CARICOM leaders meet in effort to revive ailing Caribbean economies

Caribbean Community (CARICOM) leaders ended a one day meeting here Tuesday agreeing to the formation of a Commission on the Economy as they seek to revive the ailing economies of the 15-member regional grouping.

In addition, Trinidad and Tobago’s Prime Minister, Kamla Persad Bissessar, who chaired the CARICOM Bureau meeting, said agreement had also been reached on the establishment of a Commission on Transportation.

“We also agreed that the Commission should address the priority areas for fiscal sustainability, resource mobilisation as well as critical economic infrastructure services particularly energy and ICT (Information Communication Technology).

“We further agreed the recommendations of the Caribbean Convergence Model prepared by Mr. (Winston) Dookeran (Trinidad and Tobago’s Fireign Affairs Minister) and the Commission is to report by the end of 2013”.

At their last summit here in July, the regional leaders had agreed to establish a committee to consider the economic situation facing member states and the wider region and Barbados Prime Minister Freundel Stuart, who will chair the Commission on the Economy, told reporters he would advise regional leaders on the regional growth agenda.

“It is generally known now that the issue of economic growth in this region has been on the front burner agenda issue,” he said, adding that growth across the region in the last few years “has been anaemic”.

“We thought we had to apply our minds to see how best we can put the economies back on a sustainable growth path,” Stuart said, adding that the issue would not only involve “not just growth, but growth with employment”.

He said the sustainable growth would also have to take into consideration the issue of resource mobilisation.

“So these are some of the priority areas that the Commission on the Economy will be looking at and as chairman I am allowed to co-opt people and we have to report to the Council on Finance and Planning by the end of the year”.

The Commission on the Economy will have two representatives from each member country.

Prime Minister Persad Bissessar said that the Bureau had also decided on the Commission on Transportation, whose membership will also include representation from the shareholder governments of the regional airline LIAT, BAHAMASAIR, Caribbean Airlines (CAL) Suriname Airways.

“We also want this Transportation Commission to look at maritime transport as well,” she said.

St. Vincent and the Grenadines Prime Minister Dr.Ralph Gonsalves told reporters that the issue of the subsidy paid to the CAL by the Trinidad and Tobago government had also been raised and was pleased that Port of Spain had agreed to end the measure from this fiscal year.

“It is well known that I have been contending for quite a while that the subsidy to Caribbean Airlines was contrary to the multilateral air services agreement under the Revised Treaty of Chaguaramas. The subsidy has been removed so now there is a level playing field.”

But Gonsalves said he was aware of efforts by the Trinidad and Tobago government to pump TT$400 million (One TT dollar = US$0.16 cents) to recapitalise CAL, and while he had no qualms about the recapitalisation measures, he would be following the matter to ensure that “there is no temptation...to provide CAL with prohibitive subsidies.

“If that happens you can rest assured that the competitor airline, LIAT, we will make our voices heard.”

The meeting here also discussed a proposal by Gonsalves on the decriminalisation of marijuana for medicinal purposes and Prime Minister Persad Bissessar said that it was agreed that there should be much further discussion on the matter.

“So we have tasked the CARICOM Secretariat to do research on the medical issues as well as on the legislation issues,” she said noting that Trinidad and Tobago National Drug Council had developed a concept paper  and that would be sent to the Guyana-based Secretariat.

“The decision is no decision on that issue except to say much further discussions, much more consultations in each other country... before a report is presented in February next year.’

The one-day meeting also discussed reparation and Gonslaves presented an update report on the first ever Regional Reparation Conference now winding down in his country.

“We are awaiting a final document with the decisions and they will be transmitted back to CARICOM, particularly Prime Minister Stuart who heads the Prime Ministerial Sub Committee on Reparations,” Gonsalves said.

“The road map is being fashioned...and the way forward is being devised,” he told reporters.

Prime Minister Persad Bissessar said the meeting also agreed that regional leaders who will be addressing the United Nations General Assembly (UNGA) over the next few weeks would also be raising the issue of reparation.

 

(CMC) 

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Date Posted

September 19 2013