Areas in need of change

THE EDITOR: There are four core problems with the new state enterprise/private enterprise segmented energy industries in TT.

First, part of our economy is no longer compact and has lost the augmentations of economies of scale and their synergies. But it is also set up with built-in prejudice, where rents received accrue to price-fixers and a balance is allotted to the nation as price-taker.

Moreover, the resource supply to the local components of the sectors is under the control, direction or influence of the price-fixers.

Second, this is not likely to be changed around under the present Government; and to change it will eventually necessitate quite an overhaul.

The third problem has three aspects paralleling those in the first. The situations are not readily examinable (accountability, statistics) and have made integrity law superfluous. They will tend to entrench yes-man regimes. On top of everything the Government is not forthcoming on realities.

Fourth, as the thing spreads it becomes more likely the format will evolve more complexities and also be used in overtaking other sectors.

In overview, an overall assessment will have to be done at some time, because this type of structuring is the formula for perennial generalised borderline economy mixed with times of economic malaise and times of bitter winter.

For example, WASA has extensive decayed, leaking, aged plant so that the reservoirs cannot get filled and dirty water is always in the pipelines and pumps. The money to renovate and upgrade can only come from new debt.

Meanwhile torrential rains flood everywhere else and all that water goes to waste.


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"Areas in need of change"

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