The Chamber of Industry and Commerce has said the 2014/15 budget “did not substantially provide any new avenues for truly taking the country to sustained economic growth and prosperity.”
This was part of the theme of the budget, according to Finance Minister Larry Howai. “Many of the initiatives mentioned are ones which were already in train but which did not materialise within the expected timeframe. Implementation of plans and projects continue, in the Chamber’s view, to be a handicap,” the group said in an immediate response.
It said among the positive elements in the budget were incentives for stimulating innovation at the firm level and proposals to further expand the manufacturing sector. It agreed that the re-balancing of the economy in favour of the non-oil energy sector would lead to a more sustainable economy and welcomed proposals on procurement legislation. However, the chamber expressed concern about the ability of the Government to get past bureaucracy, a factor that affected competitiveness. “This is also symptomatic of our revenue collection. In terms of implementation, the chamber is concerned that there have been two tax amnesties in the past four years, not to mention similar amnesties given in previous years.
“The chamber continues to question the efficiency of the current tax system—this indicates that we are not able to put proper systems and mechanisms in place to ensure that all revenues due are collected in an efficient and effective manner, so that there is no need for the amnesty on a regular basis,” it added. The group said productivity was another issue that the chamber felt needed to be addressed and noted that T&T ranked 126 out of 144 in the sub-index of Pay and Productivity of the 2013/2014 Competitiveness Index; in the 2014/2015 Index, the country was ranked 124 out of 144.
On the increased minimum wage, it commented: “While we are in support of a minimum wage which allows all persons to be able to afford to live at a reasonable standard of living, we would like to better understand what was the process that was used to determine the amount of the increase and whether productivity, among other factors, was considered. “A Social Dialogue Committee was set up two years ago to have the widest possible discourse on labour matters, was there discussion on this proposed minimum wage increase?” the group asked. The chamber said it remained committed to working with Government, business and all stakeholders to see an empowered people through sustained economic growth and prosperity.