With just about two weeks to go until the Government presents its eighth budget, the Prime Minister says there are considerations for increasing the minimum wage to assist citizens in the lower income bracket struggling with the increasing cost of living.
However, Dr Rowley says an increase can have the unwanted effect of increasing inflation. The minimum wage is $17.50, and Finance Minister Colm Imbert in August said an increase was being looked at.
"I don't want to pre-empt the Minister of Labour and the Minister of Finance on this but I would say we are considering it because it is the waterbed effect: you squeeze one side and the other side bulges but we really are cognisant that people on the lower end of the earning spectrum need some relief but that relief, you have to be careful that it doesn't threaten their opportunities.
"The best thing we have been able to do in managing this kind of problem is to manage inflation, keep the value of the dollar in your pocket at a level that it does not become worthless."
Speaking at a post-Cabinet media conference at the Diplomatic Centre in St Ann's after Cabinet's three-day retreat, Rowley said globally, people have to deal with the rising cost of living.
He said locally, Government subsidises utilities, noting there are many parts of the world where this is not done.
Rowley said the main driver of TT's inflation was food importation.
"..So much of our food is imported, and even when we produce local foods, the enthusiasm to consume it is not there, so we are trying to encourage that."
He said the Ministry of Health was leading the campaign to encourage healthy eating but citizens do not seem interested.
"We eat a lot of processed foods, a lot of the inputs on the food itself is imported and has to be paid for with foreign currency and in an environment where there is some shortage or slow availability of foreign currency, there are upward pressures in prices."
He said Government was also encouraging youths to become involved in agriculture and in projects to grow more fresh produce locally.
He said when his administration took office in 2015, VAT was lowered from 15 per cent to 12.5 per cent. However, he said, those who needed relief the most did not benefit.
"I am convinced by the examination I have done and by keeping my eyes and ears on the ground, that made no contribution in the broad sense to the people who were looking for relief. The bulk of that two per cent that we took off VAT was kept by those engaged in selling things."
He said during the pandemic, Government borrowed $3 billion to pay VAT refunds and admitted the collection system for VAT was not efficient.
The Prime Minister said at the retreat, every ministry and its priorities were discussed.
"One of the reasons why we had to do this is to ensure that we keep our feet on the ground and our thoughts close to our skulls, understanding that the country's resource base is not as bountiful as it was in an earlier time, and therefore decision-making going forward, while
