Businesses await THA approval for $60m credit note

Tobago Chamber of Industry and Commerce president Diane Hadad is calling on the Tobago House of Assembly (THA) executive council to approve a credit note that would allow businesses access to $60 million to recover from the impact of the covid19 pandemic.

Hadad was speaking on December 15 during a public forum hosted by the chamber – Tobago Economy in Crisis ­– at Rovanel's Conference Centre in Bon Accord.

She said during the 13 years of the last PNM administration, there were "very selected" beneficiaries and many in the private sector fell apart. The island, she said, spoke very clearly in the last THA elections – voting 14-1 for the PDP – and based upon the results, there was expectation that there was a demand for new beginnings. This changed within the last two months, with 13 elected PDP assemblymen resigning from the party arising from a fallout between the Chief Secretary, Farley Augustine, and the party's leader, Watson Duke.

She said she felt disappointed the conversation today are not in keeping with the leadership mandates which were used "to win the hearts and minds of our people, and even our bankers who felt finally Tobago would be doing better, they would be in a position to support us.”

Hadad said after a two-year lockdown, she can only report that, in accordance with Central Bank guidelines, the account files for private sector borrowings are being sent to Trinidad, “as possibly Tobago may go up for sale very soon.”

“To look a little closer, our roads and drains infrastructure is much to be desired. Our transport – both sea and air – are not friendly as we face airfare increases in a couple days. plus penalties.

"In case anybody didn’t catch the drift, it's not just a $400 fare – the fare and $50 penalties would still be there if you miss your flight.” The airfare increases to $200 one-way from January 1 with a $50 fee to change flights.

She added: “So to the parties moving, please understand that all those costs get down to the bottom line of you being able to freely move to operate, whether it’s your business or even your personal life, whether it’s for education or health purposes – things that are not necessarily available on the island.”

She also said there continues to be no cargo vessel sailings every time there is a cruise ship docking.

She said the economy is not in a good place.

“Therefore, where do we go as a private sector in an environment where there is all this instability, when you have to convince financial institutions to support you, not in good times but actually in bad times.”

She said many people who wanted to attend the forum were at their businesses “doing the work themselves” as they could not afford to hire staff.

“And therefore, that goes all the way down into whether people are unemployed – whether we are leaving them on the blocks, and if we are leaving them on the blocks, are we encouraging them to get into drugs and guns?

"So are we part of the problem for the crime? And that whole cycle goes on and on, and until we see that we are all interlinked, and everything we do is connected to each other, until we get that in our heads clearly, I’m not sure that we are going to fix these problems in the macro way.”

She said she had made a proposal for recovery to the THA, after being asked to do so by the assembly.

“Initially it was a $60 million output for a guarantee where they will have between an 18- and 24-month moratorium.

"I did not see the final document, so I do not know what is in it finally, but he (Augustine) had given what his requirements were – 18 to 24 months moratorium with reduced interest rates and interest to be paid only until after the two-year period has passed, giving the business community time for us to get the other things back in order. Also giving him and his THA time to get tourism and whatever activities we’re going to do to drive economics on the island to ensure we get out of where we are.”

She claimed, “A Memorandum of Understanding (MoU) was done between the banks and the THA and all it was waiting on is the executive council note to be done and the funds allocated to get the business community, the assistance needed in order to get out of the financial effects of the pandemic to get them back up on their feet to get capital back into their businesses.

"He wanted to do something specific for the island and that is when we were engaged and that’s when the assistance was brought forward. The intention was for it to be launched at the end of June – the actual documents and so were actually not ready until July however from July to now, we’re still waiting and dancing, but we’re not sure to which sound.”

She added, "The documents were done, the MoU was done, the THA’s representatives legally has vetted them, and everything is waiting on an executive council note to give the business community the opportunity to get their businesses back on the feet – to treat with moratoriums, to treat with that aggravated interest rate, to treat with all of those things. The negotiation was already done.”

Hadad said she attended a function two days before the forum and was "totally embarrassed" to face the people she had approached.

“They said to me, 'Wow, we finally thought the politics was changing... and we thought that they were serious and this was going to happen for the island of Tobago, because as bankers we understand how you all have struggled for so many years.'

“And therefore, it’s sad that we can’t get that done after many promises, e-mails, text messages, phone conversations and to date, zero.”