Description
Madam Deputy Speaker, it gives me great pleasure to present to this Honourable House the fifth Budget of the Peoples Partnership Administration under the transformational leadership of our Prime Minister.
B U D G E T S T AT E M E N T 2 0 1 5
1 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
B U D G E T S T AT 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
GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO
B U D G E T S T AT E M E N T 2 0 1 5
2 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
B U D G E T S T AT E M E N T 2 0 1 5
3 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
CONT E NT S
1. Introduction 4
2. Economic Context and Performance 5
Medium-Term Outlook 6
Ease of Doing Business 7
Double Tax Agreements 7
Bankruptcy and Insolvency Legislation 7
Public Offering Programme 7
3. Economic Recovery-Oriented Environment 7
Securing Strategic Investors 8
Public-Private-Partnerships Programme 8
Financial Stability 9
Colonial Life Insurance Company Limited 9
Hindu Credit Union 9
Financial Regulation and Supervision 9
Capital Market 10
Manufacturing 11
4. Stimulating Growth and Investment 11
Financial Services 12
Tourism 12
Agriculture 13
Energy 14
Information and
Communication Technology 16
Major Infrastructure 16
Water and Waste Water Services 16
Historic Buildings 17
Highways 17
Office Accommodation 18
5. Building An Inclusive Society 19
Education 19
Early Childhood Care
and Education (ECCE) 19
Primary and Secondary 19
Tertiary 19
Health 20
Housing 21
Transport 22
Social Safety-Net Services 22
National Sports 23
6. Labour 24
7. Security and Public Order 25
8. Reform Agenda 26
Procurement 26
Constitutional Reform 26
Tax Administration 27
Commission on Gambling 27
Pensions 27
Mutual Fund Management 28
Heritage and Stabilisation Fund 28
9. Tobago House of Assembly
and Tobago Development 29
10. Fiscal and Other Measures 30
1. Manufacturing 30
2. Mutual Fund Industry 30
3. Heritage and Stabilisation Fund 30
4. Tax Administration 31
5. Capital Market:
Tax-deductible Bonds 31
6. Social Safety Net 31
7. Families of deceased
Security Personnel 31
8. Fair-Share Programme 31
9. Pensions 32
10. Agriculture 32
11. Road Usage 33
12. Hybrid and Electric-powered
Vehicles 33
13. Housing 33
14. Labour 33
11. Estimates of Revenue
and Expenditure: 2014-2015 34
12. Conclusion 35
B U D G E T S T AT E M E N T 2 0 1 5
4 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, it gives me great pleasure
to present to this Honourable House the fifth Budget
of the Peoples’ Partnership Administration under
the transformational leadership of our Prime
Minister, the Honourable Kamla Persad-Bissessar.
This Administration has traversed a very challenging
period over the past 4 years; but we have remained
resilient and strong.
Madam Deputy Speaker, as we have systematically
overcome the several challenges which had
confronted us, we are progressing with confidence
and optimism to a renewed mandate in 2015 for
a further 5 years. Indeed, the single-mindedness
and clarity of vision of our Honourable Prime
Minister have been essential in ensuring that our
economy returned to more inclusive, fair and
equitable growth. We are witnessing improving
living standards among all citizens.
We have in place policies which are extending a
caring hand to those who experience difficulties
and we are creating opportunities for all our
citizens to participate in our growing economy. This
financial year 2015 Budget Statement is formulated
around the theme: Empowering our People through
Sustained Economic Growth and Prosperity.
I wish to thank, for their selfless support, the
Honourable Vasant Bharath, Minister of Trade,
Industry, Investment and Communications and
Minister in the Ministry of Finance and the Economy
and the Honourable Rudranath Indarsingh, Minister
of State in the Ministry of Finance and the Economy.
Their guidance in developing our plans and
strategies for modernising the country has been
constructive and enlightening.
My other colleagues have also played critical roles
in charting our national agenda for improving the
welfare of the people of Trinidad and Tobago; and
of course this public policy agenda has also been
shaped by the several submissions which I received
by professional associations, non-governmental
organisations and concerned individuals
throughout the length and breadth of our country;
for these national insights I am extremely thankful.
Madam Deputy Speaker, I must also stress that
our plans and programmes could not have been
achieved without the professional advice and
unstinting support of the staff of the Ministry of
Finance and the Economy. I owe them a debt of
gratitude as they have worked assiduously, tirelessly
and beyond the call of duty in the preparation of
the documents which I have laid in this Parliament
today. These documents provide a comprehensive
overview of the performance of the Government
over the past year as well as details of revenue and
expenditure for 2015.
1 . I NT RODUCT I ON
B U D G E T S T AT E M E N T 2 0 1 5
5 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, our economy has
performed admirably in the face of the adverse
cumulative effects of the difficult external
environment and the turbulence in financial
markets brought about by the 2008-2009 global
financial crisis.
The spill-over impact was inevitable in the context of
our increasing economic and financial integration
into the world economy; but our strong economic
fundamentals provided a substantial buffer which
allowed this country to emerge very quickly from
the negative effects of that crisis.
We are now encouraged by the strengthening
recovery of the global economy. Economic
activity is gaining momentum and the International
Monetary Fund (IMF) in its July 2014 Outlook is
projecting an expansion of 3.4 percent in 2014 and
4.0 percent in 2015. While many economic and
geopolitical risks remain, these growth projections
for the global economy are good news for
emerging and developing countries.
Madam Deputy Speaker, the growth rate in most
Caribbean countries has been improving as several
economies which are more tourism-oriented are
benefitting from the higher levels of growth in
the United States as well as from the economic
recovery in the United Kingdom. We look to the
eventual turnaround of the Euro Zone area to add
a further boost to these economies.
In this context, Trinidad and Tobago will benefit from
the improving world and regional economy and
with our strong macro-economic fundamentals
and appropriate monetary policy we will be able
to shift our current growth rate to a higher and
more sustainable pace.
Madam Deputy Speaker, we have achieved
a great deal over the past 4 years and in a very
difficult environment:
• growth has been restored after 3 years of decline.
We have had in the period 2012-2014, 3 years
of positive economic growth, notwithstanding
extensive and prolonged maintenance activity
in the energy sector. The non-energy sector in
particular, has shown continued strength and
buoyancy;
• this economic growth is taking place in the
context of job creation and stable inflation rates.
In the period January – September 2013 the
unemployment rate averaged 3.6 percent and
the average for the year as well as for 2014 is
projected to maintain the same level.
The inflation rate had averaged 5.1 percent in
2013; but as at June 2014, the average rate has
fallen to 2.8 percent - the lowest in 10 years;
• the fiscal deficit is on course to meet our 2016
objective of bringing the fiscal accounts into
balance; notwithstanding the budgeted deficit
of $6.357 billion for fiscal 2014, a surplus of $1.967
billion had been realised as at the end of June
2014;
• public sector debt remains at a sustainable level
at 43.0 percent of Gross Domestic Product (GDP)
with the external debt service ratio remaining
in single digit; these debt ratios are within well-
established international benchmarks;
• the balance of payments remains robust with the
generation of consistent surpluses on the current
account and with steady flows of private direct
investment. As a result, gross official reserves
2 . E CONOMI C CONT E XT
AND PE RF ORMANCE
B U D G E T S T AT E M E N T 2 0 1 5
6 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
stood at US$10.0 billion in December 2013,
covering approximately 12 months of imports; by
July 2014, the gross official reserves had reached
US$10.2 billion;
• gross foreign direct investment has increased
robustly on an annual basis since 2010 and is
projected at US$3.3 billion for 2014;
• substantial financial buffers have been built up
to meet contingencies; apart from our healthy
official reserves, the Heritage and Stabilisation
Fund now amounts to US$5.6 billion;
• the rating agencies Standard and Poors, Moody’s
Investors Services and Caribbean Information and
Credit Rating Services Limited, have maintained
the country’s excellent investment grade ratings;
and
• access to international capital markets have
been facilitated by those ratings with Trinidad
and Tobago being able to raise in December
2013 a US$550.0 million 10-year Bond which was
10 times oversubscribed.
In short, as a nation, we are better off today than 4
years ago.
MEDI UM-TERM OUTLOOK
Madam Deputy Speaker, in the context of other
similarly-placed emerging and developing
countries our economic performance has been
excellent. Moreover, the foundation has been laid
for a sustainable recovery. From this position of
strength our economy is undergoing an important
transition. Over the medium-term 2015-2017, the
growth momentum is expected to be maintained
and the balance of payments is projected to
continue to generate surpluses and increasing
levels of reserves.
Madam Deputy Speaker, notwithstanding these
successes, we recognise that there are many
underlying issues which need to be addressed if we
are to sustain our growth momentum.
Having dealt with the issue of the return to growth
and the financial problems generated by the
failure of Colonial Life Insurance Company Limited
(CLICO) and Hindu Credit Union (HCU) we are
now turning our attention over the medium-term
to the reform measures necessary to transform our
economy.
B U D G E T S T AT E M E N T 2 0 1 5
7 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
EASE OF DOING BUSINESS
Madam Deputy Speaker, with our encouraging
medium-term economic outlook this Kamla
Persad-Bissessar-led Administration will continue to
facilitate a more conducive economic and business
environment to attract both domestic and foreign
investment. These investment inflows are key drivers
for financing sustainable growth and development.
The Government has also made substantial strides
in improving the regulatory environment for business
activities.
We have been reducing the administrative burden
on companies doing business in Trinidad and Tobago
as demonstrated by the improvement in our ranking
in the World Bank Group’s 2014 Doing Business Report.
This ranking has been improving consistently. In fact,
we envisage a higher ranking in the 2015 Report of
the World Bank; this notwithstanding, there remains
a number of challenges and it is our intention to
address these in a focused manner.
DOUBLE TAX AGREEMENTS
Madam Deputy Speaker, deeper external business
and economic relationships are being fostered.
We are continuing to negotiate Double Tax treaty
agreements, the latest one being with the Federal
Republic of Germany.
This treaty will be mutually beneficial to both
countries, especially since Trinidad and Tobago is
the third largest destination for German investment
in Latin America.
We have put a new team in place to address these
matters and over the next fiscal year we have
placed on the agenda negotiations for Double Tax
Treaty Agreements with several countries including:
Japan, United Kingdom, Luxemburg, South Korea,
and the Netherlands.
BANKRUPTCY AND INSOLVENCY
LEGISLATION
Madam Deputy Speaker, the work on the ease of
doing business has been further consolidated with
the May 26, 2014 proclamation of the Bankruptcy
and Insolvency Act, 2007. The proclamation with
accompanying regulations established the Office of
the Supervisor of Insolvency in the Ministry of Finance
and the Economy and allows for the treatment of
both corporate and individual bankruptcy. This is the
first major overhaul of this legislation in almost 100
years and it opens up the possibility of encouraging
corporate rehabilitation as an alternative to
liquidation. In this framework the flow of credit to the
economy will be expanded.
The role of the private sector as the driver of
growth is being consolidated as we continue
to build a competitive and efficient economy.
Entrepreneurship is being fostered on a number of
fronts, including Initial Public Offerings, the securing
of strategic partners for selective state enterprises,
and the utilisation of the public-private-partnership
model for delivering infrastructure and public
services.
PUBLIC OFFERING PROGRAMME
Madam Deputy Speaker, the Government’s Public
Offering Programme is under way. The Initial Public
Offering for First Citizens Bank Limited was successful
by any standard of measurement. The 48,000,000
shares on offer were 3.12 times oversubscribed by
over 12,400 applicants. The IPO has added more
than 8,000 new investors to the existing pool of equity
investors and the country is on the way to achieving
the public policy objective of the widest possible
participation of all citizens in share ownership.
3 . E CONOMI C RE COVE RY
- ORI E NT E D E NVI RONME NT :
B U D G E T S T AT E M E N T 2 0 1 5
8 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Despite the concerns expressed by the national
community with respect to the inordinate purchase
amount by one staff member of First Citizens and
which is now subject to an investigation by the
Trinidad and Tobago Securities and Exchange
Commission, the share price on September 5, 2014
was $35.96, some 63.5 percent higher than the
$22 price which prevailed at the date of listing on
September 16, 2013.
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
the shareholding of the Trinidad and Tobago NGL
Limited which company holds the 39.0 percent
shareholding of the National Gas Company in
Phoenix Park Gas Processors Limited.
This will be a historic event, being the first listing of
an energy stock on the local stock market. We
shall continue to spread share-ownership as widely
as possible among the population thereby giving
citizens a direct stake in industrial successes.
SECURING STRATEGIC INVESTORS
Madam Deputy Speaker, a consultant has been
engaged to prepare a Request for Proposals
for securing a strategic investor for The Vehicle
Management Corporation of Trinidad and Tobago
Limited. The engagement of consultancy services
to undertake a similar exercise for the National
Helicopter Services Limited is well underway.
These strategic investors will be required to bring
to the operations of those 2 companies new
capital, access to new markets and state-of-the-art
technology.
The Government is determined to improve the
operational efficiency and effectiveness as well
as the governance of our state enterprises. In
fact, in 2013, the state enterprise on a collective
basis generated profits of $7.6 billion and the
Caribbean Information and Credit Rating Services
Limited has already completed initial rating reports
for 2 enterprises: The Point Lisas Industrial Port
Development Company Limited and the National
Helicopter Services Limited.
It has also initiated review work for the Vehicle
Management Corporation of Trinidad and Tobago
Limited and National Flour Mills Limited. These
reviews will chart a course for greater efficiency and
effectiveness in our state enterprises. Further annual
reviews of these enterprises will be undertaken to
measure their progress and annually more state
enterprises will be added to the process as we
improve the operations of these companies.
PUBLIC-PRIVATE-PARTNERSHIPS
PROGRAMME
Madam Deputy Speaker, the introduction of public-
private-partnerships as a mechanism for accelerating
the installation of the requisite infrastructure in several
sectors has been under consideration for some
time. Progress was initially slow as we generated
the capacity within the Ministry of Finance and the
Economy to manage this initiative.
I am pleased to advise this Honourable House that
2 pilot projects in the health and education sectors
under a technical assistance programme provided
by the Inter-American Development Bank are now
in progress. The consultancy contracts are in place
for securing transaction advisors for 3 national
diagnostic centres and for 10 primary schools and
10 early childhood care and education centres.
I expect that by February 2015 the preferred
contractors for these projects will have been
secured. In October 2016 the diagnostic centres will
begin actual service delivery and in January 2017
the 20 schools will be ready for enrolment.
The Airports Authority of Trinidad and Tobago has
requested the International Finance Corporation,
the private sector arm of the World Bank Group,
to submit a proposal which will lead to improved
services at our 2 international airports; the Piarco
International Airport and the ANR Robinson
International Airport. As we build our capacity for
identifying and managing Public Private Partnership
projects, we will roll-out a range of infrastructure and
service-delivery projects which will provide attractive
business opportunities to potential investors.
B U D G E T S T AT E M E N T 2 0 1 5
9 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
FINANCIAL STABILITY
Madam Deputy Speaker, we have made substantial
progress in bringing stability to our financial system.
The issues surrounding CLICO and HCU have been
largely resolved, thereby re-establishing our long
record of financial stability which had under-pinned
our positive and robust growth rate for many years.
COLONIAL LIFE INSURANCE COMPANY
LIMITED
Our recent impressive economic outlook could not
have been achieved if we did not move aggressively
to repair our fiscal and financial balance sheets in
the aftermath of the collapse of CLICO. Government
quickly reformed the policy framework for addressing
the financial consequences of the CLICO crisis. The
new strategy was essential for strengthening private
sector confidence.
It has dealt effectively with investors in the short-term
investment products, more than 13,600 of whom
have become unit holders in the CLICO Investment
Fund, managed by the CLICO Trust Corporation.
Approximately 830 investors in the short-term
investment products did not accept the offer while
more than 1,160 non-resident bond holders have
advanced and are advancing their claims through
the machineries of the legal security commissions in
their respective countries.
Throughout this period of uncertainty, this
Government has ensured that the investments of
some 225,000 traditional policy holders have been
protected and assured. Indeed, CLICO has done
exceptionally well in terms of writing new business
while maintaining substantial traditional business
throughout the crisis. I will like to publicly commend
the Board, management and staff for their
commitment and hard work during the last 4 years.
Government is taking steps to recover the outlay
which became necessary to contain the crisis in
CLICO and the CLICO Investment Bank which
also impacted their parent company, CL Financial
Limited. To effect an orderly settlement of this debt,
Government has embarked on a medium-term
strategy to secure the return of the outlay of these
funds. This has informed the basic parameters of a
comprehensive Shareholders’ Agreement, a key
component of which is a proper restructuring of those
companies with proper governance practices in
what is left of the Group. We now await the outcome
of the Methanol Holdings arbitration. Following this, a
more detailed report will be provided.
Madam Deputy Speaker, I am pleased to state that
without this intervention we would have seen many
of the companies in the Group facing liquidation
with the attendant loss of jobs and other social and
economic hardships which generally accompany
such occurrences. The adverse experiences of
several advanced countries are testament to this
significant accomplishment.
HINDU CREDIT UNION
Madam Deputy Speaker, a second related
matter is the settlement of the debt to more than
147,700 shareholders and depositors of the Hindu
Credit Union. Approximately 18,000 shareholders
and depositors with holdings under $75,000 have
received $136.1 million in cash; 1,330 members
holding in excess of $75,000 have also received in
cash $99.0 million and 1,400 members will receive
bonds to the value of $340.0 million. The bond
issuance programme is due to commence early in
the new fiscal year.
As in the case of CLICO our intervention has
alleviated the substantial social and economic
hardship experienced by the shareholders and
depositors of this failed institution. We have now put
that crisis substantially behind us.
FINANCIAL REGULATION AND
SUPERVISION
Madam Deputy Speaker, the growth-oriented
environment is being anchored in a strong and
modern financial structure. Partly due to the
economic crises associated with the collapse
of CLICO and HCU, we are continuing to give
consideration to improving our existing financial
B U D G E T S T AT E M E N T 2 0 1 5
1 0 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
stability framework for mitigating systemic risk and
for applying heightened prudential standards for our
large and complex institutions.
A high-level Task Force on Integrated Financial
Regulation and Supervision, under the chairmanship
of an independent consultant, has undertaken
research and consultation to determine the most
feasible model for integrated financial regulation
and supervision in Trinidad and Tobago.
On September 3, 2014, I received the Report of the
Task Force which outlined the way forward for such a
financial stability framework. The recommendations
will inform the preparation of a new Green Paper
which will be sensitive to our stage of development
as well as to the expected evolution of the capital
market and the financial sector in the country.
CAPITAL MARKET
Madam Deputy Speaker, we have recently
strengthened the Securities Act 2012 to bring it in
line with international best practice, in particular on
prosecuting market misconduct and manipulation
as well as on measuring and evaluating risk exposure
in the securities industry.
This legislative updating will bring enhanced
market confidence which is not only critical for
financial development but also for growth and
development of the country. We shall soon be laying
in Parliament a revised Insurance Act which reflects
the deliberations of the Joint Select Committee of
Parliament which worked diligently on this legislation
over the past year. It has broad industry support and
is modelled on Canadian Law and includes a major
strengthening of regulatory capital.
Subsequent to the passage of this legislation, we
shall lay in Parliament a new Credit Union Bill with
international standards and best practices from
other jurisdictions which will transfer supervision of
credit unions from the Commissioner for Cooperative
Development to the Central Bank of Trinidad and
Tobago.
As our financial regulatory framework becomes all-
encompassing, the financial services industry will
continue to expand and become more diversified.
This evolution in regulatory control is facilitating
the work of the Trinidad and Tobago International
Financial Centre which is strengthening its capacity
to attract and bring into Trinidad and Tobago new
investors in the financial services industry.
We have also laid in Parliament the Miscellaneous
Provisions (Proceeds of Crime) Bill which significantly
strengthens our framework for Anti-Money
Laundering and Counter Terrorism Financing
activities.
Madam Deputy Speaker, saving bonds was once
an important investment instrument in Trinidad and
Tobago contributing to the funding of government
services.
Bond sales and purchases also facilitated the
development of the capital market bringing in small
investors who purchased bonds in much smaller
denominations than the traditional large investors.
The Government proposes to reactivate this niche
market with the introduction of a tax-deductible
savings bond — a confidence-inducing measure
targeting in particular young persons seeking to
save for the future as well as pensioners seeking a
better return on their investments.
Our increasing integration into the international
financial system is now being consolidated with
our participation in Euroclear which is one of the
principal clearing houses for Euro bonds and other
securities. The settlement and safe delivery of bonds
on behalf of local investors within Euroclear will help
to build the international credibility of Trinidad and
Tobago and give local investors improved access to
international capital markets.
B U D G E T S T AT E M E N T 2 0 1 5
1 1 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, technical work continues
on the 5 growth poles which we have established
in special and regional areas for spurring economic
growth and development and work is also taking
place on port rationalisation. The recently-
commissioned, Galeota Port, will provide significant
logistic support to the oil and gas industry in the
south-east region and in the process will generate
economic development and job creation.
In support of these growth-enhancing activities,
we are encouraging businesses and academic
researchers to collaborate on the stimulation of
innovation at the level of firms. For this purpose, we
have established an Innovation Fund capitalised
with $50.0 million to be utilised as matching grants
for the innovation needs of companies. We are
consolidating our new ranking as an innovation-
driven country, up from the efficiency-driven
country category as determined in the latest
Global Competitive Index Report.
Madam Deputy Speaker, I turn now to the progress
being made in key sectors of our economy.
MANUFACTURING
Madam Deputy Speaker, we are focusing on a
trade policy and strategy which has at its core the
diversification of our production base and export
markets. Our newest economic zone: the Tamana
InTech Park built with an investment of $2.2 billion is
leading the drive to attract high-value tenants who
will not only develop human capital but also create
high-quality and sustainable jobs.
Marketing has begun to attract investors in the
fields of medical care and health tourism. We have
agreed on the fiscal framework for the introduction
of a Tier Three Data Centre in the Park which will
position Trinidad and Tobago as a regional hub
for high-quality disaster data-recovery and a
production centre for local and regional planners.
The public policy agenda is being driven by 2
newly-mandated companies: invesTT and exporTT.
The goal of these 2 companies is to facilitate the
creation of competitive firms in the non-energy
manufacturing and service sectors. The existing
tax incentive infrastructure has been driving an
expanding manufacturing sector which now
comprises approximately 9.0 percent of gross
domestic product. The Government proposes to
provide incentives to develop the following new
sectors which we are targeting:
• firstly, our food and beverage industry which
has been expanding in both regional and
international markets. We propose to establish
a subsidy for testing services in order to assist our
manufacturers in covering such costs with a view
to meeting the quality requirements demanded
by international markets;
• next, the creative, arts and entertainment sector
which is now in export mode. We are moving
to strengthen these efforts. To this end, the
Government proposes to increase the rebate for
the use of local labour, in particular in the film,
fashion and music sub-sectors;
• thirdly, the maritime sector is being facilitated
through legislative changes which will create a
climate attractive to foreign direct investment
in that sector. Shipping legislation which has
already been finalised by the Chief Parliamentary
Counsel will soon be laid in Parliament; and
• finally, the yachting industry has long been
providing storage and repair services for cruising
yachts and light commercial marine and fishing
vessels.
4 . S T I MUL AT I NG GROWT H
AND I NVE S T ME NT
B U D G E T S T AT E M E N T 2 0 1 5
1 2 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
The Government proposes to strengthen this
industry by introducing at the University of
Trinidad and Tobago (UTT) advanced training for
yacht building and maintenance; to this end, the
UTT has entered into a strategic partnership with
the Southhampton Institute – Warsash Maritime
Centre for Maritime Training. The graduates
from the Institute will be certified by the National
Training Agency and their initial training will be
organised within the yachting industry.
Madam Deputy Speaker, the Government will
continue to partner with the new investors in
developing these sectors which will contribute to
the re-balancing of the economy in favour of the
non-oil energy sector and to the development of a
sustainable economy.
Madam Deputy Speaker, I now turn to the Financial
Services Sector:
FINANCIAL SERVICES
Madam Deputy Speaker, our financial services
sector has become an important pillar in our
economy contributing approximately 15.0 percent
of Gross Domestic Product and facilitating the
modernisation of Trinidad and Tobago. We have
already become the financial centre of the
region; and the financial institutions shared-support
services subsector is now consolidating with a
marketing strategy to attract the middle and back-
office operations of financial institutions - 2 such
businesses are now in operation with 1,000 newly-
created jobs. The success of these 2 operations has
exceeded the expectations of the investors and
discussions are underway for the further expansion
of the business of one of these centres.
Quatrro Global Services PVT Limited, an India-
based business, has selected Trinidad and Tobago
as a location to launch a pilot project to establish
a card processing centre. On December 13 2013,
Quatrro Global Services PVT Limited entered into
a Memorandum of Understanding with both the
Trinidad and Tobago International Financial Centre
and Caribbean Electronic Payments Limited with a
view to commencing the pilot project. This initiative
will serve to position Trinidad and Tobago as an
emerging location within the Caribbean, Central
and Latin American region for financial services
and will create high-value quality jobs, in particular
for university graduates.
This new industry will have global reach. Our vision is
for Trinidad and Tobago not only to be the financial
centre of the region but also to be one of the
foremost locations for a global financial services
hub in this part of the world.
TOURISM
Madam Deputy Speaker, consequent on the global
financial crisis, the tourism sector, in particular in
Tobago entered into a period of financial difficulty;
however, the Government acted promptly to arrest
the decline and to revitalise the sector.
In the past year, we established the Trinidad and
Tobago Tourism Development Fund which has been
providing guarantees to financial institutions in
Tobago as they restructured debt and / or provided
new loans to hotels and hotel-related businesses. As
at August 2014, the Fund had already issued Letters
of Undertaking to 11 businesses in Tobago with a
total cash allocation from the Fund amounting to
$19.0 million. To achieve even better participation
by tourism-related businesses, the Government
welcomes the decision of the commercial banks
to improve access to the Fund by increasing the
tenors for both restructured loans and new loans.
The Government will now expand the Trinidad
and Tobago Hotel and Guesthouse Room Stock
Upgrade Incentive Programme. We envisage
that this programme will lead to the upgrade and
refurbishment of guest houses and hotels of between
8-100 rooms. A reimbursement of 25.0 percent of
the cost of the upgrade works per guest room is
being provided with a maximum reimbursement of
$12,000 per room for properties located in Trinidad
and $15,000 per room for properties located in
Tobago.
However, as an interim measure and to encourage
upgrade works both in the interior and exterior areas
of the property, effective July 31, 2014, the rebate
B U D G E T S T AT E M E N T 2 0 1 5
1 3 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
programme has been expanded for a 3-year
period for properties between 6-150 rooms with the
maximum limit being increased to $750,000.
Another 3-year incentive programme which
commenced on July 31, 2014 is aimed at upgrading
work in small tourism properties with between 1-5
rooms; the reimbursement will be 20.0 percent of
the cost of the upgrade work up to a maximum of
$75,000. To further the development of the sector
and to encourage investment in new 4 and 5 star
hotels the Government is proposing to provide
guarantees to financial institutions for lending to
investors.
Madam Deputy Speaker, during the course of the
coming year we are proposing to:
i. transfer to the private sector the management of
the hotel associated with the National Academy
for the Performing Arts;
ii. enhance tourism sites and other attractions
throughout Trinidad and Tobago, in particular
the Sugar Heritage Village and Museum project
which is preserving the history and heritage
of all economic, social and cultural traditions
associated with the sugar industry;
iii. upgrade of beach facilities, including safety and
security measures, at Maracas Bay, Tyrico and
Las Cuevas in the first instance;
iV. upgrade on a phased basis starting from 2016
the beach facilities at, Quinam, Los Iros, Salybia,
Mayaro, Toco, Manzanilla and Vessigny; and
V. progress the Southern-Caribbean Cruise initiative
further with the execution of a Memorandum of
Understanding among participating countries.
AGRICULTURE
Madam Deputy Speaker, the agricultural sector
has long been in a state of decline; but this decline
has now been reversed with this Government’s
active engagement in the sector. At the centre
of Government’s agricultural policy is the National
Food Action Plan 2012-2015. The plan aims to raise
productivity and production among our farmers.
Indeed, we are now witnessing an expansion in
agricultural production with the sector returning to
growth in both 2013 and 2014.
Moreover, food price inflation has been averaging
below 5.0 percent with the average for the first
half of the calendar year 2014 being 3.5 percent
– the first time in 21 years food price inflation has
remained in single digits for 6 consecutive months.
The Government has continued to consolidate and
to improve the quality of infrastructure to support
this rapidly-expanding sector:
• agricultural incentives are being deepened
and widened; 3,390 small farmers accessed
the benefits amounting to $19.0 million which
facilitated either their continuation in farming or
their expansion of existing production; in June
2014 the Incentive Programme was extended to
large farmers;
• the Agricultural Development Bank has extended
over $107.0 million to key areas of the agricultural
sector;
• the recently-established national Praedial
Larceny Squad is already making its presence felt
despite being in operation for less than a year.
Approximately 51 arrests have been made and
this has significantly improved farmer confidence.
• accordingly, I propose to make additional
resources available to the Agricultural
Development Bank as well as to increase all fines
related to praedial larceny;
Madam Deputy Speaker, agricultural production is
also being spearheaded by:
• the recently-created Caroni GREEN Limited. The
company has already brought into agricultural
production 360 acres of land utilising in the main
the 2-acre sized agricultural plots leased from the
former employees of Caroni. With more than 290
metric tonnes of produce harvested within the last
6 months, Caroni GREEN has been contributing
substantially to domestic consumption of quality
fresh vegetables;
• the commercial large farm programme is being
rolled-out with the establishment of 8 large farms;
the agri-business investors are already increasing
B U D G E T S T AT E M E N T 2 0 1 5
1 4 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
the quantity, the quality and the reliability
of domestic food supply in a wide range of
commodities, including rice, onions, hot peppers,
sweet corn, a range of citrus and aquaculture.
By the end of 2015, 4 additional large farms will
become operational;
• the commercial large farm programme has
been extended to Guyana in the context
of the execution on September 6 2013 of a
Memorandum of Understanding between the
Government of the Republic of Trinidad and
Tobago and the Government of the Co-operative
Republic of Guyana.
Expressions of Interest have been issued seeking
qualified private agri-investors who will be provided
with leases for land in Guyana to produce
commodities of strategic importance to the food
security of Trinidad and Tobago, and the number of
responses are now being evaluated;
• the local rice industry is being revitalised with a
mandate to increase production to 50.0 percent
of total consumption by 2018; 300 acres of
rice land have been resuscitated in the Plum
Mitan district and 500 acres are already under
cultivation and production under the large farm
programme;
• 12 main fishing centres in Trinidad are being
upgraded: Blanchisseuse, Cocorite, Orange
Valley/Brickfield, Carenage, Las Cuevas Phase
1, La Ruffin, Grande Riviere, Blue River, La Brea,
Cacandee, Grand Chemin and Marabella;
• the agro-processing industry is being built by
providing rebates on the cost of refurbishing
or establishing approved facilities for agro-
processing of approved commodities as well
as refunding a portion of the expenditure for
upgrading the Hazard Analysis and Critical
Control Points for agro-processors;
• the regularisation of the tenancies for 3,420
former sugarcane farmers is proceeding to the
next phase of surveying and the issuance to
those farmers of standard agricultural leases
under which they could expand the production
of agricultural commodities; and
• the agricultural lease issuance exercise for more
than 8,400 former employees of Caroni (1975)
Limited is continuing; approximately 2,600 leases
have been delivered and 540 are awaiting
delivery. With the transfer of responsibility for
delivery of leases from the Commissioner of
State Lands to the Estate Management Business
Development Company Limited the lease
issuance process will be expedited for completion
in 2015. These leases can now be sold in the open
market.
The National Agricultural Marketing and
Development Company has been strengthening
the linkage between the process producers
and consumers thereby ensuring a much more
sustainable balance between demand and supply
of domestic produce with associated stable prices.
Madam Deputy Speaker, over the long-term the
Government remains committed to enhancing
the enabling environment for growth in the
agricultural sector. We have established the right
policy framework for the agricultural sector and
we expect the sector not only to bring Trinidad
and Tobago to a state of food security but also to
provide profitable business opportunities for our
young agricultural entrepreneurs.
I turn now to Energy:
ENERGY
Madam Deputy Speaker, when this Government
came into office we recognised that the
development of the upstream sector had suffered
from years of neglect which had contributed to
declining reserves as confirmed by successive oil
and gas audits. To address this problem, we have
progressively upgraded the oil and gas tax regime
over the last 4 years.
Investment spending is now taking place in a
transparent regulatory framework, including a
simplified competitive bidding process.
We have recognised that to compete
internationally for capital, appropriate changes
had to be made to the oil and gas regime and this
B U D G E T S T AT E M E N T 2 0 1 5
1 5 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
has led to a renaissance in the sector. The results of
this Government’s changes to the fiscal regime of
the energy sector are impressive:
• investment has been expanding: the oil and
gas companies have advised that investments
amounting to US$3.3 billion will take place in 2014
and similarly-sized investments will take place
over the medium-term: US$3.2 billion in 2015 and
US$3.0 billion in 2016.
Included in these investments is the recently-
announced US$2.1 billion Juniper Project, the
main component of which will be the fabrication
of the Juniper Platform in the LABIDCO Industrial
Estate with the creation of 300 jobs thereby
initiating the revitalisation of economic activity in
the south-west peninsula.
The Platform will facilitate the production of 1.2
trillion cubic feet of natural gas commencing in
2017 at a rate of 590.0 million standard cubic feet
of natural gas per day which is equivalent of 14.0
percent of the country’s production. Supporting
this will be the commencement in October 2014
of natural gas production from the BG Starfish
Development;
• 12 production sharing contracts have been
signed over the last 4 years. Under the new model,
the Government has included various options for
the marketing of its share of the natural gas;
• 5 new discoveries of natural gas or oil in the last 2
years have been made, including:
i. Trinity in the East Galeota block with 27.0
million barrels of oil;
ii. Petrotrin in Trinmar’s cluster 6 with 48.0 million
barrels of oil;
iii. bpTT in its Savonette-4 well with 1.0 trillion
cubic feet of natural gas;
iv. Trinity in its TGAL 1 well with 26.0 million barrels;
and
v. REPSOL in its Teak Bravo North well with 40.0
million barrels of oil.
• in addition a further 2 deep water production
sharing contracts are about to be signed and 3
on-shore licenses are about to be issued, the first
time in many decades;
• drilling activity which is reflective of greater activity
in the upstream energy sector is increasing. In
2010, the number of rig days was 1,132 and
in 2013 rig days totalled 2,485. We expect this
number will be surpassed in 2014 based on the
work programmes under the 28 active production
sharing contracts and licenses; and
• at least 53 exploration wells will be drilled over the
next 8 years based on the exciting new seismic
data coming to hand, the incentives now in
place and the contractual obligations of the
companies.
There is going to be an unprecedented period of
activity in the energy sector over the course of the
next decade.
We are witnessing a marked increase in drilling
activity, a significant increase in foreign and
domestic direct investment, discoveries of new
reserves of oil and natural gas and the stabilisation
of oil production. We expect that, starting in 2017,
we shall see improved results arising out of the
audits of our oil and gas reserves.
Madam Deputy Speaker, the proposed US$850.0
million Mitsubishi-Massy Methanol to Di-Methyl
Ether plant is in an advanced stage of technical
conceptualisation. The plant will produce methanol
from natural gas and then go further down-
stream to di-methyl ether which can be used as a
replacement for both propane and diesel.
Importantly, its location in La Brea will generate
industrial development in the south-western
peninsula and bring to that area much needed
high-quality jobs.
Madam Deputy Speaker, as indicated the Energy
Port at Galeota will provide substantial logistic
support for the oil and gas companies operating
off the east coast with a reach as far as Suriname
and Guyana. The second phase of the Galeota
Port will begin in 2015 continuing the stimulation of
economic activity in the south-east communities.
Additionally, upgrade work will take place at
Brighton, La Brea to accommodate the Mitsubishi–
Massy and Gasfin Projects.
B U D G E T S T AT E M E N T 2 0 1 5
1 6 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
With respect to the fuel subsidy, Government
has been advancing the transition from the high
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
the fuel subsidy on the finances of the country. The
National Gas Company of Trinidad and Tobago has
established a new company: NGC CNG Company
Limited which is spearheading the roll-out of the
CNG-equipped filling stations. By the first quarter of
2016, 35 CNG fuelling stations will be operational.
Madam Deputy Speaker, hybrid and electric-
powered vehicles are now becoming the vehicles
of choice in many advanced countries. Moreover,
the increasing use of these vehicles is contributing
towards the reduction of gasoline and diesel.
I propose to provide tax relief on the importation
of hybrid and electric-powered cars subject to the
regulations outlined by the Bureau of Standards.
INFORMATION AND
COMMUNICATION TECHNOLOGY
Madam Deputy Speaker, as we modernise this
country to create a dynamic knowledge-based
society, we are bridging deficiencies in access
to and use of information and communication
technologies. We recognise that a smarter Trinidad
and Tobago will be a more competitive Trinidad and
Tobago and pursuant to our national Information
and Communication Technology Plan, commonly
referred to as smarTT, we are implementing the
initiatives which are aimed at making more
intelligent use of our financial, human and other
resources. Affordable high-speed broadband
services are being made widely available to
support the evolution of a dynamic knowledge-
based society.
With technical assistance from the World Bank
Group, the Government is embarking on a $2.4
billion expenditure on high-impact programmes
to improve infrastructure supply, in particular the
provision of new networks and demand initiatives
to stimulate ICT usage in the society. Public-Private-
Partnerships will be utilised both in the expansion of
supply and in the delivery of services. We are also
bringing the ICT policy and law up to best practice.
MAJOR INFRASTRUCTURE
Madam Deputy Speaker, we are now making
progress in overcoming infrastructure backlogs
and investing for more inclusive growth and
development. In fiscal 2015, public capital
expenditure will amount to approximately $8.2
billion. I wish to turn now to infrastructure investment
in major sectors:
WATER AND WASTE WATER SERVICES
Madam Deputy Speaker, we are well on our way
to ensuring an adequate and reliable supply of
water to all our citizens. We have reduced leaks
in our distribution network, reduced the number
of customer complaints, reduced the number of
repairs on our major mains, reduced the requests
for truck-borne water and we have reduced the
number of repairs on our valves.
We have improved infrastructure throughout
Trinidad and Tobago, including the installation of
storage tanks, the construction of new booster
stations and we have installed and replaced many
kilometres of pipelines and mains. In Tobago we
have installed transmission mains from Englishman’s
Bay to Castara and from Bacolet to Cove Industrial
Estate.
Our citizens are benefitting from these infrastructural
developments. Approximately 57.0 percent of the
customers of the Water and Sewerage Authority
are now receiving a reliable supply of water 24/7;
in Tobago this percentage is approximately 70.0
percent.
Madam Deputy Speaker, in 2010, only 18.0 percent
of the population received a reliable supply of
water.
Work is being vigorously pursued on establishing a
daily supply of water for all our citizens. With the
completion of the Beetham Waste Water Project,
the Industrial Estate at Point Lisas will benefit from
a reliable and high quality water supply, thereby
B U D G E T S T AT E M E N T 2 0 1 5
1 7 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
diverting 10 million gallons per day of good-quality
potable water to the national community. In 2015,
we anticipate that close to 100.0 percent of the
population will receive a 24/7 supply of water.
Madam Deputy Speaker, the incidence of flooding
needs to be addressed. The annual damage to
property, the loss of agricultural crops and the
spread of vector-borne and water-borne diseases
have been impacting adversely on our citizenry. The
economic and social costs have been inordinately
high.
With funding from the Inter-American Development
Bank of US$120.0 million, we have embarked on a
5-year programme to alleviate flooding and to
improve drainage in the city of Port of Spain. In
fiscal 2015, infrastructure work will begin on the
South Quay portion of Port of Spain which includes
the City Gate area.
Madam Deputy Speaker, unplanned development
has been at the source of our environmental
difficulties, including the incidence of flooding. As
such, we have been rehabilitating our water sheds
and restoring our forest cover through enrichment
planting of 1.3 million trees on approximately 6,200
acres across Trinidad and Tobago. This has been
accomplished in the last 4 years.
We have taken steps to ensure that sustainable
development is anchored on an appropriate
assessment of socio-cultural and economic and
environmental development issues. The recently-
legislated Planning and Facilitation of Development
Act has established a governance framework
under which land use, planning and development
will take place with a focus on sustainability.
Environmental integrity is being sustained by the
Community-Based Environmental Protection
and Enhancement Company Limited in its work
programmes to maintain the environment. A new
component, CEPEP Marine has been added which
is ensuring that our western and southern coastlines
are being consistently cleaned.
Madam Deputy Speaker, I turn to our Historic
Buildings.
HISTORIC BUILDINGS
This Government has been focusing on preserving
our historic buildings. We consider this to be critical
for understanding our nation’s heritage. It is also an
environmentally responsible practice. Preservation
work at Stollmeyer Castle and White Hall is in an
advanced stage and in the next fiscal year physical
work will begin on Mille Fleurs and the President’s
House. We are putting in place a public-private-
partnership to address the on-going maintenance
of these buildings.
HIGHWAYS
Madam Deputy Speaker, the Government is moving
to open all economic space in the country through
a network of roads and highways which will provide
safe, reliable and efficient transport. Businesses
and government services will be increasingly
decentralised as economic opportunities open
throughout the country.
We have made significant progress in developing
this network:
• the 47 kilometre 4-lane San Fernando to Point
Fortin highway is being delivered in phases; the
Golconda to Debe segment is already in service
and several additional segments will be delivered
in 2015;
• the 6.2 kilometre Rivulet road is being rehabilitated
with a delivery date in 2015 and will provide
road capacity to accommodate the expanding
traffic demands emanating from the Point Lisas
Industrial Estate;
• the east-west corridor transportation network is
being modernised to ease by 2015 the frustrating
levels of traffic congestion:
i. the Churchill Roosevelt Highway to St. Joseph
river has already been widened;
ii. the Beetham Highway access route in and
out of Port of Spain is being widened;
iii. the Diego Martin Highway extension is now
fully operational; and the all-important 34
metre-span walkover and canopy with
B U D G E T S T AT E M E N T 2 0 1 5
1 8 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
staircase near Cuthbert Road will bring major
safety benefits;
iv. the Valencia By-Pass now under construction
will be completed in November 2014.
The new roadway will be used by motorists to
bypass the town centre and will also eliminate
the excessive traffic pileups which currently
exist along the Eastern Main Road in the
vicinity of Valencia Junction; and
v. the over-pass at Southern Main Road and the
Churchill Roosevelt Highway will commence
construction in 2015.
The removal of the traffic lights from Port of
Spain to the University of the West Indies will
extend the freeway and in the process reduce
traffic congestion.
Madam Deputy Speaker, the roll-out of a modern
network of roads and highways connecting the
country is being appropriately sequenced. We
have already completed the designs for 3 new
highways:
i. the Princes Town-Mayaro Highway;
ii. the San Fernando-Princes Town Highway; and
iii. the Wallerfied-Manzanilla Highway.
We are considering, through a public-private-
partnership arrangement, an alternative access
route to Chaguaramas to facilitate the increasing
development activity in the north-west peninsula
which has already seen the commissioning of the
Chaguaramas Boardwalk and the Diego Martin
Extension Highway and the soon-to-be constructed
Fishing Facility and Health Centre in Carenage.
OFFICE ACCOMMODATION
Madam Deputy Speaker, the outfitting of the
Government Campus Plaza which commenced
this year will add another dimension to the vibrancy
of the capital city of Port of Spain. On completion,
our public servants will now be accommodated
in state-of-the-art facilities with acceptable and
appropriate office space. The sequencing will be
as follows:
• October 2014, next month, the Customs and
Excise Division of the Ministry of Finance and the
Economy;
• March 2015 the Immigration Division of the Ministry
of National Security;
• August 2015 the Board of Inland Revenue Division
of the Ministry of Finance and the Economy;
• September 2015 the Ministry of Legal Affairs; and
• September 2015 the Ministry of Education.
Madam Deputy Speaker, the Government is
collaborating with the Urban Development
Corporation of Trinidad and Tobago with a view to
outfitting all remaining buildings for occupation in
2016.
Furthermore, the Government is now exploring
all options available to it for ensuring that all
government-owned buildings are not only fully
utilised and meet the demand for government
services but also the residual or unused buildings
are offered for sale or lease.
B U D G E T S T AT E M E N T 2 0 1 5
1 9 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, I turn now to our policy
initiatives for building a more inclusive society.
This Government has identified 6 policy-driven
institutional components which are critical and inter-
dependent for making our society more inclusive
and for fostering growth which is sustainable. Our
policies are aimed at delivering greater equality of
incomes through greater equality of opportunities.
For this reason the focus of the Government is
on growth-enhancing investment and social
expenditures in 6 key areas; education, health,
housing, a social safety net, transport and sporting
activities.
EDUCATI ON
Mr. Speaker, the first component in our commitment
to a more inclusive society is the education system.
We are advancing our public policy agenda of
greater equity in our society and the building of
a competitive economy. The Government will
continue to provide quality and advanced skills
training to meet the demands of a middle-income
society.
EARLY CHILDHOOD CARE AND
EDUCATION (ECCE)
Madam Deputy Speaker, we expect to achieve
universal early childhood care and education by
2015. Our childhood centres established directly
by Government and by public-private-partnerships
are providing our 3 to 4 year-old children with
quality teaching and learning and in the process
are facilitating their easy transition to primary
education.
PRIMARY AND SECONDARY
This country has just experienced its best year’s
results in 3 of our major examinations: the Secondary
Entrance Assessment, the Caribbean Secondary
Education Certificate and the Caribbean
Advanced Proficiency Examination; but more
needs to be done to build on this success. In order
to improve the levels of literacy and numeracy, we
have deployed literacy and numeracy coaches to
118 schools and have trained 2,700 teachers who
can now develop literacy and numeracy skills in
students.
We are integrating information and communication
technology throughout the entire education
system. All students in Forms 1-5 will have laptops
by September 2014 and we are ensuring that the
demands of the society for skilled and technical
services are met through the increase in the number
of secondary schools offering the Caribbean
Vocational Qualifications.
TERTIARY
Madam Deputy Speaker, in order to uphold
excellence in our tertiary education system and
to ensure that skills development meets the needs
of our society, a wide range of initiatives and
programmes are being implemented:
• the Government Assistance for Tuition Expenses
programme is benefitting approximately 67,000
participants; all public and private higher
education institutions are now being held
accountable for the programme and the soon-
to-be-introduced National Qualifications and
Credit Framework will strengthen the quality of
the system;
5 . BUI L DI NG AN
I NCL US I VE S OCI E T Y
B U D G E T S T AT E M E N T 2 0 1 5
2 0 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, let me assure this
Honourable House that this Administration
will keep the GATE programme secure and
sustainable.
• the grace period of 6 months relating to the
repayment of loans under the Student Loan
Revolving Fund will be extended;
• the University of the West Indies, Penal-Debe
Campus is in an advanced stage of completion
with dedicated faculties for law, science and
technology, food and agriculture and social
sciences;
• the University of the West Indies, School of Dentistry
is being expanded;
• the University of the West Indies, Open Campus is
being constructed at Chaguanas;
• the College of Science, Technology and Applied
Arts of Trinidad and Tobago is expanding its
nursing facility at El Dorado;
• the Metal Industries Company Institute of
Technology has already established 4 Technology
centres in Tobago, in O’Meara, in Diego Martin
and in Penal;
• a Drilling Academy has been established at St.
Madeline with an expanded facility at Forest
Reserve to provide training in downstream
activities such as production and refinery
operations, environmental remediation and
green technologies;
• a Technology Campus is being established at La
Horquetta and the facilities at La Brea and Point
Fortin are being expanded;
• an Automotive Training Institute, a Workforce
Development Centre and a Centre of Excellence
in Cosmetology are being established at
Woodford Lodge;
• the Business Education and Training Campus in
Carapichaima-Waterloo which is now focusing
on agri-production will be expanded to a Digital
academy to support training in film, television,
animation and multi-media; and
• an Aviation campus is being constructed at
Camden Field in Couva: leadership is being
provided by the University of Trinidad and Tobago.
Madam Deputy Speaker, we have surpassed the
international benchmark established for student
participation rates for tertiary education. In 2010, the
student participation rate in the tertiary sector was
42.0 percent. This Government has now achieved a
rate of 65.2 percent which also exceeds our target
of 60 percent.
HEALTH
Madam Deputy Speaker, the second component
in our commitment to a more inclusive society is our
focus on providing quality health care and medical
services to our national community. Individual
responsibility for his or her well-being represents
a critical aspect of our overall healthcare. It is
imperative that our citizens monitor and manage
actively their own health regimes thereby reducing
the demand on the country’s health system.
Notwithstanding this reason, we have focused our
attention on creating client-centred experiences
and solutions which respect the needs, abilities
and uniqueness of those members of our national
community who require quality health care.
Our core principle is anchored on the rights of
patients and clients to experience respectful and
professional care in a considerate and supportive
environment. In pursuit of this broad agenda, at the
core of which is service quality, the Government is
improving the delivery of health care in Trinidad and
Tobago. To this end, and in order to alleviate the
chronic bed shortage at the San Fernando General
Hospital, we converted the newly-constructed
Administrative Complex in San Fernando into the
216-bed San Fernando Teaching Hospital. The
facility became fully operational in the last year and
is delivering quality healthcare to the burgesses of
San Fernando and our citizens in the surrounding
areas.
Madam Deputy Speaker, our health service delivery
model has been moving apace since the last year:
B U D G E T S T AT E M E N T 2 0 1 5
2 1 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
• a Children’s Hospital and Multi-Training Facility
in Couva is under construction and when
completed will focus on ensuring not only that the
medical needs of our children are fully-addressed
in an 80-bed facility but also that 300 medical
and nursing students are trained at the University
of the West Indies’ School of Medicine, Nursing
and Pharmacology.
With its location close to our gas-based industries
in Point Lisas, the facility will also contain a 150-
bed centralised medical facility for adults with an
associated Burns Unit;
• the National Oncology Centre which will provide
diagnostic imaging and radiation therapy
services is currently under construction and will
be fully commissioned in 2015;
This specialist institution will add another
component to the national strategy for addressing
the specific needs of cancer patients;
• a National Diabetic Retinopathy Screening and
Treatment Service is being phased-in over a 4 year
period at a cost of $85.0 million. This diabetic care
service is building on a pilot screening programme
which has been in place since October 2013 and
is already improving the quality of life of persons
with diabetes through better control.
• Approximately 130,000 citizens is estimated in our
population suffer from diabetes with 11.0 percent
having urgent sight-threatening complications
with compromised vision or blindness;
• 4 other new state-of-the-art hospitals are on the
drawing board: Penal Hospital and Rehabilitation
Centre, Sangre Grande Hospital, Point Fortin
Hospital and the Arima Hospital; and
• the external patient programme is providing
immediate relief to our citizens who have been
waiting for surgical procedures for a minimum
of 3 months in our public health care facilities: in
particular, cataract, joint-replacement, CT and
MRI.
Madam Deputy Speaker, the Government is also
rehabilitating and repairing many other health
facilities and medical centres at Arima, Couva,
Palo Seco, Sangre Grande, Maracas-St. Joseph,
Carenage and Toco. In addition, we have
extended the opening hours of these facilities and
in several areas on a 24/7 basis.
Moreover, in order that the short-term demands for
medical services are met and in the context of the
shortage of doctors and nurses, Government has
been recruiting foreign health care professionals, in
particular, nurses and doctors for the public health
institutions.
HOUSI NG
Madam Deputy Speaker, a third component in
our commitment to a more inclusive society is the
provision over the next decade of comfortable
and affordable homes for those in the low- and
medium-income groups. We are overcoming the
inadequate supply of houses and the difficulties of
our citizens in obtaining mortgage financing and
we are improving the maintenance of our housing
stock. Ultimately, our goal is the establishment of
sustainable communities throughout Trinidad and
Tobago.
The Government has embarked on a programme of
activities to construct new homes in light of the more
than 160,000 outstanding applications from our
citizens. We are also rehabilitating and maintaining
the existing housing stock. We are committed
to meeting the public demand for housing over
the course of the next decade and we will do so
through an all-encompassing plan of action which
focuses on construction, rehabilitation, provision of
land and subsidies for home-improvement:
• 3,000 new housing units are being built with
resources from the public sector investment
programme and local borrowing; more than
1,000 have already been completed at Egypt
Village, Princes Town, Union Hall and Victoria
Keys;
• high-rise apartment buildings will be refurbished
and retro-fitted in fiscal 2015; the buildings are at
B U D G E T S T AT E M E N T 2 0 1 5
2 2 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Pleasantville, Laventille, Morvant and Gasparillo;
56 other tenanted buildings with 656 units are
being refurbished; these buildings are at Charford
Court, Maloney, Paradise Heights, Beverly Hills,
Dorata Street, Lisas Gardens, Pleasantville, Irving
Street, Clifton Street, Ramsaran Street and Lady
Hailes Avenue;
• 110 new home-improvement and construction-
matching subsidies to eligible low-income families
are being provided under the Neighbourhood
Upgrading Programme with a US$40.0 million Inter-
American Development Bank loan; furthermore,
more than 1,200 beneficiaries have received
from the Government home-improvement grants
at a cost of $9.3 million;
• the regularisation of unplanned settlements is
improving the living conditions of low-income
persons at selected squatter sites, 30 of which are
at varying levels of infrastructure development,
including at St Mary’s Village, Moruga; Base
Road, Arena; and Calvary Hill, Arima;
• the Land for the Landless Programme is providing
residential lots at subsidised rates to low-income
persons at 10 sites, including Felicity II, Glenroy II,
Princes Town and Beaucarro, Freeport;
• the lease issuance exercise for more than 8,800
former employees of Caroni (1975) Limited is
continuing; approximately 1,700 leases have
already been distributed and with the scaled-up
resourcing of the Estate Management Business
Development Company Limited, the lease
issuance exercise will be expedited in the context
of the delivery of approved residential estates in
2015. These leases can now be sold in the open
market; and
• the 2.0 percent mortgage programme is being
improved and is being supplemented with a 5.0
percent mortgage programme.
As we advance our programme to meet our
housing needs, we will expand the mortgage loan
programme to meet the needs of middle-income
individuals. Multi-family units to increase the housing
output per site will be increasingly employed.
For this purpose we will amend the Housing Act to
make regulations as required under the Income
Tax Act to grant effective January 1, 2013 the tax
incentives to housing developers as outlined in my
2014 Budget Statement.
TRANSPORT
Madam Deputy Speaker, the fourth component is
our commitment to provide an efficient, reliable
and affordable transportation system for our citizens
as well as to support the system with comfortable
and state-of-the-art facilities. We are procuring on
a phased-basis, 100 new CNG–powered buses. We
envisage that not only will ridership be increased
but the number of routes will be expanded. We
have also improved the efficiency of the sea bridge
between Trinidad and Tobago. The newly-acquired
ferry is not only faster but also accommodates
more passengers and cargo.
With the coming into force of the Motor Vehicles
and Road Traffic Act the long-awaited Motor
Vehicle Authority, will be put in place on or before
March 31, 2015. The Head Office of the Authority
will be located in Frederick Settlement, Caroni and
will ensure that our citizens will have easy access to
all licensing-office related services.
In addition, 13 access centres will be located
throughout Trinidad and Tobago - all to be readied
by September 2015.
SOCI AL SAFETY-NET
SERVI CES
Madam Deputy Speaker, the fifth component is
our social safety net. We propose to rationalise our
social programmes to ensure that they are fully-
synergised. The World Bank Group will undertake
a detailed review of the performance of these
programmes and make recommendations on
the way forward. The Group will assess their
effectiveness and will determine a framework for
minimising overlap in both scope and scale.
B U D G E T S T AT E M E N T 2 0 1 5
2 3 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
In the interim, we are improving the delivery of the
social safety-net services as we move to protect
the most vulnerable in our society.
We are now deepening the application of our
social interventions:
• a National Development Centre for the differently-
abled at Carlsen Field has now been completed
and will be commissioned before December 31,
2014; a fleet of 24 buses of which 3 are in Tobago
are catering to the transportation needs of our
elderly and differently-abled citizens;
• the Public Assistance Grant has been extended
to the head of the household where such a
person has to support a child under the age of 18,
who is certified to be disabled; 1,300 persons are
now benefitting from the expansion of the grant;
• the Unemployment Relief Programme has
been restructured with an increased focus on
social interventions in communities targeting
unemployed single parents, persons with
disabilities and those living under the poverty
line: by September 30, 2014, 1,000 projects in
communities will be completed involving more
than 600 contractors employing approximately
3,600 persons on the building of drainage
infrastructure, jogging tracks and play parks
for children, the rehabilitation of roadways,
pavements and sidewalks and the construction
of retaining walls;
• We intend also, as far as URP goes, to equalise
wages between men and women.
• two programmes: the Servol Adolescent and
the Parental Outreach which have proven to
be extremely successful in building cohesiveness
among families will receive increased allocations;
and
• subject to working out the qualifying requirements,
a new programme will provide financial
assistance for 1 year only for any child born to
under-privileged parents during the course of the
next fiscal year.
Madam Deputy Speaker, I propose to increase
the benefits now available to several of our
disadvantaged groups. Indeed, the use of these
strong social protection and innovative systems
and strategies has been instrumental in reducing
poverty levels and in building the middle-class.
The Human Development Report prepared by
the United Nations Development Programme
categorises this country as one of high human
development and ranks it 36
th
out of 185 countries.
NATI ONAL SPORTS
Madam Deputy Speaker, the sixth component
in our thrust to a more inclusive society is sport
development. We have made significant progress
in establishing an enabling framework, comprising
infrastructure, management and coaching, talent
building, welfare of elite athletes and sport tourism.
We are building on the existing infrastructure:
• the technical framework to support the
development of football throughout the country
has been put in place at an annual cost of $36.2
million;
• the 5 multi-purpose stadia have been or are now
being upgraded; and
• community sporting groups and national
governing bodies are continuing to receive
financial assistance. This funding programme
has facilitated increased participation in various
sporting disciplines and provided opportunities
for successful participation in events on the
international stage.
We shall establish the Trinidad and Tobago National
Games with the inaugural games taking place
early in 2015. We are developing a critical mass
of athletes and 5 disciplines are being targeted:
football, basketball, cricket, netball and athletics.
Within this general framework we shall continue
to fund elite athletes so that they can attain
excellence at the highest levels of competition.
B U D G E T S T AT E M E N T 2 0 1 5
2 4 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
In addition to this improved sporting infrastructure,
we are developing 3 major state-of- the-art national
sporting facilities, all of which are at an advanced
stage of completion.
We shall be in a position to leverage these facilities
to attract international events at the National
Aquatic Centre, the National Tennis Centre and
at the National Cycle Centre. In doing so, Trinidad
and Tobago will be marketed as a preferred sport
training destination.
Madam Deputy Speaker, the Government is
challenging the energies of our young people in this
area and looks forward to the future success of our
athletes in all international sporting competitions.
6 . L ABOUR
Madam Deputy Speaker, this Government has
been committed to the promotion of employment
practices which are fair and equitable to all
workers. While we have concluded and brought
up-to-date the majority of our industrial agreements
within the state sector, the long delays in settling
such agreements warrant a refocus on the
methodology for reaching industrial agreements.
The private sector has similar experiences. To this
end, the Government will strengthen the existing
mechanism for fostering multi-partite collaboration
and social dialogue.
This will foster consensus building and democratic
involvement among the main stakeholders in the
world of work. The Social Dialogue Task Force
which was established in 2013 and chaired by the
Minister of Labour and Small and Micro Enterprise
Development, will now be tasked with a mandate
to provide regular reports to address the complex
social and economic challenges facing the country,
including the keeping of the labour negotiations
current and the reduction in the likelihood of lost
value through industrial action. The Government
will consult with academia on its involvement in
the process and will ensure that the dedicated
secretariat will have professional and competent
staff resources.
Madam Deputy Speaker, as part of this process
and in keeping with the recommendations of the
Minimum Wages Board I now propose to raise the
minimum wage.
B U D G E T S T AT E M E N T 2 0 1 5
2 5 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, the Government places
at the top of its agenda the security of life and
property for the national community. The current
crime epidemic continues to be addressed through
a range of well-resourced multi-faceted initiatives;
but undoubtedly productivity is still being impaired
and doing business in Trinidad and Tobago has to
take this cost into account.
While the level of homicides continues to be
worrying, there has been some success in non-
violent serious crime with declines registered in key
areas, in particular burglaries, break-ins and general
larceny. Internal security is being strengthened:
• the police presence has been expanded
throughout the country, particularly in hotspot
areas where army patrols are also present; more
mobile patrols and foot patrols are in place;
• additional police personnel, including more than
1,000 police officers and 1,400 special reserve
police officers have been recruited; capacity
building is taking place, in particular in the
areas of evidence-based policing and crime
scene investigation techniques. Approximately
560 police personnel have benefitted from this
training;
• eight state-of-the-art police stations with
computerised technology have been constructed
throughout Trinidad and Tobago, namely Arima,
Piarco, Maloney, Cumuto, La Brea, Oropouche,
Brasso and Moruga;
• rapid response units within various police divisions
have been strengthened with more than 330
police vehicles equipped with GPS tracking
systems. Response times have now improved;
and
• the newly-established Community Comfort Patrol
is bringing a much-needed security presence
in residential areas and housing estates. This
collaboration between the Ministry of National
Security and the enforcement officers from
private security companies is adding another
dimension to our quest to improve security within
our communities.
Madam Speaker, coordinated national joint
operations and proactive operational planning for
national security, disaster and emergency crises
are being facilitated by the National Operations
Centre – a strategic platform for inter-agency
operations.
This robust integrated nationwide system for
coordination and communication at strategic,
operational and tactical levels is not only
contributing to the reduction in serious crime but is
facilitating regional and international cooperation
in the fight against trans-national organised crime.
Border security has become increasingly critical
due to the country’s location which exposes it to
the growing threat of transnational crime and
drug trafficking. The Trinidad and Tobago Coast
Guard has already added to its platform a number
of harbour patrol vessels and plans are afoot to
acquire for the Coast Guard coastal patrol vessels
and interceptors. Expenditure on these acquisitions
will be in excess of $1.0 billion. These assets will
effectively blockade the Gulf of Paria against the
illegal shipment of narcotics, arms and ammunition
and human trafficking. The protection of our
internal and external waters will be improved.
Madam Deputy Speaker, this high-risk responsibility
by our protective services personnel cannot
7 . S E CURI T Y AND PUBL I C ORDE R
B U D G E T S T AT E M E N T 2 0 1 5
2 6 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
be discharged without the incidence of some
casualties. This Government proposes to establish a
Fund from which could be drawn $1.0 million which
will be payable to the estate of the deceased
for assistance to families arising out of death of a
member of the State protective services killed in
the line of duty.
8 . RE F ORM AGE NDA
PROCUREMENT
Madam Deputy Speaker, we are putting in place
through legislation another confidence-inducing
mechanism for ensuring the efficiency of resource
use through our public sector procurement.
The proposed Office of Procurement Regulation
with its Procurement Regulator will ensure that all
public sector contracting be now subject to the
values, principles and best standards of practice of
public sector procurement.
The title of the Public Procurement and Disposal of
Public Property Bill 2014 is reflective of the public
policy regarding this legislation which will provide
for public procurement and the disposal of public
property in accordance with the principles of good
governance, namely accountability, integrity,
transparency and value for money as well as
the establishment of the Office of Procurement
Regulation. We are expediting the process of
preparing the regulations to make this legislation
effective once it is approved by this Honourable
House.
CONSTI TUTI ONAL REFORM
Madam Deputy Speaker, we have been
strengthening our Parliamentary procedures. We
have already implemented new Standing Orders
and established a Finance Committee under the
Chairmanship of the Speaker of the House with
responsibility for Budget oversight. The work of the
Committee will be open to the public for the first
time in our nation’s history.
A Joint Select Committee on Campaign Finance
Reform has also been established. With our recent
amendments to the Constitution, provision is now
made for term-limits for Prime Ministers, the right
to recall parliamentarians and run-off elections.
We shall take steps to ensure the appropriate
resourcing of the offices of our 41 parliamentarians
so that they all have the capacity to represent
effectively their constituents.
I propose to allocate $410.0 million for the
Constituency Development Fund for the upcoming
fiscal year; but the Fund will only be operationalised
subsequent to the establishment of the legislation,
associated regulations and the implementation of
the appropriate control environment.
B U D G E T S T AT E M E N T 2 0 1 5
2 7 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
TAX ADMI NI STRATI ON
Madam Deputy Speaker, we are continuing our
focus on modernising our tax administration through
the application of technology and enhanced tax
payer engagement to improve the efficiency of
tax collection.
Over the past year, notwithstanding that some
of our objectives for the year were affected by
industrial action, we have completed the review
of the recommendations of the consulting group
hired to assist with the review of our taxation system,
we have established a taxation committee which
includes stakeholder groups from the business and
accounting communities and we have resuscitated
the Petroleum Pricing Committee.
With respect to non-financial assets, the mapping
and valuation process has begun on fixed assets
such as buildings, machinery and equipment,
land, roads and sub-soil assets as well as contracts,
leases and licenses. This exercise will provide further
options for revenue generation and more effective
asset management.
Madam Deputy Speaker, as we strengthen the tax
administration, the Government proposes to offer
a tax amnesty for tax penalties and interest for
late filing of returns and late payment of income,
corporation tax and Value-Added Tax, as well as
business levy and environmental levy.
This amnesty will encourage tax payer compliance
and the process will bring in revenue which will
more than compensate for the revenue foregone.
I also propose to waive all penalties outstanding
or chargeable on companies which have not filed
their documents with the Registrar of Companies.
COMMI SSI ON ON GAMBLI NG
Madam Deputy Speaker, gambling with the
associated incidence of harmful effects has been
on the rise in Trinidad and Tobago and this no doubt
has been due to the limited regulatory environment.
We had committed to bringing all forms of betting
and gaming activities in Trinidad and Tobago within
a dedicated regulatory framework. A Cabinet-
established Civil Society Committee has been
holding extensive consultations with all industry
stakeholders and there is now broad agreement on
the elements of a regulatory regime.
The appropriate legislation and related regulations
have now been developed and will be laid in
Parliament in the next fiscal year. We envisage a
gaming sector which will not only be responsible
but which will also contribute substantially to our
public revenues and to the expansion of the
national economy with the associated creation of
sustainable jobs.
The Trinidad and Tobago Members Club Association
has agreed to the adoption of standard industry
best practices within their business models focusing
on timely financial recording and reporting and
compliance with the guidelines of the Financial
Intelligence Unit and the banks here in Trinidad and
Tobago.
As an interim arrangement a new taxation and
regulatory framework involving the tagging and
taxation of gaming machines will be effective
January 1, 2015.
That legislative environment was put in place this
year.
PENSI ONS
Madam Deputy Speaker, the Government is
continuing its efforts to ensure national insurance
coverage is provided to all eligible members of
the national community. All earners of emolument
incomes have long been covered. We are now
moving to extend coverage to the approximately
11,300 self-employed persons. We propose to
amend the National Insurance Act to effect this
coverage.
Our senior citizens and retired public service officers
remain among the vulnerable and at risk group in
our society. As a Government with a demonstrable
commitment to our citizens, we cannot be oblivious
to the sterling contribution which these citizens
B U D G E T S T AT E M E N T 2 0 1 5
2 8 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
made to our country. I propose to increase these
pensions.
Many of our citizens have long enjoyed pension
arrangements provided by our public companies.
These citizens have also been supplementing their
pensions through registered annuities programmes
and these programmes have also been available
to the self-employed. I propose to increase the
limits for contributions to registered annuities.
MUTUAL FUND MANAGEMENT
Madam Deputy Speaker, since the first mutual fund
was established in 1982 by virtue of the Unit Trust
Corporation of Trinidad and Tobago Act 1981, our
mutual fund industry has witnessed meaningful and
continuous growth. By June 30, 2014, 60 active
mutual funds managed by 14 market actors had
been registered with the Securities and Exchange
Commission; and those market actors are subject
to regulation by the Securities Act 2012 and the
guidelines on Collective Investment Schemes
issued by the Central Bank of Trinidad and Tobago.
The Government is now moving to bring the
enabling legislation which established the Trinidad
and Tobago Unit Trust Corporation in line with
the guidelines relating to Collective Investment
Schemes as well as with the provisions of the
Securities Act 2012 which regulates the securities
industry of which mutual funds represents an
important component. The new legislation will
improve the flexibility of the Corporation to respond
effectively to the highly competitive nature of the
mutual funds market.
HERI TAGE AND
STABI LI SATI ON FUND
Madam Deputy Speaker, in accordance with the
review requirements under the Trinidad and Tobago
Heritage and Stabilisation Fund Act, legislation to
update the governance and operational structure
of the Heritage and Stabilisation Fund will be
introduced in the new fiscal year.
B U D G E T S T AT E M E N T 2 0 1 5
2 9 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, I now turn to Tobago. First
of all, I wish to place on record that, consistent with
the provisions of the Tobago House of Assembly Act,
the required budget documents were transmitted by
the Tobago House of Assembly within the timeframes
specified under the Act.
I wish also to express my appreciation to the Chief
Secretary of the Tobago House of Assembly, the
Honourable Orville London, for his constructive
proposals relating to the administration and
development of Tobago – proposals which he shared
with me during the course of a consultative meeting
between the Tobago House of Assembly and the
Ministry of Finance and the Economy. The useful
insights of the Secretary of Finance and Enterprise
Development, the Honourable Joel Jack, have also
been helpful.
This meeting as has become customary among
ourselves was conducted in an atmosphere of mutual
understanding and respect.
This Government will continue to collaborate with
the Tobago House of Assembly and the Ministry of
Tobago Development as they boost development
and change in Tobago. We are heartened by
the continued recovery of its key sector: tourism.
The island is witnessing increased visitor arrivals,
both international and domestic, with the resulting
improvement in hotel and guest house occupancy
rates.
We welcome the increased tourism marketing efforts
by the THA to attract not only foreign and domestic
tourists but also to expand international airlift.
With domestic tourism rapidly expanding, Caribbean
Airlines is strengthening its policies and systems with
a view to ensuring a greater alignment between
demand and supply on the domestic air-bridge.
The diversification process in Tobago will continue
through adequate allocations for the development
of the Cove Eco-Industrial and Business Park and for
the Enterprise Assistance Loan and Venture Capital
Fund.
The Tobago House of Assembly is collaborating with
the Ministry of National Security to ensure that the
rich tourism product of Tobago is enjoyed in a safe
and secure environment. Manpower shortages in
the Police Service are being addressed and 2 police
stations are being constructed at Old Grange and
Roxborough.
We are acutely aware of the developmental needs
of Tobago and we will collaborate with the Tobago
House of Assembly on its utilisation of public-private-
partnerships for delivering key infrastructure and
associated services.
An immediate project to broaden and to deepen
the recreational choices for visitors to Tobago and
to provide much-needed amenities for fisher-folk as
well as boat owners, including power and sail yachts
in Tobago and in Trinidad will be the establishment
through a public-private-partnership of a world-
class marina at Petit Trou Lagoon located within the
Tobago Plantation site at Lowlands.
The Ministry of Finance and the Economy and the
Tobago House of Assembly have agreed to meet at
regular intervals to address any issues that might arise
during the next fiscal year.
For fiscal 2015 the budgetary allocation for the
Tobago House of Assembly is $2.609 billion, of which
$2.202 billion will be for recurrent expenditure, $384
million for capital expenditure, and $23.0 million for
the Unemployment Relief Programme.
Furthermore, under the various other heads of
expenditure, Tobago will receive an additional
amount. In total therefore Tobago will receive
$3.7 billion or the equivalent of 5.7 percent of
the national budget. We remain committed to
the recommendations of the Dispute Resolution
Commission.
9 . T OBAGO HOUS E OF AS S E MBLY
AND T OBAGO DE VE L OPME NT
B U D G E T S T AT E M E N T 2 0 1 5
3 0 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, I shall now present my
budget proposals:
1. Manufacturing
To spur development in the non-energy sector,
I propose with effect from January 1, 2015 to:
• increase the rebate from 15.0 percent to
20.0 percent in the production expenditure
rebate programme on use of local labour
in particular in the film, fashion and music
sub-sectors and also to increase the cap
from US$3.0 million to US$8.0 million in the
production expenditure rebate programme;
and
• introduce legislative changes which will
create a climate attractive to foreign direct
investment in the maritime sector;
2. Mutual Fund Industry
I propose to amend the Unit Trust Corporation
of Trinidad and Tobago Act 1981 in key
operational areas, in particular,
• the definition of securities will be modified
to make it consistent with the definition of
securities applicable to all market actors as
stated in the Securities Act 2012;
• the definition of income allocated for
distribution will now exclude realised and
unrealised capital gains from the requirement
to distribute not less than 90.0 percent of such
income;
• the 10.0 percent concentration and control
investment restriction governing unit schemes
will now only be applicable to equity
securities;
• the Corporation is now being endowed with
the power to close, reopen, suspend and
cease to sell units in or otherwise wind-up a
unit scheme;
• the power of the Corporation to restrict its
borrowing to a term not exceeding 90 days
is being modified to extend the payback
period to 180 days;
• the sharing of information with local and
international regulatory authorities in
accordance with any written law will now be
clarified and authorised; and
• the removal of upper limits on unit prices
other than the First Unit Scheme that is the
TT Dollar Growth and Income Fund will allow
the Corporation to issue additional or new
schemes at such prices and with such limits
on minimum and maximum subscriptions as
the Corporation might deem appropriate for
market conditions.
3. Heritage and Stabilisation Fund
I propose to amend the Trinidad and Tobago
Heritage and Stabilisation Fund Act 2007
Chapter 70:09 to provide for:
• creation of a legal entity by including a
provision to establish the Heritage and
Stabilisation Fund as a Body Corporate;
• legal protection of the Heritage and
Stabilisation Fund Board members by the
inclusion of a provision to allow for the
indemnity of the Board of Governors of the
Heritage and Stabilisation Fund;
• increase in the floor of the Fund from US$1.0
billion which existed in 2010 to US$4.0 billion
1 0 . F I S CAL AND OT HE R ME AS URE S
B U D G E T S T AT E M E N T 2 0 1 5
3 1 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
which increases the amount below which
withdrawals cannot be made;
• amendments to Sections 13 and 14 to make
explicit that the assessments of projected
versus actual revenues for each quarter are to
be conducted on a year-to-date aggregate
basis; and
• extension of the timeframe for meeting
withdrawal requests from 48 hours to 72 hours.
4. Tax Administration
Madam Deputy Speaker, I propose to offer an
amnesty for tax penalties and interest for late
filing of returns and late payment of income,
corporation and Value-Added Taxes, business
levy and environmental levy. The amnesty
will apply to returns, penalties and interest on
outstanding tax liabilities for years of income up
to 2013.
Accordingly, all individuals and corporations
who have outstanding tax returns or outstanding
tax liabilities and associated interest charges will
have these interest and penalties waived if they
comply by March 31, 2015. This measure will
require amendments to the Income Tax Act, the
Corporation Tax Act and the Value Added Tax
Act. This measure takes place with immediate
effect and will expire on March 31, 2015.
I also propose to waive all penalties outstanding
or chargeable on the filing by corporations of
documents with the Registrar of Companies.
The proposed waiver will be applicable until
March 31, 2015.
5. Capital Market: Tax-deductible Bonds
I propose to introduce a savings bond which
will allow small investors and pensioners to
purchase bonds in much smaller denominations,
including $1,000 per bond. Purchases of bonds
from the Government will be tax deductible up
to $5,000 per annum for a period of 5 years.
6. Social Safety Net
I propose to expand the social safety net
by modifying a number of benefits effective
October 1, 2014:
i. the disability grant will be increased by $300
per month. The new grant of $1,800 per
month will cost an additional $86.8 million
and will impact 24,100 differently-abled
individuals. In 2010, the disability grant was
$1,300;
ii. the public assistance grant will be increased
by $300 across all bands. The additional
expenditure will be $89.3 million and will
impact 24,797 citizens. The represents an
average of 20.0 percent increase across all
bands since 2010;
iii. the personal allowances for individuals
aged 60 and over will be increased from
$60,000 to $72,000 for the calculation of
individual taxes; at a cost of $53.3 million
this measure will take effect from January
1, 2015;
iv. the Servol Adolescent Programme and the
Parent Outreach Programme will have their
allocations increased by 12.0 percent; and
v. a baby care grant will provide financial
assistance in an amount of $500 per month
for 1 year only for any child born to under
privileged parents during the course of the
next fiscal year.
7. Families of deceased Security Personnel
I propose to introduce a new Fund from which
could be drawn the sum of $1.0 million which
will be placed in the estate of a member of
the State protective services killed in the line of
duty.
8. Fair-Share Programme
Effective October 1, 2014, I propose to increase
the procurement value under the Fair-Share
B U D G E T S T AT E M E N T 2 0 1 5
3 2 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Programme from $1.0 million to $1.5 million, to
further boost the small business sector.
9. Pensions
I propose to continue the process of facilitating
the ease of living for our senior citizens. With
effect from October 1, 2014:
Senior Citizens
i. the senior citizens pension will be increased
by $500 per month to $3,500 per month
and will cost an additional $200.0 million
and impact 84,720 senior citizens; the senior
citizens pension will now be adjusted with
the receipt of other pensions with a cap of
$4,500. In 2010, the senior citizens pension was
$1,950;
Public Officers
ii. the monthly pension for retired public officers
will be increased by $500 per month with a
minimum of $3,500 per month at an additional
cost of $240.0 million and will impact 35,000
retirees. In 2010, the minimum pension for
retired public officers was $1,950;
Self-Employed
I propose to bring the self-employed into the
national insurance system with an amendment
to the National Insurance Act. This proposal will
be effective January 1, 2015 and will impact
initially 11,300 self-employed.
To that end:
• any self-employed person in the age group
57 and over at the commencement of
coverage in the year 2015 will receive a one-
off payment equivalent to three times their
contribution.
• Anyone in the age group 50-56 at the
commencement of this coverage who
contributed fully in each year prior to
retirement will be credited with additional
contributions to allow them to receive the
minimum monthly pension payments.
The Government will inject $12.9 million into
the national insurance system to cover the
cost of the additional contributions for those
self-employed individuals; and
• the subsidisation for the payment of
contributions by low-income self-employed
persons, defined as persons who earn less
than $3,000 per month by the National
Insurance Board of Trinidad and Tobago, in
an amount equivalent to two-thirds of the
contributions due from eligible low-income
self-employed persons.
The Government will inject a further $41.0
million into the national insurance system to
meet this liability over the next 5 years but
with an injection of $4.0 million for fiscal 2015.
• the transition for the self-employed into the
National Insurance system will be fully-funded
for the first year only at an additional cost of
$2.0 million.
10. Agriculture
I propose to continue our focus on achieving
food security and to that end and effective
January 1, 2015:
i. all fines related to praedial larceny will be
increased by 50.0 percent;
ii. the cost of establishing approved
facilities for agro-processing of approved
commodities will be subject to a rebate of
50.0 percent up to a maximum of $100,000;
iii. the cost of refurbishing approved
facilities for agro-processing of approved
commodities will be subject to a rebate of
50.0 percent up to a maximum of $50,000;
iv. 40.0 percent of the cost of Hazard
Analysis and Critical Control Points for
agro-processors will be refunded up to a
maximum of $150,000; and
I also propose to provide the Agricultural
Development Bank with an allocation of $75.0
million.
B U D G E T S T AT E M E N T 2 0 1 5
3 3 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Registered Annuities
I propose effective January 1, 2015, to increase
from $30,000 to $50,000 the limit for contributions
to registered annuities. This will impact 15,000
citizens at a cost of $75.0 million.
Caroni
I propose to that the balance remaining upon
the termination of the Reserve Fund in May
2016 be distributed on a pro rata basis to all
pensioners and deferred pensioners of Caroni
(1975) Limited.
I am also putting in place a mechanism
through which those beneficiaries who had not
yet paid for their residential service lots could
now do so through a commitment to Caroni of
their portion of the residual balance.
11. Road Usage
I propose to increase fines by 50.0 percent: for
speeding, driving under the influence, driving
without insurance, possessing fraudulent motor
vehicle certificates, driving with expired driving
license; and for individuals producing or selling
fraudulent insurance certificates.
I propose to finally meet the outstanding
reimbursements owed since 2005 to registered
maxi-taxi owners for their payments of Motor
Vehicle taxes and Value Added Tax.
12. Hybrid and Electric-powered Vehicles
I propose with effect from January 1, 2015 to
exempt motor vehicle tax and VAT on new or
used hybrid and electric-powered vehicles not
older than 2 years for a period of 5 years for
private or commercial use.
13. Housing
I propose to expand the existing 2.0 percent
mortgage programme by increasing qualifying
property values from $625,000 to $850,000 and
by increasing the combined monthly income
of households from $8,000 to $10,000 and to
supplement that programme by introducing
a new 5.0 percent mortgage programme for
households with a combined monthly income
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
measure will benefit 26,100 applicants within
the HDC framework and a similar amount in the
private sector; and
I propose to increase the tax allowance from
$18,000 to $25,000 per household per annum on
mortgage interest paid in the year of income
for first time home owners for 5 years, including
those years utilised by existing beneficiaries.
14. Labour
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.
B U D G E T S T AT E M E N T 2 0 1 5
3 4 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, I wish to direct my attention
to our estimates of revenue and expenditure for
fiscal 2015. As is usual practice, we have estimated
oil and gas prices on the basis of our interactions
with relevant international organisations.
In respect of our revenue assumptions we are
utilising a price of US$80.00 per barrel for oil and a
gas price of US$2.75 per mmBtu. Following these
price assumptions we are projecting the following
for:
• Total revenue : $60.351 billion
• Oil revenue : $21.223 billion
• Non-oil revenue : $39.128 billion
• Total expenditure
net of capital
repayments and sinking
fund contributions : .664 billion
Madam Deputy Speaker, for fiscal 2015, the
Government envisages a fiscal deficit of 2.3
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.
We are making the appropriate capital investments
to drive modernisation but this is being done in the
context of the consolidation of our fiscal position.
We are ensuring that the budget deficit does not
undermine monetary stability nor crowd-out the
private sector.
Madam Deputy Speaker, pursuant to our public
policy agenda I have made appropriate allocations
to the various Ministries as follows:
• Education and Training : $10.126 billion
• National Security : $ 6.994 billion
• Health : $ 5.545 billion
• Public Utilities : $ 3.932 billion
• Housing : $ 2.877 billion
• Local Government : $ 2.649 billion
• Works and Infrastructure : $ 2.542 billion
• Transport : $ 1.984 billion
• Agriculture : $ 1.328 billion
1 1 . E S T I MAT E S OF RE VE NUE
AND E XPE NDI T URE : 2 0 1 4 - 2 0 1 5
B U D G E T S T AT E M E N T 2 0 1 5
3 5 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, in 2010, the people
of Trinidad and Tobago elected the People’s
Partnership under the dynamic leadership of the
Honourable Kamla Persad-Bissessar. The people
elected us because they wanted a government
which had greater conviction in its strategies
and programmes for the future of our country.
We developed a coherent framework of what
we wanted to achieve. Since that time, we have
consolidated the economic, social, political and
financial stability of our country as reflected in all
our macro-economic data.
We created a vibrant economic environment
which inspires confidence among domestic
and foreign investors. We are now in a recovery
phase generating quality jobs. We will continue
to sustain that recovery by focusing on long-term
fiscal consolidation, debt-sustainability and by
implementing major infrastructure projects.
The proposed procurement reform legislation
represents a key underpinning for establishing
transparency and accountability. This framework
of action will raise our capacity to progress as a
nation and will help in safeguarding our financial
and economic stability.
Madam Deputy Speaker, the Republic of Trinidad
and Tobago is a mature democracy. We are
strengthening this democracy as we put in place
a set of constitutional principles relating to the
terms of office of Prime Ministers, to the recall of
parliamentarians and to run-off elections. We are
ensuring that the country’s prosperity is equitably
distributed among all our citizens. We are also
ensuring that our citizens continue to thrive in an
environment of safety and security.
As we broaden and deepen our major economic
sectors, commercial opportunities are emerging
whether they are in downstream oil and gas or in ICT
or in financial services. We are assisting our young
people to invest in their skills and in their future.
We are assisting our low-and middle-income
families to acquire comfortable and affordable
housing and we are putting in place mechanisms
and facilities to allow our citizenry to access timely
quality healthcare and medical services.
Madam Deputy Speaker, while the restoration
of financial and economic stability was high
on our agenda, we did not refrain from making
substantive efforts to modernise our country and
to create an inclusive society. We have delivered
the commitments made in May 2010 and we
have done so within a coherent and consistent
framework and in the context of fiscal prudence.
Let me cite some of those achievements:
• the San Fernando - Point Fortin highway is being
phased in; the Golconda-Debe segment is
already in use and the Mosquito Creek-Penal
segment will be available in 2015;
• new and modern hospitals are now under
construction;
• Since 2010, 83 new schools have been built;
• Since 2010, 4,500 repair and maintenance
projects have been undertaken on our nation’s
schools;
• At present, 67 schools are under construction;
• the Fair-Share programme has been increased
by 50.0 percent since 2010;
• the soon-to-be commissioned National Aquatic
Centre, the National Cycle track and the National
Tennis complex will catalyse competitive sporting
teams and sport tourism;
1 2 . CONCL US I ON
B U D G E T S T AT E M E N T 2 0 1 5
3 6 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
• the airlift to Trinidad and Tobago is being
expanded, building on the services now being
provided by Condor Airlines and Apollo Airlines to
Tobago and Jet Blue to Port of Spain;
• domestic food inflation is now running at a rate of
3.5 percent in the first 6 months of 2014, the lowest
in 21 years;
• new Procurement legislation will bring to public
sector contracts confidence-inducing fair,
efficient and transparent procedures;
• the number of serious crimes has been significantly
reduced;
• the Childrens’ Life Fund is fully operational and
is providing timely and needy assistance to all
applicants;
• 75,000 laptops have been provided and laptops
will continue to be provided to all incoming
students to secondary schools;
• emergency relief assistance has been provided
to 750 households affected by severe weather
conditions, including flooding;
• dialysis treatment is now virtually free to the
public through the public and private health-
care institutions;
• cardiac services, including open-heart surgeries
have been delivered to 114 patients in the first 9
months of fiscal 2014;
• surgical services, including cataract and CT/
MRI scans are now being provided to patients
who are on the listed services for a minimum of 3
months; in the first month of the programme, June
2014, 105 surgeries have been performed;
• The number of rig days in the energy sector has
increased from 1,132 in 2010 to 2,485 in 2013;
• The student participation rate in tertiary education
has increased from 42 percent in 2010 to 65
percent in 2014. We have surpassed our target of
60.0 percent;
• The minimum wage which was $9.00 per hour in
2010 has been increased to $15.00 per hour; and
• The VAT backlog owed to businesses which
amounted to over $5.0 billion in 2010 has been
substantially reduced and we anticipate that the
entire amount now outstanding will be settled by
the end of the new fiscal year.
Madam Deputy Speaker, the welfare of our State
is being safeguarded and we are convinced that
this Budget will continue to consolidate our vision of
a stronger, fairer and smarter Trinidad and Tobago.
Madam Deputy Speaker, I commend this Budget to
this Honourable House and I beg to move.
Design and Layout: Paria Publishing Co. Ltd.
Cover Design: Ample
Printing: Caribbean Print Technologies Ltd.
doc_260440201.pdf
Madam Deputy Speaker, it gives me great pleasure to present to this Honourable House the fifth Budget of the Peoples Partnership Administration under the transformational leadership of our Prime Minister.
B U D G E T S T AT E M E N T 2 0 1 5
1 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
B U D G E T S T AT 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
GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO
B U D G E T S T AT E M E N T 2 0 1 5
2 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
B U D G E T S T AT E M E N T 2 0 1 5
3 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
CONT E NT S
1. Introduction 4
2. Economic Context and Performance 5
Medium-Term Outlook 6
Ease of Doing Business 7
Double Tax Agreements 7
Bankruptcy and Insolvency Legislation 7
Public Offering Programme 7
3. Economic Recovery-Oriented Environment 7
Securing Strategic Investors 8
Public-Private-Partnerships Programme 8
Financial Stability 9
Colonial Life Insurance Company Limited 9
Hindu Credit Union 9
Financial Regulation and Supervision 9
Capital Market 10
Manufacturing 11
4. Stimulating Growth and Investment 11
Financial Services 12
Tourism 12
Agriculture 13
Energy 14
Information and
Communication Technology 16
Major Infrastructure 16
Water and Waste Water Services 16
Historic Buildings 17
Highways 17
Office Accommodation 18
5. Building An Inclusive Society 19
Education 19
Early Childhood Care
and Education (ECCE) 19
Primary and Secondary 19
Tertiary 19
Health 20
Housing 21
Transport 22
Social Safety-Net Services 22
National Sports 23
6. Labour 24
7. Security and Public Order 25
8. Reform Agenda 26
Procurement 26
Constitutional Reform 26
Tax Administration 27
Commission on Gambling 27
Pensions 27
Mutual Fund Management 28
Heritage and Stabilisation Fund 28
9. Tobago House of Assembly
and Tobago Development 29
10. Fiscal and Other Measures 30
1. Manufacturing 30
2. Mutual Fund Industry 30
3. Heritage and Stabilisation Fund 30
4. Tax Administration 31
5. Capital Market:
Tax-deductible Bonds 31
6. Social Safety Net 31
7. Families of deceased
Security Personnel 31
8. Fair-Share Programme 31
9. Pensions 32
10. Agriculture 32
11. Road Usage 33
12. Hybrid and Electric-powered
Vehicles 33
13. Housing 33
14. Labour 33
11. Estimates of Revenue
and Expenditure: 2014-2015 34
12. Conclusion 35
B U D G E T S T AT E M E N T 2 0 1 5
4 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, it gives me great pleasure
to present to this Honourable House the fifth Budget
of the Peoples’ Partnership Administration under
the transformational leadership of our Prime
Minister, the Honourable Kamla Persad-Bissessar.
This Administration has traversed a very challenging
period over the past 4 years; but we have remained
resilient and strong.
Madam Deputy Speaker, as we have systematically
overcome the several challenges which had
confronted us, we are progressing with confidence
and optimism to a renewed mandate in 2015 for
a further 5 years. Indeed, the single-mindedness
and clarity of vision of our Honourable Prime
Minister have been essential in ensuring that our
economy returned to more inclusive, fair and
equitable growth. We are witnessing improving
living standards among all citizens.
We have in place policies which are extending a
caring hand to those who experience difficulties
and we are creating opportunities for all our
citizens to participate in our growing economy. This
financial year 2015 Budget Statement is formulated
around the theme: Empowering our People through
Sustained Economic Growth and Prosperity.
I wish to thank, for their selfless support, the
Honourable Vasant Bharath, Minister of Trade,
Industry, Investment and Communications and
Minister in the Ministry of Finance and the Economy
and the Honourable Rudranath Indarsingh, Minister
of State in the Ministry of Finance and the Economy.
Their guidance in developing our plans and
strategies for modernising the country has been
constructive and enlightening.
My other colleagues have also played critical roles
in charting our national agenda for improving the
welfare of the people of Trinidad and Tobago; and
of course this public policy agenda has also been
shaped by the several submissions which I received
by professional associations, non-governmental
organisations and concerned individuals
throughout the length and breadth of our country;
for these national insights I am extremely thankful.
Madam Deputy Speaker, I must also stress that
our plans and programmes could not have been
achieved without the professional advice and
unstinting support of the staff of the Ministry of
Finance and the Economy. I owe them a debt of
gratitude as they have worked assiduously, tirelessly
and beyond the call of duty in the preparation of
the documents which I have laid in this Parliament
today. These documents provide a comprehensive
overview of the performance of the Government
over the past year as well as details of revenue and
expenditure for 2015.
1 . I NT RODUCT I ON
B U D G E T S T AT E M E N T 2 0 1 5
5 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, our economy has
performed admirably in the face of the adverse
cumulative effects of the difficult external
environment and the turbulence in financial
markets brought about by the 2008-2009 global
financial crisis.
The spill-over impact was inevitable in the context of
our increasing economic and financial integration
into the world economy; but our strong economic
fundamentals provided a substantial buffer which
allowed this country to emerge very quickly from
the negative effects of that crisis.
We are now encouraged by the strengthening
recovery of the global economy. Economic
activity is gaining momentum and the International
Monetary Fund (IMF) in its July 2014 Outlook is
projecting an expansion of 3.4 percent in 2014 and
4.0 percent in 2015. While many economic and
geopolitical risks remain, these growth projections
for the global economy are good news for
emerging and developing countries.
Madam Deputy Speaker, the growth rate in most
Caribbean countries has been improving as several
economies which are more tourism-oriented are
benefitting from the higher levels of growth in
the United States as well as from the economic
recovery in the United Kingdom. We look to the
eventual turnaround of the Euro Zone area to add
a further boost to these economies.
In this context, Trinidad and Tobago will benefit from
the improving world and regional economy and
with our strong macro-economic fundamentals
and appropriate monetary policy we will be able
to shift our current growth rate to a higher and
more sustainable pace.
Madam Deputy Speaker, we have achieved
a great deal over the past 4 years and in a very
difficult environment:
• growth has been restored after 3 years of decline.
We have had in the period 2012-2014, 3 years
of positive economic growth, notwithstanding
extensive and prolonged maintenance activity
in the energy sector. The non-energy sector in
particular, has shown continued strength and
buoyancy;
• this economic growth is taking place in the
context of job creation and stable inflation rates.
In the period January – September 2013 the
unemployment rate averaged 3.6 percent and
the average for the year as well as for 2014 is
projected to maintain the same level.
The inflation rate had averaged 5.1 percent in
2013; but as at June 2014, the average rate has
fallen to 2.8 percent - the lowest in 10 years;
• the fiscal deficit is on course to meet our 2016
objective of bringing the fiscal accounts into
balance; notwithstanding the budgeted deficit
of $6.357 billion for fiscal 2014, a surplus of $1.967
billion had been realised as at the end of June
2014;
• public sector debt remains at a sustainable level
at 43.0 percent of Gross Domestic Product (GDP)
with the external debt service ratio remaining
in single digit; these debt ratios are within well-
established international benchmarks;
• the balance of payments remains robust with the
generation of consistent surpluses on the current
account and with steady flows of private direct
investment. As a result, gross official reserves
2 . E CONOMI C CONT E XT
AND PE RF ORMANCE
B U D G E T S T AT E M E N T 2 0 1 5
6 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
stood at US$10.0 billion in December 2013,
covering approximately 12 months of imports; by
July 2014, the gross official reserves had reached
US$10.2 billion;
• gross foreign direct investment has increased
robustly on an annual basis since 2010 and is
projected at US$3.3 billion for 2014;
• substantial financial buffers have been built up
to meet contingencies; apart from our healthy
official reserves, the Heritage and Stabilisation
Fund now amounts to US$5.6 billion;
• the rating agencies Standard and Poors, Moody’s
Investors Services and Caribbean Information and
Credit Rating Services Limited, have maintained
the country’s excellent investment grade ratings;
and
• access to international capital markets have
been facilitated by those ratings with Trinidad
and Tobago being able to raise in December
2013 a US$550.0 million 10-year Bond which was
10 times oversubscribed.
In short, as a nation, we are better off today than 4
years ago.
MEDI UM-TERM OUTLOOK
Madam Deputy Speaker, in the context of other
similarly-placed emerging and developing
countries our economic performance has been
excellent. Moreover, the foundation has been laid
for a sustainable recovery. From this position of
strength our economy is undergoing an important
transition. Over the medium-term 2015-2017, the
growth momentum is expected to be maintained
and the balance of payments is projected to
continue to generate surpluses and increasing
levels of reserves.
Madam Deputy Speaker, notwithstanding these
successes, we recognise that there are many
underlying issues which need to be addressed if we
are to sustain our growth momentum.
Having dealt with the issue of the return to growth
and the financial problems generated by the
failure of Colonial Life Insurance Company Limited
(CLICO) and Hindu Credit Union (HCU) we are
now turning our attention over the medium-term
to the reform measures necessary to transform our
economy.
B U D G E T S T AT E M E N T 2 0 1 5
7 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
EASE OF DOING BUSINESS
Madam Deputy Speaker, with our encouraging
medium-term economic outlook this Kamla
Persad-Bissessar-led Administration will continue to
facilitate a more conducive economic and business
environment to attract both domestic and foreign
investment. These investment inflows are key drivers
for financing sustainable growth and development.
The Government has also made substantial strides
in improving the regulatory environment for business
activities.
We have been reducing the administrative burden
on companies doing business in Trinidad and Tobago
as demonstrated by the improvement in our ranking
in the World Bank Group’s 2014 Doing Business Report.
This ranking has been improving consistently. In fact,
we envisage a higher ranking in the 2015 Report of
the World Bank; this notwithstanding, there remains
a number of challenges and it is our intention to
address these in a focused manner.
DOUBLE TAX AGREEMENTS
Madam Deputy Speaker, deeper external business
and economic relationships are being fostered.
We are continuing to negotiate Double Tax treaty
agreements, the latest one being with the Federal
Republic of Germany.
This treaty will be mutually beneficial to both
countries, especially since Trinidad and Tobago is
the third largest destination for German investment
in Latin America.
We have put a new team in place to address these
matters and over the next fiscal year we have
placed on the agenda negotiations for Double Tax
Treaty Agreements with several countries including:
Japan, United Kingdom, Luxemburg, South Korea,
and the Netherlands.
BANKRUPTCY AND INSOLVENCY
LEGISLATION
Madam Deputy Speaker, the work on the ease of
doing business has been further consolidated with
the May 26, 2014 proclamation of the Bankruptcy
and Insolvency Act, 2007. The proclamation with
accompanying regulations established the Office of
the Supervisor of Insolvency in the Ministry of Finance
and the Economy and allows for the treatment of
both corporate and individual bankruptcy. This is the
first major overhaul of this legislation in almost 100
years and it opens up the possibility of encouraging
corporate rehabilitation as an alternative to
liquidation. In this framework the flow of credit to the
economy will be expanded.
The role of the private sector as the driver of
growth is being consolidated as we continue
to build a competitive and efficient economy.
Entrepreneurship is being fostered on a number of
fronts, including Initial Public Offerings, the securing
of strategic partners for selective state enterprises,
and the utilisation of the public-private-partnership
model for delivering infrastructure and public
services.
PUBLIC OFFERING PROGRAMME
Madam Deputy Speaker, the Government’s Public
Offering Programme is under way. The Initial Public
Offering for First Citizens Bank Limited was successful
by any standard of measurement. The 48,000,000
shares on offer were 3.12 times oversubscribed by
over 12,400 applicants. The IPO has added more
than 8,000 new investors to the existing pool of equity
investors and the country is on the way to achieving
the public policy objective of the widest possible
participation of all citizens in share ownership.
3 . E CONOMI C RE COVE RY
- ORI E NT E D E NVI RONME NT :
B U D G E T S T AT E M E N T 2 0 1 5
8 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Despite the concerns expressed by the national
community with respect to the inordinate purchase
amount by one staff member of First Citizens and
which is now subject to an investigation by the
Trinidad and Tobago Securities and Exchange
Commission, the share price on September 5, 2014
was $35.96, some 63.5 percent higher than the
$22 price which prevailed at the date of listing on
September 16, 2013.
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
the shareholding of the Trinidad and Tobago NGL
Limited which company holds the 39.0 percent
shareholding of the National Gas Company in
Phoenix Park Gas Processors Limited.
This will be a historic event, being the first listing of
an energy stock on the local stock market. We
shall continue to spread share-ownership as widely
as possible among the population thereby giving
citizens a direct stake in industrial successes.
SECURING STRATEGIC INVESTORS
Madam Deputy Speaker, a consultant has been
engaged to prepare a Request for Proposals
for securing a strategic investor for The Vehicle
Management Corporation of Trinidad and Tobago
Limited. The engagement of consultancy services
to undertake a similar exercise for the National
Helicopter Services Limited is well underway.
These strategic investors will be required to bring
to the operations of those 2 companies new
capital, access to new markets and state-of-the-art
technology.
The Government is determined to improve the
operational efficiency and effectiveness as well
as the governance of our state enterprises. In
fact, in 2013, the state enterprise on a collective
basis generated profits of $7.6 billion and the
Caribbean Information and Credit Rating Services
Limited has already completed initial rating reports
for 2 enterprises: The Point Lisas Industrial Port
Development Company Limited and the National
Helicopter Services Limited.
It has also initiated review work for the Vehicle
Management Corporation of Trinidad and Tobago
Limited and National Flour Mills Limited. These
reviews will chart a course for greater efficiency and
effectiveness in our state enterprises. Further annual
reviews of these enterprises will be undertaken to
measure their progress and annually more state
enterprises will be added to the process as we
improve the operations of these companies.
PUBLIC-PRIVATE-PARTNERSHIPS
PROGRAMME
Madam Deputy Speaker, the introduction of public-
private-partnerships as a mechanism for accelerating
the installation of the requisite infrastructure in several
sectors has been under consideration for some
time. Progress was initially slow as we generated
the capacity within the Ministry of Finance and the
Economy to manage this initiative.
I am pleased to advise this Honourable House that
2 pilot projects in the health and education sectors
under a technical assistance programme provided
by the Inter-American Development Bank are now
in progress. The consultancy contracts are in place
for securing transaction advisors for 3 national
diagnostic centres and for 10 primary schools and
10 early childhood care and education centres.
I expect that by February 2015 the preferred
contractors for these projects will have been
secured. In October 2016 the diagnostic centres will
begin actual service delivery and in January 2017
the 20 schools will be ready for enrolment.
The Airports Authority of Trinidad and Tobago has
requested the International Finance Corporation,
the private sector arm of the World Bank Group,
to submit a proposal which will lead to improved
services at our 2 international airports; the Piarco
International Airport and the ANR Robinson
International Airport. As we build our capacity for
identifying and managing Public Private Partnership
projects, we will roll-out a range of infrastructure and
service-delivery projects which will provide attractive
business opportunities to potential investors.
B U D G E T S T AT E M E N T 2 0 1 5
9 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
FINANCIAL STABILITY
Madam Deputy Speaker, we have made substantial
progress in bringing stability to our financial system.
The issues surrounding CLICO and HCU have been
largely resolved, thereby re-establishing our long
record of financial stability which had under-pinned
our positive and robust growth rate for many years.
COLONIAL LIFE INSURANCE COMPANY
LIMITED
Our recent impressive economic outlook could not
have been achieved if we did not move aggressively
to repair our fiscal and financial balance sheets in
the aftermath of the collapse of CLICO. Government
quickly reformed the policy framework for addressing
the financial consequences of the CLICO crisis. The
new strategy was essential for strengthening private
sector confidence.
It has dealt effectively with investors in the short-term
investment products, more than 13,600 of whom
have become unit holders in the CLICO Investment
Fund, managed by the CLICO Trust Corporation.
Approximately 830 investors in the short-term
investment products did not accept the offer while
more than 1,160 non-resident bond holders have
advanced and are advancing their claims through
the machineries of the legal security commissions in
their respective countries.
Throughout this period of uncertainty, this
Government has ensured that the investments of
some 225,000 traditional policy holders have been
protected and assured. Indeed, CLICO has done
exceptionally well in terms of writing new business
while maintaining substantial traditional business
throughout the crisis. I will like to publicly commend
the Board, management and staff for their
commitment and hard work during the last 4 years.
Government is taking steps to recover the outlay
which became necessary to contain the crisis in
CLICO and the CLICO Investment Bank which
also impacted their parent company, CL Financial
Limited. To effect an orderly settlement of this debt,
Government has embarked on a medium-term
strategy to secure the return of the outlay of these
funds. This has informed the basic parameters of a
comprehensive Shareholders’ Agreement, a key
component of which is a proper restructuring of those
companies with proper governance practices in
what is left of the Group. We now await the outcome
of the Methanol Holdings arbitration. Following this, a
more detailed report will be provided.
Madam Deputy Speaker, I am pleased to state that
without this intervention we would have seen many
of the companies in the Group facing liquidation
with the attendant loss of jobs and other social and
economic hardships which generally accompany
such occurrences. The adverse experiences of
several advanced countries are testament to this
significant accomplishment.
HINDU CREDIT UNION
Madam Deputy Speaker, a second related
matter is the settlement of the debt to more than
147,700 shareholders and depositors of the Hindu
Credit Union. Approximately 18,000 shareholders
and depositors with holdings under $75,000 have
received $136.1 million in cash; 1,330 members
holding in excess of $75,000 have also received in
cash $99.0 million and 1,400 members will receive
bonds to the value of $340.0 million. The bond
issuance programme is due to commence early in
the new fiscal year.
As in the case of CLICO our intervention has
alleviated the substantial social and economic
hardship experienced by the shareholders and
depositors of this failed institution. We have now put
that crisis substantially behind us.
FINANCIAL REGULATION AND
SUPERVISION
Madam Deputy Speaker, the growth-oriented
environment is being anchored in a strong and
modern financial structure. Partly due to the
economic crises associated with the collapse
of CLICO and HCU, we are continuing to give
consideration to improving our existing financial
B U D G E T S T AT E M E N T 2 0 1 5
1 0 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
stability framework for mitigating systemic risk and
for applying heightened prudential standards for our
large and complex institutions.
A high-level Task Force on Integrated Financial
Regulation and Supervision, under the chairmanship
of an independent consultant, has undertaken
research and consultation to determine the most
feasible model for integrated financial regulation
and supervision in Trinidad and Tobago.
On September 3, 2014, I received the Report of the
Task Force which outlined the way forward for such a
financial stability framework. The recommendations
will inform the preparation of a new Green Paper
which will be sensitive to our stage of development
as well as to the expected evolution of the capital
market and the financial sector in the country.
CAPITAL MARKET
Madam Deputy Speaker, we have recently
strengthened the Securities Act 2012 to bring it in
line with international best practice, in particular on
prosecuting market misconduct and manipulation
as well as on measuring and evaluating risk exposure
in the securities industry.
This legislative updating will bring enhanced
market confidence which is not only critical for
financial development but also for growth and
development of the country. We shall soon be laying
in Parliament a revised Insurance Act which reflects
the deliberations of the Joint Select Committee of
Parliament which worked diligently on this legislation
over the past year. It has broad industry support and
is modelled on Canadian Law and includes a major
strengthening of regulatory capital.
Subsequent to the passage of this legislation, we
shall lay in Parliament a new Credit Union Bill with
international standards and best practices from
other jurisdictions which will transfer supervision of
credit unions from the Commissioner for Cooperative
Development to the Central Bank of Trinidad and
Tobago.
As our financial regulatory framework becomes all-
encompassing, the financial services industry will
continue to expand and become more diversified.
This evolution in regulatory control is facilitating
the work of the Trinidad and Tobago International
Financial Centre which is strengthening its capacity
to attract and bring into Trinidad and Tobago new
investors in the financial services industry.
We have also laid in Parliament the Miscellaneous
Provisions (Proceeds of Crime) Bill which significantly
strengthens our framework for Anti-Money
Laundering and Counter Terrorism Financing
activities.
Madam Deputy Speaker, saving bonds was once
an important investment instrument in Trinidad and
Tobago contributing to the funding of government
services.
Bond sales and purchases also facilitated the
development of the capital market bringing in small
investors who purchased bonds in much smaller
denominations than the traditional large investors.
The Government proposes to reactivate this niche
market with the introduction of a tax-deductible
savings bond — a confidence-inducing measure
targeting in particular young persons seeking to
save for the future as well as pensioners seeking a
better return on their investments.
Our increasing integration into the international
financial system is now being consolidated with
our participation in Euroclear which is one of the
principal clearing houses for Euro bonds and other
securities. The settlement and safe delivery of bonds
on behalf of local investors within Euroclear will help
to build the international credibility of Trinidad and
Tobago and give local investors improved access to
international capital markets.
B U D G E T S T AT E M E N T 2 0 1 5
1 1 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, technical work continues
on the 5 growth poles which we have established
in special and regional areas for spurring economic
growth and development and work is also taking
place on port rationalisation. The recently-
commissioned, Galeota Port, will provide significant
logistic support to the oil and gas industry in the
south-east region and in the process will generate
economic development and job creation.
In support of these growth-enhancing activities,
we are encouraging businesses and academic
researchers to collaborate on the stimulation of
innovation at the level of firms. For this purpose, we
have established an Innovation Fund capitalised
with $50.0 million to be utilised as matching grants
for the innovation needs of companies. We are
consolidating our new ranking as an innovation-
driven country, up from the efficiency-driven
country category as determined in the latest
Global Competitive Index Report.
Madam Deputy Speaker, I turn now to the progress
being made in key sectors of our economy.
MANUFACTURING
Madam Deputy Speaker, we are focusing on a
trade policy and strategy which has at its core the
diversification of our production base and export
markets. Our newest economic zone: the Tamana
InTech Park built with an investment of $2.2 billion is
leading the drive to attract high-value tenants who
will not only develop human capital but also create
high-quality and sustainable jobs.
Marketing has begun to attract investors in the
fields of medical care and health tourism. We have
agreed on the fiscal framework for the introduction
of a Tier Three Data Centre in the Park which will
position Trinidad and Tobago as a regional hub
for high-quality disaster data-recovery and a
production centre for local and regional planners.
The public policy agenda is being driven by 2
newly-mandated companies: invesTT and exporTT.
The goal of these 2 companies is to facilitate the
creation of competitive firms in the non-energy
manufacturing and service sectors. The existing
tax incentive infrastructure has been driving an
expanding manufacturing sector which now
comprises approximately 9.0 percent of gross
domestic product. The Government proposes to
provide incentives to develop the following new
sectors which we are targeting:
• firstly, our food and beverage industry which
has been expanding in both regional and
international markets. We propose to establish
a subsidy for testing services in order to assist our
manufacturers in covering such costs with a view
to meeting the quality requirements demanded
by international markets;
• next, the creative, arts and entertainment sector
which is now in export mode. We are moving
to strengthen these efforts. To this end, the
Government proposes to increase the rebate for
the use of local labour, in particular in the film,
fashion and music sub-sectors;
• thirdly, the maritime sector is being facilitated
through legislative changes which will create a
climate attractive to foreign direct investment
in that sector. Shipping legislation which has
already been finalised by the Chief Parliamentary
Counsel will soon be laid in Parliament; and
• finally, the yachting industry has long been
providing storage and repair services for cruising
yachts and light commercial marine and fishing
vessels.
4 . S T I MUL AT I NG GROWT H
AND I NVE S T ME NT
B U D G E T S T AT E M E N T 2 0 1 5
1 2 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
The Government proposes to strengthen this
industry by introducing at the University of
Trinidad and Tobago (UTT) advanced training for
yacht building and maintenance; to this end, the
UTT has entered into a strategic partnership with
the Southhampton Institute – Warsash Maritime
Centre for Maritime Training. The graduates
from the Institute will be certified by the National
Training Agency and their initial training will be
organised within the yachting industry.
Madam Deputy Speaker, the Government will
continue to partner with the new investors in
developing these sectors which will contribute to
the re-balancing of the economy in favour of the
non-oil energy sector and to the development of a
sustainable economy.
Madam Deputy Speaker, I now turn to the Financial
Services Sector:
FINANCIAL SERVICES
Madam Deputy Speaker, our financial services
sector has become an important pillar in our
economy contributing approximately 15.0 percent
of Gross Domestic Product and facilitating the
modernisation of Trinidad and Tobago. We have
already become the financial centre of the
region; and the financial institutions shared-support
services subsector is now consolidating with a
marketing strategy to attract the middle and back-
office operations of financial institutions - 2 such
businesses are now in operation with 1,000 newly-
created jobs. The success of these 2 operations has
exceeded the expectations of the investors and
discussions are underway for the further expansion
of the business of one of these centres.
Quatrro Global Services PVT Limited, an India-
based business, has selected Trinidad and Tobago
as a location to launch a pilot project to establish
a card processing centre. On December 13 2013,
Quatrro Global Services PVT Limited entered into
a Memorandum of Understanding with both the
Trinidad and Tobago International Financial Centre
and Caribbean Electronic Payments Limited with a
view to commencing the pilot project. This initiative
will serve to position Trinidad and Tobago as an
emerging location within the Caribbean, Central
and Latin American region for financial services
and will create high-value quality jobs, in particular
for university graduates.
This new industry will have global reach. Our vision is
for Trinidad and Tobago not only to be the financial
centre of the region but also to be one of the
foremost locations for a global financial services
hub in this part of the world.
TOURISM
Madam Deputy Speaker, consequent on the global
financial crisis, the tourism sector, in particular in
Tobago entered into a period of financial difficulty;
however, the Government acted promptly to arrest
the decline and to revitalise the sector.
In the past year, we established the Trinidad and
Tobago Tourism Development Fund which has been
providing guarantees to financial institutions in
Tobago as they restructured debt and / or provided
new loans to hotels and hotel-related businesses. As
at August 2014, the Fund had already issued Letters
of Undertaking to 11 businesses in Tobago with a
total cash allocation from the Fund amounting to
$19.0 million. To achieve even better participation
by tourism-related businesses, the Government
welcomes the decision of the commercial banks
to improve access to the Fund by increasing the
tenors for both restructured loans and new loans.
The Government will now expand the Trinidad
and Tobago Hotel and Guesthouse Room Stock
Upgrade Incentive Programme. We envisage
that this programme will lead to the upgrade and
refurbishment of guest houses and hotels of between
8-100 rooms. A reimbursement of 25.0 percent of
the cost of the upgrade works per guest room is
being provided with a maximum reimbursement of
$12,000 per room for properties located in Trinidad
and $15,000 per room for properties located in
Tobago.
However, as an interim measure and to encourage
upgrade works both in the interior and exterior areas
of the property, effective July 31, 2014, the rebate
B U D G E T S T AT E M E N T 2 0 1 5
1 3 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
programme has been expanded for a 3-year
period for properties between 6-150 rooms with the
maximum limit being increased to $750,000.
Another 3-year incentive programme which
commenced on July 31, 2014 is aimed at upgrading
work in small tourism properties with between 1-5
rooms; the reimbursement will be 20.0 percent of
the cost of the upgrade work up to a maximum of
$75,000. To further the development of the sector
and to encourage investment in new 4 and 5 star
hotels the Government is proposing to provide
guarantees to financial institutions for lending to
investors.
Madam Deputy Speaker, during the course of the
coming year we are proposing to:
i. transfer to the private sector the management of
the hotel associated with the National Academy
for the Performing Arts;
ii. enhance tourism sites and other attractions
throughout Trinidad and Tobago, in particular
the Sugar Heritage Village and Museum project
which is preserving the history and heritage
of all economic, social and cultural traditions
associated with the sugar industry;
iii. upgrade of beach facilities, including safety and
security measures, at Maracas Bay, Tyrico and
Las Cuevas in the first instance;
iV. upgrade on a phased basis starting from 2016
the beach facilities at, Quinam, Los Iros, Salybia,
Mayaro, Toco, Manzanilla and Vessigny; and
V. progress the Southern-Caribbean Cruise initiative
further with the execution of a Memorandum of
Understanding among participating countries.
AGRICULTURE
Madam Deputy Speaker, the agricultural sector
has long been in a state of decline; but this decline
has now been reversed with this Government’s
active engagement in the sector. At the centre
of Government’s agricultural policy is the National
Food Action Plan 2012-2015. The plan aims to raise
productivity and production among our farmers.
Indeed, we are now witnessing an expansion in
agricultural production with the sector returning to
growth in both 2013 and 2014.
Moreover, food price inflation has been averaging
below 5.0 percent with the average for the first
half of the calendar year 2014 being 3.5 percent
– the first time in 21 years food price inflation has
remained in single digits for 6 consecutive months.
The Government has continued to consolidate and
to improve the quality of infrastructure to support
this rapidly-expanding sector:
• agricultural incentives are being deepened
and widened; 3,390 small farmers accessed
the benefits amounting to $19.0 million which
facilitated either their continuation in farming or
their expansion of existing production; in June
2014 the Incentive Programme was extended to
large farmers;
• the Agricultural Development Bank has extended
over $107.0 million to key areas of the agricultural
sector;
• the recently-established national Praedial
Larceny Squad is already making its presence felt
despite being in operation for less than a year.
Approximately 51 arrests have been made and
this has significantly improved farmer confidence.
• accordingly, I propose to make additional
resources available to the Agricultural
Development Bank as well as to increase all fines
related to praedial larceny;
Madam Deputy Speaker, agricultural production is
also being spearheaded by:
• the recently-created Caroni GREEN Limited. The
company has already brought into agricultural
production 360 acres of land utilising in the main
the 2-acre sized agricultural plots leased from the
former employees of Caroni. With more than 290
metric tonnes of produce harvested within the last
6 months, Caroni GREEN has been contributing
substantially to domestic consumption of quality
fresh vegetables;
• the commercial large farm programme is being
rolled-out with the establishment of 8 large farms;
the agri-business investors are already increasing
B U D G E T S T AT E M E N T 2 0 1 5
1 4 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
the quantity, the quality and the reliability
of domestic food supply in a wide range of
commodities, including rice, onions, hot peppers,
sweet corn, a range of citrus and aquaculture.
By the end of 2015, 4 additional large farms will
become operational;
• the commercial large farm programme has
been extended to Guyana in the context
of the execution on September 6 2013 of a
Memorandum of Understanding between the
Government of the Republic of Trinidad and
Tobago and the Government of the Co-operative
Republic of Guyana.
Expressions of Interest have been issued seeking
qualified private agri-investors who will be provided
with leases for land in Guyana to produce
commodities of strategic importance to the food
security of Trinidad and Tobago, and the number of
responses are now being evaluated;
• the local rice industry is being revitalised with a
mandate to increase production to 50.0 percent
of total consumption by 2018; 300 acres of
rice land have been resuscitated in the Plum
Mitan district and 500 acres are already under
cultivation and production under the large farm
programme;
• 12 main fishing centres in Trinidad are being
upgraded: Blanchisseuse, Cocorite, Orange
Valley/Brickfield, Carenage, Las Cuevas Phase
1, La Ruffin, Grande Riviere, Blue River, La Brea,
Cacandee, Grand Chemin and Marabella;
• the agro-processing industry is being built by
providing rebates on the cost of refurbishing
or establishing approved facilities for agro-
processing of approved commodities as well
as refunding a portion of the expenditure for
upgrading the Hazard Analysis and Critical
Control Points for agro-processors;
• the regularisation of the tenancies for 3,420
former sugarcane farmers is proceeding to the
next phase of surveying and the issuance to
those farmers of standard agricultural leases
under which they could expand the production
of agricultural commodities; and
• the agricultural lease issuance exercise for more
than 8,400 former employees of Caroni (1975)
Limited is continuing; approximately 2,600 leases
have been delivered and 540 are awaiting
delivery. With the transfer of responsibility for
delivery of leases from the Commissioner of
State Lands to the Estate Management Business
Development Company Limited the lease
issuance process will be expedited for completion
in 2015. These leases can now be sold in the open
market.
The National Agricultural Marketing and
Development Company has been strengthening
the linkage between the process producers
and consumers thereby ensuring a much more
sustainable balance between demand and supply
of domestic produce with associated stable prices.
Madam Deputy Speaker, over the long-term the
Government remains committed to enhancing
the enabling environment for growth in the
agricultural sector. We have established the right
policy framework for the agricultural sector and
we expect the sector not only to bring Trinidad
and Tobago to a state of food security but also to
provide profitable business opportunities for our
young agricultural entrepreneurs.
I turn now to Energy:
ENERGY
Madam Deputy Speaker, when this Government
came into office we recognised that the
development of the upstream sector had suffered
from years of neglect which had contributed to
declining reserves as confirmed by successive oil
and gas audits. To address this problem, we have
progressively upgraded the oil and gas tax regime
over the last 4 years.
Investment spending is now taking place in a
transparent regulatory framework, including a
simplified competitive bidding process.
We have recognised that to compete
internationally for capital, appropriate changes
had to be made to the oil and gas regime and this
B U D G E T S T AT E M E N T 2 0 1 5
1 5 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
has led to a renaissance in the sector. The results of
this Government’s changes to the fiscal regime of
the energy sector are impressive:
• investment has been expanding: the oil and
gas companies have advised that investments
amounting to US$3.3 billion will take place in 2014
and similarly-sized investments will take place
over the medium-term: US$3.2 billion in 2015 and
US$3.0 billion in 2016.
Included in these investments is the recently-
announced US$2.1 billion Juniper Project, the
main component of which will be the fabrication
of the Juniper Platform in the LABIDCO Industrial
Estate with the creation of 300 jobs thereby
initiating the revitalisation of economic activity in
the south-west peninsula.
The Platform will facilitate the production of 1.2
trillion cubic feet of natural gas commencing in
2017 at a rate of 590.0 million standard cubic feet
of natural gas per day which is equivalent of 14.0
percent of the country’s production. Supporting
this will be the commencement in October 2014
of natural gas production from the BG Starfish
Development;
• 12 production sharing contracts have been
signed over the last 4 years. Under the new model,
the Government has included various options for
the marketing of its share of the natural gas;
• 5 new discoveries of natural gas or oil in the last 2
years have been made, including:
i. Trinity in the East Galeota block with 27.0
million barrels of oil;
ii. Petrotrin in Trinmar’s cluster 6 with 48.0 million
barrels of oil;
iii. bpTT in its Savonette-4 well with 1.0 trillion
cubic feet of natural gas;
iv. Trinity in its TGAL 1 well with 26.0 million barrels;
and
v. REPSOL in its Teak Bravo North well with 40.0
million barrels of oil.
• in addition a further 2 deep water production
sharing contracts are about to be signed and 3
on-shore licenses are about to be issued, the first
time in many decades;
• drilling activity which is reflective of greater activity
in the upstream energy sector is increasing. In
2010, the number of rig days was 1,132 and
in 2013 rig days totalled 2,485. We expect this
number will be surpassed in 2014 based on the
work programmes under the 28 active production
sharing contracts and licenses; and
• at least 53 exploration wells will be drilled over the
next 8 years based on the exciting new seismic
data coming to hand, the incentives now in
place and the contractual obligations of the
companies.
There is going to be an unprecedented period of
activity in the energy sector over the course of the
next decade.
We are witnessing a marked increase in drilling
activity, a significant increase in foreign and
domestic direct investment, discoveries of new
reserves of oil and natural gas and the stabilisation
of oil production. We expect that, starting in 2017,
we shall see improved results arising out of the
audits of our oil and gas reserves.
Madam Deputy Speaker, the proposed US$850.0
million Mitsubishi-Massy Methanol to Di-Methyl
Ether plant is in an advanced stage of technical
conceptualisation. The plant will produce methanol
from natural gas and then go further down-
stream to di-methyl ether which can be used as a
replacement for both propane and diesel.
Importantly, its location in La Brea will generate
industrial development in the south-western
peninsula and bring to that area much needed
high-quality jobs.
Madam Deputy Speaker, as indicated the Energy
Port at Galeota will provide substantial logistic
support for the oil and gas companies operating
off the east coast with a reach as far as Suriname
and Guyana. The second phase of the Galeota
Port will begin in 2015 continuing the stimulation of
economic activity in the south-east communities.
Additionally, upgrade work will take place at
Brighton, La Brea to accommodate the Mitsubishi–
Massy and Gasfin Projects.
B U D G E T S T AT E M E N T 2 0 1 5
1 6 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
With respect to the fuel subsidy, Government
has been advancing the transition from the high
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
the fuel subsidy on the finances of the country. The
National Gas Company of Trinidad and Tobago has
established a new company: NGC CNG Company
Limited which is spearheading the roll-out of the
CNG-equipped filling stations. By the first quarter of
2016, 35 CNG fuelling stations will be operational.
Madam Deputy Speaker, hybrid and electric-
powered vehicles are now becoming the vehicles
of choice in many advanced countries. Moreover,
the increasing use of these vehicles is contributing
towards the reduction of gasoline and diesel.
I propose to provide tax relief on the importation
of hybrid and electric-powered cars subject to the
regulations outlined by the Bureau of Standards.
INFORMATION AND
COMMUNICATION TECHNOLOGY
Madam Deputy Speaker, as we modernise this
country to create a dynamic knowledge-based
society, we are bridging deficiencies in access
to and use of information and communication
technologies. We recognise that a smarter Trinidad
and Tobago will be a more competitive Trinidad and
Tobago and pursuant to our national Information
and Communication Technology Plan, commonly
referred to as smarTT, we are implementing the
initiatives which are aimed at making more
intelligent use of our financial, human and other
resources. Affordable high-speed broadband
services are being made widely available to
support the evolution of a dynamic knowledge-
based society.
With technical assistance from the World Bank
Group, the Government is embarking on a $2.4
billion expenditure on high-impact programmes
to improve infrastructure supply, in particular the
provision of new networks and demand initiatives
to stimulate ICT usage in the society. Public-Private-
Partnerships will be utilised both in the expansion of
supply and in the delivery of services. We are also
bringing the ICT policy and law up to best practice.
MAJOR INFRASTRUCTURE
Madam Deputy Speaker, we are now making
progress in overcoming infrastructure backlogs
and investing for more inclusive growth and
development. In fiscal 2015, public capital
expenditure will amount to approximately $8.2
billion. I wish to turn now to infrastructure investment
in major sectors:
WATER AND WASTE WATER SERVICES
Madam Deputy Speaker, we are well on our way
to ensuring an adequate and reliable supply of
water to all our citizens. We have reduced leaks
in our distribution network, reduced the number
of customer complaints, reduced the number of
repairs on our major mains, reduced the requests
for truck-borne water and we have reduced the
number of repairs on our valves.
We have improved infrastructure throughout
Trinidad and Tobago, including the installation of
storage tanks, the construction of new booster
stations and we have installed and replaced many
kilometres of pipelines and mains. In Tobago we
have installed transmission mains from Englishman’s
Bay to Castara and from Bacolet to Cove Industrial
Estate.
Our citizens are benefitting from these infrastructural
developments. Approximately 57.0 percent of the
customers of the Water and Sewerage Authority
are now receiving a reliable supply of water 24/7;
in Tobago this percentage is approximately 70.0
percent.
Madam Deputy Speaker, in 2010, only 18.0 percent
of the population received a reliable supply of
water.
Work is being vigorously pursued on establishing a
daily supply of water for all our citizens. With the
completion of the Beetham Waste Water Project,
the Industrial Estate at Point Lisas will benefit from
a reliable and high quality water supply, thereby
B U D G E T S T AT E M E N T 2 0 1 5
1 7 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
diverting 10 million gallons per day of good-quality
potable water to the national community. In 2015,
we anticipate that close to 100.0 percent of the
population will receive a 24/7 supply of water.
Madam Deputy Speaker, the incidence of flooding
needs to be addressed. The annual damage to
property, the loss of agricultural crops and the
spread of vector-borne and water-borne diseases
have been impacting adversely on our citizenry. The
economic and social costs have been inordinately
high.
With funding from the Inter-American Development
Bank of US$120.0 million, we have embarked on a
5-year programme to alleviate flooding and to
improve drainage in the city of Port of Spain. In
fiscal 2015, infrastructure work will begin on the
South Quay portion of Port of Spain which includes
the City Gate area.
Madam Deputy Speaker, unplanned development
has been at the source of our environmental
difficulties, including the incidence of flooding. As
such, we have been rehabilitating our water sheds
and restoring our forest cover through enrichment
planting of 1.3 million trees on approximately 6,200
acres across Trinidad and Tobago. This has been
accomplished in the last 4 years.
We have taken steps to ensure that sustainable
development is anchored on an appropriate
assessment of socio-cultural and economic and
environmental development issues. The recently-
legislated Planning and Facilitation of Development
Act has established a governance framework
under which land use, planning and development
will take place with a focus on sustainability.
Environmental integrity is being sustained by the
Community-Based Environmental Protection
and Enhancement Company Limited in its work
programmes to maintain the environment. A new
component, CEPEP Marine has been added which
is ensuring that our western and southern coastlines
are being consistently cleaned.
Madam Deputy Speaker, I turn to our Historic
Buildings.
HISTORIC BUILDINGS
This Government has been focusing on preserving
our historic buildings. We consider this to be critical
for understanding our nation’s heritage. It is also an
environmentally responsible practice. Preservation
work at Stollmeyer Castle and White Hall is in an
advanced stage and in the next fiscal year physical
work will begin on Mille Fleurs and the President’s
House. We are putting in place a public-private-
partnership to address the on-going maintenance
of these buildings.
HIGHWAYS
Madam Deputy Speaker, the Government is moving
to open all economic space in the country through
a network of roads and highways which will provide
safe, reliable and efficient transport. Businesses
and government services will be increasingly
decentralised as economic opportunities open
throughout the country.
We have made significant progress in developing
this network:
• the 47 kilometre 4-lane San Fernando to Point
Fortin highway is being delivered in phases; the
Golconda to Debe segment is already in service
and several additional segments will be delivered
in 2015;
• the 6.2 kilometre Rivulet road is being rehabilitated
with a delivery date in 2015 and will provide
road capacity to accommodate the expanding
traffic demands emanating from the Point Lisas
Industrial Estate;
• the east-west corridor transportation network is
being modernised to ease by 2015 the frustrating
levels of traffic congestion:
i. the Churchill Roosevelt Highway to St. Joseph
river has already been widened;
ii. the Beetham Highway access route in and
out of Port of Spain is being widened;
iii. the Diego Martin Highway extension is now
fully operational; and the all-important 34
metre-span walkover and canopy with
B U D G E T S T AT E M E N T 2 0 1 5
1 8 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
staircase near Cuthbert Road will bring major
safety benefits;
iv. the Valencia By-Pass now under construction
will be completed in November 2014.
The new roadway will be used by motorists to
bypass the town centre and will also eliminate
the excessive traffic pileups which currently
exist along the Eastern Main Road in the
vicinity of Valencia Junction; and
v. the over-pass at Southern Main Road and the
Churchill Roosevelt Highway will commence
construction in 2015.
The removal of the traffic lights from Port of
Spain to the University of the West Indies will
extend the freeway and in the process reduce
traffic congestion.
Madam Deputy Speaker, the roll-out of a modern
network of roads and highways connecting the
country is being appropriately sequenced. We
have already completed the designs for 3 new
highways:
i. the Princes Town-Mayaro Highway;
ii. the San Fernando-Princes Town Highway; and
iii. the Wallerfied-Manzanilla Highway.
We are considering, through a public-private-
partnership arrangement, an alternative access
route to Chaguaramas to facilitate the increasing
development activity in the north-west peninsula
which has already seen the commissioning of the
Chaguaramas Boardwalk and the Diego Martin
Extension Highway and the soon-to-be constructed
Fishing Facility and Health Centre in Carenage.
OFFICE ACCOMMODATION
Madam Deputy Speaker, the outfitting of the
Government Campus Plaza which commenced
this year will add another dimension to the vibrancy
of the capital city of Port of Spain. On completion,
our public servants will now be accommodated
in state-of-the-art facilities with acceptable and
appropriate office space. The sequencing will be
as follows:
• October 2014, next month, the Customs and
Excise Division of the Ministry of Finance and the
Economy;
• March 2015 the Immigration Division of the Ministry
of National Security;
• August 2015 the Board of Inland Revenue Division
of the Ministry of Finance and the Economy;
• September 2015 the Ministry of Legal Affairs; and
• September 2015 the Ministry of Education.
Madam Deputy Speaker, the Government is
collaborating with the Urban Development
Corporation of Trinidad and Tobago with a view to
outfitting all remaining buildings for occupation in
2016.
Furthermore, the Government is now exploring
all options available to it for ensuring that all
government-owned buildings are not only fully
utilised and meet the demand for government
services but also the residual or unused buildings
are offered for sale or lease.
B U D G E T S T AT E M E N T 2 0 1 5
1 9 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, I turn now to our policy
initiatives for building a more inclusive society.
This Government has identified 6 policy-driven
institutional components which are critical and inter-
dependent for making our society more inclusive
and for fostering growth which is sustainable. Our
policies are aimed at delivering greater equality of
incomes through greater equality of opportunities.
For this reason the focus of the Government is
on growth-enhancing investment and social
expenditures in 6 key areas; education, health,
housing, a social safety net, transport and sporting
activities.
EDUCATI ON
Mr. Speaker, the first component in our commitment
to a more inclusive society is the education system.
We are advancing our public policy agenda of
greater equity in our society and the building of
a competitive economy. The Government will
continue to provide quality and advanced skills
training to meet the demands of a middle-income
society.
EARLY CHILDHOOD CARE AND
EDUCATION (ECCE)
Madam Deputy Speaker, we expect to achieve
universal early childhood care and education by
2015. Our childhood centres established directly
by Government and by public-private-partnerships
are providing our 3 to 4 year-old children with
quality teaching and learning and in the process
are facilitating their easy transition to primary
education.
PRIMARY AND SECONDARY
This country has just experienced its best year’s
results in 3 of our major examinations: the Secondary
Entrance Assessment, the Caribbean Secondary
Education Certificate and the Caribbean
Advanced Proficiency Examination; but more
needs to be done to build on this success. In order
to improve the levels of literacy and numeracy, we
have deployed literacy and numeracy coaches to
118 schools and have trained 2,700 teachers who
can now develop literacy and numeracy skills in
students.
We are integrating information and communication
technology throughout the entire education
system. All students in Forms 1-5 will have laptops
by September 2014 and we are ensuring that the
demands of the society for skilled and technical
services are met through the increase in the number
of secondary schools offering the Caribbean
Vocational Qualifications.
TERTIARY
Madam Deputy Speaker, in order to uphold
excellence in our tertiary education system and
to ensure that skills development meets the needs
of our society, a wide range of initiatives and
programmes are being implemented:
• the Government Assistance for Tuition Expenses
programme is benefitting approximately 67,000
participants; all public and private higher
education institutions are now being held
accountable for the programme and the soon-
to-be-introduced National Qualifications and
Credit Framework will strengthen the quality of
the system;
5 . BUI L DI NG AN
I NCL US I VE S OCI E T Y
B U D G E T S T AT E M E N T 2 0 1 5
2 0 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, let me assure this
Honourable House that this Administration
will keep the GATE programme secure and
sustainable.
• the grace period of 6 months relating to the
repayment of loans under the Student Loan
Revolving Fund will be extended;
• the University of the West Indies, Penal-Debe
Campus is in an advanced stage of completion
with dedicated faculties for law, science and
technology, food and agriculture and social
sciences;
• the University of the West Indies, School of Dentistry
is being expanded;
• the University of the West Indies, Open Campus is
being constructed at Chaguanas;
• the College of Science, Technology and Applied
Arts of Trinidad and Tobago is expanding its
nursing facility at El Dorado;
• the Metal Industries Company Institute of
Technology has already established 4 Technology
centres in Tobago, in O’Meara, in Diego Martin
and in Penal;
• a Drilling Academy has been established at St.
Madeline with an expanded facility at Forest
Reserve to provide training in downstream
activities such as production and refinery
operations, environmental remediation and
green technologies;
• a Technology Campus is being established at La
Horquetta and the facilities at La Brea and Point
Fortin are being expanded;
• an Automotive Training Institute, a Workforce
Development Centre and a Centre of Excellence
in Cosmetology are being established at
Woodford Lodge;
• the Business Education and Training Campus in
Carapichaima-Waterloo which is now focusing
on agri-production will be expanded to a Digital
academy to support training in film, television,
animation and multi-media; and
• an Aviation campus is being constructed at
Camden Field in Couva: leadership is being
provided by the University of Trinidad and Tobago.
Madam Deputy Speaker, we have surpassed the
international benchmark established for student
participation rates for tertiary education. In 2010, the
student participation rate in the tertiary sector was
42.0 percent. This Government has now achieved a
rate of 65.2 percent which also exceeds our target
of 60 percent.
HEALTH
Madam Deputy Speaker, the second component
in our commitment to a more inclusive society is our
focus on providing quality health care and medical
services to our national community. Individual
responsibility for his or her well-being represents
a critical aspect of our overall healthcare. It is
imperative that our citizens monitor and manage
actively their own health regimes thereby reducing
the demand on the country’s health system.
Notwithstanding this reason, we have focused our
attention on creating client-centred experiences
and solutions which respect the needs, abilities
and uniqueness of those members of our national
community who require quality health care.
Our core principle is anchored on the rights of
patients and clients to experience respectful and
professional care in a considerate and supportive
environment. In pursuit of this broad agenda, at the
core of which is service quality, the Government is
improving the delivery of health care in Trinidad and
Tobago. To this end, and in order to alleviate the
chronic bed shortage at the San Fernando General
Hospital, we converted the newly-constructed
Administrative Complex in San Fernando into the
216-bed San Fernando Teaching Hospital. The
facility became fully operational in the last year and
is delivering quality healthcare to the burgesses of
San Fernando and our citizens in the surrounding
areas.
Madam Deputy Speaker, our health service delivery
model has been moving apace since the last year:
B U D G E T S T AT E M E N T 2 0 1 5
2 1 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
• a Children’s Hospital and Multi-Training Facility
in Couva is under construction and when
completed will focus on ensuring not only that the
medical needs of our children are fully-addressed
in an 80-bed facility but also that 300 medical
and nursing students are trained at the University
of the West Indies’ School of Medicine, Nursing
and Pharmacology.
With its location close to our gas-based industries
in Point Lisas, the facility will also contain a 150-
bed centralised medical facility for adults with an
associated Burns Unit;
• the National Oncology Centre which will provide
diagnostic imaging and radiation therapy
services is currently under construction and will
be fully commissioned in 2015;
This specialist institution will add another
component to the national strategy for addressing
the specific needs of cancer patients;
• a National Diabetic Retinopathy Screening and
Treatment Service is being phased-in over a 4 year
period at a cost of $85.0 million. This diabetic care
service is building on a pilot screening programme
which has been in place since October 2013 and
is already improving the quality of life of persons
with diabetes through better control.
• Approximately 130,000 citizens is estimated in our
population suffer from diabetes with 11.0 percent
having urgent sight-threatening complications
with compromised vision or blindness;
• 4 other new state-of-the-art hospitals are on the
drawing board: Penal Hospital and Rehabilitation
Centre, Sangre Grande Hospital, Point Fortin
Hospital and the Arima Hospital; and
• the external patient programme is providing
immediate relief to our citizens who have been
waiting for surgical procedures for a minimum
of 3 months in our public health care facilities: in
particular, cataract, joint-replacement, CT and
MRI.
Madam Deputy Speaker, the Government is also
rehabilitating and repairing many other health
facilities and medical centres at Arima, Couva,
Palo Seco, Sangre Grande, Maracas-St. Joseph,
Carenage and Toco. In addition, we have
extended the opening hours of these facilities and
in several areas on a 24/7 basis.
Moreover, in order that the short-term demands for
medical services are met and in the context of the
shortage of doctors and nurses, Government has
been recruiting foreign health care professionals, in
particular, nurses and doctors for the public health
institutions.
HOUSI NG
Madam Deputy Speaker, a third component in
our commitment to a more inclusive society is the
provision over the next decade of comfortable
and affordable homes for those in the low- and
medium-income groups. We are overcoming the
inadequate supply of houses and the difficulties of
our citizens in obtaining mortgage financing and
we are improving the maintenance of our housing
stock. Ultimately, our goal is the establishment of
sustainable communities throughout Trinidad and
Tobago.
The Government has embarked on a programme of
activities to construct new homes in light of the more
than 160,000 outstanding applications from our
citizens. We are also rehabilitating and maintaining
the existing housing stock. We are committed
to meeting the public demand for housing over
the course of the next decade and we will do so
through an all-encompassing plan of action which
focuses on construction, rehabilitation, provision of
land and subsidies for home-improvement:
• 3,000 new housing units are being built with
resources from the public sector investment
programme and local borrowing; more than
1,000 have already been completed at Egypt
Village, Princes Town, Union Hall and Victoria
Keys;
• high-rise apartment buildings will be refurbished
and retro-fitted in fiscal 2015; the buildings are at
B U D G E T S T AT E M E N T 2 0 1 5
2 2 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Pleasantville, Laventille, Morvant and Gasparillo;
56 other tenanted buildings with 656 units are
being refurbished; these buildings are at Charford
Court, Maloney, Paradise Heights, Beverly Hills,
Dorata Street, Lisas Gardens, Pleasantville, Irving
Street, Clifton Street, Ramsaran Street and Lady
Hailes Avenue;
• 110 new home-improvement and construction-
matching subsidies to eligible low-income families
are being provided under the Neighbourhood
Upgrading Programme with a US$40.0 million Inter-
American Development Bank loan; furthermore,
more than 1,200 beneficiaries have received
from the Government home-improvement grants
at a cost of $9.3 million;
• the regularisation of unplanned settlements is
improving the living conditions of low-income
persons at selected squatter sites, 30 of which are
at varying levels of infrastructure development,
including at St Mary’s Village, Moruga; Base
Road, Arena; and Calvary Hill, Arima;
• the Land for the Landless Programme is providing
residential lots at subsidised rates to low-income
persons at 10 sites, including Felicity II, Glenroy II,
Princes Town and Beaucarro, Freeport;
• the lease issuance exercise for more than 8,800
former employees of Caroni (1975) Limited is
continuing; approximately 1,700 leases have
already been distributed and with the scaled-up
resourcing of the Estate Management Business
Development Company Limited, the lease
issuance exercise will be expedited in the context
of the delivery of approved residential estates in
2015. These leases can now be sold in the open
market; and
• the 2.0 percent mortgage programme is being
improved and is being supplemented with a 5.0
percent mortgage programme.
As we advance our programme to meet our
housing needs, we will expand the mortgage loan
programme to meet the needs of middle-income
individuals. Multi-family units to increase the housing
output per site will be increasingly employed.
For this purpose we will amend the Housing Act to
make regulations as required under the Income
Tax Act to grant effective January 1, 2013 the tax
incentives to housing developers as outlined in my
2014 Budget Statement.
TRANSPORT
Madam Deputy Speaker, the fourth component is
our commitment to provide an efficient, reliable
and affordable transportation system for our citizens
as well as to support the system with comfortable
and state-of-the-art facilities. We are procuring on
a phased-basis, 100 new CNG–powered buses. We
envisage that not only will ridership be increased
but the number of routes will be expanded. We
have also improved the efficiency of the sea bridge
between Trinidad and Tobago. The newly-acquired
ferry is not only faster but also accommodates
more passengers and cargo.
With the coming into force of the Motor Vehicles
and Road Traffic Act the long-awaited Motor
Vehicle Authority, will be put in place on or before
March 31, 2015. The Head Office of the Authority
will be located in Frederick Settlement, Caroni and
will ensure that our citizens will have easy access to
all licensing-office related services.
In addition, 13 access centres will be located
throughout Trinidad and Tobago - all to be readied
by September 2015.
SOCI AL SAFETY-NET
SERVI CES
Madam Deputy Speaker, the fifth component is
our social safety net. We propose to rationalise our
social programmes to ensure that they are fully-
synergised. The World Bank Group will undertake
a detailed review of the performance of these
programmes and make recommendations on
the way forward. The Group will assess their
effectiveness and will determine a framework for
minimising overlap in both scope and scale.
B U D G E T S T AT E M E N T 2 0 1 5
2 3 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
In the interim, we are improving the delivery of the
social safety-net services as we move to protect
the most vulnerable in our society.
We are now deepening the application of our
social interventions:
• a National Development Centre for the differently-
abled at Carlsen Field has now been completed
and will be commissioned before December 31,
2014; a fleet of 24 buses of which 3 are in Tobago
are catering to the transportation needs of our
elderly and differently-abled citizens;
• the Public Assistance Grant has been extended
to the head of the household where such a
person has to support a child under the age of 18,
who is certified to be disabled; 1,300 persons are
now benefitting from the expansion of the grant;
• the Unemployment Relief Programme has
been restructured with an increased focus on
social interventions in communities targeting
unemployed single parents, persons with
disabilities and those living under the poverty
line: by September 30, 2014, 1,000 projects in
communities will be completed involving more
than 600 contractors employing approximately
3,600 persons on the building of drainage
infrastructure, jogging tracks and play parks
for children, the rehabilitation of roadways,
pavements and sidewalks and the construction
of retaining walls;
• We intend also, as far as URP goes, to equalise
wages between men and women.
• two programmes: the Servol Adolescent and
the Parental Outreach which have proven to
be extremely successful in building cohesiveness
among families will receive increased allocations;
and
• subject to working out the qualifying requirements,
a new programme will provide financial
assistance for 1 year only for any child born to
under-privileged parents during the course of the
next fiscal year.
Madam Deputy Speaker, I propose to increase
the benefits now available to several of our
disadvantaged groups. Indeed, the use of these
strong social protection and innovative systems
and strategies has been instrumental in reducing
poverty levels and in building the middle-class.
The Human Development Report prepared by
the United Nations Development Programme
categorises this country as one of high human
development and ranks it 36
th
out of 185 countries.
NATI ONAL SPORTS
Madam Deputy Speaker, the sixth component
in our thrust to a more inclusive society is sport
development. We have made significant progress
in establishing an enabling framework, comprising
infrastructure, management and coaching, talent
building, welfare of elite athletes and sport tourism.
We are building on the existing infrastructure:
• the technical framework to support the
development of football throughout the country
has been put in place at an annual cost of $36.2
million;
• the 5 multi-purpose stadia have been or are now
being upgraded; and
• community sporting groups and national
governing bodies are continuing to receive
financial assistance. This funding programme
has facilitated increased participation in various
sporting disciplines and provided opportunities
for successful participation in events on the
international stage.
We shall establish the Trinidad and Tobago National
Games with the inaugural games taking place
early in 2015. We are developing a critical mass
of athletes and 5 disciplines are being targeted:
football, basketball, cricket, netball and athletics.
Within this general framework we shall continue
to fund elite athletes so that they can attain
excellence at the highest levels of competition.
B U D G E T S T AT E M E N T 2 0 1 5
2 4 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
In addition to this improved sporting infrastructure,
we are developing 3 major state-of- the-art national
sporting facilities, all of which are at an advanced
stage of completion.
We shall be in a position to leverage these facilities
to attract international events at the National
Aquatic Centre, the National Tennis Centre and
at the National Cycle Centre. In doing so, Trinidad
and Tobago will be marketed as a preferred sport
training destination.
Madam Deputy Speaker, the Government is
challenging the energies of our young people in this
area and looks forward to the future success of our
athletes in all international sporting competitions.
6 . L ABOUR
Madam Deputy Speaker, this Government has
been committed to the promotion of employment
practices which are fair and equitable to all
workers. While we have concluded and brought
up-to-date the majority of our industrial agreements
within the state sector, the long delays in settling
such agreements warrant a refocus on the
methodology for reaching industrial agreements.
The private sector has similar experiences. To this
end, the Government will strengthen the existing
mechanism for fostering multi-partite collaboration
and social dialogue.
This will foster consensus building and democratic
involvement among the main stakeholders in the
world of work. The Social Dialogue Task Force
which was established in 2013 and chaired by the
Minister of Labour and Small and Micro Enterprise
Development, will now be tasked with a mandate
to provide regular reports to address the complex
social and economic challenges facing the country,
including the keeping of the labour negotiations
current and the reduction in the likelihood of lost
value through industrial action. The Government
will consult with academia on its involvement in
the process and will ensure that the dedicated
secretariat will have professional and competent
staff resources.
Madam Deputy Speaker, as part of this process
and in keeping with the recommendations of the
Minimum Wages Board I now propose to raise the
minimum wage.
B U D G E T S T AT E M E N T 2 0 1 5
2 5 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, the Government places
at the top of its agenda the security of life and
property for the national community. The current
crime epidemic continues to be addressed through
a range of well-resourced multi-faceted initiatives;
but undoubtedly productivity is still being impaired
and doing business in Trinidad and Tobago has to
take this cost into account.
While the level of homicides continues to be
worrying, there has been some success in non-
violent serious crime with declines registered in key
areas, in particular burglaries, break-ins and general
larceny. Internal security is being strengthened:
• the police presence has been expanded
throughout the country, particularly in hotspot
areas where army patrols are also present; more
mobile patrols and foot patrols are in place;
• additional police personnel, including more than
1,000 police officers and 1,400 special reserve
police officers have been recruited; capacity
building is taking place, in particular in the
areas of evidence-based policing and crime
scene investigation techniques. Approximately
560 police personnel have benefitted from this
training;
• eight state-of-the-art police stations with
computerised technology have been constructed
throughout Trinidad and Tobago, namely Arima,
Piarco, Maloney, Cumuto, La Brea, Oropouche,
Brasso and Moruga;
• rapid response units within various police divisions
have been strengthened with more than 330
police vehicles equipped with GPS tracking
systems. Response times have now improved;
and
• the newly-established Community Comfort Patrol
is bringing a much-needed security presence
in residential areas and housing estates. This
collaboration between the Ministry of National
Security and the enforcement officers from
private security companies is adding another
dimension to our quest to improve security within
our communities.
Madam Speaker, coordinated national joint
operations and proactive operational planning for
national security, disaster and emergency crises
are being facilitated by the National Operations
Centre – a strategic platform for inter-agency
operations.
This robust integrated nationwide system for
coordination and communication at strategic,
operational and tactical levels is not only
contributing to the reduction in serious crime but is
facilitating regional and international cooperation
in the fight against trans-national organised crime.
Border security has become increasingly critical
due to the country’s location which exposes it to
the growing threat of transnational crime and
drug trafficking. The Trinidad and Tobago Coast
Guard has already added to its platform a number
of harbour patrol vessels and plans are afoot to
acquire for the Coast Guard coastal patrol vessels
and interceptors. Expenditure on these acquisitions
will be in excess of $1.0 billion. These assets will
effectively blockade the Gulf of Paria against the
illegal shipment of narcotics, arms and ammunition
and human trafficking. The protection of our
internal and external waters will be improved.
Madam Deputy Speaker, this high-risk responsibility
by our protective services personnel cannot
7 . S E CURI T Y AND PUBL I C ORDE R
B U D G E T S T AT E M E N T 2 0 1 5
2 6 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
be discharged without the incidence of some
casualties. This Government proposes to establish a
Fund from which could be drawn $1.0 million which
will be payable to the estate of the deceased
for assistance to families arising out of death of a
member of the State protective services killed in
the line of duty.
8 . RE F ORM AGE NDA
PROCUREMENT
Madam Deputy Speaker, we are putting in place
through legislation another confidence-inducing
mechanism for ensuring the efficiency of resource
use through our public sector procurement.
The proposed Office of Procurement Regulation
with its Procurement Regulator will ensure that all
public sector contracting be now subject to the
values, principles and best standards of practice of
public sector procurement.
The title of the Public Procurement and Disposal of
Public Property Bill 2014 is reflective of the public
policy regarding this legislation which will provide
for public procurement and the disposal of public
property in accordance with the principles of good
governance, namely accountability, integrity,
transparency and value for money as well as
the establishment of the Office of Procurement
Regulation. We are expediting the process of
preparing the regulations to make this legislation
effective once it is approved by this Honourable
House.
CONSTI TUTI ONAL REFORM
Madam Deputy Speaker, we have been
strengthening our Parliamentary procedures. We
have already implemented new Standing Orders
and established a Finance Committee under the
Chairmanship of the Speaker of the House with
responsibility for Budget oversight. The work of the
Committee will be open to the public for the first
time in our nation’s history.
A Joint Select Committee on Campaign Finance
Reform has also been established. With our recent
amendments to the Constitution, provision is now
made for term-limits for Prime Ministers, the right
to recall parliamentarians and run-off elections.
We shall take steps to ensure the appropriate
resourcing of the offices of our 41 parliamentarians
so that they all have the capacity to represent
effectively their constituents.
I propose to allocate $410.0 million for the
Constituency Development Fund for the upcoming
fiscal year; but the Fund will only be operationalised
subsequent to the establishment of the legislation,
associated regulations and the implementation of
the appropriate control environment.
B U D G E T S T AT E M E N T 2 0 1 5
2 7 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
TAX ADMI NI STRATI ON
Madam Deputy Speaker, we are continuing our
focus on modernising our tax administration through
the application of technology and enhanced tax
payer engagement to improve the efficiency of
tax collection.
Over the past year, notwithstanding that some
of our objectives for the year were affected by
industrial action, we have completed the review
of the recommendations of the consulting group
hired to assist with the review of our taxation system,
we have established a taxation committee which
includes stakeholder groups from the business and
accounting communities and we have resuscitated
the Petroleum Pricing Committee.
With respect to non-financial assets, the mapping
and valuation process has begun on fixed assets
such as buildings, machinery and equipment,
land, roads and sub-soil assets as well as contracts,
leases and licenses. This exercise will provide further
options for revenue generation and more effective
asset management.
Madam Deputy Speaker, as we strengthen the tax
administration, the Government proposes to offer
a tax amnesty for tax penalties and interest for
late filing of returns and late payment of income,
corporation tax and Value-Added Tax, as well as
business levy and environmental levy.
This amnesty will encourage tax payer compliance
and the process will bring in revenue which will
more than compensate for the revenue foregone.
I also propose to waive all penalties outstanding
or chargeable on companies which have not filed
their documents with the Registrar of Companies.
COMMI SSI ON ON GAMBLI NG
Madam Deputy Speaker, gambling with the
associated incidence of harmful effects has been
on the rise in Trinidad and Tobago and this no doubt
has been due to the limited regulatory environment.
We had committed to bringing all forms of betting
and gaming activities in Trinidad and Tobago within
a dedicated regulatory framework. A Cabinet-
established Civil Society Committee has been
holding extensive consultations with all industry
stakeholders and there is now broad agreement on
the elements of a regulatory regime.
The appropriate legislation and related regulations
have now been developed and will be laid in
Parliament in the next fiscal year. We envisage a
gaming sector which will not only be responsible
but which will also contribute substantially to our
public revenues and to the expansion of the
national economy with the associated creation of
sustainable jobs.
The Trinidad and Tobago Members Club Association
has agreed to the adoption of standard industry
best practices within their business models focusing
on timely financial recording and reporting and
compliance with the guidelines of the Financial
Intelligence Unit and the banks here in Trinidad and
Tobago.
As an interim arrangement a new taxation and
regulatory framework involving the tagging and
taxation of gaming machines will be effective
January 1, 2015.
That legislative environment was put in place this
year.
PENSI ONS
Madam Deputy Speaker, the Government is
continuing its efforts to ensure national insurance
coverage is provided to all eligible members of
the national community. All earners of emolument
incomes have long been covered. We are now
moving to extend coverage to the approximately
11,300 self-employed persons. We propose to
amend the National Insurance Act to effect this
coverage.
Our senior citizens and retired public service officers
remain among the vulnerable and at risk group in
our society. As a Government with a demonstrable
commitment to our citizens, we cannot be oblivious
to the sterling contribution which these citizens
B U D G E T S T AT E M E N T 2 0 1 5
2 8 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
made to our country. I propose to increase these
pensions.
Many of our citizens have long enjoyed pension
arrangements provided by our public companies.
These citizens have also been supplementing their
pensions through registered annuities programmes
and these programmes have also been available
to the self-employed. I propose to increase the
limits for contributions to registered annuities.
MUTUAL FUND MANAGEMENT
Madam Deputy Speaker, since the first mutual fund
was established in 1982 by virtue of the Unit Trust
Corporation of Trinidad and Tobago Act 1981, our
mutual fund industry has witnessed meaningful and
continuous growth. By June 30, 2014, 60 active
mutual funds managed by 14 market actors had
been registered with the Securities and Exchange
Commission; and those market actors are subject
to regulation by the Securities Act 2012 and the
guidelines on Collective Investment Schemes
issued by the Central Bank of Trinidad and Tobago.
The Government is now moving to bring the
enabling legislation which established the Trinidad
and Tobago Unit Trust Corporation in line with
the guidelines relating to Collective Investment
Schemes as well as with the provisions of the
Securities Act 2012 which regulates the securities
industry of which mutual funds represents an
important component. The new legislation will
improve the flexibility of the Corporation to respond
effectively to the highly competitive nature of the
mutual funds market.
HERI TAGE AND
STABI LI SATI ON FUND
Madam Deputy Speaker, in accordance with the
review requirements under the Trinidad and Tobago
Heritage and Stabilisation Fund Act, legislation to
update the governance and operational structure
of the Heritage and Stabilisation Fund will be
introduced in the new fiscal year.
B U D G E T S T AT E M E N T 2 0 1 5
2 9 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, I now turn to Tobago. First
of all, I wish to place on record that, consistent with
the provisions of the Tobago House of Assembly Act,
the required budget documents were transmitted by
the Tobago House of Assembly within the timeframes
specified under the Act.
I wish also to express my appreciation to the Chief
Secretary of the Tobago House of Assembly, the
Honourable Orville London, for his constructive
proposals relating to the administration and
development of Tobago – proposals which he shared
with me during the course of a consultative meeting
between the Tobago House of Assembly and the
Ministry of Finance and the Economy. The useful
insights of the Secretary of Finance and Enterprise
Development, the Honourable Joel Jack, have also
been helpful.
This meeting as has become customary among
ourselves was conducted in an atmosphere of mutual
understanding and respect.
This Government will continue to collaborate with
the Tobago House of Assembly and the Ministry of
Tobago Development as they boost development
and change in Tobago. We are heartened by
the continued recovery of its key sector: tourism.
The island is witnessing increased visitor arrivals,
both international and domestic, with the resulting
improvement in hotel and guest house occupancy
rates.
We welcome the increased tourism marketing efforts
by the THA to attract not only foreign and domestic
tourists but also to expand international airlift.
With domestic tourism rapidly expanding, Caribbean
Airlines is strengthening its policies and systems with
a view to ensuring a greater alignment between
demand and supply on the domestic air-bridge.
The diversification process in Tobago will continue
through adequate allocations for the development
of the Cove Eco-Industrial and Business Park and for
the Enterprise Assistance Loan and Venture Capital
Fund.
The Tobago House of Assembly is collaborating with
the Ministry of National Security to ensure that the
rich tourism product of Tobago is enjoyed in a safe
and secure environment. Manpower shortages in
the Police Service are being addressed and 2 police
stations are being constructed at Old Grange and
Roxborough.
We are acutely aware of the developmental needs
of Tobago and we will collaborate with the Tobago
House of Assembly on its utilisation of public-private-
partnerships for delivering key infrastructure and
associated services.
An immediate project to broaden and to deepen
the recreational choices for visitors to Tobago and
to provide much-needed amenities for fisher-folk as
well as boat owners, including power and sail yachts
in Tobago and in Trinidad will be the establishment
through a public-private-partnership of a world-
class marina at Petit Trou Lagoon located within the
Tobago Plantation site at Lowlands.
The Ministry of Finance and the Economy and the
Tobago House of Assembly have agreed to meet at
regular intervals to address any issues that might arise
during the next fiscal year.
For fiscal 2015 the budgetary allocation for the
Tobago House of Assembly is $2.609 billion, of which
$2.202 billion will be for recurrent expenditure, $384
million for capital expenditure, and $23.0 million for
the Unemployment Relief Programme.
Furthermore, under the various other heads of
expenditure, Tobago will receive an additional
amount. In total therefore Tobago will receive
$3.7 billion or the equivalent of 5.7 percent of
the national budget. We remain committed to
the recommendations of the Dispute Resolution
Commission.
9 . T OBAGO HOUS E OF AS S E MBLY
AND T OBAGO DE VE L OPME NT
B U D G E T S T AT E M E N T 2 0 1 5
3 0 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, I shall now present my
budget proposals:
1. Manufacturing
To spur development in the non-energy sector,
I propose with effect from January 1, 2015 to:
• increase the rebate from 15.0 percent to
20.0 percent in the production expenditure
rebate programme on use of local labour
in particular in the film, fashion and music
sub-sectors and also to increase the cap
from US$3.0 million to US$8.0 million in the
production expenditure rebate programme;
and
• introduce legislative changes which will
create a climate attractive to foreign direct
investment in the maritime sector;
2. Mutual Fund Industry
I propose to amend the Unit Trust Corporation
of Trinidad and Tobago Act 1981 in key
operational areas, in particular,
• the definition of securities will be modified
to make it consistent with the definition of
securities applicable to all market actors as
stated in the Securities Act 2012;
• the definition of income allocated for
distribution will now exclude realised and
unrealised capital gains from the requirement
to distribute not less than 90.0 percent of such
income;
• the 10.0 percent concentration and control
investment restriction governing unit schemes
will now only be applicable to equity
securities;
• the Corporation is now being endowed with
the power to close, reopen, suspend and
cease to sell units in or otherwise wind-up a
unit scheme;
• the power of the Corporation to restrict its
borrowing to a term not exceeding 90 days
is being modified to extend the payback
period to 180 days;
• the sharing of information with local and
international regulatory authorities in
accordance with any written law will now be
clarified and authorised; and
• the removal of upper limits on unit prices
other than the First Unit Scheme that is the
TT Dollar Growth and Income Fund will allow
the Corporation to issue additional or new
schemes at such prices and with such limits
on minimum and maximum subscriptions as
the Corporation might deem appropriate for
market conditions.
3. Heritage and Stabilisation Fund
I propose to amend the Trinidad and Tobago
Heritage and Stabilisation Fund Act 2007
Chapter 70:09 to provide for:
• creation of a legal entity by including a
provision to establish the Heritage and
Stabilisation Fund as a Body Corporate;
• legal protection of the Heritage and
Stabilisation Fund Board members by the
inclusion of a provision to allow for the
indemnity of the Board of Governors of the
Heritage and Stabilisation Fund;
• increase in the floor of the Fund from US$1.0
billion which existed in 2010 to US$4.0 billion
1 0 . F I S CAL AND OT HE R ME AS URE S
B U D G E T S T AT E M E N T 2 0 1 5
3 1 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
which increases the amount below which
withdrawals cannot be made;
• amendments to Sections 13 and 14 to make
explicit that the assessments of projected
versus actual revenues for each quarter are to
be conducted on a year-to-date aggregate
basis; and
• extension of the timeframe for meeting
withdrawal requests from 48 hours to 72 hours.
4. Tax Administration
Madam Deputy Speaker, I propose to offer an
amnesty for tax penalties and interest for late
filing of returns and late payment of income,
corporation and Value-Added Taxes, business
levy and environmental levy. The amnesty
will apply to returns, penalties and interest on
outstanding tax liabilities for years of income up
to 2013.
Accordingly, all individuals and corporations
who have outstanding tax returns or outstanding
tax liabilities and associated interest charges will
have these interest and penalties waived if they
comply by March 31, 2015. This measure will
require amendments to the Income Tax Act, the
Corporation Tax Act and the Value Added Tax
Act. This measure takes place with immediate
effect and will expire on March 31, 2015.
I also propose to waive all penalties outstanding
or chargeable on the filing by corporations of
documents with the Registrar of Companies.
The proposed waiver will be applicable until
March 31, 2015.
5. Capital Market: Tax-deductible Bonds
I propose to introduce a savings bond which
will allow small investors and pensioners to
purchase bonds in much smaller denominations,
including $1,000 per bond. Purchases of bonds
from the Government will be tax deductible up
to $5,000 per annum for a period of 5 years.
6. Social Safety Net
I propose to expand the social safety net
by modifying a number of benefits effective
October 1, 2014:
i. the disability grant will be increased by $300
per month. The new grant of $1,800 per
month will cost an additional $86.8 million
and will impact 24,100 differently-abled
individuals. In 2010, the disability grant was
$1,300;
ii. the public assistance grant will be increased
by $300 across all bands. The additional
expenditure will be $89.3 million and will
impact 24,797 citizens. The represents an
average of 20.0 percent increase across all
bands since 2010;
iii. the personal allowances for individuals
aged 60 and over will be increased from
$60,000 to $72,000 for the calculation of
individual taxes; at a cost of $53.3 million
this measure will take effect from January
1, 2015;
iv. the Servol Adolescent Programme and the
Parent Outreach Programme will have their
allocations increased by 12.0 percent; and
v. a baby care grant will provide financial
assistance in an amount of $500 per month
for 1 year only for any child born to under
privileged parents during the course of the
next fiscal year.
7. Families of deceased Security Personnel
I propose to introduce a new Fund from which
could be drawn the sum of $1.0 million which
will be placed in the estate of a member of
the State protective services killed in the line of
duty.
8. Fair-Share Programme
Effective October 1, 2014, I propose to increase
the procurement value under the Fair-Share
B U D G E T S T AT E M E N T 2 0 1 5
3 2 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Programme from $1.0 million to $1.5 million, to
further boost the small business sector.
9. Pensions
I propose to continue the process of facilitating
the ease of living for our senior citizens. With
effect from October 1, 2014:
Senior Citizens
i. the senior citizens pension will be increased
by $500 per month to $3,500 per month
and will cost an additional $200.0 million
and impact 84,720 senior citizens; the senior
citizens pension will now be adjusted with
the receipt of other pensions with a cap of
$4,500. In 2010, the senior citizens pension was
$1,950;
Public Officers
ii. the monthly pension for retired public officers
will be increased by $500 per month with a
minimum of $3,500 per month at an additional
cost of $240.0 million and will impact 35,000
retirees. In 2010, the minimum pension for
retired public officers was $1,950;
Self-Employed
I propose to bring the self-employed into the
national insurance system with an amendment
to the National Insurance Act. This proposal will
be effective January 1, 2015 and will impact
initially 11,300 self-employed.
To that end:
• any self-employed person in the age group
57 and over at the commencement of
coverage in the year 2015 will receive a one-
off payment equivalent to three times their
contribution.
• Anyone in the age group 50-56 at the
commencement of this coverage who
contributed fully in each year prior to
retirement will be credited with additional
contributions to allow them to receive the
minimum monthly pension payments.
The Government will inject $12.9 million into
the national insurance system to cover the
cost of the additional contributions for those
self-employed individuals; and
• the subsidisation for the payment of
contributions by low-income self-employed
persons, defined as persons who earn less
than $3,000 per month by the National
Insurance Board of Trinidad and Tobago, in
an amount equivalent to two-thirds of the
contributions due from eligible low-income
self-employed persons.
The Government will inject a further $41.0
million into the national insurance system to
meet this liability over the next 5 years but
with an injection of $4.0 million for fiscal 2015.
• the transition for the self-employed into the
National Insurance system will be fully-funded
for the first year only at an additional cost of
$2.0 million.
10. Agriculture
I propose to continue our focus on achieving
food security and to that end and effective
January 1, 2015:
i. all fines related to praedial larceny will be
increased by 50.0 percent;
ii. the cost of establishing approved
facilities for agro-processing of approved
commodities will be subject to a rebate of
50.0 percent up to a maximum of $100,000;
iii. the cost of refurbishing approved
facilities for agro-processing of approved
commodities will be subject to a rebate of
50.0 percent up to a maximum of $50,000;
iv. 40.0 percent of the cost of Hazard
Analysis and Critical Control Points for
agro-processors will be refunded up to a
maximum of $150,000; and
I also propose to provide the Agricultural
Development Bank with an allocation of $75.0
million.
B U D G E T S T AT E M E N T 2 0 1 5
3 3 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Registered Annuities
I propose effective January 1, 2015, to increase
from $30,000 to $50,000 the limit for contributions
to registered annuities. This will impact 15,000
citizens at a cost of $75.0 million.
Caroni
I propose to that the balance remaining upon
the termination of the Reserve Fund in May
2016 be distributed on a pro rata basis to all
pensioners and deferred pensioners of Caroni
(1975) Limited.
I am also putting in place a mechanism
through which those beneficiaries who had not
yet paid for their residential service lots could
now do so through a commitment to Caroni of
their portion of the residual balance.
11. Road Usage
I propose to increase fines by 50.0 percent: for
speeding, driving under the influence, driving
without insurance, possessing fraudulent motor
vehicle certificates, driving with expired driving
license; and for individuals producing or selling
fraudulent insurance certificates.
I propose to finally meet the outstanding
reimbursements owed since 2005 to registered
maxi-taxi owners for their payments of Motor
Vehicle taxes and Value Added Tax.
12. Hybrid and Electric-powered Vehicles
I propose with effect from January 1, 2015 to
exempt motor vehicle tax and VAT on new or
used hybrid and electric-powered vehicles not
older than 2 years for a period of 5 years for
private or commercial use.
13. Housing
I propose to expand the existing 2.0 percent
mortgage programme by increasing qualifying
property values from $625,000 to $850,000 and
by increasing the combined monthly income
of households from $8,000 to $10,000 and to
supplement that programme by introducing
a new 5.0 percent mortgage programme for
households with a combined monthly income
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
measure will benefit 26,100 applicants within
the HDC framework and a similar amount in the
private sector; and
I propose to increase the tax allowance from
$18,000 to $25,000 per household per annum on
mortgage interest paid in the year of income
for first time home owners for 5 years, including
those years utilised by existing beneficiaries.
14. Labour
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.
B U D G E T S T AT E M E N T 2 0 1 5
3 4 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, I wish to direct my attention
to our estimates of revenue and expenditure for
fiscal 2015. As is usual practice, we have estimated
oil and gas prices on the basis of our interactions
with relevant international organisations.
In respect of our revenue assumptions we are
utilising a price of US$80.00 per barrel for oil and a
gas price of US$2.75 per mmBtu. Following these
price assumptions we are projecting the following
for:
• Total revenue : $60.351 billion
• Oil revenue : $21.223 billion
• Non-oil revenue : $39.128 billion
• Total expenditure
net of capital
repayments and sinking
fund contributions : .664 billion
Madam Deputy Speaker, for fiscal 2015, the
Government envisages a fiscal deficit of 2.3
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.
We are making the appropriate capital investments
to drive modernisation but this is being done in the
context of the consolidation of our fiscal position.
We are ensuring that the budget deficit does not
undermine monetary stability nor crowd-out the
private sector.
Madam Deputy Speaker, pursuant to our public
policy agenda I have made appropriate allocations
to the various Ministries as follows:
• Education and Training : $10.126 billion
• National Security : $ 6.994 billion
• Health : $ 5.545 billion
• Public Utilities : $ 3.932 billion
• Housing : $ 2.877 billion
• Local Government : $ 2.649 billion
• Works and Infrastructure : $ 2.542 billion
• Transport : $ 1.984 billion
• Agriculture : $ 1.328 billion
1 1 . E S T I MAT E S OF RE VE NUE
AND E XPE NDI T URE : 2 0 1 4 - 2 0 1 5
B U D G E T S T AT E M E N T 2 0 1 5
3 5 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
Madam Deputy Speaker, in 2010, the people
of Trinidad and Tobago elected the People’s
Partnership under the dynamic leadership of the
Honourable Kamla Persad-Bissessar. The people
elected us because they wanted a government
which had greater conviction in its strategies
and programmes for the future of our country.
We developed a coherent framework of what
we wanted to achieve. Since that time, we have
consolidated the economic, social, political and
financial stability of our country as reflected in all
our macro-economic data.
We created a vibrant economic environment
which inspires confidence among domestic
and foreign investors. We are now in a recovery
phase generating quality jobs. We will continue
to sustain that recovery by focusing on long-term
fiscal consolidation, debt-sustainability and by
implementing major infrastructure projects.
The proposed procurement reform legislation
represents a key underpinning for establishing
transparency and accountability. This framework
of action will raise our capacity to progress as a
nation and will help in safeguarding our financial
and economic stability.
Madam Deputy Speaker, the Republic of Trinidad
and Tobago is a mature democracy. We are
strengthening this democracy as we put in place
a set of constitutional principles relating to the
terms of office of Prime Ministers, to the recall of
parliamentarians and to run-off elections. We are
ensuring that the country’s prosperity is equitably
distributed among all our citizens. We are also
ensuring that our citizens continue to thrive in an
environment of safety and security.
As we broaden and deepen our major economic
sectors, commercial opportunities are emerging
whether they are in downstream oil and gas or in ICT
or in financial services. We are assisting our young
people to invest in their skills and in their future.
We are assisting our low-and middle-income
families to acquire comfortable and affordable
housing and we are putting in place mechanisms
and facilities to allow our citizenry to access timely
quality healthcare and medical services.
Madam Deputy Speaker, while the restoration
of financial and economic stability was high
on our agenda, we did not refrain from making
substantive efforts to modernise our country and
to create an inclusive society. We have delivered
the commitments made in May 2010 and we
have done so within a coherent and consistent
framework and in the context of fiscal prudence.
Let me cite some of those achievements:
• the San Fernando - Point Fortin highway is being
phased in; the Golconda-Debe segment is
already in use and the Mosquito Creek-Penal
segment will be available in 2015;
• new and modern hospitals are now under
construction;
• Since 2010, 83 new schools have been built;
• Since 2010, 4,500 repair and maintenance
projects have been undertaken on our nation’s
schools;
• At present, 67 schools are under construction;
• the Fair-Share programme has been increased
by 50.0 percent since 2010;
• the soon-to-be commissioned National Aquatic
Centre, the National Cycle track and the National
Tennis complex will catalyse competitive sporting
teams and sport tourism;
1 2 . CONCL US I ON
B U D G E T S T AT E M E N T 2 0 1 5
3 6 EMPOWERING OUR PEOPLE THROUGH SUSTAINED ECONOMIC GROWTH AND PROSPERITY
• the airlift to Trinidad and Tobago is being
expanded, building on the services now being
provided by Condor Airlines and Apollo Airlines to
Tobago and Jet Blue to Port of Spain;
• domestic food inflation is now running at a rate of
3.5 percent in the first 6 months of 2014, the lowest
in 21 years;
• new Procurement legislation will bring to public
sector contracts confidence-inducing fair,
efficient and transparent procedures;
• the number of serious crimes has been significantly
reduced;
• the Childrens’ Life Fund is fully operational and
is providing timely and needy assistance to all
applicants;
• 75,000 laptops have been provided and laptops
will continue to be provided to all incoming
students to secondary schools;
• emergency relief assistance has been provided
to 750 households affected by severe weather
conditions, including flooding;
• dialysis treatment is now virtually free to the
public through the public and private health-
care institutions;
• cardiac services, including open-heart surgeries
have been delivered to 114 patients in the first 9
months of fiscal 2014;
• surgical services, including cataract and CT/
MRI scans are now being provided to patients
who are on the listed services for a minimum of 3
months; in the first month of the programme, June
2014, 105 surgeries have been performed;
• The number of rig days in the energy sector has
increased from 1,132 in 2010 to 2,485 in 2013;
• The student participation rate in tertiary education
has increased from 42 percent in 2010 to 65
percent in 2014. We have surpassed our target of
60.0 percent;
• The minimum wage which was $9.00 per hour in
2010 has been increased to $15.00 per hour; and
• The VAT backlog owed to businesses which
amounted to over $5.0 billion in 2010 has been
substantially reduced and we anticipate that the
entire amount now outstanding will be settled by
the end of the new fiscal year.
Madam Deputy Speaker, the welfare of our State
is being safeguarded and we are convinced that
this Budget will continue to consolidate our vision of
a stronger, fairer and smarter Trinidad and Tobago.
Madam Deputy Speaker, I commend this Budget to
this Honourable House and I beg to move.
Design and Layout: Paria Publishing Co. Ltd.
Cover Design: Ample
Printing: Caribbean Print Technologies Ltd.
doc_260440201.pdf