said he felt the country should not despair. "We cannot throw our hands up."

However, he did complain that despite the clear strength of the economy and revenue inflows, Government had not been able to deliver results on the social side. "It is clear money is important, but far from the total answer," Ramkissoon said as he pointed to crime as a classic case.

He emphasised that the same methods adopted for years in an attempt to curb crime were evidently ineffective. He then accused Government of running two parallel systems.

"The economy is doing well. We have good international credit ratings. What is happening on the social side? Do we see improvement?" Ramkissoon asked. He also referred to TT’s decline on the global competitiveness index. He said the country had fallen by nine positions to 60 from a previous rank of 51, the lowest in terms of global competitiveness that this country had ever achieved.

Ramkissoon then asked if the 2006 Budget would be able to turn this decline around.

The economist warned that oil and natural gas were non-renewable resources and stressed that a way had to be found to increase TT’s non-oil exports. Ramkissoon said it was clear there was a great degree of emphasis being placed on consumption in the Budget, and noted that the Revenue Stabilisation and Heritage Funds were not savings.

On the Stabilisation Fund, Ramkissoon said this was more of a drawer in which to have funds, "so if prices fall you would dip into it to sustain the economy. The Stabilisation Fund is not savings." On the Stabilisation Fund, he said it was still being described as interim. "We have the rules, but where is the legislation?"