The value of T&T’s Heritage and Stabilisation Fund could deteriorate if the UK “Brexit” situation causes a recession which spreads to the US, Prime Minister Keith Rowley said yesterday. He spoke about possible effects on T&T of the British exit from the European Union (Brexit) in replying to queries at yesterday’s weekly Government media briefing.
He said the “Brexit” situation following last week’s referendum by the UK public was a work in progress and still unfolding, “changing by the hour,” and not even the British understood what was happening. He said the situation was “on the table” and he did not have the answers. “We are monitoring it closely to see where our interest lies,” he added.
The Prime Minister said some experts felt if there was a decline in the UK economy and London was no longer the European financial centre, a UK recession would impact in some way on T&T, since visitors to Tobago came from the UK.
Also, he added, if a UK recession fed into the US, the value of the HSF would deteriorate, since the HSF’s components were in US dollars and US investments.
“So we have an interest in all that,” he said.
Rowley also said if the “Brexit” vision was not realised and that resulted in a contraction in UK consumption and business, it would obviously affect T&T products and others elsewhere in the world.
“While Government does not have the answers currently, the Finance Minister will at the appropriate time make a statement. We will make statements as we deem necessary to keep the population informed,” he added.
Rowley said Government would not make statements on a know-it-all basis. “There’s no Donald Trump in this government,” he added.
Regionally, Rowley said he had also heard the “winds of disturbance” in Caricom—concerning Jamaican calls to exit Caricom—but T&T was resolute in its commitment to Caricom.
During his upcoming three-day visit to Jamaica (from July 17) he said he would address such developments, seeking review of Caricom. He said that had not arisen six months ago.
Rowley said re-establishment of T&T’s Barbados High Commission was testimony to its commitment to Caricom and he “resolved to do whatever we must to ensure Caricom remains.
“When your neighbour’s house is on fire, wet yours. We still believe there is value in the strength of Caricom and that we are stronger together. We will do everything possible to have it prevail,” he added.
Rowley announced Government would close its Uganda mission as that location was not the best to treat with the Middle East concerning trade, business and finance.
He said that would be better served with a location in the Emirates. The Uganda mission would be replaced by an Abu Dhabi embassy to expand efforts in Dubai and surrounding areas and assist T&T’s International Finance Centre thrust, he added.
Government is also awaiting agreement from India on T&T’s appointee there and would nominate persons for the UK and Nigeria, he said. He detailed shifts to and from T&T of foreign service officers which he said was normal practice.
Statements on Clico
Government wouldl deliver two statements in Parliament on Clico and its direction ahead, the PM added. He said Government had “no horse in the Clico race” and was backing nobody to escape sanction.
Rowley said today’s Government statement on Clico would be made by him concerning the report by Sir Anthony Colman (was sent to him by the President) of the Clico/HCU commission of enquiry.
He said the Finance Minister, in conjunction with Central Bank, would also make a statement in Parliament the following week on where Clico would be going. He said the HCU would also be in focus.
On bankers’ concerns about foreign account tax compliance measures, Rowley said legislation was being drafted and that would be presented in the next Parliament session, expected to begin in September.