?Introduction
As I listened to the Hon Minister ramble on for more than three hours I recalled the saying of the Seventeenth Century French writer and moralist Francois de la Rochefoucauld (1613�1680), who so long ago said: "As great minds have the faculty of saying a great deal in a few words, so lesser minds have a talent of talking much, and saying nothing". I do not wish to be uncharitable to the Hon Minister but I am sure most of you would agree that she had very little to say, and took a rather long time saying it. I believe that the Minister lost her way because, unlike the UNC in Government, the PNM does not start from an ideological mooring, but rather acts as it suits their political fancy (by vaps, as it were) regardless of the consequences to the country.
The UNC starts from its belief that the purpose and function of any government is the welfare and well-being of all its peoples on a sustained basis; the Budget is therefore not a statement to be taken is isolation: it is part of a continuum designed to bring the greatest happiness to the greatest number of our citizens. The emphasis and objective are, and must always be, the happiness of our people. That being so, the big and obvious question must be: Who determines what will make our people happy? This simple answer is: the people, of course. Not he PNM; not the little corrupt cabal that runs the PNM whose sole concern is their own welfare and well-being; and certainly not the Member for San Fernando East or his ubiquitous obeah woman. That is why prior to this our Budget response we embarked on a series of consultations with the several stake holders in the society to elicit their views as to what they regarded as important in their lives and what they wanted. I am told that the Government also went through similar motions with several organisations, just as they did last year. But just as they did last year they ignored most of what the people said. That is the difference between the PNM and the UNC. And that is why after nine years the people still say that the years between 1995 and 2001 were the best they have ever had, and that the UNC was and has been the best Government this country has ever seen...and today, after nine years of PNM they yearn for those halcyon days.
Over the past two weeks, we, on this side, have met national stakeholders to hear from them what their concerns were and how they felt these should be addressed. I would like to extend my sincere thanks to all these patriotic citizens who took the time to participate in these consultations, and for informing my presentation here today. What is of great concern to me, is the fact that many of these persons and groups advised that they had also spoken to and expressed the same issues to the Minister of Finance. As such I am as disappointed, as I know they are, that in her budget 2010 document, she chose to gloss over the major problems facing the citizens of this country and opted instead to wallow in statistical misdirection in her attempts to justify her government's expenditure of over $300 billion since 2002. I recall that during the debate on the 2008-2009 Budget we on this side, after consultation with the people, told you that the critical problems affecting the people in general were crime, the lack of proper health care facilities, the lack of a regular supply of pipe-borne drinking water, unreliable electricity, increasing poverty particularly among the aged and those on fixed incomes, bad or non-existent roads, high prices, and in particular high food prices, failure to deal in a sensible manner with agriculture, poor drainage and flooding, lack of access roads to agricultural lands, the use of agricultural lands for housing, real unemployment and the lack of purpose and direction in training and education and many more; These were some of the matters which required urgent attention but you ignored the needs of the people because your Budget is not about that. Your Budget is how you stay in power.
Instead of addressing these simple problems plaguing the people this PNM Government presented a Budget of over $50 billion...and after an expenditure of such a huge amount of money the people are still without a solution to the problems I have just enumerated. It is no wonder that the 2008-2009 Budget was such a disaster. You started by basing the Budget on an estimated price of oil a $ 70 per barrel and gas at $.4 per mmbtu. The fallacy of this kind of budgeting is that you can fix the price of gas and oil at any arbitrary figure and so provide projected revenue at any level you want; but that is revenue on shifting sand. If you base your expenditure on that kind of uncertainty then what do you do when you do not realize it. You go into a tail spin. If however you start from the cost of basic needs then the people will get the most important things first before the money runs out. Water, roads, health care, drainage before tall buildings. Your approach is wrong. Mr Speaker, the Minister premised her budget statement with a lie. Exercising her best public relations gimmickry, the Minister of Finance titled her Budget "Strengthening efficiency, addressing the challenges".
Unfortunately her presentation did no such thing.
Having safely extricated herself from the fate of other less fortunate CL Financial depositors, the Minister seems to have lost sight of what the real challenges facing this country are. As she did in last year's Budget she does so again in Budget 2010. She does not even make the slightest attempt to address the real challenges facing T&T:
�2 Runaway crime
�2 Massive corruption in the state sector,
�2 poverty,
�2 sabotage of the agricultural sector,
�2 over reliance on the energy sector,
�2 inadequate and inefficient health sector,
�2 the abandonment of the aged and the those in assistance of social assistance,
�2 state sponsored environmental destruction
�2 worsening business environment
�2 massive flooding
�2 high food prices,
�2 inadequate access to housing for the poor and middle income
�2 difficulty in accessing foreign exchange,
�2 collapsing public infrastructure
�2 productivity loss due to traffic jams
�2 underemployment
Budget 2010 continued in the vein of the past seven budgets: making false promises they have made before which they never intended to keep even when they had all the money in the world. Do you think they will keep these promises now when money is scarce. A preliminary assessment of the state of this nation is that the biggest problem we have is the government itself. The problems to which I have just alluded pales into insignificance when you think about the corruption, incompetence and maladministration of the PNM led by Prime Minister Patrick Manning.
Fiscal indiscipline
Mr Speaker, the Honorable Minister of Finance spent the better part of her speech patting herself and her colleagues on their collective backs and repeatedly boasting of the government's sound fiscal discipline and management of the economy. Mr Speaker, joke is joke; but does the Minister really believe that the population of this country is so stupid as to swallow that self-serving panegyric? One year ago, she came to this House and presented a budget with a projected surplus. Within weeks she had to review the budget. And then not once but twice! And still end up with a deficit larger than the one predicted. Mr Speaker, that is the exactly the point I was making earlier on: they had no priorities and so could not adjust their projected expenditure. Had they started with a list of priorities they would have been able to adjust. And to add insult to injury the Minister comes to this Parliament and has the temerity to say:
"In making the decision to continue our expenditure programme, the records will show that we got it right." (pg 4 Budget Speech 2010) The records show that you got it all wrong! Not only is the Government unwilling to accept responsibility for bringing this country to its knees, the Honorable Minister of Finance actually comes to the Parliament and expects the population to believe that having to borrow $8.5 billion dollars to cover state sanctioned corruption is a good thing? And as with all things under the PNM is gets even worse!
The Minister would have us believe that the fall in revenues was unpredictable, no one knew that energy prices were going to fall, and that is why the deficit is as large as it was last year. Of course, no one knew that the price of oil and gas would fall. That is precisely why you should priorities expenditure.OK. So you did not know that the price would fall last year. But what about this year? This year the Minister knew long in advance that energy prices would be low and that revenues would be low as a result. Yet, Mr Speaker she has returned with another whopping deficit of $7.7 billion dollars. I like this Minister. She appears to be smiling in the face of every adversity...or least, she appears to be. She came to the Parliament and tried her best to convince the nation that all is okay with the economy and with the country despite the drastic reduction in revenues, and she continues to spend, spend, and spend subjecting the future generations to increasing debt obligations.
Against the backdrop of:
�2 a global recession,
�2 falling demand for our manufactured goods,
�2 domestic contraction of the economy,
�2 low prices for our primary export products with projections for continued low prices and
�2 falling revenues,
The insistence of the Government to continue the same level of expenditure can never be justified. It is illogical, it is irrational, and makes no economic sense. I am sorry to say this but it is simply stupid. This administration, having long shut its ear against the cries and pleas of the population, continues in merry oblivion to the realities of the crisis in which they have thrust this country. In a period of two years, the Minister has increased the public debt of T&T by a massive $16.2 billion which is equal to 44 per cent of the government's projected revenue for fiscal 2010! This can be nothing ?short of gross fiscal mismanagement. I predict that the Minister's freehandedness with the public's money will result in a deficit in 2010 of more than the $7.7 billion she claims here today.
Riches to rags
It is said that those who do not learn from the mistakes of history are condemned to repeating them. Or, to put it another way doing the same thing over and over expecting different results is the first sign of madness. Thirty years ago, the PNM took this country from riches to rags. During the oil boom of the 1970's the PNM Government was characterized by wild excesses, throwing money at every national problem without addressing the issues; productivity levels collapsed while income levels rose, make work projects developed as government gave handouts rather than provide productive employment; imports skyrocketed as food production was sacrificed to the energy sector, state sanctioned corruption flourished and squander mania at a level previously unheard of level was the order of the day. Today, some thirty years later, the PNM has repeated the feat, but on a much much larger scale. The last seven years has witnessed a repeat of the wild excesses by the government. In one year this government spent more than previous PNM governments would have during a whole term in the 1970's–such was the level of excesses. They made the same mistakes–the make work projects, the import dependence, the failure to diversify the economy, the state sanctioned corruption, the failure to train future generations, the mega projects, the inadequacy of the savings. Once more the PNM has taken the country from riches to rags. This time it took a mere fourteen months to accomplish. Mr Speaker, if the people sound irritated it is because they are. I am of the firm view that this Minister and her Government are guilty of criminal neglect.
For seven years the Opposition UNC came to this house and pleaded with this government to restrain itself from the excesses it practiced. For seven years we cautioned the government of the need to save, for seven years we warned the government of the potential for price shocks and the severity of the impact it would have on the domestic economy. For seven years the Opposition UNC cautioned the government about putting all its eggs in one basket, and the need to diversify the economic base of the country. For seven years the PNM refused to listen, and as revenues increased, expenditure increased simultaneously. This country earned almost $250 billion in revenues over the last seven years. It has spent $292 in the same period. Yet today our citizens still have to sleep on the floors of our nation's hospitals because of the absence of bed space, our education system is irrelevant to our needs as a developing country, functional literacy remains a significant issue, our agricultural sector remains underdeveloped, the manufacturing sector is in decline, the minimum wage is unacceptably low, tourism is in decline... the only thing growing in this country is crime and under this PNM government criminal activity including white collar crime.
Management–As an effective management tool, budgeting involves planning, coordination, control, evaluation, reporting and review. It follows then that the budget must contain sufficiently specific or quantifiable targets, the attainment of which can be easily be determined by costing or performance audits. Thus, the occasion of the annual budget presents an opportunity for the stewardship of the government to be assessed in regard to the level of achievement of the objectives which would have been identified. This is why most Budgets begin with a review of the previous year's expenditure, specifically in terms of attaining the identified goals. For the first time that I can recall this year the Review of the Economy is missing from the bundle of documents given to us. Planning–The annual budget should provides a plan of action for the next financial year, specifying the government's long term and short term objectives and quantified targets, and therefore requires the identification of the government priorities. At the level of projects and programmes, the choice is between alternative courses of action so as to address the traditional public sector goals of, (i) optimal allocation of resources, (ii) stabilisation of economic activity, (iii) improvement of the standard of living (usually assessed as an equitable distribution of income) and (iv) the promotion of economic growth are all pursued in an organisational context. In the short-run, achievement of these goals has to be coordinated by means of administrative and legal instruments among which budget policy and procedure are the most important. Planning in the budget process reflects political pressures as well as financial pressures and financial analysis.
Moreover, the budget statement must reflect the ideology of the government, manifested in the identification of the government's priorities, its policy objectives and specific targets to be attained during the fiscal year. And the Public relations (PR) manifesto called the Vision 2020 Operational Plan 2007-10, 2008-2009 Progress Report is a study in misdirection. As an example, on Page 29 the Government lists with great pride that 95 per cent of the population was now receiving a potable water supply. On page 271, the report indicates that in 2008, the same 95 per cent of the population had a potable water supply. It goes further, in 2008, 76 per cent of the population did not have a water supply on a continuous basis. One year later, Mr Speaker, in 2009, the figure was still unchanged. That means that despite the expenditure of $2.4 billion on WASA in 2009, there was no improvement in the number of persons receiving a water supply. So where has the money gone?
Moreover, according to the data, it cost taxpayers $10 billion between 2005 to 2009 in order to have a 3 per cent increase in the number of persons who receive a potable water supply. Using CSO population figures it was estimated that 3 per cent of the population translated into 39,257 persons. And here is where it get scary, Mr Speaker, by using the data provided by the government, I have calculated that this government paid an average of $254,731 per person, to provide a potable water supply to an individual. A Quarter of a million dollars per person Mr Speaker. It gets worse. If we assume, that more than one person lives in the same house, let's for sake of argument say two persons per house, and this is extremely conservative, it means that it cost tax payers half million dollars per house to have access (not a regular supply, mind you) to potable water. At those figures it is cheaper to purchase a small reverse osmosis machine for every single one of those persons, and never have to worry about WASA line maintenance again!
So you see Mr Speaker, the data provided concealed more than it revealed.
Budget fallacies
2 per cent growth 2010:
This Budget contains many fallacies. The Minister of Finance, in the midst of a global recession and the first tentative steps of what may be recovery on the international scenario, and in the midst of a significant downturn in the domestic economy, manages to project a return to positive growth in 2010?
While I respect her learning in the law, this Minister has demonstrated absolutely no knowledge of basic economic principles and management practices since she has been in this house; claims not to understand what "roll over" means...in the insurance industry, of course, but incredulously is predicting a 2 per cent growth in real GDP in fiscal 2010? How has she come upon this figure is anybody's guess? If there is going to be a 2 per cent growth in 2010 then there must be certain sectors within which the Minister expects there will be sufficient growth to lead to an overall 2 % growth. Which are these? It cannot be oil as oil prices and output are low and are not expected to grow in the short term. It certainly cannot be gas because even the Minister accepts that gas prices are expected to remain low for some time and this will discourage exploration. Is it agriculture? That is impossible given that the sector contributes less than one per cent of GDP on an annual basis? Is it tourism? Manufacturing? Construction? What?
Mr Speaker none of the current sectors are in a position to generate adequate value added to pull this economy out of the hole it is in, and certainly the Minister's 2010 budget offers nothing to spark a resurgence in ANY sector of the economy. We on this side have absolutely no confidence in the Minister's projection of positive growth in 2010. We see nothing to engender public confidence and to stimulate consumer demand. We see nothing here to stem the fall in business confidence. It is clear that she is seeking to generate business confidence but her words and the actions of the government do not match. The Minister has been wrong on every projection she has made about the economy in the last two years, and we are certain that she is wrong again. In fact it appears that the Minister has pegged her hopes not in the development of the non energy sector, but in the rebound of natural gas prices. International events indicate that this is foolhardy, and once again, reckless.
Motor vehicle related taxes
I now turn to the motor vehicle and related taxes. The UNC philosophy is premised on a simple tax code, with low taxation rates but with high compliance. In this scenario, the existence of nuisance taxes is to be avoided. This population will recall that during the term of the UNC government we did not raise a single tax even though oil was at an average of $10 per barrel. Nuisance taxes make life too difficult for the ordinary people. And the taxes expected to be raised by increasing the fines on traffic offences is based on the presumption of continued lawlessness. This is the first time I have seen the success of a budget based on an increase in crime. It is in this light that the increased penalties should be examined. A budget is not the place to deal with fines as a deterrent road fatalities. That is for a legislative and administrative programme. Mr Speaker, the Minister is not foolhardy enough to believe that a $1,000 fine for a broken taillight or the 1,000 per cent increase in the fine for illegal tints will stop the carnage on the nation's roads. Certainly she does not think that the population believes that this was the purpose of the increased fine. As a matter of fact I find it curious that the Minister seems more intent in preventing dark tints than in penalising speeding drivers.
Mr Speaker, the fine for murder is death and yet every day someone is murdered in this country. These fines will have no effect on the rate of road carnage because of the increase in fines because the resources required for policing are woefully inadequate. There are simply not enough police officers available for these fines to make a difference. What are required are not increases in penalties, it is increased policing, and in the absence of that , these fines must be viewed for what they are: a desperate attempt by a government on the ropes to grab money from anywhere ?possible to fund their squandermania.
If the Minister was really serious about stopping the carnage in the roads, police officers would not have to hide behind posts and raise a stick to signal a speeder. They would be equipped with speed guns. If the Minister was really serious about addressing the carnage on the road she would have implemented the use of the breathalyser. The conclusion is obvious. These fines are pure and simple desperate attempts to prop up government expenditure. Incidentally, what became of all that camera equipment that was brought in for the Summit Conference. Are they still there? If they are there are they working? From a $50 billion budget last year to picking the pockets of motorists to fill the void cased by squandermania, how far we have fallen, and so fast. Mr Speaker there has also been some issues raised by motorists about the process used by the police to determine the legality or illegality of the tint on vehicles. I am advised that a special piece of equipment is required to prove that the tint is illegal and that therefore the Ministry is putting Licensing Officers at a disadvantage in the execution of their duties. And talking about the Licensing Office can this Government explain why this authority is not computerized? Would that not reduce crime?
Property Tax
I now turn to the infamous and notorious Property Tax. Mr Speaker, for the first time we have seen government introduce tax on wealth. The Minister advises that property taxes are old and colonial and she is therefore moving to modernise this. But does she understand what a property tax is? A property tax is a tax that is levied on property in a particular jurisdiction and the income from the tax levied is pooled with other property taxes from the jurisdiction to be used for the benefit of that jurisdiction in which the property is located. It has its rationale in the US School districts system where property taxes finance school boards, and the level of tax usually reflects the standard of the school in the area.
Applying a property tax in the scenario she has presented is regressive, as it is related to the provision of no service and the revenue goes into the consolidated fund. This too is to be seen for what it is, a desperate attempt to raise funds to satisfy the government spending craze. The property tax is also regressive for another reason. It penalises initiative. Mr Speaker, in T&T there are many pensioners who have managed to save their money and have invested it in a home during their working lives. Their saving then is manifested in their home. These persons are now being asked to find what is a substantial sum to pay on an annual basis when they are already in a difficult situation of fixed and low incomes.
The Government encouraged many persons to acquire homes via the NHA and now the HDC. These are poor persons. The government offered them grants and loans to fix up their homes. And now, like a thief in the night has blindsided them with this tax. A small three bedroom home in an average neighborhood may be rented out for about $5,000 per month, or $60,000 per year. The owner of this home would now be expected to find $1,800 per year which is a substantial figure for a pensioner! Moreover many of these persons would already be servicing mortgages! The punitive effect of this tax will be felt most by those who built in what were once rural areas like Princes Town, Couva, etc., which have become towns and these who live along the major roadways of this country. We on this side believe that this tax is regressive and I want to suggest that the government reconsider the financing of its wastage in another manner. But as with everything under the PNM it gets worse. What happens if the homeowner has a parlour or a produce shed under his house within which he sells extra produce form his garden as is common along the roadways of this country? It becomes a commercial property and will now be levied at twice the rate of a residential property! I wonder too Mr Speaker about who will be responsible for the assessment? It is to be noted that the Minister is referring to a nationwide exercise? And how frequently will the assessment be done?
Frankly, Mr Speaker, this tax sends the wrong signal to citizens. It discourages home ownership and this will have implications for the construction industry which the Minister is seeking to stimulate. It hit the middle class squarely in the solar plexus. The Minister has taxed foreign used cars and homes. Like last year the Minister seeks to penalise the middle class and the poor. She seeks to penalise the investment in property. Soon under the PNM only the very rich will be able to afford to buy new vehicles and to own a house. In classic fashion however, the Minister has given with one hand, incentives to stimulate the construction sector and has with this tax, neutralized the effect of the incentive.
Broken Promises
A Government of broken promises; that is what the PNM has become. A Government of lies, deceit and hypocrisy. There is a saying attributed to the Prophet Muhammad, peace be upon him, that warns, and I quote: "There are three signs of a hypocrite: when he speaks he speaks lies, when he makes a promise he breaks it, and when he is trusted he betrays this trust." Mr Speaker, every year since 2002, the Minister of Finance comes to this Chamber and commits to undertaking projects, which in many cases includes funding for them in the draft estimates and in the development programme, or in the PSIP. Unfortunately it has become the habit of the PNM government not to undertake these project, often with no explanation and no accounting for the funds assigned to them. Sadly many of these projects are actually critically needed infrastructural projects, and in many cases public works such as schools, preschools, hospitals, highways, drainage and the like. In other cases policy related promises including National Development Plans are also scheduled and never delivered. We are all too familiar with some of these projects. They have been with us for a while, repeatedly promised by this Government and never delivered. As such, budgetary promises tend to be viewed with suspicion and sarcasm. We are convinced that if the government did not deliver the projects which they promised when they had money, they most certainly will not do so now, when funds are scarce as a result of the current international and domestic economic climate and their profligate expenditure.
Moreover, I find it shameless that the current Minister of Finance would have been reduced to extracting from her predecessor's bag of broken promises, to pad her Budget Speech 2010. This is an unprofessional practice, and an unethical one. Plagiarism should apply to politicians, not only to priests. I am certain that the minister has no intention to implement these recycled commitments and as such to include them in her presentation is nothing short of intellectual dishonesty. The result has been a population that no longer has confidence in the words of the government even when they are enacted in statute. In the case of this government, history has shown us that they cannot be trusted at all. Sadly, the Minister of Finance, a political neophyte has shown how quickly she is able to adapt to the PNM tradition of making promises meant to be broken. In listening to the Honorable Minister of Finance on Monday, if the population had a sense of d�j� vu, a strange familiarity with many of the proposals and projects identified in the presentation, you were not alone. So was I, all too familiar with some of the proposals and broken promises to the national community. Let us look at just a few of them.
Praedial Larceny
In her recent presentation, the Minister of Finance announced with a straight face: "Mr Speaker, praedial larceny is a major disincentive to agriculture. This Government is committed to putting an end to this illegal activity and will soon implement the Agriculture Ranger Squad (ARS) to reduce the incidence of theft within agricultural communities. The Squad will provide a 24-hour police presence in designated agricultural areas. The first phase of the project is earmarked for the county of Caroni with focus on the Carlsen Field community." (Budget 2010) One year before, this very Minister in this very House stated: "Mr Speaker, praedial larceny is one of the greatest scourges that plague our agricultural sector and is a definite disincentive to potential investors in the sector. The Government will be taking stringent measures to put an end to this illegal activity. At the National Consultation on Food Prices last year, a new arrangement including support from private security services was announced to treat with the question of Praedial Larceny" (Budget 2009).
For reference Mr Speaker you would recall that we had proved that a Praedial Larceny Squad existed in the establishment and had long been so. In fact it carried a regular complement of 39 persons of varying ranges. The praedial Larceny squad still exists in the 2010 estimates of expenditure for the Ministry of Agriculture. The 2010 Agricultural Ranger Squad will in fact have the same function as the Praedial Larceny Squad and for all intents and purposes is the same in principle. It appears that the Minister simply renamed the Squad. What an achievement! But it gets worse. The PNM Government promised a Praedial Larceny Squad as far back as in the Budget Speech for fiscal 2007. The Minister of Finance said then: "Government will provide funding, manpower, equipment and adequate logistical support for the establishment of a Praedial Larceny Police Unit." (Budget 2007) Even then it was already a part of the Minister of Agriculture. The Praedial Larceny Unit was not established in 2007 as promised. But this new Minister of Finance has the dubious honor of making the same promise in two consecutive years. We look forward to 2011 to see a return of this promise because it is clear, if the government did not implement the project when it had money, it certainly was unlikely to implement it in times of low revenues.
Point Fortin Hospital
Perhaps the most repeated promise, and by extension the one they most fail to keep is the promise to build a hospital in Point Fortin. This year the Minister said: Mr Speaker, approximately 500 beds will be available upon the completion of the Point Fortin, Arima, Sangre Grande and Scarborough hospitals which will be constructed on a phased basis. The irony is that the Minister appears blissfully unaware that the Point Fortin Hospital has not been started up to the time of her speaking. In the 2004 Budget Speech, the?Minister of Finance had promised: "Construction is expected to begin during this year on: the National Oncology Centre at the EWMSC, the St James District Health Facility, the Point Fortin District Hospital" (Budget 2004.) It didn't start then. In 2005 the promise was repeated thus: "Construction of the new Point Fortin Hospital will also start in 2005." (Budget 2005)
It didn't start then either! In the 2006 Budget Speech once more the Point Fortin Hospital was promised. The Minister said then: By 2007, we expect that construction of the Point Fortin and Scarborough Hospitals, the National Oncology Centre and a new wing of the San Fernando General Hospital will all be completed." (Budget 2006)
Presenting the 2007 Budget, the Finance Minister said: The construction of the Point Fortin and Scarborough hospitals, as well as a new wing of the San Fernando General Hospital are projected to be completed in 2007. The construction of the National Health Laboratory will also commence in 2007. Budget 2007) They did not build it in 2005, 2006, 2007, 2008, 2009 and they certainly will not build it in 2010. On the Promise of highways, or is it the highway of promises? Mr Speaker the Minister of Finance announced that by the end of March 2010, it is expected that construction will begin on the following new major highway projects:
�2 The extension of the Solomon Hochoy Highway from San Fernando to Point Fortin;
�2 The construction of a new highway from San Fernando to Mayaro;
�2 The extension of the Churchill Roosevelt Highway from Wallerfield to Manzanilla, and
�2 The construction of a Causeway from Mucurapo to Chaguaramas. (Budget 2010)
These too were not new ideas having been promised several times before and not delivered. In the 2004 Budget Speech the Minister of Finance had promised that in 2005, the construction of the Solomon Hochoy Highway to Point Fortin was scheduled to begin. In 2005, the Minister's budget speech committed the government to extend the Churchill Roosevelt Highway from Wallerfield to Manzanilla. The causeway from Mucurapo to Chaguaramas was promised in the 2006 Budget, as well as the construction of a new highway from San Fernando to Princes Town. In the 2007 budget again highways were promised to San Fernando to Point Fortin, San Fernando to Princes Town, and Wallerfield to Manzanilla. Mr Speaker the mega farms were promised before, the CNG was promised before, and the construction of several ECCEs are an annual promise now.
Exchange rate
I now turn to the Exchange rate. We on this side are aware that matters regarding the exchange rate must be handled carefully. We are committed to a stable exchange rate, one that is predictable and which will remain stable for an extended period of time. But the actions of this government are causing us on this side and citizens generally, great distress. On one hand central bank rationing foreign exchange to citizens and firms, and thus the market is being tightly managed. But the government fiscal indiscipline over the 2008/9 and in the upcoming fiscal year 2010 will end the predicted reduction in foreign exchange earnings from the energy sector has put severe pressure on the exchange reserves. In last year estimated that Central Bank lost about $1.5 billion of foreign reserves in trying to meet consumer demand. Our foreign exchange reserves then, fell by $1.5 billion. At that rate we will likely lose another $1.5 billion in the new fiscal 2010. The Minister is spending at a rapid rate, living in the hope that energy prices will recover while the rest of us are living in knowledge that things are bad.
The Minister is engaging in a course of action which will burn a huge hole in our reserves in fiscal year 2010, and I warn of a very real possibility of a serious problem. In case you think I am being alarmist, I want to remind you that the PNM in 1983 to 1986 engaged in the same reckless behavior and burned all the country's savings in three years resulting in bankruptcy. The level of the burn by this government is substantially greater, so the crisis may emerge much sooner. The Minister must make a definite statement about the foreign exchange parity. Already, despite being managed by the Central Bank, citizens are having grave difficulty in accessing foreign exchange and are being subjected to a process of rationing. Manufacturers are unable to guarantee payment for inputs. Containers at the port are accruing charges daily as payments are delayed, so affecting adversely their competitiveness. Mr Speaker, the Government's reckless expenditure pattern is pushing this country towards a possible devaluation in the short term, and I expect that the Minister would make a firm and authoritative statement, one that she could back up, in regard to the government's policy about devaluation. I want to point the Minister in the direction of true management. Under the UNC, the price of oil dropped by 50 per cent from UD$ 19 to US$ 9 while the UNC was in office. The effect on the exchange rate was zero. That is prudent management Mr Speaker, of the kind that this Minister and her Government are incapable. In boom times when money is aplenty, almost anybody can manage an economy. It takes knowledge and ability to steady the economy when funds are scarce.
Business
Our manufacturing sector continued its precipitous decline throughout 2008 and now 2009, as the government focused on make work projects and handouts rather than the development of permanent well paying jobs, so the Prime Minister could declare full employment at around 5per cent back in 2007. I guess now that more than 10,000 jobs have been lost and the unemployment rate has once more reached 5 per cent, the Prime Minister will continue to crow that the country has again achieved full employment. This would be the first Government that achieved full employment by a loss of jobs. Mr Speaker, when the PNM was elected into government in 2002, this country was ranked as having the 39th in the world in terms of competiveness. By the 2007 General Election, the ranking had dropped continuously to 84th place. According to the 2010 Report, by 2009 this country had fallen again to 86th place in terms of its economy's competitiveness. With all the money at its disposal, and as the Prime Minister continues to dream, asleep at the wheel, about Developed Country Status the Nations ability to compete on the global scale continues to dwindle. But as with all things under this PNM government, it gets worse.
You see while the overall rating of the economy is 86th, the country fared much worse in terms of some insightful sub indices: Under the sub index measuring "public trust of politicians" this country was ranked at 100! Colombia was ranked 12 places above T&T under the PNM at 88! I see some members smiling on the other side–do not. There is more. How do you think this country ranked in regard to the assessment of the extent of the diversion of public funds to companies, individuals or groups? T&T was placed at 81 meaning that this country was more corrupt than 61 per cent of the countries in the world. Do you see why this government cannot account for the billions which it bilked from the treasury? Do you see why so many projects were left undone? Do you see why this country's international competitiveness is low? When the assessment was done on the sub index favoritism in decisions of government officials when deciding on policies and in the award of contracts this country was ranked at a sickening 107th out of the 133 countries in the study. Every country in the Caribbean ranked above T&T! Out of a rating of 1 for governments which usually favor well connected firms and individuals and 7 if corruption of this source never occurs, T&T scored 2.3 which suggests massive corruption in the award of contracts! The world knows that this government, led by the Honorable Patrick Manning is corrupt to the core! And they have not even heard of the open pillage of the country's treasury which the UFF inquiry is revealing!
If you feel sickened now Mr Speaker then perhaps you should not listen to the next one.
When the wastefulness of government spending is assessed, it comes as no surprise, given this level of corruption, that T&T placement was poor. Of the 134 countries surveyed, it was found that only 44 were guilty of more wasteful spending, than this PNM Government. One of the core rationales behind this GCI assessment, is to identify factors which inhibit the economy's competitiveness so that a nation can take the relevant action in order to ensure the development of its economy and the future prosperity of its citizens by extension. With this in mind, and given all that I have just revealed, it is obvious that this government is a parasite leeching the life force out of this country for the benefit of its friend and family of its friends. In order for T&T to develop and to achieve its true potential, it is imperative that this PNM Government, those Ministers opposite must be removed forthwith. The second index produced by the Global Competitiveness Report looks at the microeconomic factors which determine an economy's current sustainable levels of productivity and competitiveness and is called the Business Competitiveness Index. This index is premised on the understanding that while a sound and strong economy provides the opportunity for a country to create wealth, it does not in itself create wealth.
Instead it is the quality of the national business environment and the level of productivity with which a nation uses the human, capital, and natural resources available to it, to produce goods and services which in turn creates wealth. When the PNM took over office from the UNC in 2002, the Business Competitiveness Index determined that T&T had the 39th most competitiveness environment. One year later the PNM had taken the ranking to 48th place and by the time of the last General Election in 2007, PNM lack of concern for this country's business environment had pushed T&T into 74th place. The absence of a solid national business environment does not simply mean that firms would be placed at a disadvantage in the international market place, it also means that new firms will not be inclined to enter the domestic market. The fact that this country has been able to attract substantial direct foreign investment over the past seven years is not discounted. You see, what investment did come here, only did so after the government was forced to offer substantial tax concessions, guaranteed subsidized natural gas and so on. In some cases the government had to spend billions in infrastructural development, before the investors would look past the country's poor ?business environment.
Once more, this government failure to develop the national business environment placed this country at a disadvantage and to compensate for it, the Prime Minister and his Minister of Finance has saddled this country with tax and supply obligations for decades into the future. The extent of the obligations which future generations have to meet remains a closely guarded secret by this government, concealed from those who have to fulfill the obligations. In this country, under the PNM, the price of gas is such a state secret that the government refuses to advise how much money we get from gas rents, and at what price the country's natural gas is to being sold. Once more, when the Honourable Patrick Manning became Prime Minister in 2002, this quality of country's business environment was ranked at 41st in the world. By 2007, T&T had fallen by a whopping 34 places to 74th.
Mr Speaker, despite knowing the damage the PNM has done this country's global and business competitiveness, and the quality of the national business environment as well, the 2010 budget does nothing to effect a change. On the contrary, it repeats the same mistakes of the past and so the predictable worsening of the nation's competitive edge will continue. In light of the foregoing, the recently established National Productivity Council is doomed to fail. It appears more likely that like the Vision 2020 document, the Council is merely a public relations gimmick to give the appearance that the government is doing something. In fact, like with the 2020 document, the government is once more going to squander the good intentions and reputations of those who have agreed to serve on the Productivity Council.
Mr Speaker, when I met last week with the business community representatives they advised that they had again submitted their concerns and proposals to the Minister of Finance so she knows what their constraints are. Every business–small, medium and large –cited the same problems, some of these were:
�2 Crime–the fear of being kidnapped, robbed or killed
n Difficulty in accessing foreign exchange as banks were rationing US dollars.
�2 Problems at the port causing delays and additional costs to importers, as the long awaited ASYCUDA computerization appears stillborn
�2 Higher electricity charges
�2 Inflation
�2 Difficulty in accessing labor
�2 Recently there has also been increased shipping costs
The Minister is aware of these problems, and in yet another budget, she has failed miserably to address them.
Crime
Crime, the most urgent issue occupied the least place in the Minister's Budget. Mr Speaker what can I say that has not been said to this government about the issue of crime? We, on this side, have done everything we can in an attempt to persuade the Prime Minister to take a serious approach to controlling the spiraling crime scourge that has been terrorising the innocent citizens of T&T. But like Pharaoh, his heart has been hardened–pacemaker and all. We have heard every possible excuse for their failure to deal with crime. I am convinced that crime will never be addressed by this government because they are in bed with the criminals. From the very beginning of this PNM government's tenure, they proved that they were not inclined to clamp down on the criminal element that was unleashed during the 2001 election campaign against UNC supporters. We saw the PM's failure to condemn Cro Cro's repugnant and atrocious composition entitled "Face Reality" which called on criminals to kidnap wealthy business persons. We saw a government. There is a Latin saying "Abyssus abyssum invocat" which means "Hell calls hell." How appropriate in these circumstances when we have an arrogant and heartless government presiding over the worst reign of terror in the history of this nation. Mr Speaker the policy of this Government in the face of every crisis that they have created and exacerbated has been: excuses, denials, propaganda and passing the blame.
Over the past seven years the Minister of National Security and the Prime Minister have blamed everyone and everything for the spate of crime. They blamed the UNC, they blamed Venezuela, the blamed drugs, the citizenry, television, parenting, gangs, the Commissioner of Police, and so on and so on. They placed the blame everywhere except where it belongs–at the feet of the Minister of National Security and his boss, the Prime Minister. I sat here and cringed when I heard the Minister declare
"We will not waiver from our zero tolerance posture against crime"
What zero tolerance? Mr Speaker? For the past seven years the government has bent over backwards to accommodate the criminal element in this country, elevating them to community leader status, and rewarding them with high paying government contracts and jobs. Mr Speaker over the last seven years we have had Chin Lee, Martin Joseph, Mastrofski, Maguire, Snipes, Jon B.Gould, Steve Henry, Cameron Ross, Hilton Guy, Snaggs, Trevor Paul, James Philbert, Anaconda, Baghdad, Weed and Seed, Policing for people, Strategic Control Seminars, Community policing, police reform legislation, police service transformation, model stations, community leader truce signing, gang suppression, crime suppression unit, anti kidnapping squad, area lockdowns, mobile posts, crime and justice commission, inter agency task force, SAUTT, Scotland Yard, Penn State Justice and Safety Institute, George Mason university, Israelli Radar, Blimps, Eye in the sky, next blimp, high speed interceptors, helicopters, offshore patrol vessels and Fast Patrol boats, cars, jeeps, motor bikes, bicycles, body armor, crowd control training, water cannons, we had crime consultations aplenty, we even had an Orchestra and so many other initiatives...and everyone has failed.
Zero tolerance?
I wonder just who the Honorable Minister of Finance thinks she is fooling. They have been saying that since 2003! T&T is under siege from the criminal element. Despite the multiple assurances from Prime Minister and Minister of National Security, I do not think there is anyone in this country that has not been affected by crime, including members opposite. But Mr Speaker, instead of confronting the problem of crime head on, the Government resorted to public relations, catch phrases and meaningless buzz words.
Corruption
A concerned Abraham Lincoln said:
"I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. Corporations have been enthroned, an era of corruption in high places will follow, and the money-power of the country will endeavor to prolong it's reign by working upon the prejudices of the people until the wealth is aggregated in a few hands and the Republic is destroyed." Those words spoken two hundred years ago resonate with truth now in regard to T&T. Under the PNM, this country is viewed as becoming increasingly corrupt. n The unethical influence of the hand of the Prime Minister in sabotaging the appointment of a Director of Public Prosecutions despite his avowed agreement to do so more than a year ago,
�2 the failure to appoint a Solicitor General for several years,
�2 the sabotage of the appointment of a Commissioner of Police by the Police Service Commission so that the Government could have handpicked as their choice a man who had failed the polygraph test,
�2 The unsubstantiated attack on a sitting Chief Justice based on frivolous charges and the failure to penalize the Chief Magistrate for his part in the process
�2 The incestuous involvement of this very Minister of Finance in the multibillion dollar CL Financial bailout in which the Minister's actions were revealed to be at the very least unethical and very likely corrupt, and fact that despite this complicity, the Minister has up to today not been the subject of a criminal investigation.
�2 The refusal of the government to enact the draft procurement policy
�2 The failure of Government Ministers to answer questions posed in Parliament
�2 The repeated failure of any of numerous special purpose companies established by this Government to report to Parliament on the millions expended by them.
All these point to a concerted, deliberate and orchestrated plot by persons occupying very high political office in government to avoid transparency, accountability. It is state sanctioned corruption. The well known corruption perception index, hereafter referred to as the CPI, established by the Transparency International measures the extent of the abuse of public office for private gain and therefore the degree to which businessmen and analysts believe that a country is corrupt. Mr Speaker, for clarification the higher the index, the more corrupt the country's politicians and public officials are believed to be. In 2001, under a UNC government, the CPI ranked T&T at 31st in the world. When the PNM assumed office in 2002, they met an index ranking of 33. Within one year of the PNM, the perception of corruption skyrocketed dramatically by ten places to 43rd place and it has been rising steadily since, evidencing a public perception, internationally and locally that corruption is becoming endemic under the PNM. The data reveals that in six years of PNM governance from 2002 to 2008, during which time this country had the highest ever income, the prevalence of corruption pushed this countries ranking from 33rd under the UNC to a massive 72nd place in 2008, a leap of 39 places! And this does not take into the revelations of the UFF inquiry which unearthed evidence of massive corruption in the state sector.
The 2009 Corruption Perception Index is due to be released very soon and I have no doubt that once more, this country's international image will take another beating as PNM corruption pushes this country further down. Mr Speaker, the actions of this government reveal its disdain for the population, and its flippancy in dealing with citizen's questions about its expenditure of taxpayer's money. It is as if the Prime Minister and his cohorts believe that the treasury is their personal bank account for which they do not need to account to the people. It belongs to the people of T&T and they have a RIGHT to know what you are doing with it, and they have a right to an input in what you spend it on! Mr Speaker, delivering the 2005 budget Speech in this Honorable House, this is what the Prime Minister said:
"Mr Speaker, my Government is committed to good governance. For us, this means putting systems in place to ensure transparency, accountability, the highest level of efficiency and effectiveness, equity, and adherence to the rule of law."
Methinks he doth protest too much.
Under the heading "Procurement Reform" the Prime Minister promised this Nation: "....to further ensure transparency, accountability and good governance, this Government is undertaking a fundamental reform of its procurement process. The imperative for reform centres on the need for good governance, public confidence in the integrity of the procurement process, conformity with international best practice, and regional and international developments. Prevailing deficiencies in the legal and regulatory framework, human resource limitations and lack of regulatory oversight, further add to the urgency for a new objective and comprehensive approach to the Government's acquisition of goods and services." "Urgency" was the Prime Minister's description. Then with great fanfare he revealed Green Paper on the Reform of the Government's Procurement Regime dated June 2004 which was out for public comment and which listed a series of recommendations. With a straight face he told the country: "Implementation of the new?procurement regime is targeted for June 2006." Mr Speaker, the new procurement regime will signal to the local, regional and international community, this Government's commitment to a quality of governance that reflects the highest standard of Ethics, Transparency and Accountability in the conduct of the people's business."
In 2005, a White Paper on the Reform of the Public Sector Procurement Policy was published, in keeping with the Government's states intention for a 2006 implementation of the procurement policy. Then, as the price of energy products began to climb to new heights and the potential for corruption loomed large, the Government recognised the limitations which a procurement policy would have on their ability to corruptly award contracts to friends and party hacks, and threw "ethics, transparency and accountability in the conduct of the people's business" out of the window. As Government Revenues increased by 35 per cent in fiscal 2005 and then again by 37 per cent in fiscal 2006 the enormity of the boom began to sink in and the need for ethics, transparency and accountability no longer mattered to the Prime Minister and his cohorts. And so the reckless expenditure began in a frenzy. Basic human needs were abandoned by the government on the alter of mega projects. Mr Speaker, they have not turned back yet. The recklessness continues in the current budget. And corruption flourished. Frenzied by money, the Patrick Manning regime began ignoring the smaller projects which were desperately needed, and promised and began experimenting in mega construction. Simultaneously, the government began finding ways to avoid procurement issues, began pursuing design, finance, construct, and design build projects and began granting multimillion dollar contracts to international companies with increasing reliance on Asian companies. The Minister of Works and Transport, a former contractor himself, turned his venom against local contractors against whom he used to compete, and a war of words between government and local contractors erupted. But like all things under the PNM, it gets worse.
The nation realized that despite the increased revenues, their basic human needs were not being met and the questioning began. Schools in remote areas like Paramin, Rosehill, Point Cumana and Belmont, hospitals, access roads, drainage etc all were sacrificed to the Prime Ministers desire for tall buildings. The "people's business" was forgotten. Mr Speaker, You will recall too, the Prime Minister ostentatious fantasies blossomed into a fetish for private jet rides and his attempt to join the ranks of the rich sheiks and powerful Presidents of the world when a multimillion dollar down payment was made to purchase a private jet. That was never announced by the Prime Minister. It was revealed by investigative reporting when the country had to find out after the supplier made the disclosure. Recently we had another similar disclosure of the government's down payment for the purchase of four special purpose helicopters. As before, this Government does not see the need to tell this country when it committing billions of dollars of taxpayers' money. Mr Speaker, when public pressure forced the government to reconsider the purchase of the private jet, the Minister of Nothing Works claimed that the supplier did not want to sign an anti corruption clause, conveniently ignoring the fact that the government had already made a down payment of several million dollars to the supplier.
Minister Colm Imbert said then:
"We are insisting on the insertion of a standard anti-corruption clause in the contract where if it is discovered that any person had somehow benefitted from this transaction the contract will be void and the seller will have to refund the money." http://www.newsday.co.tt/news/0,74516.html
"A standard anti corruption clause," the Minister said. Mr Speaker today I challenge this Government, I challenge Minister Imbert to provide copies of every contract issued by this government, and by agencies of this government above ten million dollars since 2006. Show me the anti corruption clause in the $368 contract awarded by UDeCOTT to an unqualified company CH Development and Construction Limited and in circumstances which have been revealed to be corrupt. The Honorable Minister needs to explain to this country what measures were taken by UDeCOTT to ensure that there was no corruption in the award of the tender, and now that it has been found that the contract was improperly awarded, what measures is the government going to take to effect the retrieval of the monies paid. Show me the multimillion dollar contract awarded by UDeCOTT to Turner Alpha Limited for a project without the company having been evaluated as was required! What has been done to deal with that?
And I can go on and on.
Recommendations
Mr Speaker, this Government has pushed this country down the slippery slope. There is much that needs to be done to pull us back. In the few minutes I have left, I wish to offer some suggestions for the way forward. I am certain that as my colleagues present their various portfolios these and other recommendations will be offered in light of the Government's obvious inability intellectual bankruptcy.
Crime
1. Legalise SAUTT–SAUTT remains the country's premier technology driven crime fighting tool and much money was spent to establish and equip it. Yet the government has not seen it fit to enact legislation to legalize the operations of SAUTT despite multiple assurances over the past two years that the legislation was coming soon.
2. More Judges and Magistrates and support Staff–the Law association told us that we could not deal with the massive backload of cases unless there was greater numbers of judicial officers to deal with them. This will also expedite cases and prevent justice from being delayed–and the problem of repeat offenders making bail and committing more crimes while awaiting trial–not to mention the cost to the taxpayer of keeping persons awaiting trial, in jail.
3. Computerise police, court, licensing division–so that police officers in vehicles can have access to criminal records, warrants etc at the touch of a button– perhaps with laptops in police cars as exists in the US (Dade County, Miami)
4. Establish a victim's counseling Unit
5. Establish a Central Vigilence Authority Development of a Central Vigilance Authority to receive complaints, investigate and report to the parliament
6. Establish a Gun Court for dealing with all firearms related matters
7. Implement the breathalyzer law
8. Increase the compensation for victims of crime from the current limit of 25,000 to 250,000
9. Introduce technology to speed traps–speed guns, traffic light cameras
10. Ensure existing CC cameras operating and include business centres on EW corridor–not only highway.
11. More policemen. There are currently 1250 shortfall in the compliment of 7500 officers established many years ago. There is therefore need for increased appointment of police officers, with better screening of applicants and better terms and conditions.
12. Provide adequate funding for the EOC
13. Establish a proper witness protection programme
14. Appoint a DPP and Sol. Gen.,
Labour
1. Increase minimum wage to $15-$20–a living wage
2. Increase old age grant to 3000 and index to inflation
3. Increase payments–disability grants etc.
4. Increase enforcement of OSHA including foreign contractors and workers
5. Ensure compliance (even playing field) with minimum wages, terms and conditions of employment.
6. Employ CEPEP in more productive endeavors including the agricultural and manufacturing sectors.
7. Increase allowance for approved deferred annuity
8. Increase the limit on pensions to $5,000 to allow pensioners to access the old age grant and NIS pension.
Works and Transport
1. Reprioritise projects on a need basis, and particularly putting a stop to new projects which have been assigned to foreign contractors.
2. Demand cost benefit analyses which must justify for every new project to be started.
3. Stop the rapid rail project until a feasibility study can prove its value.
4. Investigate with intent on pursue criminal charges based on the current revelations of the UFF commission. There is no reason to wait until the commission submits the report as the information and allegations are already in the public domain. The DPP assistant should act now.
5. A comprehensive bridge assessment and maintenance programme is required.
6. A logical approach to road repair–the highway between Betham and the overpass is being paved again for the umpteen time in the last five years bit many roads in this country are in complete disrepair causing protests by residents.
7. A comprehensive drainage plan is required to address flooding and to take into account existing and proposed development.
8. True attempt to introduce CNG stations and facilities.
The economy
1. There is need to stimulate the economy. The best way to do this is to stimulate local industry including the construction and manufacturing sectors. This necessitates local contractors to be employed - the importance if internal circulation of the investment as opposed to external migration of the resources assigned to stimulate the economy.
2. EXIM bank / ADB� increase allocation and reorient to facilitate easier and less expensive access to funding for local exporters and for importers with heavy local content.
3. Direct tax concession to investment in agriculture to stimulate greater private sector involvement
4. 24/7 operations of the port, and the establishment of Pt Lisas as a fully operational port.
5. Listing of profitable state enterprises on the stock exchange as a way of increasing the range of equity available
6. Balance the budget by reducing projects which are not critically necessary at this time.
7. Reduce the Non energy Deficit
Health
1. Point Fortin hospital
2. Chaguanas Hospital
3. Couva health facility to be upgraded given the development level of Pt Lisas.
Agriculture and
the Environment
1. Embark on a proper land distribution scheme to genuine farmers
2. Stop using agricultural lands for housing
3. Stop the smelter project and convert to more environmentally sound projects including light manufacture and agriculture in the area already graded.
4. Tax incentive for environmentally friendly projects and investments
5. Promotion of recycling as a major business with concessions.
6. Release for public examination, the National Transportation Plan which has been completed since 2007
7. Introduce a Praedial Larceny Squad within the police service
8. Link the programme of the alleviation of flooding with the plan to irrigation for farming.