BUDGET STATEMENT 2014
15
SUSTAINING GROWTH, SECURING PROSPERITY
Indeed, regular assessments of the financial
and operational status of public companies are
required by all stakeholders if private confidence
and trust is to reside in the operations of those
companies. Our state enterprise sector should
do no less as they disengage themselves from
borrowing with Government guarantees.
I propose to make allocations over the next 3
years to selected state enterprises to undertake
independent credit ratings, which would prepare
thoseenterprises for accessing thedebtmarkets
based on their own credit worthiness. I expect
that the requirements to improve their ratings
and the regular evaluations by an independent
entity on an annual basis will assist in enhancing
the quality of governance and performance
within the sector.
CARIBBEAN AIRLINES LIMITED
Mr. Speaker, Caribbean Airlines Limited must
move towards the adoption of a financially
sound business model for positioning the airline
in targeted segments of the global tourism
market. The new Board of Caribbean Airlines
Limited has completed the first phase of a
revised Business Plan for the airline to achieve
financial viability. To this end, effective October
1, 2013, I propose to discontinue the fuel subsidy
which the airline currently enjoys. The subsidy
for the Tobago airlift will remain. These factors
have been incorporated into the business plan
which I expect to receive on September 17 2013.
I have been assured by the Board of Caribbean
Airlines Limited that the removal of the fuel
subsidy will not impact the ticket pricing policy.
EXPORT-IMPORT BANK OF
TRINIDAD AND TOBAGO
Mr. Speaker, as we diversify our economy
towards a buoyant export manufacturing and
industrial sector, our Exim Bank must become
relevant to our objective of export-led growth.
The Exim Bank, as it does in all advanced and
emerging and developing countries, must
focus on the financing of exports and turn
export opportunities into real sales which
will create good-quality jobs in an expanding
national economy.
The World Trade Organization (WTO) estimates
that 80–90 percent of world trade is crucially
dependent on trade finance, largely of a short-
term nature in the form of trade credit and
insurance and guarantees. The restructuring
of the Exim Bank is urgent. It must play a
developmental role.
Mr. Speaker, I propose to re-capitalise the EXIM
Bank with equity injections over the next 4 years
to allow the Bank to finance exports into extra-
regional markets at a reduced cost of funds to
facilitate the process of developing our export
manufacturing sector.
STATE ENTERPRISE SECTOR
Mr. Speaker, we must raise the bar as far as
the performance of our state enterprises
is concerned. In advanced, emerging and
developing countries, ratings assessed by
credit rating agencies are critical requirements
for accessing capital whether that capital
emanates from the stock market or from
financial institutions.
