PNM squandermania takes T&T from riches to rags: Panday

Opposition leader Basdeo Panday told Parliament Friday the reckless spending of the Manning government has taken Trinidad and Tobago from riches to rages and brought the nation to the brink of financial ruin.

The former prime minister was speaking in the budget debate. He slammed the government for increasing the national debt while ignoring the most basic needs of citizens.

He noted that within two years the government amassed a debt of $16.2 billion, calling it nothing short of gross fiscal mismanagement. "I predict the Minister's free handedness with the public's money will result in a deficit in 2010 of more than the $7.7 billion she claims here today," he said.

Panday had some suggestions of his own for better use of the country's finances and management of the economy, including:

• a$15-$20 minimum wage
• a farmer's insurance scheme
• an increase in the disability grant
• an increase in the old-age grant to $3,000, indexed to inflation
• an increase in the compensation of victims of crime to $250,

Panday said the UNC he would also

• legalise the Special Anti-crime Unit of Trinidad and Tobago (SAUTT)
• appoint more judges and magistrates
• computerise the police, court and licensing division
• implement the breathalyser law
• appoint a DPP and Solicitor General
• employ CEPEP workers in agriculture and manufacturing sectors

The other side quipped that Panday's plans would "bankrupt the Treasury."

Panday was highly critical of the motor vehicle-related fines, saying the penalties are based on the presumption of continued lawlessness.

"This is the first time I have seen the success of a budget based on an increase in crime," he said. He predicted that the fines would have no effect on improving road safety "because there were simply not enough police officers available for these fines to make a difference."

He called the measure "a desperate attempt by a Government on the ropes, to grab money from anywhere possible to fund its squander mania. From a $50 billion budget last year to picking the pockets of motorists to fill the void caused by squander mania, how far we have fallen, and so fast".

He also commented on the new the property tax of three per cent on annual rental value for residential properties, calling it regressive. Panday said the levy would discourage home ownership and suggested that it was a contradiction since the government had encouraged many persons to acquire, offering them grants and loans.

"The punitive effect of this tax will be felt most by those who built in what were once rural areas like Princes Town, Couva, which have become towns and those who live along the major roadways of the country," he predicted.

He expressed concern that pensioners who had saved their money and invested it in the homes would be hard-pressed to pay these taxes on a fixed and low income.

Panday described the budget as "shameless" and said the Minister of Finance had merely extracted excerpts from her predecessor's "bag of broken promises to pad her budget speech".

He outlined broken promises:

• A pledge to establish a praedial larceny squad
• The promise to increase CNG stations
• The promise to construct the Point Fortin hospital

With regard to the hospital he quoted from five previous budget speeches: "They did not build it in 2005, 2006, 2007, 2008, 2009 and they certainly will not build it in 2010."

He also scoffed at promises to build several highways "or is it the highway of promises?" he wondered.

Panday said the measures outlined for 2009/ 2010 Budget are similar to the past seven budgets, with false promises that the government does not intend to keep.

"Do you think they will keep these promises now when money is scarce?" noting that when the country was floating in money the Manning administration fulfill its pledges.

Panday reserved some time to slam the Government on corruption. And he promised that a UNC Government would investigate "with intent to pursue criminal charges based on the current revelations of the UFF Commission of Enquiry into UDeCOTT and the construction sector."

He added, "There is no reason to wait until the commission submits the report... The DPP should act now".

He also touched on the CL bailout issues, making reference to allegations against the finance minister, who withdraw millions of dollars from the financial organization immediately before she announced a bailout for CL.

"Having safely extricated herself from the fate of other less fortunate CL Financial depositors, the Minister seems to have lost sight of what the real challenges facing this country are," he said.

He said the budget made no attempt to address crime, corruption in the state sector, poverty, sabotage of the agricultural sector, an inefficient health sector, high food prices and massive flooding among other pressing needs.

He called the government's boast of "sound fiscal discipline and management of the economy" a joke.

"Mr Speaker, joke is joke, but does the Minister really believe that the population is so stupid as to swallow that?" He recalled that within weeks of the 2009 budget the finance minister admitted that she "got it wrong" and had to review and still ended up with a deficit larger than the one predicted.

Panday concluded that there is no justification for spending as if it is business as usual, calling the strategy "stupid". And he reiterated that the Manning administration's misplaced financial priorities have taken the country to the brink of ruin.