In a new podcast called Auto Focus broadcast earlier this week, Tobago House of Assembly chief secretary, Farley Chavez Augustine, defined what the ruling party in Tobago means by autonomy.
“What we really mean (by autonomy) is that we want the opportunity to build our own home and to manage our own home. Autonomy for us in Tobago does not mean separation from Trinidad. What autonomy really means for the average Tobagonian is the ability to manage our socio, cultural and economic affairs to the extent that we provide prosperity and growth and development for all Tobagonians; in a way that allows Tobago to have equity or to be equal with Trinidad as a partner in this union called Trinidad and Tobago.
“Imagine, for a moment, that our ancestors left us this beautiful property called Trinidad and Tobago that we must manage. But currently, Tobago finds itself living downstairs in the same family home as Trinidad. But the acreage of land that we have allows Tobago to build its own home, just next door in the same piece of property.
“All Tobagonians are saying when we say autonomy is that we just want the ability to build our own home called Tobago, build it the way we want, manage it the way we want, and continue to share neighbourly ties, familial ties with Trinidad.”
It just so happens that the home analogy used by Farley Chavez Augustine to explain autonomy to a Tobago audience is perfect to analyse what he really wants from Trinidad.
In extending the home analogy, let us imagine a three-member household with parents named Trinidad and an 18-year-old son named Tobago, who has just finished his CAPE exams. They live in a mansion on a half-acre property in Goodwood Park, which is located in the Diego Martin West constituency in Trinidad.
While he was a student at secondary school, the parents, Dr and Mrs Trinidad, provided their son, Tobago, with everything he could want, including a generous allowance for food, books, entertainment and other things. The joint income of the Trinidads is about $54,000 a month and the agreement is that Tobago’s allowance would be $2,600 a month, which is about 4.8 per cent of their income.
The parents want Tobago to continue his studies at The University of the West Indies, the cost of which they have committed to subsidise, with the understanding that Tobago will continue to live at home and travel to his classes at UWI.
Tobago, on the other hand, insists that he has no interest in tertiary education, but he aspires to build a house on the Goodwood Park property next to the Trinidads’ mansion.
Tobago wants to be able to continue living in the mansion while building his house but tells his parents that because he is 18, he must have a greater ability to manage his own affairs. Tobago wants to continue receiving the generous allowance from the Trinidads, but wants to be able to set his own rules: to go and come as he pleases without telling his parents anything; lime with his friends at the mansion until dawn; not do any chores around the house and generally live like a spoilt locho off his parents, always demanding more money from them.
After much argument on this issue, Dr and Mrs Trinidad lay down the law to Tobago:
—Firstly, if you want to continue living in our house, receiving our allowance, eating our ham, lamb and jam, but not contributing much to the family pot, you will have to abide by our rules;
—Secondly, if you do not like our rules and do not want to continue your education, you are free to make your way in the world, on your own dime, and with your secondary-level education.
Farley’s problem
I think what Farley Chavez Augustine wants from Trinidad, the country, and not the parents, is to continue receiving an increasing amount of money from the Treasury every year, while duplicating the T&T government apparatus in Tobago. That apparatus would be answerable to the Tobago House of Assembly administration in Scarborough only.
By duplicating the government apparatus of T&T, I am assuming that he wants a separate judiciary, separate police, army, prisons, and fire services, different arrangements for the inter-island ferry and aircraft transportation and Tobago-run electricity and water services.
Under Farley Chavez Augustine’s plan for Tobago, the island would require new independent service commissions—judicial and legal, police, public and teaching. The island would also require a separate Office of Procurement Regulator, Fair Trading Commission, Securities and Exchange Commission, etc.
Who is to pay for duplicating all of T&T’s public services in Tobago?
I expect that Mr Farley Chavez Augustine thinks that Port-of-Spain would be willing to pay.
The amount of money Tobago gets from Trinidad is already considerable.
Spending on Tobago
In delivering the 2025 budget in Parliament on September 30, Minister of Finance Colm Imbert outlined the allocation for Tobago, which has a population of about 65,000: The THA allocation totals $2.599 billion of which:
* $2.376 billion is for recurrent expenditure;
* $205 million is for the Development Programme expenditure; and
* $18 million is for the URP and $9.2 million for CEPEP.
In addition, beyond the budgetary allocation to the THA, an additional $678.5 million is allocated to various ministries and state agencies to undertake and execute major projects in Tobago in keeping with their responsibility under the sixth schedule of the THA Act 40 of 1996.
“In addition, the Tobago airbridge operations continue to play a vital role in maintaining connectivity between Trinidad and Tobago. The Government’s subsidisation of this service ensures affordability and reliability for all citizens. From January 2020 to July 2024, the service operated a total of 38,087 flights, transporting 2.3 million passengers, with the total cost of the subsidy amounting to US$36.8 million,” said Imbert.
The total subsidy of US$36.8 million over the first seven months of this year, works out to be US$63.08 million ($429 million) for the 12 months of 2024.
In the 2023 budget, Mr Imbert said the inter-island ferry service costs $200 million per year to subsidise, which does not include the capital cost of the two new fast ferries, which was close to $1 billion.
So, including the recurrent and capital expenditure, the sixth schedule spending and the inter-connectivity subsidies, the sub-total is $3.90 billion. Added to that sum must be the Tobago subsidies on electricity and water, as well as the subsidy on the Cabo Star, which transports goods from Trinidad to Tobago. Those three additional subsidies would take the expenditure on Tobago to an estimated $4.5 billion for the 2025 financial year.
Island’s revenue
In the July 11 edition of the Business Guardian, local economist Dr Vanus James estimated that the Tobago economy can generate about $500 million in taxes.
“This is because the economy now produces about $1.66 billion, if we are to 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.”
These figures, James added, indicated that near 80 per cent of the money spent by the THA in Tobago is 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, Tobago’s finest economic mind estimates that Tobago’s taxable capacity is about one per cent of the T&T’s revenue collection and that Tobago depends on Trinidad for 86 per cent of the money spent on the smaller island. By my calculation, Tobago consumes about eight per cent of T&T’s annual expenditure and wants more every year.
Would the $4.5 billion that I estimate is spent by Trinidad on Tobago be more usefully spent on Trinidad?
With the capacity to generate only $500 million in revenue from taxes, according to Dr James, could Tobago survive without Trinidad?
Would Trinidad be better off independent of Tobago?