Kevin Ramnarine told the Business Day that Centrica was not developing its acreage and its sale of the blocks to Shell will finally allow this to take place.

“The main prize that Shell would have gotten is Block 22, which is to the north west of Tobago and has reserves of 1 to 1.5 trillion cubic feet of natural gas,” said Ramnarine.

This, Ramnarine said is part of a larger strategy by Shell to marry the new Centrica assets with their existing North Coast marine area assets, bringing more gas into Trinidad and Tobago.

“It shows that Shell has an ambition to stay in TT for the long term and to develop a robust upstream position,” he said.

Ramnarine added that Shell was already the majority owner of Trains II, III and IV and are minority owners of Train I.

“I think it is a good thing for TT because Centrica was not doing anything with those assets. It is therefore best that the assets go into the hands of a company that is prepared to spend the money and develop those assets.”

The former energy minister also said this was good news for Tobago because the majority of Centrica’s assets were located near the island. He told Business Day, this had the potential to get Tobago more closely involved with the energy sector.

“I keep saying that Tobago has its role and cannot be a spectator in this,” said Ramnarine.

According to Centrica’s website, its interests in the NCMA-1, NCMA-4 and Block 22 gas assets were sold to Shell for US$30 million in keeping with a company decision to focus its attention on its European operation.

The company also sold assets in Canada in September.

Does it really have to be this way? And what prevents us from changing the game?

With the long holiday weekends rounding the corner, risky behaviour on our roadways becomes more prevalent. The Trinidad and Tobago Chamber of Industry and Commerce, in a partnership with Arrive Alive, would like to devote our column this week to what could be a lifesaving conversation.

We encourage motorists to make a simple change in your habits: Consider the consequences.

Have you ever considered that driving may be the most dangerous thing you do each day? We appeal to drivers: take responsibility for your own safety. If you’re planning to drink alcohol, plan also to refrain from driving and designate a sober driver. Turn off your cell phone when driving. Buckle up and make sure that your children are buckled up or secured in a car seat. Do not drive when you are drowsy. Obey the speed limit and traffic lights. Remember, not everyone on the road has a commitment to safe behaviour, so drive defensively and stay focused. In short, consider the consequences of your actions!

Many accidents involve drinking and driving, and drivers need to know that under the law, a charge for Driving Under the Influence (DIU) stays on your record for life. You can be arrested, handcuffed and even locked up overnight in a cell. This offence stays on your record and can prohibit you from obtaining visas, university acceptances, and affordable premiums from insurance companies.

There are over 800,000 vehicles on our roads and the consequence of this is increased risk. We appeal to drivers to ensure that your vehicles are maintained and inspected regularly by reputable service centres and mechanics.We also appeal to the police to enforce the law – especially with regard to the inspection of vehicles.

To the establishments that serve alcohol we make a special appeal: ensure that minors are not served alcohol, and that patrons leave your premises within the legal limit of 35 microgrammes of alcohol to 100 millilitres of breath. You can do so by investing in a Breathalyzer and become competent in using it. You can also contact Arrive Alive for Sober Zones. Please consider the possible consequences of not taking action.

Parents also have a critical role, and so we ask of you: Consider the consequences of allowing your children to drive without being properly trained and licensed, or to drive after consuming alcohol, or use their cell phones while driving and go over the speed limit. It is to your children’s benefit to ensure that they practice good safety habits, and that they respect other road users – including pedestrians and cyclists who also have a right to use the roads.

Almost every one of us knows someone whose life has been affected by a vehicular accident. Let us remember those who have been left to grieve and suffer the void created from losing a loved one, due to a collision that was preventable. Reckless behaviour serves only to spoil this wonderful time of the year and our future. Let’s not wait until it is too late, and wish that we had Considered the Consequences.

Christmas is an annual festive event and for many people it presents the ‘same old, same old’ as the same thing happens every year it comes around. Many tourists opt to spend it in the Caribbean in order to enjoy a completely different Christmas Day in a different environment and celebrate with a different culture and cuisine.

Christmas is one of the busiest tourist periods for the region, contributing a huge amount the very large tourism income. Many businesses across the Caribbean must have plans in place to cope with the surge in demands at this time of year. This is particularly crucial to hotels, tourist attractions and airports to name a few. Finance professionals must be aware of the issues around seasonality in their organisations.

Toy manufactures are especially busy during this time of year and must implement effective supply chain management in order to capitalise on the surge in demand.

According to the NPD group, the week of Christmas represented up to eight percent of all toy sales in the US alone, and is the second most important week of the year for the toy industry—the week before Christmas is the most important which accounted for 8.5 percent of sales for the year, showcasing the need for supplies to meet the very high demand across that period. Multinational toy organisations such as Mattel, which operates across diversified cultures and economies in the world, must ensure that they have the right stock during the key selling seasons.

Seasonality also has an effect on the labour. In the retail industry, businesses must hire greater numbers of workers during the Christmas season to handle the increase in holiday sales. There’s considerable stress on managers who will have to ensure adequate staffing levels are achieved for the period and ensuring that their wages can be paid.

Working capital is also affected by seasonality. During the Christmas period where there is peak productivity, the amount of working capital that a company maintains will generally be higher to cover increased operating expenses. But depending upon the nature of the industry, some of that working capital may have to be put in reserve when business and cash flow slow down.

The Christmas period is also a key selling time for making online purchases. Organisations must ensure that their online processes can support the surge in demand. Online shopping is a growing consumer trend and a failure to process the orders can affect the business financially. But even beyond the financial impact, the threat represents reputational damage to a brand which could be even more disastrous. If businesses were to experience any disruption over the next few days, they could lose customers to their competitors forever.

No sensible finance professional would leave planning for the New Year till the end of the previous year. During this time of peak business activity, the amount of time that a business owner or manager has to plan for future operations limited until they reach they’re slower periods.

Finance professionals can prepare for this need to plan earlier through enhancing their skills and competency in vision. Vision is the ability to anticipate future trends accurately by extrapolating existing trends and facts, and filling the gaps by thinking innovatively. Vision can then be turned into strategies that can be used to guide corporate objectives and operational goal setting, determine the actions needed to achieve these, and select the metrics and other indicators against which performance can be measured.

Christmas is huge example of seasonality that has a great impact on business. But it’s not the only thing that affects organisations. Climate fluctuations, government decisions and even financial reporting deadlines can affect how businesses operate at certain times of the year. What is constant though is the need for effective finance professionals. Accountants are crucial to steering businesses through these difficulties; after all accounting is the backbone of the business financial world. Through contributing to discussions about economic growth, managing finances and promoting good financial management, they enable CFOs to successfully navigate businesses as they face tough times ahead and take advantage of challenging circumstances.

Similarly, to choosing and providing a corporate gift, comparable consideration should be given to the decision regarding the provision of greeting cards such as the purpose for the greeting card, as well as what resources you may have appropriated to procuring this item. Always remember, whatever you choose to give, becomes a reflection of your brand. As such, if the greeting card is to be given to your clients, potential and existing, it is useful to ensure that the accompanying greeting card clearly demonstrates to the receiver that they are valued both to you and your organization.

An impactful greeting card has the potential to send a very strong message of relationship value. Additionally, it is useful to ensure that the cards are signed personally. In some instances, the sheer volume of cards to be issued may prove challenging to craft a personal message in each. However, it is not too difficult to perhaps ensure a generic message is printed, and to simply invest some time affixing your signature to each. I witnessed the Chairman of a Group of Companies invest two hours over a period personally affixing his signature to hundreds of greeting cards, simply because he wished to ensure that each of his clients understood the value he placed on their relationship.

It is also very important to understand and appreciate the value of cross culturalism in corporate culture. This simply means that we must recognize that perhaps not everyone in our listing may celebrate Christmas. As such, it may be considerate to utilize a more generic greeting such as ‘Season’s Greetings.’ This remains a decision that requires an abundance of thought, as a balance needs to be met between the appreciation of embracing diversity, along with embracing and celebrating one’s personal customs and beliefs.

I was asked recently how bold should a Christmas greeting card be, taking into consideration the existing corporate culture. Simply, just think how many greeting cards you receive during this period, and imagine receiving a greeting card that stands apart from the rest. Such a greeting card sends several messages including, that its sender is audacious, self-assured, willing to take calculated risks, and certainly seeking to stand out from amongst the crowd. Do not be afraid to choose a greeting card that stands out. If it is not offensive, and maintains a level of sensitivity to the occasion, I say go for it!

Decisions were taken internationally (i.e. Basel III), at the regional level (European Banking Authority capital requirements) as well as the national level (Dodd-Frank Act) to address this issue.

The UN, Organisation for Economic Co-operation and Development (OECD), EU and countries have tried to tackle the problem of tax havens, which may provide corporations and individuals with the opportunity to avoid or evade taxes.

In a globalized economy, no solitary national tax authority can fully oversee its tax base without the support of other jurisdictions. Against the backdrop of the OECD’s efforts to address tax compliance in tax havens, the Global Forum on Transparency and Exchange Information (Global Forum) has been the multilateral framework through which work on transparency and exchange of information has been undertaken since 2000.

The Global Forum has set the standards for transparency and exchange of information and oversees evaluating and enforcing exchange of information treaties in an attempt to reduce the use of tax havens for tax evasion. It conducts a two-phase peer review of each jurisdiction’s legal and regulatory framework for transparency and the exchange of information for tax purposes (Phase 1) and practical implementation of the standards on transparency and the exchange of information for tax purposes (Phase 2) (Global Forum, 2013).

In 2013, the Global Forum began giving ratings for the jurisdictions that completed both Phase 1 and Phase 2 of their reviews. The ratings are applied on the basis of four criteria: compliant, when the essential element is, in practice, fully implemented; largely compliant, when there are only minor shortcomings in the implementation of the essential element; partially compliant, when the essential element is only partly implemented, and non-compliant, when there are substantial shortcomings in the implementation of the essential element.

Ratings have been given to 113 jurisdictions who have completed Phase 2 reviews. The overall ratings show that 22 jurisdictions are rated “Compliant”, 77 jurisdictions “Largely Compliant”, 12 jurisdictions “Partially Compliant”, and five jurisdictions “Non-Compliant”.

Trinidad and Tobago is among the five which have been rated overall Non-Compliant on this basis without having undergone a Phase 2 review as elements critical to ensuring an effective exchange of information in their legal and regulatory frameworks remained not in place for more than two years after their Phase 1 reviews. (The other countries are Marshall Islands, Panama, Guatemala and the Federated States of Micronesia.)

In addition, some G-20 countries have chosen to create, unilaterally, lists of countries and jurisdictions that are non-compliant (black lists). This is the case, for example, of countries being blacklisted without due process for “primarily preventive” reasons rather than for actual non-compliance. As an example, in May 2013, France placed Trinidad and Tobago on a blacklist “primarily” in order “to put pressure on these countries… to progress towards more transparency.” There are a variety of consequences from the application of heavier tax burdens on investments in those countries (Uruguay, 2010) to limitations in the access of financial lending by international organizations.

Other consequences we need to note is the additional indirect effect produced through the influence of G-20 countries on other multilateral organizations. The International Financial Corporation (IFC) decided not to approve “any investment in an investment vehicle or holding company organized in an intermediate jurisdiction, where IFC does not have sufficient comfort as to the tax transparency of such jurisdiction. IFC will not approve new investments in any investee company (IFC borrower or guarantor, a company in which IFC has invested equity, or the beneficiary or obligor of an IFC guarantee or risk sharing facility if IFC is unable to obtain adequate comfort in the tax transparency of such jurisdiction.”

International finance is one of the few sectors where small countries hold a comparative advantage. These economies cannot be seen to facilitate money laundering. Are we intent on appearing in the international community to be dismissive of FATCA and non-compliant on Global Forums’ standards?

At TSTT House on Edward Street, Port-of- Spain, the robust fourth generation broadband technology was unveiled by several eager members of the company’s executive. Hosted by TSTT’s Marketing vice-president Camille Campbell, Dr Ronald Walcott (chief executive officer), Emile Elias (chairman) and other members of their corporate leadership team; Friday’s notable disclosure elevated this nation’s mobile capabilities to a world class level.

Generally, the new 4G LTE network provides the ability for mobiles to be more efficient. It allows the user to experience ultra fast broadband speeds on their devices. This solution would provide speeds that are as much as ten times faster than anyone in TT – a world standard.

“We stand here today, proud, to be able to announce to the nation that the launch of the very first 4G LTE Mobile Network to Trinidad and Tobago brought to you by none other than bmobile,” stated Campbell. “This is one of the many initiatives in our plans which will allow us to deliver excellent service to our valued customers. It’s all about a new lifestyle.”

In his feature address, Dr Walcott indicated that there is a direct correlation between ICT (information and communications technology) development of a nation and economic development. As it stands, bmobile is the only fixed wireless LTE network in TT and has now surged further ahead with their latest evolutionary expansion. Thus far, TSTT has completed phase one of its 4G LTE deployment, having covered Port-of-Spain and environs, San Fernando and its surrounding areas and Tobago.

“Our intention is to roll out this network nationally, at least 85 percent population coverage over the next few months, assuming of course that we can get the spectrum that’s required,” said Dr Walcott. “It is our expectation that we will be able to continue to roll out the 700MHz (gold standard) spectrum. This includes the ability to have the type of geographic coverage that we want. We would want to ensure that we can provide this solution through the length and breadth of TT so everyone could be a part of this modern and exciting era.”

Following his remarks, a short demonstration of the 4G LTE Mobile speed was conducted by TSTT’s chief Technology and Information officer, Roger Richards, and vice-president of Mobile Operations, Chevon Wilson. The pair easily displayed the intensity of the service on their mobiles by streaming Netflix and YouTube in high definition (HD) with zero buffering at an average of 67MB per second download speed and 24MB per second (upload).

Additionally, chairman Elias did not mince his words, and showed great passion in the plight towards attaining the necessary spectrum to ensure full coverage of the twin-island republic. Elias grabbed the bull by the horns and called out the Telecommunications Authority of Trinidad and Tobago on their shortcomings of being unable to provide the required spectrum to affirm total population coverage of the 4G LTE network.

TSTT though, has continued to move full steam ahead with their recent bmobile rebranding last week and additional launch of their new HD Voice which has since significantly improved hearing clarity on their mobile network. With blazing 4G LTE speeds now available, Life is On.

The project would provide much needed new supplies that could assist in reducing the persistent shortages of gas.

In addition, there are other developments which we must also be aware of as we look and listen to plans for the energy sector.

BPTT started offshore drilling in the Amherstia natural gas field in the Columbus basin off the southeast coast of the country in October of this year. The company plans to drill a minimum of three development wells which are anticipated to result in 6.6mcm/d of production.

While the signing of the agreement and BPTT’s drilling campaign are good news, it is important to remember that this country’s LNG exports declined by an estimated 19.9 percent year-on-year (y-o-y) through June.

This arose from the continued production shortfalls in the country, which fell by an estimated 13.8 percent y-o-y for the month.

Although exports have fallen, we should note that the country’s first cargo that passed through the newly-expanded Panama Canal to Mexico’s Pacific coast in late July.

If as is anticipated, there is an increase in gas production from the start of 2017, the hope is that there will be a rebound in economic growth within the country. Even if growth is experienced over the coming years, the Business Monitor International (BMI) forecasts it will remain constrained, averaging 2.7 percent growth between 2017 and 2020. It has to be noted that if growth does restart, it will be from a GDP figure that is much lower than when the recession started.

The forecast above is premised on the view that the energy sector faces a relatively weak production outlook. While historically investment into non-energy sectors has been poor, at best, and if such investment is to be nurtured, the government will have to address the poor business environment. Additionally, ongoing structural adjustments to address fiscal and current account imbalances will negatively affect public and private consumption sentiment.

By now, despite this news of the signed agreement between Trinidad and Tobago and Venezuela, there are a number of questions that arise regarding the energy sector – what are the strengths and weaknesses? Are there are any threats to the sector, and what, if any, opportunities can be exploited? There are indeed strengths of the energy sector that jump out which include relatively large reserves of natural gas. The Energy Information Administration (EIA) reported that reserves declined to 336bcm in 2015 from 367bcm the previous year. However, according to a 2013 analysis by consultants Ryder Scott, Trinidad and Tobago had estimated 3P (the sum of proved, probable and possible reserve) reserves of 650bcm, suggesting the country has sizable untapped hydrocarbons potential.

Overall resource potential increased significantly by 252bcm to reach 1.12trn cubic metres (tcm).

The findings included the encouraging activity on acreage held by Niko Resources and Trinity, where 3D data suggested an additional 252bcm could be discovered in Block NCMA 2 and 3 as well as Block 4B. This appears to provide hope that there is upside potential. We need to note that the audit did not include the resources that may be available in the recently granted deep-water blocks, which some estimates place up to 868bcm.

Other strengths include that the country has well developed liquefied natural gas (LNG) infrastructure and expertise as well as it is a major supplier of refined products in the region.

There are a number of weaknesses we need to be mindful of. Although we have earlier mentioned the 3P reserves, the reality is that new developments are possibly going to be located in more technically challenging deep water.

In addition, there is also the situation that recent bidding rounds have failed to attract interest. The country also faces the fact that shortages of gas have affected major industries and these shortages are expected to persist to at least 2017 or later, though some officials have said they may not be resolved until 2020.

Trinidad and Tobago’s oil and gas sector experiences these weaknesses but also faces threats.

These include a lower demand for our gas from rising gas production in North America, as well as increased competition from those new LNG producers around the world.

If there is continued increase in domestic energy demand, this will undermine exports and thus affect revenues and foreign reserves earnings. There is also the serious threat from the decline of oilindexed LNG pricing which could see lower gas prices and revenues.

While as a mature society we must consider such threats, we also must identify opportunities which we must seize.

These include the large areas of under-explored deep-water acreage with encouraging estimates of sizable untapped reserves.

We therefore must look to increase our incentives, which should involve favourable fiscal terms and attractive licenses to assist in attracting investor interest. The opening of the expanded Panama Canal in June 2016 enables us to access to new LNG export markets. This we must explore and exploit.

Although oil and gas reserves have fallen, the signed agreement and potential shown in our 3 p reserves offer hope. Let us use the cushion that can be provided to diversify the economy.

The hospital’s Acti ng Chief Laboratory Technologist, Elliot Samuel, explained that in 2008, the MBB was procured by the Government of St Vincent and the Grenadines (SVG) in partnership with the Pan Caribbean Partnership against HIV and AIDS (PANCAP).

“However, we were missing some key pieces of equipment to operati onalise the MBB.

Through the Embassy of Japan, we were able to source a tube sealer and two blood mixers to assist with the collecti on and preparati on of the blood before we bring it back to the lab.” Samuel explained that a tube sealer seals off the bag of blood without causing haemolysis; the rupture or destructi on of red blood cells, or leakage of blood.

The blood mixers, meanwhile, “are important to keep the units (of blood) mixing so that the anti -coagulant, which is a chemical which prevents the blood from clotti ng, can fl ow through the sample.” Samuel added that while the MBB is in the fi eld, the donated blood has to be kept “in a state that prevents it from clotti ng, and the mixers are instrumental in that process.” “There’s also a combo centrifuge which has two diff erent functi ons. One of which allows us to ensure that the donor’s hemati c rate; your overall packed cell volume, is above a certain level. This qualifi es you as a blood donor. We can now perform that test in the fi eld; assess the person’s hemati c status.” Samuel was speaking with Business Day following the offi cial handing over of blood bank equipment by Japan’s non-resident Ambassador to SVG, Mitsuhiko Okada, on November 1.

Roxanne Williams, Administrati ve Offi cer at the SVG’s Ministry of Health, said MCMH was also due to a bronchoscope on November 11 while a delivery date of late December was set for urology equipment since management had, as of November 1, not yet fi nalised the list of items they were most in need of for urology pati ents.

Asked why Japan thought it important to allocate a porti on of SVG’s grant funding to MCMH’s equipment needs, Ambassador Okada said, “non-communicable diseases (NCDs) are common challenges facing SVG and the wider Caribbean. The equipment we are donati ng will be quite useful in coping with that challenge.” The total value of the donated equipment was US $90,000.

“There is no argument where Total Factor Productivity (TFP) is concerned. It is the growth hormone that leads to sustained economic advancement and is the significant difference between countries that grow regardless of natural resources and those that ‘boom and bust’ like TT does.” This is the words of management consultant Gerard Pemberton.

“The reason we do not hear about TFP is because economists cannot measure it precisely. Each individual, each businessman, each community, each company and every department knows when it is happening or not happening.

So who cares that it cannot be measured at the top? But it can be felt on the ground, down below in all the areas where real work is done,” he said.

Speaking about today’s technology Pemberton said that apart from using it through strategic thinking “the major culprit is poor infrastructure not only in public areas as in roads and utilities but also in factories and offices. Low standards and low expectations create attitudes that claim excellence out of mediocrity.

We worship mediocrity.” What needs to be done is to pick “the best countries in each activity and set that as our national benchmark,” he stated.

Regarding economic reform, the critical challenge is “transforming human behaviour.” Using Trump as an example, he said whether or not he was using tweets or sound bites he was changing human behaviour. “But if the US is strong and talented, innovation will crest a wave of massive self-managed change even in bureaucracies. The mission, the mantra is higher TFP,” said Pemberton.

He said this was what allowed Cuba to survive for decades without resources, without a plan.

Pemberton advised, “Make the best of what you have and make what you have the best.” He said this country did not need a Trump or Castro. What this country needs is “solidarity, togetherness behind a common set of agreed moral and spiritual values.” In the present scenario TT can dramatically improve its TFP by using the opportunity “to better develop money and capital markets through a modern transformation process.” He then gave an example in banking that too many bank customers complain about the inefficiency of transactions, even in simple ones like processing cheques. There is a need to be more efficient in meeting the needs of savers and investors.

“Years ago,” he said, “a former PM was so serious about financial sector reform the he had set up a White Paper Committee; a Green Paper Committee and a 2020 Vision Committee. Maybe we need a 2017 Committee of young, dynamic minds with a diktat to ensure financial sector reform.

“Improvement in this crucial sector,” Pemberton added “also requires the State to play a more active role through a special purpose, centralised Statecontrolled agency to organise the issue of Government debt securities with capital market development goals in mind.” For several decades now this word diversification has been bandied about by almost everyone, but still no one has come forward with any practical, sustainable plan. According to Pemberton, “We need the drivers that will encourage and sustain innovators.

“Imagine we can port mobile numbers but can’t port pensioners.

We can forecast storms but we can’t avoid regular flood damage.

We have superb human resource skills but we systematically put people, good and bad, in the wrong jobs,” he said.

“No single answer will ever achieve consensus. Those kinds of solutions need brave, inspired leadership. We need to be knowledgeable followers filled with faith and hope.

We must get leadership roles straight. We always need to hear the Opposition. We need the government to act.

“If we value the TT dollar on a trade-weighted basis, that would be a quick pick to promote TFP, the most important justification for that change. The International Monetary Fund (IMF) has the calculations in its last Article IV Report available on the IMF website. The country has to decide, but we have not heard a focussed discussion in Parliament,” he concluded.

She noted that “the longstanding partnership with the Unicomer Group has added value to our economy over the past years.

Direct investments, like the one we see here today, have expansive, positive, direct and indirect spillover effects on our society by shoring up local capabilities and talent, as well as supplying capital, technology and management resources.” Senator Gopee-Scoon expressed pleasure to see, among the outcomes, the creation of employment for persons who live in the environs. “This investment created 250 jobs during construction and is expected to generate some 500 permanent jobs when the full project is completed.” She gave the assurance that “the Ministry of Trade and Industry, and its agencies, remain firm advocates for investment that builds on our strengths, helps retain and create new jobs, builds competitive industries here at home; and helps to deliver our expertise to the world. Unicomer’s resolve to strengthen its presence in our country reflects the viability and profitability of being here which therefore creates a win-win situation for both the Unicomer Group and Trinidad and Tobago.” Minister Gopee-Scoon also reiterated the commitment of the Ministry of Trade and Industry to ensuring a facilitative environment for all businesses, whether they are small or large, domestic or foreign. In giving a challenge to the private sector, she said “Trinidad and Tobago has had many years of enviable economic growth, but this does not safeguard us from the challenges posed by volatile energy prices and global competition.

As we set our sights on the goal of wider diversification and sustainable economic development, the Government encourages private sector players to follow Unicomer’s example in fortifying their respective brands, and embracing innovation.” Mario Guerrero, vice president and managing director, Unicomer Caribbean & USA, indicated that the opening of the new store is but the latest manifestation of his Group’s commitment to the country and the people of Trinidad and Tobago.

“As we continue our expansion throughout the Caribbean, we invest with confidence in the future, creating new employment opportunities for many as we increase our retail footprint adding new stores and new chains to better serve the people of the 15 Caribbean countries we serve,” he said.