Pre-budget statement by Prime Minister Kamla Persad-Bissessar

From the office of the Prime Minister:

This year’s Budget presentation which will be presented tomorrow (Monday) by the Honourable Minister of Finance, takes place against a background of global economic uncertainty characterised by significantly reduced growth rates, the inability of major economies to produce productive and well paying jobs for their citizens, increasing loss of investor confidence worldwide, especially in the United States and Europe, and the imminent threat of trade wars as major economies seek to immunise domestic markets from the vagaries of world trade.

The U.S. is still reeling from low growth prospects, limited employment generation and growing deficits in its trade with the rest of the world. 

Trinidad and Tobago is now being inundated with increasing requests for jobs by our diaspora in the United States. 

In Europe, the threat of imminent bankruptcy faces several countries including Greece, Spain, Italy and Portugal. The traditionally defined developed world are facing as I speak, significant economic growth challenges compared to economies like China, India, Brazil and Indonesia. 

Although, even China, the bright spot in the world economy, has had to revise downwards its forecasts for economic growth due to prospects of declining global demand for its goods and services and the threat of an overheated economy.

In its October first cover story, the “Economist” magazine warned starkly its readers: “Until politicians actually do something about the world economy....BE AFRAID”.

Our Caribbean neighbours and a not inconsiderable market for our goods and services have been severely challenged to the point where the International Monetary Fund is now being considered as a potential source of assistance. 

While Trinidad and Tobago has been criticised by some local economists with respect to its economic expansion policies yet, all things considered, our country has done well to avoid the crises confronting global economies. 

We have not seen exponential growth in unemployment. Our businesses have not been closing down in the numbers which we have seen in other parts of the world. Liquidity remains high even as businesses and individuals become more careful in taking on new debt. Our foreign reserves are healthy. Our Heritage and Stabilisation Fund has a Net Asset value of US$3,882.7 Billion dollars as at August 31st, 2011.

The last year has been one of stabilising the economy to face whatever challenges the global community may present while at the same time ensuring minimal loss of jobs, reducing inflation rates which affect our cost of living, lowering crime rates to provide the requisite safety and security for our citizens and business community and establishing Trinidad and Tobago as a preferred investment destination by actions including legislation to deal with anti-money laundering and anti-terrorist financing.

AS we diligently protect Trinidad and Tobago’s economic future, I take this opportunity to compliment those Trade Unions which have, at great cost, put the long term interest of Trinidad and Tobago and that of future generations ahead of narrow sectoral gains. 

At the same time our country stands indebted to those employees who have in effect deferred their immediate gratification for the long term security of their country and their jobs. 

I wish to assure them tonight (Sunday) that once the economy resumes the desired growth path and our circumstances change their sacrifices would not go unacknowledged. 

Thanks also to the business community for keeping faith with Trinidad and Tobago and not engaging in reducing wages, retrenching workers or closing their businesses.

I wish to express gratitude to the protective services for going beyond the call of duty to create the environment necessary for business continuity and boosting investor confidence. 

In this regard, it is noteworthy that the British High Commissioner to Trinidad and Tobago alluded to the new reality that Trinidad and Tobago: “has never been safer place. There’s never been a better time to come here.” This is a far cry from the history of travel advisories that discouraged their citizens including investors to avoid our shores.

It would be remiss of me if I did not mention the various religious organisations (our imams, pastors and pundits) who have sought to provide our youth with creative outlets and spiritual guidance in these challenging times. 

Significantly important in raising our youth – the future generations of leaders – are the many parents and teachers who courageously, quietly, largely out of the glare of the public eye, and at great personal sacrifice serve our country diligently by ceaselessly instilling values, discipline, respect for others and civic commitment.

In our approach to development we will:

1. Seek to allocate expenditures in such a way as to meet the health, safety and educational needs of our citizens while studiously avoiding the debt trap which bedevils many developed and developing countries
2. Continue our thrust to maintain a social safety net so that the least fortunate among us will have a measure of protection
3. Provide the wherewithal whereby our at risk young population can be provided with increased opportunities to avoid a life of idleness and crime;
4. Reinforce our commitment to creating a knowledge-based, critical thinking citizenry in a wide range of skills who will ensure the future competitiveness and survival of our economy
5. Stimulate the economy by continuing to keep the inflation rate down, increasing productivity and putting our construction workers and others back to work. This Budget proposes to increase infrastructural development specifically in areas that will provide the jobs in engineering and construction sectors so necessary in reducing the unemployment levels. This will also go a long way in improving our transportation network and building our hospitals and tertiary institutions which translate to increased employment as well as productivity levels as a consequence of reduced traffic congestion on our roads
6. Provide incentives for investors and businesses to begin the task of providing well paying, productive jobs. It is my hope that our businesses will take advantage of the incentives provided in the budget and play their part to begin the task in earnest of putting our economy back on a growth path. In this regard, we may wish to note that there are a number of investment projects in the pipeline that hold the potential for significant investments for Trinidad and Tobago. In addition there are initiatives afoot to leverage this country’s petrochemical services expertise in emerging oil economies 

The first quarter of this century will challenge the wits of our country’s businesses, our leaders and our citizens to navigate the maze of challenges which exist globally and nationally. We are not alone in confronting these challenges. 

Now is not the time for sectoral grand standing or for frittering away our resources. Now is not the time to put our narrow interest ahead of those of all of Trinidad and Tobago. Now is not the time to lose courage as we face the enormity of the task ahead of us.

In August 1962 Trinidadians and Tobagonians took the decision on our own accord to become masters of our destiny. We said in effect that we had the discipline, the desire to be productive, and the tolerance to make our country the best that it could be. 

The time has come for us to rise up and take charge of our manifest destiny to be a leader in this region, in this hemisphere and in the world. God did his part. He gave us the human and natural resources to ensure success. 

I am convinced that we have the intellect, the know-how and the resilience to meet any challenge. We are as good as any; and better than many. We will overcome, as we must, this challenge of escalating crime and we will come out of this economic crisis with our heads raised high and our dignity intact. (There will be no resort to the IMF on our watch).

We will live up to the vision of those former slaves and indentured immigrants who laboured for centuries in this vineyard to leave us a land of promise.

This generation must bequeath to citizens yet unborn a legacy of discipline, tolerance and production. This is our duty and I call upon all citizens to join with me in making Trinidad and Tobago the great country that it ought to be and which it must become.

I have confidence in the future of Trinidad and Tobago. I have confidence in the people of Trinidad and Tobago. I have faith that the partnership between all stakeholders will lead to growth and expansion of the economy and bring about sustainable development, jobs and economic security for all of us. 

We have the collective resilience and determination to do what several developing countries have done over the last decade, now emerging as economic giants in their own right. 

It matters not our size. What matters is how we use our intelligence to add value to our natural resources, how we commit ourselves to the goal of productivity and excellence in all that we do, how we develop our competitive edge in the global economic space, and how we unite as a people above petty squabbles and instead focus on the need to coalesce around a vision of prosperity for all. 

No one of us can achieve this alone. We must work together with minds that elevate themselves beyond narrow political victories to a national cause for which we must all assume responsibility.

We are on the right path. Let us not get lost in the forests of rhetoric but find our goals in the commonality of our actions.

I thank you fellow citizens.
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