One of the country’s business leaders is calling on owners of retail businesses to diversify their firms and include other arms such as manufacturing and agro processing for export to become net earners of foreign exchange.
The suggestion came from chairman of the Confederation of Regional Business Chambers (CRBC), Vivek Charran, as business leaders across the country gave the Business Guardian their wish list for the 2024 mid-year budget review.
“This will be a game changer and will make our private sector much more competitive,” Charran said, referring to his call on retail businesses to diversify.
Charran said this kind of activity bears resemblance to that of the Mittelstand model that exists in Germany.
The term Mittelstand mainly applies to mid-sized firms as opposed to larger listed companies and, more importantly, they are characterised by a common set of values and management practices.
Moreover, they are defined as companies that are owned by one or more families, with a difference being drawn between “family-controlled” and “family-led” businesses.
Reiterating that small and medium enterprises (SMEs) are still struggling to access forex, Charran said business owners are still using their credit cards to pay overseas suppliers.
“This is the kind of practice in obtaining a minuscule amount of forex for the purpose of business continuation. It is the role of Government to devise a more efficient methodology for businesses, particular the SME sector, to obtain the badly needed forex. This is an urgent matter to address,” Charran said.
On the energy front, Charran noted that work is underway to develop the infrastructure to extract much need gas from the Manatee field, which is a development he said should bring relief to the Point Lisas Industrial Estate and to our economy as well.
Other business leaders also called for the reopening of the Petrotrin refinery, addressing the forex shortage, implementing renewable energy projects, putting in place more agricultural incentives and dealing with unemployment are among the issues the various chambers want Government to look at in its upcoming mid-year budget review.
Daphne Bartlett, president of the San Fernando Business Association, told the Business Guardian the reopening of the refinery would provide much needed jobs, describing it as the “economic centrepiece” of south Trinidad.
“Many actors within the business community (contractors, service providers and suppliers of goods) were able to obtain business from the former Petrotrin refinery. Today, businesses in San Fernando are just surviving and trying to cope with these difficult economic times,” she said, noting that this has negatively impacted consumer confidence as retail business has shrunk by a significant level.
However, Bartlett noted, “The bright spot in San Fernando is the zeal and commitment of Mayor Robert Parris, who is determined to bring tourism to San Fernando via the waterfront project. In addition, his determination to relocate the street vendors from High Street to another location that is conducive for them to ply their trade is a win-win for all. Pedestrians can now traverse with ease on High Street and store owners have seen a slight improvement in their business activities.”
On a much broader scale, said Government needs to address pertinent questions such as, “What is the current state of the T&T economy? What measures are being put in place for improvement? What is Government failing to implement and why?”
Charran also advised that given the current economic challenges, owners of retail businesses ought to diversify their entities and include other arms such as manufacturing and agro processing for export to become net earners of foreign exchange.
Dealing with unemployment is also critical as the CRBC’s vice-chairman and president of the Eastern Business Merchants Association Ricardo Mohammed called on Government to seek ways and development programmes to get unemployed youth in eastern Trinidad involved in agriculture and even in agro-based industries.
He further recommended a wind energy farm in the eastern seaboard to enhance and expand the renewable energy initiative which can compliment the proposed solar energy project at Caroni. In addition, Mohammed said consideration should be given for the establishment of a tourism hub in this same area to attract both local and international visitors.
As it relates to crime and security, Angie Jairam, president of the Fyzabad Chamber of Commerce (FCOC), wants more public/private participation saying, “The Fyzabad Chamber intends to work more closely with the station council, the community police division and the police youth club, all within Fyzabad, to devise strategies to mitigate any future criminal activities while keeping vulnerable youths involved in constructive activities and ensuring that they continue to attend school.”
In addition, she noted the FCOC intents to invite Crime Stoppers to address its membership and other interested stakeholders to help build confidence in people wanting to give information pertaining to criminal activities.
However, Jairam urged that such measures must get the much-needed funding from Government.
Speaking on perennial problem of the ease of doing businesses, Jairam said the FCOC will continue to lobby for the Government to put systems in place to address this issue.
Meanwhile, Rampersad Sieuraj, director of the CRBC, emphasised the need for the operationalisation of T&T Revenue Authority (TTRA) with immediate effect and a stringent enforcement of the collection and audit arms with particular emphasis of audits on the very wealthy in society.
“It’s an established fact that there are 30 to 40 per cent of uncollected taxes whilst the complaint taxpayers are burdened with additional taxes. This is grossly unfair,” Sieuraj said.
As it relates to infrastructure, Samuel George of the Gasparillo Chamber said his district is a growing business area and echoed similar sentiments that crime and security need to be urgently addressed, as he also called for highway patrol officers to be put in strategic locations to monitor and penalise errant drivers.
As Gasparillo continues to develop George also wants a solution to the “annoying and aggravating traffic problem” when entering and exiting the area.
Emerson Chadee, president of the Siparia Chamber, recommended that the community’s unique history be channelled for local and international tourism.
More importantly, he said the borough has vast areas of unused State lands which can be used for new industries including manufacturing, technology and logistics.
“Identify niche sector. Research which industries are thriving in the region or have growth potential. Focus on sectors that align with local strengths or resources,” Chadee said, as he also suggested there be tax breaks, grants, or other means to attract specific industries.
“For example, renewable energy companies might be interested in large tracts of land for solar farms or wind turbines. Transform these unused lands into productive spaces such as parks, wetlands, or new businesses. This not only benefits the environment but also contributes to economic growth,” Chadee added.
Further, he said there should be zoning regulations conducive to industrial development to streamline the permitting processes to encourage investment.
Chadee also recommended investment in training programmes to equip local residents with skills needed for new industries as well as collaboration with educational institutions to tailor measures to industry requirements.
“Map industrial projects to the availability of skilled workers. Partner with vocational schools and technical institutes to ensure a ready workforce. Involve local communities in the planning process. Understand their needs, concerns and aspirations for the unused lands.
“Develop a long-term vision for the area. Consider factors like environmental sustainability, quality of life and equitable development. Successful industrial land redevelopment requires a holistic approach, involving government agencies, private investors, and community stakeholders. By strategically utilising unused state lands, we can foster economic growth, job creation, and community well-being,” Chadee further explained.