Trinidad and Tobago's

RISING SON

...can he deliver

Governing through consensus seems to be gaining the approval of the social parties, but will this continue when the nation's honeymoon with its new Prime Minister, Basdeo Panday, is over.

Finally the labour movement has broken out of its political drought in Trinidad and Tobago.

Headed by newly installed Prime Minister Basdeo Panday, the Government has received a lot of goodwill from the private sector because of its stated policy of conciliation and consensus for national development.

But, this is still the "honeymoon" and the journey will not be an easy one, especially with such a strong Opposition presence in Parliament.

A major challenge which will immediately face the new coalition Government is the development of a national plan to further stimulate the economy and maintain the growth that started over the past two years.

The first step to achieving this was taken by the Prime Minister when he re-assured the business community that its investments and programs will not be threatened by the new UNC/NAR Government.

Without doubt, that sector has legitimate concerns, for many of them were branded members of the elusive "parasitic oligarchy" when Panday was Leader of the Opposition.

Recognizing the anxiety that had pervaded the private sector, Panday quickly set about to allay their fears in one of his first meetings with foreign and local businessmen. He gave the assurance that the new Government will continue the economic reforms embarked upon by the previous administration.

"We will pursue all outstanding legislation, ensuring that what has already been passed by Parliament is proclaimed, and what is required to come before Parliament, does so. High on the priority list are the Investment Promotion Act, the Financial Services Act, the Companies Act, the Securities Exchange Bill, the Insurance Act and the Standards Act."

"Our strategy for the continued development of economy will be based on developing a consensus with the other major social partners-Business and Labour. We believe that a country which develops on the basis of consensus will see growth with social equity.

"This also implies a major focus on entrepreneurial development. Citizens must stop regarding entrepreneurial talents as being the right of specific groups in the society and realise that its attributes are extensively spread throughout. Therefore every effort will be made to enhance these skills and attitudes."

As an incentive for their support, Panday said Finance Minister, Brian Kuei Tung intends to "get the basics right," and will be re-examining the Government's finances for a further reduction in direct corporate and individual taxes.

"This government is not about alienating the business community nor about closing doors on private and foreign investment," he says.

Finance Minister Brian Kuei Tung also made similar overtures to the business community upon assuming his new office. "As a former businessman myself, I am aware of the significance of a facilitative business climate in creating and sustaining investor confidence in the economy," said Kuei Tung, after being sworn in as Minister.

"High on the Government's agenda is the speedy return to business promotion and development.

He promised a reform of the taxation system to "sustain the growth process, encourage a higher level of private sector investment, lighten the burden on individuals and establish an environment that is conducive to domestic savings and investment."

It is hoped that these will be spelt out in further detail when the government presents its budget for 1996, a document which would undoubtedly determine its fate as far as the electorate is concerned.

Nonetheless, the olive branch offered to the business sector has eased many a mind and Panday's repeated statements that his government is one of coalition, collaboration and consensus have encouraged discussion among the social groups - including labour.

The UNC manifesto, though scant in detail, does itemize those aspects of the economy on which the government intends to focus its attention. A more comprehensive plan for restructuring and sustaining development is expected to be presented by early January, when the National Budget for 1996 is delivered in Parliament.

The UNC manifesto also touches on other key areas including industry, energy, agriculture, tourism, foreign investment and small business. It outlines a plan to pursue a "balanced policy which emphasizes development of external and internal markets through proper incentives, infrastructure enhancement, technological development, and market research and development.

The intention is to develop other sectors of the economy so that Trinidad and Tobago would be able to move away from its dependency on oil. To achieve this, agriculture, manufacturing (medium and small scale) and the tourism sectors have been identified for special attention.

The plan for agriculture includes utilizing all arable land, forest and marine resources; organizing farmers into producer and marketing co-operatives; organizing a programme for land tenure reform and making State enterprise lands more easily available for cultivation.

Employment Plan

Agriculture Minister, Dr Reeza Mohammed, has gone even further by placing the development of the dairy industry and meat production high on his list of priorities. Mohammed said if properly supported by a secure developmental framework, both industries can become economically viable. He also promised action on the development of heavy infrastructure such as proper access roads for farmers to further the developmental process in the sector.

Following a long national history in agriculture, the sector became a forgotten one when compared with the rapid growth in the petro-chemical industry. Throughout the "oil boom years," Trinidad and Tobago imported its food from neighbouring islands. Farmers, as distinct from sugar cane farmers, for years have called for Government assistance in developing the sector.

Minister Mohammed, himself a graduate from and lecturer at the Department of Agriculture, University of the West Indies, knows the plight of the local farmers. Providing secure land tenure and establishing large agricultural co-operatives are two of the ways he plans to facilitate the development of the industry.

"This will give farmers a greater stake in the sector, as well as provide them with mechanisms to ensure its growth," he said.

Manufacturing has also been targeted for special attention and has been described by officials as one which has the potential to generate greater and more sustained employment.

As Minister of Trade and Industry, Mervyn Assam said Government intends to promote a labour intensive development programme particularly for young people.

"These programmes which will not require heavy injections of capital will certainly create hundreds, if not thousands of jobs.

"The focus," according to the Minister, "will not be on the large, capital intensive projects as were being pursued in the energy sector and benefited only one part of the island."

Just as his predecessor, Assam has recognized the need for foreign and local investment and will be developing an incentive plan for the sector.

"If you are going to attract investment, superior human resources or technology to our country, you have to offer a package of incentives that will be equal to or better than than those offered by other developing countries."

Sounds familiar? Well, former Minister of Finance Wendell Mottley, might say so. He might also say that the new government's plan for development does not deviate too far from the previous Government's plan.

In relation to small business development, the UNC manifesto talks about government playing a more pro-active role in accessing funding, marketing information, and risk analyses for the potential entrepreneur or investor.

The plan also suggests a more pro-active role for the Small Business Development Company (SBDC). It will be a "more dynamic performance-oriented and business conscious organisation with an outreach and practical approach. It would be appropriately managed and staffed and accountable to Parliament."

This is good news for the local entrepreneurs who are eager to set up their businesses. But some may argue that this may lead to a too liberal approach to lending and in the long-term there may be fewer success stories than failed businesses.

With great expectations for tourism, Government is depending on this industry to create enough employment opportunities to pull Trinidad and Tobago out of the oil and energy dependency.

There exists the potential to not only attract foreign visitors but to also encourage locals to "holiday at home."

Emphasis will not only be placed on hotel construction, but also on the development of inland and marine parks and nature trails, that is the development of eco-tourism.

While Tobago has traditionally been the centre of any tourism thrust, Trinidad will also be given special priority.

Yet, this in no way sums up the myriad of policies and programmes the government intends for economic development. Growth and development in industry and the energy sector have also been articulated.

For all intents and purposes, this new government does not appear to stray drastically from the road travelled by the former government, but it is still early in the day. The Prime Minister has stated though, that his government does not intend to assume the role of facilitator, as did its predecessor. Rather, it will seek to become part of the equation, with the option to redefine the X and Y variables.