The Chaguanas Chamber of Industry and Commerce (CCIC) believe government policies are chasing investors. President of the Chamber Richie Sookhai said the government should rethink it’s tax collection drive until the economy improves.
He said ArcelorMittal cited taxes and higher fees as one of the reasons it folded local operations last week. On Saturday, Sookhai said the Chamber was concerned about the abrupt and final closure of ArcelorMittal, and the loss of employment for over 700 employees at the plant in Pt Lisas.
“The Chaguanas Chamber of Commerce shares in the concern for the future of the employees of the company who will be dealing with very trying times ahead as they try to cope with the job loss and the need to take care of their needs and that of their families. We hope that the government and the representative union are cognisant of the role they will need to play in providing the necessary support services to help these families cope,” he said.
“ArcelorMittal has made it clear that it did everything it could to keep the company afloat but cites certain significant factors which contributed to their decision to close the plant: the drop in global steel prices was a major factor cited but we note their concerns about the increases locally in the price of gas, electricity, port rental fees, property taxes and business levies.”
Sookhai continued: “The Government must certainly take note of these deciding factors in light of the fact that the role of the Government is to provide an environment that facilitates the growth of business and encourages new investment from both within and outside of Trinidad and Tobago.”
He said the closure of the plants cannot reflect well on the country internationally and to foreign investors considering Trinidad and Tobago as a potential place for investing.
“We all need to be aware that the fall of ArcelorMittal will also impact on the downstream businesses born out of the needs of the steel industry and we can expect to see more layoffs and job losses. And certainly, if a giant like ArcelorMittal can fall so quickly then we must anticipate that the ripple effect will be felt far and wide across the country,” Sookhai warned.
He welcomed the tripartite meeting between Government, the company and the Steel Workers Union of T&T representatives saying that it comes at an opportune time for the country since we need to find ways to work together to rebuild the economy through broad and intense diversification away from the oil-based economy that now exists.
“We are certainly appreciative of the commitment the Government has made and kept to set up such consultations. It is in the interest of all parties that we find common ground from which to work while we seek to find ways to ensure that more businesses do not fail and more employees and their families do not find themselves facing financial fears and an uncertain future,” he said.