The Government should renegotiate the US$5,000 daily rate for the Tobago ferry because of T&T's serious financial straits — and especially if $28 million has to be spent to dredge the Port to accommodate it, UNC MP Dr Suruj Rambachan has said.
Rambachan spoke about the issue during yesterday's Parliament debate on the 2018 Budget.
He noted a Budget item concerning a $49m allocation for Port dredging for the Superfast Galicia vessel in 2017 — but nothing was spent. He also noted a $28m allocation for dredging for 2018.
"Is it that the Ocean Flower 2 ferry also requires dredging? The Prime Minister has spoken of having to pay US$5,000-6,000 daily for the ferry, why not renegotiate this because paying US$5,000 daily over 360 days is a lot."
Rambachan said fuel price hikes, various taxes and expected water and electricity increases would hit the entire public, not just some He said this is especially so since 2015 Central Statistical Office figures showed 77 per cent of the population earns less than $6,000 monthly with 23 per cent earning over $6,000 monthly, including two per cent earning over $15,000.
"Budget costs will make the middle class disappear. The Finance Minister's claim the burden will be shared is an illusion. The real colonial master now is poverty and it's covered in the figure of the Minister,"
Rambachan said T&T's 77 per cent wouldn't be able to withstand a devaluation.
"Instead Government should encourage citizen-driven restraint strategies, encourage savings in US dollars from the diaspora, urge people to vacation in the Caribbean rather than the US, examine the parallel market for US dollars, restructure loans, probe capital flight and over-invoicing of goods."
Demonstrating how Government lost taxes in VAT and excise duties collection, he noted a projected $400m collection figure for cigarettes in 2017 was only $200m.
"It's not because less people are smoking — Witco's profit was up in 2017 — it's because of smuggling."
He said National Security scrutiny needs to be improved at Cedros, Orange Valley, Carli Bay and Moruga to cut this and human trafficking. Staff rotation is needed at Cedros especially, he said.
Saying he had done housing development since 1983, Rambachan advocated for the construction of four-apartment complexes for sale to the public with low mortgage rates equivalent to low rents. He, however, said regulatory agency processing was slow. Rambachan said it was time to "call a spade a spade" and people had to work better. The "siesta" work attitude also has to be improved in Tobago, he said.
Rambachan warned Government not to be glib about public reaction since a time would come when the establishment would be the subject of attack.
"You shouldn't take seeming indifference for granted. People are fed up. They don't want to debate the past, they want to know what you will do to create a future," he said.