MAXIMISING OUR RESOURCES
published Newsday March 6, 2000

RICHARD JOSEPH
GENERAL MANAGER,
CARIBBEAN BUSINESS SERVICES LIMITED

The current controversy about the extension of the Atlantic LNG plant is an indication of how far we have to go to establish an approach to resource management which provides the best overall returns for the citizens of this country.

These negotiations have been protracted, and the opportunity to deal with the major issues of supply security that are now being aired in public has existed for some time. Is the absence of a response that silences the critics an indication of an inability to effectively communicate that these matters were properly dealt with, or an indication that they were not dealt with at all?

Our track record in dealing with important matters that impact on the optimization of the return on our resources does not give much cause for confidence. Take the example of our fish exports to Europe. Until July 1998 we had a ready market in European countries for fish from Trinidad and Tobago, with opportunities to expand our export into processed products. In 1991 the Europeans indicated that new rules would be introduced that would be geared towards ensuring that the quality of fish imported into Europe would meet certain heath and safety requirements. Their approach to these rules was novel. The point of departure was not merely limited to ensuring that the quality of exports to Europe was satisfactory, but started from the wider issue of what the exporting country did to ensure that its fish products met internationally accepted standards of hygiene and quality.

Though we had been given several years' notice before the new regulations were introduced when the deadline arrived we were still unprepared. Unfortunately for us, it was decided that our application was not sufficiently founded and documented and we lost this very lucrative market, together with the potential for increased business. At the time the ban was put into place there was some talk about insensitive First World countries imposing unnecessary standards on poor countries like ours. A review of the list of countries that enjoy unrestricted access reveals some countries that are certainly not as well to do as ours, such as Bangladesh, Gambia, Ghana, Madagascar, Maldives, Mauritania and Tanzania. If these countries were able to put their house in order, why couldn't we then, and why are we still unable to do so now?

Even when change is mandated by our own assessment, and not externally imposed, we are not able to get it right. An example of this is our management of the quarrying industry. Flying over the Valencia forest on the way to Tobago, one can see a landscape where the forest has been replaced by deep pits filled by muddy water. Users of the North Oropouche River, one of our important water sources, complain that at times the waterway becomes a river of mud. For some time we have been promised that the enforcement of environmental legislation would change all of this. Quarry operators would be made to become more responsible, and quarries would be rehabilitated when extraction has been completed. Unfortunately, we are still a long time away from this taking place. We continue to permit people to believe that once they have a couple of backhoes, a crane, and washing and sorting plant that they are bona fide operators who can do as they please, regardless of the consequences for others.

This example repeats itself in the Sawmilling industry where there are about sixty-five sawmills processing a volume of logs that could easily be handled by ten. In order to generate an income some of these operators resort to processing poached material resulting in uncontrolled harvesting. In addition the industry as a whole can never achieve the level of efficiency that would result in reduced waste and improved quality and output.

We live on two very small islands with limited through valuable resources. All of us, and our descendants are directly or indirectly affected by our resource allocation and utilization decisions. If we are to develop them in a manner that generates widespread confidence and support, we must have a structured approach that is based on a clear identification of our needs and objectives. This must be followed by a thorough examination of the issues surrounding each decision with the involvement of all those who will be affected by the decision. These activities can then inform the development of a strategy that addresses the needs of all concerned resulting in a more effective implementation once the decision has been made.

Organizations like BP Amoco are very well prepared when they come to the negotiating table. They know what they want and they are prepared to pay for it. We must be similarly prepared when we are dealing with our resources whether in negotiations with a supra-national corporation, or in our internal negotiations as we share our resource wealth for the benefit of all.