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alexk
Guest
The Tobago House of Assembly (THA) wants a total of more and four and a half billion dollars from the Central Government to run the island’s business in the next fiscal year 2019. Of that amount, $3.2 billion is for recurrent expenditure and $1.38 billion for the island’s development programme.
Finance and the Economy Secretary Joel Jack, in presenting the fiscal package yesterday, made it clear that the urgent need to intensify a diversification programme could not be “overstated”, as he announced plans for improvements in the tourism product, agricultural sector, an accelerated housing programme and improvements in the road network.
Of the $3.2B, Jack said $901.2 million is for personnel expenditure, $1 billion for goods and services, $113.7 million for minor equipment purchases and $1.1 billion was for transfers and subsidies, an increase of $40.7 million from last year’s request.
Jack said the request for $1.38b for the island’s development programme represented a $328.4m decrease from the 2018 estimate. Of that amount, $263.7m will be spent on economic infrastructure and $230.9m on social infrastructure.
Jack said 62 per cent of the people on the island are employed in the state sector and 38 per cent in the private sector. In the last year, he said unemployment had grown to 6.6%, up from 4.8% in 2016. Jack said the data pointed to the urgent need to diversify the economy.
As he unveiled the fiscal package, Jack admitted the private sector on the island had faced challenges because of the air and sea transportation problems, assuring that the THA will continue to work with the private sector. He said the inter-island transport system provides “critical support”, particularly to the tourism sector and over the past year it had become “a major source of concern for Trinidadians and Tobagonians.”
The impact of the problems on the sea and airbridge, he said, were “far-reaching” and includes not only the business community but the wider population. He thanked Tobagonians “for their patience while we seek to find a sustainable solution.” He said although things had improved significantly, the objective was to ensure that Tobagonians and visitors alike can travel between the islands in a “dignified manner”.
In that regard, he said the THA is in discussion with consultants to conduct a study on the inter-island transportation system. This study includes a review of the operations, evaluation of management structures and the “possibility of alternative arrangements for improved travel.”
Jack said he was also “heartened” by the news from the Prime Minister’s visit to Australia that Government will acquire two new fast ferries for Tobago. “These vessels, along with the Galleons Passage, will replace the ageing fleet and minimise the current challenges on the seabridge,” Jack said.
Jack also announced that administrative challenges with the Land Licence Regime, which had affected foreign direct investment on the island, is being reviewed and a statement will be issued shortly.
Among the development projects on the cards is a new cargo port for Tobago. He said the consulting engineering firm Lee Young and Partner was contracted to conduct a feasibility study to select the best location for the commercial cargo port. The study is at an “advanced stage and a final report is expected before the end of the fiscal year. A commercial cargo port will facilitate the development of the light manufacturing sector and improve the efficiency of commercial activity between the two islands, he said.
Declaring that current economic challenges “compel us to take a more strategic approach to the way we conduct business”, Jack quoted Chief Secretary Kelvin Charles as saying “it is business unusual.”