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Govt must cut public service, increase utility rates

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daring dragoon
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Govt must cut public service, increase utility rates

Postby daring dragoon » February 18th, 2021, 5:46 am

The T&T economy is in deep trouble and the Finance Minister cannot avoid cutting the size of the public service and increase utility rates.

In a devastating critique of the government’s economic performance, economist Dr Terrence Farrell said the country is running out of time to take strong action to live within our means.

“So absent a miracle, there is no way that the level and composition of government expenditure cannot not now be addressed; and that will involve reducing head-count in the public service, closing state enterprises, and increasing rates for water, electricity, and transportation. As an economist and a citizen, I get no joy from stating this. But the reality is that we will have to come to learn to live within our means,” Dr Farrell told the Business Guardian via email on Tuesday.

The former Deputy Governor of the Central Bank said he was not surprised by the minister’s revelation that the country was now borrowing money to pay public servants salaries.

He said those who understand what is happening in the economy and paid attention to the budget presentation recognised immediately that the revenue projections were extremely optimistic and therefore all the risk in respect of the budget deficit was to the downside.

He said: “There seemed to be a curious notion that the non-energy economy and hence non-energy revenues are completely independent of energy sector revenues, which is not correct.”

The senior economist admitted that the country was now running out of fiscal space to make the changes to the structure of the economy that is required.

“As I have maintained from the outset in 2015 in my occasional commentaries, the critical constraint is and has been the external account, the balance of payments. That is where the shocks emanate, and that imbalance is what needs to be addressed, first and foremost. The fiscal deficit derives from the collapse of energy sector revenues, due to falling prices as in 2015, and due to falling production, as obtains today.

“We have failed to address what I believe is a structural imbalance in the external accounts because it has been represented as a cyclical downturn, and as a result we have allowed the foreign exchange reserves to decline far too far and resorted to external borrowing and HSF drawdowns.”

The economist rubbished the possibility of a “soft landing” as a “delusion and simply bad policy.”

He pointed out that former Prime Minister George Chambers elected to do that in 1982-1986 with disastrous results.

He said, “Lengthening the ‘glide path’ to adjustment of the external and fiscal imbalances just uses up scarce foreign exchange and fiscal resources (eg transfers and subsidies paid out) which will never come back. Import cover is a shorthand, but potentially misleading, indicator of reserve adequacy, made more so by the informal exchange controls we have introduced since 2016.

“The government was advised back in 2015 and in 2016 to adjust quickly, let the Central Bank use exchange rate adjustment proactively to eliminate exchange rate over-valuation, eliminate immediately all the fuel subsidies, and restructure and reform the portfolio of state enterprises.”

Dr Farrell noted that the World Bank advised further on public expenditure reforms. The EDAB also counselled separation of the HSF so that the Heritage component could be protected and used for long-term development and transformation not, as now, to pay public service salaries and the IMF’s reports supported these views and recommendations as well.

“So we are seeing now a replay of Chambers’ policy mistakes, coupled with a puzzling indifference or even hostility to advice, whatever the provenance of that advice, and a delusional view that the energy sector will turnaround and deliver us from collapse. But when critical decisions are postponed and the can repeatedly kicked down the road, the eventual reckoning becomes all the more difficult and painful as we saw in the 1987-1992 period.” Farrell warned.

Dr Farrell said the real questions are: how do we develop and transform this economy, and how do we maximise growth which is ultimately the way to reduce poverty and sustainably increase wealth? How we choose to answer those questions should then define the role of the government.

He noted that for the last 50 years, the Government, gifted with oil and gas revenues, has seen itself as the “prime mover” in the economy. He said what it has done instead is, through transfers and subsidies, including a subsidised exchange rate, fostered dependency throughout the economy, and sidelined or ignored the private sector.

“That is why the productive sectors—agriculture, manufacturing, tourism—have not performed, and why lamentably, there are now apparently 90,000 public servants, not counting those ensconced in the many state enterprises and statutory bodies. There is really no aspect of fiscal policy that is driving economic growth and development.

He said what we have as “budgetary policy” is an annual exercise in bookkeeping or “arithmetic” as Lloyd Best used to say.

“And even the numbers are misleading because government continues to use cash accounting which allows it to simply not pay VAT refunds and other payables, delay wage negotiations, and then claim a misleading budgetary outturn, which of course would be contradicted by proper accrual accounting.” Farrell lamented.

He said if there are strategies for growth he does not know what they are. The economist asked what has become of the Roadmap to Recovery?

He pointed to the continued problem of the quality of economic data available for decision making as being terribly deficient.

Dr Farrell told the Business Guardian “Our unemployment data (and unemployment is a lagging indicator) are almost two years out of date, not to mention other key labour market indicators (wage rates, productivity, etc.) which are important in any modern economy.

“We have no national income accounts; we don’t know what the investment rate is, and where in the economy investment is taking place; we don’t know the domestic savings rate; we can say nothing about consumption.

“Key data on fiscal operations and on trade are reported with unacceptably long lags. The detailed balance of payments reports are also dated.

“Ask yourself: how would you feel to be in a plane high up in the air with a pilot who doesn’t know where he is or how high, how fast the plane is going, or how much fuel he has left. That’s where we are in terms of the data supporting economic management here today.”

He said judging by the quality of the presentations in the last and previous media conferences, he is deeply worried about the quality of technical expertise available to the Finance Minister and the advice and support he is getting internally.


thank god minister imbutt large and incharge yes. he dont have to listen to other failed minister of finance. if he cut govt workers and close ministries and state enterprise and raise prices for water,gas,food,electricity he will be putting the final nail in pnm coffin. when NAR do the sheit like add VAT that was the end of all them until a-hole panday bring back robbie, dooks,boe etc from the grave and they buss he throat after. Good thing this minister is he own man.

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Re: Govt must cut public service, increase utility rates

Postby matr1x » February 18th, 2021, 6:32 am

The price of unemployment is far higher.

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Re: Govt must cut public service, increase utility rates

Postby Redman » February 18th, 2021, 7:28 am

They vote NAR out and blame VAT.

No one repealed it.

We were not ready to do what is necessary on the economy.

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Re: Govt must cut public service, increase utility rates

Postby daxt0r » February 18th, 2021, 7:37 am

Ah next glowing review of short man impsbutt, but grateee is d PNM, this is what allyuh dunce vote for rite lol, ah sure allyuh tuner economists go say black man fightin black man or UNC hadda hadda hadda, but d man ah failure just like d whole party lol.

What did he do? Instead of tackling head-on the need to adjust our spending to meet the reality of our situation and move quickly to transform the economy, he spent five years being a shop keeper, cutting here and there and blaming the UNC for our hardship.
Not once has Imbert or this government owned the economy. It has been a case of pure smartmanism, blaming the former government and now the COVID-19 pandemic.

The structural problems we face as a country are not related to the pandemic but are completely based on our reluctance to take decisive action to ensure value for money and investment into the future of the economy.
When Imbert took up the position of Finance Minister the country’s total debt was $84.1 billion. By November last year, it had risen to $101.1 billion according to the Central Bank of T&T.
Public debt as a percentage of GDP has moved from 53.9 per cent to over 80 per cent under Imbert. This massive increase had been happening prior to COVID-19 because by 2019 it had gone up 10 percentage points. No amount of smoke and mirrors can hide that reality.
It does not take into account the $15 billion he has over the years taken out of the Heritage and Stabilisation Fund.

When Imbert took office in 2015 the per capita gross domestic product was US$18,484 that had fallen to US$17,370 by 2018. The country’s official foreign reserves have fallen from US$10 billion to just about US$7 billion.

With the exception of the inflation rate, almost every economic indicator was in decline prior to the COVID-19 pandemic. Beyond the raw numbers the minister’s proclivity to be economic with the truth does not inspire confidence.
He has consistently been wrong in his assumptions particularly on the oil and gas sector. Imbert with the backing of the Prime Minister, has tried to shut down anyone and any institution that dare have a view that is at variance with theirs.
We can only remember the scurrilous attack on economists, particularly Marla Dukharan seeking to suggest that there is some kind of political motive in their analysis.
He has never apologised to the Parliament for his claims of natural gas production to average 3.8 bcf/d in 2019, even though anyone who knew anything about the industry knew this was wrong and would hurt government’s expected revenue.

Imbert’s lack of candidness makes it difficult to believe what is real from what is a smokescreen.
Another shortcoming of the minister is his unwillingness to listen to advice. From all reports he did all he can to frustrate the work of the economic development board.
His advisers at the Ministry of Finance have left him. Therefore, the engineer-cum-Finance Minister is doing it with little high-level support. It might be good for your ego but not for the country.
So we have established that the minister has failed in all the crucial areas. For him to come now and seek to tell us the truth about revenue generation and blame it on COVID is to play smart with foolishness.

He has been able to reduce the overall size of the budget by taking some decisions that reduced transfers and subsidies, particularly on the fuel subsidy which he has now removed.
But Imbert has not dealt with the over-valued exchange rate, he has raided the Heritage and Stabilisation fund.

Imbert has not seen one year of growth under his tenure. He has not implemented the Roadmap to Recovery report. He has not set this country on the path to sustainability. Imbert has simply failed!
As a country and as the party of Williams and Mottley surely the PNM could do better. We deserve better than Imbert!

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Re: Govt must cut public service, increase utility rates

Postby adnj » February 18th, 2021, 7:49 am

daring dragoon wrote:
That is why the productive sectors—agriculture, manufacturing, tourism—have not performed.


What was not mentioned fully was the condition and impact of the services sector on the economy. In developing economies, agriculture, tourism and manufacturing play a much less significant role in GDP growth in comparison.

It is entirely possible to export design, IT, communications, and financial services.

Image



Image

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Re: Govt must cut public service, increase utility rates

Postby Stoick » February 18th, 2021, 8:12 am

Step 1. Fire current finance minister. Replace with someone with ideas for revenue generation, and who will not just tread water in our current muddy quagmire.

I have no problem with an engineer as a finance minister, because they are practical people and would most likely do an excellent job with scarce resources. The problem is that Imbert is not a real engineer...

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Re: Govt must cut public service, increase utility rates

Postby KM_2NR » February 18th, 2021, 9:54 am

The public service barely holding on right now , things will get worst before they get better.

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Re: Govt must cut public service, increase utility rates

Postby elec2020 » February 18th, 2021, 10:44 am

Dr Terrence Farrell. I had the pleasure of watching him present and discuss some contentious topics in some conferences in recent years. the guys is sooooo intelligent. a shame that he was not taken on seriously while he was at the economic advisory board. nothing he said imo is wrong. its clear that the strategy has been to await better energy prices. it worked for them a bit in 2018/19 when oil prices were recovering. but when saudi arabia fell out with russia and then the whole covid situation. energy prices just plummeted. so we back to 2015 all over again. waiting till maybe 2024 i would say for energy prices to recover. not keeping in mind that countries pushing full steam ahead with climate change initiatives like making it illegal for dealerships to sell fuel powered vehicles by set dates (i think the uk said 2030 and japan said 2033 or 2035). we need to find a new sector to generate foreign exchange to help defend ourselves better from these balance of payment shocks (which while being inevitable will be more serious when u relying largely on one sector). sigh. it is what it is. and the roadmap to recovery is bs. it is predicated on construction being the driver for economic recovery. since when construction generates foreign exchange. i didn't know u can ship over highways. stupidity to the highest level

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Re: Govt must cut public service, increase utility rates

Postby Rovin » February 18th, 2021, 11:03 am

govt & govt workers must do their work effectively & efficiently without so much wastage

also stop teefin out d treasury & blaming d previous govt for ur current failures ....

:agrue:

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Re: Govt must cut public service, increase utility rates

Postby Dizzy28 » February 18th, 2021, 11:12 am

On the utility rate side WASA was before the JSC this week and said they need a realistic metered rate. One that will encourage people to want to conserve water.

https://www.tv6tnt.com/news/7pmnews/was ... 4fec9.html

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Re: Govt must cut public service, increase utility rates

Postby Computerman » February 18th, 2021, 11:12 am

"The Democratic Way" overrides sensible economics every time.
"Economic Democracy" on the other hand could save us all.

:roll: nevermind
:drinking: carry on

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Re: Govt must cut public service, increase utility rates

Postby DMan7 » February 18th, 2021, 11:42 am

Cutting employment and increasing taxes / utility rates makes absolutely zero sense. Once you set a precedent that these things can done then they will believe they can keep taking these measures to help the economy and they will always be doing that when the economy is in jeopardy and it will ALWAYS be in jeopardy which means that these aren't the reasons for it but something else entirely most likely many years / decades of poor management / corruption taking place in alot of sectors of the economy especially where revenue generation takes place.

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Re: Govt must cut public service, increase utility rates

Postby Habit7 » February 18th, 2021, 11:51 am

It is easy to attack the individual or the party, but the problem T&T facing now are accumulated over different govts and whoever is in govt or wants govt, needs to make the tough decisions.

TT govt is too big, meaning it is too involved in daily market forces. Too many subsidies, welfare and prolong incentives have created artificial market forces that now cannot be sustained because external factors such are O&G prices and world travel have not kept up. And even now that O&G prices are climbing, our production is flat because we have at least a year again until major projects come on stream.

This govt made the bold claim that they not cutting the public service and they haven't. Barbados had no other choice but do it and sent home up to 25%. Manning admin agreed to start cutting the fuel subsidy, Kamla admin agreed as well, the Rowley admin is finally doing it totally and there are complains from both sides. Petrotrin was restructured and complains from both sides. T&TEC hasn't made a profit since 2011 and in 2014 they were going to raise rates but it wasn't politically expedient so it was passed on to 2018, that too was still too close to elections, now we have no choice. WASA was trimmed under Manning, expanded again under Kamla and now they have to both to be trimmed, rate increased and install metering. BWIA was restructured in 2008 and began making a profit, made some acquisitions and was making a loss, finally it was doing good recently after trimming a lot of fat and then covid-19 hit.

The constant issue is that once govt allows for the market to balance and set the prices it would moderate the use and allow for less need to subsidise and let the money go to more needed things. A smaller public service would allow for more efficiency by force but a bloated one will just perpetuate the problem. A stable TTD is allowing for low inflation but the inaccessibility of USD is draining our reserves. Cheap water and electricity is allowing for waste and inefficiency.

Where the politics come in is which party is willing to risk the popularity and make the tough decisions. I applaud the PNM for what was finally done to Petrotrin to create profitable Heritage and Paria, BWIA to profitable CAL and totally removing the fuel subsidy while keeping inflation low.

But can PNM or UNC cut the public service, allow utilities to be set to market prices, only allow GATE for programs that are needed, cut welfare or have ppl being weaned off, cut excessive make-work programs, cut subsidies on the air and sea bridge, have toll roads to fund road maintenance?

Everybody wants their party in power but not willing to sacrifice so that country has a better future. They want some super PM with super ministers to stop crime and grow the economy all without they themselves being demanded to do anything.

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Re: Govt must cut public service, increase utility rates

Postby j.o.e » February 18th, 2021, 11:56 am

Habit7 wrote:It is easy to attack the individual or the party, but the problem T&T facing now are accumulated over different govts and whoever is in govt or wants govt, needs to make the tough decisions.

TT govt is too big, meaning it is too involved in daily market forces. Too many subsidies, welfare and prolong incentives have created artificial market forces that now cannot be sustained because external factors such are O&G prices and world travel have not kept up. And even now that O&G prices are climbing, our production is flat because we have at least a year again until major projects come on stream.

This govt made the bold claim that they not cutting the public service and they haven't. Barbados had no other choice but do it and sent home up to 25%. Manning admin agreed to start cutting the fuel subsidy, Kamla admin agreed as well, the Rowley admin is finally doing it totally and there are complains from both sides. Petrotrin was restructured and complains from both sides. T&TEC hasn't made a profit since 2011 and in 2014 they were going to raise rates but it wasn't politically expedient so it was passed on to 2018, that too was still too close to elections, now we have no choice. WASA was trimmed under Manning, expanded again under Kamla and now they have to both to be trimmed, rate increased and install metering. BWIA was restructured in 2008 and began making a profit, made some acquisitions and was making a loss, finally it was doing good recently after trimming a lot of fat and then covid-19 hit.

The constant issue is that once govt allows for the market to balance and set the prices it would moderate the use and allow for less need to subsidise and let the money go to more needed things. A smaller public service would allow for more efficiency by force but a bloated one will just perpetuate the problem. A stable TTD is allowing for low inflation but the inaccessibility of USD is draining our reserves. Cheap water and electricity is allowing for waste and inefficiency.

Where the politics come in is which party is willing to risk the popularity and make the tough decisions. I applaud the PNM for what was finally done to Petrotrin to create profitable Heritage and Paria, BWIA to profitable CAL and totally removing the fuel subsidy while keeping inflation low.

But can PNM or UNC cut the public service, allow utilities to be set to market prices, only allow GATE for programs that are needed, cut welfare or have ppl being weaned off, cut excessive make-work programs, cut subsidies on the air and sea bridge, have toll roads to fund road maintenance?

Everybody wants their party in power but not willing to sacrifice so that country has a better future. They want some super PM with super ministers to stop crime and grow the economy all without they themselves being demanded to do anything.


Couldn’t have said it better.

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Re: Govt must cut public service, increase utility rates

Postby death365 » February 18th, 2021, 12:20 pm

Habit7 wrote:It is easy to attack the individual or the party, but the problem T&T facing now are accumulated over different govts and whoever is in govt or wants govt, needs to make the tough decisions.

Everybody wants their party in power but not willing to sacrifice so that country has a better future. They want some super PM with super ministers to stop crime and grow the economy all without they themselves being demanded to do anything.


we, the collective Republic of Trinidad and Tobago, since "freedom" independence dont understand we are in charge of our selves - so we blame everything and everybody else and only "they" can solve it for we.

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Re: Govt must cut public service, increase utility rates

Postby Sundar » February 18th, 2021, 12:26 pm

Cut? where? Budget Division severely under staffed. Forced to hire retires on contract> more costly. fix the Broken Systems. Wth. Recover revenue lost from corruption. Millionaire Ministers need their salaries? Steups. Nah lewe cut the public servants who struggling already.

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Re: Govt must cut public service, increase utility rates

Postby Habit7 » February 18th, 2021, 12:36 pm

Sundar wrote:Cut? where? Budget Division severely under staffed. Forced to hire retires on contract> more costly. fix the Broken Systems. Wth. Recover revenue lost from corruption. Millionaire Ministers need their salaries? Steups. Nah lewe cut the public servants who struggling already.

A simple thing like digitisation of govt services will eliminate the need for many clerks whose job can be automated and backup by a centralised IT support system even over several ministries. A good example is in the licensing office where you can conduct several services online and pay via VISA debit or credit card eliminating for several cashiers who need start an hour late and leave an hour early to sum up.

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Re: Govt must cut public service, increase utility rates

Postby DMan7 » February 18th, 2021, 12:39 pm

In other words the problem is a systemic issue and cutting staff or increasing utility bills is at the lower end of the system spectrum and would only serve to temporarily resolve the problem. In a few years time the same thing would be required again (Cutting Staff and increasing utility) as the same problems will be afflicting the system. A top down approach needs to be taken to resolve these issues not bottom up and once a precedent has been set to cutting staff and increasing utility as a way to get ourselves out of these problems then they won't stop doing it.

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Re: Govt must cut public service, increase utility rates

Postby Greenday » February 18th, 2021, 12:45 pm

Habit7 wrote:
Sundar wrote:Cut? where? Budget Division severely under staffed. Forced to hire retires on contract> more costly. fix the Broken Systems. Wth. Recover revenue lost from corruption. Millionaire Ministers need their salaries? Steups. Nah lewe cut the public servants who struggling already.

A simple thing like digitisation of govt services will eliminate the need for many clerks whose job can be automated and backup by a centralised IT support system even over several ministries. A good example is in the licensing office where you can conduct several services online and pay via VISA debit or credit card eliminating for several cashiers who need start an hour late and leave an hour early to sum up.


Totally agree with this , government workers brought this on themselves.

All government cash services should be done on line rather than deal with a casher or clerk that has an attitude problem .

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Re: Govt must cut public service, increase utility rates

Postby Sundar » February 18th, 2021, 12:56 pm

Greenday wrote:
Habit7 wrote:
Sundar wrote:Cut? where? Budget Division severely under staffed. Forced to hire retires on contract> more costly. fix the Broken Systems. Wth. Recover revenue lost from corruption. Millionaire Ministers need their salaries? Steups. Nah lewe cut the public servants who struggling already.

A simple thing like digitisation of govt services will eliminate the need for many clerks whose job can be automated and backup by a centralised IT support system even over several ministries. A good example is in the licensing office where you can conduct several services online and pay via VISA debit or credit card eliminating for several cashiers who need start an hour late and leave an hour early to sum up.


Totally agree with this , government workers brought this on themselves.

All government cash services should be done on line rather than deal with a casher or clerk that has an attitude problem .

I totally agree with online payments. Them stink attitude ppl could go yes, but there are diligent workers in the public service as well so don't accuse the entire system if you not in it to see it.

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Re: Govt must cut public service, increase utility rates

Postby Ben_spanna » February 18th, 2021, 1:35 pm

Rovin wrote:govt & govt workers must do their work effectively & efficiently without so much wastage

also stop teefin out d treasury & blaming d previous govt for ur current failures ....

:agrue:

Thats a good one, Efficiently! LMAO- we all know that the PSC workers reach to wuk late, then eat brekfass, then leave early for lunch and tek 2 hours, then want to leave early, and all during that time you dotn dare disturb them when they on facebook.

Fire all dey MC!

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Re: Govt must cut public service, increase utility rates

Postby Devourment » February 18th, 2021, 1:57 pm

adnj wrote:
daring dragoon wrote:
That is why the productive sectors—agriculture, manufacturing, tourism—have not performed.


What was not mentioned fully was the condition and impact of the services sector on the economy. In developing economies, agriculture, tourism and manufacturing play a much less significant role in GDP growth in comparison.

It is entirely possible to export design, IT, communications, and financial services.

Image



Image


Yes and look at those lab.tt people, we could develop an offshore IT, Data Sci, Software Development industry easily. Financial services as well, comms yes, and many other markets.

We're a fairly educated English speaking country right on the US's doorstep, furthermore, we have tonnes of educated Venezuelans who can be used as human resources for SA and LA markets.

Agriculture, Tourism and manufacturing all have a strong place here too.

If the oil money hadn't made us lazy and complacent we could have been like Singapore.

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Re: Govt must cut public service, increase utility rates

Postby Redress10 » February 18th, 2021, 1:59 pm

Sundar wrote:
Greenday wrote:
Habit7 wrote:
Sundar wrote:Cut? where? Budget Division severely under staffed. Forced to hire retires on contract> more costly. fix the Broken Systems. Wth. Recover revenue lost from corruption. Millionaire Ministers need their salaries? Steups. Nah lewe cut the public servants who struggling already.

A simple thing like digitisation of govt services will eliminate the need for many clerks whose job can be automated and backup by a centralised IT support system even over several ministries. A good example is in the licensing office where you can conduct several services online and pay via VISA debit or credit card eliminating for several cashiers who need start an hour late and leave an hour early to sum up.


Totally agree with this , government workers brought this on themselves.

All government cash services should be done on line rather than deal with a casher or clerk that has an attitude problem .

I totally agree with online payments. Them stink attitude ppl could go yes, but there are diligent workers in the public service as well so don't accuse the entire system if you not in it to see it.


Why not automate what we can automate and convert the remaining staff into some sort of security role or legal administration to improve the crime situation?

What is more valuable to the country? A cashier or another body to patrol somewhere?

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Re: Govt must cut public service, increase utility rates

Postby adnj » February 18th, 2021, 2:01 pm

Devourment wrote:
adnj wrote:
daring dragoon wrote:
That is why the productive sectors—agriculture, manufacturing, tourism—have not performed.


What was not mentioned fully was the condition and impact of the services sector on the economy. In developing economies, agriculture, tourism and manufacturing play a much less significant role in GDP growth in comparison.

It is entirely possible to export design, IT, communications, and financial services.

Image



Image


Yes and look at those lab.tt people, we could develop an offshore IT, Data Sci, Software Development industry easily. Financial services as well, comms yes, and many other markets.

We're a fairly educated English speaking country right on the US's doorstep, furthermore, we have tonnes of educated Venezuelans who can be used as human resources for SA and LA markets.

Agriculture, Tourism and manufacturing all have a strong place here too.

If the oil money hadn't made us lazy and complacent we could have been like Singapore.
No disagreement here.

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Re: Govt must cut public service, increase utility rates

Postby teems1 » February 18th, 2021, 3:01 pm

j.o.e wrote:
Habit7 wrote:It is easy to attack the individual or the party, but the problem T&T facing now are accumulated over different govts and whoever is in govt or wants govt, needs to make the tough decisions.

TT govt is too big, meaning it is too involved in daily market forces. Too many subsidies, welfare and prolong incentives have created artificial market forces that now cannot be sustained because external factors such are O&G prices and world travel have not kept up. And even now that O&G prices are climbing, our production is flat because we have at least a year again until major projects come on stream.

This govt made the bold claim that they not cutting the public service and they haven't. Barbados had no other choice but do it and sent home up to 25%. Manning admin agreed to start cutting the fuel subsidy, Kamla admin agreed as well, the Rowley admin is finally doing it totally and there are complains from both sides. Petrotrin was restructured and complains from both sides. T&TEC hasn't made a profit since 2011 and in 2014 they were going to raise rates but it wasn't politically expedient so it was passed on to 2018, that too was still too close to elections, now we have no choice. WASA was trimmed under Manning, expanded again under Kamla and now they have to both to be trimmed, rate increased and install metering. BWIA was restructured in 2008 and began making a profit, made some acquisitions and was making a loss, finally it was doing good recently after trimming a lot of fat and then covid-19 hit.

The constant issue is that once govt allows for the market to balance and set the prices it would moderate the use and allow for less need to subsidise and let the money go to more needed things. A smaller public service would allow for more efficiency by force but a bloated one will just perpetuate the problem. A stable TTD is allowing for low inflation but the inaccessibility of USD is draining our reserves. Cheap water and electricity is allowing for waste and inefficiency.

Where the politics come in is which party is willing to risk the popularity and make the tough decisions. I applaud the PNM for what was finally done to Petrotrin to create profitable Heritage and Paria, BWIA to profitable CAL and totally removing the fuel subsidy while keeping inflation low.

But can PNM or UNC cut the public service, allow utilities to be set to market prices, only allow GATE for programs that are needed, cut welfare or have ppl being weaned off, cut excessive make-work programs, cut subsidies on the air and sea bridge, have toll roads to fund road maintenance?

Everybody wants their party in power but not willing to sacrifice so that country has a better future. They want some super PM with super ministers to stop crime and grow the economy all without they themselves being demanded to do anything.


Couldn’t have said it better.


It goes both ways.

You can't ask the country to pay full price because money is running low while still wasting

1) 850m USD bullet payments for Petrotrin
2) 218m USD due in 2022
3) Rapid Rail feasability study cost: 500m TTD
4) 6m TTD to salvage firetruck worth 1m
5) 20.2m TTD to Al Rawi per year for an empty building

And many more. Note that these are just wasted monies.

If we were to look at the actual costs for paving a km of road, or building the Curepe interchange, the tenders which they get are beyond exorbitant because it is easy money filtering back to the financers.

You can't have your cake and eat it.

Either you run the country efficiently and transparent, or you subsidize the people because of the wheeler dealing.

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De Dragon
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Re: Govt must cut public service, increase utility rates

Postby De Dragon » February 18th, 2021, 3:13 pm

Don't you love how Habit7 and PantyMan Plastic Bag conveniently embrace collective responsibility?
PantyMan Plastic Bag was actually arguing that in 5 years from 2010-2015 the PP wrecked the economy single- handedly. It appears that prior to that, everything was perfect :roll:
Imbert facking up royally right before our very eyes, and these clowns still find it necessary to mount a full-throated defence, even after Impsy himself has admitted abject failure, and that he lied to us. Thankfully, only LFDRFD PNM clowns like Pornsie and Panty take that chain up :lol:

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teems1
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Re: Govt must cut public service, increase utility rates

Postby teems1 » February 18th, 2021, 3:33 pm

De Dragon wrote:Don't you love how Habit7 and PantyMan Plastic Bag conveniently embrace collective responsibility?
PantyMan Plastic Bag was actually arguing that in 5 years from 2010-2015 the PP wrecked the economy single- handedly. It appears that prior to that, everything was perfect :roll:
Imbert facking up royally right before our very eyes, and these clowns still find it necessary to mount a full-throated defence, even after Impsy himself has admitted abject failure, and that he lied to us. Thankfully, only LFDRFD PNM clowns like Pornsie and Panty take that chain up :lol:


It's not that he's wrong, it's just looking at it from a biased point of view..

Every time the financers, friends and 1% need to fatten their pockets, there is always money.

8.8m for bringing in led bulbs. No problem.

When it's time for the taxpayers to get something, tighten your belt. Subsidies are one of the few places many people see a return on their tax dollars.

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Re: Govt must cut public service, increase utility rates

Postby Redress10 » February 18th, 2021, 3:48 pm

That is because gov't in Trinidad is a cabal.

Trump can run for President of the USA without republican party approval. He just needs the popular party vote. In TT no one could run for PM without the consent of the UNC or PNM party executives. These people are usually invited into the party via reference. It is not open to the general public.

Is Manning who invited Rowley into the PNM and introduced him to politics. Panday did the same for Kamla. That is why a relative unknown will hardly ever win any election.

The whole point of politics in TT is to control the economy. Remember the gov't in control of over 70% of all spending in the country. So of you control that then you basically control the largest econonic vessel in the country. Gov't ministers control billion dollar budgets with little to no accountability.

Their sole purpose in gov't is to do the bidding of their financiers who put them there. Is a bunch of lapdogs running the country who cyah wait to go to their financiers' homes so they could pat them on their head and say "nice doggy".

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Habit7
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Re: Govt must cut public service, increase utility rates

Postby Habit7 » February 18th, 2021, 4:19 pm

De Dragon wrote:Don't you love how Habit7 and PantyMan Plastic Bag conveniently embrace collective responsibility?
PantyMan Plastic Bag was actually arguing that in 5 years from 2010-2015 the PP wrecked the economy single- handedly. It appears that prior to that, everything was perfect :roll:

Not perfect but it was damn good
"Still, according to the World Bank, T&T enjoyed the highest Gross Domestic Product (GDP) per capita in Latin America and the Caribbean during the period 2000 to 2010."
https://www.guardian.co.tt/article-6.2. ... f8f8f560a1

Load beat up below

teems1 wrote:When it's time for the taxpayers to get something, tighten your belt. Subsidies are one of the few places many people see a return on their tax dollars.

Subsidies are almost 50% of our expenditure, personal taxes are nowhere near that as a percentage of our revenue. Govt earns most of its tax revenue from O&G companies and they are paying less and less every year. Nothing PNM or UNC could do to change that.

Redress10 wrote:Is Manning who invited Rowley into the PNM and introduced him to politics.

Rowley went up for elections in 1981, who told you Manning invited him into the PNM?

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Re: Govt must cut public service, increase utility rates

Postby Devourment » February 18th, 2021, 4:40 pm

What happened to Mannings' Eteck plans and Financial Center plans? Honestly, those were some good ideas that if continued by the PP and PNM would have been profitable today.

Enill and Ken Julien were the brains behind those initiatives and they honestly looked promising,

I recently had a meeting with Stuart Young's dad (nice guy), who severely criticized the current PNM's direction. He said it was only on the onus of the Economic Recovery plan, that interest in using IFC as an offshore financial hub restarted. But he said no priority was given to it, instead the priority was big projects like the Tobago Airport and new highways to Toco and Sangre Grande.

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