At Tuesday’s sod-turning ceremony for Nutrimix’s Animal Feed and Pet Food plant on the Point Lisas Industrial Estate, Prime Minister Dr Keith Rowley expressed concern about the slow pace of regulatory approvals for major investments in T&T.
He lamented that T&T seemed to specialise in delays and obstruction, giving the impression that some entities are more concerned with processes than outcomes.
“I have seen projects in Grenada and St Vincent move at an alarming speed without damaging their countries and without their populations believing that everyone involved in the project is a scamp. And therefore, you have to know every page, every day, every hour, and every minute.”
Dr Rowley warned that T&T risks missing out on investments flowing into other Caricom territories.
“If we do not have these kinds of investments, if we do not have the vision and belief that our country can absorb these investments, or if we are required to make them only in traditional sectors, and we focus solely on what is wrong with this country instead of what is good, then we will always be looking at what is happening in Barbados, in Jamaica, and now in Grenada and St Vincent.”
Referring to the Sandals project in St Vincent and the Grenadines, he said it moved from planning to completion and operation in the same timeframe that T&T spent discussing approvals for a hotel.
“And now that the Sandals project is well underway, I cannot stop hearing (St Vincent’s Prime Minister) Dr Ralph Gonsalves in my ear, talking about how wonderful it has been for the economy of St Vincent. They are about to embark on another $250 million expansion of that project, while we are still discussing the approvals process in Tobago.”
1) It must be said that the pace of bureaucratic approvals in T&T has been slow for decades. Despite the improvements that have been made in the Ease of Doing Business, this still remains a work in progress.
But Dr Rowley has been prime minister of this country for nine years and five months. And he has served the people of this country in various capacities for nearly 38 years. On his way out of office, in one of his last public speeches, it is interesting that he would use Tuesday’s sod-turning ceremony to address an issue that he should have been given front-burner attention in the first three months of his stewardship.
As prime minister, what has Dr Rowley done to address the issue of the pace of regulatory approvals in his term of office?
2) The prime minister is clearly peeved that St Vincent and the Grenadines Prime Minister Ralph Gonsalves was able to go from first talking to Sandals to having a hotel in his country in less than four years. I recall Dr Rowley speaking at a function at the Hyatt Regency within a few months of being elected as prime minister (it was either the T&T Chamber or a T&T Manufacturers’ Association event), when he disclosed that he had talked to Gordon “Butch” Stewart about bringing his successful resort brand, Sandals, to Tobago. That would have been 2015.
In my view, the main cause of the Sandals debacle was the lack of due process in selecting the company as the brand for a 750-room resort. It was clear that the Government’s initial thinking on the Sandals resort in Tobago was to replicate the Hilton and Hyatt models. That would have meant the Government constructing and owning the hotel, which would have been located on state-owned land that was acquired from Clico.
If the Government owned the land on which it was proposed the resort would have been built AND the Government was going to undertake the cost of constructing the hotel, the most Sandals should have received was a fee for the use of its brand. For the Government to have signed a Memorandum of Understanding with Sandals that provided the Jamaican-family owned company with tax and duty concessions for decades would have been a hard pill for any patriot to swallow.
Given the availability and then acquisition of the land, it would have been more appropriate for the Government to issue an international request for proposals and base its choice of a brand for the site in Tobago on the best proposal received.
3) The Sandals Tobago concept failed because it was initially shrouded in a veil of opacity, with no disclosure about the process used to select Sandals, the cost/benefit analysis of the model or the tax concessions the Government was prepared to grant Butch Stewart.
4) What has become of the one-stop shop for investment projects that has been talked about in this country for decades. T&T has had the Tourism and Industrial Development Company (Tidco), which was established in 1997, with part of its role being to serve as a one-stop shop to fast-track investments. In 2012, InvesTT was established to do the same thing. The fact that Shameer “Ronnie” Mohammed, the chairman of the Nutrimix group of companies, could use the sod-turning ceremony for his new $150 million animal feed and pet food project to vent about the slow pace of some of the regulatory approvals, is an indication that if T&T has a one-stop shop for projects like that, it is not working.
5) In June last year, Prime Minister Rowley launched a blistering attack on a few environmentalists who had spoken out against the construction of a hotel and villa project at Rocky Point in Tobago.
Speaking at a post-Cabinet news conference, the prime minister said Tobago would not become a proper tourism destination “without a significant increase in high-quality hotel rooms.”
Asking the rhetorical question, who is going to build the high-quality hotel rooms, he said while the Government had built the Hilton and the Hyatt Regency in Trinidad, and the Magdalena Hotel in Tobago, “even if we want to build another hotel now, we don’t have the money. So the Government’s policy now is we look to the private sector.”
In order to drive the development of tourism in Tobago, he said his administration had attempted to encourage Jamaica’s Sandals group to consider the development of a hotel in Tobago.
He criticised a daily newspaper “and a handful of nameless, faceless people” for attacking the Sandals project on environmental grounds “with two pages every weekend.”
The prime minister was also critical of “well-financed idlers who spend their days telling you that because their parents were good enough to send them to the best schools...and who don’t have to worry about their next meal because their trust fund is good.” Dr Rowley said those opponents of the project spend their time surfing “and go and smoke their marijuana there and meditate to your God.”
Insisting that he will stand in support of the hotel, as long as it meets the environmental rules, Dr Rowley said: “I as prime minister of Trinidad and Tobago will move heaven and earth to make sure the hotel is built at Rocky Point because there are Tobagonians who have no trust fund and who are waiting for a meal. There are farmers waiting for a market...”
One wonders if Dr Rowley has maintained an interest in the Rock Point development and if Mr John Aboud, a hotel developer, has suffered from slow regulatory approvals?