TT government to bail out CL Financial

Lawrence Duprey

A media conference called today by the governor of the Central Bank of T&T informs the public that the government of T&T is about to bailout CL Financial. Laurence Duprey, Chairman of CL Financial; Ewart Williams, Governor of the CBTT; Finance Minister Karen Nunez-Tesheira; Larry Howai, CEO of First Citizens Bank and Carl Hiralal, Inspector of Financial Institutions, all made statements at the media conference.

Williams blamed “excessive related-party transactions”, the fall in methanol prices and real estate for CLF’s woes. He stated that since four of CLF’s finacial companies manage over $38 billion in assets–which is more than 25% of T&T’s GDP, the government acted to maintain confidence in T&T’s financial sector. The CBTT acted under section 44D of the CBTT Act.

The bailout will see the government offering funding to CLF in exchange for collateral and equity in CLICO. Clico Investment Bank will be wound up. CIB currently has approximately 100 employees, according to Duprey.
Four of CLF’s subsidiaries will be affected: Clico Investment, British American Insurance, CLICO and Caribbean Money Market Brokers.

Howai explained that FCB was invited to participate, based on their strong balance sheet and experience with such matters. He asked affected depositors to avoid going into the FCB branches seeking answers.

Finance Minister, Karen Nunez-Tesheira, who only a few short months ago boasted that the global financial crisis will not negatively affect T&T came directly from a Cabinet meeting to the media conference. She stressed the cooperation between the various teams working on the bailout, but would not give a figure to journalists. She agreed there were opportunities for sensationalism, but asked the media reps to be responsible in their reports.

This bailout comes at a time when we can least afford it. The government has had to recalculate the budget twice and oil has dropped from over $150 to less than $50 per barrel. The budget has gone from $50B to $44B with a planned deficit.

Time to prep people. It’s getting serious.

For those who haven’t started, now is the time to get your beans, bullets and band-aids stockpiled. It’s better than insurance, it’s assurance.

- Trini Funshooter

Gov warns: social instability ahead

The government, through the Finance Minister has “warned of threats to social stability as the Government moves to make further budgetary cutbacks as a result of the continuing global financial crisis.”

“…threats to social stability…”. In what forms would these threats appear? How do we, average citizens, prepare for such threats? How do we defend against them? Is there a comprehensive plan to deal with said threats? Will the citizenry suffer like we did in the 1980s? George Santayana’s oft-quoted words, come to mind: “Those who cannot remember the past are condemned to repeat it.” Will we really repeat the mistakes of the 80s, as some are predicting? Will the coming period be known as ‘1980s 2.0’ among local and regional economists?

Resilient communities should survive well. Now is the time to revisit our firearms laws, allow the law-abiding (and mentally healthy) citizens to arm themselves defensively, and institute compulsory national service for our restless youth. There is no room for idle hands, nor idle minds in this period of transition.

Pay attention to agriculture. It is an area that could generate a positive spiral. Skills learned, food security for communities, entrepreneurs developed, healthier individuals, less demand on the public health system, less cost to government. If more individuals are armed, then agricultural communities can institute their own ‘farm watch’ programs–with co-operation from the police–to deal with praedial larceny. Less demands on professional law enforcement.

Neigbourhood watch groups will need to be reformed, with laws allowing armed citizens to patrol their own neigbourhoods in concert with each other and the police.
Community policing with ‘teeth’. Bandits injured during altercations with members of these legitimate groups, should be prosecuted and rehabilitated. NWGs members should be provided with professional counseling–rather than prosecution–after such traumatic incidents. Consistent, continuous, standardised training and practice in a number of skill sets will be vital.

A civilian defense body, with grassroots support, can be born out of this trying period. This would be a part of the solution to potential social instability. Perhaps in partnership with the TT Cadet Force, TT Defence Force, TT Police Service, the Office of Disaster Preparedness and Management, the Special Anti Crime Unit and the relevant government ministries.

Who knows, perhaps with innovation (we invented the steelpan), expertise (we have many MBAs, PhDs, MDs, Engineers), resolve (despite the seemingly insurmountable hurdles, and controversy, Carnival is enjoyed every year, by tens of thousands) and the will to survive (just look at some of our older politicians) and thrive, 2010-2020 can be the period that history records us as reinventing ourselves as a sovereign nation and people, whilst providing a model for other small nation states to emulate.
- Trini Funshooter

Budget Day

Today the 2008-2009 Appropriation Bill will be read in Parliament. For the first time in our nation’s history it will be introduced by a woman; Finance Minister Karen Nunez-Tescheira. AirgunsTT congratulates Minister Nunez-Tescheira, and wishes her well in her first Budget reading.

We’d also like to draw her attention to the high cost of airguns and related expenses. One glaring example comes to mind. A spare magazine for the 15 shot FX Revolution cost US$20-30 retail in the US, but is sold here for TT$1,000! The dealer has expenses such as sales tax, shipping, 40% customs duty etc., but even with the most liberal calculations, and allowing for a 100% profit, this should still be sold for less than $700. But that’s for another post. Hopefully, we can alert Madam Minister about our plight, so that she can alleviate some of the strain that T&T airgunners feel in the 2009-2010 budget.

We’d also like to invite her to join us on the range any day she feels like. We promise her that if she hasn’t yet shot airguns, she’d love it. We have seen numerous hoplophobes become shooters after only a couple minutes of safety instructions followed by a few minutes of target shooting. Yes, air gun shooting is fun, indeed. That’s the main reason we do it. The fun factor.

While on subject, we have seriously archaic laws drafted in the stone age regarding airguns. Will the Minister of National Security please look at these laws again? Most airgun manufacturers around the world no longer produce smooth bore airguns. Some suggested relevant changes:

1. Allow present (and future) airgunners to own rifled airguns.
2. Allow present (and future) airgunners to own .22 airguns.
3. Allow present (and future) airgunners to own multiple airguns.
4. Allow present (and future) airgunners to keep tools, spare parts, equipment and supplies necessary for maintenance of the guns we own.
5. Allow present (and future) airgunners to set up workshops, courses to produce airgunsmiths.
6. Give tax relief to airgunners where possible, especially for hardware and training.
7. Have the Planning Ministry incorporate airgun ranges in all new HDC and other planned communities.
8. Introduce airgunning to Form One students at all secondary schools, perhaps with MILAT involvement.
9. Encourage local steel industry to look at the manufacture of pellets for local and regional sales. As far as we know, there is no competition here, and it is an opportunity to be a foreign exchange earner. Perhaps IAC (International Airgunning Centre)? Why not? At least regional! We have experienced shooters (even Olympic level), coaches, shooting administrators, technical persons. Leverage this resource.

Happy Budget Day. Happy Republic Day.

- Trini Funshooter