Energy economist Gregory McGuire warned yesterday that there must be consultations with the Oilfield Workers Trade Union (OWTU) before Government rolls out strategies for the restructuring of state-owned Petrotrin.
McGuire, a lecturer in Energy Economics and Strategic Planning at the University of the West Indies, said Prime Minister Dr Keith Rowley’s address to the nation on Sunday was on point as it outlined the bleak state of Petrotrin which owes $2.75 billion in corporate taxes. He agreed that the situation at the company cannot be allowed to continue.
“I await the report to see how the Government proceeds with Petrotrin. I think it is necessary to have dialogue and bring the unions to the table to determine how we are going to correct what is happening at Petrotrin and salvage what is left of it because I do not believe we can sit and wait on high prices to relieve Petrotrin of its problems,” he said.
However, he does not think privatizing Petrotrin is the answer.
“As nationals we are quite capable of running the industry. I think the Government and labour have to agree and the union has to make adjustments and understand that life and the company cannot continue as before,” he said.'
Asked whether political interference and top heavy management had contributed to the problem, McGuire said: “Apart from political interference we have political patronage in which people are hired based on party affiliation and those very people are members of the union and the union defends these people. Over-staffing is definitely a problem. In some areas you have over-staffing and other areas you have under-staffing”
He said aging infrastructure is another huge problem for Petrotrin.
CEO of the Energy Chamber Dr Thackwray Driver said he is also looking forward to seeing how Government addresses Petrotrin’s issues.
“The energy sector has been through a difficult period and we are seeing a lot of activity due to take place in next few years in offshore gas sector which is encouraging. However, the current problems remain and there are serious issues which affect the viability of Petrotrin. We are looking forward to hearing more information on the strategies which they will use to create a stable future,” he said.
Driver said privatization is a good option and asset integrity must also be addressed.