Former Planning Minister Dr Bhoe Tewarie said the People’s National Movement (PNM) government made the right decision not to purchase the ArcelorMittal steel plant at Point Lisas. The global steel giant, which government said has a debt of some $3.3 billion, has sent home its 644-plus work force and is winding up its operations in T&T, citing a worldwide fall in the price of steel.
Speaking at an economic forum hosted by the Penal/Debe Chamber at FunSplash, Debe, Tewarie said the greatest tragedy of the ArcelorMittal winding down story is the impact is it having on the workforce. However, he said, this has provided an opportunity for the T&T Electricity Commission ( T&TEC) which was providing electricity at a considerably lower price than it was paying TGU Unlimited.
Responding to questions about the repercussions for T&TEC now that its largest consumer has shut down operations, Tewarie said the electricity company was providing an abundance of electricity to Mittal at a loss.
“And now, we have that abundant supply to be provided elsewhere in a more competitive environment. My own feeling, from T&TEC’s point of view, is this is an opportunity.
“I mean, which sane government is going to buy a plant and carry a debt of $1.3 billion, which I heard the Minister of Finance Colm Imbert say is closer to $3.3 billion? It makes no sense to do that and I think they made the right decision.”
Speaking at the same forum, Trade and Industry Minister Paula Gopee-Scoon said there should be no concern about repercussions for T&TEC. She said there are a number of large replacement projects coming in for consideration.
“Large projects utilising electricity as well as positioning the economy on the way forward,” she added.
The Steel Workers Union (SWUTT) which represents the displaced ArcelorMittal workers, said two private investors are willing to purchase the plant. However, they have not been able to secure a meeting with the steel giant to explore the proposal.