T&T’s stalled southern Caribbean fast ferry proposal and the regional controversy over T&T’s fuel subsidy for Caribbean Airlines are to be discussed at the Caricom leaders’ 34th summit starting Wednesday in Port-of-Spain. “Those issues (above) are current, so those as well as Caricom’s future will be examined,” Foreign Affairs Minister Winston Dookeran added yesterday.
Prime Minister Kamla Persad-Bissessar assumes the Caricom chairmanship at this summit, which marks the 40th anniversary of the signing of the Treaty of Chaguaramas on which the regional movement is based. This was signed by leaders of T&T, Barbados, Guyana and Jamaica in 1973.
However, at least one Caricom member—St Vincent and the Grenadines—is coming to the summit armed with opinions that T&T, one of the signatories to the treaty, may be in breach of the revised treaty, due to its position on the fuel subsidy, where LIAT is concerned. These and other transport issues may place T&T under a “hotspot” light at the summit. Communication Minister Jamal Mohammed yesterday said all regional heads will be attending.
Summit guests include new Venezuelan President Nicholas Maduro, Dominican Republic President Danilo Medina and President of the Central African state of Equatorial Guinea, Tedoro Obang Nguema. Among regional security, transportation in the region, Caricom’s reform process and proposals for a special meeting on people with disabilities, agenda issues also include economic challenges facing member states.
T&T’s submissions will include examination of post-2015 millenium goals. Concerning transport, discussions would likely include the proposed fast ferry project for the southern Caribbean, which arose during the Government’s early tenure.
At last month’s Caricom Transport Ministers conference in St Vincent, members agreed to continue reviewing that proposal. The ferry was proposed to operate from T&T to Grenada, St Vincent and Barbados via private sector initiative. While T&T’s Government wasn’t funding the project, T&T assistance was proposed via fuel and docking infrastructure. Projected ticket cost was initially (US) $25-35.
The Government reached the point in 2012 of selecting a proposal for running the venture from the Barbadian-based FCL consortium. Yesterday, a Transport ministry spokesman said the project was on hold. Other officials said the Finance Ministry in 2012 expressed concern about the request for a guaranteed fuel price for marine diesel and the project was deemed not “economically viable.” Up to March, however, St Vincent had sanctioned the fast ferry project, noting the increase in agricultural trade among T&T and the islands.
Vincentian PM Ralph Gonsalves said people discussing a fast ferry service often want governments to fund at least a six-month trial run. He said only T&T among Caricom countries has such resources and it would be up to T&T on whether they are going to fund it. Gonsalves had noted, “The enthusiasm of some ministers in some countries on this subject always comes up against the realities as spelt out by various finance ministries.”
Summit agenda issues will most likely also involve complaints by LIAT shareholders, including St Vincent, on T&T’s fuel subsidy for CAL. The issue was not worked out at the recent Transport Ministers’ meeting, it is understood. Some states say the subsidy is anti-competitive and may be in violation of Caricom’s multilateral air services agreement and the revised Treaty of Chaguaramas.
St Vincent, for instance, is understood to hold a legal opinion on this, the T&T Guardian learned yesterday. Following CAL’s $700 million loss, Finance Minister Larry Howai recently said he wanted to deal with issues at home first.