The energy sector is in decline and a state of emergency for the sector needs to be called, said Robert Mayers, chairman of KSBM Asset Management Ltd in an interview. KSBM Asset Management executes repurchase agreements in TT$ and US$ and provides investment management services to pension plans and individuals.
Mayers was responding to statements made by Central Bank Governor Ewart Williams on Wednesday that the T&T economy was in a slump and has been declining for three consecutive years. Mayers said: "Your major component of gross domestic product (GDP) is your energy sector and that is in decline. The Government is (supposed) to declare a state of emergency in the energy sector. There are some serious issues that need to be addressed and I don't have a sense that anyone is addressing them," he said.
Asked to identify the issues to which Government should attend, Mayers said the natural gas supply was one such. Elaborating, Mayers said most of the energy plants at the Pt Lisas industrial estate are operating "in a low capacity because they are not getting the quantity of gas that is needed to run at 98 or 99 per cent capacity."
He said "reasonably bouyant" prices in the international market are keeping those companies afloat. He fears that investors may go elsewhere if those prices trend downwards. Mayers expressed shock that the Energy Chamber has not expressed its concerns about the problem of the energy sector's decline.
Construction sector
Other indicators in the financial and business sector show that the economy continues to weaken, said Dr Ronald Ramkissoon, senior economist, Republic Bank Ltd. "Much more needs to be done if we are going to have positive growth in 2012." He suggested more spending is needed and steps should be taken to heat up the construction sector.
"We are aware in the last budget speech, the Government did indicate a number of projects that were supposed to cause a turnaround this year. We are also aware several of those large projects have failed to get off the ground." Ramkissoon said there could be deep repercussions if the construction sector does not heat up soon.
