UWI Don- Renewables thrust impeded
UWI professor of physics, Dr Indra Haraksingh told a webinar hosted by the National Institute of Higher Education, Research, Science and Technology (NIHERST), and the Association of Professional Engineers of T&T (APETT), titled “Finding Solutions to Engineering Challenges” that the push towards renewable energy is promising but to achieve its goals the country must get out of its own way.
In session Three of the webinar “Sustainable Energy – Challenges Vs Rewards” she highlighted and praised specific parts of the roadmap for a green economy, saying that in some cases the transition would not just be ideal but ultimately required. However, she questioned the decision to suggest offshore wind plants as the best option and agreed with Prime Minister that the transition would be challenging.
“The IDB collaborated with the Ministry of Energy and Energy Industries, and National Energy and they actually came up with the best option for T&T, which was offshore wind and there are reasons for that there’s large potential, but for me, my recommendation will still be solar and wind even on land. The thing about offshore is that the potential is very, very high. But working in a marine environment is very difficult and can be very expensive,
“The second point that I want to make. The Prime Minister again (said), a review of the country’s power requirements has projected peak demand to increase from 1400 megawatts in 2022 to 1600 megawatts in 2032.
“During this period, the PPAs (Power Purchase Agreements) have two of the country’s major independent power producers representing 40 per cent of the country’s installed generation capacity are due to expire. So he is saying we, therefore, have an opportunity to achieve much of our target of 30 per cent of power from renewables. It’s kind of riding on a sad thing, but okay, he is looking at that, but he is still saying that however, the transition to renewables is not without challenges, and we all very much are aware of that.”
Like the Prime Minister at the energy conference, she noted that the cheap cost of electricity would serve as one of the hurdles to reducing emissions and the embrace of greener or renewable energy as she assessed the difficulties in changing the psyche of the public.
“One of the major problems in T&T, because our electricity is so cheap, is a lot of waste and a lot of inefficiencies in our operations. And energy efficiency is something that we need to learn about if we don’t know to change our mindset and our habits in operations. …, simple things like turning off the lights, turning off, air conditioning,..are all leaning towards energy efficiency. They’re all energy efficiency measures,.”
The UWI don and senior energy analyst at the Ministry of Energy, Craig Boodoo agreed that the potential returns for this country as it advances the process of energy transition could be immense. If all goes well, the country could find a new lane of significant revenue in hydrogen production.
“If we can realise at least even 12 gigawatts of that potential (from wind plants), we can go into the green hydrogen into a very worldwide scale basically we could produce as much hydrogen as we are currently producing for natural gas right now,” said Boodoo.
Boodoo and Haraksingh agreed that TT would have to utilise the fossil fuel market for the short to medium term.
“T&T has to be hybrid for quite a while. Other parts of the world may be moving towards 100 per cent. But it will still be hybrid. Barbados and other islands, are moving towards 100 per cent clean energy and electricity generation and they will probably achieve it there. Their needs are not as high as here in Trinidad because we are so industrialised,” said Dr Haraksingh.
“Definitely short term and medium term, fossil fuels will not be going anywhere. So it’s going to be a hybrid,” said Boodoo, who said it was crucial to maximise income generated from natural gas and ensure it is properly invested.
“It’s very important for us to get fossil fuel out of the ground now, use it and reinvest into renewable energy and re-invest in the people so that we can.., continue to live fairly comfortable lives. Some people say they have it hard but we actually have fairly comfortable lives in Trinidad,” said Boodoo, who explained that many other countries were not in a position to make use of these resources.
Boodoo said there were opportunities for citizens to benefit, as through a UNDP arrangement, residents who install solar panel roofs could not only aid in the transition but get a return on their investment through payments from the UN. These payments could potentially repay their costs incurred within five to eight years, while they have a power source that is valid for 30 years while helping the transition.
Dr Haraksingh felt T&T was well-placed to achieve the goals identified in the National Development Strategy.
“This is why the outlook for development,.., of renewable energy is promising and attainable. We recognise that renewables cannot in the near to medium term replace oil and gas and.. that’s what we have been saying, but not that we are not going towards renewables, long term strategies that promote renewable energy and energy efficiency are necessary to attain that carbon neutrality that we are talking about. And low carbon technologies must be competitive in order to facilitate this transition. And ..we have good hope for renewables and I would like to see people moving in that direction, and we are there to help,” said the UWI don.
Managing director of Renewable Energy Supplies and Servies Co of T&T (Resscott) Graeme Jones also felt there were good signs for transition as he noted the cost of solar has reduced significantly in the past 10 years, while there had been significant breakthroughs and improvements in technologies regarding power storage which could increase energy efficiency. It was simply up to the public and industrial sectors to make the change.
Landfill waste to power TCL kilns
Trinidad Cement Ltd, TCL signed a memorandum of understanding (MoU) with The Solid Waste Management Co Ltd (SWMCOL) at the Ministry of Public Utilities, to reduce the large volumes of plastics from the Beetham and Forres Park landfills and use that waste to power TCL kilns for producing cement.
Ronald Milford, SWMCOL chairman, said the MoU serves as an example of eco-innovation that facilitates waste diversion to energy conversion and environmental protection.
“Analyses on the viability of this possibility are to be conducted over a period of one year and will guide any terms of reference, contractual frameworks and binding agreements as considered necessary.”
TCL general manager Guillermo Rojo de Diego said the process to be used is co-processing, a safe practice, proven in Europe and other countries worldwide.
“To reduce our carbon emissions and achieve our 2030 and 2050 goals, we are concentrating on increasing the use of alternative fuels instead of regular fossil fuels, powering our kilns with the waste while also providing other benefits for the environment. Alternative fuels are a by-product of humanity which otherwise ends up in landfills.”
He said if the waste remains in the landfills, when it is composted by burning it releases methane, greenhouse gas emissions and carbon dioxide 80 times higher than what is used in the kilns.
“Co-processing is the more efficient waste-management solution than a landfill or incineration and the main reason we wanted to highlight this is because it’s safe. When that waste that has some calorific power is dumped into our kilns at 1,500 degrees, most of the harmful substances are destroyed and then we have the filters that control the emissions that are going out there.”
This partnership needs investment, as the kilns are already operational, with a solid flow of waste coming in constantly and 200,000 tonnes of waste already available.
“Additional good news for NGC (National Gas Company) is that we would release gas that NGC can put elsewhere.”
SWMCOL signed a MoU with NGC in 2021 to identify and quantify methane emissions from existing landfills and determine how they can be used as a source of alternative energy. In 2021, NGC said captured methane emissions can potentially be used to fuel the SWMCOL fleet of vehicles and other government vehicles.
Public Utilities Minister Marvin Gonzales said this step will help TT achieve its goal of reducing greenhouse-gas emissions by 15 per cent by 2030.
“In addition.., we will be able to witness and analyse, first-hand, private-sector investment in the environmentally sound management of waste oils.”
Gonzales said the ministry is considering establishing an engineered municipal solid waste (MSW) landfill at Forres Park.
“We are currently engaged in the first phase of that project, which involves the execution of technical, financial, social, environmental, and economic studies. These studies, once completed, will not only determine the feasibility of this project, but the shape it will take, and the mechanisms and infrastructure used to develop and maintain it.”
The ministry is currently amending the draft National Integrated Solid Waste Management Policy, draft National Waste Recycling Policy, and draft Beverage Container Deposit Refund Policy, to be submitted to Cabinet, having completed its stakeholder consultations.
A just energy transition: Advocates for renewables policy
The trend to pivot from fossil fuels to renewable sources of energy is not only a global movement but a necessity for life. TT is among 197 signatories devoted to reversing the effects of climate change through the Conference of the Parties to the UN Framework Convention on Climate Change (COP) initiative, established 27 years ago. Balancing the overall desire for a cleaner planet and the macro- and micro- needs of each nation is no easy task. Policies that could solve one problem could have unintended consequences with an equally damaging effect on lives and livelihoods.
This is where just-transition policy comes in. This strategy ensures that no group is left behind while restructuring to a more sustainable society. Every nation putting policies and strategies in place to achieve the inevitable goal of global energy transition must be serious for these policies to work .
carrot and stick
Luca Corradi, director of the Net Zero Technology Center in Aberdeen, Scotland and Kishan Kumarsingh, head of multi-lateral environmental agreements in the TT Ministry of Planning and Development said there were many ways that policymakers could ensure that country and parties that sign on follow these policies which include a “carrot and stick” element. During the 2023 Energy conference on January 23-25, Corradi lectured government officials on just-energy transition policy.
He said the North Sea Transition Deal – a plan between the UK government and the epetroleum industry to collaborate to transform the sector – was a good example of a transition policy with teeth.
In the plan – aimed at reducing operation emissions from production of oil and gas in UK industries – companies commit to reduction of emissions by 50 per cent by 2030, 90 per cent by 2040 and to reach net zero by 2050. Policymakers prescribed strong measures as they established the North Sea Transition Authority, a government agency which kept the policy and signatories on the right track.
“It is a collaborative conversation but it is also able to impose fines, and even revoke the licence to operate for companies that do not comply with the policies.”
Policies can act in different ways – through enforcement and banning and through incentivising and stimulating discussion and debate. The UK government’s policy decision in 2018 to ban the export and sale of internal combustion engine (ICE) vehicles from January 1, 2030 is another good example.
“It was placed about 12 years in advance, and that gives an element of certainty to industries that in a reasonable amount of time they should change the marketing strategy, as there will be a new market. That policy was a massive stimulus for companies to develop better cars and as a consequence saw the reduction in the cost of EV batteries, motors, etc.”
Kumarsingh said that incentives such as the reduction of taxes on electric vehicles were incentive-based assertions by the government that encouraged the adherence to transition policy.
“A ‘carrot’ could be incentivisation – fiscal and otherwise. It is generally viewed that any subsidies or fiscal incentives for clean energy, if you internalise the social and environmental costs, are not viewed as perverse subsidies (a waste of money), it is considered money well invested.”
Part of the “stick” for local policy in energy transition has to be in the form of legislation to support the policies put in place, especially as TT has historically had a problem with enforcement of policies. While legislation can keep the policy on track, the policy itself, the plan for which the nation has to move forward, must be put in place first.
Elements of a just-transition policy
When conversations about just transition began in the 1990s, it was less of an environmental issue and more of a union issue. American trade unions began developing the idea of just-transition policy as a means of support for workers who had lost employment because of environmental protection policies. With the introduction of the Paris Agreement and COP, just transition evolved into an exercise in ensuring that the benefits and the burdens of transition are distributed fairly.
“The point is we try to understand and steer the ship in a way that doesn’t leave anyone behind and doesn’t create additional problems,” Corradi said.
For every country considering transition policies and implementing them in a just manner has to examine three things – the first of which is each country’s starting point.
“What makes the emissions in each country, how are people employed and what are the basics of society in that country are some questions to ask.”
The destination or end-goal of the policy is another key element. Each nation has to imagine the long-term future of energy transition, imagine the elements of that future and build policies to reach that end-goal.
The most important element in making an energy-transition policy just is how to get to that destination point. This has a high element of engagement with people so that the policy is being built with the people rather than being imposed on people.
“That part is complicated. It requires awareness, education, listening, co-ordination, and with regard to destination we won’t really know the place, and things change along the way. That is why the process is also important – to make it fair.”
Kumarsingh, who leads the Ministry of Planning in its collaboration with other members of the COP initiative, said that when dealing with international policies such as the Paris Agreement and policies arising from COP, the international policies are bolstered by each nation adopting the policies into its own domestic framework.
“The efficacy of international law ultimately is a function of political will at a national level. How you translate your international law into your domestic framework is a process as well. For us here, the process is first to set the policy basis.”
Kumarsingh said that TT is the first Caribbean country to submit a just-transition policy to the UN Framework Convention on Climate Change, the core body which convenes the annual COP meetings. The draft policy before Parliament, aims to achieve the ultimate objective of slowing climate change and reducing carbon emissions including the development and pursuance of low-emission development strategies (LEDS).
“Guiding principles for the development and implementation of these plans are a part of the Paris Agreement, including a just transition for workers that may be potentially affected in the shift of development paradigms. The recent report of the Inter-Governmental Panel on Climate Change (IPCC)3 underscores the need for urgent action by all countries if the objectives of the Paris Agreement are to be achieved,” the policy said.
In the TT transition policy seven objectives were established based on situational analysis. These include:
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- supporting new low-carbon industries, business models and entrepreneurs;
- encouraging investment in low-carbon technologies and pathways that will benefit the nation as well as strengthen financial frameworks for clean-energy projects;
- developing and enhancing existing support measures for workers affected by transition policies, including upskilling and reskilling employees to make them competitive when applying for low-carbon job opportunities;
- ensuring gender equality is upheld and low-income families and less favoured groups of society are included by designing sectoral actions and financial-incentive mechanisms as well as developing measures to support vulnerable and marginalised groups.
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The policy was largely driven by the Paris Agreement to which TT is a party, for the collective responsibility for reducing increasing global temperatures caused by carbon emissions.
The Paris Agreement identified the need to reach net zero. Kumarsingh said, “If you want to manage climate change in the long term we have to get to net zero – economies have to be reconfigured and industries will have to be restructured.
Technologies will have to be re-engineered. It is a scientific fact. All countries are obligated to do that.
The Paris Agreement says you must do it in a way that takes into consideration a just transition. When you do that transition and you analyse the trajectory you can get a sense of what the consequences would be.
Transition must be such that any of those consequences be managed in a way that no one is disenfranchised. No one is left behind.”
Mutual commitment – the best strategy for transition
Kumarsingh and Corradi agreed that ultimately, the best way to ensure adherence to any policy, is to ensure the mutual commitment of every stakeholder and party involved. If a policy is fair and just for all parties involved, it would not require too much enforcement. Kumarsingh said,
“If a policy is well designed then it should have ownership by all, then implementation shouldn’t be difficult.”
While the idea that each party would be equally willing to adhere to policies would be utopia, it is necessary for people to begin thinking that way. With COP there is no regulatory body that would police countries signed on to the agreement.
“All countries have signed on, but there is no police that could lock up a state and to be subjected to any penalty you have to agree to be subjective.”
While this strategy could make implementation long-winded, for global initiatives such as those established by COP and the Paris Agreement it would be necessary to ensure a balance between achieving the global objectives of reducing carbon emissions and addressing the individual agendas of each of the COP signatories.
“But policies have different levels of intent, objectives and aims. It varies from very critical expectations to softer frameworks.
It depends on where you sit. Implementation could still be a problem, but if it is diffused between every agency involved, then it should not be that there would be much of a need for a big stick. The point is that with the current climate, we have no choice to be serious; to be otherwise would be to our peril.”
Shell, BP bands at Panorama
Port of Spain steelband BP Renegades remain champion of 2023 Panorama , scoring 283 points.
Shell TT country chair and vice president Eugene Okpere and bpTT president David Campbell seem to shake on a bet of which band will win Panorama, Shell Invaders or BP Renegades, during Invaders sponsor’s night at Queen’s Park Oval, Port of Spain on Wednesday. – Angelo Marcelle
As Shell Invaders performed their Panorama tune for fans of all walks of life at the Queen’s Park Oval, Port of Spain, country chair and senior vice president of Shell TT, Eugene Okpere expressed every confidence in his band’s success. Invaders placed fifth in Panorama semi-finals, moving on to the final ahead of defending champions Desperadoes. Speaking to sponsors and guests, Okpere said the night was to celebrate the first open Carnival since the covid19 was confirmed in 2020 and to celebrate Shell’s long history with Invaders, which gained sponsorship from the petroleum giant in 1960.
Okpere welcomed David Campbell, president of bpTT, whose company sponsors BP Renegades to the show and who had confidence in his band.
“I know that the Invaders and the Renegades have their own rivalry. But we’re not complacent. I am sure that we will keep practising for the competition from Shell Invaders certainly but also Exodus and the All Stars, they are all very good. So we can’t be complacent and I know the players won’t be.”
This being Campbell’s first Carnival, he expressed enjoyment toward steelpan.
“I’ve been to the panyards to watch them practise and they are very good. I am also really enjoying the culture associated with the music. I am really glad that the Renegades moved on to the finals.”
Okpere welcomed the Prime Minister, supporting the band, in an Invaders T-shirt.
British High Commissioner Harriet Cross was amazed at the energy and the vibe during the season.
“I am loving every bit of it. There is so much energy. That is what I love. I have been here for two years without any Carnival so I am also feeling the joy of the citizens of TT to have their Carnival back. It’s infectious.”
Her favourite song for the year is Kees Diefenthaller’s Mental Day.
“There just something about it that appeals to me.”
Debt-ridden Heritage sponsors Skiffle steelband 9 days after media reported Heritage Petroleum Company Ltd refinanced the US$975 million debt of Trinidad Petroleum Holdings Ltd (TPHL) CEO Arlene Chow signed an agreement for sponsorship with Skiffle CEO Junia Regrello, mayor of San Fernando.
The ceremony was witnessed by chairman Michael Quamina who said, “ I have a fairly decent relationship with Skiffle and …..the company is committed to continuing relations with Skiffle for a period in excess of one year. We are prepared to make a fairly long term commitment to this band which has done yeoman service. This is an opportunity to give back into the community.”
Quamina said he heard criticism of Heritage predecessor Petrotrin for involvement in so many other ventures, apart from its core responsibilities that resulted in its restructuring.
“It is a valid criticism, but this is not a question of us having our hands in different pots. We are in the energy industry and that is our core business.”
Sponsoring bands was an opportunity for Heritage to engage in corporate social responsibility (CSR).
“You won’t necessarily see us sponsoring fetes. What you will see us engaging in, are very worthwhile endeavours like this and we are happy to do so. It is a very important aspect of our business.”
Heritage sponsors Siparia Deltones, which is in partnership with Machel Montano. Quamina said it supports Deltones agricultural enterprise.
“Venturing into the pan side was new but we consider the contribution to the community of Siparia to be extremely worthwhile. We do envisage that relationship will continue as well.”
Asked if the long-term commitment to the two bands was an indication of the company’s healthy position, Quamina responded, “I am sure you read the papers and I am sure you see how well Heritage does. As long as the oil prices remain where they are I don’t see a difficulty in that.”
While he did not go as far as saying the arrangement with Skiffle, “was a marriage made in heaven, it is a marriage we are happy to venture into and we look forward to a long relationship.”
Obituary
Wilfred Sidney Knox 1925-2023
RAF veteran Sidney Knox finally reached the end of a long road after 98 years.
Historian Gerard Besson and others regard Knox as “the most outstanding businessman in TT in the latter half of the 20th century”
A larger-than-life figure who has left a similarly giant legacy. His imprint is strongly evidenced by the continued success of the Massy Group. He joined Neal and Massy in 1953 under Charles Massy and later became synonymous with the conglomerate. His intangible managerial sensibility had the greatest impact on regional commerce.
“There cannot be any doubt that Mr Knox’s business model for expansion and his pursuit of quality service and best practices in management in Trinidad and Tobago and the Caribbean were of significant importance,”
Mr Besson stated in a 2012 publication marking the country’s 50th anniversary of independence. Among the founders of the regional conglomerate, Knox worked towards the creation of the Caribbean Free Trade Association (Carifta), precursor to the Caricom single market but it was not a straightforward path to business.
Knox, born into a family whose ancestors include cocoa planters and a chief justice, William George Knox, served in the Royal Air Force during World War II. Returning to Trinidad, he worked for JB Fernandes and Ray Lange, according to a 2011 biography by Robert Clarke. His influence is illustrated by his role in opening a vehicle assembly plant, a milestone in industrial progress. He was able to fend off the possible nationalisation of Massy assets in Guyana under the grasping claws of the notorious tyrant, Forbes Burnham.
The TT Chamber of Industry and Commerce noted the burly business pioneer, known as “Bullmoose,” played a transformational role during the recession that began in the 1980s, including guiding Massy restructurings in 1984 and 1994 and during the trade liberalisation period when Massy’s motor assembly plant was shut down. Knox was a strong advocate for business transferring knowledge in education settings. For fellow businessman Arthur Lok Jack, he was a patriot.
“He believed TT would go forward,” Mr Lok Jack said . His faith matched his ambition.
Knox once mused, “There is risk in expansion. And there’s also risk in not expanding. The easiest thing is to remain small, have a nice salary and retire happily and never take a risk. That’s one alternative, but it’s not my road.”
Legendary businessman Sidney Knox
Feb 07 2023
The Massy Group extended condolences to the family, friends and colleagues of former Massy Chairman & CEO Knox who died today.
“Mr. Knox worked under the tutelage of Charles Massy, one of the founders of the Neal and Massy group and held various positions rising through the ranks, from sales representative to joint managing director and later to Chairman and Chief Executive Officer of the Group. He was incredibly proud of Massy’s 100th anniversary and viewed the recent celebrations with enjoyment and pride.
“In its formative years, Mr. Knox also served as Deputy Chairman at the UWI Institute of Business (now Arthur Lok Jack Global School of Business) bringing considerable depth of experience to the institution. He will be remembered as one of the outstanding business leaders of his time.”.
Knox is credited for transforming Neal and Massy into a Caribbean conglomerate.
“It was Mr. Knox’s leadership and persistence that led to the Group’s sustained investment in Guyana over 50 years ago. He was also responsible for expanding Neal and Massy’s footprint across the Caribbean region and strongly supported the creation of the Caribbean Common Market (CARICOM).”
President and Chief Executive Officer, Massy Group, Gervase Warner, stated
“Sidney was instrumental in the growth and expansion of the Group. He was the longest serving CEO and Chairman of the Group. There’s a lot of what we have inherited for which we are eternally grateful to Sidney. May his giant soul Rest in Peace.”
Knox was inducted to the T&T Chamber of Industry and Commerce’s Business Hall of Fame in 2006.
The T&T Chamber of Industry and Commerce said “Knox, familiarly known as ‘Bullmoose’’ was a powerhouse of T&T’s business landscape; one who played a transformational role particularly during the recession years of the 1980s.”
As a volunteer for World War II, “Mr Knox was the last T&T surviving veteran of the Allied Forces who battled against Nazi Germany. He worked diligently from the bottom up, ‘from scratch’ as he would have described it, to many prominent roles.”
T&T Chamber President Charles Pashley said, “Our thoughts and sympathies are with the bereaved at this time of sorrow following this tragic loss of a stalwart who has helped shape not only the business community but contributed to the holistic development of T&T.”
Debt to Sidney Knox
Former finance minister Wendell Mottley acknowledged that Trinidad and Tobago owed a great debt of gratitude to deceased businessman Wilfred Sidney Knox, Knox should be appreciated for his persistence in the development of the Point Lisas estate.
“This country owes him a huge debt.”
After Knox, 98, died on February 7 the business community recollected his years as a visionary. He was instrumental in the local and regional expansion of Neal and Massy, now the Massy Group.
Mottley was among other former politicians Ken Gordon, Winston Dookeran and Rocky Garcia at the funeral at the Church of the Assumption, Maraval.
Knox’s granddaughter, Cristina Legarza, eulogised the World War II veteran, telling mourners that Knox was an “amazing man” and his ability to help others was his greatest asset. She too hailed him as a visionary.
At the end of the funeral, Knox was honoured by the Defence Force with the Last Post, a tribute on bugles or trumpets to honour deceased members of the military.
Knox joined the Royal Air Force at 17 and became part of the Sixth Airborne Division. Last year he was honoured on Remembrance Day as one of the last surviving TT veterans who fought against Nazi Germany.
When he returned from the war, instead of becoming a commercial pilot, he entered business, working his way up to managing director of Neal and Massy. He used his piloting skills to fly business clients across the region during his vision to expand the company. In 1991 he was awarded the Chaconia Medal Gold for business and he was inducted into the TT Chamber of Commerce Business Hall of Fame in 2006.
ECO salutes this icon, survivor of WW2, collapse of the West Indies federation undermined by Jamaican tribalism, flawed “independence” for aid addicts, agonies of blackpower racism, trauma of mutiny, frustration of unimaginative Caricom bureaucracy and the pitfalls of identity politics and reparation campaigns.
Atlantic supports schools
Feb 17 2023
LNG producer Atlantic continues to champion the holistic education of youth, with support of skills training initiatives and roll out of a solar-powered hydroponic system within secondary schools.
Atlantic assisted St Madeline Secondary School with costs of an eight-week skills programme to enabled the school population of 480 pupils to receive training and exposure in entrepreneurship, sport, dance, sewing, candle making and food preservation.
Pupils received tutoring in these and other areas for two hours weekly to provide options and experiences tailored to complement the education curriculum.
With continued focus on food security and environmentally responsible agriculture that protects ecosystems, Atlantic’s Community Environment programme will donate two additional Solar Ponix systems to Naparima College and ASJA Girls College.
The Programme teaches secondary school pupils in the company’s home community of Point Fortin about environmentally responsible agriculture, focusing on protecting ecosystems while nurturing the next generation of farmers and agri-entrepreneurs. The solar powered hydroponic system Solar Ponix is a core component of the initiative.
Solar Ponix incorporates a portable, compact design with the ability to log data, gauge temperature, light levels, electrical conductivity, and the pH of the nutrient system enabling experimentation to optimize plant yields. The system’s creator Ancel Bhagwandeen won the Innovation and Technology Challenge Award at the 2023 Energy Conference.
Atlantic Manager, Sustainability and Corporate Communications Camille Salandy said that Atlantic’s community initiatives have always focused on driving capability growth in youths and embedding sustainable skills and practices.
“By teaching young people in-demand skills and how to sustainably produce their own food, we are providing opportunities for their growth and development, and we are also helping to strengthen food security in the Southwest Peninsula. Our Community Environment Programme incorporates renewable technology, which broadens understanding of how to conserve natural resources, and helps to enlist more advocates for clean energy.”
Atlantic’s sustainability and environment initiatives are key areas of focus within its corporate social responsibility portfolio, which in addition to imparting conservation values though sustainable community-based initiatives, seeks to create awareness of renewable technologies, environmental protection and entrepreneurship.
NEL profit of $203M
Feb 16 2023
National Enterprises Ltd (NEL) recorded a net profit of $203 million for the first quarter ended December 31, 2022, versus $33 million for the comparative period in 2021. This continued strong performance is driven by a significant increase in dividend income of $201 million compared to $2.8 million in the comparative quarter of 2022 and a 90 per cent increase in investment income of $2.3 million from $1.2 million in the previous year’s comparative, chairman Ingrid Lashley said in the condensed financial statements.
Prevailing global ammonia prices enabled improved results from the Trinidad Nitrogen Company Ltd (Tringen), yielding a persistent and foreseeable flow of dividends to NEL for this financial year. This resulted in NEL’s net cash position having grown significantly quarter over quarter, increasing 167 per cent to $350 million in the first quarter of the financial year 2023 from $131 million at the end of the last quarter of the previous 18-month period ended September 30, 2022.
Lashley said, “As we continue to operate in an economic environment that is evolving from economic and market uncertainty, we remain focused on seizing the opportunities for optimising returns for our shareholders. For this, the Board will consider quarterly dividends to shareholders for the financial year ended September 30, as inflows permit.”
Quarries
Geological Society of TT
Quarrying is characterised as “A missed opportunity” in the TT Extractive Industries Transparency Initiative’s (TTEITI) State of the Extractive Sectors 2021 Report. This statement and others therein, sound a crescendo in the symphony of negative publicity surrounding the industry in past decades.
While it may seem that quarrying is not a prominent feature impacting the nation or the day-to-day goings-on of citizens, many comforts and lamentations tie into the sector – paved or unpaved roads, reasonably priced building materials or drinking a beer with friends. Perhaps the indifference stems from the fact that the oil and gas sector has been, and continues to be, the primary revenue-generating extractive industry of TT, dwarfing the minerals sector in both scope and scale.
The CSO’s 2007 Report on Environmental Statistics set out that the combined construction and quarrying industry accounted for approximately $22.5 billion of GDP in the five-year period between 2000 and 2004, or 7.5 per cent of GDP generated for the same period. This made it the fourth highest in that period behind petroleum, distribution and finance/insurance/real estate.
Recent figures, from 2012-2021, show a steady decline in yearly contributions of the combined sector. The TTEITI report highlighted losses due to unpaid royalties of an estimated $193 million spanning from as far back as 2005. Further estimates indicate that over $800 million may be owed to the government in taxes and other revenue.
While statistics show that other sectors generate more direct revenue, it would be remiss to consider this the sole measurement of the industry’s importance. A more nuanced assessment can shed light on the socio-economic stimulation rooted in the construction and building materials manufacturing sectors, which rely heavily on raw material inputs derived from quarrying.
To this end, it is necessary to highlight the far-reaching and integrative scope of participants in the minerals sector tasked with carrying out quarrying activities. Areas such as mineral exploration, mineral exploitation (mining or quarrying), mineral processing, the manufacturing of mineral-based products, mineral trading (import and export), transportation and machinery (supply, sales and other services), land management (including land rehabilitation) and other professional services such as consulting, management, accounting, surveying, geological, engineering, legal and financial, which are all crucial to the sector’s overall functioning.
Which begs the question, what is quarried in TT and what is it used for? As for active quarrying, in Trinidad’s Northern Range, “blue” limestone of the Maracas and Maraval formations are blasted and extracted for use in various applications such as concrete, cement, cement blocks, agricultural lime, shoreline defence, roadworks, landscaping, and architectural deco-stone.
Terrace sediments, a term referring to the naturally occurring interbedded deposits of sand, gravel and clay, which are quarried at the foot of the Northern Range in northeast Trinidad, represent prolific construction aggregate deposits in that region, spanning Arima to Matura and encompassing Sangre Grande, Cumuto and Valencia. These sediments are separated using rudimentary trommel washplants in smaller operations, or more sophisticated “separating” plants in commercial operations such as Trinidad Cement Ltd’s processing facility. Products are sold as single-size aggregate or mixed aggregate and are utilised in the construction sector as a sub-base (foundation) for roads, raw material for concrete, fill material and finishing materials in construction, among other uses.
Limestone of the Maraval formation being used as a base material before application of asphalt.
The limestone deposits of the Northern Range can be interpreted as ancient reefal assemblages which underwent uplift and metamorphosis during the formation of the Northern Range, whilst terrace sediments were deposited due to a combination of proto-Caribbean sea level rise, uplift, and erosion of the Northern Range itself.
In Central Trinidad, Pleistocene sea-level changes and resultant deposition led to concentrations of “plastering” sand of the Sum Sum sand member, which is quarried and used as a low-grade fill material and as a construction finishing material. Yellow limestone of the Tamana formation, locally known as Guaracara limestone, is also quarried in the Central region and used in road construction and the manufacture of Portland cement.
In the southern region, “oil sand” and asphalt have been quarried extensively for decades.
Clay, the most abundant and extensively utilised non-petroleum raw material, is found throughout TT, and is extracted and primarily used in the production of blocks, tiles, and pottery.
In Tobago, andesite is blasted and extracted at the Studley Park Quarry where it is processed into single-sized and mixed aggregate used in roadworks, construction, shoreline defence and many other applications in Tobago, Trinidad and throughout the region.
The number of quarries within the sector was highlighted by the chairman of the TTEITI Steering Committee, Gregory Maguire, who, during a March 2022 webinar addressing challenges in the mining sector, indicated that “there are 88 known quarries, with only eight being fully licensed.”
These critical contributions to the overall growth and development of society do not mean that the minerals sector is without challenges. Cursory investigations of published media on the sector reveal instances of death threats, arrests and equipment seizures, interspersed with interventions made by police, governmental and regulatory bodies, along with attempts to address climate-related and environmental challenges faced in the industry.
The Green Paper on Minerals Policy compiled by the Ministry of Energy and Energy Industries (MEEI) in 2014 highlighted less-than-acceptable health and safety standards and practices in the sector. Low sector-specific education and training levels of participants, outdated regulations coupled with an absence of effective enforcement mechanisms in the Minerals Act failed to address illegal mining and ineffective royalty computation and collection frameworks. In the October 2022 budget, the Minister of Finance, Colm Imbert, stated,
“Illegal quarrying not only cheats the state of revenue, but it encourages criminal activity and poses a clear and present danger to the environment.”
Over the years, the spread of illegal quarrying has become increasingly difficult to monitor, owing in part to the incredible ease with which such operations can be established in remote locations with just machinery, trucks, and an unskilled workforce staffed primarily by surrounding residents for whom alternative suitable employment may not be attainable. These considerations create a cycle that disincentivises reporting to the relevant authorities, thus perpetuating an ongoing dilemma.
Environmental challenges also plague the sector, primarily due to the lack of rehabilitation efforts among existing and defunct quarries, illegal deforestation and squatting, which are areas of concern being monitored at this time owing to their impact on biodiversity and habitat loss.
With regard to climate change and access to fresh water, there are also crucial indicators to be monitored. The vast majority of construction aggregate is produced from quarries in northeast Trinidad, an area that also receives the nation’s highest volume of yearly rainfall, making it a critical watershed for the replenishment of nearby aquifers. Quarrying, both legal and illegal. disturbs the naturally occurring hydrostatic pressures that support the flow of water into important aquifers and has led to a marked reduction in water production from nearby wells over the last few decades, as identified by researchers studying the phenomenon.
While understanding the state of affairs in the sector is necessary, it is equally important to shed light on the positive developments since the publication of the green paper. Several initiatives have been undertaken by the MEEI to rectify the issues identified, which include amendments to the Minerals Act that introduced increased fines and penalties to act as a deterrent for illegal quarrying, and moves toward implementation of drone technology to assist in resource characterisation, quantification of reserves, monitoring of state and other lands as well as computation of royalties.
The imposition of even heavier penalties for such environmentally dangerous and illicit activities is also an intention; Mr Imbert announced, “Further legislative amendments will be introduced to allow the State to levy on, seize and forfeit equipment found on-site at illegal quarries” in the budget statement. Such amendments should be introduced in Parliament in early 2023.
The eastern division of the Police Service has partnered with the multi-agency task force with an aim to eradicate illegal quarrying with several successful operations being carried out in recent months.
The collaborative work being undertaken within the minerals industry must also be highlighted. Efforts by governmental and non-governmental organisations (such as the Environmental Management Agency (EMA), Integrating Water Land and Ecosystems Management TT (IWECOTT), VetiverTT and the #IAM Movement – with funding and assistance from the UN Development Programme’s (UNDP) small grants programme) have developed programmes geared towards educating practitioners, comprising mainly unemployed and underemployed women of surrounding communities in rehabilitation theory and practice.
The ecosystem for growth and development of the sector into a significant revenue-earner for the state and a job-creation mechanism in the environmental, geotechnical and construction industries is critical to turning a new page on quarrying. As we look forward to more positive developments in the future, it is critical for those in civil society, non-governmental and community organisations to continue to participate in education, partnerships and engagement efforts that identify and highlight the intrinsic value of this sector to our everyday lives.
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Economic growth
Feb 23 2023
While economic growth is expected in 2023 and beyond, there is still much to be addressed concerning improvement of the local economy.
The Central Bank Economic Bulletin for January 2023 stated, “Economic activity is anticipated to improve in 2023, bolstered by activity in the energy sector. Key upstream energy sector projects will help to boost domestic energy sector production.”
UWI Economist, Professor Roger Hosein agreed with this assessment, and expects economic growth over the next four years.
“I’m not surprised at all because part of this growth is the reopening of the economy and part of this growth would also be on account of improved economic activity in the distributional sector. So, I expect growth to continue from 2023 to 2027 simply because the economy contracted sharply between 2016 and 2021, “ said Hosein who added this would be propelled by natural gas returns.
“We are expecting some elevated natural gas figures after 2022. And there’s a correlation of about 0.96 between natural gas production and real GDP. So I am not surprised to see economic growth in 2022, and economic growth in 2023. I expect moderate to weak economic growth from 2023 to 2027.”
While this was seen as a positive, the note that domestic inflation would continue to rise in early 2023 would continue to be onerous for workers on fixed income salaries.
“Fixed income workers would have seen between January 2014 to November 2022 an increase in the overall price level of about 31.2 per cent and in the food price index of about 67.8 per cent. Those are relatively high numbers. And so with inflation continuing to rise and potential erosion of purchasing power fixed income households would become more agitated.”
It was confirmed that the T&T Police Service accepted a four per cent wage increase after negotiations with the Chief Personnel Officer. The four per cent deal had been the only deal offered by the government but Hosein said this increase would do little to offset rising costs faced by the public.
The don noted that based on IMF projections, inflation would continue to be higher on average than that in the previous decade. He suggested that inflationary pressures could be potentially offset by further integration of the growing Venezuelan community into the formal workforce.
“If one were to look at this IMF forecasted data on inflation, one would see that for the period 2022 to 2027, the average expected inflation rate would be about 3.28 per cent. You could compare this with an average annual inflation rate of about 2.6 per cent for the period 2014 to 2019. So again, the inflation rate in the medium term is expected to be higher than the inflation rate in the period, 2014 to 2019.”
“What we need to do is to boost the supply capacity of the T&T economy. And we have about 100,000 Venezuelan workers that are unregistered. Why don’t we register them and give them more basic privileges in the economy and allow them to work? Not in a rum shop and bars and casinos and the informal sector but more in the formal sector where they can make a better contribution to economic activity and in so doing help to enhance output and by extension supply and reduce price levels in the economy.”
The Central Bank bulletin stated, “The pace of domestic recovery will depend in large measure on the extent of business confidence, and relatedly how much progress is made in improving the ease of doing business in T&T.”
Hosein felt more could be done to increase the ease of doing business in the country. However, the crime situation and the murder rate served as a major hindrance in that regard, with the fact that murders crossed the 600 mark in 2022, a particularly worrying statistic.
“Unless policymakers change and improve the governance structure within which the production function in T&T operates that murder level in my opinion, will adversely impact economic activity, by reducing the quality of labour, reducing the quantity of labour by diverting resources away from the capital formation into security and related activities.”
He said new Police Commissioner Erla Christopher would have her work cut out for her in that regard.
“I don’t think the ease of doing business measures are in place. I think we need to do much more work on doing business front. I think it is doable. I hope the new commissioner of police will make a dent in the murder level in particular so we have to see how it unfolds under her watch in the next six months.”
Also worrying to Hosein was the Central Bank’s admission that “over the short term, energy prices are anticipated to remain elevated but may experience some softening.”
He said that this would adversely affect the economy, especially given the fact the Government had based its budget on high energy prices.
“The government of T&T pitched at the highest ever assumed budgetary numbers for natural gas of US $6 per MMBtu and US Dollars $92 per barrel of oil. At any point in time, I found those numbers very high and the numbers today are definitely lower. I did a quick check and since the budget was read, the average daily price of oil has been about $78 and the average daily price of gas has been about US$4.38. Those numbers are significantly less than the budgeted assumptions and with the budgeted numbers we were expecting a fiscal deficit of about 1 billion dollars. So, with these lower numbers, we are, probably going to see an even larger fiscal deficit for the fiscal year 2023.”
The professor advised the government to continue to reduce the ratio of transfers and subsidies to capital injection, noting that while there had been some improvement in the past year, more needed to be done.
IMF expects T&T to continue growing
Feb 03 2023
At an International Monetary Fund workshop in Barbados, acting director of the Western Hemisphere department Nigel Chalk said the lesson of the pandemic is that the Caribbean has to build buffers to insulate itself from global shocks.These include managing low debt, having a flexible exchange rate and investing in international reserves.
Chalk said this makes it more possible for tourism-based countries like Jamaica to weather economic shortfalls in the United Kingdom which is predicted to have the slowest growth in Europe and therefore a populace that may be less inclined to travel to the Caribbean on holiday.
The IMF presented a more optimistic view in its World Economic Update than its October 2022 report, but it also cautioned more needed to be done to eliminate concern.
The revised focus from the IMF global report came with a specific challenge for the Caribbean to create opportunities for economic growth.
In issuing the revised global outlook, the IMF Economic Counsellor and Director of its Research Department Pierre-Olivier Gourinchas said while the economy performed better than expected since their last update in October, it was not enough to eliminate concern.
“The global economy is expected to slow this year before rebounding next year,” he said.
Speaking from Singapore, the economist, said that this update being more positive than the last may be indicative of an economy in recovery including a decline in inflation.
Speaking more specifically on the outlook for the Caribbean, the acting Director of the Western Hemisphere department, Nigel Chalk said the message from the report is that the region has to grow.
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- “We know that living standards in the region only go up when you have growth, when you have productivity.
- The challenge facing the region is, individually the countries are relatively small, and there is less economies of scale.”
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He believes diversification could address two of the biggest threats facing the region, which musto insulate itself from negative global activity and provide growth opportunities.
“You have to balance the two things right. You have to take advantage of your comparative advantage and you have to have a sufficiently diversified economy so that you are resilient to shocks.”
Specifically, in T&T with its energy-based economy the outlook is positive, even though inflation remains high and Chalk acknowledged the effects the Russia/Ukraine war has had in increasing energy prices.
“T&T and Guyana are growing very strongly and are expected to continue growing very strongly but they are also suffering from relatively high inflation which will be something they’ll have to manage during the course of the year but in some sense, it is a little easier to manage that when there is a lot of income coming in from natural resource revenues.”
As for what to do with that energy sector revenue, he says the IMF has no standard advice when it comes to how these countries should use sovereign wealth funds such as T&T’s Heritage and Stabilisation Fund. The view is they provide an opportunity to put away excess profits from high oil prices that could be withdrawn when prices fall.
This he said helps with “fiscal management with economic management.” Alternatively, it is a way for the country to replace “resources underground with essentially financial resources held in the international financial system.”
Ultimately it remains the country’s choice, because there may be a requirement locally to use the fund to address infrastructural or socio-economic shortfalls. However, if there is an excess of profits, then it would be prudent to save money for future use. All in the service of building economic resilience in the Caribbean.
“The pandemic showed us that being dependent on one industry particularly tourism could leave you very exposed when you get hit by an external shock.”
He believes the road to diversification requires an enabling environment for growth.
Chalk said “I think encouraging environment for inward investment removing obstacles like bureaucracy, creating a good infrastructure in order to support private sector investment, having a strong education system in order to provide the human capital necessary for those investors to get workers, are important.
While many in the region have solid education systems, finding solutions to the region’s brain drain is also a concern.
Chalk said regional governments ought to invest in creating an attractive environment so that people with specialist training and advanced degrees prefer to remain in the region rather than leave for a life overseas. Encouraging them to remain in the region could boost its growth potential.
EurochamTT, a Bridge linking T&T and Europe
Feb 09 2023
The European Business Chamber in T&T will celebrate its 10th anniversary on February 21.
EurochamTT was registered on February 21, 2013 as a non-profit company under the Companies Act and was launched formally on May 8, 2013. EurochamTT is registered as a Non-Profit Organisation since June 14, 2019, under the new Non-Profit Organisations Act, 2019.
Dr Axel Kravatzky said the chamber has made some headway in its thrust of advocacy, trade and climate action.
“With respect to advocacy we are trying to create a positive business climate, one of cooperation, clarity, transparency and equal trading grounds. And to support actual trade so to do missions and support both directions that may be helping people to find their way around locally as well as the other way. Given that we are in a global supply I think it is very important for people to have a touch point.”
EurochamTT has become that touch point.
“We have become somebody they can speak to, somebody that understands both the regulations within a country or within a zone or a region like Europe and also the local environment in terms of what is expected ant to improve that.”
The natural environment is a critical aspect of EurochamTT’s work.
“We have been focused on climate as a topic for the last ten years and we are now coming to the point where we would like to join with others who are also committed to the transformation of businesses to become sustainable in both recognising what has been done, celebrating the achievements and encouraging others to join and in doing so join all the other business support organisations and businesses to try and make the transition faster and on a bigger scale.”
EurochamTT has partnered with the UN T&T office in the development of an annual awards scheme to recognise the efforts of local and international companies operating in T&T who have contributed not only economically but also in terms of positive environmental and social impacts and good governance practice.
“While we are aware that use of Environmental, Social and Governance (ESG) strategies and reporting is still in very early stages in T&T, we believe there are many companies who are on the journey towards excellence. We also believe many companies will soon begin to consider how to become more sustainable and contribute to sustainable development by taking environmental, social, and governance risks and opportunities into consideration as part of their core strategies and operations.”
The world is transitioning to a net-zero, carbon free sustainable one, and Europe has been leading the way in this area.
“Doing business with European companies you are then also basically making a commitment that you really have to have these things in place. We really see it as a competitive advantage and sustainability advantage. The stronger you are in this domain the better you will perform.”
The Corporate Sustainability Reporting Directive (CSRD) will set the standard by which nearly 50,000 EU companies will have to report their climate and environmental impact. Adopted by the European Commission in November 2022, the CSRD will replace and build on the Non-Financial Reporting Directive (NFRD) by introducing more detailed reporting requirements and expanding the number of companies that have to comply.
He said this should not be daunting or a deterrent to local companies trying to enter Europe.
“In some ways we are the one stop that can advise into that pretty complex domain and so that is really opening up a lot. We really do want to encourage people along the whole spectrum to do well. Sustainability is a pretty wide spectrum with human capital, social capital natural capital and you need to make a development impact on people. What you are selling needs to have a positive impact on people or sustain or regenerate the natural environment.”
EurochamTT’s main aim with the awards are to celebrate that which has taken place already. The goal is to recognise and celebrate organisations in the private sector that have contributed to sustainability through their investments in T&T. Investments by these businesses are made with a view to contributing not only economically, but also environmentally and socially and by practising good governance. In this way businesses contribute to sustainability in T&T by supporting the achievement of the United Nations Sustainable Development Goals.
Kravatzky said these awards are not based on one particular project that an organisation has undertaken, but demonstrate organisations where the principles of good Environmental, Social and Governance (ESG) practice are integral to the way the organisation creates value across its value chain by lowering risks and acting on opportunities to positively impact people and nature so as to contribute to sustainable development.
The awards are open to nominations from companies operating in Trinidad and Tobago for more than three years prior to March 31, 2023.
Five awards will be available in the following categories:
1. Sustainability Champion – Large
2. ↓Sustainability Champion – Small and Medium Sized Enterprise (SME)
3. ↓Excellence in Environment
4. Excellence in Society
5. Excellence in Governance
Removing EU blacklist status
Responding to Naparima MP Rodney Charles in Parliament, Finance Minister Colm Imbert said government is working on addressing these issues in 2023. Charles asked why TT was still listed as non-co-operative even though the Opposition supported legislation to remove TT from the blacklist.There are three main reasons TT remains listed by the European Union as a non-co-operative jurisdiction for tax purposes.
Imbert said the main reason TT was still on the blacklist was as a result of non-compliant Global Forum rating under the exchange of information on request and the automatic exchange of information standards. TT had enacted four key pieces of legislation, namely
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- the Companies (Amendment) Act,
- the Income Tax (Amendment) Act,
- the Mutual Administrative in Tax Matters Act, and
- the Tax Information Exchange Agreement,
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to address these issues in 2019 and 2020. The Global Forum reviewed the legislation and came up with 23 additional recommendations to make the legal framework more robust.
“TT is currently involved in an intensive technical assistance programme with the Global Forum to ensure that the country has made the necessary legislative, administrative and operational improvements to undergo its Phase II tier review. Through the ongoing work of the technical assistance programme, TT is in the process of finalising draft legislation that will comprehensively address the outstanding issues identified for exchange of information on request and the automatic exchange of information.
“In terms of the administrative and operational dimensions, the TT competent authority, the Board of Inland Revenue is in the process of strengthening that organisation’s confidentiality and data safeguards and exchange of information functions and processes. Once all legislative issues are addressed, TT will submit its application to become a party to the multi-lateral convention and will be able to take full advantage of exchanging information with the current 146 signatories.”
Imbert said the second reason TT was on the list was that the Organisation for Economic Co-operation and Development (OECD) had said TT possessed a harmful tax regime because of what was seen as a ring fenced freezone regime.
TT has administratively closed off the regime to new entrants in January 2019 and the Special Economic Zones Act 2021 was partially proclaimed in January 2022. Draft SEZ are being finalised by the Ministry of Trade and Industry.
The final reason TT remains on the blacklist is due to deficiencies in its country to country reporting status.
“According to our 2022 peer review, TT was found to have deficiencies in our legal and administrative frameworks for the exchange of information and the use of country by country reports. TT has accordingly made a commitment to the EU to fully implement country by country reporting by 2023 and for this to be reflected in the 2023 peer review report. In so doing, TT is currently finalising draft country by country reporting legislation for enactment in 2023.”
Asked why these issues were not identified before the four pieces of legislation were brought to Parliament, Imbert said “The legislation we brought to Parliament was identified to target the known deficiencies at the time. Subsequently, they’ve given us 23 additional recommendations. This is the world we live in and we have to swim in it.”
Charles asked why other Caribbean countries had been able to identify and enact legislation and come off the blacklist, to which Imbert replied, “Fortunately for them, those countries do not have an Opposition UNC that refuses to co-operate and refuses to pass special majority legislation.”
Mayaro MP Rushton Paray asked if Imbert was aware of the impact on the local tax industry based on the Tax Haven Act passed in the German Parliament for EU blacklisted countries. Imbert said he was up to date.
“As recently as a couple of weeks ago, I participated in a virtual meeting with the lead personnel in the Global Forum. We are also in constant contact with the EU Ambassador here in TT, who is assisting us. In fact, an EU delegation came to TT specifically to discuss this and other matters and therefore we are abreast of all current developments.”
House Speaker Bridgid Annisette-George did not allow a demand from Charles that Imbert admit that the Opposition had supported the four pieces of legislation.