Members of the business community are very encouraged by the statements made by the Finance Minister that the country would experience a two per cent growth. Even though the two per cent growth does not signal an immense growth, Anthony Aboud, chairman of the Trade Investment Convention (TIC), said, "We have to remain positive." "I think it is a confidence statement; a real statement but we have to continue to work with the areas that we are strongest." Asked if the private sector is being encouraged enough to stimulate the economy, Aboud said, "Private sector investment really weighs on the confidence of the country as a whole." He was speaking at the launch of the TIC's 2011 Trade Convention on Tuesday at the Hyatt Regency hotel, Port-of-Spain.
According to Aboud, "once the country is stable, money is available to invest and we find the right opportunities, then we have a dynamic private sector. We also have the workforce that is willing to work."
Greig Laughlin, president of the T&T Manufacturers' Association (TTMA), shares a similar view. According to Laughlin, "after three years of decline and hitting rock bottom, the only way to go is up."
He said the manufacturing sector can only see positive things from now.He lamented that it has been a very difficult three years for the sector and its largest trading block, Caricom, also suffered tremendously due to the decline in tourism. However, Laughlin said that any growth is welcomed and he believes they should start seeing slight growth in the second and third quarter.
"This growth would depend on the implementation of the Single Electronic Window (SEW)." Laughlin said things needed to be done more efficiently as time is money. He explained that it costs a lot more to import in T&T and, if the cost rise, then the cost of products will also rise and, consequently, exports would decrease making the business sector uncompetitive. Trade Minister Stephen Cadiz-who delivered the feature address-said that the first phase of the SEW is on schedule for February 1. Following this, the system would be fully implemented by March. Another issue that has been plaguing the business sector for some time, in relation to the SEW, is the Port Authority.
Laughlin said he was anxious to meet and discuss the way forward with new chairman of the port, who would be installed tomorrow. "First on the agenda is to advocate for an increased budget as the port is operating on insufficient funding. "The port needs assistance in terms of expansion, the maintenance programmes are low and they need sufficient funds to run that port. "They are running the port on a shoestring budget not understanding that it is the lifeblood of the society." These issues he said needs to addressed urgently."We cannot expect to be efficient and expect to export more if these issues are not addressed." Another area of concern that Laughlin highlighted was the need for low-cost loans for manufacturers.
He said in a bid to expand the manufacturer's capability and plant capacity, they need to access cheap loans to purchase plant and equipment. "The loan market in T&T has not been the greatest. While countries like the USA offer a 1.0 per cent, we are still between seven to nine per cent," Laughlin said. "We need to find a way to access cheaper loans and we welcome some kind of criteria behind it." He noted that the Cadiz was receptive to the idea and they looked forward to continued dialogue on the initiative.