As we all know, Trinidad and Tobago’s budget was held on October 2, 2017 with varying opinions on what was stated. However, the main issue that stole the spotlight was the reduction on fuel and electricity subsidies. As everyone knows, T&T pays a very small percent for both fuel and electricity due to such high subsidies.
Before I state my view on this, I would first like to define what a subsidy is. A subsidy is a form of financial aid extended to an economic sector which has been granted by the government. With this being said, while subsides are known to make gasoline and power more accessible to persons and, transportation as well as electricity rates cheaper, several other aspects has been casted from our minds. Therefore, it is safe to say we do not look at this in a holistic approach but, only view it as one way forward; human gain regarding the protection of “our pockets.”
Often, persons forget or discard the environment when making decisions, not taking into consideration this is the only reason you are alive. A poor environment = poor health. When we have subsidies on things such as gas, this encourage persons to use their private cars regularly, which in fact is unsustainable and contributes highly to pollution, due to the increase in carbon dioxide in the atmosphere which is directly linked to global warming. This is then linked to public health issues as a result of pollution. According to the World Health Organization (WHO), 7 million premature deaths are annually linked to air pollution. Furthermore, gas is a finite energy source and unlike sunlight, water or wind energy, fossil fuels cannot be renewed. This means that, once the gas reserves have been completely used up, there is nothing more left.
Additionally, despite several persons believe that subsidies are actually helping them; I have to say this may not likely be true. Since, many rural communities are still lacking proper energy services and are not able to get water and electricity every day. This is because energy service businesses may have weak incentives to provide access of quality energy services to the poor, mainly because of the low population densities, which makes it costly to serve remote locations, and the low incomes of the poor, who often use little energy compared with wealthier households. At the end of the day, subsidies benefit the rich (ownership of several vehicles, use of a greater amount of electricity) over the poor (greater use of public transport due to less ownership of cars, less households that use a vast amount of electricity), believe it or not.
If the government’s goal is to improve the living standards of the environment and poor, there may be other ways to do so. Renewable and green energy sources are something we as a Caribbean Island should be focusing on in 2017. The need to focus on solar, hydroelectric, wind, tidal and geothermal energy is of great importance. As it was mentioned before, once our natural resources are used up, there will be nothing left. Better transparency, planning, communication, and consultation prior to implementation of price increases are needed for success in the complete removal of fuel subsidies.
Tell me, what is your take on this?
Good read, unfortunately that change to green energy sources will be very difficult as our government is only concern with oil and gas. As far as I know, there are probably no projects or talks by our leaders to switch to alternative energy sources. I think its because they are accustom with it and the change to alternative sources are too difficult for them to invest in. Its like we have the oil and gas infrastructure already, so rather than making a new one which would be better, they won't spend the money. They not thinking long term, just short term.
ReplyDeleteWith respect to the subsidy, i agree and disagree with you on it. In that it is suppose to benefit the poor than the rich, which is not happening. Although the poor may not use as much water and electricity consumption. To my knowledge (correct me if I am wrong) we pay a flat rate for water only while electricity is pay as we use. So the poor will be feel the effects more than the rich regardless.
Anyway, I think we need new blood in the government. Although they always say children are the future leaders and stuff. No one in power gonna give up their position for the younger generation. We see it, older people who suppose to have retired are not making room. They don't want to give up their position. Our country is stuck in our old ways and you can't teach an old dog new tricks, unless that dog can. So thats my view on it.