Howai to Investigate why THA has not received an already approved $220 million

Larry Howai
Minister of Finance

Finance Minister Larry Howai will carry out an investigation today (Monday 15th July 2014) to determine why the Tobago House of Assembly (THA) had not yet received the $220 million approved by Parliament a month ago to pay Tobago's 9,000 daily-paid workers, teachers and other monthly paid staff their back pay for the period 2008 to 2010.

He told a media briefing at the Magdalena Grand Resort in Lowlands, Tobago yesterday (Sunday) that he had signed the relevant warrant "some time ago" for the money to be released to the Assembly via the Ministry of Tobago Development and was surprised to learn at his meeting with Chief Secretary Orville London and other THA officials that the Assembly had not yet received it.

Reminded that the second quarter tranche of $625 million was held up at that Ministry in January and was only released on Election Day January 21, Howai said he didn't know if the funds were at the Ministry of Tobago Development or bureaucracy in the system was holding it up somewhere.

Both teachers and daily paid workers have been holding weekly protests in Scarborough over the delay in the payment of their back pay.

Howai, along with Tourism Minister Stephen Cadiz were in Tobago for a meeting with the THA and tourism stakeholders.

He disclosed that 15 applications have been partially approved or approved for hoteliers to access $40 million in the $250 million Tourism Development Fund for hotel improvement in the island.

He said the ANR Robinson International Airport needed significant revamping and an allocation in the 2014 national budget will be made to meet some basic requirements.

The Finance Minister said Tobago was playing its part in the growth of the country's economy and all indications were that T&T will experience growth for four consecutive quarter when the figures were released for June.

Howai said he will be meeting with London and other Assembly officials by the end of this month to discuss Tobago's allocation for the 2014 fiscal year.

London said it was important for the Assembly to receive approval for off budget opportunities especially to finance Tobago's housing needs.

He said the meeting agreed on the setting up of a committee to consider Tobago as a duty free zone and the Cove Eco Business and Industrial Park as a special development area. He said the licensing regime to purchase land in Tobago was retarding investment and as a result a second committee will be set up to consider the matter and to ensure that land prices were within reach of the ordinary citizen of T&T.

Cadiz said Tobago needed 1,500 quality rooms in the shortest possible time to meet demands for high end visitors. He said T&T will be sold as one brand which will be launched at the World Travel Market in London in November.

Source:THA

Howai Has to Wait.

Chief Secretary, Orville London

Chief Secretary, Orville London yesterday indicated that Finance Minister Larry Howai has to wait a little longer than the seven days for documents on the $143M MILSHIRV office complex at Shirvan, in southwest Tobago.

Howai wrote the THA Chief Secretary last week requesting that all documents relating to the office complex being built for the Assembly under a BOLT (Build Own Lease Transfer) arrangement be made available to him by seven (7) days. 

In a media conference yesterday, London indicated that under the laws and the T&T Constitution the Finance Minister has no authority to instruct him to provide information to him within any timeframe.

However, London indicated that in the interest of public disclosure and due to the considerable discussion that surrounded the transaction he has a responsibility to make the information available to the Minister as well as the general public.

London further indicated that he has would send a letter to Minister Howai on Thursday (1st November 2012) explaining that the various documents are being vetted by Senior Council and the THA Senior State Council following which the information will be made available to the public and to him.

London also disclosed at the weekly Post Executive Council media briefing on Wednesday (31st October 2012) that the Integrity Commission had written him requesting that the documents on the MILSHIRV office complex be produced within seven days.

The Tobago Chief Secretary said the Integrity Commission has the legal authority to so instruct and therefore that information will be made available to it within the seven days. He added that more or less the same information that was going to be made available in the public domain will be made available to the commission for it to continue its investigation.

London said he wanted to make it very clear that the decision not to submit the documents within seven days to Howai was by no means meant to prevent the information from being made public; "Quite the contrary, we want to ensure that at the same time the Minister has the information, the public has the information," London added.

A Meager 46 Cents Subsidy for Premium Gas. Deceitful!

Larry Howai, Minister of Finance

In what could be the most stunning revelation of the budget debate, the Minister of Finance, Larry Howai,  told the nation that 46 cents was the subsidy given on premium gasoline. He was responding to allegations made by the Honorable Colm Imbert in parliament yesterday. Imbert accused the government of  breaking the law when it raised the price of premium gasoline to $5.75 a litre. Further he stated that Finance Minister Larry Howai acted in breach of the Petroleum Levy and Subsidy Act.

In a quick response to Imbert's allegations, Minister Howai stated that he was not aware of breaking any laws as it pertains to the subsidy. But what came out his mouth moments after took me by surprise. Howai stated that "This is the first I'm hearing of it," that is the Petroleum Levy and Subsidy Act.  Furthermore, Howai told  the motoring population and by extension the entire nation that he is informed that without the subsidy the actually price of premium gasoline would be $6.21 while the subsidized price is $5.75.

How  ironic is this, with a government boasting about saving billions from the partial removal of the subsidy.  Was this a deliberate ploy and calculated action to deceive and misguide the nation? How can the Government boast about saving millions when they informed us that only six (6) percent of the motoring population uses premium gasoline, the group of fuel with the smallest subsidy, a meager 46 cents.

The Minister must then come clean as to their real agenda in forcing the motoring public to use super gasoline. Is it a matter of creating a large strain on the Government's purse, given that super gasoline is the highest subsidize fuel. Thereby, legitimizing their proposed cut/removal of the gas subsidy. 

I continue to contend that in an oil rich country the citizens must enjoy direct benefits. Direct benefits can only be achieved at the pump and on products made.

Mr. Howai, I urge you to be careful, do not allow your self to be led by a blind master. Less you become another scapegoat for your associates. Guard your reputation, do your investigations and thoroughly examine  matters that pertains to public interest.   You need only to ask you ex-compatriot Mr. Volney how awful it is to leave the bench two years early, doing the bidding of a minority, only to be to humiliated and tossed under the bus. 

Take heed.  

CEPEP Economics Won't Work.

Finance and Economy Minister,
Larry Howai

The newly installed Finance Minister, Larry Howai, indicated to a media house that a more efficient and equitable property tax has to be reintroduced in the country. "We have to bring back that property tax. It is costing the Treasury money (in lost revenue) that could be used to develop the country" he stated as he indicates his first major move, given his responsibility of moving the economy forward.

The "Axe the Tax" campaign which was mounted by the People's Partnership (PP) seemingly now impractical for T&T's stagnant economy. Howai, coming to his new job with a rich background in finance and economics, should be the first to know that "CEPEP" money cannot foster sustainable change in this ecomomic drought. 

Property tax has not been collected since January 2010, and figures shows the collection of such for 2007 as 82 million.  I am therefore forced to look at this move through a pragmatic approach. What can 82 Million do for the Economy of Trinidad and Tobago? A figure considered to be highly insignificant in a 50 billion budget, and can only be seen as a mere drop in the barrel. Given that the last budget allocation for CEPEP was 320 million, this 'property tax' would only be able to fund one third of CEPEP workers, and might I remind you that a further 240 million was sought to supplement the depleted 320 million, further decresing the significance of this "vital" intervention of property tax  to a simple 15 percent. 

So who are you trying to fool Mr. Howai? The general population is no expert in finance, and may not have lead any banks,.but we are not fools. 

Make no excuse for your the PP government. They are a group that lacks respect for self, integrity or rectitude and have displayed poor forms of political ethics. They have deceived this country without remorse and as such have tread on a slippery slope of no return. You are another instrument of deception within their arsenals, and  as such you must carry out their biddings, as yet another time they must reneged on promises made to the Masses. 

The people of Trinidad and Tobago would not be beguiled by your government. We are quite cognizant that property tax must exist. As you quite eloquently stated, "Property taxes exist virtually all over the world because if you own a property, there is a cost attached to it at the micro and macro level: garbage, sewage disposal and everything that goes with maintenance." However, do not suggest to the population that it must be reintroduced so as a 'Savior' which would offer T&T's economy salvation. Trinidad and Tobago continues to run on deficit financing therefore, offer to us some ingenius way  on getting us back to economic solid ground. 

So, what are we to do, given that even with a retroactive payment of the old property tax (for the last 3 years), not even CEPEP projects could be funded or maintained. It is therefore only logical and imperative that one must examine other means of stimulating economic growth. There has to be more innovative ways of stimulating the treasury Mr. Howai. One cannot merely concentrate on property tax (although it may be a start) to be the genesis of T&T's economic good fortunes. The country as it is, has been burden with a heafty Gas subsidy, enormous Education bill and our Social "handouts" are in the tune of billions. Thus, one must employ prudent policy making (in diversification, reducing financial risks, and containing the fiscal deficits), if the country's economy is to be re-ignited. 

So as you consider increasing the Taxes on the populace, as proven by this statement "To that end, the country should expect a cut-back on the prolific Government spending on transfers and subsidies—including the $4 billion fuel subsidy", please consider the ramifications of your first move. As Trinidad and Tobago awaits your announcements within your first presentation in the up coming budget, be reminded that 'CEPEP' economics wont boost this Economy. Much more than this superficial intervention would need to be employed to generate revenues and  improved economic performance. Think of ways to reverse this deficit spending, think of ways to become less reliant on dwindling oil and gas reserves. Think beyond this 'CEPEP' economics.