Chairman of the Economic Advisory Board to the Government, Dr Terrence Farrell, said it would not be prudent for the Government to acquire the ArcelorMittal steel plant. He said even if the company did not have the $1.3 billion debt, it would still be “imprudent” for to acquire any company.
Justifying his statement, Farrell—an economist and former Central Bank deputy governor—said the Government has no resources with which to acquire that company or any company.
“The Government does not have the management expertise to successfully manage this company in what is an extremely challenged marketplace for its output in the foreseeable future. It is not enough to have skilled labour to successfully run a globally competitive business. You need capital, management, international marketing, logistics and supply chain management and deep knowledge of the technology.”
Last Thursday, the Industrial Relations Court ruled in favour of 700 workers who were laid off between December 2015 and February 2016. But, on Saturday, the workers were informed of the company’s decision to close its doors because it had racked up a debt of $1.3 billion since 2009. The company also offered the Government to purchase the company for $1.
Prime Minister Dr Keith Rowley has described the decision to close the company as punitive and disrespectful.
In emailed responses to the T&T Guardian yesterday, Farrell said even if the company was acquired for the purpose of saving jobs, it would be a “mistake.” That mistake was made previously, he said, and should not be repeated. Referring to ArcelorMittal’s financials he said acquiring a company with such a large debt may mean that T&T’s external debt “will increase precisely when we would not want it to.”
Farrell said when it comes to the global marketplace the outlook for oil, gas, and other commodities remain “dire” and this country cannot change that.
“We have to adjust to it (the global reality) by taking decisive action with our macroeconomic policies to meet the challenges. Wishful thinking and hoping for miracles will not help. Our ‘Trini God’ will surely help us, but only if we help ourselves.”