Caroni Lands - Part III

Policy and transparency
 
Published Thursday 27th May, 2004
 http://www.raymondandpierre.com/articles/article17.htm

This week we conclude the series on Caroni by considering the proposals for its future. The principal document to which we have referred is the UWI position paper issued in July 2003 called: “A Framework for National Development: Caroni Transformation Process.”

As we said in the previous two columns on this subject, it is unclear what is the Government’s policy on the use of these lands. The principal concern stated by Government was to avoid the consistently high levels of subsidy required to keep the loss-making sugar industry going. The potential of the land to spur national or regional developments has not been publicly addressed and, given our political schisms, the silence on this will naturally feed a sense of insecurity on the issue.

The UWI report was prepared in collaboration between a variety of academics and external parties, including the then Agriculture Minister John Rahael, president of the sugar workers’ union, and Utharo Rao, the head of the company set up to administer these lands, the Estate Management and Business Development Company (EMBD).

The most refreshing thing is that there is a determined effort to look beyond the immediate concerns of the players and see the future of these lands as a broad development issue.

• Key issues

Heterogeneity: This is the bold step of acknowledging our national diversity – in people, flora, fauna and land types – as national assets to be exploited for the peoples’ benefit.

Democratic involvement: That the development of these lands cannot be the sole preserve of any government.

Long-term planning: The recognition that the use of this land must take into account the needs of the generations yet to come.

Development funding: A progressive system is suggested for the selective use of lands to allow a great degree of autonomous funding for long-term development.

National planning: The National Physical Development Plan is seen as being vital to proper control of these lands.

New development options: A fertile variety of these are discussed in areas like livestock, new types of housing settlements, national parks and tourism, nutrition and food security.

• Main concerns
  • Policy formation:

Our policy on these lands must be formed in the most open and non-partisan manner possible.

The old formulas will not do since this issue has the potential either to be a source of new national development possibilities or to be generations of confusion and chaos.

The choice is ours.

• Policy monitoring:

Whatever series of policies we develop must be transparent and capable of constant monitoring. In today’s world of information management, we must improve our performance in this area.

In earlier research for another column, we were able to establish the levels of spending on housing over the last decade, but unable to get any idea as to the number of units built.

We need to improve the transparency of our public administration if we are to avoid more confusion.

• Non-partisan administration:

Whatever the structures we put into place, they cannot be partisan or all-powerful. We need to safeguard against the twin dangers of blind loyalty, usually associated with political appointees, and the possible corruption of permanent appointees.

The operations need to be guided by policy and transparency; the managers of the process need to be capable of recall if their performance is found wanting.

• Cross-party and creative management:

There must be a bias against releasing these lands on the basis that “anyone can apply” since this would give precedence to those with deeper pockets. We must recognise that this is no guarantee of equitable or better quality development. In view of the long-term potentials and challenges posed by Caroni lands, the price-based approach cannot deliver the required results.

• Pricing policy:

On the question of price, we need to ensure that, if lands are sold or leased, they are properly priced. Let us be clear here. Some users will need to be given land on concessionary terms, and they should be obliged to use the lands for the intended purposes. Others will be sold land on competitive terms and these purchasers would also need to be monitored to ensure compliance with the agreed plans for the area.

We can all remember the situation in Signal Hill at Tobago a few years ago when State lands were to be sold for residential use. There were calls for reduced prices for a variety of reasons; the lands were eventually sold at less than open market value. The size and quality of the houses in Signal Hill would imply that the owners are not needy people; this episode ought to be a warning as to the dangers of improper pricing.

Next, we return to the resource allocation discussion started last week with the Roystonia housing development.

Caroni Lands — Part II

 
Published Thursday 13th May, 2004
http://www.raymondandpierre.com/articles/article15.htm 

This week we will be examining the various considerations which would come into play in devising a policy for the redistribution of Caroni’s lands.

We need to locate this entire series of questions in the context of land redistribution. The Caroni discussion is about the government having the responsibility to divide these valuable assets — belonging to all of us, including generations to come — in our nation’s best interest.

Land plays a central role in building and holding wealth. Virtually every local success story has a chapter or two on the important part property played in that ascension. Some of the stories are all about property— chapter and verse.

Insofar as we are discussing property here, this is a pregnant moment. The December 1986 elections seem to have started the present phase of short-term governments but these are issues in need of long-term planning.

Key decisions

Role of land redistribution

The real issue here would be the policy of the government in terms of wealth distribution. The release of this surplus land could be seen as an opportunity to redress some of the pressing problems flowing from our unequal access to land and living space.

The present publicity given to the squatters’ issues is only the tip of the iceberg and the disturbing images will not go away unless the fundamental issues are dealt with.

The choices here could be contrasted between the distribution of land to our economically successful citizens in the hope that lasting employment might be created or the allocation of land to those who are without, so that the housing shortage might be eased. Both of these processes would need to be managed to avoid the pitfalls of the past.

Timing of land release

The point was made earlier that the Caroni land belongs to all of us—including the generations to come—so the successful management of this large-scale and unique land distribution would need to include some substantial reservations of land for future needs.

Claims of former Caroni workers

In the last week we saw that former Caroni workers have taken their claims for land allocations to the High Court with respect to promises made by the political directorate at the time of the company’s closure.

Of course, we will be closely observing the case and judgment, but even if the workers’ claims to land allocations are upheld there will be other critical aspects of that policy to decide.

Is it good public policy to give away valuable assets? I am not saying that that could not be the case if there were strategic national interests to be served.

If the land is to be allocated on favourable terms—ie at less than market value—then that has to be in accordance with some national target or goal such as food production or long-term employment.

If that is to be the allocation policy for these lands then we need to ensure that there are effective safeguards.

We are against the allocation of these lands for some stated policy only to find it resold or developed without regard to the purpose stated in the original grant. (See clawback clauses)

FTAA

A fortnight ago we spoke of the FTAA and its role in our medium-term future. There are further possibilities here. If we enter the FTAA without detailed discussion or negotiation, would our ability to allocate these lands be restricted?

Put another way, even if there is a High Court victory for the former Caroni workers, will our FTAA obligations allow us to favourably redistribute these lands? Might such a programme not be seen as unduly favouring local producers? 

One size fits all

Another area for concern is that the land allocations should take place within a flexible series of arrangements to cater for the correct values of these valuable lands.

There has been an unfortunate pattern here of some critical areas of land allocation falling into a one-size-fits-all trap. A good example of that is that there are valuable lands in the city of Port-of-Spain which are currently being leased at fixed rates per sq ft of with no regard being had to location or value.

One has to say that Plipdeco and CDA are public bodies with dynamic land management policies for their valuable properties.

We would hope that Caroni’s lands come under such proactive and beneficial management.

Next, we will be examining the various proposals for the uses of this land.

Caroni Lands — Part I

Published Thursday 6th May, 2004
http://www.raymondandpierre.com/articles/article14.htm 

Caroni (1975) Ltd was closed down by the government on August 1 2003 — Emancipation Day. The loss-making State enterprise was closed amidst much comment and concern as to the future of the workers, their communities and of course, the land.

Despite the range of expressed concerns and long-term national issues arising from this action, there has been no strategic statement from the government on the future of these lands. There have been many reports and reviews of Caroni’s operations.

Much public discussion of its failings and naturally, most of these have been tinged with politics. That is no bad thing. Our question now has to be: is there a plan for Caroni’s lands?

While this column is not focussed on the workers and community situation, we cannot consider the elements separately. The people have a right to expect proper consultation in the use of this land. Indeed, it is impossible to have any real development without the input and commitment of stakeholders.

This week we will limit ourselves to a description of the present position and over the next two weeks we will deal in turn with the present proposals for and the possible potential of these lands.

The present position can be outlined as follows: 

Where are the lands:

When we talk about the Caroni lands what do we mean? I have put in a map showing the areas in which these lands are located so as to give some idea of the locations.

The areas in Caroni’s ownership stretches from Orange Grove (near Trincity) in the north to Princes Town in the South; these include property at Mayaro and “down the islands.”

How much land is there?

The Caroni estate comprises over 75,000 acres and while some of this has been kept in sugar cultivation, there is still a vast area which has been released for other uses.

Caroni’s land within the national land bank

There is research which suggests that only nine per cent of our country’s land area is available for development. These estimates were done by excluding heavily-forested or swampy land and those areas reserved for agriculture. The nine per cent includes the developed areas we now live in.

The Caroni lands make up just under six per cent of T&T’s entire land area. Although part of the surplus Caroni lands will no doubt be reserved for agriculture, it is clear that the release of these lands has the potential to have a deep and long-lasting effect on the national real estate market to begin with and much more to follow. 

The Plan

I have just visited the Ministry of Agriculture’s Web site and there is no indication of the thinking behind the future of the surplus lands.

While it is clear that the sugar-growing business was losing huge amounts of money every year, we would not like to think that there is no plan for the use of these lands. We will be discussing the possibilities in the next fortnight. 

Party politics

The present political situation is itself a very important part of any such discussion. Apart from the egos of the parties involved and the obvious factors of racial voting patterns with the knife-edge victory of the PNM – I think less than 3,000 votes separated the parties — there is a greater danger. We are all aware of the terrible fate which is said to await “a people without a vision.”

The point here is that we might become consumed in a series of timewasting and petty arguments which could blind us to the enormous opportunities for national and regional development which this unique moment offers. Sad to say, but all the ingredients for confusion are present. Can we rise to the occasion?

Our nation’s interest demands that we recognise that the Caroni lands are too big, too important and too valuable to be the preserve of any single group or political party.

There is apparently a consensus within the political directorate (both parties) that foreign investors are a vital ingredient for national development. Whatever your view of that view, it goes to show that consensus is achievable.

Can our rulers find it within themselves to reach a consensus on this critical series of issues? The national interest and our future generations demand no less.

Next week we move onto the proposals for the Caroni lands.