Don't hang your hat where your hand can't reach. Government received this sage advice yesterday from Independent Senator Subhas Ramkhelawan who noted the turbulent global outlook and IMF?projections on growth. Speaking in yesterday's Senate budget debate Ramkhelawan said T&T's planning and projects have to become more conservative.
Ramkhelawan expressed concern about constantly believing what he described as "glib" comments that "God is Trini" and that T&T's energy sector would always ensure the country is saved or buffered from international scenarios.
Raising a red flag on the Government's projected growth figure, Ramkhelawan urged the Government to plan for the downside since he said business experts always did that. He said projections from planning for the upside were only "gravy." "The (Finance) Minister has only just left the business sector, but if you're only planning for the upside and you take that spirit lash, you don't know where you're going to end up.
"Well organised families plan like that.?The family of T&T?must not be misled, the cold hard facts must be told," Ramkhelawan said, Raising several concerns about T&T's first economic driver-energy-he noted that since last year's announcement of the find of oil reserves-for up to 80,000 barrels of oil-Ramkhelawan said very little had been heard on this.?He said he was told by experts that T&T would need to drill 50 wells and this would take two to three years.
Ramkhelawan expressed concern about debt and the borrowings level. He said last year's debt was 38 per cent and this year's increased to 46 per cent. He said the Government's debt to GDP?level may approach the orange to red light zone. "When you get to a level of borrowings the bank starts to turn you aside as they worry if you can repay that debt and that is the situation we look out to 2015," he added.
He urged the Government to invest in the local food production sector before using its proposed Guyana joint venture plan. He said 50,000 acres of Caroni land were left fallow and this would have added to the GDP and employment levels.
Noting the Government investment in Cepep and URP, Ramkhelawan said, "You cannot eat well cut grass so it makes sense to redirect labour for agriculture." Ramkhelawan supported public offerings plan for several institutions. He said the FCB aspect will inject $2.1 billion to the stock market and TTMF will inject TT$1 billion to the market also. Ramkhelawan warned the Government to consider that the resolution of the Clico issue would take $2 billion more. Ramkhelawan called for answers on the issue of a $1.1 billion treasury bond. He said he was bothered by the issue of the bond , yet the funds weren't being used.
