Opposition Leader: Minimise economic fallout

The Opposition Leader is calling on government to immediately implement plans to restart businesses and the wider economy to minimise the upcoming economic fallout.

She wants government to look at the UNC’s economic transformation plan, which was rolled out since the last budget.

In a release, Kamla Persad-Bissessar said expenditure for the 2020 budget was based on an oil price of US$60 per barrel and a gas price of US$3 per MMBtu, but both commodity prices have been lower than projected in 2020. However, prices for June contracts are still in the US$20 range, so TT can hopefully expect a rebound to that range when the shutdown is over and summer driving season begins in the US. Additionally, natural gas prices are low in summer because there is no need for heating, and demand drops.

She said the reduced income from these commodities will have to be replaced with increased income from the private and non-energy sectors.

There is a risk of losing as much as six months of production if these sectors are closed much longer, she said, because of the additional time needed to restart production and supply chains as well as reduced demand from consumers.

She said TT's exporters will be forced to compete with low priced dumping of products for other countries who will get rid of backed-up inventories.

Persad-Bissessar said this will lead to businesses and government being unable to pay their existing wage bills, leading to increased unemployment once the shutdown is over. This will extend to those employed by the government, she warned, as it will become increasingly difficult to borrow money because of government’s low credit rating, high debt, decreased foreign exchange inflows, and decreased income from the private sector.

She repeated her call for the immediate implementation of enhanced health, hygiene, sanitation and occupational safety protocols at all places of business and government offices so they and the wider economy can be reopened without endangering people’s health when the shutdown is over. Most of these protocols and practices are already in place in the industrial sector, she said, and can be transferred to other sectors.

Persad-Bissessar said these can be combined with staggered working hours for different sectors, continuing social distancing measures and limiting recreational activities to an acceptable minimum.