Over half a million dollars is the average payout each Petrotrin worker will be going home with, says Finance Minister Colm Imbert. And some workers are each getting over $2 million in payments also.
Imbert gave the figures during Thursday night’s Parliament debate on legislation to vest assets of Petrotrin in the three new companies—Heritage Petroleum, Paria Fuel Trading and Guaracara Refining—which will form the restructured entity from December 1.
The legislation was passed at 11.59 pm with the Opposition United National Congress objecting all the way, from debate contributions to committee stage and final vote. It was passed with Government’s 21 votes, with 12 UNC MPs present voting against it.
Concluding debate, Imbert addressed various UNC claims and concerns, particularly two points by Opposition Leader Kamla Persad-Bissessar which he said were “interesting” but which he firmly rebutted.
On claims that closure of Petrotrin’s refinery would “pauperise” workers in the retrenchment/severance process, Imbert said that wasn’t so.
“The average payout is in excess $500,000 per employee! And there are a number of people who are getting in excess of $2 million in payments. It seems UNC MPs don’t understand the concept of ‘average’,” Imbert said.
“The average payout is in excess of $500,000, therefore that cannot be a ‘few’ (workers). That’s at least half. That’s the concept of average.”
On Persad-Bissessar’s claims, Imbert noted she’d said the People’s Partnership finance minister had signed an order vesting Palo Seco Agricultural Lands Ltd (PSAEL) with Petrotrin and she’d contended Government’s proposed legislation was flawed. She also claimed the hiring of Heritage CEO Mike Wiley was illegal, breaching Petroleum Act regulations (section 42). That act called for the licensee to minimise employment of foreign personnel, ensuring such employees are engaged only in positions for which the operator cannot, after reasonable advertisement in at least one daily newspaper, find available nationals with the necessary qualifications and experience.
But Imbert said Government firmly felt the 1993 Petrotrin legislation on vesting was badly drafted and the PP finance minister lacked the power to vest PSAEL lands in Petrotrin and only had the power to vest PSAEL shares in Petrotrin. Imbert said because of ambiguity in the law, Government—in the current bill—covered all bases on lands belonging to PSAEL and Petrotrin and all were vested. Due to the possibility of the PP’s vesting action being null and void, he said Government plugged all loopholes, specifically having the legislation vest PSAEL shares so no “smart lawyer” could attempt action.
Imbert said Wiley’s appointment to Heritage was proper since the Petroleum regulations Persad-Bissessar cited pertained to “licensee” and the Heritage company wasn’t a licensee, lacking a license to operate/explore/produce petroleum. For Heritage to become a licensee, he said the Energy Minister must consent to assign Heritage a petroleum license.
“That hasn’t yet occurred,” Imbert added.
On the handling of Petrotrin’s liabilities ahead, Imbert said the holding company being formed - Trinidad Petroleum Co Ltd - which will own the three new companies and Petrotrin itself, will own all assets and liabilities of the current Petrotrin.
“The holding company will decide how it will treat with the liabilities in terms of the revenue streams coming to the Heritage or Paria companies. All of the liabilities remain the liabilities of the holding company and subsidiary companies. Only short-term debts of Petrotrin - $400 million - will remain with Petrotrin and the other liabilities will be transferred to Heritage Petroleum. But the holding company will own all the assets and liabilities of the current Petrotrin.”
He also said experts and analysts hired by Petrotrin to advise the company estimated the new companies will earn US$316 million a year in net foreign exchange. This includes US$1 billion from crude oil sales, US$809m from sale of refined products regionally and US$128m from sales of refined products through bunkering. Imbert noted T&T’s sour crude oil’s current price is US$65 per barrel.