Economics and accountability

Minister of Finance, Mariano Browne, was reported in a daily newspaper as stating that the economy is approximately TT$136 billion, the non-oil sub-sector is approximately TT$76 billion. Just for the record these figures refer to the Gross Domestic Product. He is also quoted as saying that the fuel subsidy is approximately TT$2 billion (a payment by the Government to Petrotrin) therefore this payment is a small part, "two as a percentage of 76, it is a little on the low side".

It is also reported that in appreciating the difference between GDP and an expenditure on one item, in particular its multiplier effect in the economy and the error in comparing the two, a reporter ventured that the reduction in the subsidy would become a cumulative cost spiral in the country.

The Minister is alleged to have replied that these price rises would bear no relationship to the above percentage of the gas subsidy which got the response that it is this magnified figure that is the inflationary effect. When the Minister was accused of not answering the question on the inflationary effect of removing the subsidy it is reported that he said-"I can't help if you don't understand economics. I think that you should read more about economics so that you can understand what I say to you". This error is indeed amazing coming from a Minister of Finance! I am on record as supporting the removal of the subsidy in the context of restructuring the economy.

But the misunderstanding of the Minister is even more fundamental. I heard him say on television that though a cost benefit analysis was done with respect to acquiring the executive jet for the Government he would not recommend that the details be made public. Further, that he does not recommend that any enterprise run its strategic plans on the front page of any newspaper.

The fundamental error he is making in this case is that both CAL and the executive of this country utilise funds that BELONG to the people of this country. His bank in Barbados may be using private sector funds and does not have to report to the public in detail. The shareholders of CAL and the principals of the Executive are the people of this country (or their Parliament) and have a right to know what is going on with their money and to hold their agents accountable for its use.

But surely any shareholder of a listed company has the right to information in the company either by asking questions at shareholders' meetings or asking to see, say, the minutes of board meetings. The media are the mouth piece of the public of this country and all over the free world it is the vehicle that helps maintain governmental accountability. It is because of the media that we are aware of this Government jet fiasco.

Of more importance though is the establishment of the Joint Select Committees by the Constitution of this country that are charged with the oversight of the Executive and Government companies like CAL with respect to their effectiveness and efficient use of public funds. This is why the last set of committees, chaired by the Independent Senators made their mark in ensuring that these bodies report to the people through these committees on their performance.

This is why the people were able to see the ineffectiveness of our health sector, our security systems, the incompetence of our public sector construction, the poor performance of the successors of Caroni etc. This is why our people were able to see the violation of our Constitution by our managers in the energy sector when they refused and are still refusing to answer questions on how we are selling our natural resources. This is why our Prime Minister can say that the JSCs were a failure under the chairmanship of the Independent Senators-they did their job.

If the JSCs were operating today with the chairmanship of the Independent Senators then CAL and the staff of Minister Browne would under the Constitution have to provide a justification for the acquisition of the Government jet. If CAL and the Minister thought that this was secret then the JSCs could hold the information gathering meeting in camera, but the information must be given to the people's Parliament.

This is probably why there is an impasse between the Executive and the Opposition re the appointment of these committee chairmen. Transparency and accountability are the hallmark of good governance. Minister Browne does not appear to support these fundamental concepts nor does he appreciate the difference between a private sector company and one owned by the people.

Commentary by Mary King published in the Trinidad Express, March 17, 2008.

maryking@tstt.net.tt