Monday, November 4, 1991 The House met at 2.00 p.m.
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1 1007 Leave of Absence Monday, November 4, 1991 HOUSE OF REPRESENTATIVES Monday, November 4, 1991 The House met at 2.00 p.m. PRAYERS [MR. SPEAKER in the Chair] LEAVE OF ABSENCE Mr. Speaker: Hon. Members, I have granted leave from today's sitting to the Member for St. Augustine (Mr. John Humphrey). PAPERS LAID 1. The Minimum Wages (Shop Assistants) Order, [The Minister of Labour, Employment and Manpower Resources (Dr. The Hon. Albert Richards)] 2. The Minimum Wages (Catering Industry) Order, [Hon. A. Richards] 3. The Minimum Wages (Household Assistants) Order, [Hon. A. Richards] 4. Report of the Auditor General on a Special Audit of the Operations of the "Football Massive" Project. [The Minister of Industry, Enterprise and Tourism (Dr. The Hon. Bhoendradatt Tewarie)] 5. Report of the Auditor General on the accounts of the Airports Authority of Trinidad and Tobago for the year ended December 31, [Hon. B. Tewarie] 6. Report of the Auditor General on the accounts of The Airports Authority of Trinidad and Tobago for the year ended December 31, [Hon. B. Tewarie] 7. Report of the Auditor General on the accounts of the Arima Borough Council for the years ended December 31, 1983, 1984, 1985, 1986, 1987, 1988, 1989 and [Hon. B. Tewarie] Papers 4 to 7 to be referred to the Public Accounts Committee. 8. Report of the Auditor General on the accounts of Trinidad and Tobago Telephone Company Limited for the year ended December 31, [Hon. B. Tewarie] To be referred to the Public Accounts (Enterprises) Committee. 9. Report of the National Planning Commission for the year [Hon. B. Tewarie] SELECT COMMITTEE REPORTS
2 1008 Select Committee Reports Monday, November 4, 1991 Constitution Commission (1987) Presentation The Minister of Health (Hon. Selwyn Richardson): Mr. Speaker, I beg to present the Interim Report of the Joint Select Committee appointed to consider and report on the Report of the Constitution Commission (1987) and requests by various organizations and individuals for public holidays in Trinidad and Tobago. Adoption Mr. Richardson: Mr. Speaker, I beg to move that his House adopt the interim report of the Joint Select Committee appointed to consider and report on the Report of the Constitution Commission (1987) and requests by various organizations and individuals for public holidays in Trinidad and Tobago. Question proposed. Mr. Kenneth Valley (Diego Martin Central): Mr. Speaker, I just want to inform the House that this interim report was not considered by the committee. I got a copy of this report on Wednesday afternoon and on Thursday morning the Clerk called me asking whether I read it and whether I had any problems. I told him I did not have sufficient time to read the report, and I understand the report was laid in the Senate. Mr. Richardson: Mr. Speaker, on a point of order. It is not that the report was not considered by the committee. If the Member for Diego Martin Central wants to speak for himself, he is free to do so, it is a democracy, but let him not attempt to speak for the committee. I can speak for the committee, he cannot. Question put and agreed to. Interim Report adopted. Population Policies Presentation The Minister of Education (Hon. Gloria Henry): Mr. Speaker, I beg to present the Interim Report of the Special Select Coimmittee of the House of Representatives appointed to consider and report on Polulation Policies and Laws, Family Planning, Status of Women, Environment, Children and the Social Sector. Adoption
3 1009 Select Committee Reports Monday, November 4, 1991 The Minister of Education (Hon. Gloria Henry): Mr. Speaker, I beg to move that this House adopt the interim report of the Special Select Committee of the House of Representatives appointed to consider and report on Population Policies and Law, Family Planning, Status of Women, Environment, Children and the Social Sector. Question proposed. Question put and agreed to. Interim Report adopted. ORAL ANSWERS TO QUESTIONS BWIA (Financial Losses) 74. Mr. Patrick Manning (San Fernando East) asked the Minister of Industry, Enterprise and Tourism: Would the Minister kindly state BWIA s financial losses for the following years: (i) 1988; (ii) 1989; (iii) 1990; and (iv) 1991 to date? The Minister of Industry, Enterprise and Tourism (Dr. The Hon. Bhoendradatt Tewarie): Mr. Speaker, to date, BWIA s financial losses are as follows: 1988, $131,977,370; 1989, $105,261,329; 1990, $232,409,45; 1991, estimated or projected, $57,700,000. Mr. Speaker, when this Government assumed office in 1986, BWIA had accumulated losses of over $246 million, and there were no mechanisms in place for the turning around of the corporation. In addition, the subventions by the Government to BWIA between 1981 and 1986, inclusive, totalled almost half a billion dollars $458,980,000, to be exact. On the basis of the policies of this Government, the corporation has shown a gradual improvement in its financial performance. Notwithstanding the loss for 1990, which was due to circumstances beyond BWIA s control, namely, the Persian Gulf crisis which led to high fuel prices, and
4 1010 Oral Answers To Questions Monday, November 4, 1991 [HON. B. TEWARIE] the events of July 27, 1990, the corporation is very much a target for achieving viability in the short term. The preliminary reports for 1991, on the company s performance, show a projected loss of $57.7 million, or a 75 per cent reduction over 1990, which further serves to highlight the positive impact of the policies laid down for the turnaround of BWIA by our Government. Mr. Speaker, with the proper mechanisms in place, the Government is of the view that BWIA can be made profitable and financially independent. Secondly, in order for financial independence to become a reality, and also in order to stand a chance of attracting a foreign partner, and/or privatizing with public participation, financial assistance is needed from the Government. Ideally, the conversion of all existing debt and the infusion of new equity would be the simplest and most effective approach for BWIA. Clearly, however, this idea is not realizable, at least not to its fullest extent at this time. The reality, that some mix of these two steps is necessary, is inescapable, however. The consultants, First Boston of Washington, have advised that the financial restructuring of the airline, which would provide debt relief and provide a cushion for operational restructuring, is essential. To this end, the consultants saw the financial restructuring of the airline to be essential, namely, the Government of Trinidad and Tobago, and shareholders, should, (a) assume responsibility for approximately $55 million of the corporation s debt as of December 31, 1990; and, (b) provide further equity capital infusion of US $50 million. The Government is in agreement with the recommendation to convert some of the corporation s debt to equity, and to date it has taken the decision to take over the Republic Bank short-term demand loan of $37 million, which was taken out by BWIA in BWIA also has a Trinidad and Tobago $3.8 million loan due to the Government for the purchase of a computer system, plus interest of TT $2.5 million. These have also been converted to equity. The Government has also agreed to set off the interest paid on the Republic Bank loan against ticket taxes collected for the year prior to Additional equity infusion would be desirable to be able to present a balance sheet to a likely foreign partner that shows a company that has some substance. The Government is at the present time taking steps to support the corporation in raising some $130 million which will subsequently be converted into equity for BWIA. Thank you very much.
5 1011 Oral Answers To Questions Monday, November 4, 1991 Mr. Valley: Mr. Speaker, just one simple supplemental question. Did the Minister say the accumulated loss figure to 1986 was $246 million dollars? Dr. Tewarie: For what year? Mr. Valley: Accumulated loss figure up to Dr. Tewarie: Yes, the accumulated loss figure up to 1986 was $246 million. Mr. Valley: Thank you. Dr. Tewarie: You cannot say thank you, because that is only part of the answer. You have to add to that the subventions by the Government, which equal almost half a million dollars, which would make a total of approximately $700 million. Mr. Valley: Mr. Speaker, obviously he does not understand accounting. There is no way a subvention will have to be added to accumulated loss. Accumulated loss talks about revenue and expenditure of the company. I just wanted to ask one other supplemental, Mr. Speaker. Can the Minister inform us of the loss for 1986? He gave us the accumulated loss figure up to that time of $246 million. I am asking now for the loss for that same year. Point Fortin Refinery 75. The following question stood on the Order Paper in the name of Mr. Patrick Manning (San Fernando East): Could the Minister of Finance kindly state: (i) How much of the US $260,000,000 loan recently obtained from the Inter-American Development Bank will be spent on upgrading the refinery at Point Fortin? (ii) What modifications are to be carried out to that refinery? Dr. Tewarie: Mr. Speaker, we are unable to answer that question at this time. Mr. Valley: Mr. Speaker, you would know that this is the last sitting for this session of Parliament. I am sure the Government would know that also, so one would expect that they would have made an effort to try to answer the question. Dr. Tewarie: I am sure the question will be answered in due course. Question, by leave, deferred. ADJOURNMENT
6 1012 Adjournment Monday, November 4, 1991 The Minister of Industry, Enterprise and Tourism (Dr. The Hon. Bhoendradatt Tewarie): Mr. Speaker, before I move the adjournment of the House, with your permission, I simply want to indicate to Members, as, indeed we have indicated through the Clerk of the House, that this sitting was specifically called to deal with the Minimum Wages Order presented by the Minister of Labour today for three categories of workers. Therefore, Sir, we have no other business that we would like to pursue on this occasion. I beg to move that the House do now adjourn to a date to be fixed by the Speaker. Question put and agreed to. House adjourned accordingly. Adjourned at 2.25 p.m.
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