The property tax is a ’revenue reduction, more than a revenue raising measure’, Energy Minister Conrad Enill said yesterday.

Speaking in the 2009/2010 Budget debate in the Senate, Enill said in looking at the Review of the Economy: Estimates for 2009, it reveals that in the year 2004, Government collected $85 million in land and building taxes. He said on the basis of the ’new proposal’ (property tax) that is being put forward, Government expected to collect $72 million.

’I just want to put that on the record. There is no $1 billion activity that is taking place. The fact of the matter is that there is not an intention to use this as ... in fact this is a revenue reduction measure, more than a revenue raising measure,’ he said.

’The information is available in the Revenue of the Economy, it is there, we can examine the numbers, we can look at it and all that is really happening is that a lot more people (will be coming on the system). But we will say more on that at some other point in time.’

Enill said a total expenditure of US$800 million (TT$5 billion) would be invested in 2010 for drilling activity in the oil sector. He said there were plans to drill four exploration wells and 72 developmental wells. He said the volatility of oil and gas prices was a cause for concern.

Enill also said the country stood to lose investment if a new fiscal incentive regime is not implemented in the energy sector.

’Companies are not going to go out there unless you provide them with greater incentive,’ he stated, adding: ’We are taking the view that we want to be competitive because capital goes anywhere.’

He said Government brought a package to the attention of the stakeholders and it was with them. The new fiscal regime would target the development of ’new acreage into a different frontier’, he said.

Enill stressed that while this country was not always getting the best prices for its gas, more and more countries were finding Trinidad and Tobago’s stability of gas supply attractive.

’We are finding that people are prepared to pay for that,’ he said.

He said Government wanted to ensure people of Trinidad and Tobago get the maximum returns from investment. But he noted at the same time that as the global market changes, Government has to respond and sometimes it did not have to capacity to respond in a way it would like to.