Prime Minister Dr Keith Rowley on his return from his first official trip abroad said yesterday the existing limit for borrowing under the Development Loans Act, the Guarantee of Loans Act (for companies) and the External loans Act have been used up by the former government and if the new Government had to borrow the it had to be increased by Parliament.
He said that was the reason why Finance Minister Colm Imbert was presenting a motion to increase the limit for borrowing under the legislation in the House of Representatives this afternoon. The motion is seeking to increase the limit to $75 billion.
The move was criticised by former Opposition senator Vasant Bharath, who said yesterday the Government should have exercised other options.
But Rowley said last evening on his return from the Commonwealth Heads of Government Conference in Malta the Government would go to Parliament from time-to-time to borrow, adding the limit was set by the Parliament.
He said: “What has happened is that the last government borrowed right up to that (approved) ceiling so the Parliament’s approval to borrow has been used up. The ceiling has now been reached.”
He said, consequently, “if this Government has to borrow, as we have to, we have a serious deficit, which some of it can be closed (reduced) by borrowing.”
He said the Government “does not now have parliamentary approval to borrow because the ceiling that was set by the current approval, that ceiling (limit) has virtually been met.”
He said Imbert would give the details of the matter in Parliament today. According to Rowley, the Parliament was being asked “to raise the ceiling, which will create a space for us to borrow. That is what that is.”
He added: “We have to set our sights on being able to service those debts, have a proper revenue stream and ensure the debt don’t become the number one problem in the country.”
He said the debt to GDP ratio before the PP assumed office was about 34 per cent and after it lost office that ration stood at 46 per cent.
In response to a question, Rowley said the study was being done to determine if the rail project was feasible but he quickly indicated that such a project would create economic development in the nation.
He said the Government was committed to ensure there was “better collection of revenues.”
He also said measures must be implemented to expand the economy.
He said that matter had nothing to do with looming gas problems which were affecting the country.
Earlier he said there were some very serious concerns for the population because of the latest Ryder Scott Report on the nation’s gas and oil reserves, which was before a Cabinet sub committee.
Rowley said he held very important meetings with senior officials of BG, BP and Shell in London to discuss that matter and a subsequent meeting was expected in Port-of-Spain next week.
He said his energy adviser, Prof Ken Julien, chairman of the National Gas Company, Gerry Brook, and Petrotrin chairman Andrew Jupiter attended the high-level discussions in London a few days ago.
In response to questions on the Court of Appeal ruling on the UNC’s election petitions, Rowley, who was abroad when the judgment was delivered, said it was simply that the court agreed to have the matter heard.
He said the PNM was very clear on the matter.
He added: “We won the election, we are the Government of T&T and we will discharge our responsibility until such time that something else happens.
“We don’t expect to be anything but the Government of T&T. Let them go play in the court. They are free to play in the court. We have confidence in the court processes in T&T.
“Now that the court has said it will hear the matter, and that is all that has happened so far, we now will rely on the leading of evidence and the court will then rule as to whether there is evidence to support her (Opposition leader Kamla Persad-Bissessar’s) optimism.”
Persad-Bissessar said the ruling brought into question the legality of the Government.
The PP is challenging the results of the September 7 general election in six constituencies held by the PNM. It is claiming that the decision of the Elections and Boundaries Commission to extend voting in Trinidad by one hour disadvantaged its chances at the polls.
He said Commonwealth leaders at their recent conference in Malta discussed the issue of security and corruption. To this end, Rowley said, he would be attending a conference in London next May to address those issues. It is being hosted by UK Prime Minister David Cameron.
He said during his visit Singapore offered to assist T&T in “strengthening its institutions to deal with governance issues, particularly with respect to matters such as public service and corruption.”
Rowley said T&T would “take up” those offers.