per cent in energy sector activity in the first quarter of 2013, following flat output in the previous quarter, growth was still lacklustre. according to the latest labor market data from the central statistical office, the unemployment rate fell to 4. 9 per cent in the second quarter of 2012 from 5. 8 per cent in the second quarter of 2011. more recent data on retrenchment notices suggest that employment conditions may have subsequently deteriorated. retrenchment notices filed with the ministry of labor, small and micro - enterprises increased almost 16 per cent in the first five months of 2013 when compared with the corresponding period in 2012. the central government continues to conduct expansionary fiscal policy aimed at stimulating domestic economic activity. latest data from the ministry of finance and the economy indicate that the central government recorded a deficit of $ 1. 4 billion during the first eight months of fiscal year ( fy ) 2012 / 2013, compared with a surplus of $ 1. 3 billion for the same period one year earlier. capital expenditure, which is the main instrument of the government ’ s investment programme to spur economic growth, reached $ 3. 4 billion and was slightly above levels recorded in october 2011 to may 2012. unless government significantly picks up the pace of capital spending, its overall budgetary stance could prove only mildly expansionary at the end of the fiscal year, which is just three months away. provisional data from the ministry of finance and the economy show that gross public sector debt remains within manageable levels. at the end of march 2013, public debt ( excluding securities issued for treasury bills and open market operations ) increased to 45 per cent of gdp, but still well within the 50 per cent limit considered a prudent debt burden. the increase in public debt resulted mainly from the issuance of bonds to compensate former policyholders of clico. i wish to point out that as policyholders convert their bonds to bis central bankers ’ speeches equity holdings in the clico investment fund, the government can retire this part of public debt, lowering the overall public debt stock. after reaching double digits around the middle of 2012, headline inflation moderated in the latter part of the year, and eased further to around 5½ per cent in may 2013. the slowdown in inflation was largely associated with a steady fall in food price inflation, especially as softening global grain and cereal prices eased the inflationary impetus from abroad. the removal of value added tax ( vat ) on selected non - luxury food items in mid -

complex in corinth, south trinidad. 2. ansa mcal ’ s $ 400 million state of the art clay plant, which is expected to be the single largest investment in the construction this year. 3. a us $ 600 million joint venture among neal and massy, russian firm severstal international and metaldom from the dominican republic to build a vertically integrated iron and steel complex on union estate, la brea. 4. neal and massy ’ s project development agreement with mitsubishi corporation, mitsubishi gas chemicals company and the government of trinidad and tobago to construct and operate plants to produce methanol and dimethyl - ether ( dme ) at union estate, la brea. the project is expected to cost roughly us $ 850 million. i commend these business leaders for their vote of confidence in the country ’ s economic prospects, but it is not enough. we need the entire business community to stop watching and commenting on the game from the sidelines. ladies and gentlemen, there is a view that business must stop feeding from government. and business must start feeding government. i remind you of the damning words that ralph maraj in his december 31, 2012 column in the trinidad express entitled “ the private sector can ’ t dance ” had for the business community : “ for the past few years, most of our business elite have been sitting on their resources, marking time but still accumulating ; only a few venturing to take some measured risk to stimulate the economy ; most waiting, as always, for the treasury to provide new feeding. and they continue to absurdly shout to the government ‘ diversify, diversify ’, as if they had no responsibility in this critical national need. ” peter o ’ connor in his sunday june 30 newsday column entitled “ lacking leadership ” echoed similar concerns. “ which businessman here, with the banking system drowning in liquidity, has the vision and capability to diversify our economy instead of begging government for ‘ corporate urp ’ ”? since the central bank is not the only game in town, i take this opportunity to remind the entire business community of their responsibilities and urge them back onto the field. my appeal to you is to take a longer term perspective and invest in people and technology to raise our growth level and to make our growth more inclusive. play the game passionately, intensely and fearlessly! bis central bankers ’ speeches conclusion in conclusion, i wish to reiterate that trinidad and tobago has been na