Home' Trinidad and Tobago Guardian : December 4th 2014 Contents DECEMBER 2014 • WEEK ONE www.guardian.co.tt BUSINESS GUARDIAN
NEWS | BG7
Despite the challenge experienced in obtaining
US currency, staying competitive is not an issue
for him, as it is not about the number of units
sold, but more about the quality offered to the
Camps-Campins warned that quality does not
come without a high price. His company targets
commercial and residential customers. In order
to reach his customers in residential areas, social
media is preferred.
"The one I can quantify (sales) better is social
media. For instance, I put a post of Facebook and
the next few days I was able to sell three chairs,
that cost me US$60. I know if it wasn t for that
US$60 I placed on Facebook to promote that post,
I wouldn t have sold those three chairs."
While social media has been a successful tool
for advertising his business, it hasn t surpassed
traditional media for advertising. One complements
the other when it comes to advertising and cap-
turing the target market.
"With social media, you can get an instant
response but you are not reaching everybody, you
are only reaching a selective target."
Some of his projects come from the energy and
"We have supplied light fixtures to some of the
government buildings that have gone up in town.
We have done a lot of lighting in the San Fernando
Teaching Hospital. We supplied fixtures for an
NGC project. They called it their tank wagon
fuelling station. We lit the entire thing; that was
nice for us because we beat out a lot of people in
Asked to comment on the tendering process,
he said there were a few businesses who responded
to the tender.
"From the time we got the specification and
did the tender: it took about a year and a half from
the date the tender crossed our desk to the date
it was, in fact, awarded. It took some time fulfilling
items and making sure things were right exactly
what they wanted."
Camps-Campins said that operating an online
business and shutting the doors to the physical
business is not an option, as research shows that
customers still like to feel and touch an item before
buying anything, especially anything that is expen-
sive. Having an online business alone, would mean
having less staff and he is not willing to let go his
Even though his business is booming in Port-
of-Spain, expanding by having another branch in
Chaguanas is not an option right now.
"It is a big undertaking to open a new store.
"We ve been growing top line and nobody is
stealing. We have a good team. To invest a whole
pile of money to open a business in that area and
not have the team to do it, it will fail before it
Having a successful business means having a
low staff turnover. Employing a total of 12 people,
including four women who are all working on
flexitime. His philosophy is about give and take
when it comes to employees.
"Treat people well, they don t work for you,
they work with you. You treat them well and they
treat you well. If you start off being aggressive
and ramming human resource down their throat
and making them feel they have to work from
eight to four, you are starting on the wrong foot."
From Page 6
T&T loses $25 million in sup-
plemental petroleum tax
(SPT) for every US dollar the
price of oil falls, RBC
Caribbean group economist
Marla Dukharan has said.
In her November RBC Caribbean Economic
Report released Monday (December 1),
Dukharan said: "RBC estimates that for every
US$1 change in the price for T&T s crude oil
(using the IMF proxy)---assuming production
constant at 80,000 barrels per day (bopd)---
the fiscal impact from the supplemental
petroleum tax (SPT) on oil alone, would be
$25 million for the full fiscal year. Note that
SPT revenue averaged 18 per cent of ener-
gy-derived fiscal revenue in fiscal year (FY)
2011 and 2012, according to the T&T Extrac-
tive Industries Transparency Initiative reports.
"The prices T&T actually gets for its crude
oil and gas vary and are publicly unknown.
The IMF uses a simple average of Brent, West
Texas Intermediate and Dubai Fateh as a
proxy for T&T s oil price, and a simple average
of Henry Hub and Indonesian liquified natural
gas (LNG) for T&T s gas price."
Finance and Economy Minister Larry
Howai told a November 20 post-Cabinet
news conference that, on average, 54-58 per
cent of energy-derived fiscal revenue comes
from gas. This figure contrasts with the 70
per cent (gas) and 30 per cent (oil) proportion
Central Bank Governor Jwala Rambarran gave
Monday in Chaguanas.
T&T produces 800,000 barrels of oil
equivalent per day (boepd), of which only 10
per cent is oil, Howai told Parliament Fri-
Earlier, on November 26, at a Rotary Club
of St Augustine meeting, Dukharan showed
a chart demonstrating that until 2011, fiscal
revenues were more closely tied to oil prices
than to gas.
"This has been changing apparently, based
partly on the decline in oil production seen
since 2006," she said. This is a very telling
development, given that the effective tax rate
is higher for oil---65-70 per cent---production
than it is for gas, 57 per cent.
She told Rotarians to consider that, accord-
ing to Wood Mackenzie, for oil production
sharing contracts (PSCs), the government-
tax take averages 80 per cent.
"When our price of our oil is above US$90,
the supplemental petroleum tax (SPT) is 33
per cent of gross oil revenue for marine pro-
duction and 18 per cent for land and deep
water production, plus 0.2 per cent on the
premium over US$90 per barrel.
"For T&T s basket of crude, the IMF is
projecting prices well above US$90 for 2015
and 2016," she added.
"RBC is projecting West Texas Intermediate
(WTI) will fall to an average of US$96 this
year and US$86.50 in 2015."
Answering the question: how will the
recent declines in oil and gas prices affect
fiscal revenues, Dukharan said: "As we have
discussed earlier, the energy sector accounts
for over one-third of fiscal revenue."
She later added, "Our oil prices had not
fallen below US$90 since November 2010.
In October 2014, the average was US$80.54.
So we have lost the 0.2 per cent additional
tax on the premium over US$90."
Dukharan said at current production levels
of just over 80,000 bopd, the government
would have lost about $250 million for the
fiscal year from the SPT alone, if these con-
"And SPT accounts for only 18 per cent
of the $21 billion the government hopes to
collect from the energy sector this fiscal year.
"Only 20 per cent of the T&T economy
is not explained by the energy sector and
government spending. Historically, roughly
80 per cent of the economy s growth has
been explained by oil price movements. The
agriculture sector accounts for less than 1.0
per cent of GDP, the manufacturing sector
is roughly 6.0."
T&T loses $25m for
every US$1 fall in oil
Economist Marla Dukharan:
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