MINISTER of Energy and Energy Industries, Stuart Young, has expressed confidence that Trinidad and Tobago will recover the majority of the money spent on the Tobago oil spill.
Young said the Government has been successful in its application to International Oil Pollution Compensation (IOPC) funds, a United Kingdom-based agency.
The minister made the statement yesterday, the third day of the Standing Finance Committee in Parliament.
The oil spill occurred off the coast of Tobago on February 7, and central government has since distributed $50 million to the Tobago House of Assembly (THA) for costs associated with the clean-up efforts.
The IOPC provides financial compensation for oil pollution damage that occurs in member states, resulting from spills of persistent oil from tankers, its website stated.
Member of Parliament for Pointe-a-Pierre David Lee referred to Line 28 ‘Other contracting services’, and asked “2024 had a revised figure spent of $217 million, 2025 you have budgeted $85.9 million could you say what was the large amount that was required in 2024, given that you had only allocated $22 at the beginning of 2024 fiscal?”
In response, Young explained that “under this particular line item that was in respect to the unfortunate oil spill in Tobago which took place February of this year.”
Lee sought clarification on whether the sum was used for the costs associated with the oil spill clean-up, to which Young confirmed it was.
Young said the “expenses are associated with the clean-up of the oil spill and containing the oil spill”.
When asked by Lee whether there are outstanding expenses, the minister stated: “Correct, there are still some expenses that are still owed but fortunately we were successful in the submission to the IOPC earlier this year, I think in April this year, and they have agreed to cover all the reasonable and legitimate cost coming out of that oil spill and that process has begun. In fact, we should be heading back up to the IOPC in November for further engagement with them but they were here up to a few days ago and that process is going well in terms of the country receiving reimbursement for the costs associated with the oil spill.”
In response to Lee’s question on whether the expenses spent for the oil spill will be recovered, Young expressed confidence, saying, “Certainly, the hope is that the vast majority would be recovered for the taxpayers.”
In June, Minister of Finance Colm Imbert noted that the Tobago House of Assembly requested $153 million for the clean-up exercise arising out of the oil spill in Tobago. He explained the increase in the allocation to the THA by $50 million. In the meeting of the Standing Finance Committee, Imbert stated that while the THA submitted a request for reimbursement and additional funding for the clean-up exercise, the technocrats in the Budget Division of the Ministry of Finance, after “interrogating” the documents submitted by the THA, “found justification for $50 million”. As a result, $50 million has been allocated to the Assembly, Imbert said.