As the person chosen by Prime Minister Kamla Persad-Bissessar to manage and guide the Trinidad and Tobago economy during a period of economic stagnation and uncertainty, Finance Minister Winston Dookeran's job is, without doubt, the most challenging of any of the ministers in the 11-month-old Cabinet. Already in 11 months, Mr Dookeran has presented a budget in which a fiscal deficit of $7.3 billion was predicted, advanced a proposal to resolve the Clico crisis that was both unconventional and controversial and seen off the bellicosity of trade unionist Watson Duke with the argument that the State cannot afford to pay its public servants a salary increase of more than five per cent.It would be fair to say that in 11 months, Mr Dookeran has won some arguments while losing others.
But when the Finance Minister wrote a letter to the Prime Minister in which he advised that the board of Caribbean Airlines (CAL) should be "reconstituted with persons with knowledge and competence in the field," there are few who have observed the shenanigans going on at the airline who would disagree with him that this board needs to be changed.In an astonishingly frank letter, which was made available to this newspaper, Mr Dookeran said that the current board of CAL did not have knowledge or competence in the issues pertaining to airline business and did not have any appreciation for the issues of good corporate governance.These are interesting observations for a minister of finance to make.
The evidence for the charge that the board has no appreciation for issues of good corporate governance can be found in the mishandling of the dismissal of CAL chief executive Captain Ian Brunton, the failure of the board to consult the line minister, and the indecision over the acquisition of the ATR aircraft. It seems, as well, as though the members of the board have irreconcilable differences which would prevent their proper functioning.
On the issue of the competence of the CAL directors, although it is noteworthy that the current CAL board contains no one with anything approaching expertise in the airline industry, that alone would not be enough to disqualify the board from service.The previous board, chaired by Neal & Massy and Guardian Holdings chairman Arthur Lok Jack, did a perfectly adequate job of providing stewardship over CAL from its establishment in 2007; ensuring that the airline provided a superior level of service to its predecessor and initiating the acquisition of Air Jamaica.
That board did not have anyone with specific "knowledge or competence in the issues pertaining to airline business," but it managed its business competently, kept its ministerial overseers informed and went about its business without much fanfare-and certainly without the antagonism and infighting of the current board.It can be argued, therefore, that even in an industry as specialised as aviation, it is possible for a board to provide the necessary stewardship without having specific industry expertise.
While, clearly, the current board of the airline needs to be changed, there is no compelling evidence that packing the board with retired airline executives will achieve the desired lift-off for Caribbean Airlines.A board with one retired airline expert, with the balance being executives with proven track records and specific areas of competence relevant to the airline industry-such as law, engineering, human resource management- may be the ideal formula for the airline.Mr Dookeran is completely correct when he analyses that "the commercial stakes are high and the cost of political inaction will be high as well."Given the fact that the acquisition of Air Jamaica becomes a formality tomorrow, there is no doubt that the cost of inaction in appointing a new board could be very high indeed.
