And he said since the government is short of funds the contractors should consider accepting bonds in payment of the debt.
The Works and Transport Minister was speaking at a dinner hosted by the Contractors Association at the Trinidad Hilton.
"We are open to meeting with you, and indeed consultants, to find a means of settling all of the verified accounts and claims which you have against the State, whichever arms of the State you have worked for," Warner said.
However he urged contractors to submit only claims that have agreed Payment Certificates, not those that are yet to go through negotiations to be verified and eventually certified.
"We are aware that this process must begin immediately, and a formula agreed upon and implemented within the shortest possible time," he said. "We must settle with you, as soon as we can, and in the best ways we can, to ensure that your bankers and creditors do not foreclose on you and also that the industry does not collapse," he added.
He reminded the contractors that the debt is from the previous Manning government and made the point that it is not the first time that a PNM administration had refused to pay its debt.
"In 1986, when the NAR Government came into power, they too found that they were owing, 'on behalf of the State', millions of dollars to the local construction industry. Then, like now, the foreign contractors and consultants had all been paid," he said.
Warner stated that in 1987-88 the NAR Government, at the request of contractors settled the State’s debt to them by issuing bonds to the value of the outstanding debts, which could be sold to the banks. "We ask you to keep this option on the table as you discuss a problem of which we had no knowledge when we came into government," the minister said.
"We all know that settlement in cash is not an option we have at this time. It is not that we do not want to settle in cash, now, it is simply not possible. So let us work together to find the next best options," Warner said.
The minister also noted that many contractors are working below their capacity. and promised that the government would listen to suggestions "on how we can accelerate some of these projects" to get the industry back on its feet so the country begins to get back on the road to development.
He pointed out the many projects for which the government will need the work of local contractors from dredging rivers and repairs to drains and culverts to major projects such as building new highways and bridges.
"We need hospitals and health care facilities, new police stations, fire stations and district government offices, and a new, modern Licensing Office in Central Trinidad...I do not think that we need any more office towers in the city. So do not look for those! Not from this Government!" he declared.
He also urged the private sector to invest in new and modern facilities, factories, plants. And he suggested that contractors could help themselves by coming up with infrastructure and building projects that can be viable and bankable within the private sector.
Warner also challenged contractors to develop a system of licensing of contractors that would act in many ways as a self-regulating system for the sector. "This is absolutely necessary for many industries and sectors. Why not the construction industry?" he asked. "You develop the criteria for the various subsectors and the State establish the necessary framework in which to operate."
"Help us to help the rest of us to grow up. That is the “developmental role” I assign to you tonight, and for your own benefit, I might add!
"Your role is critical, for without you nothing would get built, unless we revert to the colonial mindsets of “Government to Government Contracts” and the importation of Chinese labourers and wheelbarrows.
He promised that government will do its part to help protect the local industry by introducing a Lien Act whereby all foreign contractors are required to post a substantial bond upon award of a contract.
That would ensure that "if for whatever reason the work is unsatisfactory, incomplete or even in the event of non-payment to local subcontractors, the state or client will not be left holding the rotten end of the stick," he said.
He also spoke of the criticism that Prime Minister Kamla Persad-Bissessar faced for supporting local contractors who might get work for reconstruction in the hurricane ravaged Caribbean. And he thanked Emile Elias "for presenting the most succinct, cogent and simple case to support our Prime Minister’s absolutely correct statement that they should buy our goods and services when we offer to assist them.
Warner also reminded his audience of the request he had made for all contractors engaged in the construction of the 2001 World Cup Stadia to make donations to the running of that World Cup Tournament, and for road-building and paving contractors to consider paving certain roads for free.
He said the offers are still open to any one of who wishes to take them up! And he assured contractors that everyone would be treated fairly by the People's Partnership government.
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