PM: Kamla's 'madness' would lead to unrestrained devaluation

THE PRIME Minister said a suggestion by Opposition Kamla Persad-Bissessar that TT's exchange rate should be subject to market forces would lead to unrestrained devaluation of the TT dollar and higher prices.

He was speaking at a PNM post-budget public meeting held last night at the Arima Town Hall.

He said Persad-Bissessar in her budget response was "all of a sudden an economic expert" and he swore that some of the paragraphs from her was pulled from Bloomberg or MSNBC. Dr Rowley said Persad-Bissessar announced she would increase interest rates and let market forces determine the exchange rate. He said the exchange rate in 2015 was $6.33, Finance Minister Colm Imbert said he would defend the rate up to $6.85 and the rate as at September was $6.77.

"She find we did too well. Let market forces determine the exchange. Once you have that you will have rolling devaluation."

He added: "The next thing you know the exchange rate gone. Take off."

Rowley stressed the Government had no control over market forces and leaving the exchange rate up to market forces would lead to unrestrained devaluation. He said with increased interest rates and a devalued dollar people would automatically have to pay more for items.

"She trying to bring a manifesto that is stillborn. But you have to say something."

Rowley said Persad-Bissessar also announced that corporation tax would be cut in half from 30 per cent to 15 per cent and that was an attempt to try to be "popular with everybody" but would lead to vastly-reduced revenue.

"If you put God out of your thoughts with these UNC mad people instead of $12.9 billion (in revenue) you would collect $6 billion."

He also spoke about a social media post with a woman claiming she paid 35 per cent more on her water bill. He said this was produced by "UNC imps and bots" and there had been absolutely no conversation or decision about the water rate. Rowley described it as "fraud" and a UNC fabrication to fool people. He added that only the Regulated Industries Commission could increase water rates.

"Is the grace of God save us from them in 2015."

He said the Opposition Leader had been calling for a general election hoping that local government elections would be postponed and general election held. Rowley said that was why her budget response was her general elections manifesto.

"Lady that is the wrong manifesto."

Rowley said Persad-Bissessar could not describe the budget as a good one because she wanted people to vote for her. He said, however, that it provided an opportunity to examine "the level of madness" of the Opposition.

He recalled in 2014 when total revenue was $58 billion the UNC spent $62.8 billion and in 2015 when revenue was $57 billion spent $59 billion. He said that Persad-Bissessar had a chance then to balance the budget which she is now asking the Government to do and promised to do if returned to office. Rowley said, however, that if the PNM had balanced the budget in 2016 then $8 billion in expenditure would have to be cut and the economy would have collapsed. He also said the Government had to borrow to prevent a collapse and the focus on borrowing locally was "not bad."

"(The Opposition) wanted a collapse. After five budgets there has been no collapse."

He said the Opposition had cast aspersions on the Elections and Boundaries Commission (EBC) but their job was to follow a mathematical equation in the law and the boundaries were adjusted to comply with the law. Rowley said he was surprised that a seasoned politician like Tabaquite MP Surujrattan Rambachan would claim the EBC was "in cahoots" with the Government and would provide an advantage for the PNM in Barataria.

He said that he did not subscribe to the belief of a "PNM area" and every voter is a potential PNM voter. He added that the party does not "mortgage" people's votes.

"Some of the most vicious people against the PNM is black people."

Rowley said historically the vast majority of PNM supporters were from urban areas where mostly Afro-Trinidadians reside and the majority of UN support was in rural areas where mostly Indo-Trinidadians reside. He said, however, that was changing and the party support "is going to shock some people."

He added: "We are not campaigning to that. We are campaigning to facts."