Questions raised publicly by chairman of the Economic Development Advisory Board (EDAB) Dr Terrence Farrell about the Government’s decision to build a $400 million highway to Manzanilla instead of upgrading the Tobago airport in preparation for the Sandals hotel seems to signal that Government is ignoring the advice of the board.
Farrel, who heads the Government-appointed board, questioned on more than one occasion while addressing the public, whether Government’s priorities are linked to its diversification drive.
Since it assumed office, the board has been meeting regularly and made several recommendations to the Government. But officials told the T&T Guardian, “It is up to the Government to accept the advice we give. But the fact that a number of members in an individual capacity have spoken out on how we view Government’s priorities is an indication that our views are not in sync with the Government’s policy.”
The board’s focus is on the development and advocacy of policies, programmes and projects for Trinidad and Tobago’s long-term development and transformation, specifically promoting diversification of the economy—the promotion of economic activities which earn foreign exchange, save foreign exchange and promote productivity. The board’s remit is to provide economic analysis and advice to the Prime Minister of Trinidad and Tobago.
Economist Indira Sageewan-Alli agreed with Farrell that Government’s spend on infrastructural projects needed to be linked to its economic diversification programme. But Sageewan Alli said in raising questions about Government’s spend, Farrell should “go further and provide an analysis whether the Sandals model makes sense at all”. She believes the Government needed to say why it is using the Magdalena Grand hotel model to construct the Sandals hotel at taxpayers’ expense. Prime Minister Dr Keith Rowley announced that the Government would pay for the construction of the hotel which will be managed by the Sandals group.
She said, “Government is putting the money down to support the infrastructure, Sandals is taking no risk, all of it is ours, our property, Government spending taxpayers’ money and bringing Sandals in to manage.
“So if Sandals decides a year down the road this is not working for us, what happens? If Sandals believed this is such a great investment why aren’t they putting in the money themselves?” she asked.
The economist believes Government set up the Economic Advisory board to match what exists in Singapore, but makes very little use of its expertise. Sageewan-Alli said it was clear that the board makes recommendations and gives advice to the Government but very little of that advice has been taken. “They have no teeth beyond giving advice,” she added.
She said “at the end of the day, our politicians have it in their heads what they want to do, and will do that regardless of what is practical, sensible or what better economics dictate. As usual, politics trumps economics and this is a very good example of that.”
On November 17 in Parliament, Rowley said there was “a slight setback in terms of time” with the signature project. Rowley said T&T was lower down the group’s list of priorities—initially thought to have been second on their list, T&T is now fifth. The PM said the group was dealing with hurricane damage at other resorts and that they were also wary of the “kind of welcome they might get in T&T”.
Objections and concerns about the Sandals project has been raised in several quarters.
Farrell agreed to do an interview with the Guardian “in due course”.
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Works and Transport Minister Rohan Sinanan, meanwhile, denied Government was not paying heed to the Economic Advisory board. Sinanan said both the Manzanilla highway project and the Sandals project are important to the diversification drive.
He assured “the Tobago terminal building is not a dormant project. It is a priority project that is being worked on. We are finalising the package right now to go to Cabinet and very soon Cabinet will announce the plan. It will start in 2018.”
Asked the cost of the project, Sinanan said that was being worked on. “We also have to look at the issue of land acquisition.” Sinanan said the project was not just “important” to the tourism product in Tobago but the overall development of the island. He said the development of the Eastern seaboard was also part of the plan to create other avenues for increasing activity between Trinidad and Tobago.
He explained that the highway from Wallerfield to Manzanilla will extend to Mayaro. Sinanan said the plan was to take the highway from Sangre Grande to Toco “where there are plans for a passenger ferry port to Tobago”. Consultants he said are currently working on the plan for the Toco Ferry port. Sinanan said this was all part of the diversification drive. “It is all inter-connected. If we don’t do this that Eastern seaboard will never develop to its potential.”
(Read more in your Sunday Guardian on December 3)