Panday slams gov't's spending, demands change in economic direction

Opposition leader Basdeo Panday on Wednesday demanded that the Manning government "come clean" with statistics about the economy, which he said
continues to deteriorate in the midst of the global economic crisis.

In a news release the former prime minister said given the current economic situation the government should be focusing on productive future expenditure, not wasting money on "prestige projects."

Panday was reacting to Tuesday's economic outlook that Central Bank Governor Ewart Williams presented to the media and interests groups.

Panday said, "We know that our economic future looks bleak since slower economic growth would lead to higher unemployment and social unrest, even as the Prime Minister carries on with his unscrupulous spending."

He added, "If you have consecutive quarters of negative growth it obviously means that Trinidad and Tobago is in a downward economic spiral. Mr Williams seems to indicate that the worse is yet to come and this meshes with the conclusions we arrived at when the prime minister recently declared that it was belt-loosening time and then he failed to define what he meant by belt-loosening," Panday said.

The Couva North MP, who is also an economist, said the nation should be focusing on the kind of infrastructural projects that would build up the necessary framework to attract the type of investment that T&T needs "to take us through a tough financial climate".

He agreed with Williams who advised the government to cut back and defer new projects.

Panday demanded that Government provide statistical data on the true position of the economy and he said he wants to know what policies or programs the Manning administration has devised to address the current financial crisis.

"I want Mr Manning to come clean with the real figures, because he has repeatedly refused to do so. Businesses have already begun sending home staff, they are cutting production and surplus spending.

"What worries me is that the same thing may occur with Government’s social programs where single parents, pensioners and the physically challenged would be worst hit," he said.

Panday noted that "A year ago when the U.S. began reporting a downturn in their economy following the crash of their housing market, which led to a recession around the world, the PNM administration recklessly insisted that Trinidad and Tobago was not experiencing any downturn, against the advice of world financial bodies, senior economists and the nation’s leading banks."

He said the government still refuses to cut back on spending or even put measures in place to prepare the nation and economic system for what could be a financial devastation.

He advised the administration to halt its expenditure on prestige projects and divert the money to necessities "so that every home can have water, that watercourses are cleared, hospitals have beds, roads are rehabilitated" and on introducing proper crime fighting methods.