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Wednesday September 19, 2001 393 Oral Answers to Questions Wednesday, September 19, 2001 HOUSE OF REPRESENTATIVES Wednesday, September 19, 2001 The House met at 1.30 p.m. PRAYERS [MR. SPEAKER in the Chair] ORAL ANSWERS TO QUESTIONS The following questions stood on the Order Paper: Caroni (1975) Limited (Annual Rent Due) 30. Could the Minister of Enterprise Development and Foreign Affairs state: (a) With respect to the lease of lands at Caroni (1975) Limited to INNERCOB Industries Limited for the establishment of InnCogen and other industries in 1998, what is the annual rent due to Caroni Limited? (b) How much money has been paid by INNERCOB to Caroni (1975) Limited as at June 30th, 2001? (c) If any arrears are owed to Caroni (1975) Limited, could the Minister further state: (i) for which year/s and how much is the total indebtedness; and (ii) what action the company intends to take in order to collect, in a timely manner, all moneys owed to it by INNERCOB? [Dr. K. Rowley] Charlotteville (Overall Plans) 34. (a) Would the Minister of Transport, Tourism and Tobago Affairs inform this House of Government’s overall plans, including a schedule of dates for the development of the port at Charlotteville, Tobago? (b) Would the Minister indicate whether consultations were held with the people in Charlotteville on Government’s plan for the port, and if so, could he specify? (c) Would the Minister say what Customs and Immigration facilities are in place at present to facilitate the (almost) daily arrival and departure of yachts and other crafts using the port? [Mr. N. Moore] 394 Oral Answers To Questions Wednesday, September 19, 2001 Secondary School Syllabus (Form Is Special) 41. (a) Would the Minister of Education indicate whether children registered for the Form Is Special for the up-coming school term are to pursue the regular Secondary School syllabus or curriculum? (b) If the answer to (a) is negative, would the Minister outline the syllabus they would pursue and explain the rationale for this programme/syllabus? [Mr. F. Hinds] Biche Government Secondary School (Delay in Construction of) 43. (a) Would the Minister of Education state the reason(s) for the delay in the construction of the Biche Government Secondary School? (b) Could the Minister tell this honourable House the cost of construction and furnishing of this school? [Mr. F. Hinds] Secondary Education Modernization Programme 44. (a) Would the Minister of Education outline the schools that have been constructed so far under the Secondary Education Modernization Programme? (b) Could the Minister state the amount budgeted for construction in each case? (c) Would the Minister outline the actual cost in each case and explain the reasons for the difference, if any? [Mr. F. Hinds] The Attorney General and Minister of Legal Affairs (Hon. Ramesh Lawrence Maharaj): Mr. Speaker, in accordance with the established practice, I would move that these questions on the Order Paper be deferred until after the budget debate. Questions, by leave, deferred. NATIONAL RACING COMMISSION BILL Bill to provide for the establishment and operation of the National Racing Commission and for matters connected therewith [The Minister of Enterprise Development and Foreign Affairs]; read the first time. BETTING LEVY BOARD (AMDT.) BILL Bill to amend the Betting Levy Board Act, No. 35 of 1989 [The Minister of Enterprise Development and Foreign Affairs]; read the first time. 395 Gambling and Betting (Amdt.) Bill Wednesday, September 19, 2001 GAMBLING AND BETTING (AMDT.) BILL Bill to amend the Gambling and Betting Act, Chap. 11:19 and for matters connected therewith [The Minister of Enterprise Development and Foreign Affairs]; read the first time. TRINIDAD AND TOBAGO RACING AUTHORITY (AMDT.) BILL Bill to amend the Trinidad and Tobago Racing Authority Act, Chap. 21:50 [The Minister of Enterprise Development and Foreign Affairs]; read the first time. APPROPRIATION BILL (BUDGET) [SECOND DAY] Order read for resuming adjourned debate on question [September 14, 2001]: That the Bill be now read a second time. Question again proposed. Mr. Patrick Manning (San Fernando East): [Desk thumping] Mr. Speaker, this budget has brought into stark focus some major differences in outlook between the UNC and the People's National Movement in a number of important areas. We find it inconceivable that the budget presented by the Minister of Finance can be so devoid of the excellent analysis done by the staff of the Ministry of Finance in the Review of the Economy with respect to the current international economic environment and our own domestic objective situation. The realities of the prevailing economic environment have been totally ignored in the preparation of the Minister’s budget. While the Review of the Economy points to the weakening of global economic activity, the marked slow down of growth in the United States, the continuing decline in global equity markets, the expected increases in unemployment for most of the major economies, the fragile recovery efforts in Japan, the slower domestic growth in Europe and in a number of emerging market economies, consumption and investment restraint, lower business confidence, risk aversion, and the world is still coming to terms with those tragic and horrific events in New York and Washington DC last week; while that is happening, the Minister piddles and tinkers with economic measures, offering a palliative here, a 1 per cent there, zero-rating salt fish and blue soap and confusing the tax and value added systems. While talking about the tragic events in the USA last week, we find it very strange that the Government was not moved sufficiently by these events to call for national prayers. Accordingly, we would like to declare Sunday, September 23, 396 Appropriation Bill (Budget) Wednesday, September 19, 2001 [MR. MANNING] 2001 as a national day of prayer in honour of all those who lost their lives in the events in New York and Washington last week. [Desk thumping] We are calling on all denominations to offer special prayers on Sunday for such persons and we are inviting members of the national community to attend and worship at your regular places of worship. The Muslim community is asked to worship on Friday, September 21. The PNM wishes to offer our heartfelt condolences to the bereaved. Mr. Speaker, what really does the Minister hope to gain by changing the date for the filing of VAT returns? What informed the decision to reduce individual and corporate taxes by a mere 1 per cent? If the Minister was unable to provide a significant reduction in tax rates, would it not have been more efficient to leave the rates where they were and abolish that vexatious green levy? Is he not unduly cluttering up the tax system that previous Ministers of Finance painstakingly simplified? Where are the measures that will address our declining fortunes in crude oil production, in manufacturing output and in agriculture? The Review of the Economy points out that world output is projected downwards to 3.2 per cent for 2001, from 4.8 per cent in 2000, and that the direct impact of the global slowdown would be felt most by those countries with strong trade links to the United States of America. May I remind the national community that the United States is Trinidad and Tobago's main trading partner, accounting for approximately 44 per cent of our exports and 43 per cent of our imports. With respect to the domestic economy, the Review informs us that the economy grew at the slower rate of 4.2 per cent in 2001, compared to 6.4 per cent in 2000, down from the Government’s projection of 5 per cent growth. What is even more disconcerting is that the growth in the economy in 2001 is, at best, suspect, and in reality, shows a weakening of the real sectors in agriculture and manufacturing which recorded declines of 2.1 per cent and 0.2 per cent in 2001 respectively, compared to growth rates of 6.3 per cent and 8 per cent in 2000. In the fiscal year, 1993, the structure of the supplemental petroleum tax was revised to include tax credits for well workovers with a view to stimulating oil production and arrest the downward trend in that production. The incentive worked, such that crude oil production, which reached a low of 44.6 million barrels in 1994, rebounded to 48.1 million barrels in 1995. The absence of further fiscal stimulus, coupled with the corruption surrounding the Soldado West Field, have resulted in annual declines in oil production since 1996, to an estimated 41 million barrels in the year 2001. This trend is expected to continue in the year 2002. So crude oil production is down. Output in agriculture is down, output in manufacturing is down, and there are no coherent policy initiatives in the 397 Appropriation Bill (Budget) Wednesday, September 19, 2001 Minister’s budget to arrest the decline in these real sectors of our economy. In fact, the tinkering by the Minister, or the piddling, if you like, in this budget, would worsen the already delicate situation, causing further declines in the real sectors of the economy. Growth in the energy sector in fiscal 2001 is a result of PNM initiatives in fertilizer, methanol, urea, iron and steel and in LNG, coupled with higher oil prices. 1.40 p.m. Moreover, Mr. Speaker, any slow down in the US economy would cause Europe to experience a decline. Such a weakening in the international economy would impact negatively on the demand for ammonia, urea, methanol, steel and LNG and cause prices to fall sharply. In the non-oil sector growth is somewhat illusory as it is mainly in the services sector, more particularly, in government services, electricity and water, and in the distribution and restaurant subsectors.
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