00:00Former Finance Minister Winston Dukaran says the implications of nutrients closure extend far beyond one company,
00:08adding that it affects NGC and the other ammonia plants.
00:13He believes nutrients decision exposes the economic risks of uncertainty in the energy sector
00:19and raises critical questions about the government's negotiating strategy with investors.
00:25He says the budget must address how the country will respond to fallout
00:30while safeguarding the continuity of production across the sector.
00:35The news that is coming out on the gas sector is that in the next short term,
00:42there's likely to be an increase in gas supply.
00:45So what we are facing is a transition, a transition between now and then.
00:50Whether then it's in 2027 or 2028, that will depend on the empirical situation as it stands.
00:59So what is important is a negotiation strategy to overcome the transition,
01:04to hold on to the productive capacity that you have,
01:07and provide the necessary support during that transition
01:11so that the country can continue with its productive capacity intact.
01:16But managing the immediate fallout is only part of the challenge.
01:20The former central bank governor argues that diversification can no longer remain an aspiration
01:27repeated from one administration to the next.
01:30He tells the Morning Edition,
01:32we must focus on diversification in energy, manufacturing and in finance,
01:39noting that the financial sector has shown tremendous growth over the years,
01:44but right now it is at a standstill.
01:47The evidence coming out of the Monetary Policy Report, which was recently published,
01:53would suggest that consumer spending is on a decline.
01:58And therefore the chances of getting further diversification in the financial sector
02:05has been stalled at this point.
02:07So I would expect that the Minister of Finance will address that issue
02:12to see how he can reintroduce greater business sector spending.
02:19As attention turns to Monday's fiscal package,
02:23Dukaran says the country needs a budget that goes beyond balancing the books
02:28and lays the foundation for sustainable economic growth.
02:31He argues that despite expectations of improved revenue in the coming years,
02:37there has been little evidence of substantial measures to move the economy forward.
02:42Now if the budget relies on trying to satisfy the public desires to have lower taxes and so forth,
02:54which I doubt will happen in this particular case,
02:56then it will not be able to generate that confidence.
03:00So you are right, this is not a new problem.
03:03This is a continuing problem.
03:05But for the last two years,
03:07we have not seen the substantial foundations for a movement out of it in the public arena.
03:15It may well be that it has taken place,
03:17but it is not yet in the public arena.
03:21Nicole M. Romani, TV6 News.
