Tewarie: It’s just a gas blip

THE hike in natural gas production and revenues will be just temporary, Caroni Central MP Dr Bhoendradatt Tewarie warned in the House of Representatives debate on the Mid-Year Review on Thursday. While he wished TT was in a period of growth, he said that was not so, as an increase in gas production and in gas price had brought a temporary and limited boost in revenues.

“We cannot bank on this for our long-term future. We need new investment in natural gas drilling.” He said even gas-exploitation projects like Macadamia and Juniper wouldn’t meet the country’s gas needs. Tewarie said gas production will peak in 2019 and then start to taper off. “It will not keep moving up after that, and we should be concerned about it. The good news might not be so good after all.”

Tewarie said the energy sector is in steep decline, despite Finance Minister Colm Imbert’s assertions: he said the economy shrank by minus six per cent in 2016, two per cent last year and minus 0.9 per cent for this year. He wondered on what basis Imbert projected a decent growth next year. While gas supply and revenues are up, he said that’s not the whole story, recalling a businessman telling him he found the rosy picture incredible.

“Every citizen knows very well what the situation is.” Tewarie said Imbert had not revived the energy sector nor the economy. “We must have decisions to give us new investment in the energy sector,” he declared, saying the PP Government’s decisions had boosted TT reserves from nine to 20 years in the Ryder Report.

He urged TT not look towards Venezuela for a gas supply, saying nothing will happen there until the situation of President Nicolas Maduro is sorted out. Tewarie challenged Imbert’s boast of a rising GDP and a falling debt-to-GDP ratio, saying he will believe it when he sees it.

He was surprised Imbert had ignored the PP Government’s Mitsubishi Project.

Tewarie asked what the Government would do with its fresh revenues, and whether the non-energy sector would be stimulated, He said the economy is largely in shambles because confidence has been shot and people see no coherence in Government’s thinking and what difference it would make in their lives.

He wished the news was good, he said, as the economy needs diversification and improvement. “We have to have new sources of export outside energy to give this country sustainability and build a sustainable economy.” Nothing said by Imbert had given him confidence, he said, and advised the population, “Be sceptical about what you swallow in terms of information from the Government’s side. Your best bet about what is happening is what you are actually feeling and experiencing in the economy.”

Tewarie urged help for contractors, home owners, small business, and tertiary-educated youth. “The middle class is not what it used to be. They have to cut everywhere. “The working poor are in a worse position. They are afraid to lose their jobs, have to stretch the dollar and are in real problems.”

He said the jobless must be taken into account so they can live and survive.