Professional Documents
Culture Documents
B U D G E T S TAT E M E N T 2 0 1 5
September 8, 2014
PRESENTED BY SENATOR THE HONOURABLE LARRY HOWAI
MINISTER OF FINANCE AND THE ECONOMY
C o ntents
1. Introduction 4 6. Labour 24
1. INTRODUCTION
Madam Deputy Speaker, it gives me great pleasure Minister in the Ministry of Finance and the Economy
to present to this Honourable House the fifth Budget and the Honourable Rudranath Indarsingh, Minister
of the Peoples’ Partnership Administration under of State in the Ministry of Finance and the Economy.
the transformational leadership of our Prime Their guidance in developing our plans and
Minister, the Honourable Kamla Persad-Bissessar. strategies for modernising the country has been
This Administration has traversed a very challenging constructive and enlightening.
period over the past 4 years; but we have remained
My other colleagues have also played critical roles
resilient and strong.
in charting our national agenda for improving the
Madam Deputy Speaker, as we have systematically welfare of the people of Trinidad and Tobago; and
overcome the several challenges which had of course this public policy agenda has also been
confronted us, we are progressing with confidence shaped by the several submissions which I received
and optimism to a renewed mandate in 2015 for by professional associations, non-governmental
a further 5 years. Indeed, the single-mindedness organisations and concerned individuals
and clarity of vision of our Honourable Prime throughout the length and breadth of our country;
Minister have been essential in ensuring that our for these national insights I am extremely thankful.
economy returned to more inclusive, fair and
Madam Deputy Speaker, I must also stress that
equitable growth. We are witnessing improving
our plans and programmes could not have been
living standards among all citizens.
achieved without the professional advice and
We have in place policies which are extending a unstinting support of the staff of the Ministry of
caring hand to those who experience difficulties Finance and the Economy. I owe them a debt of
and we are creating opportunities for all our gratitude as they have worked assiduously, tirelessly
citizens to participate in our growing economy. This and beyond the call of duty in the preparation of
financial year 2015 Budget Statement is formulated the documents which I have laid in this Parliament
around the theme: Empowering our People through today. These documents provide a comprehensive
Sustained Economic Growth and Prosperity. overview of the performance of the Government
I wish to thank, for their selfless support, the over the past year as well as details of revenue and
Honourable Vasant Bharath, Minister of Trade, expenditure for 2015.
Industry, Investment and Communications and
2. ECONOMIC CONTEXT
AND PERFORMANCE
Madam Deputy Speaker, our economy has Madam Deputy Speaker, we have achieved
performed admirably in the face of the adverse a great deal over the past 4 years and in a very
cumulative effects of the difficult external difficult environment:
environment and the turbulence in financial • growth has been restored after 3 years of decline.
markets brought about by the 2008-2009 global We have had in the period 2012-2014, 3 years
financial crisis. of positive economic growth, notwithstanding
The spill-over impact was inevitable in the context of extensive and prolonged maintenance activity
our increasing economic and financial integration in the energy sector. The non-energy sector in
into the world economy; but our strong economic particular, has shown continued strength and
fundamentals provided a substantial buffer which buoyancy;
allowed this country to emerge very quickly from • this economic growth is taking place in the
the negative effects of that crisis. context of job creation and stable inflation rates.
We are now encouraged by the strengthening In the period January – September 2013 the
recovery of the global economy. Economic unemployment rate averaged 3.6 percent and
activity is gaining momentum and the International the average for the year as well as for 2014 is
Monetary Fund (IMF) in its July 2014 Outlook is projected to maintain the same level.
projecting an expansion of 3.4 percent in 2014 and The inflation rate had averaged 5.1 percent in
4.0 percent in 2015. While many economic and 2013; but as at June 2014, the average rate has
geopolitical risks remain, these growth projections fallen to 2.8 percent - the lowest in 10 years;
for the global economy are good news for
• the fiscal deficit is on course to meet our 2016
emerging and developing countries.
objective of bringing the fiscal accounts into
Madam Deputy Speaker, the growth rate in most balance; notwithstanding the budgeted deficit
Caribbean countries has been improving as several of $6.357 billion for fiscal 2014, a surplus of $1.967
economies which are more tourism-oriented are billion had been realised as at the end of June
benefitting from the higher levels of growth in 2014;
the United States as well as from the economic
• public sector debt remains at a sustainable level
recovery in the United Kingdom. We look to the
at 43.0 percent of Gross Domestic Product (GDP)
eventual turnaround of the Euro Zone area to add
with the external debt service ratio remaining
a further boost to these economies.
in single digit; these debt ratios are within well-
In this context, Trinidad and Tobago will benefit from established international benchmarks;
the improving world and regional economy and
• the balance of payments remains robust with the
with our strong macro-economic fundamentals
generation of consistent surpluses on the current
and appropriate monetary policy we will be able
account and with steady flows of private direct
to shift our current growth rate to a higher and
investment. As a result, gross official reserves
more sustainable pace.
3. ECONOMIC RECOVERY
-ORIENTED ENVIRONMENT:
Despite the concerns expressed by the national It has also initiated review work for the Vehicle
community with respect to the inordinate purchase Management Corporation of Trinidad and Tobago
amount by one staff member of First Citizens and Limited and National Flour Mills Limited. These
which is now subject to an investigation by the reviews will chart a course for greater efficiency and
Trinidad and Tobago Securities and Exchange effectiveness in our state enterprises. Further annual
Commission, the share price on September 5, 2014 reviews of these enterprises will be undertaken to
was $35.96, some 63.5 percent higher than the measure their progress and annually more state
$22 price which prevailed at the date of listing on enterprises will be added to the process as we
September 16, 2013. improve the operations of these companies.
As soon as it is appropriate the National Gas
Company of Trinidad and Tobago Limited will be
offering to the national community 49.0 percent of Public-Private-Partnerships
the shareholding of the Trinidad and Tobago NGL Programme
Limited which company holds the 39.0 percent
Madam Deputy Speaker, the introduction of public-
shareholding of the National Gas Company in
private-partnerships as a mechanism for accelerating
Phoenix Park Gas Processors Limited.
the installation of the requisite infrastructure in several
This will be a historic event, being the first listing of sectors has been under consideration for some
an energy stock on the local stock market. We time. Progress was initially slow as we generated
shall continue to spread share-ownership as widely the capacity within the Ministry of Finance and the
as possible among the population thereby giving Economy to manage this initiative.
citizens a direct stake in industrial successes.
I am pleased to advise this Honourable House that
2 pilot projects in the health and education sectors
under a technical assistance programme provided
Securing Strategic Investors
by the Inter-American Development Bank are now
Madam Deputy Speaker, a consultant has been in progress. The consultancy contracts are in place
engaged to prepare a Request for Proposals for securing transaction advisors for 3 national
for securing a strategic investor for The Vehicle diagnostic centres and for 10 primary schools and
Management Corporation of Trinidad and Tobago 10 early childhood care and education centres.
Limited. The engagement of consultancy services
I expect that by February 2015 the preferred
to undertake a similar exercise for the National
contractors for these projects will have been
Helicopter Services Limited is well underway.
secured. In October 2016 the diagnostic centres will
These strategic investors will be required to bring begin actual service delivery and in January 2017
to the operations of those 2 companies new the 20 schools will be ready for enrolment.
capital, access to new markets and state-of-the-art
The Airports Authority of Trinidad and Tobago has
technology.
requested the International Finance Corporation,
The Government is determined to improve the the private sector arm of the World Bank Group,
operational efficiency and effectiveness as well to submit a proposal which will lead to improved
as the governance of our state enterprises. In services at our 2 international airports; the Piarco
fact, in 2013, the state enterprise on a collective International Airport and the ANR Robinson
basis generated profits of $7.6 billion and the International Airport. As we build our capacity for
Caribbean Information and Credit Rating Services identifying and managing Public Private Partnership
Limited has already completed initial rating reports projects, we will roll-out a range of infrastructure and
for 2 enterprises: The Point Lisas Industrial Port service-delivery projects which will provide attractive
Development Company Limited and the National business opportunities to potential investors.
Helicopter Services Limited.
stability framework for mitigating systemic risk and credit unions from the Commissioner for Cooperative
for applying heightened prudential standards for our Development to the Central Bank of Trinidad and
large and complex institutions. Tobago.
A high-level Task Force on Integrated Financial As our financial regulatory framework becomes all-
Regulation and Supervision, under the chairmanship encompassing, the financial services industry will
of an independent consultant, has undertaken continue to expand and become more diversified.
research and consultation to determine the most This evolution in regulatory control is facilitating
feasible model for integrated financial regulation the work of the Trinidad and Tobago International
and supervision in Trinidad and Tobago. Financial Centre which is strengthening its capacity
On September 3, 2014, I received the Report of the to attract and bring into Trinidad and Tobago new
Task Force which outlined the way forward for such a investors in the financial services industry.
financial stability framework. The recommendations We have also laid in Parliament the Miscellaneous
will inform the preparation of a new Green Paper Provisions (Proceeds of Crime) Bill which significantly
which will be sensitive to our stage of development strengthens our framework for Anti-Money
as well as to the expected evolution of the capital Laundering and Counter Terrorism Financing
market and the financial sector in the country. activities.
Madam Deputy Speaker, saving bonds was once
an important investment instrument in Trinidad and
Capital Market Tobago contributing to the funding of government
Madam Deputy Speaker, we have recently services.
strengthened the Securities Act 2012 to bring it in
Bond sales and purchases also facilitated the
line with international best practice, in particular on
development of the capital market bringing in small
prosecuting market misconduct and manipulation
investors who purchased bonds in much smaller
as well as on measuring and evaluating risk exposure
denominations than the traditional large investors.
in the securities industry.
The Government proposes to reactivate this niche
This legislative updating will bring enhanced
market with the introduction of a tax-deductible
market confidence which is not only critical for
savings bond — a confidence-inducing measure
financial development but also for growth and
targeting in particular young persons seeking to
development of the country. We shall soon be laying
save for the future as well as pensioners seeking a
in Parliament a revised Insurance Act which reflects
better return on their investments.
the deliberations of the Joint Select Committee of
Parliament which worked diligently on this legislation Our increasing integration into the international
over the past year. It has broad industry support and financial system is now being consolidated with
is modelled on Canadian Law and includes a major our participation in Euroclear which is one of the
strengthening of regulatory capital. principal clearing houses for Euro bonds and other
securities. The settlement and safe delivery of bonds
Subsequent to the passage of this legislation, we
on behalf of local investors within Euroclear will help
shall lay in Parliament a new Credit Union Bill with
to build the international credibility of Trinidad and
international standards and best practices from
Tobago and give local investors improved access to
other jurisdictions which will transfer supervision of
international capital markets.
4. S T I M U L AT I N G G R O W T H
AND INVESTMENT
Madam Deputy Speaker, technical work continues position Trinidad and Tobago as a regional hub
on the 5 growth poles which we have established for high-quality disaster data-recovery and a
in special and regional areas for spurring economic production centre for local and regional planners.
growth and development and work is also taking The public policy agenda is being driven by 2
place on port rationalisation. The recently- newly-mandated companies: invesTT and exporTT.
commissioned, Galeota Port, will provide significant The goal of these 2 companies is to facilitate the
logistic support to the oil and gas industry in the creation of competitive firms in the non-energy
south-east region and in the process will generate manufacturing and service sectors. The existing
economic development and job creation. tax incentive infrastructure has been driving an
In support of these growth-enhancing activities, expanding manufacturing sector which now
we are encouraging businesses and academic comprises approximately 9.0 percent of gross
researchers to collaborate on the stimulation of domestic product. The Government proposes to
innovation at the level of firms. For this purpose, we provide incentives to develop the following new
have established an Innovation Fund capitalised sectors which we are targeting:
with $50.0 million to be utilised as matching grants • firstly, our food and beverage industry which
for the innovation needs of companies. We are has been expanding in both regional and
consolidating our new ranking as an innovation- international markets. We propose to establish
driven country, up from the efficiency-driven a subsidy for testing services in order to assist our
country category as determined in the latest manufacturers in covering such costs with a view
Global Competitive Index Report. to meeting the quality requirements demanded
Madam Deputy Speaker, I turn now to the progress by international markets;
being made in key sectors of our economy. • next, the creative, arts and entertainment sector
which is now in export mode. We are moving
to strengthen these efforts. To this end, the
Manufacturing Government proposes to increase the rebate for
Madam Deputy Speaker, we are focusing on a the use of local labour, in particular in the film,
trade policy and strategy which has at its core the fashion and music sub-sectors;
diversification of our production base and export
• thirdly, the maritime sector is being facilitated
markets. Our newest economic zone: the Tamana
through legislative changes which will create a
InTech Park built with an investment of $2.2 billion is
climate attractive to foreign direct investment
leading the drive to attract high-value tenants who
in that sector. Shipping legislation which has
will not only develop human capital but also create
already been finalised by the Chief Parliamentary
high-quality and sustainable jobs.
Counsel will soon be laid in Parliament; and
Marketing has begun to attract investors in the
• finally, the yachting industry has long been
fields of medical care and health tourism. We have
providing storage and repair services for cruising
agreed on the fiscal framework for the introduction
yachts and light commercial marine and fishing
of a Tier Three Data Centre in the Park which will
vessels.
The Government proposes to strengthen this will serve to position Trinidad and Tobago as an
industry by introducing at the University of emerging location within the Caribbean, Central
Trinidad and Tobago (UTT) advanced training for and Latin American region for financial services
yacht building and maintenance; to this end, the and will create high-value quality jobs, in particular
UTT has entered into a strategic partnership with for university graduates.
the Southhampton Institute – Warsash Maritime This new industry will have global reach. Our vision is
Centre for Maritime Training. The graduates for Trinidad and Tobago not only to be the financial
from the Institute will be certified by the National centre of the region but also to be one of the
Training Agency and their initial training will be foremost locations for a global financial services
organised within the yachting industry. hub in this part of the world.
Madam Deputy Speaker, the Government will
continue to partner with the new investors in
developing these sectors which will contribute to Tourism
the re-balancing of the economy in favour of the Madam Deputy Speaker, consequent on the global
non-oil energy sector and to the development of a financial crisis, the tourism sector, in particular in
sustainable economy. Tobago entered into a period of financial difficulty;
Madam Deputy Speaker, I now turn to the Financial however, the Government acted promptly to arrest
Services Sector: the decline and to revitalise the sector.
In the past year, we established the Trinidad and
Tobago Tourism Development Fund which has been
Financial Services providing guarantees to financial institutions in
Madam Deputy Speaker, our financial services Tobago as they restructured debt and / or provided
sector has become an important pillar in our new loans to hotels and hotel-related businesses. As
economy contributing approximately 15.0 percent at August 2014, the Fund had already issued Letters
of Gross Domestic Product and facilitating the of Undertaking to 11 businesses in Tobago with a
modernisation of Trinidad and Tobago. We have total cash allocation from the Fund amounting to
already become the financial centre of the $19.0 million. To achieve even better participation
region; and the financial institutions shared-support by tourism-related businesses, the Government
services subsector is now consolidating with a welcomes the decision of the commercial banks
marketing strategy to attract the middle and back- to improve access to the Fund by increasing the
office operations of financial institutions - 2 such tenors for both restructured loans and new loans.
businesses are now in operation with 1,000 newly- The Government will now expand the Trinidad
created jobs. The success of these 2 operations has and Tobago Hotel and Guesthouse Room Stock
exceeded the expectations of the investors and Upgrade Incentive Programme. We envisage
discussions are underway for the further expansion that this programme will lead to the upgrade and
of the business of one of these centres. refurbishment of guest houses and hotels of between
Quatrro Global Services PVT Limited, an India- 8-100 rooms. A reimbursement of 25.0 percent of
based business, has selected Trinidad and Tobago the cost of the upgrade works per guest room is
as a location to launch a pilot project to establish being provided with a maximum reimbursement of
a card processing centre. On December 13 2013, $12,000 per room for properties located in Trinidad
Quatrro Global Services PVT Limited entered into and $15,000 per room for properties located in
a Memorandum of Understanding with both the Tobago.
Trinidad and Tobago International Financial Centre However, as an interim measure and to encourage
and Caribbean Electronic Payments Limited with a upgrade works both in the interior and exterior areas
view to commencing the pilot project. This initiative of the property, effective July 31, 2014, the rebate
programme has been expanded for a 3-year agricultural production with the sector returning to
period for properties between 6-150 rooms with the growth in both 2013 and 2014.
maximum limit being increased to $750,000. Moreover, food price inflation has been averaging
Another 3-year incentive programme which below 5.0 percent with the average for the first
commenced on July 31, 2014 is aimed at upgrading half of the calendar year 2014 being 3.5 percent
work in small tourism properties with between 1-5 – the first time in 21 years food price inflation has
rooms; the reimbursement will be 20.0 percent of remained in single digits for 6 consecutive months.
the cost of the upgrade work up to a maximum of The Government has continued to consolidate and
$75,000. To further the development of the sector to improve the quality of infrastructure to support
and to encourage investment in new 4 and 5 star this rapidly-expanding sector:
hotels the Government is proposing to provide
• agricultural incentives are being deepened
guarantees to financial institutions for lending to
and widened; 3,390 small farmers accessed
investors.
the benefits amounting to $19.0 million which
Madam Deputy Speaker, during the course of the facilitated either their continuation in farming or
coming year we are proposing to: their expansion of existing production; in June
i. transfer to the private sector the management of 2014 the Incentive Programme was extended to
the hotel associated with the National Academy large farmers;
for the Performing Arts; • the Agricultural Development Bank has extended
ii. enhance tourism sites and other attractions over $107.0 million to key areas of the agricultural
throughout Trinidad and Tobago, in particular sector;
the Sugar Heritage Village and Museum project • the recently-established national Praedial
which is preserving the history and heritage Larceny Squad is already making its presence felt
of all economic, social and cultural traditions despite being in operation for less than a year.
associated with the sugar industry; Approximately 51 arrests have been made and
iii. upgrade of beach facilities, including safety and this has significantly improved farmer confidence.
security measures, at Maracas Bay, Tyrico and • accordingly, I propose to make additional
Las Cuevas in the first instance; resources available to the Agricultural
iV. upgrade on a phased basis starting from 2016 Development Bank as well as to increase all fines
the beach facilities at, Quinam, Los Iros, Salybia, related to praedial larceny;
Mayaro, Toco, Manzanilla and Vessigny; and Madam Deputy Speaker, agricultural production is
V. progress the Southern-Caribbean Cruise initiative also being spearheaded by:
further with the execution of a Memorandum of • the recently-created Caroni GREEN Limited. The
Understanding among participating countries. company has already brought into agricultural
production 360 acres of land utilising in the main
the 2-acre sized agricultural plots leased from the
Agriculture former employees of Caroni. With more than 290
Madam Deputy Speaker, the agricultural sector metric tonnes of produce harvested within the last
has long been in a state of decline; but this decline 6 months, Caroni GREEN has been contributing
has now been reversed with this Government’s substantially to domestic consumption of quality
active engagement in the sector. At the centre fresh vegetables;
of Government’s agricultural policy is the National
• the commercial large farm programme is being
Food Action Plan 2012-2015. The plan aims to raise
rolled-out with the establishment of 8 large farms;
productivity and production among our farmers.
the agri-business investors are already increasing
Indeed, we are now witnessing an expansion in
the quantity, the quality and the reliability • the agricultural lease issuance exercise for more
of domestic food supply in a wide range of than 8,400 former employees of Caroni (1975)
commodities, including rice, onions, hot peppers, Limited is continuing; approximately 2,600 leases
sweet corn, a range of citrus and aquaculture. have been delivered and 540 are awaiting
By the end of 2015, 4 additional large farms will delivery. With the transfer of responsibility for
become operational; delivery of leases from the Commissioner of
• the commercial large farm programme has State Lands to the Estate Management Business
been extended to Guyana in the context Development Company Limited the lease
of the execution on September 6 2013 of a issuance process will be expedited for completion
Memorandum of Understanding between the in 2015. These leases can now be sold in the open
Government of the Republic of Trinidad and market.
Tobago and the Government of the Co-operative The National Agricultural Marketing and
Republic of Guyana. Development Company has been strengthening
Expressions of Interest have been issued seeking the linkage between the process producers
qualified private agri-investors who will be provided and consumers thereby ensuring a much more
with leases for land in Guyana to produce sustainable balance between demand and supply
commodities of strategic importance to the food of domestic produce with associated stable prices.
security of Trinidad and Tobago, and the number of Madam Deputy Speaker, over the long-term the
responses are now being evaluated; Government remains committed to enhancing
• the local rice industry is being revitalised with a the enabling environment for growth in the
mandate to increase production to 50.0 percent agricultural sector. We have established the right
of total consumption by 2018; 300 acres of policy framework for the agricultural sector and
rice land have been resuscitated in the Plum we expect the sector not only to bring Trinidad
Mitan district and 500 acres are already under and Tobago to a state of food security but also to
cultivation and production under the large farm provide profitable business opportunities for our
programme; young agricultural entrepreneurs.
has led to a renaissance in the sector. The results of • drilling activity which is reflective of greater activity
this Government’s changes to the fiscal regime of in the upstream energy sector is increasing. In
the energy sector are impressive: 2010, the number of rig days was 1,132 and
• investment has been expanding: the oil and in 2013 rig days totalled 2,485. We expect this
gas companies have advised that investments number will be surpassed in 2014 based on the
amounting to US$3.3 billion will take place in 2014 work programmes under the 28 active production
and similarly-sized investments will take place sharing contracts and licenses; and
over the medium-term: US$3.2 billion in 2015 and • at least 53 exploration wells will be drilled over the
US$3.0 billion in 2016. next 8 years based on the exciting new seismic
Included in these investments is the recently- data coming to hand, the incentives now in
announced US$2.1 billion Juniper Project, the place and the contractual obligations of the
main component of which will be the fabrication companies.
of the Juniper Platform in the LABIDCO Industrial There is going to be an unprecedented period of
Estate with the creation of 300 jobs thereby activity in the energy sector over the course of the
initiating the revitalisation of economic activity in next decade.
the south-west peninsula. We are witnessing a marked increase in drilling
The Platform will facilitate the production of 1.2 activity, a significant increase in foreign and
trillion cubic feet of natural gas commencing in domestic direct investment, discoveries of new
2017 at a rate of 590.0 million standard cubic feet reserves of oil and natural gas and the stabilisation
of natural gas per day which is equivalent of 14.0 of oil production. We expect that, starting in 2017,
percent of the country’s production. Supporting we shall see improved results arising out of the
this will be the commencement in October 2014 audits of our oil and gas reserves.
of natural gas production from the BG Starfish Madam Deputy Speaker, the proposed US$850.0
Development; million Mitsubishi-Massy Methanol to Di-Methyl
• 12 production sharing contracts have been Ether plant is in an advanced stage of technical
signed over the last 4 years. Under the new model, conceptualisation. The plant will produce methanol
the Government has included various options for from natural gas and then go further down-
the marketing of its share of the natural gas; stream to di-methyl ether which can be used as a
• 5 new discoveries of natural gas or oil in the last 2 replacement for both propane and diesel.
years have been made, including: Importantly, its location in La Brea will generate
i. Trinity in the East Galeota block with 27.0 industrial development in the south-western
million barrels of oil; peninsula and bring to that area much needed
high-quality jobs.
ii. Petrotrin in Trinmar’s cluster 6 with 48.0 million
barrels of oil; Madam Deputy Speaker, as indicated the Energy
iii. bpTT in its Savonette-4 well with 1.0 trillion Port at Galeota will provide substantial logistic
cubic feet of natural gas; support for the oil and gas companies operating
iv. Trinity in its TGAL 1 well with 26.0 million barrels; off the east coast with a reach as far as Suriname
and and Guyana. The second phase of the Galeota
Port will begin in 2015 continuing the stimulation of
v. REPSOL in its Teak Bravo North well with 40.0
economic activity in the south-east communities.
million barrels of oil.
Additionally, upgrade work will take place at
• in addition a further 2 deep water production
Brighton, La Brea to accommodate the Mitsubishi–
sharing contracts are about to be signed and 3
Massy and Gasfin Projects.
on-shore licenses are about to be issued, the first
time in many decades;
With respect to the fuel subsidy, Government supply and in the delivery of services. We are also
has been advancing the transition from the high bringing the ICT policy and law up to best practice.
usage of gasoline and diesel to a greater use of
compressed natural gas as an alternative fuel with
our objective being the reduction in the burden of Major Infrastructure
the fuel subsidy on the finances of the country. The Madam Deputy Speaker, we are now making
National Gas Company of Trinidad and Tobago has progress in overcoming infrastructure backlogs
established a new company: NGC CNG Company and investing for more inclusive growth and
Limited which is spearheading the roll-out of the development. In fiscal 2015, public capital
CNG-equipped filling stations. By the first quarter of expenditure will amount to approximately $8.2
2016, 35 CNG fuelling stations will be operational. billion. I wish to turn now to infrastructure investment
Madam Deputy Speaker, hybrid and electric- in major sectors:
powered vehicles are now becoming the vehicles
of choice in many advanced countries. Moreover,
Water and waste water services
the increasing use of these vehicles is contributing
towards the reduction of gasoline and diesel. Madam Deputy Speaker, we are well on our way
to ensuring an adequate and reliable supply of
I propose to provide tax relief on the importation
water to all our citizens. We have reduced leaks
of hybrid and electric-powered cars subject to the
in our distribution network, reduced the number
regulations outlined by the Bureau of Standards.
of customer complaints, reduced the number of
repairs on our major mains, reduced the requests
Information and for truck-borne water and we have reduced the
number of repairs on our valves.
Communication Technology
We have improved infrastructure throughout
Madam Deputy Speaker, as we modernise this
Trinidad and Tobago, including the installation of
country to create a dynamic knowledge-based
storage tanks, the construction of new booster
society, we are bridging deficiencies in access
stations and we have installed and replaced many
to and use of information and communication
kilometres of pipelines and mains. In Tobago we
technologies. We recognise that a smarter Trinidad
have installed transmission mains from Englishman’s
and Tobago will be a more competitive Trinidad and
Bay to Castara and from Bacolet to Cove Industrial
Tobago and pursuant to our national Information
Estate.
and Communication Technology Plan, commonly
referred to as smarTT, we are implementing the Our citizens are benefitting from these infrastructural
initiatives which are aimed at making more developments. Approximately 57.0 percent of the
intelligent use of our financial, human and other customers of the Water and Sewerage Authority
resources. Affordable high-speed broadband are now receiving a reliable supply of water 24/7;
services are being made widely available to in Tobago this percentage is approximately 70.0
support the evolution of a dynamic knowledge- percent.
based society. Madam Deputy Speaker, in 2010, only 18.0 percent
With technical assistance from the World Bank of the population received a reliable supply of
Group, the Government is embarking on a $2.4 water.
billion expenditure on high-impact programmes Work is being vigorously pursued on establishing a
to improve infrastructure supply, in particular the daily supply of water for all our citizens. With the
provision of new networks and demand initiatives completion of the Beetham Waste Water Project,
to stimulate ICT usage in the society. Public-Private- the Industrial Estate at Point Lisas will benefit from
Partnerships will be utilised both in the expansion of a reliable and high quality water supply, thereby
5. BUILDING AN
INCLUSIVE SOCIETY
Madam Deputy Speaker, I turn now to our policy Primary and Secondary
initiatives for building a more inclusive society.
This country has just experienced its best year’s
This Government has identified 6 policy-driven
results in 3 of our major examinations: the Secondary
institutional components which are critical and inter-
Entrance Assessment, the Caribbean Secondary
dependent for making our society more inclusive
Education Certificate and the Caribbean
and for fostering growth which is sustainable. Our
Advanced Proficiency Examination; but more
policies are aimed at delivering greater equality of
needs to be done to build on this success. In order
incomes through greater equality of opportunities.
to improve the levels of literacy and numeracy, we
For this reason the focus of the Government is have deployed literacy and numeracy coaches to
on growth-enhancing investment and social 118 schools and have trained 2,700 teachers who
expenditures in 6 key areas; education, health, can now develop literacy and numeracy skills in
housing, a social safety net, transport and sporting students.
activities.
We are integrating information and communication
technology throughout the entire education
system. All students in Forms 1-5 will have laptops
E ducatio n
by September 2014 and we are ensuring that the
Mr. Speaker, the first component in our commitment demands of the society for skilled and technical
to a more inclusive society is the education system. services are met through the increase in the number
We are advancing our public policy agenda of of secondary schools offering the Caribbean
greater equity in our society and the building of Vocational Qualifications.
a competitive economy. The Government will
continue to provide quality and advanced skills
training to meet the demands of a middle-income Tertiary
society. Madam Deputy Speaker, in order to uphold
excellence in our tertiary education system and
to ensure that skills development meets the needs
Early Childhood Care and
of our society, a wide range of initiatives and
Education (ECCE)
programmes are being implemented:
Madam Deputy Speaker, we expect to achieve
• the Government Assistance for Tuition Expenses
universal early childhood care and education by
programme is benefitting approximately 67,000
2015. Our childhood centres established directly
participants; all public and private higher
by Government and by public-private-partnerships
education institutions are now being held
are providing our 3 to 4 year-old children with
accountable for the programme and the soon-
quality teaching and learning and in the process
to-be-introduced National Qualifications and
are facilitating their easy transition to primary
Credit Framework will strengthen the quality of
education.
the system;
Madam Deputy Speaker, let me assure this • an Aviation campus is being constructed at
Honourable House that this Administration Camden Field in Couva: leadership is being
will keep the GATE programme secure and provided by the University of Trinidad and Tobago.
sustainable. Madam Deputy Speaker, we have surpassed the
• the grace period of 6 months relating to the international benchmark established for student
repayment of loans under the Student Loan participation rates for tertiary education. In 2010, the
Revolving Fund will be extended; student participation rate in the tertiary sector was
• the University of the West Indies, Penal-Debe 42.0 percent. This Government has now achieved a
Campus is in an advanced stage of completion rate of 65.2 percent which also exceeds our target
with dedicated faculties for law, science and of 60 percent.
technology, food and agriculture and social
sciences;
H ealth
• the University of the West Indies, School of Dentistry
Madam Deputy Speaker, the second component
is being expanded;
in our commitment to a more inclusive society is our
• the University of the West Indies, Open Campus is focus on providing quality health care and medical
being constructed at Chaguanas; services to our national community. Individual
• the College of Science, Technology and Applied responsibility for his or her well-being represents
Arts of Trinidad and Tobago is expanding its a critical aspect of our overall healthcare. It is
nursing facility at El Dorado; imperative that our citizens monitor and manage
actively their own health regimes thereby reducing
• the Metal Industries Company Institute of
the demand on the country’s health system.
Technology has already established 4 Technology
centres in Tobago, in O’Meara, in Diego Martin Notwithstanding this reason, we have focused our
and in Penal; attention on creating client-centred experiences
and solutions which respect the needs, abilities
• a Drilling Academy has been established at St.
and uniqueness of those members of our national
Madeline with an expanded facility at Forest
community who require quality health care.
Reserve to provide training in downstream
activities such as production and refinery Our core principle is anchored on the rights of
operations, environmental remediation and patients and clients to experience respectful and
green technologies; professional care in a considerate and supportive
environment. In pursuit of this broad agenda, at the
• a Technology Campus is being established at La
core of which is service quality, the Government is
Horquetta and the facilities at La Brea and Point
improving the delivery of health care in Trinidad and
Fortin are being expanded;
Tobago. To this end, and in order to alleviate the
• an Automotive Training Institute, a Workforce chronic bed shortage at the San Fernando General
Development Centre and a Centre of Excellence Hospital, we converted the newly-constructed
in Cosmetology are being established at Administrative Complex in San Fernando into the
Woodford Lodge; 216-bed San Fernando Teaching Hospital. The
• the Business Education and Training Campus in facility became fully operational in the last year and
Carapichaima-Waterloo which is now focusing is delivering quality healthcare to the burgesses of
on agri-production will be expanded to a Digital San Fernando and our citizens in the surrounding
academy to support training in film, television, areas.
animation and multi-media; and Madam Deputy Speaker, our health service delivery
model has been moving apace since the last year:
• a Children’s Hospital and Multi-Training Facility facilities and medical centres at Arima, Couva,
in Couva is under construction and when Palo Seco, Sangre Grande, Maracas-St. Joseph,
completed will focus on ensuring not only that the Carenage and Toco. In addition, we have
medical needs of our children are fully-addressed extended the opening hours of these facilities and
in an 80-bed facility but also that 300 medical in several areas on a 24/7 basis.
and nursing students are trained at the University Moreover, in order that the short-term demands for
of the West Indies’ School of Medicine, Nursing medical services are met and in the context of the
and Pharmacology. shortage of doctors and nurses, Government has
With its location close to our gas-based industries been recruiting foreign health care professionals, in
in Point Lisas, the facility will also contain a 150- particular, nurses and doctors for the public health
bed centralised medical facility for adults with an institutions.
associated Burns Unit;
• the National Oncology Centre which will provide
diagnostic imaging and radiation therapy
H ousi n g
services is currently under construction and will Madam Deputy Speaker, a third component in
be fully commissioned in 2015; our commitment to a more inclusive society is the
provision over the next decade of comfortable
This specialist institution will add another
and affordable homes for those in the low- and
component to the national strategy for addressing
medium-income groups. We are overcoming the
the specific needs of cancer patients;
inadequate supply of houses and the difficulties of
• a National Diabetic Retinopathy Screening and our citizens in obtaining mortgage financing and
Treatment Service is being phased-in over a 4 year we are improving the maintenance of our housing
period at a cost of $85.0 million. This diabetic care stock. Ultimately, our goal is the establishment of
service is building on a pilot screening programme sustainable communities throughout Trinidad and
which has been in place since October 2013 and Tobago.
is already improving the quality of life of persons
The Government has embarked on a programme of
with diabetes through better control.
activities to construct new homes in light of the more
• Approximately 130,000 citizens is estimated in our than 160,000 outstanding applications from our
population suffer from diabetes with 11.0 percent citizens. We are also rehabilitating and maintaining
having urgent sight-threatening complications the existing housing stock. We are committed
with compromised vision or blindness; to meeting the public demand for housing over
• 4 other new state-of-the-art hospitals are on the the course of the next decade and we will do so
drawing board: Penal Hospital and Rehabilitation through an all-encompassing plan of action which
Centre, Sangre Grande Hospital, Point Fortin focuses on construction, rehabilitation, provision of
Hospital and the Arima Hospital; and land and subsidies for home-improvement:
• the external patient programme is providing • 3,000 new housing units are being built with
immediate relief to our citizens who have been resources from the public sector investment
waiting for surgical procedures for a minimum programme and local borrowing; more than
of 3 months in our public health care facilities: in 1,000 have already been completed at Egypt
particular, cataract, joint-replacement, CT and Village, Princes Town, Union Hall and Victoria
MRI. Keys;
Madam Deputy Speaker, the Government is also • high-rise apartment buildings will be refurbished
rehabilitating and repairing many other health and retro-fitted in fiscal 2015; the buildings are at
Pleasantville, Laventille, Morvant and Gasparillo; For this purpose we will amend the Housing Act to
56 other tenanted buildings with 656 units are make regulations as required under the Income
being refurbished; these buildings are at Charford Tax Act to grant effective January 1, 2013 the tax
Court, Maloney, Paradise Heights, Beverly Hills, incentives to housing developers as outlined in my
Dorata Street, Lisas Gardens, Pleasantville, Irving 2014 Budget Statement.
Street, Clifton Street, Ramsaran Street and Lady
Hailes Avenue;
• 110 new home-improvement and construction-
T ra n sport
matching subsidies to eligible low-income families Madam Deputy Speaker, the fourth component is
are being provided under the Neighbourhood our commitment to provide an efficient, reliable
Upgrading Programme with a US$40.0 million Inter- and affordable transportation system for our citizens
American Development Bank loan; furthermore, as well as to support the system with comfortable
more than 1,200 beneficiaries have received and state-of-the-art facilities. We are procuring on
from the Government home-improvement grants a phased-basis, 100 new CNG–powered buses. We
at a cost of $9.3 million; envisage that not only will ridership be increased
but the number of routes will be expanded. We
• the regularisation of unplanned settlements is
have also improved the efficiency of the sea bridge
improving the living conditions of low-income
between Trinidad and Tobago. The newly-acquired
persons at selected squatter sites, 30 of which are
ferry is not only faster but also accommodates
at varying levels of infrastructure development,
more passengers and cargo.
including at St Mary’s Village, Moruga; Base
Road, Arena; and Calvary Hill, Arima; With the coming into force of the Motor Vehicles
and Road Traffic Act the long-awaited Motor
• the Land for the Landless Programme is providing
Vehicle Authority, will be put in place on or before
residential lots at subsidised rates to low-income
March 31, 2015. The Head Office of the Authority
persons at 10 sites, including Felicity II, Glenroy II,
will be located in Frederick Settlement, Caroni and
Princes Town and Beaucarro, Freeport;
will ensure that our citizens will have easy access to
• the lease issuance exercise for more than 8,800 all licensing-office related services.
former employees of Caroni (1975) Limited is
In addition, 13 access centres will be located
continuing; approximately 1,700 leases have
throughout Trinidad and Tobago - all to be readied
already been distributed and with the scaled-up
by September 2015.
resourcing of the Estate Management Business
Development Company Limited, the lease
issuance exercise will be expedited in the context S ocial S afet y - Net
of the delivery of approved residential estates in
2015. These leases can now be sold in the open
S er v ices
market; and Madam Deputy Speaker, the fifth component is
our social safety net. We propose to rationalise our
• the 2.0 percent mortgage programme is being
social programmes to ensure that they are fully-
improved and is being supplemented with a 5.0
synergised. The World Bank Group will undertake
percent mortgage programme.
a detailed review of the performance of these
As we advance our programme to meet our programmes and make recommendations on
housing needs, we will expand the mortgage loan the way forward. The Group will assess their
programme to meet the needs of middle-income effectiveness and will determine a framework for
individuals. Multi-family units to increase the housing minimising overlap in both scope and scale.
output per site will be increasingly employed.
In the interim, we are improving the delivery of the Madam Deputy Speaker, I propose to increase
social safety-net services as we move to protect the benefits now available to several of our
the most vulnerable in our society. disadvantaged groups. Indeed, the use of these
We are now deepening the application of our strong social protection and innovative systems
social interventions: and strategies has been instrumental in reducing
poverty levels and in building the middle-class.
• a National Development Centre for the differently-
abled at Carlsen Field has now been completed The Human Development Report prepared by
and will be commissioned before December 31, the United Nations Development Programme
2014; a fleet of 24 buses of which 3 are in Tobago categorises this country as one of high human
are catering to the transportation needs of our development and ranks it 36th out of 185 countries.
elderly and differently-abled citizens;
• the Public Assistance Grant has been extended Natio n al S ports
to the head of the household where such a
Madam Deputy Speaker, the sixth component
person has to support a child under the age of 18,
in our thrust to a more inclusive society is sport
who is certified to be disabled; 1,300 persons are
development. We have made significant progress
now benefitting from the expansion of the grant;
in establishing an enabling framework, comprising
• the Unemployment Relief Programme has infrastructure, management and coaching, talent
been restructured with an increased focus on building, welfare of elite athletes and sport tourism.
social interventions in communities targeting
We are building on the existing infrastructure:
unemployed single parents, persons with
disabilities and those living under the poverty • the technical framework to support the
line: by September 30, 2014, 1,000 projects in development of football throughout the country
communities will be completed involving more has been put in place at an annual cost of $36.2
than 600 contractors employing approximately million;
3,600 persons on the building of drainage • the 5 multi-purpose stadia have been or are now
infrastructure, jogging tracks and play parks being upgraded; and
for children, the rehabilitation of roadways,
• community sporting groups and national
pavements and sidewalks and the construction
governing bodies are continuing to receive
of retaining walls;
financial assistance. This funding programme
• We intend also, as far as URP goes, to equalise has facilitated increased participation in various
wages between men and women. sporting disciplines and provided opportunities
• two programmes: the Servol Adolescent and for successful participation in events on the
the Parental Outreach which have proven to international stage.
be extremely successful in building cohesiveness We shall establish the Trinidad and Tobago National
among families will receive increased allocations; Games with the inaugural games taking place
and early in 2015. We are developing a critical mass
• subject to working out the qualifying requirements, of athletes and 5 disciplines are being targeted:
a new programme will provide financial football, basketball, cricket, netball and athletics.
assistance for 1 year only for any child born to Within this general framework we shall continue
under-privileged parents during the course of the to fund elite athletes so that they can attain
next fiscal year. excellence at the highest levels of competition.
In addition to this improved sporting infrastructure, at the National Cycle Centre. In doing so, Trinidad
we are developing 3 major state-of- the-art national and Tobago will be marketed as a preferred sport
sporting facilities, all of which are at an advanced training destination.
stage of completion. Madam Deputy Speaker, the Government is
We shall be in a position to leverage these facilities challenging the energies of our young people in this
to attract international events at the National area and looks forward to the future success of our
Aquatic Centre, the National Tennis Centre and athletes in all international sporting competitions.
6. LABOUR
Madam Deputy Speaker, this Government has Minister of Labour and Small and Micro Enterprise
been committed to the promotion of employment Development, will now be tasked with a mandate
practices which are fair and equitable to all to provide regular reports to address the complex
workers. While we have concluded and brought social and economic challenges facing the country,
up-to-date the majority of our industrial agreements including the keeping of the labour negotiations
within the state sector, the long delays in settling current and the reduction in the likelihood of lost
such agreements warrant a refocus on the value through industrial action. The Government
methodology for reaching industrial agreements. will consult with academia on its involvement in
The private sector has similar experiences. To this the process and will ensure that the dedicated
end, the Government will strengthen the existing secretariat will have professional and competent
mechanism for fostering multi-partite collaboration staff resources.
and social dialogue. Madam Deputy Speaker, as part of this process
This will foster consensus building and democratic and in keeping with the recommendations of the
involvement among the main stakeholders in the Minimum Wages Board I now propose to raise the
world of work. The Social Dialogue Task Force minimum wage.
which was established in 2013 and chaired by the
Madam Deputy Speaker, the Government places • the newly-established Community Comfort Patrol
at the top of its agenda the security of life and is bringing a much-needed security presence
property for the national community. The current in residential areas and housing estates. This
crime epidemic continues to be addressed through collaboration between the Ministry of National
a range of well-resourced multi-faceted initiatives; Security and the enforcement officers from
but undoubtedly productivity is still being impaired private security companies is adding another
and doing business in Trinidad and Tobago has to dimension to our quest to improve security within
take this cost into account. our communities.
While the level of homicides continues to be Madam Speaker, coordinated national joint
worrying, there has been some success in non- operations and proactive operational planning for
violent serious crime with declines registered in key national security, disaster and emergency crises
areas, in particular burglaries, break-ins and general are being facilitated by the National Operations
larceny. Internal security is being strengthened: Centre – a strategic platform for inter-agency
• the police presence has been expanded operations.
throughout the country, particularly in hotspot This robust integrated nationwide system for
areas where army patrols are also present; more coordination and communication at strategic,
mobile patrols and foot patrols are in place; operational and tactical levels is not only
• additional police personnel, including more than contributing to the reduction in serious crime but is
1,000 police officers and 1,400 special reserve facilitating regional and international cooperation
police officers have been recruited; capacity in the fight against trans-national organised crime.
building is taking place, in particular in the Border security has become increasingly critical
areas of evidence-based policing and crime due to the country’s location which exposes it to
scene investigation techniques. Approximately the growing threat of transnational crime and
560 police personnel have benefitted from this drug trafficking. The Trinidad and Tobago Coast
training; Guard has already added to its platform a number
• eight state-of-the-art police stations with of harbour patrol vessels and plans are afoot to
computerised technology have been constructed acquire for the Coast Guard coastal patrol vessels
throughout Trinidad and Tobago, namely Arima, and interceptors. Expenditure on these acquisitions
Piarco, Maloney, Cumuto, La Brea, Oropouche, will be in excess of $1.0 billion. These assets will
Brasso and Moruga; effectively blockade the Gulf of Paria against the
illegal shipment of narcotics, arms and ammunition
• rapid response units within various police divisions
and human trafficking. The protection of our
have been strengthened with more than 330
internal and external waters will be improved.
police vehicles equipped with GPS tracking
systems. Response times have now improved; Madam Deputy Speaker, this high-risk responsibility
and by our protective services personnel cannot
be discharged without the incidence of some for assistance to families arising out of death of a
casualties. This Government proposes to establish a member of the State protective services killed in
Fund from which could be drawn $1.0 million which the line of duty.
will be payable to the estate of the deceased
8. REFORM AGENDA
made to our country. I propose to increase these The Government is now moving to bring the
pensions. enabling legislation which established the Trinidad
Many of our citizens have long enjoyed pension and Tobago Unit Trust Corporation in line with
arrangements provided by our public companies. the guidelines relating to Collective Investment
These citizens have also been supplementing their Schemes as well as with the provisions of the
pensions through registered annuities programmes Securities Act 2012 which regulates the securities
and these programmes have also been available industry of which mutual funds represents an
to the self-employed. I propose to increase the important component. The new legislation will
limits for contributions to registered annuities. improve the flexibility of the Corporation to respond
effectively to the highly competitive nature of the
mutual funds market.
M utual F u n d M a n ageme n t
Madam Deputy Speaker, since the first mutual fund
H eritage a n d
was established in 1982 by virtue of the Unit Trust
Corporation of Trinidad and Tobago Act 1981, our
S tabilisatio n F u n d
mutual fund industry has witnessed meaningful and Madam Deputy Speaker, in accordance with the
continuous growth. By June 30, 2014, 60 active review requirements under the Trinidad and Tobago
mutual funds managed by 14 market actors had Heritage and Stabilisation Fund Act, legislation to
been registered with the Securities and Exchange update the governance and operational structure
Commission; and those market actors are subject of the Heritage and Stabilisation Fund will be
to regulation by the Securities Act 2012 and the introduced in the new fiscal year.
guidelines on Collective Investment Schemes
issued by the Central Bank of Trinidad and Tobago.
9. T O B A G O H O U S E O F A S S E M B LY
and T O B A G O D E V E L O P M E N T
Madam Deputy Speaker, I now turn to Tobago. First the Enterprise Assistance Loan and Venture Capital
of all, I wish to place on record that, consistent with Fund.
the provisions of the Tobago House of Assembly Act, The Tobago House of Assembly is collaborating with
the required budget documents were transmitted by the Ministry of National Security to ensure that the
the Tobago House of Assembly within the timeframes rich tourism product of Tobago is enjoyed in a safe
specified under the Act. and secure environment. Manpower shortages in
I wish also to express my appreciation to the Chief the Police Service are being addressed and 2 police
Secretary of the Tobago House of Assembly, the stations are being constructed at Old Grange and
Honourable Orville London, for his constructive Roxborough.
proposals relating to the administration and We are acutely aware of the developmental needs
development of Tobago – proposals which he shared of Tobago and we will collaborate with the Tobago
with me during the course of a consultative meeting House of Assembly on its utilisation of public-private-
between the Tobago House of Assembly and the partnerships for delivering key infrastructure and
Ministry of Finance and the Economy. The useful associated services.
insights of the Secretary of Finance and Enterprise
Development, the Honourable Joel Jack, have also An immediate project to broaden and to deepen
been helpful. the recreational choices for visitors to Tobago and
to provide much-needed amenities for fisher-folk as
This meeting as has become customary among well as boat owners, including power and sail yachts
ourselves was conducted in an atmosphere of mutual in Tobago and in Trinidad will be the establishment
understanding and respect. through a public-private-partnership of a world-
This Government will continue to collaborate with class marina at Petit Trou Lagoon located within the
the Tobago House of Assembly and the Ministry of Tobago Plantation site at Lowlands.
Tobago Development as they boost development The Ministry of Finance and the Economy and the
and change in Tobago. We are heartened by Tobago House of Assembly have agreed to meet at
the continued recovery of its key sector: tourism. regular intervals to address any issues that might arise
The island is witnessing increased visitor arrivals, during the next fiscal year.
both international and domestic, with the resulting
improvement in hotel and guest house occupancy For fiscal 2015 the budgetary allocation for the
rates. Tobago House of Assembly is $2.609 billion, of which
$2.202 billion will be for recurrent expenditure, $384
We welcome the increased tourism marketing efforts million for capital expenditure, and $23.0 million for
by the THA to attract not only foreign and domestic the Unemployment Relief Programme.
tourists but also to expand international airlift.
Furthermore, under the various other heads of
With domestic tourism rapidly expanding, Caribbean expenditure, Tobago will receive an additional
Airlines is strengthening its policies and systems with amount. In total therefore Tobago will receive
a view to ensuring a greater alignment between $3.7 billion or the equivalent of 5.7 percent of
demand and supply on the domestic air-bridge. the national budget. We remain committed to
The diversification process in Tobago will continue the recommendations of the Dispute Resolution
through adequate allocations for the development
Commission.
of the Cove Eco-Industrial and Business Park and for
Madam Deputy Speaker, I shall now present my • the Corporation is now being endowed with
budget proposals: the power to close, reopen, suspend and
1. Manufacturing cease to sell units in or otherwise wind-up a
unit scheme;
To spur development in the non-energy sector,
I propose with effect from January 1, 2015 to: • the power of the Corporation to restrict its
borrowing to a term not exceeding 90 days
• increase the rebate from 15.0 percent to
is being modified to extend the payback
20.0 percent in the production expenditure
period to 180 days;
rebate programme on use of local labour
in particular in the film, fashion and music • the sharing of information with local and
sub-sectors and also to increase the cap international regulatory authorities in
from US$3.0 million to US$8.0 million in the accordance with any written law will now be
production expenditure rebate programme; clarified and authorised; and
and • the removal of upper limits on unit prices
• introduce legislative changes which will other than the First Unit Scheme that is the
create a climate attractive to foreign direct TT Dollar Growth and Income Fund will allow
investment in the maritime sector; the Corporation to issue additional or new
schemes at such prices and with such limits
on minimum and maximum subscriptions as
2. Mutual Fund Industry the Corporation might deem appropriate for
I propose to amend the Unit Trust Corporation market conditions.
of Trinidad and Tobago Act 1981 in key
operational areas, in particular,
3. Heritage and Stabilisation Fund
• the definition of securities will be modified
I propose to amend the Trinidad and Tobago
to make it consistent with the definition of
Heritage and Stabilisation Fund Act 2007
securities applicable to all market actors as
Chapter 70:09 to provide for:
stated in the Securities Act 2012;
• creation of a legal entity by including a
• the definition of income allocated for
provision to establish the Heritage and
distribution will now exclude realised and
Stabilisation Fund as a Body Corporate;
unrealised capital gains from the requirement
to distribute not less than 90.0 percent of such • legal protection of the Heritage and
income; Stabilisation Fund Board members by the
inclusion of a provision to allow for the
• the 10.0 percent concentration and control
indemnity of the Board of Governors of the
investment restriction governing unit schemes
Heritage and Stabilisation Fund;
will now only be applicable to equity
securities; • increase in the floor of the Fund from US$1.0
billion which existed in 2010 to US$4.0 billion
Programme from $1.0 million to $1.5 million, to The Government will inject $12.9 million into
further boost the small business sector. the national insurance system to cover the
cost of the additional contributions for those
self-employed individuals; and
9. Pensions
• the subsidisation for the payment of
I propose to continue the process of facilitating
contributions by low-income self-employed
the ease of living for our senior citizens. With
persons, defined as persons who earn less
effect from October 1, 2014:
than $3,000 per month by the National
Senior Citizens Insurance Board of Trinidad and Tobago, in
i. the senior citizens pension will be increased an amount equivalent to two-thirds of the
by $500 per month to $3,500 per month contributions due from eligible low-income
and will cost an additional $200.0 million self-employed persons.
and impact 84,720 senior citizens; the senior The Government will inject a further $41.0
citizens pension will now be adjusted with million into the national insurance system to
the receipt of other pensions with a cap of meet this liability over the next 5 years but
$4,500. In 2010, the senior citizens pension was with an injection of $4.0 million for fiscal 2015.
$1,950;
• the transition for the self-employed into the
Public Officers National Insurance system will be fully-funded
ii. the monthly pension for retired public officers for the first year only at an additional cost of
will be increased by $500 per month with a $2.0 million.
minimum of $3,500 per month at an additional
cost of $240.0 million and will impact 35,000
10. Agriculture
retirees. In 2010, the minimum pension for
retired public officers was $1,950; I propose to continue our focus on achieving
food security and to that end and effective
Self-Employed
January 1, 2015:
I propose to bring the self-employed into the
i. all fines related to praedial larceny will be
national insurance system with an amendment
increased by 50.0 percent;
to the National Insurance Act. This proposal will
be effective January 1, 2015 and will impact ii. the cost of establishing approved
initially 11,300 self-employed. facilities for agro-processing of approved
commodities will be subject to a rebate of
To that end:
50.0 percent up to a maximum of $100,000;
• any self-employed person in the age group
iii. the cost of refurbishing approved
57 and over at the commencement of
facilities for agro-processing of approved
coverage in the year 2015 will receive a one-
commodities will be subject to a rebate of
off payment equivalent to three times their
50.0 percent up to a maximum of $50,000;
contribution.
iv. 40.0 percent of the cost of Hazard
• Anyone in the age group 50-56 at the
Analysis and Critical Control Points for
commencement of this coverage who
agro-processors will be refunded up to a
contributed fully in each year prior to
maximum of $150,000; and
retirement will be credited with additional
contributions to allow them to receive the I also propose to provide the Agricultural
minimum monthly pension payments. Development Bank with an allocation of $75.0
million.
Caroni
I propose to that the balance remaining upon 13. Housing
the termination of the Reserve Fund in May I propose to expand the existing 2.0 percent
2016 be distributed on a pro rata basis to all mortgage programme by increasing qualifying
pensioners and deferred pensioners of Caroni property values from $625,000 to $850,000 and
(1975) Limited. by increasing the combined monthly income
I am also putting in place a mechanism of households from $8,000 to $10,000 and to
through which those beneficiaries who had not supplement that programme by introducing
yet paid for their residential service lots could a new 5.0 percent mortgage programme for
now do so through a commitment to Caroni of households with a combined monthly income
their portion of the residual balance. of greater than $10,000 and less than $30,000,
towards accessing a mortgage greater than
$850,000 but not exceeding $1.2 million; this
11. Road Usage measure will benefit 26,100 applicants within
I propose to increase fines by 50.0 percent: for the HDC framework and a similar amount in the
speeding, driving under the influence, driving private sector; and
without insurance, possessing fraudulent motor I propose to increase the tax allowance from
vehicle certificates, driving with expired driving $18,000 to $25,000 per household per annum on
license; and for individuals producing or selling mortgage interest paid in the year of income
fraudulent insurance certificates. for first time home owners for 5 years, including
I propose to finally meet the outstanding those years utilised by existing beneficiaries.
reimbursements owed since 2005 to registered
maxi-taxi owners for their payments of Motor
14. Labour
Vehicle taxes and Value Added Tax.
Effective January 1, 2015, I propose to increase
the minimum wage from the current $12.50 per
hour to $15.00 per hour. In 2010, the minimum
wage was $9.00 per hour and this year
represents 66 percent increase.
1 1 . E S T I M AT E S O F R E V E N U E
AND EXPENDITURE: 2014-2015
Madam Deputy Speaker, I wish to direct my attention We are making the appropriate capital investments
to our estimates of revenue and expenditure for to drive modernisation but this is being done in the
fiscal 2015. As is usual practice, we have estimated context of the consolidation of our fiscal position.
oil and gas prices on the basis of our interactions We are ensuring that the budget deficit does not
with relevant international organisations. undermine monetary stability nor crowd-out the
In respect of our revenue assumptions we are private sector.
utilising a price of US$80.00 per barrel for oil and a Madam Deputy Speaker, pursuant to our public
gas price of US$2.75 per mmBtu. Following these policy agenda I have made appropriate allocations
price assumptions we are projecting the following to the various Ministries as follows:
for: • Education and Training : $10.126 billion
• Total revenue : $60.351 billion • National Security : $ 6.994 billion
• Oil revenue : $21.223 billion • Health : $ 5.545 billion
• Non-oil revenue : $39.128 billion • Public Utilities : $ 3.932 billion
• Total expenditure • Housing : $ 2.877 billion
net of capital
• Local Government : $ 2.649 billion
repayments and sinking
fund contributions : .664 billion • Works and Infrastructure : $ 2.542 billion
Madam Deputy Speaker, for fiscal 2015, the • Transport : $ 1.984 billion
Government envisages a fiscal deficit of 2.3 • Agriculture : $ 1.328 billion
percent of Gross Domestic Product, down from the
3.6 percent of Gross Domestic Product in the FY
2014 Budget and in keeping with our commitment
to reduce the deficit by one percent per year.
12. CONCLUSION
Madam Deputy Speaker, in 2010, the people whether they are in downstream oil and gas or in ICT
of Trinidad and Tobago elected the People’s or in financial services. We are assisting our young
Partnership under the dynamic leadership of the people to invest in their skills and in their future.
Honourable Kamla Persad-Bissessar. The people We are assisting our low-and middle-income
elected us because they wanted a government families to acquire comfortable and affordable
which had greater conviction in its strategies housing and we are putting in place mechanisms
and programmes for the future of our country. and facilities to allow our citizenry to access timely
We developed a coherent framework of what quality healthcare and medical services.
we wanted to achieve. Since that time, we have
Madam Deputy Speaker, while the restoration
consolidated the economic, social, political and
of financial and economic stability was high
financial stability of our country as reflected in all
on our agenda, we did not refrain from making
our macro-economic data.
substantive efforts to modernise our country and
We created a vibrant economic environment to create an inclusive society. We have delivered
which inspires confidence among domestic the commitments made in May 2010 and we
and foreign investors. We are now in a recovery have done so within a coherent and consistent
phase generating quality jobs. We will continue framework and in the context of fiscal prudence.
to sustain that recovery by focusing on long-term Let me cite some of those achievements:
fiscal consolidation, debt-sustainability and by
• the San Fernando - Point Fortin highway is being
implementing major infrastructure projects.
phased in; the Golconda-Debe segment is
The proposed procurement reform legislation already in use and the Mosquito Creek-Penal
represents a key underpinning for establishing segment will be available in 2015;
transparency and accountability. This framework
• new and modern hospitals are now under
of action will raise our capacity to progress as a
construction;
nation and will help in safeguarding our financial
and economic stability. • Since 2010, 83 new schools have been built;
Madam Deputy Speaker, the Republic of Trinidad • Since 2010, 4,500 repair and maintenance
and Tobago is a mature democracy. We are projects have been undertaken on our nation’s
strengthening this democracy as we put in place schools;
a set of constitutional principles relating to the • At present, 67 schools are under construction;
terms of office of Prime Ministers, to the recall of
• the Fair-Share programme has been increased
parliamentarians and to run-off elections. We are
by 50.0 percent since 2010;
ensuring that the country’s prosperity is equitably
distributed among all our citizens. We are also • the soon-to-be commissioned National Aquatic
ensuring that our citizens continue to thrive in an Centre, the National Cycle track and the National
environment of safety and security. Tennis complex will catalyse competitive sporting
teams and sport tourism;
As we broaden and deepen our major economic
sectors, commercial opportunities are emerging
• the airlift to Trinidad and Tobago is being • surgical services, including cataract and CT/
expanded, building on the services now being MRI scans are now being provided to patients
provided by Condor Airlines and Apollo Airlines to who are on the listed services for a minimum of 3
Tobago and Jet Blue to Port of Spain; months; in the first month of the programme, June
• domestic food inflation is now running at a rate of 2014, 105 surgeries have been performed;
3.5 percent in the first 6 months of 2014, the lowest • The number of rig days in the energy sector has
in 21 years; increased from 1,132 in 2010 to 2,485 in 2013;
• new Procurement legislation will bring to public • The student participation rate in tertiary education
sector contracts confidence-inducing fair, has increased from 42 percent in 2010 to 65
efficient and transparent procedures; percent in 2014. We have surpassed our target of
• the number of serious crimes has been significantly 60.0 percent;
reduced; • The minimum wage which was $9.00 per hour in
• the Childrens’ Life Fund is fully operational and 2010 has been increased to $15.00 per hour; and
is providing timely and needy assistance to all • The VAT backlog owed to businesses which
applicants; amounted to over $5.0 billion in 2010 has been
• 75,000 laptops have been provided and laptops substantially reduced and we anticipate that the
will continue to be provided to all incoming entire amount now outstanding will be settled by
students to secondary schools; the end of the new fiscal year.
• emergency relief assistance has been provided Madam Deputy Speaker, the welfare of our State
to 750 households affected by severe weather is being safeguarded and we are convinced that
conditions, including flooding; this Budget will continue to consolidate our vision of
a stronger, fairer and smarter Trinidad and Tobago.
• dialysis treatment is now virtually free to the
public through the public and private health- Madam Deputy Speaker, I commend this Budget to
care institutions; this Honourable House and I beg to move.