WHAT IS THE HERITAGE AND STABILISAITION FUND ( HSF)... CITIZEN OF T&T DO YOU ABOUT THIS FUND DO YOU KNOW ABOUT THIS FUND GOVERNANCE Legislation Establishing the Fund The Heritage and Stabilisation Fund was established by the Heritage and Stabilisation Fund Act of the Parliament of Trinidad and Tobago on the 15th March 2007. Section 3 of the Act provides that the purpose of the Fund is to save and invest surplus petroleum revenues derived from production business in order to: ..... Cushion the impact on or sustain public expenditure capacity during periods of revenue downturn whether caused by a fall in prices of crude oil or natural gas; . Generate an alternate stream of income so as to support public expenditure capacity as a result of revenue downturn caused by the depletion of non-renewable petroleum resources and Provide a heritage for future generations, of citizens of Trinidad and Tobago, from savings and investment income derived from the excess petroleum revenues. Board of Governors ..... The Fund is governed by a Board of Governors that in accordance with the Act has delegated the responsibility for management of the Fund to the Central Bank of Trinidad and Tobago. ..... The Board reports to the Minister on a quarterly and annual basis through the quarterly and annual investment reports on the Fund. The Board decides on the investment objectives and approves manner in which the funds are to be invested by the Central Bank. The Minister of Finance The Minister of Finance is responsible for approving deposits and withdrawals from the Fund in accordance with the Act’s provisions. The Central Bank ..... The Central Bank is responsible for the day to day management of the Fund and provides quarterly reports to the Board. ..... The Schedule to the HSF Act details the responsibilities of the Central Bank. The Trinidad and Tobago Parliament ..... Parliament provides ultimate oversight when the Minister of Finance lays the annual audited financial statements in Parliament, at latest four months after the end of the financial year. ..... This gives the peoples of Trinidad and Tobago an opportunity to assess the Fund’s performance, thereby fostering transparency and accountability and ensuring effective ownership of the Fund by the population. Deposits and withdrawals The Heritage and Stabilisation Fund Act stipulates deposit and withdrawal rules which the Ministry of Finance must apply regarding the Fund. Deposits Sections 13 and 14 of the Heritage and Stabilisation Act outline the conditions under which excess revenues must be deposited in the Fund. Quantum: ..... A minimum of sixty per cent of the aggregate of the excess (difference between estimated and actual) revenues for each financial year must be deposited to the Fund during that financial year. ..... Estimated petroleum revenues are calculated based on defined international sources. Timing: Deposits are to be made quarterly at latest one month after the end of that quarter (quarter under the Act being: December 31, March 31, June 30 and September 30 of each year). Withdrawals Section 15 of the Heritage and Stabilisation Act outlines the conditions under which revenues may be withdrawn from the Fund. Quantum: Estimated petroleum revenues for a financial year must fall below ten percent before the Government may withdraw from the Fund. Limitations on Withdrawals ..... The withdrawal must be less than sixty percent of the amount of the shortfall of estimated petroleum revenues for the relevant year. ..... The moneys withdrawn may not exceed twenty five percent of the balance of the Fund at the beginning of that year. ........ The Act precludes any withdrawal that will reduce the size of Fund to less than one billion US dol
Posted on: Sat, 10 Jan 2015 09:30:30 +0000
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