Foreign dealers to supply luxury SUV's for TT summit

A Trinidad and Tobago government minister has suggested that the Manning administration might have to turn to foreign car dealers to supply VIP cars for next year's two international conferences because local companies are asking too much to lease the vehicles.

Mariano Browne, minister in the ministry of finance, said Friday the lease option offered by local dealers is so high it's almost like buying the vehicles. And he noted in an interview with the Trinidad Express that time is running out.

The Summit of the Americas is scheduled to be held in Port of Spain in April 2009 and the Commonwealth heads of Government is in November.

The senator said, "We've had discussions but the companies' price in renting the cars was no different from buying." He said government is examining all options in trying to get the vehicles on time and according to the specifications required for the events.

Among the requirements are a glossy black paint finish on every vehicle and room for at least four pieces of luggage for heads of state, their spouses and accompanying officials.

Prime Minister Patrick Manning told a PNM general council meeting last month that Government never intended to buy any luxury vehicles and he has turned down a proposal from local auto dealers to bring in the vehicles duty and tax free.

The dealers said they are willing to provide the vehicles free to the government for both events. President of the Automobile Dealers Association Philip Knaggs still maintains that the government has a good and viable option to get the cars on time and at no cost.

He estimates that foreign supplies would likely want US$40,000 for each vehicle, much higher than what local dealers are offering. That's about TT$265,000 per vehicle. If the government is still looking for 200 vehicles the cost would run about US$8 million (TT$530 Million) which is five times higher the the original budget cost.

Knaggs told the Express the dealers' "creative option" of offering the cars for free remains the Government's best bet to provide transportation for the visiting dignitaries next year.

So far the dealers have not had a response from government, but Browne stated previously that offering dealers duty free concessions and letting them supply the vehicles free is not an option.

He said while it might appear that the offer is free, the loss of revenue from not collecting the relevant taxes and duties would be significant.

The government is looking for luxury Sport Utility Vehicles (SUV). If the government's "lost revenues" amount to $100 million, it would still be way below the cost of importing leased luxury vehicles, since they would have to be leased for a minimum period of one year with a buyout option.

If the state doesn't take the buyout option, it would have to pay the cost to return the vehicles to their foreign owners.