Dookeran says T&T economy stable; hints at better deal for public sector workers in new agreement

Finance Minister Winston Dookeran on Thursday presented an upbeat picture for the national economy in 2012.

Speaking at the post cabinet news conference, Dookeran said is confident about the new year because it has put the economy on the right track despite having to sometimes navigate a tricky path. 

 “We are fortunate that after 18 months in office and having inherited a situation in which it appeared as if the financial situation was about to fall, that we have been able to correct the problem,” he told reporters.

The minister said the Government has had to take creative policy decisions on matters that would have disrupted the economy, such as the CLICO matter. 

He said negotiations will begin soon with public sector unions for the period 2011-2014 and suggested that unions may be in line for more than a five per cent wage offer. 

"We are viewing 2012 with a new sense of confidence that we have put the economy on the right track,” he said, noting that such a view is reinforced by the recent Standard & Poor’s assessment of T&T’s A/A-1 credit rating.

He said the Standard & Poor’s report made three salient points:

• Economic recovery, small as it is, has begun in T&T
• The financial side of the economy is stable
• The Government has navigated the major hurdles, particularly the CLICO fiasco
• Dookeran predicted that there will be economic stability in 2012 as beyond. 

Noting that investment in the private and public sectors is necessary for  economic growth for 2012, the minister disclosed that Government will embark on a programme to encourage investment in the new year. 

He said cabinet approved a proposal for a private/public sector protocol for investment in infrastructure, which involves bringing the private sector into the realm of financing infrastructure. 

In addition he said the World bank's financial arms, the International Financial Corporation, will send a team in January to work out the private/public sector protocol.

Dookeran also revealed that Cabinet has authorised the acceptance of grants funding from the Inter-American Development Bank of US$500,000 to finance the consultancy for the framework for the public offerings programme beginning in 2012.