The National Family Policy will focus on a wide variety of issues relevant to the
proper functioning of the family unit including, employment practices, healthcare,
housing, education and training, social services, and recreation.
Mr. Speaker, the Government will also implement a National Parenting Programme
to educate young people on the role of parents and the ideals of good parenting.
Other programmes in support of the family include:-
• The National Counselling Programme;
• Establishment of a Children’s Authority; and
• Implementation of the Second National Plan of Action for Children.
Mr. Speaker, in 2008 we will advance the Poverty Reduction Strategy through the
implementation of a structured approach to the regular measurement of poverty.
This approach will enable proper targeting of programmes and assessment of
progress and will foster social integration and inclusion of traditionally marginalized
vulnerable and at risk groups.
NATIONAL SECURITY
Mr. Speaker I turn now to the issue of National Security.
Mr. Speaker, the 2007 fiscal year represented a major turning point in this country’s
fight against crime. While we are by no means satisfied with the current level of
crime, we are confident that the collaborative and coordinated efforts of our law
enforcement agencies and other support agencies are leading to reductions in
certain categories of serious crime especially homicides and kidnapping for ransom.
This Government’s major focus continues to be the safety and security of all citizens
and residents of Trinidad and Tobago.
Legislative Reform
During the 2007 fiscal year, there were several critical legislative accomplishments.
The Reform package essentially sought to improve the management system in the
Police Service by giving more autonomy to the Police Commissioner and the Police
Service Commission.
Mr. Speaker, to further strengthen the legal and regulatory framework, the
Government will pursue passage of several pieces of legislation, the most critical
being:
• The DNA Bill;
• The Proceeds of Crime (Amendment) Bill;
• A Bill to establish the Special Anti-Crime Unit of
Trinidad and Tobago;
• Amendment to the Defence Act;
• Protective Services Compensation Act;
• The Immigration (Advance Passenger Information) Act; and
• Prison Service Rules under the Prisons Act.
Providing resources to the Police Service
Mr. Speaker, to enable the Police Service to achieve its mandate, the Government
has embarked on a number of initiatives to provide the Organization with the
resources it requires in terms of infrastructure and human resource.
A refurbishment programme involving fifty-six Police Stations is currently in progress
across the country. Five police stations are also under construction and will be
completed by October 2007.
The Police Training Academy at the St. James Barracks is receiving a major
upgrade and completion is scheduled for the end of September this year.
In the new fiscal year eighteen new police stations will be constructed along with the
completion of the Police Training College.
To improve police visibility and response times, 315 purpose-built police vehicles will
be procured. Delivery of these vehicles will commence in November this year.
Mr. Speaker, consequent on the enactment of the Police Service Act, six hundred
civilians will be recruited to provide administrative and managerial support to the
Police Service. Additionally seven hundred and fifty (750) constables are scheduled
to be recruited during fiscal 2008.
In the 2007 fiscal year 2,700 police officers have been the beneficiaries of training
courses in leadership skills, motivation techniques, employee counselling,
management and customer service, crime scene investigation, courtroom skills,
interview techniques, and surveillance. The intention is to train an additional 2,500
officers in the upcoming fiscal year.
Offshore Patrol Vessels
Mr. Speaker, as Honourable Members are aware, an essential part of our strategy
relates to our ability to protect our maritime borders.
The first phase in the strategic up-grade of the response platforms of our maritime
forces began in April this year when the Government executed a number of
contracts.
VT Shipbuilding International is designing and constructing three Offshore Patrol
Vessels, the prices of which total $1,455 million.
The first Offshore Patrol Vessel will be delivered in March 2009, the second in
October 2009 and the third in August 2010.
In the interim, and given the urgency with which the Government requires additional
maritime capacity, we have acquired two Vessels which are now being appropriately
modified to discharge the mandate of the Trinidad and Tobago Coast Guard. The
price of these two vessels is $132 million.
Mr. Speaker, the effectiveness and efficiency of the three vessels would be assured
through the establishment of two associated arrangements: a maintenance support
programme, which would continue for five years after the receipt of the third vessel
and a crew training programme.
These naval assets are being provided through a Government to Government
arrangement. To this end, the Government of the United Kingdom would provide us
with independent advice on the design and construction of the vessels as well as on
the vessel acceptance process.
Mr. Speaker, we have now initiated the second phase in the strategic expansion of
our maritime forces.
We have identified through a competitive tendering process a highly-regarded
manufacturer to provide six medium-sized Fast Patrol Craft which would fill the
operational gap between the Offshore Patrol Vessels and a variety of small craft.
Appropriate maintenance and training support packages would ensure the efficiency
and effectiveness of those craft. It is envisaged that the first Fast Patrol Craft would
be delivered in the first quarter of 2009.
Mr. Speaker, the third phase in the strategic upgrade of our maritime capability
involves the procurement of six Interceptors and four Helicopters.
Both sets of assets would be capable of launching and recovery by the Offshore
Patrol Vessels. Procurement for these naval assets is in process.
Consultations on Crime
Mr. Speaker, between April 18 and May 18, we held seven consultations on crime
throughout Trinidad and Tobago. As I have done before, I wish to again thank the
thousands of citizens who participated in the consultations and made numerous
recommendations on the way forward.
The objectives of the consultations were realized with the attendance and response
of the public exceeding all expectations; this was truly an exercise in participatory
democracy which provided a unique opportunity for face-to-face dialogue between
the Government and the people.
Mr. Speaker, five key initiatives have been approved to give effect to the
suggestions from the public:
(i) the establishment of a non-partisan Crime and Justice Commission
headed by Justice Lionel Jones to evaluate those recommendations
relating to law enforcement and the justice system and to recommend to
Cabinet the appropriate legal framework for implementation, where
relevant. The Commission will seek to devise specific mechanisms to
improve public confidence in the law enforcement and justice system;
(ii) the establishment of a national fingerprint database with the capacity to
store fingerprint records of each citizen from birth, a procedure adopted in
a number of developed societies;
(iii) the establishment of a structured mentoring programme which utilizes
trained professionals to provide one-on-one mentoring for youth at risk;
(iv) the referral to the Ministry of Education of those matters related to
Education for appropriate action; and
(v) the launch of a sustained national campaign to educate and inculcate
sound family values and positive attitudes, utilizing all appropriate
institutions and channels of communication.
Citizens Involvement in the fight against Crime
Mr. Speaker, the participation of the community in the fight against crime received a
new impetus with the introduction of the 555 anti-crime initiative in May last year.
Active participation by the community is already in evidence. Numerous community
meetings have been held and over 150,000 calls received at the call centre.
Mr. Speaker, another initiative involving our citizens in the fight against crime is the
Citizen Security Programme (CSP), which is jointly funded by the Inter American
Development Bank (IDB) and the Government. The programme represents a prosocial
approach to crime and focuses on providing at-risk youth with alternative
programmes and activities.
Cricket World Cup 2007
Mr. Speaker, the recently concluded CWC 2007 provided the region with the best
example of regional integration as we move to the operation of a single market and
economy.
Locally, the safety and security arrangements for the venues in Trinidad were
coordinated by the working group of the Local Security Committee (LSC) operating
out of police headquarters.
This country also assigned some 62 Police Officers and 118 members of the
Defence Force to a Task Force that was deployed throughout the Region.
Immigration Officers, Police Officers and Intelligence Officers were also assigned to
the Joint Regional Communications Center (JRCC) in Barbados and the Regional
Intelligence Fusion Center (RIFC) in Port of Spain.
These two institutions played a pivotal role in supporting the Advance Passenger
Information System (APIS) which will forever remain a legacy in this country and the
region.
INFRASTRUCTURE
Mr. Speaker, I will now turn to the issue of the country’s Infrastructure.
Mr. Speaker, rapid economic growth has put strains on our existing infrastructure
which must now be expanded and up-graded to meet the increasing demands of the
future. Accordingly, in the context of our Vision 2020 the Government is in the
process of establishing a modern transportation network; cost-effective and
universal utility services; and an efficient and affordable broadband information
infrastructure that promotes connectivity.
Transport
Mr. Speaker, traffic congestion along the main East-West and North-South corridors
in Trinidad is an on-going and growing problem, principally due to the everincreasing
number of cars on the roads in Trinidad, which is a direct result of the
country’s prosperity.
The records confirm that over 30,000 new and/or foreign-used cars are now
imported into Trinidad and Tobago on an annual basis.
Our roads were not designed to deal with this massive influx of vehicles, and against
this backdrop, the Government understands the urgent need to expand our road
network to alleviate traffic congestion, among other solutions. During the past year
we have made significant progress towards addressing this very important issue.
Mr. Speaker, over the last 12 months, as an immediate solution, we have moved
swiftly to expand our public transport system, and in furtherance of this objective, the
Public Transport Service Corporation has more than doubled its fleet of available
buses over the last five years.
Indeed, we have managed to increase the pool of available buses from just about 80
buses when we came in 2002 to almost 200 buses in 2007. The fleet will be
expanded further by the acquisition of 112 additional buses during the new fiscal
year, bringing us up to 300 buses, which was the fleet level in the early 1990’s prior
to the advent of the previous administration.
We are also in the process of improving and modernizing the passenger facilities at
Arima, Sangre Grande, Port of Spain Chaguanas and Point Fortin, among other
population centers. Tobago is also due to receive its fair share of attention with
respect to this PTSC initiative.
Increasing the capacity of our highway network to handle the increasing volume of
traffic more efficiently is also an urgent priority.
In this context, the recent widening of Wrightson Road is already having a positive
effect on traffic flows into Port-of-Spain and commuters have reported savings in
travel time of up to 20 minutes per trip into the City as a result of this initiative.
Consistent with this objective of freeing up the flow of traffic on our roads, the
construction of the Interchange at the intersection of the Uriah Butler and Churchill
Roosevelt Highways is also well underway.
Construction of road diversions is in progress in order to allow the project to proceed
with minimal impact on commuters, and pile driving has commenced for the main
abutments for the elevated bridge structure which will allow traffic to flow from West
to South without conflicting with traffic from East to West. This project is on time and
within budget and it is scheduled to be completed in the fourth quarter of 2008.
At the same time, consistent with all of the recommendations of the various
transportation studies over the years, the Government is also proceeding with plans
to convert the East-West Corridor from Port of Spain to St. Joseph and the North-
South Corridor, from Port-of-Spain to San Fernando into an international standard
freeway, without any traffic lights or other obstructions.
To achieve this, in addition to the Interchange Project and the overpass that is to be
constructed at Bamboo Village to eliminate the traffic lights at that location, the traffic
lights at El Socorro and Aranguez will be replaced with overpasses. Tenders for
these two projects on a design-build basis will be invited within the next month.
When this initiative is complete, motorists will be able to drive from Port-of-Spain to
San Fernando and vice versa without any hindrance, which will greatly assist the
flow of traffic between North and South Trinidad.
Additional lanes are also being constructed on both the Churchill Roosevelt and
Uriah Butler Highways as part of this initiative, and removal of the traffic lights on the
Churchill Roosevelt Highway at Valsayn, Curepe, UWI, Tunapuna, Macoya, Trincity,
Orange Grove and Piarco, among other locations, is also on the cards.
The Government also understands and appreciates the need for new highways, and
we have taken the decision to construct a national grid comprising existing highways
and new highways.
The highway system that we have planned includes a new network of highways from
San Fernando to La Brea and Point Fortin; from San Fernando to Mayaro; from
Arima to Manzanilla and from Sangre Grande to Toco; to the North Coast and either
a highway or causeway to Chaguaramas. A new north-south freeway is also being
planned from Curepe to Princes Town to link with the San Fernando to Mayaro
highway. Mr. Speaker, it is envisaged that state-of-the-art technology will be utilized
this effort.
These new highways are being planned on a concessionaire basis, Mr. Speaker,
whereby the successful bidders will design, finance, construct, operate and maintain
the new roads.
It is expected that with this new approach, the road system in Trinidad can be
transformed within a 5 year period.
With respect to sea transport, the acquisition of two modern state-of-the-art fast
ferries by Government has brought tremendous relief to the traveling public on the
inter-island sea bridge. With the new ferries, the T&T Express and the T&T Spirit,
the inter-island ferry service now has the capacity to transport over 3,500
passengers and 400 cars on a daily basis and the journey time to and from Tobago
has been cut from 5 hours to 2 1/2 hours.
We have also introduced a dedicated cargo vessel, the Warrior Sprit, which has
more than enough capacity to serve all of Tobago’s cargo requirements, now and in
the foreseeable future.
Mr. Speaker, a new Port of Spain Port will soon be constructed along the waterfront
at Sea Lots, Southeast of the NP complex. A Development Manager for the new
port will be selected shortly, and Requests for Proposals for the design and
construction of the new Port will be invited in the first quarter of 2008.
Construction of the new Port is schedule to commence by the third quarter of next
year and will be a new state-of-the art containerized port facility. It is expected to be
fully operational by the third quarter of 2010.
Mr. Speaker, the physical infrastructure for the operation of the water taxis from
Point Fortin to Port of Spain is close to completion.
Dredging for the approach and turning basin in San Fernando for this project is in
progress and the identification of suitable vessels for the service is almost complete.
The Minister of Works and Transport will give further details on this matter in his
contribution to the Budget debate, but I am advised that the first phase of the water
taxi service, from San Fernando to Port-of-Spain, is expected to commence
operations in the first quarter of the new fiscal year.
Over the longer term, to reduce traffic delays and plan for the future growth in the
number of vehicles using the road network, the Trinidad Rapid Rail project is being
actively pursued and developed to facilitate fast and frequent service along the East-
West and the North-South corridors.
Mr. Speaker, the project is to be implemented through the National Infrastructure
Development Company (NIDCO) and will be developed through a Design Build
Operate Maintain contract. The first phase of the project will commence in the new
fiscal year and will be completed in five to six years.
I wish to emphasize, Mr. Speaker, that in selecting the preferred contractor for this
project, the Government has been at pains to establish the highest standards of
transparency and integrity in the procurement process in order to ensure that
Trinidad and Tobago gets best value for money.
Accordingly, because of the magnitude and complexity of this mega project, in
similar fashion to the recent procurement of Offshore Process Vessels, the Cabinet
established a Ministerial Committee to oversee the procurement process for the
Rapid Rail Project, supported by a Technical Team comprised of Senior Public
Servants and Technocrats.
The Technical Team was further supported by specialists and experts in railway
systems, including the firms of Marshal Macklin Monaghan, Toronto-based
international consulting engineers and White and Case, London-based international
attorneys, both highly recognized in their respective fields.
As you may recall, Mr. Speaker, after an exhaustive process of registration, pretender
clarification and prequalification over a period of almost one year, we had
narrowed down the selection to two remaining international consortia, Trinitrain led
by Bouyges Travaux Publics and the T3 Group led by Vinci Construction Grands
Projects, both from France.
Both of these consortiums had demonstrated their capability to execute the project,
and final negotiations were required in order to establish which group was prepared
to offer the most attractive proposal in terms of the overall benefit and value to
Trinidad and Tobago, with the least risk.
Mr. Speaker, after a thorough examination by NIDCO and the Technical Team of all
relevant contract factors, including technical considerations, price and contractual
terms, and review by the Ministerial Committee, the Government has accepted
NIDCO’s recommendation that the Trinitrain Consortium be deemed to be the
preferred tenderer for the design, construction, operation and maintenance of the
Trinidad Rapid Rail Project.
Mr. Speaker, suffice it to say that the rapid rail system will provide unparalleled
mobility and will be the backbone of Trinidad’s transportation system when
completed.
Commuters will be able to travel at high speed in air-conditioned comfort from Diego
Martin in the West to Sangre Grande in the East and from San Fernando in the
South to anywhere along the East-West Corridor. Part of Phase I of that project may
warrant extending the Rail to Penal.
Programme for Upgrading Road Efficiency
Mr. Speaker, the strategic intent of the Programme for Upgrading Road Efficiency
(PURE) is the improvement of all primary and secondary roads in order to reduce
travel time and congestion, vehicle operating costs as well as to increase travel
safety.
Under this far-reaching programme over 1,000 kilometers of roads have been
upgraded within the last two years and it is the Government’s intention to utilize this
programme to upgrade and rehabilitate every single road in the country, so that no
community or area is left out.
The expansion of PURE into local roads, or neighborhood roads, as they are also
called, is the first phase into the establishment of a National Roads Authority,
whereby every single road in the country will be the responsibility of one agency,
which will also put an end to the current confusion where citizens experience
tremendous difficulty and frustration in determining exactly which agency is
responsible for which road.
Drainage
Mr. Speaker, one of the more pressing issues affecting our citizens is the question of
proper drainage, which has a direct effect on productivity and the quality of life. In
Trinidad and Tobago, we experience both flash flooding and more serious flooding
caused by extreme and prolonged rainfall usually associated with perennial tropical
storms.
The Government is of the view that piecemeal solutions to the drainage and flood
mitigation just do not work. Therefore proposals have been invited from local and
international experts for a comprehensive National Drainage Plan, similar in scope to
our National Transportation Plan.
It will examine all aspects of flooding in North, Central and South Trinidad, and
Tobago and devise long-term and sustainable solutions to this problem. The Plan is
expected to take 12 to 15 months to complete, and implementation will commence
by the end of 2008.
In the interim, while the Plan is being developed, the Ministry of Works and
Transport will continue with its major river clearing programme; its de-silting
programme; its drainage development programme and its drainage infrastructure
and flood mitigation programme, all of which are on-going.
Under these programmes, major works are in progress, including walling, paving
and upgrade of main watercourses and drainage channels in the Caroni River Basin,
the Oropouche Lagoon, the Caparo River Basin, and all main rivers along the East-
West Corridor, such as the Diego Martin River, Maraval River, St. Ann’s River and
San Juan River, among others, as well as main rivers in South Trinidad, such as the
Cipero River, Marabella River, and Vistabella Rivers.
An international firm of consultants has also done significant work towards the
development of comprehensive drainage solution for Port-of-Spain.
Mr. Speaker, the scope and extent of this project stretches from the Maraval River in
the West to the St. Ann’s River in the East and from the Queen’s Park Savannah in
the North to the Port-of-Spain waterfront in the South.
The project involves an upgrade of the St. Ann’s and Maraval River Channels,
including diversion works, construction of retention basins, and installation of sluice
gates and pumps, and other higher-order drainage solutions, consistent with firstworld
solutions utilized to resolve drainage challenges in cities affected by tidal
influences.
Reconstruction and expansion of the underground drainage systems in Port-of-
Spain is also part of this programme, as well as relocation of all utility lines
underground, and a general upgrade of the physical environment in the Capital City.
It is a comprehensive programme to change the face of the Capital City.
Mr. Speaker, we intend to tackle the problem of flooding in Trinidad and Tobago
head-on, using the best available advice from international and local experts.
PUBLIC UTILITIES
Water and Sewerage
Mr. Speaker, our programme to provide water for the entire nation to which the
Government is resolutely committed has faced several challenges, including sharply
increasing demands emanating from industrial expansion, climatic changes and the
proliferation of new housing communities. The management and organizational
challenges facing the Water and Sewerage Authority (WASA) have also added to
these problems.
The Government insists that WASA must develop the capacity to ensure an
adequate supply and distribution of potable water to the population; to process
wastewater consistent with international standards, and to promote prudent and
cost-effective management and conservation of natural water resources.
Consequently, Mr. Speaker, in May this year the Government contracted a reputable
international consultant to develop the Water and Wastewater Master Plan, the aim
of which is to transform WASA into an efficient and viable business entity providing
reliable water and waste water services.
They will also determine the country’s future demand for water and wastewater
services, and provide alternatives for the rehabilitation and upgrading of existing
water and wastewater facilities and the construction of new facilities.
This Master Plan, Mr. Speaker, will ensure that all of Trinidad and Tobago will have
a nationwide, 24 hours, 7 days a week water supply and standards and regulations
for industrial wastewater treatment and discharge.
With global warming expected to have a significant impact on weather patterns in
our region, the Government has taken a decision to reduce the country’s
dependence on surface water, that is, the water from our dams.
Accordingly Government intends to explore the desalination option in providing
service to various parts of the country.
Mr. Speaker, we also intend to build two more Wastewater Treatment Plants around
Chaguanas and San Fernando.
Power Generation
Mr. Speaker, faced with the rapidly increasing demand for electricity, the Trinidad
and Tobago Electricity Commission (T&TEC) has embarked on a programme to
expand its generation and transmission facilities to satisfy the national demand for
electricity through the year 2016 and beyond.
In the meanwhile Mr. Speaker, to ensure adequate electricity supplies in the short
run, the Government will soon enter into negotiations with Alutech Limited for the
supply of approximately 720 mega watt of generation capacity to the nation.
This forms part of a larger block of power earmarked for Union Estate which will also
supply the new Aluminium smelter. As I indicated previously, the construction of a
64 mega watt dual-fuel power station at Cove Estate in Tobago is another project
carded for 2008.
Further, Mr. Speaker the Government will be pursuing a strategy for the conversion
from Gas Turbine and Steam Plants to Combined Cycle Generating Units which
would result in more efficient natural gas consumption.
To accommodate this strategy a number of initiatives will be undertaken including
the retirement of the Port of Spain Power Station at the end of 2011 and the
establishment of a new combined cycle power station with a capacity of at least 450
mega watts at Sea Lots.
The Brechin Castle in Couva is earmarked for the installation of a new 450megawatt
combined cycle power station, and is expected to commence operation in the year
2010. All new power generation in Trinidad will use the combined cycle process
approach thereby optimizing the use of natural gas.
Mr. Speaker, in the new fiscal year, the Government will also be placing emphasis
on the legal framework which governs the operation of T&TEC.
The T&TEC Act will be revisited with a view to, among other things, making
amendments which would allow one Government agency to be responsible for the
payment of street lighting bills and not the Local Authorities as obtains at present.
The proposed amendments would also allow the Commission to engage in other
types of business activities, for instance, the leasing of spare capacity on its
expanded and upgraded communication network, as it seeks to improve its financial
performance.
Telecommunications
Mr. Speaker, the Government is committed to the development of a modern and
competitive Information and Communication Technology (ICT) Sector to ensure that
all citizens have access to efficient and affordable telecommunications.
The Government’s goal is to promote ICT acculturation among all citizens through:
expanding the use of ICT to modernize the operations of the public sector;
increasing the availability of online government information and services; promoting
the development of competitive ICT-based businesses; encouraging greater use of
ICT in business operations and market transactions; and expanding high speed
Internet connectivity to all schools, libraries and community centres.
In this context Mr. Speaker, the National Broadband Action Plan includes: facilitating
the establishment of International Carrier Shared Landing Stations;
implementing a public sensitization programme for Broadband in Trinidad and
Tobago; facilitating the implementation of a National Internet Exchange Point (IXP);
and facilitating the development of a domestic hosting industry.
These initiatives will help to ensure a sound ICT infrastructure in Trinidad and
Tobago thereby facilitating our transition towards a knowledge-based society, using
the technology to improve our economic, social and cultural development.
OTHER PRIORITIES
THE ENVIRONMENT
Mr. Speaker, while the Government is ensuring that the country grows and develops
economically, we are also ensuring that our environment is well taken care of for our
generation and for future generations to come.
The Government is strengthening the legislative framework and ensuring
compliance with environmental laws and regulations for a healthy environment for
all. We are also continuing our thrust at sensitizing and educating the people of
Trinidad and Tobago on environmental issues and best practice.
The Green Fund Regulations are now law and in the new fiscal year the Fund is
expected to become operational so that grants can be made to community groups
and organizations for activities related to the remediation, reforestation and
conservation of the environment. The Government is also in the process of
completing the Draft Air Pollution Rules and Air Pollution Regulations.
In addition, Mr. Speaker, in April this year, a contract was signed with the Caribbean
Natural Resource Institute (CANARI) for consultancy services for the revision of the
1942 Forest Policy and the 1982 Policy for the Establishment and Management of a
National Parks System in Trinidad and Tobago.
In the new fiscal year work will continue towards the designation of Environmentally
Sensitive Areas (ESA) and Environmentally Sensitive Species (ESS). And with
respect to the former, the Main Ridge in Tobago and the Caroni Swamp are priority
areas.
Mr. Speaker, work will commence shortly on the implementation of a system to
improve municipal waste collection in Trinidad and Tobago. Further, tenders will be
re-opened for the consultancy for new cost effective solid waste disposal facilities for
the environmentally sound management of waste.
With this consultancy, the closure and rehabilitation of the Beetham Landfill will be
priority.
The scope of the two community-based environmental projects, the Community
Based Environmental Protection and Enhancement Programme (CEPEP) and the
National Reforestation and Watershed Rehabilitation Programme would be revised
with a view to the Programme making a greater contribution with respect to
environmental issues.
Mr. Speaker, the Community-based Environmental Protection and Enhancement
Programme (CEPEP) is very often maligned and, in my view, unjustifiably so.
CEPEP has done a commendable job in upgrading and improving environment
conditions throughout the country.
Mr. Speaker, CEPEP now employs 6,000 people, to a very large extent, women,
many of them female heads of households with children to educate. CEPEP is a
productive programme that gives its workers a sense of pride and self-esteem in
their ability to make a contribution to society.
In its original conception, CEPEP was always meant to have a strong training
component. However, this began to be formally implemented only recently. In fact,
Mr. Speaker, the first graduation of CEPEP workers in a Government sponsored
training programme took place in May of this year.
The programme now has a structured training component as an integral element.
CEPEP workers will be expected to enroll and actively participate in one of the
government-sponsored programmes as a condition of their continued employment.
The idea is Mr. Speaker, that as workers develop their skills sets they will be eligible
to be transferred out of the programme to fill positions in both the public and private
sector.
Mr. Speaker, since its inception in 2002 CEPEP workers have not received wage
increases, while there have been upward adjustments in the minimum wage and
increases in the whole structure of wages in the economy.
Under these circumstances, given the envisaged changes in the minimum wage rate
which I will return to later, we are taking steps to increase accountability in the
programme and we propose an increase the wages of CEPEP workers.
GOVERNANCE AND INSTITUTIONAL REFORM
Mr. Speaker, the Government is committed to the highest principles of good
governance which we see to be the bedrock our democracy. We have a
responsibility to set the example for good governance in this country. We want our
young people to inherit a land where integrity reigns in all public places and where
transparency and accountability are seen as accepted modes of behaviour.
We must set the standards and example for our youth. The Government also has a
deep commitment to the development of solid democratic institutions, the promotion
of ethical conduct in both public and private sectors, respect for human rights and
the even-handed enforcement of the rule of law.
Mr. Speaker, my Government fully supports constitutional reform as part of the
process of strengthening the Governance System. Such reform should aim to
provide for:
• improved functioning of the Executive, Legislature and the Judiciary;
• more effective representation of the people’s interest; and
• an enhanced role for Local Government Bodies.
Local Government Reform
Mr. Speaker, a major objective of Local Government Reform is the implementation
of power sharing arrangements to ensure that all sections of the national community
feel part of the Governance process.
A National Consultation on the Draft White Paper on Local Government Reform was
held during this fiscal year. Some major recommendations coming out of these
consultations which are currently under review include:
• The establishment of Property Taxation and House Rates Collection Units
and systems in the Regional Corporations and the modernization of the
system in Municipal Corporations;
• Establishment and expansion of the Municipal Police Service;
• Review of the Local Government Boundaries;
• Review of the Bye laws and regulations of the Municipal Corporations; and
• The inclusion of the Executive Council System in Municipal Corporations.
The Government is actively considering these recommendations.
Indeed, Mr. Speaker, a consultant has been brought on board to see what works
and what does not work in different parts of the world.
Public Sector Reform
Mr. Speaker, public service reform is a key element of our vision to move Trinidad
and Tobago to the status of a developed nation by the year 2020. Developing a
culture of excellence in the public service is at the heart of our ongoing process of
public service reform. We believe that our public service employees are capable of
sustained excellence and that given the right retooling, training, technology, systems
and conditions, they could become one of the most efficient and productive public
sectors in the world.
The Government is placing unprecedented emphasis on training and the
development of the human resources of the public sector, and is encouraging our
public sector employees to seize every opportunity for self-improvement.
Mr. Speaker, the Government is committed to the introduction of a Pension Regime
for daily paid workers. The Union representing these workers has put forward a
proposal for a possible scheme. The proposal, which has many far reaching
implications is currently being studied by the Government’s Actuaries.
Financial Reform and the International Financial Sector
Mr. Speaker, there is no doubt that Trinidad and Tobago has evolved as the
economic center of the Caribbean and the gateway to the Americas and beyond.
We intend to leverage this success and take full advantage of our geographical
location to enhance Trinidad and Tobago’s international connectivity and transform
Port of Spain into a regional hub and an International Financial Centre.
We have hired international consultants who have completed the first phase of a
feasibility study which identified the strengths which must be leveraged in
establishing such a centre, as well as the gaps that need to be addressed.
In this context, we are close to finalizing several pieces of financial sector legislation
which are needed to bring our financial infrastructure in line with international
standards.
CULTURE
Mr. Speaker, my Government views culture as more than a marketable commodity; it
has value in its own right; it is the base on which we build national character, national
unity and a greater sense of national pride.
A nation is the sum total of its culture or its peoples’ expressions in the areas of
religion, music, dance, the visual arts and similar activities. Each group brings to the
national pool its own way of doing things, which when put together constitute the
uniqueness of a nation.
Mr. Speaker, we should promote our culture as a means of understanding national
development.
We will soon begin construction of the National Carnival and Entertainment Centre to
provide a state of the art facility for carnival and other cultural presentations. Also
earmarked for construction during the next year are two state-of–the art academies
for the performing arts, one in Port of Spain and the other in San Fernando. An
academy is to be constructed in Tobago.
Mr. Speaker, recently the country celebrated a most important development when a
new Steelpan, the “G” Pan was unveiled after several years of Governmentsponsored
research headed by Dr. Brian Copeland at the University of the West
Indies.
The Government will continue the development and protection of the pan not only as
the National Musical Instrument but also as a symbol of our cultural identity. We will
also move to have the National Symphony Steel Orchestra fully established and
outfitted with the new “G” pans.
In addition, in collaboration with Pan Trinbago we will establish the Steelpan
Museum highlighting the history of the steel pan and which will have among its
exhibits, the first collection of “G” pans.
Mr. Speaker, the Government is committed to providing financial support to all
aspects including cultural events and the overall development of our culture.
The provision of financial assistance to over one thousand cultural organisations
annually and drafting of a national cultural policy are aimed at developing and
promoting our national culture.
SPORT AND YOUTH AFFAIRS
Mr. Speaker, the Government will like to actively encourage the entire population to
become involved in some area of sporting activity. It has tremendous health and
stress reduction benefits.
To facilitate this Mr. Speaker, the Sports Company of Trinidad and Tobago
(SPORTT) will continue to develop recreation grounds, lighted jogging tracks and
hard courts in communities throughout the country namely, Diego Martin, Toco, Pt.
Fortin, Plesantville, Santa Cruz, Princes Town, Couva, Chaguanas, Siparia and
Tacarigua.
The Sports Company will also continue to upgrade and refurbish the Indoor Sporting
Arenas, Community Swimming Pools and the Multipurpose Stadia to provide safe
and modern facilities for upcoming athletes.
In addition, as part of the thrust to provide first class facilities for training and
international competition, we will complete the construction of the Brian Lara Cricket
Academy in 2008 and construct national facilities in the disciplines of Swimming,
Cycling and Tennis, at that location.
We will also continue to support the development programmes of the National
Sporting Organisations which will see the country participating in world class
competition such as the Olympic Games in 2008 and the FIFA World Cup in 2010.
Mr. Speaker, the Government sees the country’s youth as the source of energy,
creativity and dynamism of the society and the medium through which change would
be engendered and new directions charted.
The National Youth Policy launched in September 2006, envisions empowered
young people who are able to make informed choices so that they lead meaningful
lives and contribute to the sustainable development of Trinidad and Tobago.
The soon to be established National Youth Council will serve as an umbrella body
for youth at the district and national levels and will also function as liaison for
accessing funding and other resources to engage youth activity.
We will also commence the process towards the establishment of a National Youth
Institute so that professional youth work will be brought into the mainstream with a
focus on social science disciplines.
TOBAGO
Mr. Speaker, I wish now to turn to Tobago.
Tobago has made significant developmental strides over the past six years; and the
Central Government is pleased to have partnered with the Assembly in building the
new development momentum on the island.
Clear testimony of Tobago’s success is demonstrated in the low and declining rates
of inflation and unemployment prevailing on the island; the significant increases in
the inter-island air and sea passenger and cargo traffic; the construction boom on
the island; the rapid rate of business expansion; and the rising economic welfare of
the majority of Tobagonians.
We are well aware, however, that the tremendous successes that the Tobago House
of Assembly has been able to achieve did not come painlessly. What is comforting
is the professional way in which these challenges have been approached.
Mr. Speaker, I am happy to report that the problems which have beset the
construction of the Scarborough Hospital are now virtually behind us and
construction activity is about to resume.
Let me also add that, with the recent purchase of the T&T Spirit and the T&T
Express, we have now found a permanent solution to the problems formerly
experienced on the sea-bridge, with the new vessels transporting over 40,000
passengers in the first month of operations alone.
Just as with the sea-bridge, we are now working with the Assembly to find
permanent solutions to the problems experienced on the air-bridge.
We are also pleased to report that the construction problems at the Scarborough
Library, the Financial Complex and the Shaw Park Cultural Complex are being
resolved,
Mr. Speaker, I am also pleased to report that, coming out of the recent Cabinet
Meeting held in Tobago, mechanisms for the construction and financing of these
projects have been put in place to facilitate their speedy completion.
Looking ahead, we are encouraged by the budgetary proposals emanating from
Tobago for the next fiscal year. These proposals which focus on enriching the
human resource; improving the physical infrastructure; enhancing the island’s social
sector delivery and support systems; deepening economic transformation and
diversification; and reforming constitutional and governance arrangements are all
fully congruent with national priorities.
They demonstrate further that Tobago is moving in step with the rest of the nation,
as the country as a whole strives for developed country status by 2020.
Mr. Speaker, in order to build on the current momentum in Tobago, this year’s
budget makes provisions for:
• Completion of the Shaw Park Cultural Complex;
• Completion of the Scarborough Library;
• Completion of the Financial Complex;
• Airlift support for the Airbridge;
• Completion of the Les Coteaux/ Mason Hall Road;
• The development of the Cove Eco-Industrial and Business Park;
• A Tobago House Assembly sponsored Commercial Fishing Fleet;
• Intensification of the road rehabilitation and resurfacing programme throughout
Tobago;
• An expansive car park in Scarborough to ease traffic congestion that
accompanied the island’s economic growth;
• A CARICOM Jetty at the Scarborough Fish Port;
• Extension and upgrade of the Charlotteville Jetty;
• Construction of the Roxborough District Health Facility;
• Construction of a Technical Vocational Centre for disabled persons;
• Completion of the Charlotteville and Scarborough Health Centres; and
• Construction of the Moriah Health Centre and Moriah Recreation Complex.
Mr. Speaker, the government remains resolutely committed to ensuring that the
Tobago House of Assembly has adequate resources to continue the current pace of
development on the island.
Over the years, because of our clear understanding of Tobago’s needs, as reflected
in the positions taken by the people of Tobago and by the Assembly, my
Government has been able to respond to Tobago’s development agenda in our
annual budgets and even outside the formal budget exercise.
Indeed it is this special relationship between the Central Government and the
Tobago House of Assembly that accounted for the introduction of the fast ferry
service, the purchase of Courland Estate and Pigeon Point, the Tourism Rolling Plan
and other initiatives that have served the people of Tobago particularly, and the
people of Trinidad and Tobago as a whole.
As we look to the next fiscal year, the Government stands ready to provide the
Assembly with all the support it needs to continue the important developmental work
being undertaken on the island.
Accordingly, in the next fiscal year, the people of Tobago will have access to
budgetary resources in the order of $2,238 million, comprising an allocation of
$1,398 million to facilitate the recurrent expenditures of the Assembly; $362 million
for development programme expenditures; and a further $478 million to be provided
for under other Heads of Recurrent and Capital Expenditure for expenditures in
Tobago.
THE ARITHMETIC OF THE BUDGET
Mr. Speaker, having taken this Honorable House through our development
philosophy and economic strategy, I will now like to turn to the arithmetic of the
budget.
Mr. Speaker, I know that some of my friends on the opposite side see the budget
and fiscal policy solely in terms of numbers, oblivious of or dis-interested in what
these numbers mean for the lives of real people, and particularly what they mean for
the poor and the dis-advantaged. But we must look at the numbers and, having
enlightened them about our policies and we will now show them the numbers.
Mr. Speaker, when this Government presented the supplementary appropriation in
June of this year, notwithstanding our explanations, the Opposition chided the
Government for increasing the budget envelope by the size of the supplementary
appropriation. In recent days, the naysayers have gone even further advising the
public to expect an “election budget”, with profligate and irresponsible spending.
Mr. Speaker, in presenting the estimated budget outturn for 2007 and the statement
of Fiscal Operations for 2008, we will prove them wrong on both counts.
First the outturn for fiscal 2007
This House will recall Mr. Speaker, that in October 2006, Parliament approved the
2007 Appropriation Act authorizing expenditure of $31,492.9 million; when added to
the direct charge to the Consolidated Fund of $6,141.8 million, largely debt
servicing, it implied total budget expenditure of $37, 634.6.
In June 2007, the Government returned to Parliament and received authorization to
spend a further $3,121.4 million, raising the total authorization to $40,756.1 million.
I am pleased to report, Mr. Speaker, that the expenditure outturn projected for 2007
is $39,275.1 million, some $1.5 billion below the total amount authorized.
Moreover, Mr. Speaker, the projected outturn figure includes transfers to the HSF of
$2,030.2 million, which in fact is not expenditure but savings. This implies, Mr.
Chairman, that in a real sense, total expenditure in 2007 was $37,244.9 million
Mr. Speaker, in terms of the standard presentation, the fiscal outturn for 2007 is as
follows:
• Total revenue of $40,543.8 million against
• Total expenditure net of debt repayment and sinking funds $39,275.1 yielding
an
• Overall surplus of $1,268.7 million.
Mr. Speaker, in addition to the transfer of $2 billion to be made in a few days, the
Government’s intention is to transfer the entire surplus to the Heritage and
Stabilisation Fund, once the accounts have been finalised.
Fiscal Operations for 2008
Mr. Speaker, the budget for 2008 is couched in the context of projected real GDP
growth of 7 percent and an average inflation rate of 6 percent in 2008 (a 12-month
rate of 5 percent as at December 2008).
As is our custom the budget is predicated on very conservative oil and gas price
assumptions of US$50 per barrel for oil (compared with an average realized price of
US$61.57 in 2007) and gas price of US$3.55 per mmbtu.
Based on these assumptions, total revenue is forecast at $40,381.2 million,
comprising energy sector revenue of $15,363.6 million and non-energy tax
collections of $18,654.6 million.
On the expenditure side, we intend to appropriate $36,477.2 million from the
Consolidated Fund while we estimate $ 5,783.7 as the direct charges on the
Consolidated Fund and other special funds.
This makes budgeted total expenditure in 2008 at $42,260.9 million. This compares
with the actual outturn in 2007 of $39,275.1 million.
Mr. Speaker the allocation of resources in the budget reflect the sectoral priorities as
discussed earlier.
Of the total expenditure:
• Education and training receive $7.6 billion
• National Security has been allocated $4.4 billion
• Health - $3.7 billion
• Housing - $2.6 billion
• Works and Transport $2.6 billion
• Agriculture $1.2 billion
Mr. Speaker, in the period 2001-2007 allocation to agriculture averaged $600 million
a year. This means that in 2008 allocations to the agricultural sector will be doubled
the average allocation for the period 2002 – 2006, and more than 50 percent larger
than the allocation for 2007.
In terms of our customary analytical presentation, Mr. Speaker, you have
Total Revenue $ 40,381.2 million
Total Expenditure $ 40,292.0 million
(Net of capital repayments
and Sinking Funds)
Surplus/Deficit $ 89.2 million
Mr. Speaker, last year, at the Budget presentation, our forecast was for a surplus of
$28.5 million.
FISCAL MEASURES
Mr. Speaker I now turn to the specific fiscal measures underpinning this year’s
Budget.
Increase in the Minimum National Insurance Benefits
Mr. Speaker in February 2006, the National Insurance Board of Trinidad and Tobago
(NIBTT) engaged the International Labour Organization (ILO) to conduct the 7th
Actuarial Review of the National Insurance System (NIS) as at June 30, 2005.
The 6th Actuarial Review was completed in 2003 to cover the period as at June 30,
2000.
The 7th Actuarial Review assists in ensuring the long-term financial, fiscal and
economic viability of the National Insurance System (NIS).
In light of the results of the evaluation, the Government proposes to implement the
following:
• a minimum retirement pension of $2,000 per month from January 1, 2008;
• an increase in the maximum level of earnings on which contributions and
pensions will be calculated from $4,377 to $8,300; and
• a slow and gradual increase in the NIS contribution rate from its current level
of 9.9 percent to 10.5 percent in 2008, with further increases to 10.8 percent
and 11.4 percent in 2010 and 2012 respectively.
The financial impact of the proposed increase in contribution rates on Government
as an employer is as follows: the Government’s monthly NIS contribution will
increase from $18.9 million at the current contribution rate of 9.9 percent to $28.6
million in 2008 when the contribution rate increases to 10.5 percent, an increase by
$9.6 million per month.
Thereafter, the Government’s monthly NIS contributions are expected to increase by
$0.8 million and $2 million to $29.4 million and $31.4 million in 2010 and 2012
respectively.
The increase in the NIS Benefits will come into effect from 1st January 2008 and
would be effected by amendments to the National Insurance Act and its Regulations.
Mr. Speaker, approximately 60,000 retirees will benefit from the increase in the
minimum retirement pension.
Senior Citizens Grant
Mr. Speaker, with effect from October 1st 2006 the maximum old age pension was
increased from $1,000 per month to $1,350 per month and was renamed the Senior
Citizens Grant (SCG). The Government has reviewed the distribution of this grant
and proposes the following amendments:
• An increase in the income qualifying ceiling from an average monthly income
of $2,150 to $2,500 per month;
• An increase in the maximum Senior Citizens Grant from $1,350 to $1,650 per
month;
• An increase in the Senior Citizens Grant for an individual whose monthly
income is $100 or less by $300 from $1,350 to $1,650; and
• An increase in the Senior Citizens Grant for an individual whose monthly
income is greater than $100 but does not exceed $1,000 by $300 from $1,250
to $1,550.
• Individuals whose average monthly income exceeds $1,000 will receive a
Senior Citizens Grant equal to the difference between the qualifying income
ceiling of $2,500 and the income received.
For instance Mr. Speaker, an individual who is in receipt of total income of $100 or
less and who previously received a Grant of $1,350 will now receive $1650, an
increase of $300.
An individual who is in receipt of a total average monthly income greater than $100
but not more than $1,000 and who previously received a Grant of $1,250 will now
receive $1,550, an increase of $300.
An individual who is in receipt of a total average monthly income of $1,500 will
receive a monthly grant of $1,000.
The estimated additional cost is $215 million annually and will benefit approximately
80,000 persons aged 65 and over.
This measure will take effect from the 1st October 2007 and will require amendments
to the Senior Citizens’ Grant Act.
Increase in the Minimum Public Service Pension
Mr. Speaker, the Government has acknowledged that notwithstanding prudent fiscal
and monetary policies, rising inflation levels continue to pose a challenge to the
disposable incomes of our citizens especially pensioners.
It is proposed therefore to implement a minimum pension payable to retired public
officers at $1,650 per month.
In addition, Mr. Speaker, given that it is proposed to commence the new NIS
monthly payment in January 2008, every retired public servant in Trinidad and
Tobago will receive a lump sum payment of $3,000 dollars to compensate for the
months of October, November and December of this year until the new NIS
payments are implemented. This measure will put more money in the pockets of
26,742 of our citizens.
Disabled Persons/Handicapped Persons Grant
Mr. Speaker, the Disability Grant was increased with effect from 1st October 2006 to
$900.
It is now proposed to increase the Disability Grant to $1,100 and increase the ceiling
income for receipt of this Grant from $3,600 per annum to $12,000 per annum. The
additional collective cost of these measures is estimated at $59.4 million.
This measure will take effect from 1st October 2007 and will require amendments to
the Public Assistance Act. Mr. Speaker this measure will benefit 17,000 of our
citizens.
Public Assistance Grants
Mr. Speaker, to provide for the economically disadvantaged, it is proposed that the
Public Assistance Grants based on the number of dependents per household be
increased as follows:
Existing Grants Proposed Grants
1 person from $470 to $650
2 persons from $710 to $900
3 persons from $920 to $1,100
4 persons
and above from $1,090 to $1,250
This measure is expected to cost an additional $38 million dollars and will take effect
from 1st October 2007. It will have a positive effect on more than 21,000 of our most
vulnerable citizens.
Minimum Wage
Mr. Speaker, the minimum wage level has remained unchanged despite increases in
wages in most sectors of the economy.
It is therefore proposed to put in motion the machinery for increasing the minimum
wage from $9.00 to $10.00 per hour. The procedure to be followed in varying the
minimum wage is provided for in the Minimum Wages Act.
Increase in the Wages of the Unemployment Relief Programme (URP) and the
Community- based Environmental Protection and Enhancement Programme
(CEPEP)
Mr. Speaker, the Unemployment Relief Programme (URP) is meant to provide short
term employment relief while enhancing the skills of individuals in the community
and undertaking sustainable development initiatives.
The effective decentralization of the Programme to 12 regions throughout the
country sought to provide a more equitable distribution of the Programme’s
resources. The Programme was also expanded to include both maintenance and
construction projects to facilitate its expansion.
Mr. Speaker, the Government has upgraded the Unemployment Relief Programme
to ensure greater efficiency and effectiveness in its operation. We have also
included a training component to the Programme in which participants are trained in
the skills which would increase their ability to be employed in other productive
sectors in the economy.
Mr. Speaker, to further support the Programme, it is now proposed to increase the
wages applicable to the Unemployment Relief Programme by a one time 15 percent
across the board effective January 1, 2007.
Mr. Speaker, the Community- based Environmental Protection and Enhancement
Programme (CEPEP) commenced in May 2002.
It is designed to facilitate social transformation in the national community through
empowering communities to improve their living standards by increasing
employment opportunities; enhancing and improving the environment; and
developing a cadre of entrepreneurs.
The Programme has a significant training component in which individuals are
expected to develop the skills sets which will help to transfer them out of the
Programme into companies in the private and public sectors.
We also expect that the training will allow individuals to form their own companies
and vie for contracts under the Programme.
Mr. Speaker, CEPEP currently employs 5,640 contract employees and its scope will
be expanded in the new fiscal year. To support the expanded mandate of the
Programme it is proposed to increase the wages of all categories of workers in
Trinidad and Tobago by 15 percent effective January 1, 2007.
Reafforestation programme workers will also benefit from a similar 15% increase.
Incentives for Savings
Mr. Speaker, the promotion of savings is a key factor in prudent fiscal and monetary
management. It is therefore proposed that the aggregate deduction that may be
claimed for pensions and annuities plans should be increased from its current ceiling
of $12,000 to $25,000. The expected cost of this measure is $57 million and will
require amendments to the Income Tax Act.
Mr. Speaker this measure will reduce the burden on the State by encouraging
individuals to prepare for their retirement.
Increase in Deposit Insurance coverage
Mr. Speaker, since the establishment of the Deposit Insurance Corporation (DIC) in
1986, the coverage limit has remained unchanged at $50,000 notwithstanding the
developments within the economy.
The coverage limit is the amount a depositor can claim from the DIC in the event of
the failure of a financial institution.
This limit determines the potential liabilities under the Deposit Insurance scheme
and also influences the extent to which depositors’ confidence in the banking system
can be promoted.
The time appears opportune to examine the relevance and sufficiency of the
coverage limit for deposit holders. The wealth effect experienced by the population
has filtered into the banking sector. However, although deposit holders in the
banking sector may have increased their deposit holdings, the level of protection has
declined.
It is proposed that, with effect from the coming into operation of the ensuing Finance
Act, the coverage limit be increased form $50,000 to $75,000 without an increase in
the premium level, with further possible upward adjustments being subject to review.
Compensation for Victims of Uninsured Drivers
Mr. Speaker, the Government has identified the issue of road safety as one of its
priorities as existing road networks are expanded. It is proposed therefore to use the
proceeds of the Insurance Premium Tax to establish a Fund to compensate victims
of uninsured drivers.
Mr. Speaker, the Central Bank in conjunction with the Ministry of Finance and the
Association of Trinidad and Tobago Insurance Companies (ATTIC) will establish a
proposed structure for the establishment of the Fund with the view to having it
operationalised in the new fiscal year.
Legislation to ban the use of Cellular phones while driving.
Mr. Speaker, in light of the need to reduce the quantum of road accidents and the
overall carnage on our roadways, it is proposed to introduce legislation to make it an
offence to use cellular phones and other similar electronic devices while driving. It is
also proposed to introduce legislation to ban the use of television type monitors in
the front seat of vehicles. These measures will involve amendments to the Motor
Vehicles and Road Traffic Act.
Incentive for the Manufacturing Sector
Mr. Speaker, in 2002, the First Schedule of the Income Tax (In Aid of Industries) Act
was expanded to include all manufacturing activities and the initial allowance relating
to plant and machinery under the Act was increased from 50 percent to 60 percent.
Mr. Speaker, given the Government of Trinidad and Tobago’s objective of
stimulating economic growth in the manufacturing sector it is now proposed to
increase the initial allowance relating to Plant and Machinery under the Act from 60
percent to 75 percent.
Mr. Speaker when combined with the applicable 25 percent wear and tear allowance
in the subsequent years of asset utilization this measure would provide an additional
benefit to the manufacturer by reducing the individual’s chargeable income and tax
liability. This measure will take effect from January 1, 2008 and will require
amendments to the Income Tax (In Aid of Industry) Act.
Child Care Facilities and Homework Centres
Mr. Speaker, the maintenance of the family is recognized by the Government as
being critical to the development of the domestic social sector.
It is proposed therefore that companies that provide day care facilities and or
homework centers at their workplace for the children of their employees be provided
with an accelerated Wear and Tear allowance up to a maximum of $500,000 in the
year in which the expenditure was incurred. The normal Wear and Tear allowance
can be clamed by an employer on the residue remaining on the capital cost incurred
in setting up these facilities.
This measure will be closely monitored to prevent abuse by the companies and will
take effect from 1st January 2008 and will require amendments to the taxing
legislation.
Mr. Speaker, the Government will soon implement a policy in which homework
centres will be established in all Government buildings where appropriate and we
encourage the private sector to follow suit.
Returning Nationals
Mr. Speaker, returning nationals who have resided abroad for a continuous period of
at least five years immediately prior to the individual’s return to Trinidad and Tobago,
are entitled to claim relief from customs duties and motor vehicle tax. This
arrangement has been reviewed and it is now proposed that the period be reduced
to two years. This measure will require amendments to the Customs Act and the
Motor Vehicles and Road Traffic Tax Act.
Amnesty for late filing of Tax Returns
Mr. Speaker, it is proposed that there be an amnesty for tax penalties and interest
on late filing of income and corporation tax returns. This amnesty is proposed
because the Government believes that the tax liability to be collected far outweighs
the penalties, and it will also encourage taxpayer compliance. This amnesty will
apply to returns and taxes due for years of income up to 2006.
All individuals who have outstanding tax returns or outstanding tax liabilities and
associated interest charges, will have these waived if they comply by April 30, 2008.
Repeal Airport Departure Tax
Mr. Speaker it is proposed to Repeal the Airport Departure Tax which currently
stands at $100. It is proposed that the tax will be replaced with a Passenger Service
charge imposed by the Airport Authority of Trinidad and Tobago on each individual
travel ticket with the exception of tickets issued to those individuals who are exempt
from the payment of the airport departure tax under the existing laws. This measure
will take effect from the coming into operation of the new Finance Act and will
require an amendment to the Miscellaneous Taxes Act.
CONCLUSION
Mr. Speaker, with this Budget, we continue our determination to transform Trinidad
and Tobago into a developed nation. The people fully support this seminal project as
they witness and benefit from the abundant positive developments in all areas of
national life. Except for a handful of predictable, professional objectors, very visible
from this distance, the citizens and Government are in step, as we travel this historic
road together. This Budget will strengthen that unity of purpose, much to the further
confusion and desperation of the obvious mischief-makers.
The citizens have supreme confidence in their strongest ever economy, with its new
investments, industrialization and diversification, inflation control, national savings,
huge foreign reserves and full employment; they recognize the full importance of our
developments in education and training, housing, and improvement in health
services; they know we are succeeding and will eventually triumph in the struggle
against crime; they know the worth of our work in small business development,
social intervention, poverty alleviation, and cultural and community development;
they know that revolutionary infrastructural development is moving apace; they are
inspired by the transformational vision now being implemented in Agriculture; they
are most pleased with the phenomenal progress in Tobago; and they see and
approve all the other positives, including urban renewal and rural development, the
reform programme, and so much more. And in their hearts, they are very satisfied.
They know it is all for them and the children.
The people also know that it is all being done with integrity, transparency and
accountability. They recognize that, with a very clear vision and the courage and will
to take action, this government has been employing the nation’s resources to bring
light into every area of national endeavour; hope in every heart; and progress to
everyone and to every nook and cranny of Trinidad and Tobago.
They have developed the trust in the good governance of this Administration and
know that this Budget, like all others before, is not to advance partisan political
interests, but for the elevation of the citizens of our beloved Trinidad and Tobago.
In contrast, Mr. Speaker, the people also remember the horrible years of a previous
Administration, when this nation was plagued with a level of dishonesty, drift,
divisiveness and downright decadence that would have destroyed the national fabric
had it been allowed to continue.
And they know all who were involved, every single one of them, including those who
now seek an artificial and unconvincing distance from the unscrupulousness,
selfishness, greed and patent amorality of that period. And the country will not be
fooled again.
And so, with this Budget, like with everything else we have done, we invite the
judgment of the people. This Administration is not afraid of judgment, either here or
in the hereafter. We on this side are not here for ourselves, our private pockets and
bank accounts. This Government and this political Party, has proven to all and
sundry, including our severest critics, that we have zero tolerance for misdemeanour
in Public Life.
Our main concern as servants of God and the People, is the interest of the present
and future generations of Trinidad and Tobago. This Budget is further evidence of
that unshakeable resolve. And we know that notwithstanding the contortions,
fabrications and exaggerations that will be produced by some in the coming days in
this Honourable House, this Budget and this Government will find great favour with
the people. And for that, Mr. Speaker, let Almighty God be praised; and let the
people decide.
Mr. Speaker, I beg to move.
OTHER FISCAL MEASURES
Suspension of the Common External Tariff on Powdered Milk and Cream
It is proposed to amend the rates of import duty on the following items be suspended
from 5 percent to zero percent (0 percent):
DESCRIPTION OF GOODS
Milk and cream.
In powder, granules or other solid forms, of a fat content, by weight, not
exceeding 1.5 percent.
Not containing added sugar or other sweetening matter.
Removal of the Import Surcharge on Selected Poultry Products
It is proposed to remove the import surcharge on the items listed below beginning
from the date of publication of the necessary Legal Notice:
DESCRIPTION OF GOODS
Meat and edible offal, of poultry of heading 01.05, fresh, chilled or
frozen.
Of turkeys:
Cuts and offal, frozen:
Backs, necks and wings
Other
Of ducks, geese or guinea fowls:
Not cut in pieces, fresh or chilled
Not cut in pieces, frozen
Other, fresh or chilled
Other, frozen
Amendments to the Taxation Legislation
Death Benefit under Deferred Annuity Plans
Section 8(1)(x) of the Income Tax Act exempts from tax the lump sum death benefit
paid under an employer’s approved pension plan. However, no similar exemption
exists with respect to lump sum death benefits under approved deferred annuity
plans. This appears to have been an oversight.
It is proposed that, with effect from 1st January 2008, section 8 of the Income Tax
Act be amended to exempt lump sum death benefits paid under approved deferred
annuity plans.
Reward of contributions from a group pension plan (Section 28)
Currently, when there is a reward of contributions from a group pension plan, the
lump sum is taxed at source. When an annuity is surrendered, the lump sum is taxed
at source, but the taxpayer is also required under the legislation to declare the
income in the year that it is received, and the tax which was deducted at source is
treated as a credit.
It is proposed that there be consistency in the treatment of a reward of contributions
and the surrender of an annuity, that is, that tax be deducted at source in both
cases, and then the income be declared in the year it is received, and a credit
received for tax deducted at source.
Computation of interest (Section 103)
It is proposed that the interest to be computed on outstanding tax liability be accrued
from the day after the due date to the date of payment of the tax, or such earlier
date as the Board of Inland Revenue may determine.
The reason for this amendment is to give the taxpayer a grace period for payment of
the interest. This measure will take effect from 1st January 2008 and will require an
amendment to the Income Tax Act, Chap. 75:01.
Tax Payments and Refunds
At present where a tax payer has a liability or refund of $3 or less, the tax is
considered settled and no payment is due or refund is issued. It is proposed that
this amount should be increased to $100 where the tax liability does not exceed
$100 and to $25 where the amount assessed for a refund does not exceed $25.
This would assist in reducing the administrative burden placed on the Board of
Inland Revenue. This measure will take effect from 1st January 2008 and will require
an amendment to the Income Tax Act.
Filing of returns
At the present time the tax legislation requires that certain persons collect and pay to
the BIR financial services tax, insurance premium tax and hotel accommodation tax.
These persons are not required by law to file a return which will assist in establishing
a liability in the records of the BIR. It is proposed that the tax legislation be
amended to give to the BIR the power to require a return to be filed which will be
used to establish a liability against which payments will be offset.
The filing of the returns will facilitate efficient administration and will be in a format
simple enough to ensure that the person required to pay the tax is not unduly
burdened.
This proposal to file returns will require an amendment to the Miscellaneous
Taxes Act, Chap. 77:01 and will come into effect from the coming into
operation of the Finance Act.
Modification of Penalties
The existing tax legislation provides that under certain circumstances tax is to be
withheld a source. The tax withheld must be remitted to the BIR by a particular date
and failure to comply with the provision results in a penalty being paid which, in
some cases, is as high as 100% of the outstanding taxes not paid to the BIR.
It is proposed that all penalties which are currently in excess of 25% be reduced to
25%. This reduction, apart from providing a benefit to the person charged with the
responsibility to collect tax on behalf of the BIR is also geared toward minimizing the
need to treat with a number of applications for waiver of penalties. The imposition of
a high penalty was intended to increase taxpayer compliance at a time when the
enforcement mechanisms of the BIR were not as strong as currently obtains. The
Minister of Finance is of the view that because of increased taxpayer maturity and
strengthened enforcement mechanisms, there is no longer the need to have such
high penalties.
The reduction in the penalties to 25% will require an amendment to the Income
Tax Act and this measure will take effect from 1st January 2008.
Modification of Witholding Tax (Part II, 3rd Schedule, Income Tax Act)
The Income Tax Act provides that income tax, referred to as withholding tax, be
levied and paid on distributions and payments arising outside of Trinidad and
Tobago and made to any non-resident person or company. When the tax rate on
net income was in certain cases as high as 45%, it was reasonable to maintain the
rate of withholding tax at 20% since this is imposed on gross income. However, now
that the tax rate on net income has been reduced to 25% across the board, it
appears harsh to maintain the withholding tax rate on gross income at 20%. For this
reason, it is proposed that the withholding tax rates be amended as follows:
• The withholding tax on payments be reduced from 20% to 15%;
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• The withholding tax on dividends be reduced from 15% to 10%
• The withholding tax on dividends paid to the parent company be reduced
from 10% to 5%
This measure will take effect from the coming into operation of the Finance
Act and will require amendments to the Income Tax Act, Chap. 75:01.