Bhoe: Happy for ‘populist’ measures during ‘guava season’

CARONI Central MP Dr Bhoendradatt Tewarie said he was happy for citizens who received “popular or populist” measures in the budget who were going through a “guava season” but expressed concern about the impact on industrial relations. He was contributing to budget debate in the House on Wednesday. Finance Minister Colm Imbert, in his 2019/2020 budget presentation, announced a 15 per cent increase for CEPEP and URP employees, an increase of the minimum wage from $15 to $17.50 per hour and a pension for daily paid workers.

Tewarie said the measures lacked a technical framework and there were policy issues as well.

“What will the 15 per cent increase do to industrial relations?”

He predicted that unions negotiating will start at 15 per cent and he questioned what will be the net effect on the economy.

“Even if the industrial relations is effectively managed, what will it cost us in the long run?”

He also commented on the $6 billion worth of VAT refunds owed to the country and noted the $3 billion bond announced by Finance Minister Colm Imbert only represented half that figure and of 1.5 per cent is not attractive to trade.

“And I would be surprised if the business sector as a group accepts this bond. But let’s see.”

Tewarie said the problem with the VAT refunds is a cash-flow issue.

On Imbert, he said anyone who critically assessed his point of view is attacked – and since he was wrong with his economic forecast for 2018, (a projection of 1.9 per cent when it was negative 0.2 per cent) his predictions for 2019, 2020, 2021 and 2022 cannot be trusted. He also expressed concern that growth forecasts would no longer be done by the Central Statistical Office but by the Finance Ministry.

“I think we are in for a lot of trouble going forward.”

He also said no one knows what are the priorities of the Government at this time and the majority of citizens are concerned about their personal lives and the future of TT.

He gave advice to Trade Minister Paula Gopee Scoon and said she has take into account the following: ease of doing business issues; take charge of the export development company; address the under capacity issue at the TT Manufacturers’ Association; address the fact that Eximbank only spent $10 million out of the $100 million designated for growth of the manufacturing sector; pay attention to InvesTT; services loan under the Inter-American Development Bank (IDB) is basically languishing; and to look at the IDB SME network in established in 2014.