Money stays in Revenue fund

This was revealed by Works Minister Colm Imbert during the debate on the Finance Bill in the House of Representatives on Friday. "This administration has been putting billions into the Fund, knowing that we cannot take it out," he said.

Imbert was sharply critical of the contribution of UNC Political Leader Winston Dookeran.

The Works Minister stated that Dookeran wanted the Government to close its eyes and ears to everything going on in the world and reinvent the wheel. But Imbert revealed Government was determined to take the best developmental models, modernise, modify and improve them to take this country to developed country status.

Dookeran who spoke earlier had said that the Finance Bill, like Government’s fiscal policy, was more about creating "optics and illusions" aimed at conveying to the population a sense of prosperity amid discontent, rising cost of living and growing uncertainty and fear about when the country "will get to the edge."

Dookeran said Government measures had the short-term objective of revenue collection and ignored the long-term goal of increasing reserves.

He said the measures in the Finance Bill would encourage more consumption and less savings and investment.

Dookeran said the country was in a period where there was expenditure with no development. "You have expenditure in the skies without development on the ground, without addressing the people’s concerns," he said.

Dookeran said Government’s tax policy will discourage land operations in the petroleum sector, particularly among local operators.

Saying that natural gas prices were falling, Dookeran called on Government to make the Gas Master Plan a public document.

Imbert however countered that Dookeran was "uninformed and confused" about energy matters.

Imbert stated that the profitability of the LNG plant was based on a benchmark price of $3.50. The price of gas today is $14, he noted, saying that there was no danger to revenue base.

Imbert said Dookeran’s statements that Government had taken away incentives for land-based production were also misguided. The minister stated that with the reduction in the tax rate and the removal of the incentives, the net tax paid by land-based companies was less than before.

Furthermore, Imbert revealed Government had introduced the very revolutionary initiative of fair market value. Noting that Dookeran had stated that this amounted to a reintroduction of ministerial discretion, Imbert said the Petroleum Pricing Committee which consisted of technocrats from the Ministries of Energy, Finance and the Board of Inland Revenue, would advise the minister on the issue of fair market value.

Couva South MP, Kelvin Ramnath stated that Ken Julian had always been the real Minister of Energy. He added that with Lenny Saith holding the title of Minister of Energy, the loop is now closed, binding Saith and Julian as far as the management of the ministry is concerned.

Ramnath said former Energy Minister Eric Williams did not have an easy time, "having to do nothing more than record how many feet were drilled while Julian was running the ministry and making all the decisions. You think it is by accident that Saith is the Minister of Energy today?" he asked. He added that PNM ministers were prepared to defend this because they were either looking for work or looking to move materials that were not owned by them. Ramnath said Rowley should be the next minister to be investigated by the Integrity Commission.

Ramnath who praised Dookeran as "my Political Leader" for his treatise said if Imbert had listened to Dookeran carefully, he would understand why his colleague Franklin Khan was lamenting the poor response to the flooding in Mayaro. "Development was about people," he said.

Ramnath said in the midst of Trinidad and Tobago’s alleged boom people were marooned for several days and had to be fed crackers and cheese by the army. He spoke of Tamarind Square, saying that after 50 years of PNM development, the country had some of the worst ghettos.

Turning to the Petroleum Tax Regime, Ramnath said Government should remove the Supplemental Petroleum Tax on persons producing less than 1,000 barrels a day. "We should not have this punitive tax," he said. He accused Government of wanting to discourage the small producers because they are not perceived as PNM supporters.

Ramnath said that the Prime Minister in the midst of Venezuelan President Hugo Chavez’ virtual takeover of the Caribbean market, had not told the people of this country of the implications of these initiatives.

Ramnath said the population also needed to know what was the deal between Trinidad and Tobago and the owners of the Aluminium Smelter Plant.