Young demands details behind Government’s US$750 million Point Lisas investment

Young Questions US$750M Steel Investment, Demands Details

Former energy minister Stuart Young has raised questions about the Government’s reported US$750 million steel investment at Point Lisas, while making it clear that he supports the reopening of the steel mill if the project proves beneficial to Trinidad and Tobago.

Speaking during a media briefing, Young described the potential reopening as an “absolute positive” for the country but argued that the public has not been given enough information to properly assess the investment.

Young focused particularly on the difference between figures being publicly associated with the project.

According to Young, information he has seen from the companies involved refers to an initial investment of approximately US$150 million, with the possibility of another US$50 million depending on how the project develops.

He contrasted that with the US$750 million figure being promoted by the Government and called for an explanation of how the larger figure was calculated.

Young said the questions extend beyond the headline investment figure.

He wants the Government to disclose what concessions have been negotiated with the investors, including whether there will be tax holidays, exemptions from import duties on raw materials, export concessions or other incentives.

He also questioned the rental arrangements for the Point Lisas facility and the cost of the natural gas and electricity that would be required to operate the plant.

Young noted that the former steel operation was a major electricity consumer and questioned whether electricity would be supplied at a commercial rate or at a subsidised price ultimately carried by taxpayers.

“What are the terms for the reopening of the steel mill?” Young asked, arguing that signing a memorandum of understanding and holding a ribbon-cutting ceremony were not sufficient for determining whether the project represents value for the country.

He nevertheless welcomed the involvement and support of the United States Government, saying it provided some reassurance around the project.

However, Young maintained that international support did not remove the Government’s responsibility to disclose the commercial arrangements.

He called for the administration to publish details showing the investment commitments, concessions, energy requirements, expected revenue to Trinidad and Tobago and other terms associated with the proposed reopening.

Young said the public should ultimately be able to determine from those details whether the agreement is beneficial to Trinidad and Tobago.

The statements represent Young’s assessment of the project and the investment figures cited during his presentation.