Tobago's government will host a three-day retreat
The government will hold a three-day retreat in Tobago next week where work includes planning and decisions on future spending since changes have to come.
Discussions include focusing on subsidies and channelling some of the US$644 million funding which T&T received from the International Monetary Fund (IMF) to assist small and medium businesses’ recovery efforts.
The government is still trying to assess the loss of Gross Domestic Product (GDP) in the pandemic, the Prime Minister said. However, he said Government was pleased, and T&T was very fortunate to get the IMF’s US$644 million. He said the funding would be used mainly to strengthen T&T’s position as we advance, encourage export marketing and fund the recovery that has to be done in many ways. It will also prevent T&T from having to borrow as much.
Yesterday, Prime Minister Dr Keith Rowley signalled this during an interview with UNC MP Bhoe Tewarie’s on the latter’s “Brighter Morning with Bhoe” (MCTV) program, which was carried live on TTT.
Rowley confirmed some funds would be used to support/help/rehabilitate small and medium businesses.
“Yes, absolutely… export marketing. We’re here to support those in this activity, and it will also help provide many businesses who’d have used their resources and allow them to continue work.”
He said Government had to get a model of expenditure and carefully administer it to allow this funding to be had. This is already being done, and the upcoming retreat, which he announced at that point, will focus on this.
Certain shifts may also have to be made. He noted that currently, Government’s spending a lot on subsidies. For example, $30 billion has gone to the fuel subsidy in recent years, which one had to consider if that had been used for other productive things, would T&T have been better off.
“And if you buy a million-dollar car, the state’s subsiding fuel cost —is that a good idea?”
He said such issues have to be addressed frontally now and the pandemic’s pushing T&T to do things differently. Rowley said the developmental program and subsidy expenditure pattern has to change, but it’s the pace at which that is done. He said spending 41 percent on transfers and subsidies cannot continue, and if so, T&T would always have to budget to spend money it doesn’t have. Therefore, adjustments to numbers in areas of fiscal allocations have to be made.
On another note, Rowley said that since it will affect people, the government will have to look at the pace of what’s done, “initiate change and stay the course.”
There will be conflict, but without changes that have to come, there will be no success, he added.
“Unfortunately, that’s Government’s assignment, and we’ll do it,” he added, indicating the risk goes with the job and if everyone who had a job to do, did as required, “We’ll come out of this a much better way.”
Rowley said T&T wasn’t yet in a post-pandemic situation, and 2021 is even more challenging than thought. The government had hoped it was ending, but it’s far from this and “literally wearing us down – but we’re staying the course, and survival is item number one.”
He said the retreat would also hopefully examine some of the issues of the “old economy” and the necessary new economy. But T&T cannot do without its lifeblood energy sector. He said BHP investments, for example, were part of the old economy, which yielded benefits, while the Digital Transformation Ministry is an area to make the shift to the new economy.
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