On the road to Transformation

[00:00:01] Speaker A: The best insight, instant feedback, accountability. The all new talk radio freedom 106 [00:00:07] Speaker B: and we say good morning to Rudy. Good morning, buddy. [00:00:10] Speaker A: Good morning, Devi. Good morning fellow listeners. [00:00:12] Speaker B: President of psoc. All right, so we definitely going to be having some conversations this morning. I and the economy as we pay attention to the things that are very, very prudent and important to us in this world. [00:00:25] Speaker C: Morning, Devi. Yeah, hope all's well with you. Man. Don't take that individual on. The old people used to say once you bait a pig and you put him back in the sty, he'll go back and mess himself up. And that certainly reminds me of that gentleman. So you know, leave him alone. You know, the good Lord will take care individuals like that. You know, he's nothing but a fanatic of the PNM and they would do anything in their power because they know they out of. They'll be out of politics forever. Have a good day, Davey. [00:00:55] Speaker B: I ain't know they'll be out forever. The PNM party that is. You know there's a tendency track record history. UNC win, PNM come back. UNC win and PNM come back. So that's the track record. We getting to our conversations now. [00:01:13] Speaker D: We're here to do rocketry. [00:01:14] Speaker E: Mark, you're aligning a colleague on the radio to a pig with a sty because you can't respond to the conversation. And that's the lack of education by the UNC and the supporters because they. The question of the revenue authority gives rise to a lot of changes in the way employees they operate. Not only that, including what Eric said people typical of the PNM will have offered vcep. David, these things happen in private companies. They call it reorg. You change to get the more proficient people to operate. You cannot do that with the UNC around. You keep the nonsensical thing about the UN you you want to protect let's say 300 people. Employee employed. Employed. That's no problem. The annual amount might cost you $5 million. You're letting 10 billion go to save 5 million. That is a Ministry of Finance policy. Something wrong. And then I look come and I look reply. Davis could come like a pig in a style. You see the problem. I tell them if all you all could do is vote. Vote. Have no comment on this program. Now it it's still three or still in standard one. [00:02:26] Speaker B: But Todd, you have nice contributions and not because we upset with Barataria and his statements from since Tuesday to now means that we're going to Go down that narrative. Baria said earlier that them attack me so I attacking them do for do no harm done. Well, plenty harm. Be not in the habit of belittling ourselves because our neighbor use profanity against us. We don't need to cuss back the neighbor I saw yesterday morning Rudy in Port of Spain where the San Fernando taxi stand is there. I don't know, south taxis. And you're going two big men, not grown men, big men. These fellas big inside big big belly hunting macho men so to speak and them cursing each other stink on the promenade. But who mother so and so and who father that and if he had these two grown men a third was in the frakker. He opted to not say anything. He said you know what I leave a new boy like apparently it's two against one. You know somebody cut the line or whatever boy. But whoever wrong or right in the incident, the one initially when I passed I didn't hear him respond but then he started lashing back with some words and I said to myself boy, it takes two to argue and if one [00:03:50] Speaker A: moves away, argument is over and you retain your peace. [00:03:55] Speaker B: Devi, only a madman quarrels with himself and answers himself well. [00:04:01] Speaker A: They say be careful you don't argue with a fool because the onlookers wouldn't know the difference. [00:04:06] Speaker B: Ah boy. [00:04:07] Speaker A: So we all are guided by. [00:04:09] Speaker B: By so many. [00:04:10] Speaker A: By his observations. [00:04:11] Speaker B: Yes. You know people who are watching unfortunately [00:04:14] Speaker A: I'm sure within airshot of younger people as well. So we have again as elders in society we have to set the right [00:04:20] Speaker B: example and we should. So as we get straight into the iron economy this morning Rudy is in the building. My co host on a Wednesday, on a Thursday. Sorry, I don't need to go back now. I need to go back. [00:04:29] Speaker A: We all need an extra day. I am there with you, you know. [00:04:34] Speaker B: You know. [00:04:34] Speaker A: Good morning again. [00:04:36] Speaker B: We chatting on various topics as it affects Trinidad and Tobago this morning I see you sent the issue with. Well before. Before I get to that part and Nestle ain't do nothing bad yet. But how would that affect the economy if they really left this country? Boy. [00:04:55] Speaker A: David, 60 years of business in an island as small as we are for a large company as Nestle will have an impact. We can't get away from the honest data that an exit of that size would have a negative. It would have a negative knock on effect not only from an economic point of view because of the trade and the potential job losses, but it's what we call disinvestment and large brand like that, leaving a country like ours, it unfortunately will send a signal that may be something that can help create this perception that maybe Trinidad is not as investable as it used to be. [00:05:51] Speaker B: That is a scary thing. [00:05:52] Speaker A: And that, that to me is a broader problem because we do have, we actually have members of PSOT who are involved in that sector. So Dr. Donnie Rogers, for example, whom you are familiar with, he sits on our Agri Processing committee as well as our SME Business Council and other persons have already developed private sector plans that would allow us to sustain that particular type of operation. Because there are private sector individuals in Trinidad and Tobago who operate in the dairy and juice industries, the sub sectors within the food and beverage industry. So there are opportunities to sustain the economics of it. But the broader issue is when on an international scale you see companies of that size deciding to go elsewhere or to close operations, when we are trying to attract large brands like that to bring their investment dollars to Trinidad and Tobago. [00:07:02] Speaker B: So then how do we look at IHOP and Applebee's that are now seeing Trinidad as a investable nation? [00:07:08] Speaker A: So, you know, it's half, it's six of one, half a dozen of the other, because it's. You'd like ideally to retain all. But over the years, many international brands have come and gone. There's a certain hamburger joint again when they start to sponsor us, well, remember the branch they left and then they returned and now they're successful. Times change. The Minister of Trade made it clear that as far as one way of looking at this is there is an opportunity for the private sector to actually perhaps purchase the plant and continue operating it. And there are always licenses and franchise agreements. It's possible. We all know that a certain cola is produced here under license, right? And in other territories. It doesn't mean that the parent company actually owns the operations, but they grant the license for the product. Product to be produced. So there are different modalities. [00:08:13] Speaker B: So do you think we could look at that model when it comes to Nestle? [00:08:16] Speaker A: Why not? Why? If we have the production capacity, but from an operational point and a company decides they no longer want to actually run and operate the plant, but they, I'm sure they still want to sell their products into the market and use Trinidad and Tobago because of our proximity to Latin America, for example, we, we and the rest of the Caricom, there's a strategic value for 60 years why they were here in the first place. Right. So again, let's reframe it in terms of opportunities. The discussions are ongoing. The Prime Minister herself has intervened and asked the Inter Ministerial committee to look at it, which is very responsive because one another approach could have been, well, take your mind and yeah, so the point is that these are opportunities in the silver lining. You have to look for beyond the cloud. There are opportunities in hiding sometimes. But the economy, Davy, is not where it needs to be. You would have seen in the last few weeks some of our local companies reporting their profit margins and their annual reports and you saw declines. And I want to say to the public out there that we have to stop demonizing profits. Profitability means jobs, it means expansion, it means foreign exchange earnings and it means tax. You spent the last hour or so discussing issues around tax collection. People need to accept that, especially the companies that report publicly. It means that they are paying their fair share of tax. [00:10:03] Speaker C: Indeed. [00:10:03] Speaker A: So because their accounts are audited and the government, the public has fair sight of what these companies are earning. And that is a good thing. You want every doubles man, every mechanic, every jet ski operator and every large supermarket chain radio station, we all want to make profits in the right way and pay your fair share of taxes. Now it's incumbent on the government side to ensure that we have the right capacity to not only enforce taxation law, but to collect what is due to the state. And you know, in the United States of America there's a saying, tax, the tax man cometh. They don't play with their tax dollars. [00:10:55] Speaker B: Dr. Rowley mantra, you know, my money mustn't sleep out. [00:10:58] Speaker A: But what the private sector also wants, Devi, is when the tax dollars are collected, they must be used in the right way with as least wastage and no corruption because everybody's working very hard. You get here, got up at some ungodly hour in the morning to come here and do your job and you are in your in your own way helping this station to raise its revenue and earn profits. So when the money is taxed through your hard work, do you want to know that some of that money is being wasted and corruptly used so that the country is not benefiting? That is the challenge. So it takes two sides. [00:11:35] Speaker B: Well said. Good morning. Good morning. [00:11:41] Speaker F: Good morning, Davy. [00:11:42] Speaker B: Good morning. [00:11:44] Speaker F: For our company to be viable, the products must be affordable to the population of who consume the product. Now if your product is not affordable to the to the people who consumes it, then your product wouldn't be, people wouldn't buy it. No labor laws in Trinidad. Every three years now you have to have a rise in their labor. A person was arise in his cost of living A rise in his salary, a rise in this body. Production is not there. There is no rise in production. There is no rise. Their labor is not producing more, but the cost of the product is going up and up and up. So where would they reach? Because a lot of people wouldn't be able to purchase the products because the cost of the products will be too much. So therefore, the company had to see about their business, how they could settle their business. So they will say, well, all right, I can afford. Leave somebody else, take it over. No, you cannot fire the workers. Okay, so what would you do? The labor laws have to be changed. You cannot have a price labor increase every three years and no production is increasing. Where would you reach with that? You reach $50 an hour. And then what are they producing? The cab producing right now. And what would be the cost of the goods? 50 times higher than what it is now. Think about it. [00:13:21] Speaker A: I think David, the caller, of course, is generalizing. And you know, all generalizations do have some truth in it. Like any other input into a business, labor has a cost. There's a supply and demand component. It obviously people who are in higher demand that have very technical skills can charge a lot more than those with, you know, standard type skills that are easy to access in the, in the pool of labor. However, we must also understand that there are many factors in the world in the geopolitics, in technology, in trade, that have changed. And unfortunately, some sectors are hit harder than others because of competition. And Trinidad and Tobago, we have not moved as fast as we needed to to remain competitive in certain fields. And while our manufacturing sector, for example, has done well enough and has maintained some growth trajectories you saw coming out of the TIC event a few days ago from the floor, the very manufacturers who are doing well have identified for many years a number of issues that have caused them to be less competitive than they could be. And you have firms in Latin America and other parts of the world. Imagine you made the point. Imagine that some products can travel halfway across the world and still be cheaper. [00:15:06] Speaker B: Yeah, boy. [00:15:06] Speaker A: Than some products made in the territory. So this is global trade, what we are looking at. These are not simple arithmetic problems they have. These equations are very complex. And I will say though, that labor laws are important and the private sector supports equitable protections for employees because we recognize the most important asset of any firm is our human capital. That is where you get inimitable competitive advantage. It's very difficult to replace people, as I said, who have institutional knowledge and technical training. What I would call upon the unions to focus on actually is tied into what the caller said. How do unions play their responsible role in ensuring higher levels of productivity and ongoing capacity development for their members? [00:16:03] Speaker B: That falls right up this. They want to ask the president of PSOT how can we get more support to local initiatives in Trinidad where you can reduce the number of import products while at the same time being getting our products into the global market? In essence, what viable and realistic initiatives can be implemented to support this? And this is something that you have often labored for, of course. [00:16:28] Speaker A: Well, first of all, it's the CEO of psot, Chief Executive Officer. That's your fault. The chairman is Richard Lewis. [00:16:37] Speaker C: Right. [00:16:38] Speaker A: Just to be clear, I don't want to claim any responsibility. [00:16:43] Speaker B: President, CEO, Chief Executive Officer. Got you. [00:16:46] Speaker A: No, listen, that question. How can I answer that in 30 seconds? We, as I told you in prior conversations, the private sector organization Trinidad and Tobago. We were formed in December, fully private sector, fully funded and established by the private sector. But we are working closely with the government, especially the Ministry of Trade, Investment and Tourism to solve some of these problems in a co creation vehicle. So we, we're in the room, Davy, every Friday working with the ministry and we're also expanding to speak with other ministries to, to have this approach to public, private, public policy development. This import substitution, import export conundrum is not a simple one because at a very high level you can make a statement that the country, for simplistic purposes, the country imports $1 million worth of goods and services. But within that $1 million, Devi, how much can we actually create to truly substitute? There are some inputs into our own products, there are some goods and services that Trinidad and Tobago cannot even begin to produce. So if you were to say, well, let us substitute the entire $1 million, what does that mean? Is that you have to actually agree that we're going to forego many products and services that we have all become accustomed to, especially in the field of digital technology and ict, you see. So that's not, it's not possible to substitute all. You have to figure out what piece, Davy, inside of that million. And for example, I met yesterday in Chaguamaramas through the marine servantee with some of the stakeholders because the marine services sector is one of the sectors earmarked for diversification for many years. But we're changing, we're going to action now. I met with Naresh and his team. They do exceptional woodworking for boats to be. If they, these people literally bend wood to create masterful pieces of art, staircases Countertops, you name it, cabinetry. You know, he told me that unfortunately we have a shortage of teak for their industry. We don't have a shortage of teak but we have a shortage of teak supply for them. We export the teak from Trinidad, it is processed so value is added externally and then we re import it which is the Plantation Economy 101 that is oil. Ah, so Trinidad and Tobago has to get with the program that there are some things that we need to stop exporting as raw materials or reduce the raw material, export, add value to it here, export it at a higher rate. And then there are other things that we agree we will always have to import but we have to negotiate better deals and to look at barter arrangements for example. People think barter is an old fashioned notion. It still happens in the world and it's a very. I have beef. [00:19:59] Speaker B: You want some? [00:20:00] Speaker A: Let's put a value to it. Let's. [00:20:03] Speaker B: So no cash, no cash involved. But we both get. [00:20:06] Speaker A: These are real things that we have to look at. [00:20:08] Speaker B: We negotiate all the time. [00:20:09] Speaker A: So import export is a complex matter but we actually have a model. Yesterday we looked at the model at the ministry and we're going to use that model to identify exactly, exactly where we need to focus. [00:20:20] Speaker B: And you know, when I think about it, I am happy to hear that. I want folks to understand where our import bill is and the, I mean the value on it, the price tag on our import bill. But think for a minute. What do I not want on my grocery list when I go to the supermarket? Let's be honest, what will I not buy? [00:20:41] Speaker A: Let us be very honest, let's be real. [00:20:43] Speaker B: Because people have apples in their homes and grapes and so forth, but would you not buy it? Cause they could grow it home by you. So think about the import bill, think about the import products and the ones that you personally could say. You know what I could do without this? I could substitute with this and the brands we make peanut butter locally. But I'm still sure you guys enjoy a little Jeff, just saying. [00:21:09] Speaker A: And Devi, that is why export becomes important. [00:21:12] Speaker B: I want you to hold your point right there. We take a quick commercial break. I and the economy. Rudy is still in the building. Rudy, good morning again. [00:21:18] Speaker A: Good morning again, Davy. And to all our guests and listeners, especially those now joining us, Private Sector Organization of Trinidad Tobago in the house, we are the national umbrella agency responsible for representing the entire private sector. Our main members are all the associations and chambers that exist, regardless of size or scope or industry. [00:21:39] Speaker B: All right. [00:21:40] Speaker A: And we're happy to have Mr. Baldarth Mirage, the president of the Chaguanas Chamber of Commerce, on live with us this morning to discuss our on the Road to Transformation consultation series. It's starting with Chaguanas and Canopia partnership on the 20th. That's Monday and it's running all the way to August 4th. Davy. It's the first time, as far as I know, in our nation's history that the Ministry of Trade has partnered with the private sector to go out and engage directly with business owners to co create productive projects that will help us transform the economy leading into the national budget. So, Baldath, good morning. [00:22:26] Speaker D: Very good morning. Thanks for having me. [00:22:29] Speaker A: Mr. Maharaj, you know, please tell the viewers and listeners out there a little bit about the work of your Chamber and some of the key projects that you all have been focusing on, especially when it comes to SME development and overcoming the challenges that face the businesses out there that don't always get a spotlight. [00:22:53] Speaker D: Well, of course, we represent a lot of small businesses as well as medium businesses. We advocate for them at the Chamber. We do have several committees and on those committees we have a functions committee and we deal with all the meet and greet. We do functions, we award successful businessmen. We also meet with the mayor and the police quite regularly. It should have been a monthly meeting. We do meet probably every two months and we discuss matters relating to crime and traffic, which obviously is a talking point in Chigonis. So I mean, those are things that we do other than that we advocate for businesses. We create, you know, the environment where each business owner can meet the other. There are many other projects that we do. We do a kids MBA where we share the mind of the young person and we create that entrepreneurial thinking so that in growing up, you know, it's not academia, business is quite different. We also do health fair where we support the community, we support the police service, whatever there are, you know, any need that they come up with that can be provided right away by the ministry. And there's a whole list of things that we actually do to support small businesses that may be too much to mention. [00:24:23] Speaker A: You know, on the air you've given quite a menu and you're setting the right example for responsible business engagement. I like the fact that you found a balance between networking, but also community outreach and that Kids MBA program is very innovative. I'm sure we'd like to chat more with you about that. How can people get in touch with the Chamber before we get into the consultation? Please let them know when what's best in terms of if they're interested in membership or reaching out for different reasons. [00:24:59] Speaker D: Well, we do have active social media, of course, the office number is listed as well. We do probably about six functions, public functions, that is annually. So we are always on the ground, we are always in touch. Our board, it's 11 people and they too are on the ground and in touch with almost every single business that is in Gibona. So it's very easy to get onto us. Very, very easy. Again, we have an active website as well where you will find information, you will find a lot of services that we provide free of charge and it's relatively easy to get in contact with us. Not only the book, but myself, I'm always open. If I can't take a call, I'll return it. [00:25:49] Speaker A: And you know, folks out there, the Chamber, the Chaguanas Chamber sits on the board of psot. They were one of the first to come forward and support this integration initiative. And that's one of the reasons that we're partnering with you, Baldath, and of course your colleagues at the Canopia Chamber of Commerce on Monday, July 20th to kick off our consultation for business owners. It's entitled on the Road to Transformation, a national consultation series hosted by the Private Sector Organization of Trinidad and Tobago in collaboration with regional business chambers and private sector stakeholders. You know, in planning the event, Baldat, we both, you and I and our respective members, we spoke about the importance of, of genuine consultation. That word is used sometimes, but is it what, what can people expect on Monday that would really result in the types of change that we need in public policy? What can they, why should they attend and participate? [00:26:57] Speaker D: They would have the opportunity to say what they did over the last year and what they intend to do for the coming year. But given that Chaguanas is a growing community and just to set the context, over the last 10, over the last 10 to 12 years, the population of Chaguanas has grown by 50%. Additionally, we have communities outside of Chaguanas, not Chaguanas proper, but all those traffic filter in the Chaguanas. [00:27:29] Speaker F: Right. [00:27:29] Speaker D: So it's a growing city in terms of the expectation. Obviously the minister, the ministry would present what they have and we would also have our members who might have peculiar issues to deal with and they would get the chance to be heard. And obviously we will action what they see now. I mean, in consultation like these, some people might think it's, it's a wish list, you know, I want to say that whatever we say, whatever we discuss the sham Always action rather than make it an exercise in futility. Yes, we together with you and. And P. We would action everything that they said. Then there are things that might be longer term than others. Yes, but yeah, and we would have discussed quite a lot of opportunities that could be created via this collaboration, including funding financing from the ETECH parks. And you know, we have the labor supply in Chaguana. There's an abundance of it. We sit just in central Trinidad. It's no longer stopover. It's probably the place to be given that we have grown so much. So, you know, some of the peculiar issues that they have, for example traffic issues, we might have forex issues that again, it's a sore point but it's something we have to work on. But mainly crime and traffic. Those are so many things that people would like to talk about. And the ease of doing business. I know the Minister spoke about it a lot of times and obviously by local. Those are some of the main, main issues that we look at. And of course anything else that they want to add to the pot because it includes Chaguana or Canopia as well, they too will have issues that they will want to discuss. And rest assured that you and I would look at it objectively and respond to these people so that for those who attend, it will be a meaningful discussion. And I dare say it's probably one of the first of its kind because historically we would have done post budget consultation. Yes, of course, after the fact. Yeah. And quite quite frankly, I mean the information that you and I get goes straight on to the relevant ministries, including the Prime Minister. And the work actually starts after the consultation. [00:30:00] Speaker B: Yes. [00:30:01] Speaker A: You know, Devi, we've been invited by a number of ministries, but particularly Ministry of Finance and Ministry of Trade to present an integrated proposal that represents as many private sector interests as possible. And that's why we're having these eight plus consultations leading into August, because it's important to do that type of heavy lifting at the private sector level so that the public sector can have adversity. Advanced notice of these innovative ideas that Mr. Meraj and his business members are developing on the ground because they are in the trenches on a day to day basis dealing with business issues. And he mentioned ease of doing business. As you know, we have an ease of doing business implementation committee, again the first of its kind. And the private sector will be setting the standards by which the business sector needs to operate to be competitive. We were talking about that earlier with what's happening with other industries and then not only setting the benchmarks, but providing opportunities for private sector players to help the government meet those benchmarks. I met for example, with Customs and Immigration Chaguamaramas yesterday as one of the stakeholders in the marine sector. Do you know, private sector players came forward and assisted with the amenities for the office to make the their working environments better at no cost to the state. And because of that they can be more efficient and provide a smile, a happy type of service to those important tourists coming in. In the marine and yachting space. Little things like that make a big [00:31:44] Speaker B: difference and that's a great thing. And I'm very happy when I look at the initiative on the road to transformation. You have already engaged the Ministry of Trade, Investment and Tourism along with regional chambers. You know, it's not just a Trinidad and Tobago thing, but we are looking up the islands and if we can be the model, be the catalyst for others to pay attention to, then that's what we were shooting for. When they built Piaco Airport, we wasn't supposed to be the transition hub of the Caribbean. All flights touching here and and connecting. [00:32:10] Speaker A: They built Mount Hope to be the [00:32:11] Speaker B: medical hub of the Caribbean hospital. [00:32:14] Speaker A: But Baghdad, according to you, Chagornas is the hub for Trinidad and Tobago. We'll take that and all port points lead. Monday, July 20th we're saying registration begins 55 15. We're aiming for a start between 5:30 to 5:45, but we're getting into the cut and thrust of it that evening. So Baldad, any closing remarks from you about your work and anything you'd like to share again about the consultation and for your members? [00:32:45] Speaker D: I wanted to share one thing. [00:32:47] Speaker C: Before [00:32:48] Speaker D: we were the only chamber to celebrate World SME Day via some training in AI and stuff like that. That was attended by Mr. Leroy Batiste, Sergeant Leroy Batiste, who is the Minister of Labour and Small and Micro Enterprise Development. And it was well received by him and by the members. I'm very excited to share the same platform with PSOT and I mean it's a high level collaboration. No longer do we need to sit in Chaguanas and then hope that we could filter the permission up. That has been done by you all. And we said before, Pisot provides one voice. It's tried and tested before in Jamaica and some of the other countries and it has been successful. So I think we're on the right track and I'm really, really excited, along with my board and our members to partner with you all so that, you know, for the better good of Trinidad and Tobago. And I do like you know, Caricom, when we talk Caricom and using the airport and WBC ports and that sort of thing, those are some of the things to me has been a bit underutilized and that's a good foreign exchange owner. [00:34:05] Speaker B: Thank you very much, Mr. Maharaj and have yourself a great and productive day ahead. [00:34:09] Speaker F: All right. [00:34:09] Speaker B: Thank you. [00:34:10] Speaker F: Thank you. [00:34:10] Speaker D: Thanks for having me. [00:34:11] Speaker A: Thank you. [00:34:11] Speaker F: Balad. [00:34:12] Speaker B: And that concludes another edition of I and D Economy. [00:34:15] Speaker A: Yes, Devi, but don't worry, as you said to me, I must be back next Thursday bright and early on. [00:34:22] Speaker B: I and the economy as we continue to macro the economy's business, the government's business and look for sustainability. [00:34:27] Speaker A: And anyone out there interested, psot, co25 psot. We're here to serve the private sector sector. [00:34:33] Speaker B: The CEO Rudy is in the building. [00:34:35] Speaker A: The best insight, instant feedback, accountability, the all new Talk Radio Freedom 106.5.