TT has a culture of secrecy

DATA is critically important in order to analyse properly what is happening in various sectors, but, economist Dr Terrence Farrell said yesterday, this country has a culture of not wanting to give information.

Farrell presented his report on the downstream sector of TT at the National Academy for the Performing Arts, Keate Street, Port of Spain.

The study, titled A Point of Inflexion, was sponsored by downstream giant Proman, whose plants make up nearly 60 per cent of the tenants of the Point Lisas Industrial Estate.

It covered the period 2013-2018, which Farrell noted was probably one the worst periods for the industry in TT, where production is about half of what it was at its peak in 2002.

“It’s characterised in business and even government (with the current Freedom of Information Act debate)…We have here across the board a culture of not wanting to give information, of not wanting to share data., that everything is confidential.

“That is not very helpful. Everybody knows their own particular situation, but in terms of getting information on a sector, it becomes problematic.”

Luckily, since Proman was the sponsor, Farrell was able to get access to the data from its plants, including Methanol Holdings (Trinidad) Ltd.

He was also able to get access to data from one major ammonia plant, although he had to sign a non-disclosure agreement.

It is well known that the downstream petrochemical industry has struggled in the last five to six years because of gas curtailments and difficulty with getting supply, he said.

Less highlighted, even by the industryn is the fact that as a result, production and exports of petrochemicals have been lower; plant operations and efficiency have also been affected; and direct and indirect employment have declined.

But the biggest problem in the downstream sector has been the price of gas. The National Gas Company (NGC) has a monopoly on the sale of gas to the sector.

Farrell said questions need to be asked about the NGC’s role and the risks therein.

Downstream companies like Trinidad, but they don’t love it, Farrell said, and they are here only because they can make a return on capital for their shareholders.

“If they are unable to do that, they will leave. That is the reality we are facing.”

Farrell estimated that the annual local expenditure by downstream industries, for the period of the report, was US$410 million.

The added local value (including wages) was US$338 million, and the total impact to the economy is US$642 million. “That is what is at risk,” he said.