Delay in Government’s Development Programme will compound negative effects on local contractors who are already owed over $1 billion by the state, according to T&T Contractors’ Association (TTCA) chairman Mikey Joseph.
Joseph spoke to the T&T Guardian yesterday after Finance Minister and acting Prime Minister Colm Imbert said on Thursday that falling oil prices could delay “one or two things” including Government’s Development Programme. The latter includes schools, roads, bridges and similar plans. Imbert said the oil price situation was cause for serious concern and was being monitored “all the time” by Government.
In expressing concern yesterday, Joseph, however also said the situation presents an opportunity for innovative solutions.
“It would be good if the minister opens his doors to us to meet quickly on the situation and work something out so we don’t have to reach to a crisis or breaking point on the matter,”
Joseph said the economy is already under pressure as the principal income generator—the energy sector—is “ stuttering”.
He said while the contracting industry hopes the development programme delay won’t occur , he acknowledged that the first to suffer in an economic depression is construction. Joseph said in such situations governments usually sought to maintain wage bills, and prioritise essentials like health and education.
He said it is recognised that any delays would mean fewer projects and quite a few contractors would have “further hardship,”
“Already there are concerns by members about nonpayment by state agencies and we’re seeing the mounting failure of agencies—from projects managed by Nidpdec, EFCL, Udecott, etc—other agencies which are not making payments. Sums owed to contractors are crossing the $1 billion mark, so the situation (on development programmes) presents some complications,”
“But there could be great opportunity for the local private sector and government through adjustment of laws governing financial institutions act to keep local contractors employed in the housing sector, where perhaps government could provide the land and houses could be built through a programme where monies will be recovered when tenants repay. One can look at schools in this context also and there’s other infrastructure that can be handled like this,”
Joseph said of primary concern was the need for Government to use local resources so that foreign exchange can be preserved and locals maintain employment.
Arising from the challenge ahead, he said some companies may now also have the opportunity to use the resources they have acquired from state contracts to go and seek work outside T&T and outside of Caricom “and it’s a time when those sectors could use what they’ve gleaned from the past to continue to sustain in the future and for national sustenance also.”