In this space one week ago, under the headline, ‘Would Trinidad be better off independent of Tobago?’ this column estimated that value of the transfers from Trinidad to Tobago in the 2025 fiscal year would be $4.5 billion, while citing a projection from local economist, Dr Vanus James, that the Tobago economy could generate about $500 million in taxes.
“This is because the economy now produces about $1.66 billion, if we go by the figures recently published by chief secretary Farley in his latest budget statement. At a general tax rate of 29 per cent, that gives taxable capacity of just under $500 million. It should be noted that about $214 million of those taxes are currently collected in Tobago. So, about $286 million is collected by the agencies of the Government in Trinidad,” said Dr James, in an interview published in the July 11 edition of the Business Guardian.
Those figures, according to Dr James, indicated that near to 80 per cent of the money spent by the Tobago House of Assembly (THA) came from a transfer from Trinidad.
“When you add in the nearly $1 billion spent on other Government services by the Government, the level of dependence of Tobago on Trinidad increases to about 86 per cent of Government spending,” James said.
So, from a financial point of view, it can be concluded that if Tobago were an entirely independent, self-governing country, it would be required to depend on the estimated $214 million it currently collects in Tobago, and from Tobagonians. In comparison, it would need to spend about $4.5 billion to allow the residents of the island to maintain the standard of living they currently enjoy as part of the unified state of Trinidad and Tobago.
Clearly, then, the Tobago economy would not be viable, if the island were independent. In other words, as it stands now, Tobago could not survive without Trinidad and, as well, Trinidad would be better off independent of Tobago, as the larger island would have the estimated $4.5 billion, that is now transferred to Tobago and Tobagonians, to spend in Trinidad, and on Trinidadians.
But it is obvious that the THA and its chief secretary, Farley Chavez Augustine, are aware of the arithmetic and absolutely do not want independence.
What Tobago wants, according to Mr Augustine, is to be an autonomous, self-governing country within the unified state of Trinidad and Tobago.
It seems to me that what Mr Augustine really wants is for the island’s assembly to take all the decisions pertinent to the management of Tobago’s affairs while continuing to enjoy the $4.5 billion I estimate the island receives on an annual basis from Trinidad.
In fact, Tobago wants more money from Trinidad than it is currently receiving.
The Dispute Resolution Commission Report, which was debated in Parliament in October 2000, made recommendations about the amount of money the THA should receive:
“That a percentage in the range of 4.03 per cent to 6.9 per cent of the national budget, 4.03 per cent being the minimum, be allocated to the Assembly to cover both the recurrent and development allocations for each financial year, such percentage to be reviewed from year to year in the light of prevailing circumstances.”
But the Tobago Island Government Bill, which was passed in Parliament last week Monday, states:
“Parliament shall appropriate for the use of the House of Assembly for any financial year no less than 6.8 per cent of the total sum appropriated by Parliament in that financial year or such other percentage as may be determined by the Fiscal Review Committee under section 43 and approved by the Parliament by resolution.”
So that means the recommendation of the Dispute Resolution Commission in 2000, when the late Basdeo Panday was prime minister, that Tobago should receive between 4.03 per cent and 6.9 per cent, would have been increased to “no less than 6.8 per cent” under the Tobago Island Government Bill.
That legislation was introduced in June 30, 2021, which means the Cabinet headed by Prime Minister Dr Keith Christopher Rowley would have approved the proposed increased allocation to the THA. It also means that the current administration was prepared to grant the THA a larger percentage of the total sum appropriated by Parliament for expenditure on the island.
The Tobago Island Government Bill required a simple majority and was passed. But the Tobago Island Assembly Bill was meant to be yoked to the Constitution Amendment (Tobago Self-Government) Bill, which required a special majority of 75 per cent (three fourths). That bill failed because the current administration does not have a three-fourths majority in Parliament. As a result of the failure of the Constitution Amendment (Tobago Self-Government) Bill, the Tobago Island Government Bill did not stand.
That Constitution Amendment (Tobago Self-Government) Bill was meant to “promote the internal self-government of Tobago by providing, inter alia, for the following:
(a) Recognition of the equality of status between the island of Tobago and the Island of Trinidad (clause 5);
(b) Acknowledgement in the Preamble to the Constitution of the right to self-determination for the people of Trinidad and Tobago, including the right of the people of Tobago to determine, in Tobago, their political status and to freely pursue their economic, social and cultural development;
(c) Establishment of a Tobago Legislature which would consist of the President, a House of Assembly and a People’s House and would have power to make laws for the peace, order and good government of the Island of Tobago, except with respect to certain matters listed in a proposed fourth schedule to the Constitution which shall remain under the purview of the Central Government...
(d) A Tobago Executive Council, comprising a chief secretary and other secretaries, which would be responsible for the general direction and control of the government of the Island of Tobago, except concerning the matters listed in the proposed fourth schedule to the Constitution (clause 12)...”
Again, this was legislation, it seems to me, that proposed to grant Tobago full self-government, with its executive council responsible for “the general direction and control of the government” on the island, replacing the Cabinet of T&T. The Tobago Island Government Bill proposed to increase the subvention to Tobago to no less 6.8 per cent. Taken together, those two pieces of legislation would have given Tobago exactly what it really wants: almost total control over the management of Tobago and more money.
Two questions:
1) Is it acceptable arrangement of the affairs between Tobago and Trinidad that the former should have considerable more control over its affairs AND receive more money from Trinidad?
2) If the two bills that were before Parliament last week Monday gave the THA greater power and more money, why would the Assembly’s chief secretary, Farley Chavez Augustine, have referred to Prime Minister Dr Keith Rowley in such a derogatory and hostile manner after the sitting in Parliament?
It seems to me that the Constitution Amendment (Tobago Self-Government) Bill failed because it did not get the support of the Opposition United National Congress...for whatever reason.
Why was Tobago made a ward of Trinidad?
In a televised address on November 10, 2024, Augustine cited Article 1 of the United Nation’s International Covenant on Civil and Political Rights, which states: “All peoples have the right of self-determination. By virtue of that right, they freely determine their political status and freely pursue their economic, social and cultural development.”
He added, “This long overdue delivery of our right to self-determination is by and large a quest to correct an historical injustice...
“For 200-plus years before the arranged marriage to Trinidad, Tobago actually enjoyed a highly autonomous way of governing itself and had a government with autonomy levels that were not existent in Trinidad for those 200-plus years.
“In fact, the joining with Trinidad was a downgrade in terms of autonomy for Tobago.”
Tobago did have autonomous governance arrangements long before Trinidad, but Tobago lost its autonomy and became appended to Trinidad because its economy collapsed in the late 19th century.
As Prime Minister Rowley argued in a statement to the House of Representatives on March 9, 2018:
“As the nineteenth (19th) century closed, Tobago was still producing muscovado sugar, which was almost worthless for export by the later 1880’s.
“Land values crashed, estates could be bought for a song. By 1894, sugar exports were a pathetic 599 tons, and the value of Tobago’s exports of sugar, rum and molasses was only £15.872. Revenues fell steeply; public works employees went unpaid for months, the public services, such as they were, cut back. Tobago’s export sugar industry, lacking capital and immigrant labour, faced with drastically falling prices for crude sugar was going under; the island was virtually bankrupt.”
Our former British colonial masters decided that Tobago could not survive without Trinidad.