By MELISSA DASSRATH Sunday, April 26 2009

Given the economic challenges that Trinidad and Tobago is facing, the Downtown Owners and Merchants Association (DOMA) has made recommendations for a “package of economic measures” to help the country’s economy rebound, including a drastic reduction in the repo rate.

In a press release issued yesterday, DOMA members expressed their growing concern about the economic downturn. They were particularly troubled by the recent statements made by the Governor of the Central Bank regarding the future immediate prospects for the Trinidad and Tobago economy.

In the statement, DOMA referred to the rising unemployment rate, skyrocketing food prices and unsatisfactory agricultural outputs, as symptoms of an ailing economy.

DOMA, however, said that job creation can effectively offset the problem of job loss. “Jobs are being lost in the construction sector and in some energy industries. Some of these jobs can be saved. In some cases employment has to be created in other sectors to create options for those whose jobs cannot be saved,” the organisation said.

They noted, though, that the private sector is especially vital during recessionary times and is responsible for stimulating employment. DOMA noted that the private sector generates economic activity that has been shown to create jobs during periods of negative economic growth. “The private sector represents creativity and enterprise and if properly stimulated, can provide quick results in job creation and investment.”

DOMA indicated that there is a consensus among their members that the economic predicament is a serious issue which requires policy development to avoid a fiscal disaster in the future.

According to DOMA, there are mechanisms available which could bring relief to the Trinidad and Tobago economy. They added that these measures can be implemented without a reading of the national budget.

DOMA suggested certain recommendations that they say could alleviate the country’s economic problems:

* A drastic reduction in the “repo” rate would facilitate a reduction in the current interest rate on loans.

* A tax incentive for the construction of homes and single dwelling houses which are completed and available for occupancy within 24 months.

* Tax-free rental income for a specified period on commercial construction completed within the next 30 months.

* Guaranteed interest free loans and subsidised pricing on the purchase of agricultural equipment and fertiliser products.

* A programme of minimum pricing or subsidies to producers of agricultural and farm produce.

* The expansion of existing markets and the construction of new markets for agricultural produce in all major towns and cities in Trinidad and Tobago. The expansion and upgrade of the Central Market as facilitation to the expansion of agricultural production and a creator of construction jobs.

DOMA stated that they are optimistic that these measures would energise the resiliency of our economy: “We are not daunted by the seriousness of the situation facing our country. We remain confident that the people of Trinidad and Tobago are resourceful and sensible and have proven repeatedly that they can rise to any challenge faced by our country. What is now needed, in our respectful view, is a package of common sense policies that recognises the need for fiscal restraint and an economic stimulus with new priorities that will provide lasting, sustainable benefits for our country.”