Thursday, September 2 2010

After witnessing over two years of negative growth and a steady increase in the size of the Budget ($45 billion in 2009 and 2010), the Greater Tunapuna Chamber of Industry and Commerce says it is imperative for Government (gtcic) to halt the downward slide immediately while introducing urgent short, medium and long term measures to effect the transformation of the national economy.

In its budget proposal, the chamber says there seems to be a grave disconnect with many of the inherited State-sponsored programmes and the participation of the private sector.

But some of the immediate steps to reverse the situation include:

•AGRICULTURE: New Business Start Ups

•green house agriculture for short and medium term crops

•aquatic farming

•tropical fish rearing

•livestock rearing

•ARTS, ENTERTAINMENT AND CULTURE

Government needs to assist in developing a caravan of top local entertainers as part of a national plan to showcase the local entertainment industry on a regular basis. The programme should be year round and be staged at top international venues. In addition, music scholarships in schools where music should be part of the curricula must be implemented to ensure the growth of this pool of entertainers.

•TAXATION: Value Added Tax (VAT)

•Remove VAT and replace it with a lower non-refundable consumption tax of five percent at the point of sale or transfer.

•Delay in VAT Refunds: Another sore point with the administration of VAT is the great delays in receiving refunds especially for the manufacturing sector. This situation creates a cash flow problem for many manufacturers and reduces their competitiveness.

•ACCESSING PHYSICAL SPACE: E-TECK PARKS

It is critical to assist business start-ups and existing businesses in their plant and warehousing space. Several areas in E-Teck parks remain idle.

The GTCIC proposes the introduction of a “peppercorn” rent for a five-year period to assist in the start-up and growth of these businesses. In the case of established businesses, the opportunity to accelerate growth may be much more rapid and would serve to propel the positive activity of the economy.

Manufacturing, service industries and the distribution trades will all benefit. The need for an immediate long-term mortgage will not be necessary and serve to attract many business operators.

•CRIME

It is essential for the Government to tackle the scourge of crime. No incentive or financial stimulus will be able to reverse the negative effects of crime if the current spate of crime continues.

Some of the recommendations that may be implemented:

i. The shortfall of 1600 officers can be reduced by at least 400 persons who have just retired from the Police Service. These persons can be contracted to perform more administrative functions.

In addition, their experience will ultimately raise the bar in terms of experience. Also the use of National Maintainance Training Services (MTS) which possesses over 5,000 pre-cepted officers to support the Police manpower shortage.

ii. More vigilance is required by integrating the use of closed circuit television (CCTV) for identifying crime situations in the main crime “hot spots”.

Encouraging duty free and tax free hardware for both domestic and commercial users of security equipment.

iii. The expansion of a community policing unit is essential to detect crime and emerging deviants in our communities.

iv. Acceleration of the course of justice.