With increased wages there must be increased productivity, the T&T Manufacturers’ Association (TTMA) said in its budget response. Noting that the minimum wage will increase by 20 per cent from January, the TTMA said: “We are concerned that, in the absence of a commensurate increase in productivity, there will be a negative impact on inflation and on our local manufacturers’ competitiveness. “Furthermore, we would like to see a re-commissioning of the National Productivity Council, with a new mandate to oversee the measurement of productivity in the country.”
The TTMA called for increased dialogue on other aspects of the budget and said it embraced the plan for an office of procurement regulation but had reservations. “We observe that no clear mention was made regarding the expected date for its establishment; notwithstanding, we look forward to this being put in place before the end of 2014 along with sufficient provisions for local content.”
The TTMA said it welcomed the rebates on the cost of refurbishing approved facilities for agro-processing but suggested they should be made available to the entire food and beverage sector, including input suppliers. The group added: “TTMA notes with keen interest the reference made to the development of the Innovation Fund and wishes to partner with the Government in developing its terms of reference along with other stakeholders.”