Contact Magazine The Legislative Agenda Issue by Eureka Communications Limited

Contents

22 The Tobago Tourism Plan 24 The Caribbean Court of Justice: Catalyst for Regional Integration? 28 The Metrology Act 30 What every business person should know A quarterly publication of The Trinidad and Tobago Chamber of Industry and Commerce

32 World Equity Markets Q1 2014

A modern public procurement law for Trinidad 34 Economic and Financial and Tobago a Statistics necessity for good governance

It’s more than passing laws

Therefore, to address a topic like “The Legislative Agenda” is by any measure an ambitious goal. Still, Procurement” means it was a topic the the process of Chamber felt an acute need to address when acquiring property or services, commencing it considered the country’s development and with the identification of the need for the state of current affairs. property or services and ending with the specific performance of the related contract.

Spatial Development Planning for ‘Other People’ - US? However in 2009, the Ministry of Local Government took a bold step to produce Municipal Development Plans (MDPs) for each regional corporation to rationalise the physical planning process at the local governance level.

36 Economic Outlook 37 First Quarter 2014 Review 40 Fiscal Agenda in Energy

The e-Legislative Agenda - Trinidad and Tobago 42 Energy Statistics In order to achieve this agenda Trinidad and Tobago will be expected to have the appropriate legal framework to enable a modern, knowledge-based society and treat with ICT related issues such as cybercrime, data privacy, e-waste, e-commerce, and telecommunications policy.

Editor: Halima Khan Editorial Board: Communications Committee: Moonilal Lalchan, Catherine Kumar, Tricia Henry, Hugh Ferreira, Anthony Agostini, Andrew Johnson Design & Layout JG Design Caribbean Published by Eureka Communications Limited Suite #2 No.9 Avenue First, St. James, Trinidad W.I. Tel: (868) 622-2017 • (868) 628-1555 Fax: • (868) 622-4475 E-mail: • contacteureka@yahoo.com • lanny5052@gmail.com • jasong@tstt.net.tt For The Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle, Westmoorings, P.O. Box 499, Port of Spain, Trinidad & Tobago W.I. Tel: (868) 637-6966 Fax: (868) 637-7425 E-mail: chamber@chamber.org.tt • Website: www.chamber.org.tt For this magazine contact: Tel: (868) 637-6966 Tobago Division:Trinidad and Tobago Chamber of Industry and Commerce 2nd Floor ANSA McAL Building, Milford Road, Scarborough, Tobago Tel: (868) 639-2669 Fax: (868) 639-2669 E-mail: tobagochamber@chamber.org.tt

64 Branford General Contracting Services Going Global Limited 66 Quarterly Report-Tobago Division Welcome to New Members 69 The TT Chamber CSR Committee CSR Workshop Launch 70 The History of Nelson Island 72 Advertisers

Information on Trinidad & Tobago to the north-east of Trinidad. There are two international sea ports in Trinidad, Port-of-Spain and in Point Lisas. The International airports are located in Piarco, Trinidad and Crown Point, Tobago. Trinidad’s economy is primarily dependent on the petrochemical sector, while the island of Tobago is mainly dependent on tourism. Nariva Swamp, Trinidad rinidad and Tobago (T&T) has a population of approximately 1.3 million people who inhabit 4,827 square kilometers (1,886 miles) in Trinidad and 300 square kilometers (117 miles) in Tobago. Trinidad is located between 10º 2’ and 11º12’ N latitude and 60º 30’ and 61º 56’ W longitude or 11 Kilometers (6.8 miles) of the eastern coast of Venezuela. Tobago is located 32.2 Kilometers (20 miles)

The twin island republic boasts a multi-ethnic people, diverse culture and unique cuisine. As a result of its cosmopolitan population, the country celebrates a significant number of festivals around the year including carnival, Phagwa or Holi, Divali and Eid-Ul-Fitr. Tobago the smaller island, has a population of just over 54,000 and has an interesting history in that, during the colonial period, French, Dutch and British Forces fought for the possession of Tobago and the Island changed hands more than 22 times – more than any other Caribbean Island.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Trinidad and Tobago Chamber of Industry and Commerce

VISION STATEMENT We are the Voice of Business. MISSION STATEMENT To be the voice of business in the development towards a strong, sustainable national economy. BOARD OF DIRECTORS Moonilal Lalchan, President Andrew Sabga – Immediate Past President Robert Trestrail – Senior Vice President Christopher Mack – Vice President Ronald Hinds – Vice President Rakesh Goswami – Vice President Wade George – Director Luana Boyack – Director Paula Rajkumarsingh – Director Jacqueline Francois – Director Jean-Pierre Du Coudray – Director Reyaz Ahamad – Director Diane Hadad – Chairman, Tobago Division Catherine Kumar – Corporate Secretary & Chief Executive Officer COMMITTEES - TRINIDAD • Communications • Corporate Social Responsibility

• Crime & Justice • E-Business, Information Technology & Telecommunications (EBITT) • Energy COMMITTEES - TOBAGO • Business Development & Tourism • Inter-island Transport

• NOVA • Trade & Business Development • Health, Safety & Environment • Security • Environment

HOW TO CONTACT US Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle, Westmoorings, P.O. Box 499, Port of Spain, Trinidad & Tobago W.I. Tel: (868) 637 6966 Fax: (868) 637 7425 E-mail: chamber@chamber.org.tt • Website: www.chamber.org.tt Tobago Division of the Trinidad and Tobago Chamber of Industry and Commerce 2nd Floor, ANSA McAL Building, Milford Road, Scarborough, Tobago Tel: (868) 639 2669 Fax: (868) 639 2669 E-mail: tobagochamber@chamber.org.tt

• Facilities Management & Maintenance Contact • Vol.14 No.2 2014

An Editorial Note from the President

It’s more than passing laws By Moonilal Lalchan

Moonilal Lalchan, President, Trinidad and Tobago Chamber of Industry and Commerce

addressed in past CONTACT magazines and yet others will be included in future ones. However for this magazine we felt that certain issues have such wide-ranging implications they deserve special mention. Procurement is a buzz-word on everyone’s lips and rightly so in a country where government is often the largest purchaser of goods and services. Spatial planning is much less a topic of national discussion, but we believe that it should be, as this issue has far-reaching effects on our quality of life since traffic, flooding or even access to utilities are all linked to it.

to get the right legislation that can be effected. There are currently several pieces of legislation which have been assented to but cannot be put into law because the supporting infrastructure is absent, such as the package of legislation that includes the Children’s Act of 2012 or one included in this issue – the Metrology Act.

Any aspirations to development must be supported by a cohesive ICT framework – something to which this country still aspires to develop and implement. In Tobago, the tourism dependent economy is grappling to find a balance between preserving the island’s traditional culture and encouraging modernThat being said, the articles contained in this day investment. issue are by no means exhaustive; there are many other areas we would have liked to As we go forward as a nation, these and many address. In fact, some key issues such as other areas need to be addressed. But it is campaign finance reform and crime have been not simply a matter of passing law – we need

We must also consider that our laws cannot remain stagnant; they need to be constantly reviewed in order to always meet the everevolving needs of our society, and to keep abreast with international legal requirements. Those who determine the Legislative agenda for Trinidad and Tobago are, we are certain, interested in seeking good for the country. They must consequently firmly pursue an agenda that provides our citizens and visitors with a society that respects the rule of law and the rights of their fellow men.

egalities dominate every aspect of our lives. From birth to death and throughout our lives, the law is a constant reference. However mundane or complex the task, it is usually referenced against some law – from buy cable to registering a new business.

Therefore, to address a topic like “The Legislative Agenda” is by any measure an ambitious goal. Still, it was a topic the Chamber felt an acute need to address when it considered the country’s development and state of current affairs. The reference to the Legislative Agenda is on two levels: the first is addressing some key issues that impact on development of business and our society and the second is identifying what needs to be put in place at the governmental level to regulate such development.

In many instances, too, we do indeed have the legislation but what is lacking - as we can see from the wilful ignoring of our road laws - is the proper monitoring and enforcement.

Contact • Vol.14 No.2 2014

SERVING THE CARIBBEAN

An Approved Mediation Agency registered with the Mediation Board of Trinidad & Tobago The Centre’s Mediation Programme is Accredited by the Mediation Board of Trinidad and Tobago

The Centre provides public and customized in-house training in ADR & related fields, such as Mediation, Negotiation, Arbitration, Conflict Resolution, Stress & Anger Management, Self Management for the Busy Executive, Dealing with Difficult People, Critical Thinking For more information contact: THE DISPUTE RESOLUTION CENTRE, Ground Floor, Trinidad and Tobago Chamber of Industry and Commerce Building, Columbus Circle, Westmoorings. Tel: (868) 632 4051 or 637 6966 Fax: (868) 632 4046 or 637 7425 E-mail: drc@chamber.org.tt

Feature

A modern public procurement law for Trinidad and Tobago a necessity for good governance By CAT Herbert Attorney-at-Law LEC, LLM (UWI), BA/LLB (ANU) Australia PART 1 The Context of Public Procurement A Sunday newspaper columnist identified public concern about the use of State funds involved in settling litigation claims as a procurement issue. Other writers had concentrated on the ethical issues. What is clear is that there is increasing public awareness that procurement is no longer only about buying goods and services by State entities but also about the spending of public money. “Public Money” is understood to mean (a) money which is received or receivable by the State and its agencies or raised by an instrument for which, it can be reasonably inferred, the State accepts ultimate liability in the case of default; and (b) money which is spent or committed for future expenditure by the State or its agencies, distributed by the State or its agencies for a public purpose or raised by a private body in accordance with a statutory instrument for a public purpose. It should be noted that this definition of public money does not currently exist in the statute book of Trinidad and Tobago. “Procurement” means the process of acquiring property or services, commencing with the identification of the need for the property or services and ending with the specific performance of the related contract. “Public Procurement” therefore means procurement involving the use of public money. Procurement and Good Governance An issue of prime importance currently in the public domain is the relationship of public procurement to good governance. However, the subtle distinction between Government and Governance should be noted. Government is about what, that is, the activities to be

undertaken by the elected representatives of the people. Governance is about how, that is, the values and processes involved in the undertaking of those activities.

Concept of Public Money Public money must be understood to be more than receipts and monies held in trust as currently defined in the Exchequer and Audit Act. However, any legislative notion of public So what do Governments actually do? In money should also include a reference to essence, a Government raises money and those public agencies for whose expenditures spends money. It raises money by taxing the the taxpayer is ultimately liable. public, or by borrowing, ostensibly to implement its policies and programmes. In However, this notion of public liability for theory when a Government spends money it expenditure by Government, a feature in does so for and on behalf of the people. modern fiscal management legislation, is not Government essentially manages the specifically embraced in the current definition taxpayer’s business. Persons elected or of public money in the Exchequer and Audit appointed to undertake that responsibility on Act Chap. 69:01, an Act which is over 100 behalf of Government therefore effectively years old! It is interesting to note also that act as stewards in the public interest. In this common best practice in fiscal management context, the term ‘Government’ embraces legislation specifies the operation of principles Government Bodies and State-Owned of good fiscal management to include, Enterprises (SOEs). wherever possible, balanced budgets and the reduction of debt. Thus, because of its use Public sector procurement differs from private of public money, the State cannot be seen as sector procurement because of the use of an ordinary player in the commercial market. public money. By definition, the use of public Any involvement of public money attracts money imposes a duty of care to act in the duty to serve the public interest. public interest on all those who are involved in procurement transactions. The duty of care When Government is governing i.e. promoting embraces the duty to safeguard and ensure the public interest, it incurs obligations that that value for money is attained. Because of impinge upon commercial activities involving the duty of care, the public sector procurement the spending of public money. In the context transaction is subject to a greater degree of of public procurement other public policy transparency and accountability than that concerns are taken into account such as which obtains in private sector procurement. competitiveness in the market and protection of local industry which may be just as Obviously, the use of public money demands important as the core activity addressed in that its use will only be for the purposes the medium of the procurement contract. intended and its expenditure will be disbursed only by authorized persons. Therefore, all When the Government is one of the parties persons, individual or corporate, involved in to a contract, the legal nature of the contract public procurement, are obliged to account shifts from private law to public law because to the taxpayer for the achievement of value the use of public money and the accountability for money. by Government to the taxpayer, a third party.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Feature The Government’s involvement in a contract therefore demands public law values which sometimes lie uneasily with the strict commercial principles operating in the private sector where the terms of the agreement generally rule. The list of public law values includes openness, fairness, participation, impartiality, accountability, honesty and rationality. The justification for special standards in public procurement contracts is the spending of public money, yours and mine. In real terms, this means that we are liable for Government’s bad spending and we benefit from Government’s spending when the principles of transparency, accountability and value for money are implemented. The link between public expenditure, particularly in public procurement, and good governance is therefore clear. The contract, a tool well known in commerce, is essentially an agreement between specified parties for the transfer of goods and services for consideration and, as such, attracts principles of private law. Yet, when Government uses a contract as a tool for implementing public policy the rules can shift. In the context of public procurement, the contract is merely a tool in the process. Government tends to use the Contract to – 1. Procure goods and services; 2. Provide goods and services; and 3. Implement policies. Increasingly, the government contract is being used as a tool of public administration. While the ordinary principles of contract law apply to Government contracts, the question arises as to whether the general rules and practices of contracts are suited to the use of contracts in the public sector. In public procurement where the main instrument in the process is the contract, the applicable law inevitably comprises a fusion of public and private law principles. In contract law the remedy for an aggrieved person before the Courts is damages or frustration. But in public law, the remedy is a review of the decision which enables amongst other things a review of that decision and also damages. This remedy is available to third parties who are aggrieved by that

decision. In contract law only the parties to the agreement can access the assistance of the Court in the event of a grievance. Taxpayers are strictly not party to a contract. The Court is aware that taxpayers, outside the ballot box, have limited avenue of redress for bad management of their money or for poor delivery of service in contract law.

said: decency, security, and liberty alike demand that Government officials shall be subject the same rules of conduct that it commands to the citizen. In a Government of laws, existence of the Government will be imperiled if it fails to observe the law scrupulously. Our Government is the potent, the omnipresent, teacher. For good or ill, it teaches the whole people by its example. However, it should be noted that the Crime is contagious. If the Government application of rules of contract law to becomes a law breaker, it breathes contempt Government contracts present some for law; it invites every man to become a law anomalies because of the unique nature of unto itself; it invites anarchy. The general Government as a party in a private sentiment of the Government as teacher is commercial transaction. In the final analysis, relevant to the Government’s commercial and for the following reasons, a Government’s activities. action cannot be fettered if there is a contest between the contract and the Government’s These points illustrate that a Government as public responsibilities: a party to a contract cannot be equated to a private person in a contract. Essentially, the 1. Application of Doctrine of Necessity rules can change at any time. This impacts Government can call upon certain doctrines on how a public contract may be interpreted such as “the doctrine of executive necessity” by the Courts. It is therefore appropriate that to void a contract. This avenue not available any law pertaining to public procurement to parties in a private contract as a should ensure appropriate remedies for the Government cannot be held liable if there is taxpayers who, while effectively NOT parties a contest between a breach of the contract to the contract, are the purported beneficiaries and the Government’s public responsibilities. of the contract and are ultimately liable for the expenditures incurred by the contract. 2. Government’s Legislative Capacity Government can legislate out of its PART 2 contractual responsibility. For example, Justice Sharma, dissenting, at paragraph 76 where a statutorily established power NH International (Caribbean) Ltd v company entered an agreement with a local UDeCOTT and Hafeez Karamath Ltd CoA government company to supply electricity 95/2005 said: “In a small country which at one penny per unit “for all time thereafter”, possesses enormous wealth, and in which the Court upheld the agreement. The Court allegations of corruption are rife, the said it was possible for the supplier to obtain Government has proclaimed its commitment relief by legislation. The contractual doctrine to accountability, transparency and integrity o frustration was rejected. In this case, The in public life. The Courts have a special role Power Company Limited v Gore District to play in protecting this ethos particularly Council [1997]1NZLR537, the Court where state companies incorporated as private observed that private law values which have companies with unlimited taxpayers’ funds traditionally governed contractual solutions at their disposal have the freedom to bypass are not necessarily appropriate where the the CTB.” No greater statement justifies a contract is between to public sector agencies. total review of the current procurement regime in Trinidad and Tobago, even if the author 3. Government as an exemplar was a dissenting judge. The obligation upon Government to serve the public interest particularly when it enters Current Procurement Regime in Trinidad the commercial arena separates it from other and Tobago players in the commercial arena. Essentially it has a higher duty of care; it must act as an The legal framework of the current exemplar. In Olmstead v the United States procurement regime in Trinidad and Tobago 227USA438 (1928), a case about Government resides in the Central Tenders Board offices illegally tapping telephones, the Court Ordinance. The current law, process driven, Contact • Vol.14 No.2 2014

Feature highly bureaucratic and with little connection to a sophisticated marketplace, particularly with respect to multi-million dollar capital works using BOLT, or outcomes largely confined to the tendering stage of the procurement cycle with little reference to the critical design and execution components of procurement. While there has been some delegation so that, for example, a Permanent Secretary can enter a contract of up to one million dollars, without limitation on the number of contracts, the legislation nevertheless reflects a command and control approach by a centralized agency in respect of the purchase of goods and services by Government. There is no concept of the purchaser’s, or the supplier’s responsibility to the taxpayer because of the use of public money, the medium of the transaction. The Central Tenders Board also excludes Government to Government transactions and those where public money is used for transactions that go beyond goods and services such as completed capital works by BOLT or BOOT schemes provided by private contractors. This leaves an open playing field which screams for regulatory oversight of public expenditure.

The secondary public policy consideration is that any system of public procurement be sensitive to the demands of the market by being sufficiently flexible to accommodate change. A systemic approach in contrast to a regulatory approach is therefore desirable. The justification for reform is clearly identified in the White Paper on Reform of Public Sector Procurement Regime tabled in Parliament in 2005. The submission of the Private Sector/Civil Society Group comprising, among others: (a) the Joint Consultative Council for the Construction Industry (JCC); (b) the Trinidad and Tobago Transparency Institute (TTTI); and (c) the T&T Chamber of Industry and Commerce; (d) the Trinidad and Tobago Manufacturers Association (TTMA); (e) the American Chamber of Commerce (AMCHAM) to the Government in April 2012, proposed a modern public procurement regime endorsing the policy concerns in the White Paper and reflecting current international best practice in procurement law. See www.jcc.org.tt/procurement

Imperatives of Reform The objectives of the Bill proposed by the Because of the increasing use of the public Civil Society/Private Sector Group were to contract as a tool for implementing public policy, the sophistication of Government’s • Systematically bring all agencies spending involvement in the commercial market place public money under a single, overarching and the extraordinary domination and impact legal and regulatory framework based on of the public sector on the economy of Trinidad clear principles that effectively cover all and Tobago, a fresh assessment of the legal stages of the procurement process and management of public procurement is being parties involved in a transaction involving promoted by Civil Society and Private Sector. public money; • Provide effective mechanisms for oversight Any reform should acknowledge that the and control; ultimate responsibility for the transaction • Require appropriate transparency of the involving public money is that of the taxpayer. value and impact of transactions involving Therefore any law should require the public money; application of public law values and • Ensure as far as possible, integrity in the appropriate grievance procedures. The public procurement process; fundamental question to be addressed must be • Meet international anti-corruption standards to what extent is the person actually spending consistent without international obligations; public money liable and accountable to the • Promote the prevention of corruption and ultimate purchaser i.e. taxpayers. The core the consequent increase in investment; element is the transaction involving public • Enable parties within that framework to money rather than the instrument which is the be responsible for the transaction and contract. related process.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

The following 5 elements were embedded in the Bill: 1. The use of public money as the cornerstone of defining any public procurement; 2. Procuring agencies encapsulated any organisations using public money to acquire services or property; 3. Effective independence of the Office of Procurement Regulator from the Minister or Cabinet both in the procurement system and the grievance mechanism; 4. Value for money is linked to efficient use of public money; 5. Participation of Civil Society in the maintenance of the integrity of the procurement system. The Government on 2 April, 2014 tabled a Public Procurement and Disposal of Public Property Bill, 2014 in accordance with its promise to the electorate to undertake procurement reform. The Government had available to it a Bill which has been in circulation since 2010 prepared by the Civil Society/Private Sector Group. This private sector driven Bill proposed an architecture that was not only consistent with international best practices and the needs of the market place but also reflected a legal approach that enabled the parties to the contract to determine their aims within a principled framework. The Government Bill reflects elements of the Private Sector/Civil society Bill, provisions of the Central Tenders Board Ordinance and related regulations particularly with respect to disposal of obsolete furniture (a small subset of “property”) and the draft law proposed over a decade ago by UNCITRAL – now out of touch with modern procurement practices. After the Constitution, the draft Procurement and Disposal of Public Property Bill, 2014 is the most singular piece of legislation affecting not only the efficiency of the market place, the operations of local businesses from production, manufacturing to retail operations but also the reputation of Trinidad and Tobago in the international market. The implementation of the principles of good governance in the Bill will require the Private Sector/Civil Society Group to assist the people to obtain a procurement law that is truly nation building.

Feature

Spatial Development Planning for ‘Other People’ – US?

By Trinidad and Tobago Society of Planners

The History In 1984, the two-volume National Physical Development Plan (NPDP) was approved by Parliament after approximately four years of work by the Town and Country Planning Division. It was felt that a plan enshrined in law would provide the framework to both guide and regulate development in the country. Thirty years later, we now know that the plan and its supporting legislation cannot by themselves achieve sustainable and equitable development. To be sure, the NPDP has informed most of the major development in the country. It forecast a capital region and highlighted the emergence of the conurbation of towns in central Trinidad. It recognised that the petrochemical sector would continue to grow and remain the dominant earner of foreign exchange. A growth pole model was proposed, which would enable the provision of services and employment to all regions. It also proposed development of Trinidad’s north coast and Tobago’s tourism sector based on both natural resources and culture. What the NPDP failed to address was the inability of our leaders to steer its people towards the proper utilisation of our natural resources. It was written before the two last ‘oil booms’, before the electronic and communication revolutions and before the love affair with the private car. It did not provide any answers to dealing with a country with ‘more dollars than sense’ and a belief that planning was for the “other people”. The Present In our current situation, unauthorised hillside development continues despite a moratorium on building above the 100-metre contour line. The marginalised capture the last remnants of the forests and subdivide agricultural land to construct homes, often with little or no urban infrastructure or services. The love affair with the automobile lingers and the State extends its highway building campaign and subsidy of gas prices, thereby fuelling private car ownership instead of promoting public transportation use. The rural experience is becoming increasingly difficult to find and the farmers that persist, battle loss of crops to flooding, theft and disease,

poor access roads, difficulty to secure financing and the influx of cheap foreign-subsidized products. Even worse, the State itself is a major offender in the breaking of its laws – from the use of illegal banners and advertisement boards to building without planning permission. The Plans In the past, several regional development plans were prepared but there was no attempt to bring them to the legislature. However in 2009, the Ministry of Local Government took a bold step to produce Municipal Development Plans (MDPs) for each regional corporation to rationalise the physical planning process at the local governance level. These were developed with more stakeholders’ consultation than had previously been the case. These MDPs have as their strategic focus the identification and direction of each municipality’s assets and resources to ensure balanced and comprehensive development throughout the country and to enable the municipal bodies to implement the policies, programmes and projects of the State with specific regard to their local areas. The THA has also produced plans focusing on the socio-economic development of the island. In an unprecedented move in 2010, the government adopted these municipal plans and while they have not formally been brought to Parliament, they are generally regarded as guides to spatial development that at least the municipalities are taking seriously.

In essence, the NSDS aims to sketch broadly how the country should develop spatially over the next 20 years. It is intended that this document will articulate a sustainable, longterm vision for the country’s future development, enunciate the spatial allocations of major land uses, present sectoral development priorities in a holistic fashion and suggest a framework for the co-ordination of an integrated planning system that involves all levels of governance. A framework for reviewing the MDPs in the context of the NSDS is currently being developed to ensure that they complement each other. The Law Within the past two years, the MPSD has stepped up the pace, producing the Planning and Facilitation of Development (PAFD) Bill and its complementary legislation, the Registration of Urban and Regional Professional Planners (RURPP) Bill. Both Bills have been laid in Parliament with the former now moving through a select committee of the upper house. The new legislation adopts a twopronged approach to guiding, facilitating and regulating spatial development. The NSDS with the MDPs will serve as the framework for guiding and stimulating development, while the PAFD Bill and the RURPP Bill will serve to facilitate and regulate planning and the planning profession. Once enacted, the PAFD Bill will replace the Town and Country Planning Act of 1960 and seek to revolutionise the way that development is regulated. The present legislative framework does not adequately deal with informal and illegal development. The PAFD Bill enshrines in law a new enforcement unit charged with ensuring that all development is in conformity to land use policies and development standards, armed with an arsenal of new tools and stricter penalties to ensure a greater level of compliance. The Bill also introduces a more transparent judicial appeal process, utilising the existing capacity of the Environmental Commission.

At the national level in 2014, the Ministry of Planning and Sustainable Development (MPSD) produced the National Spatial Development Strategy (NSDS). The NSDS is described as the overarching framework that will spatially represent the socio-cultural, economic and environmental development priorities for Trinidad and Tobago. Its strategies and policies articulate the government’s vision for sustainable development. Critically, the document builds on the 1984 NPDP and is an attempt to renew the relevance of planning to a generation whose greatest and most important While the PAFD Bill provides the ‘teeth’ of challenge is achieving sustainable development. enforcement that has been sorely lacking, it

Contact • Vol.14 No.2 2014

Feature more importantly brings planning closer to the people. The determination of simple applications—a specific category of development as defined in the bill—is moved to the Municipal Corporations, which will then function as ‘one-stop shops’ where the complete land and building approval process will be located. It is envisioned that the system will permit greater flexibility and adaptability in the responses of planning officials to development initiatives. To bring planning functions closer to the general public, two provisions of the PAFD Bill are key. The first is the introduction of third party rights. Under these provisions, the

public must be notified of all applications for development, and be permitted to comment and have these comments taken into consideration in the determination of applications. Secondly, sub-national planning functions are moved directly to the people that they serve. This involves a mandatory process of participatory consultation in the development planning process, which will be under the mandate of the Municipal Corporations and the THA, guided by the plans and policies of the National Planning Authority. This Authority will establish technical and quality assurance mechanisms for all local planning bodies. Spatial Development Planning for US? As we move

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

towards a new era in planning, achieving a better system not only involves envisioning what the system should be but also changing the ways in which people act. While intensive stakeholder consultations and subsequent amendments to the Bills might result in public acceptance of the new regimen, a national planning conversation must be initiated to ensure that we move towards efficiency as well as people-focused objectives. Since we now know that policy and supporting legislation alone cannot achieve sustainable and equitable development, we must have at the centre of our plans and laws, answers to the questions of who development is for and what it aims to achieve.

Feature

The e-Legislative Agenda Trinidad and Tobago By Atiba Phillips

he Minister of Finance Larry Howai, on the July, 10, 2012 at the Trinidad and Tobago Chamber of Industry and Commerce, stated that the four areas Trinidad and Tobago needed to focus on to make the economy more competitive are: tourism, downstream energy, financial services and ICT. On the October 10, 2011 the Minister presented a budget statement for 2012 entitled “From Steady Foundation to Economic Transformation”. At page 17 of his presentation under the heading of Broadband Infrastructure the Finance Minister stated: “…the country-wide deployment of Information and Communications Technology is a key enabler of sustainable economic and social development in Trinidad and Tobago. This has been identified in two of our seven pillars proposed for sustainable development, namely the quest for a knowledge intensive economy and access to Information and Communication Technology.”

In order to achieve this agenda Trinidad and Tobago will be expected to have the appropriate legal framework to enable a modern, knowledge-based society and treat with ICT related issues such as cybercrime, data privacy, e-waste, e-commerce, and telecommunications policy.

Act 2000 and the Electronic Transfer of Funds Crime Act 2000. The Computer Misuse Act creates offences for unauthorized access to computer programs or data, unauthorized modification of computer programs or data, obstruction of the use of a computer and unauthorized disclosure of access codes. There are investigation provisions providing limited “lawful access” to computers. The Computer Misuse Act may also be amended to include new but related offences. The Electronic Transfer of Funds Crime Act prohibits the unauthorized or fraudulent use of a credit or debit card, the theft of a card, forgery of a card, trafficking in counterfeit cards and use of information (e.g., lists, account numbers) about cards by a financial institution without the permission of the cardholder. The Children’s Bill 2012 / Act treats with child pornography and its publication.

transactions Acts were fully passed in Barbados (2001), Bahamas (2003), Antigua (2006) and St. Vincent (2007)).

ii. Amendments to Exchequer and Audit Act A major objective of new legislation must be to facilitate Government’s ability to transact business electronically, including receiving or making electronic payments of money, maintaining records, collecting, storing, transferring, receiving or otherwise handling information and documents. This requires amendments to the Exchequer and Audit Act to allow for electronic monetary transactions with Government.

1. Technical Standards and Interoperability Frameworks for ICT infrastructure / Systems This will allow for a standards based approach to enable further efficiency and enable services to be developed across Ministries and sectors. This is an essential pre-requisite for “joinedup” and Web-enabled Government.

Some of the legislative items which are absolutely necessary to clarify marketplace rules and build confidence in Trinidad and Tobago as a preferred innovation / knowledge iii. Amendments to Exchequer and Audit economy destination, and are currently in- Regulations process (some for many years) include: See above: (i) E-Payments (Gov’t Receivables) Regulations, (ii) E-Payments i. Cybercrime Bill (Gov’t Expenditure) Regulations. An Act to provide the legal tools to treat with cyber-crime (e.g., fraud through the Internet, iv. Electronic Transfer of Funds Act hacking, manipulation of data, introduction The Electronic Funds Transfer (“e-money”) of viruses, cyber-stalking etc.). Some of these Bill to allow for payment of monies and taxes issues are treated with in the Computer Misuse online. (As a comparison similar electronic

v. Amendments to the Telecommunications Act The Telecommunications Act has been in effect since 2004 and there are several amendments now for consideration to treat with Authorisation, Spectrum, Universal Service, Number Portability, Consumer Rights and Obligations. Other legislation which will also be critical – which have been developed and deployed across the world incliuding the UK, Hong Kong, Greece, the European Union, Ghana, Mozambique and Mauritius - but is yet to enter into our domestic drafting process include:

2. Online Piracy (Digital rights management) Laws/policies against online trafficking in copyrighted intellectual property and counterfeit goods. It criminalizes production and dissemination of technology, devices, or services intended to circumvent measures (commonly known as digital rights management or DRM) that control access to copyrighted works. 3. Online Privacy Internet privacy involves the right or mandate of personal privacy concerning the storing, Contact • Vol.14 No.2 2014

Feature repurposing, providing to third-parties, and it is currently shared among multiple displaying of information pertaining to oneself ministries and agencies, with a weak online. coordination mechanism in the form of an ICT Inter-Ministerial Committee”. 4. Establishment of the Information Commissioner Indeed while the Ministry of Public Pursuant to the Data Protection Act. administration has historically housed the national ICT mandate (and continues to 5. Policy on re-use of Government possess the mandate for Public Sector Reform Information (Open Data) and develop policies and standards which Policy / Laws on sale or re-use of Government impact the area of ICT), other Ministries play information - e.g. statistical information, maps policy-making and oversight roles. The etc. For example, when the U.S. Government Ministry of Science and Technology has released weather and global positioning oversight of the National ICT Company satellite (GPS) data to the public, it fueled an (iGovTT) and the regulatory body for the industry that today is valued at tens of billions telecommunications sector, TATT; the of dollars per year. Now, weather and Ministry of Trade and Industry manages mapping tools are ubiquitous and help TTBizLink – the national single trade everyday Americans (and citizens around the electronic window and oversees e-Teck, globe) navigate their lives1 manager of Tamina technology park; the Ministry of Public Utilities oversees the stateThe Issue of Governance owned telecommunications and electricity A recent World Bank Report on the Trinidad providers TSTT and T&TEC and the Ministry and Tobago ICT Sector stated that “The of Finance has been given the mandate to policy-making function for the ICT sector in oversee the roll out of a National Broadband Trinidad and Tobago is very fragmented, as Strategy.

The Requirement for the Road Ahead ICT is a specialised area that requires subject matter experts to craft the necessary laws, regulations and rules which are best suited to our particular national aspirations while at the same time being informed by international experience and good practices. To drive the continued development and diversification of the Economy of Trinidad and Tobago, there must also be a lead entity as well as a supportive institutional framework which is so empowered by statute and mandate, which is charged with ensuring that the fourth and fifth pillar of development (i.e. ICT, and the establishment of a Knowledge-based Economy) are soundly achieved as the alternative economy to the energy industry. This would include driving a suite of legal enactments which will set up the necessary legal frameworks to enable a rapid transformation to a ICT enabled smart island. Such an enabling environment and governance structures will be crucial to T&T in delivering on the promise of economic diversification and the attainment of a knowledge economy within this decade or the next.

Communications Committee The Communications Committee is a Boardappointed Committee of the Chamber, chaired by the sitting President. Its role is to conceptualise and execute the Chamber’s communications strategy as guided by the Board of Directors. As such the committee oversees the publication of CONTACT magazine, three weekly newspaper columns, a weekly radio programme, media releases and other electronic newsletters and bulletins. Each CONTACT magazine is thematic so that two thirds of the articles explore the issues related to the particular theme. The magazine is distributed free of charge to Chamber members. Complimentary copies are given to Members of Parliament, diplomatic missions, hotels and subscribers to the

Guardian newspaper. CONTACT may be read online at www.contact-tt.com. The weekly “CONTACT with the Chamber” radio programme airs on I95.5 FM at 7:25 a.m. each Tuesday. It represents a Chamber editorial and is voiced by the Chamber’s Chief Executive Officer, Catherine Kumar. Programmes are available on the Chamber’s website www.chamber.org.tt. The main issues that form the basis of the Chamber’s lobbies are largely reflected in the newspaper columns. Since 2004, the Chamber has maintained three weekly newspaper columns - Wednesdays in the Business Express and Thursdays in both the Guardian Business and the Newsdays Business Day. Writing on the premise that all issues which affect the

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national landscape also affect business, the columns serve to express Chamber opinion and policy. Topics for articles have included the economy, trade, crime, education, agriculture, health, the environment and culture. The committee encourages Chamber members to submit columns or ideas for columns on topics of interest. Columns may be between 700-900 words in length and the Chamber reserves the right to publish, subject to review by the Committee. The weekly columns may be accessed on the Chamber’s website at www.chamber.org.tt. For further information on this committee kindly contact Halima Khan, Communications Officer, Marketing and Communications, at 637-6966 x 227 or email hkhan@chamber.org.tt.

Feature

The Tobago Tourism Plan By Dalia King

n August 15th 2012, New Zealand’s Green Party presented to its parliament the Overseas Investment (Restriction on Foreign Ownership of Land) Amendment Bill. Proponents of the bill stated that “New Zealand must protect its global advantage by keeping New Zealand land for New Zealand citizens…” to which its detractors responded that it was “blatant xenophobia”, “anti-growth”, “based on fear”, and “a national embarrassment”. The rejoinder to this was to clarify that the Bill sought to restrict foreign investment in land where there was no likely economic benefit to New Zealand. Things then turned rhetorical with the question: “How can it be xenophobic to require foreign owners to add value to our economy?”

One of the last advocates of the Bill lamented that “New Zealand is a target if we are not smart enough to have the intelligent debate, which obviously the National Party is incapable of, to discuss how we engage with foreign investment, what kind of foreign investment is good for New Zealand, and what kind of foreign investment does not add anything to the New Zealand economy…that is the kind of sophisticated discussion that we need to have as a country, as we engage as a small, open economy with the rest of the world.” The dig at the ruling party was just one of the many ripostes that characterised the debate, memorable among them the description of the bill by an opponent as “like something that they have cooked up over a joint out the back”. It had been a heated debate; and the Green Party’s bill failed, but only just, by 59 votes to 61. Five years earlier on February 14th 2007, Trinidad and Tobago’s Minister of Finance, by virtue of The Foreign Investment

(Tobago Land Acquisition) Order 2007, declared the island of Tobago “an area for which a foreign investor shall first obtain a licence…before acquiring any land.” This order set Tobago apart from Trinidad where to this day, a foreign investor may under the Foreign Investment Act, acquire residential land not exceeding one acre or commercial land not exceeding five acres, without obtaining a licence.

and Nevis and St Lucia all have licence regimes. In the British Virgin Islands, property for sale is advertised for four weeks in the local press to give ample notice to any Belonger (a BVI national) the chance to purchase. Globally, foreigners to Australia cannot purchase from existing housing stock for investment purposes (as a rental or vacation property). This restriction was implemented to curb rising property rates and comes out of the current government’s policy that “foreign investment in residential real estate should increase Australia’s housing stock.” Everyone’s dream destination, Switzerland, has annual quotas which limit the number of houses or flats that can be sold to foreigners.

Independent Senator Dr. Victor Wheeler in his address on the State of the Economy, on July 20th 2010, stated that “...the coming into effect of this Order occurred without it being debated in the Tobago House of Assembly Chamber. In fact, it is said this Order came The Chinese government, also in a bid to like a thief in the night.” curtail rising prices, placed new limits on The paths taken which led to the declaration ownership in 2010 such that foreigners could of the Trinidad and Tobago 2007 Order and only own one residential property, and must the failure of the New Zealand 2012 Bill are have resided in the country for one year before starkly different. The former encountered no they could purchase. obstacles and traversed hidden corridors to its destination. The latter opened itself up to Mr. Orville London, Chief Secretary of the the possibility of constructive critique as well Tobago House of Assembly has always stated as aggressive New Zealand-esque picong; its that the purpose of the Order was not to turn success or its failure to be memorialised in away foreigners ad nauseam, but to the annals of Hansard and available for this “discourage” the speculation which he has Trinbagonian author to find, read and reflect said was to the disadvantage of nationals and on what could have been, back in 2007. to the detriment of the economy. His words can find mirrors throughout the globe; and so It is quite possible that, even if it had been can the counter-claims of “xenophobia” and brought up for debate in the Assembly’s “closed-mindedness”. Where it appears Chamber, the implementation of a land Tobago stands alone, is in the absence of licensing regime would have been approved. debate. Despite the tendency of detractors of this and similar regimes to denounce them as ridiculous The closed-door approach to that 2007 Order and barely worthy of debate, the desire to must be seen as a strategic misstep. Its oneprotect one’s homeland for oneself is a strong sided, heavy-handed, hurried and disordered one. The islands of Anguilla, Antigua and entry into local legislation was followed by Barbuda, Cuba, Dominica, Grenada, St Kitts a seemingly interminable three year period

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Feature of administrative delays which in turn has allowed those who oppose land licensing regimes in principle, to bolster their arguments with the convincing winch of economic distress. The tourist flow into Tobago remains anaemic and property development has yet to regain pre-2007 levels. The relatively poor performance on both of these fronts should come as no surprise as the two are correlated. The land licensing regime is an easy target to blame, particularly due to its ignominious conception and even worse implementation. However, to begin and end with the 2007 Order as the cause of Tobago’s tourism doldrums is to ignore and therefore negate the adverse effect that a lack of strategic direction specific to the tourism product, has placed on the island.

The THA’s 2014 Budget was titled “Responding to the People’s Mandate” and one of the primary issues was stated to be the revitalisation of the tourism sector. The Budget made some welcome, frank statements as to the current state of Tobago’s tourism product (the first step to deliverance being to acknowledge the problem) and proceeded to set out numerous ways in which Tobago would be elevated into a competitive tourist destination. As comprehensive as the address was, it is likely that every previous Budget has gone into a similar level of detail. At this stage, words are insufficient; as are the publicprivate consultative groups established ever so often, which create working papers no one in the general public sees, and probably, no one in the public sector reads.

A successful plan for a Touristic Tobago requires the active input of its people during the development stage, the constant reinforcement of the plan in the local press and then evidence of its implementation in property, plant and human resource development. This will provide the people of Tobago with something to rally behind that has more dynamism than a budget statement. It’s a tough market out there. The Indian Ocean is really blue. Asian countries are really cheap. Jamaica is really famous. But Tobago has something to offer, even with a land licensing regime. It’s “clean, green, safe and serene”, so goes the current slogan. Well it’s time to let the world know. It’s time for the Tobago House of Assembly to work furiously in the background to promote the serenity of the foreground that is Tobago.

Contact • Vol.14 No.2 2014

Feature

The Caribbean Court of Justice: Catalyst for Regional Integration? By Dr. Indira Rampersad

n 16th April, 2005, the Caribbean Court of Justice (CCJ) was inaugurated at Queen’s Hall, Port of Spain, Trinidad and Tobago. The first President, Justice Michael De La Bastide, hailed from this twin-island Republic which became the seat of the Court and the place from where it operates. The Court has two discrete jurisdictions - original and appellate. In the former, the CCJ interprets and applies the Revised Treaty of Chaguaramas (RTC) which established the Caribbean Single Market and Economy (CSME), and is an international court with compulsory and exclusive jurisdiction in the interpretation of the Treaty. In its appellate jurisdiction, the CCJ hears appeals as the final court in both civil and criminal matters from member states which have replaced the Judicial Committee of the Privy Council (JCPC) with that of the CCJ. Currently, these are [update]Barbados, Belize, and Guyana.

fundamental mistrust of the local judiciary within the CSME. This was evidenced in two recent instances in the Trinidad and Tobago media. In the first, two television hosts publicly voiced their opinions, one claiming that he “knew of cases before the courts where magistrates and Judges, etc, have been bought out ”; the second involved a journalist who described judges of the Supreme Court as “long-winded clowns”.

Domestic politics have also worked against the CSME countries’ accession to the appellate jurisdiction of the CCJ. In April, 2012, Prime Minister of Trinidad and Tobago, Kamla Persad- Bissessar, announced that the time was ripe as “our democracy has grown in strength to take responsibility ourselves for the final adjudication of our disputes consonant with the pristine principles of justice and fair play and say good-bye to the Judicial Committee of the Privy Council as our final Court of Appeal”. She also stated The reluctance of most CARICOM states to her intention to abolish the London-based subscribe to the appellate jurisdiction of the Privy Council as a final court of appeal for CCJ has been the topic of much debate at criminal matters only. However, the Leader several political, judicial and academic fora. of the Congress of the People, wanted it to Although the Court operates as an independent be taken to the people in a national judicial body with a fair and rigorous process referendum as outlined in the PP’s manifesto. for the selection of its seven judges, mistrust, fear and suspicion still pervade the minds of Moreover, abolishing the Privy Council both governments and populations across the would require a three-quarters majority in region with regard to the Court’s potential the House of Representatives and a twofor impartiality and sound judicial decisions. thirds majority in the Senate. Successive Moreover, domestic politics continue to pose governments have not been guaranteed of a serious obstacle to the regional integration Opposition support for such a motion. process and by extension, to influence the In April 2014, as the final speaker at the choice of governments to subscribe to the launch of the Faculty of Law at the St. CCJ’s appellate jurisdiction. The fear and Augustine Campus of the University of the suspicion of the CCJ has its roots in a more West Indies, T&T’s Prime Minister Kamla

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Persad-Bissessar was obliged to respond to what she called “the elephant in the room”. All the previous speakers – Dean of the Faculty of Law, Professor Rose-Marie Belle Antoine; Law Association President, Seenath Jairam; Campus Principal, Prof. Clement Sankat; and President of the CCJ, Sir Charles Michael Dennis Byron - noted in their respective addresses the need for a regional Court of Appeal, particularly because of the high quality of the legal fraternity in the Caribbean. Mrs. Persad-Bissessar repeated that accession to the CCJ is inevitable. She noted that “in Trinidad and Tobago’s Constitution, the UK-based Privy Council as the country’s highest appellate court is “one of the most entrenched provisions”, which will not allow a simple majority to remove. “Accession to the CCJ is inevitable, not only for T&T but all of us in the Caribbean. That is inevitable. The question is always one of when.” However, domestic political woes also plague Jamaica and St. Lucia although the latter is now inclined as is the rest of the OECS and Dominica to begin the process of abolishing the Privy Council and adopting the CCJ’s appellate jurisdiction. At the launch, Sir Dennis Byron noted that “Although we train our lawyers on Caribbean soil, we still journey to foreign soil seeking justice. The CCJ is at the apex of three Caribbean countries (Barbados, Belize and Guyana), although the accord for (its) establishment was signed by all twelve (CARICOM) countries. All signatories committed to the accession ... determinate of the court in the further development of Caribbean jurisprudence and deepening of

Feature the regional integration process. The CCJ stands ready and willing to fulfil its destined role in the economic development and social stability of the region.” The judicial record of the Court suggests that it can act as a catalyst for both social and economic integration and regional development. This is reflected in the myriad of cases adjudicated by the CCJ. As of June 2014, it has delivered eighteen decisions in its original jurisdiction and eighty five in its appellate jurisdiction. Among the most outstanding is the ruling of 4th October, 2014, on the case of Shanique Myrie v Barbados (2013) which addressed the vexing question of the free movement of persons within CARICOM. The case catapulted the CCJ into the limelight with its historic decision that “Ms. Myrie had been wrongfully denied entry

into Barbados, subjected to a humiliating cavity search and unlawfully detained overnight in a cell and expelled from Barbados”.

advancing both social and economic integration through the administration of justice. Not only can it reassure persons seeking to move throughout the region of obtaining legal certainty and impartiality in Other cases involve business interests across the resolution of disputes but can provide a the region such as the decision in Rudisa measure of protection for private companies Beverages & Juices and Caribbean to operate without fear of discrimination. International Distributors Inc v Guyana (2014). The Court noted that the State Thus, the irony is not lost as the host country admitted that the imposition of tax amounted still hesitates to subscribe to the Court’s is inconsistent with the principles of trade appellate jurisdiction. Accession is not just liberalisation and free movement of goods as inevitable but also an imperative. As Sir envisioned by Chapter 5 of the RTC. Maurice Dennis Byron asserts, the CCJ “stands as a Tomlinson v the State of Belize (2014) and testament to our ability to govern ourselves Trinidad Cement Limited and TCL Guyana and develop a body of jurisprudence reflective Incorporated v Guyana (2009), are other of our unique Caribbean morals and values. notable cases reflecting the CCJ’s trust to Accession to the appellate jurisdictional court both social and economic justice. is the next logical step in the region’s The CCJ has a phenomenal role to play in evolution”.

Contact • Vol.14 No.2 2014

Feature

The Metrology Act Trinidad and Tobago Bureau of Standards

etrology is the science of of Units (SI) to all measurements of measurement and its application significance conducted locally. and is inclusive of all theoretical and practical aspects of • Industrial Metrology – has the measurement regardless of the field and responsibility for the dissemination of classification of that measurement. traceability through the National The Metrology Act No. 18 of 2004 was passed Standards and other equivalent by Parliament in 2004 and now awaits measurement standard by the conduct of proclamation. This legislation addresses issues calibration of measuring instruments. fundamental to the conduct of measurements in Trinidad and Tobago. It also outlines the • Legal Metrology - has the responsibility regulatory control of measuring devices for for ensuring that transactional trade, public health, safety and environmental measurement is accurate, fair and legal. protection. The LMI is responsible for the examination and approval of weighing The Act has named the Trinidad and Tobago and measuring devices to be used for Bureau of Standards (TTBS) as the agency trade, and to establish compliance with responsible for the implementation of its the requirements of the Metrology Act provisions and its Regulations, specifically No. 18 of 2004. E.g. measuring devices the Metrology Regulations and Quantity of in the markets, supermarkets and fuel Goods Regulations. dispensers etc.

Having Metrology legislation is fundamental to the day to day activities of a country. The Act gives the Inspectors of Metrology of the Legal Metrology Inspectorate (LMI) the power to conduct mandatory inspections and verification work for which there are penalties for offences as specified in the Act. Metrology in application fosters increased efficiency by providing an objective basis for decision making. Metrology is made up of three functional areas:

In addition, the International System of Units (SI) will become the primary system of measurement in Trinidad and Tobago and all units of measurement will be determined on the basis of the SI system. The Act also mandates the TTBS to establish the National Reference Standards of Trinidad and Tobago for the proper administration of the Act. The Act has outlined the following key activities:

• Certification – Organisations or persons importing, selling, installing, servicing • Scientific Metrology – has the or repairing and calibrating measuring responsibility for the maintenance of devices used for trade must be registered National Measurement Standards (physical and certified by TTBS. artefacts). Research and development of measurement systems and dissemination • Pattern Approval – This is the process of traceability of National Measurement where a measuring device is examined Standards from the International System and tested to ensure that it is adequate to

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carry out the function for which it was designed. • Verification – Test performed on the measuring device to ensure reliability before use and during use. • Quantities of Goods – Monitoring and testing of prepackaged goods by ensuring accurate quantities are contained in packages. Legal metrology is very important from a social, economic and legal perspective, which strives to protect all elements of the society. Every day consumers, traders, government regulators and industry make decisions based on measurement results. These measurements affect economic and personal well being. Legal Metrology plays a key role in health, safety and the environment. How does Legal Metrology help the Economy and Society? Measurement is an important part of all societies and effective trade needs transparency and a balance of information and trust between traders and consumers. • Reducing disputes and transaction costs Correcting bad measurement practice can be costly and time consuming to both businesses and consumers. Taking legal action against traders who break measurement laws can be equally costly. When all parties are confident that the measurement is correct, it is accepted as true. Measurements made outside the legal metrology framework are often subject to challenge and may incur costs to both industry and consumers.

Feature • Supporting trade Having metrological control lessens any unfair commercial advantage or trade practices. This ensures that trade measuring instruments are fit for their intended purpose and meet international standards. For example, fuel dispensers at gas stations are of an approved type and verified to make sure they deliver the correct amount of fuel to consumers. •

These include excise duties on products produced, sold, imported and exported. Legal metrology ensures a fair payment of tax for both government and business. The sale by measure of bulk commodities can be a significant component of both export and national income particularly in products such as oil and natural gas.

protection, support of a civil society, reduction of death and injury from accidents for instance through the use of radar speed devices, improvement in natural environment and improved health from standardization of measurement and testing.

The Metrology Act No.18 of 2004 will be the vehicle through, which the above benefits will be realised. It will bring about trust and • Managing stock control and reducing confidence in measurement, ensuring that fraud consumers get what they pay for. Accurate Traceable measurements provide a standards and equipment will be used to framework for reliable stock control, the inspect scales, fuel dispensers and packaged reduction of fraud, and efficient stock products at markets, supermarkets and management systems. factories. This would result in greater consumer protection for the citizens of • Collecting government revenue Trinidad and Tobago. Trinidad and Tobago Governments collect revenue through • Consumer Protection awaits the imminent proclamation of the excise and taxes based on measurement. The societal benefits are consumer Metrology Act. Reducing technical barriers to trade A formal legal metrology system which is in accordance with internationally accepted requirements promotes confidence and clarity of measurement. This reduces or avoids barriers to trade and provides assistance to participate more fully in the global trading system and support national economic development.

Contact • Vol.14 No.2 2014

Feature What every business person should know VIII Americas Competitiveness Forum Trinidad and Tobago 2014 This year the VIII Americas Competitiveness Forum “The Human Imagination at WorkDriving Competitiveness, Powering Innovation” will be held on 8-10 October, 2014 in Port of Spain, Trinidad and Tobago.

In 2014 US Article IV highlighted five broad themes to both strengthen the recovery and improve the long-term outlook; raising productivity growth; raising productivity growth and labour participation, confronting poverty, keeping public debt on a sustained downward path, managing the exit from zero policy rates, and securing a safer financial system. To achieve these goals and fortify the country’s economic future the policy focus should be to undertake more proactive labour market policies that lower long-term unemployment and raise participation; increase the minimum wage while strengthening the Earned Income Tax Credit; invest in infrastructure; improve the tax structure and raise revenues, fundamentally reform social security and lower the growth of health care costs.

Speakers will include • Deborah Wince- Smith – President, Global Federation of Competitiveness Councils • Dr. Kiran Akal – President and Creative Director of Infinite Worlds • Dr. Fred Medrick – Founder, Teachers Without Borders • Jane Allen – Global Leader- Renewable Energy, Deloitte • Suhas Gopinath – CEO and Founder of Global Inc. For more information and to register please visit www.competitivenessforum.org . (i) Near Term Growth – In the early part of this year, as a harsh winter conspired with 32nd International Fair of Havana, Cuba other factors (including inventory The Chamber of Commerce of the Republic of drawdown, a still struggling housing market, Cuba will be hosting the 32nd International Fair and slower external demand), momentum of Havana (FIHAV), on 2-8 November, 2014 faded in the US economy. Recent data, at EXPOCUBA fairgrounds. In the last edition, however, suggest a meaningful rebound in 1400 companies from 65 nations participated, activity is now underway and growth for of which 24 were from Latin America and the the remainder of this year and 2015 should Caribbean. For further information, please well exceed potential. This renewed contact the Cuban Chamber of Commerce at: dynamics, however, provides only a partial Tel# (537) 8381322 or 8381124 offset to the weak first quarter and so growth Email: pdcia@camara.com.cu is now projected at 2% for 2014, rising to Website: www.camaracuba.cu 3% in 2015.

forecast to average around 2% for the next several years, below historic averages and the outlook assessed at the last Article IV consultation. A combination of factors are at work in lowering longer-run growth including the effects of population aging and more modest prospects for productivity growth. This puts a significant premium on taking immediate steps to raise productivity, encourage innovation, augment human and physical capital, and increase labour force participation. Finance Act 2014 The Finance Act 2014 was passed and assented to on 3rd June, 2014. It is an Act to provide for the variation of certain duties and taxes and to introduce provisions of a fiscal nature and for related matters. Among the provisions made were amendments to the Corporation Tax Act, the Petroleum Tax Act, the Customs Act, the Gambling and Betting Act and the Liquor Licences Act. A full copy of the Finance Act 2014 can be access on www.ttparliament.org.

Business investment in film Trinidad and Tobago’s first big film about steelpan with international distribution, PAN! Our Modern Odyssey premieres with live pan in France on June 24 at the world’s largest documentary TV festival, Sunny Side of the Doc. This is a unique opportunity for the business community to invest in the arts and culture and advance diversification efforts. For full information visit www.pan.tt. Help put IMF Concludes 2014 Staff Visit of the USA ii. Longer-run growth – Potential growth is T&T on the map. Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Finance & Economy

World Equity Markets Q1 2014

his week we at Bourse review the performance of international equity markets and consider the potential opportunities available to investors.

When compared to the same period last year, international equities started off on a much cooler note in Q1 2014. Developed markets registered a volatile performance when compared to an upward trajectory 12 months earlier. The Asian and Latin American regions showed more promise in 2014. Russia-Ukraine political tensions, economy-unfriendly weather conditions and investor uncertainty pulled financial markets in several directions, while major central banks continued to keep interest rates at historical lows to aid economic growth.

Leaders and Laggards Of the 93 recognised primary indices by Bloomberg, the top performing index for the first quarter of 2014 was the United Arab Emirates Stock Market Index, posting an enviable market return of 32.08% (in USD terms). European countries posted mixed performances, indicative of idiosyncratic sovereign considerations within the region. While two European markets were in the best 5 markets list (Bulgaria and Portugal), three European national indices were amongst the worst Q1 2014 performers (See Table 1). Russia and Ukraine recorded the least impressive equity performance for the quarter, attributable to on-going tensions and threat of military action between the two nations.

Table 1:

ASIA DIVERGENCE Asian financial markets, on average, contracted 1.06% over the period. Of the major Asian markets by market capitalization, India was the star performer. The BSE Sensex 30, India’s benchmark equity index, was up 9.2% at the end of Q1 2014 compared to a decline of 2.5% in the comparable period 2013, one of the highest returns in the Asian space. India’s strong performance for the first quarter 2014 has been driven by elections currently underway in the country. Foreign Institutional Investors (FIIs) are expecting a more stable and reformist government post-election, which would increase the pace of economic recovery expected in FY15 and FY16. For the three months ended 31st March 2014, FII equity inflows to India were over US$3.5 billion, compared to US$10 billion for the comparable quarter 2013. Notwithstanding the weaker FII flows, the Indian market was the top performer of the top ten largest equity markets excluding the US (See Exhibit 1). As at 24th April 2014, the Indian Sensex was up 9.58% in USD terms. Indonesia also performed commendably, registering a return of 19.51% in USD terms, earning a place in the top 5 best performing indices. China showed signs of economic weakness during the first quarter but the economy’s growth is still one of the highest in the emerging market sphere. The Shanghai Composite Index ended the quarter down 6.5% in USD terms. LATIN AMERICA MIXED Brazil’s Ibovespa Index which gained by 2.3% in Q1 2014, was fuelled by positive market sentiment regarding economic policies for the future. With the October 2014 elections drawing near, waning popularity for President Dilma Rousseff spurred a market rally in hopes of a more market-friendly Government or that President Rousseff would adjust to more accommodative economic policies. As at 24th April, 2014 the Brazilian equity market was up 6.6% in USD terms. The Brazilian Real has appreciated 3.8% on a quarterly basis from BRL2.36 to BRL2.27 at the end of the first quarter, as investor’s comfort with Brazilian

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Finance & Economy

improvement over Q1 2014. The European Central Bank projected that in 2014 all EU economies are expected to register positive growth, excluding Cypress and Slovenia. The vulnerable PIIGS, (Portugal, Italy, Ireland, Greece and Spain) have also registered moderate rebounds with the expectation of an improved performance leading into 2015. During the quarter, tensions between Ukraine and Russia over the city of Crimea intensified and earned both equity market indices a place on the worst performers for the first quarter 2014. The Europe Index ended the quarter up 1.4% in USD terms and up 2.5% as at 24th April, 2014.

exposure increases. The star performer of the region for the first quarter was Colombia with the main equity index reporting a quarterly upside of almost 4%. The favourable returns were due to improvements in economic indicators, including better-than-expected GDP growth in the fourth quarter of 2013. In contrast, the stock market indices of the Latin American countries Mexico, Chile and Peru were broadly lower during the first quarter. Despite this, analyst projections remain favourable on both the markets and economies, forecasting positive returns by year-end 2014 due to reform activity and optimistic economic outlooks (see Exhibit 2).

the FED announced a further reduction of its monthly bond purchases from $65 billion to $55 billion. The Federal Reserve has emphasized that it intends to keep interest rates low for an extended period after the end of the tapering cycle. Most major research houses foresee interest rates being raised during the second half of 2015. The US economy is continuing to show signs of resilience. The IMF in a recent report projected 2.8% GDP growth in the US in 2014 and 3% growth in 2015, which would be much improved from the 1.9% attained in 2013. There is a generally optimistic sentiment among investors anticipating higher corporate earnings in 2014, US leading to expectations of further upside in The S&P 500 has advanced 1.3% on a quarterly the US markets. The average projection among basis, ending the first quarter of 2014 at 1872.34 analysts is a potential appreciation of 6%, with after ending the year 2013 at 1848.36. The the S&P 500 ending the year at 1970. progression marks the fifth straight quarterly gain for the index. As at 24th April 2014, the EUROPE S&P 500 was up 1.6%. At the last Federal After two years of contraction, Europeâ&#x20AC;&#x2122;s Reserve (FED) meeting on March 19th 2014, economic indicators showed signs of

A Good Time to Invest? For investors with medium to long-term outlooks, the international equity markets present several opportunities. Access to international equity markets can be achieved through direct equity purchases, Exchange Traded Funds (ETFs) or locally listed mutually funds focused on international markets. Countries/regions experiencing market corrections or facing uncertainty through geopolitical events may offer clients an encouraging entry point into these markets. In a similar vein, investment destinations which are gaining momentum could also provide investors with a chance to benefit from upward trajectory through improving economic and market sentiment. Equity investments one of the riskier and ultimately more rewarding investment asset classes, characterized by swings in market prices. Investors should, as always, consult with qualified investment advisors in deciding which equity investments are best suited for their risk appetite and portfolio. Contact â&#x20AC;˘ Vol.14 No.2 2014

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Finance & Economy

Economic and Financial Statistics Trinidad and Tobago Table 1: Summary of Central Government Fiscal Operations (TT$ Millions) 2013/2014p

2012/2013re

2011/2012

Revenue

55,040.8

52,984.8

49,277.9

Energy

29,096.9

26,748.0

26,625.8

Non-energy

25,944.0

26,236.8

22,652.1

Expenditure

61,397.9

59,198.5

51,474.8

Current

53,397.9

50,953.3

44,487.1

Wages and salaries

8,942.3

9,618.8

7,282.3

Goods and services

8,887.7

7,969.3

7,061.6

Interest Payments

2,968.3

3,063.7

2,937.1

32,599.6

30,301.5

27,206.1

Transfers and Subsidies Capital expenditure & net lending

8,000.0

8,245.2

Source: Monetary Policy Report, Nov 2013, Central Bank of Trinidad and Tobago

6,987.7

P: Preliminary Estimates

Re: revised estimates

Table 2: Summary of Economic Indicators INDICATOR

2013p

2012

2011

Real Sector Activity Real GDP (y-o-y % change)

-0.5*

1.2

-2.6

Energy (y-o-y % change)

-4.1*

-1.0

-3.9

1.9*

1.9

-0.5

Headline Inflation (y-o-y % change)

Non Energy (y-o-y % change)

5.6

7.2

5.3

Headline Inflation (% average)

5.2

9.3

5.2

Core Inflation (% average)

2.4

2.5

1.7

Unemployment Rate (% average)

n.a.

5.0

4.9

Source: Economic Bulletin January 2014, Central Bank of Trinidad and Tobago

*Year-on-Year Change for QIII 2013

Regional Indicators Table 3: Selected Macroeconomic Indicators for the Caribbean 2013

2012

2011

Barbados

92.0

85.9

78.0

Guyana

58.2

65.3

65.2

Jamaica

142.7

146.1

141.6

Barbados

-1.9

-1.7

-1.1

Guyana

-5.8

-4.5

-4.6

Jamaica

-15.9

-13.5

-15.6

Barbados

1.1

-1.7

1.0

Guyana

0.4

-0.5

1.4

Jamaica

0.2

-0.9

1.8

DEBT/GDP

CURRENT ACCOUNT BALANCE/GDP

REAL GDP

Source: Central Bank of Trinidad and Tobago, International Monetary Fund, World Economic Outlook Database, Oct 2013

International Indicators Table 1: Advanced Economics - Quarterly GDP Growth Quarterly Per Cent Change 2013 QI

QII

QIV

United States

0.3

0.6

1.0

0.6

United Kingdom

0.5

0.8

0.7

Euro Area

-0.2

0.3

0.1

0.3

Japan

1.2

1.0

0.3

Sourced from Bloomberg by Central Bank of Trinidad and Tobago

Table 2: Rate of Unemployment in Developed Countries Per Cent Dec-13

Nov-13

Oct-13

Sep-13

Aug-13

Jul-13

United States

6.7

7.0

7.3

7.2

7.3

7.4

United Kingdom

7.2

7.1

7.4

7.6

7.7

Euro Area

12.0

12.1

12.2

12.1

Japan

3.7

4.0

4.1

3.8

Sourced Bloomberg

Trinidad and Tobago Chamber of Industry and Commerce â&#x20AC;˘ www.chamber.org.tt

Finance & Economy

Economic Outlook Inflation Core inflation reduced from 2.9 per cent in September to 1.9 per cent in October 2013 and is expected to remain stable for the rest of the year. Food inflation rose slightly to 3.7 per cent in October 2013 from 3.0 per cent in September 2013. In the twelve months to October 2013, headline inflation decelerated to 2.7 per cent from 3.0 per cent in September and 5.1 per cent in August 2013. Monetary Policy Liquidity levels in the banking system remain high and business lending contracted for the tenth consecutive month in September 2013. The Central Bank continues to maintain the “Repo” rate at 2.75 percent. Consumer lending increased by almost 6.0 per cent in September 2013, slightly lower than the 6.3 per cent growth posted in the previous month but up from 2.3 per cent at the end of 2012.

Business lending, fell by 3.7% in September 2013 compared with a decline of 5.8 per cent in August 2013 and growth of 1.0 per cent a year earlier. A sectoral examination of commercial banks’ business loans showed contractions in lending to the finance, manufacturing and petroleum sectors. Energy Sector Performance Large scale maintenance activity in the natural gas and downstream industries in September resulted in a sharp contraction of just over 4.0 per cent (year-on-year) in energy sector activity in the third quarter of 2013. The fall-off in natural gas production impacted the entire energy sector, with the production and exploration, and refining sub-industries contracting by 5.0 per cent and 2.3 per cent, respectively. With the majority of the maintenance work completed production in the energy sector is expected to return to more normal levels in 2014. Source: Central Bank of Trinidad and Tobago

The Chamber’s “CONTACT with the Chamber” radio series The Chamber's "CONTACT with the Chamber" radio series is a five minute programme which airs every Tuesday at 7:25a.m. on the I95.5FM morning show. This programme is voiced by the CEO of the Chamber, Catherine Kumar and is one of the means by which the Chamber communicates with members and the public at large. The series focuses on business-oriented subjects, social responsibility and other issues affecting our country.

views on matters affecting our community. They are: Voice Outsourcing Limited forApril, Pharmaco Limited for May and GA Farrell & Associates Limited for June 2014.

We also open our doors to all members interested in coming on board as short-term sponsors of “CONTACT with the Chamber”, for packages of one, two or three months. Sponsorship is at a cost of TT $900.00 per programme. Your organization will be The Chamber wishes to thank the most recent credited on I95.5FM and recognized through sponsors of its programme which has made it other communications produced by the possible for us to continue expressing our Chamber.

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For more information on sponsorship and branding opportunities please contact: Malika Rouff, Members Communications and PR Officer, Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle Westmoorings P.O Box 499 Port of Spain. Tel: (868) 637-6966 Ext. 289 Fax: (868) 637-7425 Email: mrouff@chamber.org.tt Website: www.chamber.org.tt

Finance & Economy

First Quarter 2014 Review Local Market Summary The three month period ended March 31, 2014 (Q114) saw all three Indices on the local equity market close in negative territory. The Composite Index declined 1.16 per cent or 13.77 points to close Q114 at 1,171.28, the All Trinidad and Tobago Index fell a minimal 0.33 per cent or 6.52 points to 1,987.20 and the Cross Listed Index ended the first quarter at 46.62, down 5.68 per cent or 2.81 points.

Jamaica Money Market Brokers Limited (JMMB) was next with 7.33 per cent of all trades or 2,664,824 shares changing ownership. This was followed by Trinidad Cement Limited (TCL) with 4.99 per cent of the total volume traded or 1,813,565 shares changing hands.

On the TTD Mutual Fund Market, a noteworthy 3,218,436 CLICO Investment Dividend Payments Fund (CIF) units traded in Q114 with a value of $71,299,446.78. CIF closed Q114 at $21.85, down 0.64 per cent or $0.14. Additionally, 10,000 Praetorian Property Mutual Fund (PPMF) units traded with a total value of $34,070.10. PPMF’s price declined 4.23 per cent or $0.15 in Q114 to close at $3.40. Overall there were 12 stocks advancing and 15 declining in the first quarter. The major advance in Q114 was L.J. Williams ‘B’ Limited (LJWB) with an increase of 38.46 per cent or $0.25 to close at $0.90. National Flour Mills Limited (NFM) followed, posting a 32.63 per cent gain or $0.31 to $1.26. Neal & Massy Holdings Limited (NML) rounded off the top three, up 10.50 per cent or $6.30 to end Q114 at $66.31.

Market activity on the First Tier Market more than doubled in Q114 when compared to the same period in 2013. A total of 36,377,788 shares crossed the floor in Q114, up 120.18 per cent from 16,521,966 shares traded in Q113. When compared to the previous quarter (Q413), volumes traded rose 49.76 per cent from 24,290,021 shares. The value of shares traded increased a significant 32.37 per cent from $247,713,824.78 in Q113 to $327,889,600.28 in Q114. Comparing Q114 on Q413, the value of shares traded rose 19.48 per cent from $274,420,590.18. The volume leader for the period under review was National Commercial Bank Jamaica Limited (NCBJ) commanding 58.18 per cent of the market with 21,162,943 shares traded.

Flavorite Foods Limited (FFL) led the declines in Q114, dropping 14.74 per cent or $1.21 to close the period at $7.00. The second major decline was First Citizens Bank Limited (FIRST), down 13.07 per cent or $5.26 to $34.99. Next was Angostura Holdings Limited (AHL) which fell 11.79 per cent or $1.47 to $11.00.

Highlights for the First Quarter of 2014 March 2014 • Jamaica Money Market Brokers Limited (JMMB) informed the Stock Exchange that the company (JMMB), through its Trinidadian subsidiary JMMB Investments (Trinidad and Tobago) Limited, has received the approval of its Regulators for the acquisition of AIC Securities Limited (a securities dealer and stock broker, headquartered in Trinidad). JMMB, therefore, will now seek to move to complete the transaction which, upon successful completion, will see it acquiring 100% of AIC Securities Limited, which is a member of the AIC Financial Group. February 2014 • 103,642,984 BCB Holdings Limited Fund Units (BCB) were de-listed from the Stock Exchange on Tuesday February 4, 2014. The de-listing order was granted pursuant to an application for de-listing made by the Exchange. On January 15 2014, the Board of Commissioners considered the application and approved the de-listing. January 2014 • Sagicor Group Jamaica announced that the company will be acquiring RBC Royal Bank (Jamaica) Limited and RBTT Securities Contact • Vol.14 No.2 2014

Finance & Economy

Jamaica Limited (collectively “RBC Jamaica”) Repo Rate, the rate at which it lends to from Royal Bank of Canada. The acquisition, commercial banks, at 2.75 per cent. subject to all regulatory approvals, is expected to be finalized in the coming months. The Key Rates purchase price of the agreement is estimated at JA$9B. • Neal & Massy advised that on December 30, 2013, the Group purchased an additional 42.708% stake in NMGPL from its former joint venture partner, Air Liquide International, S.A., to attain a 100% controlling interest in NMGPL. Prior to the acquisition Neal & Massy owned a 57.292% stake in NMGPL. NMGPL owns a 100% stake in IGL and this acquisition now renders IGL a fully owned subsidiary of the Neal & Massy Group.

amounted to J$3,498,951,609.78. This represented a decline of 2.56 per cent from Q113’s total of J$3,591,034,101.85 and a decline of 35.98 per cent from Q413’s value of J$5,465,213,069.13. The volume leader was LIME with 61.15 per cent of the market or 529,474,298 shares traded.

In Q114, the major advance was LIME, which rose 168.75 per cent or J$0.27 to close at J$0.43. Hardware & Lumber (HL) followed, Jamaica Market Summary up 63.93 per cent or J$3.90 to J$10.00. The For the first quarter ended March 31, 2014, third major advance was Ciboney Group the major benchmark, the JSE Market Index, Limited (CBNY), increasing 40.00 per cent declined 5,405.99 points or 6.70 per cent to or J$0.02 to close the period at J$0.07. close Q114 at 75,227.56. Market activity on the Jamaica Stock Exchange resulted in Supreme Ventures Limited (SVL) led the 865,794,267 shares traded, an outstanding declines falling 24.46 per cent or J$0.68 to increase of 154.12 per cent when compared end Q114 at J$2.10. Next in line was Pulse to the 340,709,404 shares traded in Q113. Investments (PULS), which fell 12.64 per cent When compared to the previous quarter or J$0.11 to J$0.76. This was followed by (Q413), volumes traded were up 104.21 per Kingston Properties Limited (KPREIT), down cent from 423,968,192 shares. The value of 11.11 per cent or J$0.50 to close the first shares traded for the quarter under review quarter at J$4.00

• Neal & Massy Holdings Limited acquired an additional 63.3% stake in Gablewoods Supermart Limited. Prior to the acquisition, Neal & Massy owned 36.7% of Gablewoods, a Company registered in St. Lucia. Gablewoods holds a 60% interest in Consolidated Foods Ltd. whose principal activity is the operation of supermarket chains in both St. Lucia and Energy Prices St. Vincent. On December 31, 2013, Neal & Massy entered into a sale agreement with the shareholders of Gablewoods to acquire 100% controlling interest, through the acquisition of 63.3% of Gablewoods’ share capital. The purpose of the acquisition was to increase Neal & Massy’s ownership in Gablewoods to a controlling interest. This initiative permits Neal & Massy to expand its presence in food retail by acquiring the leading supermarket Global Market Indices chain in St. Lucia. Fixed Income Market Summary According to the March 2014 Monetary Policy Announcement released by the Central Bank of Trinidad & Tobago, headline inflation measured 3.90 per cent as at February 2014, an increase from 2.90 per cent in January and a decline from 5.90 per cent a year earlier. Core inflation, which excludes the impact of food prices, accelerated to 2.70 per cent in February 2014 from 2.00 per cent in December 2013. In March 2014, the yield on the 1-year Open Market Operations (OMOs) remained unchanged from February 2014 at 0.41 per cent. The Central Bank has maintained the

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Energy Update

Fiscal Agenda in Energy By David Renwick, Energy Journalist HBM (Gold)

n its four years in office, the People's Partnership government has introduced more legislation relating to the energy sector – particularly the upstream part of it – than any previous administration in Trinidad and Tobago's history.

foreigners rather than local people). But the wording is imprecise to start with:“services and facilities available in Trinidad and Tobago” could also cover overseas service providers who have set up an office in the country.

All of that has been benign, offering tax incentives to companies to go out and undertake the activities the Ministry of Energy and Energy Affairs (MEEA) deems necessary to halt the worrying decline in crude oil production in particular (details on that later in this story).

Carolyn Seepersad-Bachan in August, 2010 and said to be still applicable, was more explicit in its description of local content (which attracted 10 points in the overall consideration of whether a project should be approved or not). It judged local content to include local ownership, equity and debt financing from local institutions, locally provided engineering design, feasibility studies, project management and technical skills, particularly in information technology. It will be interesting to see what definition MEEA comes up with after the “public consultation”.

Even if genuinely local firms – those owned by locals – did get some of the business available during exploration and production activities, there is no specific percentage of the work they should receive and no monetary value put on it. The Minister of Energy and Energy Affairs, Kevin Christian Ramnarine, wants to tighten up on this situation and make One legislative move being considered by the local content mandatory, not discretionary. A degree of controversy will probably government, however, will be restrictive, surround the forthcoming examination of how rather than expansionary, and may not be as At the Energy Chamber’s annual conference local content can be made compulsory and to welcome to companies as the others have in Port of Spain in February he stated, “I want what extent but there was widespread undoubtedly been.This is not to say that the to stress the importance of local content in acceptance of fiscal incentives for upstream initiative under review is necessarily unwise: our energy sector. There is a local content energy activity in the PP budgets for the last on the contrary, it could be very positive as policy that is dated 2006. This will be updated four years. These incentives were not given far as national development is concerned but in 2014 following public consultations and “vi-ki-vi” but were meant to encourage the it will limit exploration and production entities serious consideration is being given to companies to take action in specific areas to in their choice of service providers. The matter legislating local content in the energy sector, achieve results the Ministry wanted. revolves around the subject of local content, as had been done in Norway. Local companies which all Ministers of Energy over the years in the energy sector must be afforded a fair For example, in order to encourage an increase have declared it their intention to encourage. chance to benefit from the resurgence of in crude oil production from mature (25 years activity in our upstream sector.” We shall see old) and small (production rate of up to 1,500 All competitive bidding orders for production how far all this goes in 2014, bearing in mind b/d) oilfields, a reduction of 20% on sharing contracts (PSCs) and exploration and the Minister only has one more year in office supplemental petroleum tax (SPT) was offered production (E&P) licence rounds have before a general election must be called. in 2010. An investment tax credit of 20% on contained a requirement that bidders indicate SPT for qualifying expenditure for the their plans for “the maximum utilisation of His prime difficulty may well be in defining development of both types of fields, as well services and facilities available in Trinidad what really is a “local company.” The local as the application of enhanced oil recovery and Tobago in both the exploration and content policy to which he refers took a stab (EOR) methods, was also introduced. SPT production phases.” at it, by saying it should be defined “in terms itself was also fixed in that budget at 18% for of the level of local ownership, control, and land and (forthcoming, it is hoped) deep water That is meant to encourage them to hire local decision-making” and the degree of “local production. service providers in preference to foreign financing” involved in the company's activities. providers, so the former can obtain the work Deep water exploration and production is that will help stimulate the domestic economy The “Evaluation Framework For Allocation very much an activity MEEA wants to see (foreign providers are assumed to take their of Tranches of Gas for Project Development”, happen and, in addition to the favourable SPT money out of the country and to employ publicised by Ramnarine's predecessor, rate, it also re-defined deep water (for tax Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Energy Update purposes) to 400 metres (previously, it started at 1,000 metres) to benefit more producers. Petroleum profits tax (PPT), paid annually after discounting for quarterly SPT payments, was also lowered to 35% for deep water production. In 2011, as a further incentive for upstream activity, the government removed VAT from all the equipment coming into the country for upstream work. This was a nuisance tax on companies, because they could have reclaimed it later, but it now frees them to spend money on actual drilling and other upstream activity. In a move to encourage companies to develop any small oil pool discoveries they may have made but did not consider commercial, a special SPT rate of 25% was introduced in 2012. The opportunity was also taken to harmonise SPT on offshore oil production in shallow and average water depths at 33%, the lower of the two different rates that previously applied, again in an effort to increase output from such fields, where most of the existing offshore crude production emanates.

was made more attractive for the next four years by allowing them to be fully claimed in the year incurred. 100% of the cost of workovers and qualifying sidetracks is now also claimable in the first year.

A response to tax reliefs does take some time to show results but the trend is clearly not in the right direction, moreso since the majority of the incentives were designed to effect shortto-medium term increases in output.

For developing a new oil or gas field, 50% is now allowable in the first year, 30% in the second and 20% in the third, in place of the existing system.

The one area where there has been a positive reaction to incentives is on the deep water exploration side, though any production benefits from that will arise only in the long term.

To encourage gas producers to keep production up, the installation of compression facilities Seven deep water blocks are at the pre-drilling was also encouraged in 2013 via an increase stage, with 3D seismic exploration now taking in wear and tear allowance from 25% to 33.3%. place. The key question in all this, of course, is – This is a good number to be going on with, will the incentives achieve their various since there has been no such exploration since objectives? the early 2000's.

Minister Ramnarine seems to think so. In an answer to a question posed to him in the Senate in January this year, he claimed that “the SPT allowances for mature fields, for EOR and the harmonisation of SPT on offshore production, provided over the period 2010-2014, have led to increased investments in the energy sector, increased activity and increased revenues from In the same budget, the Ministry took aim at taxes.” an area of potential oil production it has long been eager to see opened-up. He based this observation on the number of drilling rigs now active offshore and the This is the so-called “deep horizon” area on drilling activity being undertaken, with land and offshore, which has remained largely 381,164 feet of drilling in 2012 as against unexplored over the years. To persuade 185,238 feet in 2010. companies to be more adventurous in this regard, a 140% write-off on exploration costs The fact that both helicopter companies which (dry holes not included) on approved deep service the offshore rigs, National Helicopter horizon wells has been offered for a period Services Ltd., (NHSL) and Bristow, are adding of five years. The specific time frame is to their fleets because they see more business, presumably meant to encourage companies was also cited to support his case. to take quick action. The definition of deep But the actual production figures, certainly in horizon is 8,000 feet on land and 12,000 feet relation to crude oil, do not seem to justify offshore. The land depth prescribed is not Ramnarine's ebullience. very onerous and even smaller companies should have little difficulty trying their hand If anything, they do the opposite. Crude oil at that. production actually fell by 1,282 b/d on average in 2013 – 67,780 b/d, compared with The most recent budget, 2013, made the 69,062 b/d in 2012. investment tax credit of 20% on SPT for mature and small oilfields and EOR Of course, production has to rise by a certain application claimable over two years, should amount just for the level to remain stable, as the incentive not all be used up in one year. existing wells deplete and by more than that The write-off of exploration costs generally to achieve an increase.

But the significant factor is the extraordinary interest shown in this exercise by one company – the Anglo/Australian multi-national, BHPBilliton. It bid for, and won, four deep water blocks in the 2012 auction – TTDAA 5, TTDAA 6, TTDAA 28, TTDAA 29 – and then added 23b to the list after improving its bid made in the 2010 round. The BP Exploration Operating Co. won blocks 23a and TTDAA 14 and, according to reports elsewhere, has allowed BHPBilliton to farm into them and assume operatorship. Why BP chose to do such a thing has not been publicly explained but it illustrates beyond doubt the Anglo/Australian group confidence in the Trinidad and Tobago deep water. Even after all that, BHPBilliton still continued to bid in the most recent deep water round, which closed on March 28, 2014, showing interest in blocks TTDAA 3 and TTDAA 7. It was the only bidder on TTDAA 7 and only has competition from Repsol on TTDAA 3. If the observation by BHPBilliton executives that Trinidad and Tobago has the potential to become “a third core area for the company after the US and Australia” proves true, then fiscal incentives for the deep water will really have achieved the intended result.

Contact • Vol.14 No.2 2014

Energy Update

Energy Statistics In this SECOND quarter issue of CONTACT for 2014, we continue our evaluation of the current statistical data arising from Trinidad and Tobago’s prosperous energy sector. We place special emphasis on crude oil, and natural gas production under both time-series and cross-sectional circumstances. Table E.1 – Crude Oil Production by Companies for January to February 2013 and January to February 2014 (Barrels of oil per day) Company BG REPSOL BPTT TRINMAR TEPGL

Table E.3 – Natural Gas Utilization by Sector for January to February 2013 and January to February 2014 (mmscf/d) January

February

January

February

2013

2014

Power Generation

290

297

298

306

11,111

Ammonia Manufacture

599

623

597

608

6,540

10,726

Methanol Manufacture

576

572

533

549

21,509

22,178

23,048

Refinery

1,667

1,305

1,271

Iron & Steel Manufacture

115

113

126

January

February

January

February

2013

2014

978

952

778

795

13,295

12,519

9,582

8,561

9,638

21,229 2,245

Sector

EOG

1,671

1,956

1,565

1,440

Cement Manufacture

BHP

11,478

10,958

9,478

9,434

Ammonia Derivatives

477

530

357

374

Small Consumers

13,688

13,417

13,058

13,184

Gas Processing

TEPL

472

543

442

556

Liquified Natural Gas (LNG)

2,417

2,389

2,015

2,407

BGCB

931

1,399

1,105

1,114

TOTAL

4,128

4,111

3,695

4,113

NHETT

PRIMERA PETROTRIN

NMHERL

113

126

103

133

PETROTRIN (FO)

959

962

787

788

PETROTRIN (LO)

5,800

5,804

6,208

6,171

492

509

1,129

1,157

PETROTRIN (IPSC) BOLT

507

290

292

295

LAND SUBTOTAL

22,552

22,817

22,836

22,920

MARINE SUBTOTAL

60,437

60,032

52,160

58,765

TOTAL

82,989

82,850

74,996

81,685

MORA

Source: Ministry of Energy and Energy Industries, Vol. 51 No.2 & Vol. 50 no. 1-11

Source: Ministry of Energy and Energy Industries, Vol. 51 No. 2 & Vol. 50 Nos 1-11 *Figures in red are preliminary

Table E.4 - Ammonia Production for January to February 2013 and January to February 2014 (Tonnes) Company

January

February

January

2013

2014

YARA

18,518

18,713

22,503

21,789

TRINGEN 1

35,546

35,418

37,811

34,099

TRINGEN 2

45,996

40,397

44,609

43,345

179,245

170,674

173,241

174,551

PCS NITROGEN POINT LISAS NITROGEN

57,951

48,525

59,263

53,185

CNC

53,332

50,344

55,189

48,815

NITROGEN 2000

38,746

48,126

48,485

25,140

3,709

3,449

12,323

1,509

433,043

415,646

453,424

402,433

AUM-NH3

Table E.2 – Natural Gas Production by Company for January to February 2013 and January to February 2014 (mmscf/d) Company BPTT TRINMAR PETROTRIN EOG BG BHP REPSOL TOTAL

January

February

January

2013

2014

2,403

2,446

1,906

2,344

TOTAL

Source: Ministry of Energy and Energy Industries, Vol. 51 No.2 & Vol. 50 No. 1-11

February

495

504

571

563

1,061

1,007

1,049

1,026

433

416

426

419

4,453

4,429

4,006

4,397

Source: Ministry of Energy and Energy Industries, Vol. 50 No2. & Vol 50 No. 1-11 *Figures in red are preliminary

February

Table E.5 - Ammonia Export for January to February 2013 and January to February 2014 (Tonnes) Company

January

February

January

February

2013

2014

YARA

24,720

24,685

24,678

TRINGEN 1

58,324

45,126

49,224

TRINGEN 2

26,986

52,429

43,216

58,092

181,469

116,588

134,210

135,343

NITROGEN

45,063

25,000

69,156

34,500

CNC

44,638

33,647

68,707

57,946

NITROGEN 2000

42,483

51,060

55,564

44,206

423,683

303,408

440,657

379,311

PCS NITROGEN POINT LISAS

AUM-NH3 TOTAL

Source: Ministry of Energy and Energy Industries, Vol. 51 No.2 & Vol. 50 No. 1-11

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Energy Update

Energy Statistics Table E.6 - Methanol Production for January to February 2013 and January to February 2014 (Tonnes) Company

January

February

January

2013

2014

TTMC I

30,458

664

34,862

29,548

CMC

41,758

40,502

43,315

41,329

TTMC II

40,549

40,932

45,526

40,670

MIV

48,059

46,440

45,885

17,025

TITAN

69,565

63,579

41,193

38,336

ATLAS

129,579

138,473

125,541

130,143

M5000

161,717

130,611

119,373

144,219

TOTAL

521,685

461,201

455,696

441,270

Chart E.2 Natural Gas Production by Company (mmscf/d)

February

Source: Ministry of Energy and Energy Industries, Vol. 49 No. 1-12 & Vol. 50 No. 1-11

Table E.6 - Methanol Exports for January to February 2013 and January to February 2014 (Tonnes) Company

Chart E.3 Natural Gas Utilisation by Sector (mmscf/d)

January

February

January

February

2013

2014

30,754

9,224

200,744

206,916

199,942

184,004

TTMC II

32,971

44,626

MIV

62,551

35,387

67,100

31,496 129,713

TTMC I CMC

TITAN ATLAS

130,596

78,863

125,711

M5000

124,981

37,027

43,415

49,582

TOTAL

549,626

367,416

469,138

439,422

Source: Ministry of Energy and Energy Industries, Vol. 51 No.2 & Vol. 50 No. 1-11

Chart E.1 - Crude Oil Production by Companies (barrels per day)

Chart E.4 Ammonia Production (Tonnes)

Contact â&#x20AC;˘ Vol.14 No.2 2014

Energy Update

Energy Statistics Chart E.5 Ammonia Export (Tonnes)

Chart E.6 Methanol Production (Tonnes)

Chart E.7 Methanol Exports (Tonnes)

Corporate Social Responsibility The Corporate Social Responsibility (CSR) Committee was established in November 2007 as one of the Chamber’s special focus committees providing support and assistance in areas relevant to its members. The Committee’s mission is to build a platform for learning, advocacy and technical assistance that enables every business to be an active partner in creating a socially and environmentally sustainable Trinidad and Tobago.

The Committee’s mandate is to serve the learning needs of its members, as well as to provide advocacy and technical assistance using practical, realistic and adapted approaches that enable these organisations and individuals to maximise the efficiency and effectiveness with which they undertake CSR activities. This approach encompasses working not only with members, but engaging other Chambers, civil society, public sector and international organizations.

Corporate Social Responsibility is a commitment by companies to contribute to sustainable development by working with employees, their families, other organisations, communities, government, and the society at large, to improve the quality of life and the environment in ways that are good for both business and social development.

Objectives: • Learning The CSR Committee provides members and other stakeholders with access to relevant CSR related course materials to assist in developing an understanding and appreciation of CSR, both conceptually and in practice. This enables members to better incorporate

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

CSR into their organisations and foster more responsible business practices. • Advocacy The CSR Committee provides a forum for advocacy with key stakeholders to facilitate an enabling environment that encourages private sector investment in CSR related activities. • Technical Assistance The CSR Committee is working with its members through outreach forums, workshops and individual meetings to assist in the implementation of CSR activities and initiatives that are strategic in nature, in line with their core business practices and focused towards sustainable development.

EMA

Legislation to Protect Sea Turtles

he Environmental Management Authority (EMA) is pleased to announce the designation of five species of sea turtles as Environmentally Sensitive Species (ESS) the: Leatherback, Green, Olive Ridley, Loggerhead, and Hawksbill. The EMA through its ESS Rules has been declaring species of Trinidad and Tobago protected according to criteria set out in said Rules. This designation makes a species eligible for special protection and management under the laws of Trinidad and Tobago. “Through this designation the EMA has considerably contributed to reinforcing existing legislation towards safeguarding these magnificent creatures”, said Dr. Allan Bachan, Chairman, EMA. He continued, “these species have for too long been victims of unfortunate demise, from gillnet fishing, poaching, taking of eggs, predation of eggs by dogs and by-catch. What is needed now is strict enforcement and patrols within the nesting areas across Trinidad and Tobago. With the onset of the additional one hundred Environmental Police Officers, the EMA will be better positioned to assist in reducing the numbers of harmful incidents against these Sea Turtles and their habitats. Why was this step taken? According to Ms. Gayatri Badri-Maharaj, Ag. Managing Director, EMA, for years the subject of sea turtle protection has been blurred by conflicting legislation. The EMA’s process to designate these species started in 2005 with the Administrative Record and Legal Notices submitted for comments. At this time sea turtles were considered fish and there was an open season for hunting turtles. The EMA was pleased, when the Cabinet approved an amendment of the Fisheries Act Chapter 67:51 to protect turtles and turtle eggs in 2011, titling them a prohibited species. The amendment to the fisheries Act prohibits the taking, removing or selling of any turtle eggs and also prohibits the killing, harpooning or selling of any turtle. It was not until this amendment to the Act that the EMA was able to proceed with the designation under the ESS Rules. In addition to this, all five species are considered endangered under the International Union for Conservation of Nature (IUCN) list and all are considered threatened species.

Exactly what does this Designation mean for these Sea Turtles? According to the legislation the following activities are prohibited unless otherwise approved by the relevant Authority in accordance with existing laws:

guided by the Environmental Management Act Chapter 35:05 (EM Act). The protection and preservation of threatened plants, ecosystems and animals fall under this tenet, whereby the EMA develops and enforces both the Environmentally Sensitive Areas Rules 2001 (ESA Rules) and the a) the taking, removing, harming, injuring, hunting, Environmentally Sensitive Species Rules 2001 (ESS selling or killing of the ESS and possession of, Rules) which govern the treatment and protection or trade in any specimen of the living animal of these areas and species. and its parts, eggs and products; b) deliberate or reckless capture or endangerment According to Section 70 (2) of the EM Act “Any of the ESS through the setting of nets and other person who knowingly or recklessly undertakes or fishing activities; conspires to allow any activity with respect to an c) deliberate or reckless capture of the ESS in “environmentally sensitive species” which may have commercial shrimp trawler nets; an adverse impact on such species, commits an d) the use of any device or substance that may offence and is liable, on conviction on indictment, harm, stun or impact negatively on the ESS. to a fine of one hundred thousand dollars and The negative impacts would be, but not limited imprisonment for two years.” to, those that would impair the sight, hearing, ability to swim or move of the ESS or its ability An EMA designated Environmentally Sensitive to detect prey and predators or affect its habitat Species (ESS) is any species: or nesting ground; e) the sale, consumption, possession, offering or • that is indigenous to Trinidad and Tobago or, storage of the ESS; although not indigenous to Trinidad and Tobago, f) dumping, littering or polluting, including the is present in Trinidad and Tobago for a part of discharging or depositing of any substances that its life or reproductive cycle are injurious to the ESS which does not comply • that throughout all or a part of its range is, or is with the provisions made under the Act; likely to become, in danger of extinction and g) the disturbance of the ESS at any time; whose survival is unlikely if the factors h) the removal and exportation of the ESS or any jeopardising it continue to operate part thereof, except for scientific research • that is required to be protected for the purpose approved by the designated management of meeting the Government’s international authority; obligations i) disturbing, destroying or any other action or habitat alteration (including beach mining, land Other Species already declared Environmentally reclamation, and alteration due to fisheries, Sensitive by the EMA are: agricultural and industrial development) that will alter or upset the integrity of the beach, habitat • Trinidad Piping Guan or Pawi (Pipile pipile); or surrounding ecosystems or cause undue • White-tailed Sabrewing humming bird disturbance to the plant or animal community (Campylopterus ensipennis) ; upon which the ESS depends at any phase of • West Indian Manatee (Trichechus manatus its life cycle; and manatus) local name - Manatee, lamantin, sea j) any other activity which, based on technical or cow; scientific evidence, is determined to cause or is • Ocelot (Leopardus pardalis) local name - tiger likely to cause harm to the ESS. cat or leopard cat; and • Golden Tree Frog (Phyllodytes auratus) local Background name- El Tucuche golden frog Since its inception in 1995, one of the core functions of the EMA has been to create and enforce laws For further information on the EMA’s legislation visit and regulations for environmental management as our website at www.ema.co.tt.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Ministry of Planning

Driving regional competitiveness and business growth through the VIII Americas Competitiveness Forum “Imagination is more important than knowledge." — Albert Einstein

n its latest economic outlook for Latin America and the Caribbean (LAC), the International Monetary Fund projected continued low growth of 2.5% for 2014. Low levels of public and private investment in Research and Development, economic overdependence on natural resources and a widening productivity gap were identified as contributing to regional economic stagnation. Dr. Bhoendradatt Tewarie, Minister of Planning and Sustainable Development, posits that the foundation of competitive economies is the development of high value products and services that compete on the basis of quality, value and innovation. In fact, within the dynamic global environment, where nations vie to become knowledge economies, the ability of individuals, firms and institutions to innovate, has become the new driver of sustainable competitive advantage, economic transformation and long term growth. Regional progress can only be achieved through deeper integration of efforts and enhanced cooperation especially between the public and private sector. The Americas Competitiveness Forum (ACF) brings together government officials, business leaders and academics in the Western Hemisphere to share best practices for achieving economic competitiveness and promoting innovation in the Caribbean and the wider Americas. During the period October 8th – 10th 2014, Trinidad and Tobago through the Ministry of Planning and Sustainable Development, will host the eighth edition of the Americas Competitiveness Forum, at the Hyatt Regency Hotel, Port of Spain. Over 1,000 high level local, regional and international representatives are expected to attend. The theme of the VIII ACF is ‘The Human Imagination at Work, Driving Competitiveness, Powering Innovation’ which underscores the critical importance of improving innovation levels for regional sustainability and prosperity. Through this theme, the VIII ACF will focus on the pressing challenges

affecting regional competitiveness and the opportunities for innovation in areas such as, sustainable energy, financing for small and medium sized enterprises and education reform. The discussions will also elaborate on the importance of establishing more effective national innovation policies and eco systems, the complementary governance mechanisms and the expansive role of the private sector. The human imagination can only flourish in an environment in which the support mechanisms required to guide and leverage imaginative outputs are implemented. Private sector intervention is mandatory in developing these support mechanisms to facilitate greater access to financing, intellectual property protection, business incubation, robust research and development institutions and the commercialising of entrepreneurial products and services as key elements constituting effective national innovation eco-systems.

exhibition space to promote innovative products, services and processes in the fields of Information and Communications Technology, Health and Safety, Environment and Defence.

The VIII ACF will feature 40 high level speakers including; Suhas Gopinath, who is recognised as the world’s youngest Chief Executive Officer and also the founder and Chairman of Global Inc., an Indian IT multinational company offering quality IT solutions for various industries in the form of disruptive and innovative solutions. Another featured speaker, Frans Johansson, a dynamic and inspirational innovation thought leader, is the founder and CEO of the Medici Group and author of critically acclaimed The Medici Effect and The Click Moment. In addition, Dr. Raul Cuero, distinguished professor and research leader is the Research Director of the International Park of Creativity with locations in the US, Colombia and Israel. This initiative aims to This year, the VIII ACF will strengthen its engagement transform imaginative youths into innovators with a with the private sector through the introduction of focus on science, technology and new paradigms specially focused activities highlighting business for economic sustainability and social progress. development strategies and encouraging innovation for business growth. The Forum will provide a The VIII ACF is an inclusive event with benefits for platform for greater collaboration and networking all stakeholders. The ideas shared and knowledge amongst participants through initiatives such as exchanged will not only grow intellectual capacity ConnectAmericas, the first social network for but also act as an important catalyst for improving businesses in the Americas. ConnectAmericas will policy making, fine tuning business strategy and allow participants to initiate strategic business facilitating complementarity between the two. The contacts that can result in access to international intellectual richness and thought provoking markets, new business partnerships and increased experiences that the ACF promises has the potential financing options. Additionally, the InvestAmericas to forge a new approach to achieving regional Network, will be launched at the VIII ACF, as a space competitiveness. Regional participation is considered for reinforced interaction among the private sector vital to the success of the VIII ACF. Trinidad and and investors, third party service providers, enterprise Tobago extends an open invitation to government support organisations and other enterprises. Private leaders, private sector executives, multi-lateral sector participants will also have the opportunity for agencies, non-governmental agencies, academic one on one meetings with renowned experts and institutions and the general public to be part of an innovators from across various fields, imparting their exciting programme of activities guaranteed to knowledge, advice and expertise on overcoming stimulate and provoke the human imagination. organisational challenges. On the margins of the VIII ACF, an Innovation Village, will serve as an

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

PWC

New systems for the Corporate Undertakers By Edmund Phillips, Manager - Advisory Services, PWC

any of you may have heard stories or unfortunately, even experienced a situation where a stern faced receiver or liquidator (and numerous of his assistants) has walked into a business and immediately it’s clear to all that The End is near! The “Corporate Undertaker” had arrived to remove the carcass of the demised organization. It has long been the history in Trinidad and Tobago, when debts could not be recovered, that receivers are appointed to effectively shut down or close up the business. Even from my own experience in insolvency I remember a gentleman who having been terminated at one company, immediately packed up his bags and left when he saw the receiver’s team walking in on the first day at another company. In the past incarnation of the law, the element of surprise was in fact a key feature for enforcing a secured debtor’s security in order to recover debts due. In truth, there was no practical scope in law to restructure a company that was insolvent and rehabilitate or resuscitate the company before its demise.

In 2007 the Bankruptcy and Insolvency Act 2007 (BIA) was passed in the house of Representative and the Senate. The BIA will supersede the winding up sections of the Companies Act Chap 81:01, and replace the Bankruptcy Act Chap 9:70. However, the BIA was only proclaimed on 29 May 2014 as the enabling structures required to support the Act, such as the setting up the Office of Supervisor of Insolvency, the regulations and the retooling of the Judiciary, were only recently put in place. The BIA will cover all aspects of insolvency and be applicable to both companies and individuals. A key element of the BIA is that it gives debtors the ability to present a proposal for exiting bankruptcy in a manner other than via a coffin. In essence, the reign of the undertaker may now be over. Enter, the Corporate Surgeons. Now, for the first time, debtors (i.e. companies, partnerships, individuals, etc.) can submit proposals for the formal restructuring of their financial commitments under the guidance of the Court. This is likely to lead to benefits for both debtors and creditors. Another key change is the establishment of a regulatory office called the Supervisor of Insolvency

which would be responsible for the registration of legislative obligation. This added to the element of trustees and providing oversight for the execution surprise and was a method used by creditors to of insolvency mandates. preserve the asset value. Under the new Act, secured creditors must now give 10 days’ notice of their It is hoped that with the above changes, there will intention to enforce their security in order to recover be improvement in the time it takes to resolve their debts. And in the case of receivership, Banks insolvency matters and an increased survival rate will now be required to give the debtor notice of their of those parties that were unable to make good on intention to enforce their security and appoint a their financial commitments. However, given that receiver. There is an exception however, where the bankruptcy process now sits more firmly within i. A proposal was already filed but not with respect the Judicial System, consideration should perhaps to that creditor’s security; or be given by the Judiciary to the appointment of ii. The proposal was refused by that secured special judges with a finance background or indeed creditor to the establishment of commercial courts to adjudicate these matters to ensure that the greatest In the instance of these exceptions, the creditor is benefits are obtained from this new system. free to deal with the security as they would normally do under the Companies Act. The actions of With respect to the practitioners, there is now a unsecured creditors would now be stayed (i.e. requirement to have a license in order to practice suspended) and they have an opportunity to vote as a trustee for insolvency matters. Further, under for or against the proposal. the BIA a company is also permitted to be registered as a trustee provided that a majority of its directors As noted earlier, the BIA now gives debtors the and its officers hold licenses as trustees. opportunity to present a proposal on how they would This requirement has been extended to persons emerge from Bankruptcy. This proposal will have acting as receivers as well. In order to be granted to be developed together with a licensed trustee, a license, a trustee must meet including but not accepted by the creditors and approved by the Court. limited to, the following: i. Be of good character and reputation Once approved it would be binding on all creditors ii. Be a resident of Trinidad and Tobago or a holder and implemented by the trustee. If the plan is not of a work permit or exempted from holding a approved then there would be an automatic work permit assignment of the assets for the general benefit of iii. Be affiliated with a company incorporated under the creditors. However once a notice of intention the Companies Act; or a proposal is filed no agreements can be amended iv. Be a member of one of the following institutions: or even terminated because of the insolvency. a. the Institute of Chartered Accountants of Trinidad and Tobago (ICATT) Given the new tenants of the Act if your or your b. the Institute of Chartered Accountants of client’s business is insolvent or showing signs of the Caribbean (ICAC) insolvency, such as c. the Institute of Internal Auditors of Trinidad i. Persistent Cash flow challenges and Tobago (IIATT) ii. Loss of a major client/contract d. the Association of Chartered Certified iii. Persistent and long overdue loans Accountants (ACCA) iv. Breach in loan covenants e. Law Association of Trinidad and Tobago v. Loss of key personnel v. Be in good standing with, and not subject to, vi. Continuous decline in revenues and profits any disciplinary action by any of the above professional organizations You should reach out to a qualified professional advisor for direction and guidance on your options Although there has been a practice of giving a period and how you should proceed as there are now of notice of up to 7 days on demand for enforcement avenues for the business to be restructured or by a secure creditor, the reality is that there was no revived.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Evolving TecKnologies and Enterprises Development Company Limited (e TecK)

Evolving TecKnologies and Enterprises Development Company Limited (e TecK) is special purpose state enterprise under the purview of the Ministry of Trade, Investment and Communications (“MTIC”). e TecK has been in operation for the last eleven (11) years and manages nineteen (21) Light Industrial Parks across Trinidad and Tobago as well as Hotel assets on behalf of the Government of the Republic of Trinidad and Tobago (GORTT). Their new mandate centres on asset management and the development of new Economic Zones (EZs). They have embarked on the construction of seven (7) new economic zones and initiated management reforms at their existing parks that herald a new era for the organization. The organisation states its refocused, re-energised and ready. Mr. Kelvin Mahabir explains how.

1. Why are new Economic Zones being constructed in Trinidad? A 2011 survey on the market requirements for light industrial activities shows a demand for built accommodation. To meet this demand, the GORTT allocated additional land spaces to e TecK for the creation of seven new Economic Zones in Trinidad. These new EZs provide approximately 625 acres of additional leasable space to prospective local and foreign investors. 2. Where will the EZs be built? Construction of the EZs will occur in phases. In Phase 1, six new EZs will be located in Connector Road, Dow Village, Factory Road, Frederick Settlement, Preysal and Reform Village. In Phase 2, a Business Park will be constructed in Endeavour. These locations fall within those regions earmarked for development by the GORTT as part of the “4Cs-Central Trinidad Growth Pole” initiative, outlined in the Medium-Term Policy Framework 2011-2014. 3. What type of business activity will occur these EZs focus on? EZ Location

Business/ Industry

Connector Road

Manufacturing, Distribution, Commercial Services

Dow Village

Light Manufacturing; Petro Chemical Downstream Processing; Services ; incubator facilities

Factory Road

Manufacturing; Distribution; Services

Frederick Settlement Extension

Manufacturing; Distribution; Services

Endeavour

Business/Commercial, BPO, Retail and Services

Preysal

Logistics; Warehousing; Services

Reform

Agro-processing; Services

4. How has e TecK zoned its parks to make use of the country’s developed transportation and logistics infrastructure? Tamana InTech Park (TIP) is located adjacent to one of the main arterial highways, the Churchill Roosevelt Highway and is 10 minutes from the Piarco International Airport. The Park is 30 km from the Port of Port-of-Spain, one of two fully developed industrial ports to serve as transhipment gateways to the Americas. Additionally, three (3) of the seven (7) new Economic Zones we’re developing this year was deliberately sited close to our Port at Point Lisas, roughly 10-20 km away.

6. How can locating at TIP reduce an investor’s time to construction and operations? We have 21 market-ready land-lots for companies involved in ICT, Business Process Outsourcing, High-value manufacturing, Clean Technologies and Business Services. These lots have gained necessary approvals from the local authorities and range from 2,800 to 83,700 square metres per lot. The “green”, sustainably designed, Flagship Office Complex is ready for lease and our rates are very competitive. We work closely with Trinidad and Tobago’s Investment Promotion Agency, invesTT. Their Investor Services Division helps an investor throughout the decision making process – from providing information to assisting with setting up operations. We’ve eliminated a lot of the uncertainties and bureaucracy which is good news for any company seriously considering establishing operations in the Latin America and Caribbean region. So if you’re looking to start operations in the next 3 to 6 months, Tamana InTech Park is the right move. 7. What types of leases are available at TIP and the new EZs for potential investors? e TecK has amended its leasing policy and now offers its tenants 30 year and 99 year lease arrangements. We have also introduced tenant operated Park Management Companies for the upkeep of the Parks’ common areas. In 2014 we are set to launch two (2) pilot companies. 8. What is the process for applying for a lot at Tamana InTech Park or at the new Economic Zones? To apply for an available lot at Tamana InTech Park or any one of the seven new Economic Zones, visit our website www.eteck.co.tt or www.tamana.com where you can review the checklist of required documentation when applying. Once you complete the form submit your application with all the required documentation to our Head Office, 131 Uriah Butler Highway, Charlieville, Chaguanas. Should you have any questions, contact our Sales Unit, Real Estate Assets Division at 1-868-638-0055.

5. Is TIP open for business? For investors with an immediate need for “shovel ready” sites, with all regulatory approvals in place, one location stands out – Tamana InTech Park (TIP). The Park’s strong environmental focus has been master planned to reduce waste and pollution, efficiently share resources (such as information, materials, water, energy, infrastructure, and natural resources), and help achieve economic gains for tenants and minimising our carbon footprint. It spans over eleven hundred (1,100) acres of green space and is the largest green business and industrial park with an academic and research focus in the Caribbean.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

UWI

Law Promising Future Lawyers are necessary in a community. Some of you ... take a different view; but as I am a member of that legal profession, or was at one time, and have only lost standing in it to become a politician, I still retain the pride of the profession. And I still insist that it is the Law and the Lawyer that make popular government under a written constitution and written statutes possible. WILLIAM HOWARD TAFT, speech, Nov. 4, 1909

ost people would have heard a derogatory joke about lawyers in their lifetime. This is a pity, since lawyers are irrefutably of immense social utility. This utility comes from them being trained in a thing indispensable to modern societythe law. No area of study touches and facilitates all of life like the law does. Law governs big and farreaching matters like the structure of Government. It directs smaller matters that affect private lives, for instance, the rules of an employment relationship. It dictates the parameters of acceptance of important social arrangements in society. For example, the extent to which unions between unmarried men and women are recognised is decided by the law. Thus law is much more than simple pedantic rules to govern life. A society's laws represent the ethos of that society, and its stage and direction of development. As a nation, we turned 50 years old last year. Age is relative, but by world standards, we are young in our nationhood, still in our identity-crafting years. Prior to taking our big step of independence in 1962, then becoming a republic state in 1976 we were a colony of England, subject to its laws and conventions, which were imposed upon us. Even upon attaining independence, our former Constitution was characterised as an Order in Council of the Queen.

cutting of ties from England, whose constitution is unwritten. The cut was not a clean severance though, as noted in the very wording of our Constitution. The savings law clause found at section 6 retains law that existed immediately before the Constitutionâ&#x20AC;&#x2122;s commencement and is the reason why some laws, which were not passed by any post Republic Legislature, exist today on our law books. At the time of the enactment of our Constitution, it was wise to retain ties with our colonial parent. Indeed, it is far-fetched to imagine a child acting as an autonomous individual without some guidance from their parent. But, even the control of natural parents over their children wanes over time. Before a child attains the age of majority, the law entitles them to make autonomous decisions on important issues. By the same token, as we grow older, we ought to be addressing our views, as a nation, on many of the positions set out on our law books, positions which we oftentimes never established ourselves, but adopted wholesale by imposition.

What more deliberate and effective way to craft the philosophy of a nation than through its laws? The mandate given to Parliament, the legislative branch of Government at section 53 of the Constitution, to make laws for peace order and good government, is thus a heavy one that enables our departure, as we see it, from political, social, cultural and ideological policy received through British Law. No arm of Government is more important than another but the It was a notable time for us then, when in 1976, we legislative branch, comprised mostly of officials enacted the Constitution of the Republic of Trinidad elected by the citizenry, is instrumental in defining and Tobago. For the first time, we were governed who we are and what we believe in as a nation. by our own Law, an indigenous instrument produced by us for us. It determines the structure and functions And who comprises the Legislative branch of of Government, and sets out the fundamental rights Government, or even the Executive and Judiciary, of every citizen as against the State. It represents which comprise the other two branches? Members a relinquishment of our colonial past and a of the Executive can be of disciplines separate from determination to fashion our own nation. The fact the law. But all judges are lawyers, and, even if the that our Constitution is written at all represents a actual members of Parliament are not lawyers,

Trinidad and Tobago Chamber of Industry and Commerce â&#x20AC;˘ www.chamber.org.tt

certainly the members of the Legislative Drafting Department are lawyers, or at least trained in the law. Currently, the holders of the three highest offices in our land, the President, the Prime Minister and the Chief Justice, are all lawyers. So we come back to lawyers. Love them or hate them, they are very instrumental to modern society. It is excellent, then, that there is now a Faculty of Law at The University of the West Indies (UWI), St Augustine Campus. Before 2012, Trinbagonian students were forced to go to The UWI Faculty of Law at Cave Hill, Barbados to complete the last two years of a Caribbean law degree. This was an economic strain, which could possibly have eliminated the option to study law for some potential students. Now, our future lawyers can be trained on their local soil surrounded by the ongoing, real issues that occur in our nation to provide context for the legal principles they learn. The students are generously exposed to the laws of the other Caribbean countries. The Law program as conducted in St. Augustine is as vibrant and as comparative in its approach as the one conducted at Cave Hill. Further, the program is open to, and attended by, other Caribbean nationals to facilitate a culturally diverse faculty where the students can learn from each other. The future of the law profession in Trinidad and Tobago is therefore promising. A strong mandate rests on the Faculty of Law, law students and qualified lawyers to contribute to our nation's development. We stand on the shoulders of those gone before us; giants in the law, like the late Dana Seetahal, who contributed substantially to defining our nation's ethos with her life's work. The Faculty of Law at The UWI St. Augustine Campus, is well poised to contribute to the delivery of lawyers who will follow similar footsteps. Honourable, service oriented lawyers, who leave the citizenry inspired and encouraged, not with a derogatory joke at the tip of their tongues.

Telecommunications Authority of Trinidad and Tobago

TATT moves to further empowered and protect consumers Cris Seecheran, Chief Executive Officer

he Telecommunications Authority of Trinidad and Tobago (TATT) recently launched a consumer advocacy initiative in a bid to encourage a stronger consumer voice that will improve the quality of telecommunications and broadcasting services in Trinidad and Tobago - particularly for disadvantaged persons in rural communities, senior citizens and the differently abled. The Advocacy Launch held in both islands – in Trinidad and in Tobago – formed part of TATT’s 10th Anniversary Celebrations.

This advocacy initiative is a cementing of the work the organisation has done to protect consumers over the past ten years including: • Establishment of a facility to act upon complaints from consumers of telecommunications and broadcasting services • Establishment of a toll free consumer complaint line 800-8288 • Appointment of a Consumer Complaint Committee, mandated in the Telecommunications Act and which reports to the board of TATT • Consistently disseminate consumer empowerment information by way of print and electronic media as well as via exhibitions, workshops conferences and ICT Open Fora hosted quarterly by TATT. In spite of these initiatives it is still evident that consumers of telecommunications and broadcasting services in Trinidad and Tobago are not sufficiently empowered to manage critical issues regarding their services. In her opening address at the launch of the initiative, Mrs. Pamella Benson, Chairman of TATT’s

Consumer Complaints Committee, stressed that the aim of the empowerment thrust would be to enable individuals to act discriminately, allowing them to become capable of making informed choices in purchasing goods and services within the industry, remaining ever conscious of their rights and responsibilities.

plan is to escalate its public education efforts with the aim of further empowering consumers. The organisation is also rigorously pursuing the completion of consumer protection regulatory documents such as Consumer Rights and Obligations Policy and Regulations along with amending the existing Telecommunications Act

TATT’s consumer advocacy initiative is the basis Looking ahead, the Telecommunications Regulator upon which TATT will continue to develop systems aims to establish a “Telecommunications and for consumer protection. Broadcasting Consumer Court” (Consumer Court) as part of its advocacy initiative. That plan was One of the responsibilities of TATT, as outlined in announced by TATT’s Chairman Mr Selby Wilson the Telecommunications Act, is to protect to providers and other major stakeholders at a 10th consumers of telecommunications and broadcasting anniversary stakeholder reception earlier this month. services such as fixed and mobile telephone. Internet, pay television and free-to-air radio and The Consumer Court will be a roving entity that will television. allow TATT, as well as providers, to hear first-hand complaints of consumers of telecommunication and Specifically, the role of TATT, according to the broadcasting services within various districts Telecommunications Act, is to develop Trinidad throughout Trinidad and Tobago. and Tobago’s telecommunications and broadcasting sectors. With regard to consumer protection, the It is expected that the Consumer Court will be Act mandates this organization to “investigate established within the next year and will allow c o m p l a i n t s b y u s e r s , o p e r a t o r s o f consumers the opportunity to publicly outline telecommunications Networks, providers of unresolved complaints about quality of service issues telecommunications and broadcasting services or in their area. other persons arising out of the operation of a public telecommunications network, or the provision TATT’s consumer advocacy t initiatives are aimed of a telecommunications service or broadcasting primarily at providing Trinidad and Tobago’s service, in respect of rates, billings and services telecommunications and broadcasting consumers provided generally and to facilitate relief where with a strong, reliable empowerment platform that necessary”. will keep the local Telecommunications and Broadcasting industry at the cutting edge of Over the next three years, part of TATT’s strategic technology.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Airports Authority of Trinidad & Tobago

Business opportunities are set to take off at AATT’S Piarco AeroPark irports Authority of Trinidad and Tobago is poised to announce the launch of the Caribbean’s first aerotropolis the Piarco AeroPark. An aerotropolis is a city-like urban development that is formed around an airport. The Piarco AeroPark is located to the north of the main terminal of the Piarco International Airport and east of BWIA Boulevard Phase 1 of the Park occupies 168 acres.

• • • • • • • • •

international trade; a four star airport hotel and conference center; retail; restaurants; entertainment; offices; warehousing; light manufacturing and an aircraft Maintenance Repair and Overhaul Facility (MRO).

On June 30th 2014 Airports Authority of Trinidad and Tobago will announce the call for Proposals. Businesses seeking to expand would have the opportunity to submit their proposals to lease and develop prime real estate just metres away from the Piarco International Airport. The Piarco AeroPark will contain zones for a wide range of activities including:

The Piarco AeroPark can emerge as a site that contributes to Trinidad and Tobago’s economic development through attracting investment and the creation of new jobs. Louanna Chai-Alves, Executive Director of the Trinidad Hotel and Restaurant Association, Trinidad and Tobago (THRTA) firmly believes that Trinidad and Tobago stands to benefit from the Piarco AeroPark.

“We look forward to the development of the Piarco AeroPark as an enhancement to the travelling experience and the tourism product of Trinidad and Tobago,” stated Chai-Alves. Airports Authority of Trinidad and Tobago is the organization responsible for managing both Piarco International Airport and ANR Robinson International Airport in Trinidad and Tobago respectively. The Authority has also developed the infrastructure for the Business Park which was officially named ‘Piarco AeroPark’ in November 2013 after a ‘Name the Business Park’ competition which was opened to all employees of Airports Authority of Trinidad and Tobago. Aerial photograph showing the proximity of the Piarco Aeropark to the Piarco International Airport.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Are you looking for an ideal location to host your Private Meetings, Training Sessions, Product or Media Launches, Christmas Cocktails or even your Wedding Receptions?

Then your Chamber is here to meet your needs!

Duncan Campbell Meeting Room

WM Gordon Gordon Board Room

Leon Agostini Conference Hall

Events have become the hallmark for many Corporate Communications and Marketing Divisions and finding that ideal venue is perhaps one of the most important aspects to the success of all activities. At the Trinidad and Tobago Chamber of Industry and Commerce we pride ourselves in providing rooms for small and medium sized functions. Our venue, at Columbus Circle, Westmoorings, has been rented by many members and non-members.

Named after the Chamber’s first President, our Leon Agostini Conference Hall, accommodates Theatre seating up to 200 persons and Banquet seating of 180 (rectangular tables) or 120 (round tables). Our Duncan Campbell Meeting Room can accommodate Theatre seating up to 40 persons and Round table seating up to a maximum of 16 persons. Our special offer to weekend clients is the WM Gordon Gordon Board Room which accommodates up to 14 persons in comfortable executive style.

As a “One Stop Shop” we provide complete services - Wheel-chair access, Parking, High Speed Internet access, Catering, Audio and Video, all in our air- The Chamber’s staff stands ready to assist and will work with you in ensuring the conditioned facility. Our rates are among the lowest, given our secure and scenic success of your event. Upon request we will assist with the coordination at a location. As a member of the Chamber your rental fee is discounted by 10%. reasonable fee.

We invite you to contact Eustace Pierre at 637-6966 ext. 286 or epierre@chamber.org.tt so that a tour of our facilities can be arranged. Thank you for your continued support and we look forward to welcoming you.

ACCA

Business effectiveness and the finance function By Brenda Lee Tang, FCCA Head of ACCA Caribbean The second ranked skill was the need for finance leaders to be good communicators, able to influence decisions. A keen desire to be able to interpret and tell the story behind the numbers explains why finance leaders rank this so highly – after all, a management accountant has to be able to provide the strategic narrative to support their analytical insights. The third most important skill was something very obvious for the finance leader, but which can often be overlooked when someone is disengaged with the business – and that is knowledge of the business. This is a highly valued skill, where knowing the business and what drives its results is an asset that enables the ability to make meaningful recommendations about the future decisions to be made for the business.

ACCA and IMA (Institute of Management Accountants) undertake a regular survey every 6 months into the priorities, effectiveness and challenges faced by the finance function.

It seems the respondent’s time is taken up dealing with regulatory issues, rather than in developing their people, and clearly this could have an impact in the future.

The latest survey, published in February 2014, shows that the finance function’s priorities have changed since the summer of 2013. Traditional accounting, such as cost reduction, risk management, forecasting, working capital management and improving controls – were the main priorities for finance leaders in February 2014, while in the summer of 2013 they were concerned about strategic support for the business. This seems to be attributable to seasonality in the finance team’s work.

Being an impact for the future means it will also be a management challenge for the finance function. Another challenge identified by finance leaders was the issue of many priorities coming their way. CFOs and finance directors say they are concerned about adequately servicing the many demands placed on their organisations.

The finance calendar is one dependent on deadlines and timescales that cannot slip, so priorities and focus will change throughout the year. Our survey also looked at the effectiveness of the finance function, asking the question: “How effective do finance leaders perceive the finance organisation to be?”

Engagement means building excellent internal and external relationships. The finance leaders for the ACCA and IMA survey said that banks and creditors remain the most important relationships for finance leaders, followed by auditors and then customers. It is heartening to see finance leaders think about the importance of customer behaviour on financial results and the impact of these on a wider audience External demands from investors were seen as the than internal colleagues. least challenge, showing how internal pressures can place massive challenges on the finance function, We also looked at how a finance leader spends especially when IT infrastructures do not support their time across finance activities. The one on which their work or when the business is overly complex. they spend most of the time was business analysis at 30 per cent, with finance operations and strategy Finance leaders were also asked about the development in at 19% and 15% respectively. importance of different finance skills in the business During the lifecycle of this research, there has been – which ones are the most important? The top answer little change in how things are done - simply was financial planning and analysis, a skill which managing the day to day operations and doing enables members of the finance team to derive detailed analysis are the main activities of that seem insights that will lead to better decisions for the to be central to the work of the professional working in the finance function. company.

Overall, the findings reveal a wide range of effectiveness levels expressed for the various finance functions, and this has remained consistent during the two year life cycle of this survey. It shows that finance leaders are satisfied, but not delighted, with their effectiveness in areas such as advising on strategy, in financial planning and in forecasting. The biggest concern for the finance function was about people – about managing talent and about recruiting the right people for the job. Having the time and other resources to develop talent seemed to be an issue for those surveyed around the world.

The next two most often expressed concerns that contribute to a finance area’s ability to handle the volume of demands it is facing are poor IT capability and the over demand for management information from the finance function. The management accountant’s skillset is very much in demand. Adequate technology knowledge and support can ease these demands, and enable a finance function to better deliver for the business, and more readily satisfy the demands placed on them for management information. But without this support, it will falter.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Criteria for student selection - Each student must: • Be unable financially to pursue further education upon graduation, • Demonstrate potential and a willingness to learn, • Attend all scheduled training sessions, and • Complete a data entry form outlining goals, skills & identifing areas requiring development. The Chamber’s NOVA Committee’s Jumpstart Programme was established in 1998 and seeks to assist school-leavers to learn about the working environment and to access opportunities for employment. Selected schools and institutions across the country are invited to nominate graduating students to participate in this highly regarded ‘youth development programme’.

Participating company requirements - Each company must: • Pay a weekly recommended stipend, • Assign a mentor to the apprentice and • Complete an assessment review at the end of the apprenticeship.

Further information is available on the Jumpstart Programme from the Chamber’s Secretariat or Cheryl-Lyn Kurban, Project Assistant at 637-6966 ext 228 or ckurban@chamber.org.tt

Member Corporate Profiles Branford General Contracting Services

ranford General Contracting Services are a complete Facilities Maintenance Company. Being in existence for 5 years we have established ourselves in the market and possess the resources and expertise to handle a wide range of jobs. While growing steadily and strategically, Headed by Chief Executive Officer Rory Branford, the company remains true to its core values of Safety, Integrity, Teamwork, Diversity, Customer Service, Quality, Growth and Performance. These are the cornerstones of the way we conduct business. Whether it is a residential or commercial project, each one is handled with the same dedication to excellence. The company's motto, "Experience the Difference" is observed throughout the organization and can be found

in Branford’s seasoned team members as well as in the diverse projects Branford undertakes. By selecting Branford our clients are assured exceptional service from a company who will work to understand their needs and deliver services that will add value to their business operations. Our goal is to develop into one of the most competent and reliable Facilities Maintenance Companies in Trinidad and Tobago and the wider Caribbean. We will achieve this through team work, as we understand that this is one of the key elements in creating success in the work environment. We will consistently offer our customers the most well prepared and experienced team of professionals committed to getting the

job done. We understand that quality in craftsmanship is the most important thing when it comes to doing the job right & satisfying the customer. It is our aim to keep abreast of technological changes & advancements in order to maintain and expand market share. The foundation of our success is built upon our commitment to quality and customer service. When you hire Branford you get an experienced team that takes total quality control. Our management style is safety oriented with our focus on constant process improvement. It has been & will continue to be a key ingredient in our company’s success and a critical component in providing consistently high levels of quality service to our clients.

Going Global Limited uch has been said about the contributions of the SME business sector to both GDP to employment generation around the world, but what makes a business successful and enduring? At Going Global Ltd we offer a wide range of services designed to not just help your business become successful but to help your business Go Global.

is today so that it is possible to plan effectively for moving from the current reality to the desired results. This integrated set of foundational activities is designed to accomplish the following: • Tack down where the organization is today, reviewing: • The current strategic plan and goal attainment percentage • In the case of divisions or subsidiaries, reviewing the current alignment of strategic goals • Key executive and management job descriptions • Organization’s core competencies • Key executive and management leadership competencies • Assessing the organization’s culture

Value Proposition Our proven techniques helps you craft the business or marketing statement that summarizes why a consumer should make use of any of the businesses’ products or use any of its services. This statement will also help you connect with a potential target market in a way that differentiates your particular products or services as to how it will add more value or solve a problem better than other similar offerings. Project Execution Planning Strategy without the benefit of implementation Strategic Planning remains nothing more than words on paper. Strategic planning is critical to any business Using international standards from the Project success. Our approach is different from classic Management Institute your business will benefit business planning, not only does our strategic from active strategy formulation which culminates variety involve vision and mission but also into the identification of critical business issues. outside-of-the-box thinking. Issues are then translated into projects, with discrete deliverables and backup plans. Project Current State Analysis management is the discipline that moves strategy The current-state analysis Service involves from the boardroom, to back offices and the gaining a gap analysis of where the organization regional and global marketplace. Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Employee Training Having the right combination of motivated employees is an essential component of any company that sets its sights on making a global impact. The employee training service will help improve productivity and profitability as well as increase your competitive edge. Mystery Shopping Service How do you know the type of service your customers get in your absence? Some reasons why Customers Leave... 69% Poor Service 13% Product Dissatisfaction 9% Competitive Reasons 5% Other Friends 3% Move Away 1% Die It costs 5 (7 10, etc.) times more to find a new customer than to keep an existing one. One unhappy customer will tell 10 other people of their bad experience with service. These people may then tell 10 others, and so on. We work with you to develop and setup a professional team of ‘shoppers’ for your business to audit the service experience of customers and potential customers.

Chamber

Quarterly Report - Tobago Division he Chamber’s Tobago Division has been very active throughout the first quarter of 2014. In mid-January, the general membership of the Division met with representatives of the Port Authority of Trinidad & Tobago and the Trinidad & Tobago Inter-Island Transportation Co. Ltd. Problems relating to the malfunctioning of vessels, improper ground services, and poor sea-bridge security were discussed and solutions found.

The Inter-island Sub Committee met with a team from Trinidad Cement Ltd. to discuss the best way forward to alleviate cement shortages in Tobago which is a chronic concern for the island. In February, The division teamed up with Environment Tobago (ET), a well respected NGO under a Memorandum of Understanding (MOU) signed by the heads of both organizations. The Division and ET agreed to share capacities for “green” projects that can

benefit Tobago’s natural environment and for. We continue to lobby the THA, the local Tobago’s society in general. banks and Central Government to bring it to fruition since its launch in 2013. The Management team of the Division also paid a courtesy call to the Chief Secretary of The Tobago Division of the Trinidad and the THA. Chairman (Ms. Hadad) presented Tobago Chamber of Industry and Commerce to the Chief Secretary three (3) initiatives held its Annual General Meeting on Monday which the Chamber sought to participate with 17 March, 2014 at the Division’s offices in the THA. Scarborough, Tobago, where Ms. Diane 1. New steel containers for small vendors Hadad was elected, unopposed, for a second usage term as Chairman of the Division. A new 2. To provide expertise financial assistance Management Committee was also elected: to Tourism and Tourism related businesses • Immediate Past Chairman in Tobago David Wong (non-elected; 2nd term) 3. Plastic waste recycling project • Vice Chairman - John Chapman • Honorary Secretary - Carlos Dillon The Chief Secretary bid farewell to the • Assistant Hon. Secretary - Janet Parks outgoing Management Team as the TTCIC • Committee Member - Andrea Tuitt elections we due to be held in March. • Committee Member - Christopher James • Committee Member - Curtis Williams The $5.52 million revolving Loan Guarantee • Committee Member - Demi John programme in support of Tobago’s Tourism Cruickshank sector is one of the projects that the Division • Committee Member - David Ford continues to work towards finding a solution • Committee Member - Ray Thomas

Welcome to New Members AUDAZ EVENTS Address: 11 Mountain View Road , Maracas Valley, St. Joseph Tel: 756-9862 Email: sclement@audazeventz.com

DEBT RECOVERY & ADMINISTRATION SERVICE Email: chadcully@gmail.com LTD Website: http://montageprott.com Address: 37 Eleanor Street, Chaguanas Tel: 665-8444; Fax: 671-7681 MONSTER MEDIA GROUP LTD Address: 1 Film Centre, Humphery Street, St James EASTMAN & ASSOCIATES Tel: (868) 628-9221; Fax: (868) 628-9221 AUTOMATION TECHNOLOGY COLLEGE LTD Address: 31 Scott Bushe Street, Port Of Spain Address: 4 Johnstone Street, San Fernando Tel: 625-3232; Fax: 625-3219 Email: chris@monstermediagroup.com Tel: 652-4122; Fax: (868) 652-4122 Email: eastman@tstt.net.tt Website: http://www.monstermediagroup.com Email: atc_west@yahoo.com Website: http://www.eastmanandassociates.com RACHEL WILLIAMS BIANA EDWARDS HADCO LTD (TOBAGO) Address: PO Box 2079, National Mail Centre, Piarco Address: 56 Pelier Trace, Scarborough, Tobago Address: c/o JRJ Warehousing Compound, Tel: 760-2079; Tel: 639-3636 Bhagoutie Trace, San Juan Email: rachaelw@yahoo.com Email: ieconsulting@tstt.net.tt Tel: (868) 675-7628; Fax: 868-675-2641 Email: josephtt@hadcoltd.com REDHEAD HOTEL LTD BRIAN FRONTIN Website: http://hadcoltd.com Address: LPs 96 Milford Road, Crown Point, Tobago Address: 1258 West Bank Road, Block 7, Palmiste, Website: http://www.redheadhotel.com San Fernando INGENIUM SEARCH LTD Fax: 222-0403 Address: 1 La Bella Orange, 15 Coblentz Avenue, ROCKE AND ASSOCIATES CONSULTING Email: brian.frontin@gmail.com Cascade SERVICES LTD Address: 3 Farfan Street, Diego Martin Email: evieira@ingeniumexec.com BRANFORD GENERAL CONSULTING SERVICES Website: http://ingeniumexec.com Tel: 637-8977 LTD Address: 150-1 Bon Air Circular Rd., Bon Air Gardens, JOHNNY Q SOUND CO. LTD TRINIDAD AND TOBAGO CREDIT UNION Arouca Address: 72 Norfolk St, Belmont, Port of Spain Address: 61 Tenth Street, Barataria Tel: 221-3127 Tel: 868-621-2156; Fax: 868-621-2156 Tel: 674-6514; Fax: 675-8479 Website: www.policecreditunion.com Email: branfordgen@yahoo.com Email: johnnyqsound1@gmail.com Website: http://www.johhnyqsound.com CARGO CONSOLIDATORS AGENCY LTD YEARWOOD’S QUALITY CLEANING SERVICES Address: 3 Richardson Lane, Sam Boucaud Rd., Address: 43 New Street, Port Of Spain MONTAGE PRODUCTIONS LTD Tel: 223-7447; Fax: 625-6263 Address: 63-65 Norfolk Street , Belmont Santa Cruz Website: http://www.cargotrinidad.com Email: quality.cleaning03@hotmail.com Tel: 752-2802

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

IMPACT The Chamber’s CSR Committee By Anil Seunath, Chairman

n the Trinidad and Tobago context, CSR is in its discovery stages. I say this not from a corporate perspective but from a societal one. You can usually gauge the enthusiasm and interest when you broach this topic at a social gathering. And if you look really closely, you will see that point at which they come to a conclusion about CSR …I get it, you do Public Relations... Wonderful! This tells us two things; firstly that the embedding of CSR is taking a while and only through the advocacy such as a magazine like this, and by taking the initiative, will we succeed in making this the ethos of our society. The second reason, and perhaps the more indicative of our society, is that we live in a country where the level of social services and the welfare system is adequate to support those in need. I do think that in some ways, CSR for Trinidad and Tobago (from a philanthropic perspective), is a welcomed enhancement to our livelihood that is better than many of our Caribbean counterparts. So while across the region, businesses are focussed on those critical interventions that support the social investment agenda. In Trinidad and Tobago the imperative for the business community is to progress the social responsibility agenda in the areas of responsible governance, ethics and sustainability. It is the role of the Chamber to act as the voice of its membership; to represent them on the national business front which they are unable to do effectively on their own. It is

this coming together of minds and influence that makes it possible to overcome challenges and work in the best interest of its membership and the wider Trinidad and Tobago business community. The Corporate Social Responsibility Committee which sits within the Chamber and is one of 10 purpose-driven work groups, is poised to entrench CSR practice nationally and to serve as advocate. It is our mandate to educate, advise and promote CSR initiatives amongst our membership and to implement a common process for measurement and reporting. At the start of 2014, the CSR committee completed the first of a planned series of development workshops. The series in itself is geared towards deepening the understanding of CSR and to guide the process of CSR programme design and implementation. The first session looked at the fundamentals of CSR and an introduction to the UN Global Compact principles. The next two workshops will look at Strategy and Implementation, and Monitoring and Evaluation. By doing this we are able to bring everyone on an equal footing. With the members in mind, it is a way to of strengthening the network and to share learnings.

an integral aspect of how business is done. Our committee is diverse and brings rich context from across several industries including Manufacturing, Government, Regulatory, Private sector SME’s, Oil and Gas and Public Sector. Creating sustained profitability for its shareholders is the primary success indicator for every good company. However organizations are accountable not only to their shareholders, but also has varying degrees of accountability to governments, employees, customers, suppliers, regulators, community and the environment in which it operates. Value creation includes all these stakeholders. The role of the CSR professional is to support a company’s business objectives by aligning its Social Responsibility programme with those objectives being mindful of the organisations stakeholders.

Brand it as you may, the principles of CR, CSR, Sustainability and Sustainable Development are all the same. The Brundtland Commission in its 1987 report “Our Common Future” coined what has become the most often quoted definition of Sustainable Development, “development that meets the needs of the present without compromising the ability of future generations to meet their A key objective for 2014 is to work with the own needs”. membership in identifying risks, particularly in the form of external expectations and So before a company begins to chart and pressures, and to transform these risks into implement a plan for addressing social opportunities and competitive advantage. Our responsibility, it should work collaboratively members should be seen as the influencers in to define and evaluate the needs of its society by embedding structured CSR into stakeholders and make careful analysis of their organization and making Social, how any interventions on its part can bring Economic and Environmental responsibility benefits for all.

Contact • Vol.14 No.2 2014

Chamber

The History of Nelson Island

elson Island is a part of six islands which are collectively known as “Five Islands,” one of the most important historical sites in our country. These islands are: Caledonia, Craig, Pelican, Lenagan, Rock and Nelson. They were called “Five Islands” after Craig was connected to Caledonia via a causeway. Nelson Island is of such historical importance as during the pre-Columbian period it was inhabited by the Warau (Amerindians). When Trinidad was claimed by Spain in 1498 the

island was used as a first line of defence which continued with the establishment of a fort by English Governor Thomas Picton after Spain capitulated in 1797. Nelson Island got its name from the corrupted version of Dr. Thomas Neilson, a wealthy doctor who was granted the island by the government. Book a tour to hear more about the struggles and victories of the island’s inhabitants which included enslaved Article courtesy The National Trust of T&T Africans, Indian indentured labourers, Jewish Tel: 623-9311 Ext. 2073/4 refugees and Labour Leader Tubal Uriah ‘Buzz’ Email: nationaltrust.tt@gmail.com. Butler.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

GROUP HEALTH

Every Chamber Member is entitled to benefit from our Group Health and Accidental Death and Dismemberment Plan

• Guaran teed pro tection a gainst local an d foreig n emerg encies • CariC are Med ical Car d • Favou rable pr emiums • Medic ard disc ounts

For information call: 637-6966 Ext 1310, 1321, 1243

Advertisers ACCA

Pg 6

Lexmark

ACI

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Ministry of Labour and Small and Micro

Agility ICT Solutions Limited

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Enterprise Development

Arthur Lok Jack Graduate School of Business

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Massy Motors

Airports Authority

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Ministry of Planning

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BEI International Limited

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Monix Grill & Lounge

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Beacon

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MBM

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Boss

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Massy Technologies

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Colfire

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PWC

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Courts

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RBC

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Columbus Business Solutions

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Republic Bank

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Crowley

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Securities & Exchange Commission

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Eximbank

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Southern Sales & Service Co. Ltd (Kia Motors)

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EMA

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Southern Sales & Service Co. Ltd (Audi)

Eureka Communications Limited

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SSS Car Rental Division

Evolving TecKnologies and Enterprises Development

Outside Back Cover Pg 8 Inside Back

Inside Front Pg 47

Telecommunications Authority of

Company Limited (e TecK)

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Trinidad and Tobago

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ExporTT

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TSTT

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Massy Finance

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TTPost

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Guardian Group

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Unit Trust

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Jaric Environment Safety and Health Services Ltd

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UWI

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Laparkan

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Voila Gourmet Catering

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Trinidad and Tobago Chamber of Industry and Commerce â&#x20AC;˘ www.chamber.org.tt