Wade Mark

Opposition Senator Wade Mark is concerned about the rising public sector debt. He said if Government borrowing continud at the current rate, the country would return to the International Monetary Fund (IMF) for support by 2012. Mark said public sector debt was currently estimated to be around $30 billion, which did not include contingent liabilities from State enterprises and Government agencies.

After a meeting with representatives of the international credit rating agency, Standard & Poors S&P), at the Opposition’s office on Charles Street, Port-of-Spain, yesterday, Mark said Government was allowing state enterprises to borrow without any controls and they were not pursuing the appropriate policies to diversify the economy, develop human capital and save as much as possible. He said if the UNC was in power, the Heritage Fund would have been much closer to US$20 billion as they were able to save more than US$200 million when oil prices were just US$18.

“Today the Government is facing prices in excess of US$70 reaching as high as US$147 per barrel last July, and all they were able to put aside was just US$2.5 billion.” He criticised S&P for placing too much emphasis on debt repayment without placing enough weight on government’s policy on diversification, human capital development and crime. S&P currently rates T&T’s long-term debt at A-.

Mark said the Opposition would begin stakeholder consultations on September 3, in preparation for the budget debate and they have contacted more than 100 non-governmental agencies, labour organisations and the business community for their input. He said the Opposition was hoping for a reasonably balanced budget, but he expected the government to continue spending on their huge mega projects that puts pressure on the monetary system and the economy, while continuing to expand the national debt.