Prime Minister Kamla Persad-Bissessar has announced plans for the Government to divest several state-owned assets, including National Quarries Limited, Hilton Trinidad Hilton, the Magdalena Grand Beach and Golf Resort and the La Brea Industrial Development Company Ltd (LABIDCO).
Speaking at the sod-turning ceremony for a new $500 million Marriott resort at Rocky Point, Tobago, yesterday, Persad-Bissessar said the State has a poor track record of operating commercial enterprises, hence the decision to divest its hotel assets, adding that greater private-sector involvement is needed to drive economic growth.
The resort, being developed by Superior Hotels, is expected to be completed by 2029.
Congratulating Superior Hotels chairman John Aboud on the investment, Persad-Bissessar said private-sector projects are critical to stimulating economic activity and creating development opportunities.
“The business of government is not in running hotels, and this is where private-sector investment is vital. Why is a government running a hotel?” she said.
Persad-Bissessar revealed that expressions of interest will soon be invited for the divestment of both the Magdalena Grand Beach and Golf Resort and the Trinidad Hilton, both of which are wholly owned by the State.
The Government recently acquired full ownership of the Hilton amid concerns that the international hotel chain could withdraw its brand from the property.
She criticised the performance of several state-run enterprises, arguing that Government resources are often not managed efficiently.
“Most things that the government invests in, they bust. True or not true?” she said.
Referring to the Magdalena resort, she added: “Why is the government running a hotel and running it into the dust?”
The Magdalena recently furloughed more than 50 workers for at least one month, citing low occupancy levels and reduced business activity.
The Prime Minister also signalled plans to divest other state-owned entities, including National Quarries.
“Government running National Quarries to the ground. They prepare aggregate. It costs them $350 and then they sell it for $150. That’s making any sense?” she said.
Persad-Bissessar further suggested that investors consider acquiring LABIDCO as part of the Government’s divestment drive.
“Any person interested, we want to divest LABIDCO. Talk to your friends and families. A government cannot succeed by spending all the money, creating businesses, creating entities and dust to bust,” she said.
