Property Matters – Tax Facts

property-taxesThe controversial property tax is now expected to be implemented in the fiscal year 2017 and is estimated to raise $503 million. That is a mere 1.7% of the total revenue estimate of $29.93 Bn from taxation. So why is it so controversial? How will it be implemented? How much can we expect to pay?

The property tax being proposed will tax the fixed assets and income streams of persons who are currently avoiding any payments of tax to our Treasury. It is relatively tiny in size, yet it can unlock disproportionate benefits in the public interest.

Our taxation system has done a poor job at levying on the self-employed and companies, as stated so often in the past. The proposed implementation of the Trinidad & Tobago Revenue Authority (TTRA) is expected to create a structure which can effectively tackle this widespread pattern of tax evasion. The previous attempt, during 2009, met with stiff opposition, so it remains to be seen if the current economic downturn will foster a different reaction. Continue reading “Property Matters – Tax Facts” →

Property Matters – POS development prospects

Port of Spain. Downtown in the background, One Woodbrook Place in the foreground
Port of Spain. Downtown in the background, One Woodbrook Place in the foreground

The state of our capital city, POS, is a serious concern to any proud citizen or even our visitors. A real nation would treat its capital with pride, but in my view Port of Spain presents a painful paradox in several respects. Despite that, there are now some real opportunities for us to reconsider just how we manage our capital city. A new approach is needed to rescue our capital city in this time of reduced financial resources.

Some of the negatives include –

Our capital has been severely depopulated in the past 50 years – as shown in the graph and table, its 1960 population was 94,000, while the most recent census in 2011 showed a figure of only 37,000. Given that there has been no natural disaster, war or plague it is sobering to consider this steady population loss and its causes during that period of relative peace and prosperity. No doubt that loss has been due to the mismanagement of the city’s planning, traffic, parking, vending, crime, homelessness and sanitation issues. That series of mishandled and interlocking growing-pains produced an increasingly dirty, unsafe and crowded city which eventually lost its appeal. Continue reading “Property Matters – POS development prospects” →

Property Matters – 2017 Budget Prospects

The 2017 budget is due to be presented on Friday, 30 September 2016 to an anxious nation. Having had to endure the literally unbelievable optimistic economic claims of the previous government prior to the September 2015 general election, we were told by then Central Bank Governor, Jwala Rambaran, in December 2015, that the nation had been in recession for 6 months. I tell you. Of course that message has now been repeated after the messenger was dismissed for various alleged offenses, but that is for another column.

Our levels of public expenditure have moved sharply upward, with only a single decline in 2010, as shown in the graph and table for 2005-2016. Those totals are derived from the estimates stated in the various budget statements and do not represent the actuals. In that period, estimated revenue was $534.57Bn with estimated expenditure of $574.6Bn. That balance between revenue and expenditure yielded a combined deficit of $40.125Bn – 84% of which ($33.67Bn) occurred under the Peoples Partnership government, 2011-2015. Continue reading “Property Matters – 2017 Budget Prospects” →

VIDEO: INVADERS’ BAY ISSUES on ‘The Morning Edition’ on TV6 – 20 September 2016.

tv6_logoJCC Immediate Past-President, Afra Raymond, interviewed by TV6’s Kejan Haynes on Morning Edition on Tuesday 20 September 2016 on the ongoing issues at development site at Invader’s Bay and their connection to the larger procurement public policy issues. Video courtesy TV6

  • Programme Air Date: Tuesday 20 September 2016
  • Programme Length: 0:20:45

Property Matters – Hotel Facts

No Man's Land, Tobago is a potential site for Sandals Resort in TobagoThe previous article on the Sandals Tobago proposal ended by pointing to the need for attention to the underlying, commercial arrangements which drive projects of this type.

The procurement model is key to understanding how these large-scale, internationally-branded hotels are created and sustained. The two ends of the procurement show different approaches –

  1. hiltonposthe T&T model is one in which the State paid to design, build, fit and furnish the hotel to the specifications of the hotelier. The hotel then operates via a management contract which splits the revenue between the State and the hotelier. Trinidad Hilton, Tobago Hilton/Magdalena Grand and Hyatt Regency were built by the State using this method.
  2. The other approach is one in which the hotelier constructs the hotel and receives tax concessions from the ‘host State’ in return.

Both these are Public Private Partnerships (PPPs) in which risk and reward are shared.

Continue reading “Property Matters – Hotel Facts” →

Property Matters – Pay Day? Part Two

past-dueI previously estimated State debt to the construction industry in the $3.2-3.5 Billion range. I have since been reliably informed that construction industry claims against WASA are estimated to be in the $600M range, which of course would be subject to verification as discussed previously. My revised estimate (see table below) is now in excess of $3.8 Billion, compared to the JCC’s 27 July 2016 estimate of $2.3 Billion.

The size of my more recent estimate gives a severe picture of the State’s indebtedness to the construction industry, which is the sector that Central Bank research shows to be the largest employer in the national economy. Apart from that, the construction industry also has deep links to other important parts of the national economy such as quarrying; banking/finance/insurance; hardware stores; a range of manufacturers; transportation and so on. Continue reading “Property Matters – Pay Day? Part Two” →

Privacy Pros & Cons

The recent high-level of public concern over the SSA Amendment Bill was of limited concern to me, until I started listening properly. In the event, the proposed law was passed by the Parliament and there is some threat from the Opposition of a lawsuit to test its constitutionality. We will see.

Two very interesting stances surfaced during the heated debates and it is at these kind of moments that I sometimes think of our so-called political divide. Those were the Right to Privacy stance disclosed by the AG and the private briefing of Parliamentarians as a legislative tool.

Sen. Faris Al Rawi, Attorney General
Faris Al Rawi, Attorney General

The AG, Faris Al Rawi, was emphatic on 2nd May 2016 that we have ‘…no enshrined right to privacy under the law…‘. He was almost immediately contradicted by former CJ, Michael de la Bastide QC, who relied on Section 4 (c) of the Constitution which specifies ‘the right of the individual to respect for his private and family life’. In ‘The creep of Tyranny‘ on Monday 9th May 2016 in this newspaper, my colleague Michael Harris also made strong objections to the AG’s stance. Of course we have rights to privacy and those are entrenched in our Constitution, but now those rights can be limited by the new law, intended to promote national security. Continue reading “Privacy Pros & Cons” →

Property Matters – Housing Issues – part 5

hdc-logo

SIDEBAR: CORRECTION

With apologies to readers, this is to correct my figures in relation to the amount of Public Money which TTMF received in relation to the 2% subsidised mortgage programme. The figures disclosed in TTMF’s Summary Financial Statements are actually liabilities, being the reducing balance on the original allocation of $200M for this programme.

The recalculated figures for TTMF’s recovery of 2% mortgage subsidy 2007 to 2014 are

YEAR SUBSIDY (cumulative)
2007 $.9M
2008 $5.3M
2009 $16.5M
2010 $34.1M
2011 $52.7M
2012 $70.4M
2013 $87.4M
2014 $105.2M

These figures are far less than those I cited in my article, since only $105.2M has been drawn from the original allocation of $200M, as against my erroneous claim that $1,227.5M of Public Money had been spent on this subsidy.

Last week I examined housing subsidy to illustrate the ways in which Public Money is used to provide better housing opportunities.

The sidebar contains my correction, which shows that a total of $105.2M was spent in this 2% subsidised mortgage programme between 2007-2014. I was also informed that the 2% subsidised mortgage had been granted to 1,466 applicants, who earn less than $10,000 per month, to buy homes under $850,000. In late 2014, TTMF also started offering 5% mortgages to applicants who earn up to $30,000 per month for homes up to $1.2M – 298 of those mortgages have been granted to date.

This revision and the new information will require that we pay even greater attention to the HDC’s operations, since it far outstrips the other agencies providing housing options.

So, what is the proportion of applicants between the lower and middle income groups? At pg 28 of the Vision 2020 Housing Sub Committee Report (2005) that is estimated as follows –

“…shows that more than half of the demand for housing to 2020 (57.3%) falls within the low-income group with 30.7% in the middle income group and 12% in the high-income group…”.

It is difficult to reconcile those researched conclusions as to the demand for homes with the actual distribution of new HDC homes, in which only 21.7% were rentals. The pattern of distribution of those homes seems to indicate that the decision was taken to promote home-ownership in preference to building rental units. There is no doubt that this decision was detrimental to the neediest applicants, who were unable to qualify for mortgages, while at the same time being beneficial to those whose earnings qualified them for mortgages. Continue reading “Property Matters – Housing Issues – part 5” →

Call for OPEN DATA for Parliamentary expenses

No More Secret Spending! Public Money is Our Money!

opendata

This is an open call for the Administration of our Parliament to take the lead in publishing all the details of Parliamentarian’s expenses for the past ten years – 1st January 2005 to 31st December 2015.

Recent revelations have sparked a national discussion on the use and abuse of MPs’ entitlement to Public Money for the operation of Constituency Offices. We are now having a vital and long overdue national conversation about the proper use of MPs’ benefits and the need for the public to scrutinize this aspect of public money expenditure.

Our Parliament provides freely-available information with great ease of access at www.ttparliament.org and in its various online broadcasts, as well as GISL and 105.5FM.

The details of the Constituency Office expenses of MP Marlene McDonald were disclosed to Fixin T&T under the Freedom of Information Act. That precedent having been established, it is difficult to imagine that any tenable objection could be raised to the publication of the same information for the other 40 MPs.

We are therefore proposing to the Administration of the Parliament that they take this historic opportunity to lead the transition from the current ‘Freedom of Information’ paradigm, in which citizens have to apply for information, to the modern, more proactive, approach of ‘OPEN DATA’ in which public information of interest is routinely published on a voluntary basis online, in searchable databases.

We also suggest that the Legislature consider the lessons from the UK Parliament (often considered to be the our ‘Mother’ Institution), which, as a response to the parliamentary expenses scandal in 2009, announced the creation of the Independent Parliamentary Standards Authority (IPSA), intended to manage Members’ expenses at “arm’s length” from the House.

Our Parliament is our highest Court and it is important that it take the lead in setting higher standards of Transparency, Accountability and Good Governance. These challenging times call for non-partisan and decisive leadership: we expect no less from our Parliament.

Specifically, our call is for the details of MPs expenses to be published for the ten year period – January 1st 2005 to December 31st 2015, with quarterly updates as necessary. The expenses which should be disclosed are –

  • Details of annual allocation of Public Money to be spent via Parliament for operation of Constituency Offices;
  • Guidelines on the use of those sums of Public Money, together with changes in those guidelines, with updates to show when these were in force;
  • MP’s names;
  • In relation to each MP’s office/s, names of employees to include period of employment, position held, salary etc;
  • In relation to each MP and their office/s, details of the non-salary expenses claimed and paid, to include utilities (TTEC, TSTT, WASA etc) furniture/equipment rental etc;
  • In relation to each MP’s office/s, details of the rentals paid, lease/tenancy agreement;
  • Annual Financial Reports submitted to the Parliament by MPs and the consolidated Financial Reports to the Parliament.

Many of the positive steps taken by our Parliament in relation to disclosure of information were supported by former Speaker of the House, Wade Mark. We expect this to be continued by the current Speaker of the House, Bridgid Annisette-George.

Friday 25th March 2016 Trinidad Express Link
Afra Raymond
Disclosure Today
Trinidad & Tobago Transparency Institute
Constitution Reform Forum

2016 Budget Review

The 2016 budget statement was made on Monday 5 October 2015 by newly-appointed Minister of Finance & the Economy, Colm Imbert MP. Imbert is a professional engineer, so the fact that he lacked any formal certification in the financial field sparked much debate. The budget proposals have been made, so we are well past that point now.

These expenditure and revenue figures are from the Budget Statements, so no account has been taken of either actual outcomes or supplemental appropriations – this is the process used by the Government to obtain authorisation from the Parliament to exceed the approved spending limits in the national budget.

Continue reading “2016 Budget Review” →