Manning suggests private sector keeping inflation high

Prime Minister Patrick Manning told senior government officials and private sector representatives on Tuesday the downturn in Trinidad and Tobago's economy is “temporary” and insisted that his government’s development programs would continue.

Manning spoke at a breakfast meeting in Port of Spain. He said the prevailing socio-economic situation would not hamper plans to have Trinidad and Tobago attain developed country status by 2020.

“My friends, the economic downturn that we are experiencing is temporary in nature. It is not everlasting, it is temporary in nature and that too shall pass,” Manning told the meeting.

He pledged to maintain the social safety net while ensuring “that there is support for those in our society who are least able to take care of themselves and lest able to go through this downturn unassisted”.

Manning said, “We don’t lose sight of our premier objective of developed country status by 2020 and we continue to plan and implement the plans we are moving ahead and the show will go on.”

Manning also announced plans to investigate the private sector to determine why inflation remained at 11.7 per cent.

“When you look to see what has happened to prices at the international level you ask yourself why it is that is not truly reflected in Trinidad and Tobago. Somebody somewhere in there may have a different point of view from the government.”

Manning said he would soon be holding talks with the Trade and Industry as well as the Legal Affairs Ministers to discuss the situation.

He also said he would assign Minister of Trade and Industry Mariano Browne and Minister of Legal Affairs Peter Taylor "to engage in discussions with the business community to see exactly where the problem is, who is doing what and to bring the weight of Government's influence to bear on driving these prices down," adding that "the people of Trinidad and Tobago are not here for the profiteering of individuals."

Manning also defended his government's expenditure to the host the Fifth Summit of the Americas earlier this month saying that the country is already experiencing returns on the venture.

“So when people talk about the cost of the summit and when some people try to downplay the benefits, only time will tell. It is either have faith or we don’t have faith.

“We in the government have great faith, my friends, that the approach is one that will bring tremendous returns to our country in due course,” he said.

He added that the state-owned Urban Development Corporation of Trinidad and Tobago (UDECOTT) has had “a number of inquiries “particularly of the Port of Spain waterfront where the summit was held, adding “already we have begun to see benefits by the way of the investments we anticipate in Trinidad and Tobago”.

No Recession

Last week, Central Bank Governor Ewart Williams warned of further job losses as the economy of the oil-rich twin island republic remained stagnant. However he said despite the gloomy situation there is no recession in Trinidad and Tobago. A recession is defined as two successive quarters of negative growth.

“Strictly speaking it is not a recession, it is absolutely not a recession, it is a kind of stagnation. I guess that would be the word I would use for no growth, stagnation,” Williams told reporters, adding that the local economy was slowing faster than what was initially anticipated.

“The indicators that are available so far suggest that the rate of deceleration of the economy is happening even faster than we anticipated. In the summary indicators we have given you, I point to the slow down in the energy sector where firms have been closing down, where exports of energy products have declined sharply.”

Williams said that there is also a significant reduction in retail sales, a slowdown in construction adding “so the indication shows that the economy is decelerating sharply”.

The Central Bank Governor said that while inflation had dropped in other countries of the Caribbean, it remains at “an uncomfortable level” in this country.