No guarantee scrap metal trade will be resuscitated by November

Oct 28, 2016 News

It had been announced in August, last, that the scrap metal trade would have been reopened in November

Minister of Business, Dominic Gaskin

2016. However, yesterday Minister of Business Dominic Gaskin said that he cannot guarantee that that will indeed happen.
Responding to a question about the resuscitation of the trade following a presentation of the Ministry’s 2020 strategic plan, Gaskin said, “We are working to try to get it to happen. It is still a long way from being concluded, so I can’t guarantee that it will indeed happen.”
The Minister said that he would be able to give a better answer on the matter sometime next week, because the required legislation and regulations still need to be concluded.
Additionally, he said that one of the problems which need to be addressed, is that there is no scrap metal unit to regulate the trade. He said, “That (unit) has to be budgeted for and put in place. That requires cabinet approval as well as a supplementary financial appropriation. So there are a number of things that have to happen.”
The Business Minister said that ultimately the government cannot allow an unregulated trade to carry on business, more so with the kind of past the scrap metal industry has.
“It was proven in the past to be detrimental to a lot of businesses operating as well as private individuals. People are stealing manhole covers, people are stealing grill work. Everything is getting stolen and exported as scrap metal, so the trade needs to be regulated.”
The trade was closed on June 15, 2015 to facilitate a forensic audit which was completed in December of that year. Chartered Accountants Ram and McRae, who conducted the audit, had recommended that the legislation governing the local industry is in need of an update.
It was highlighted that in the old Metal Dealers Act 91:08, there was no provision for the collection of export fees. Despite this, the auditors found within financial statements, records of the unit’s income, described as export fees.

Govt. wants the scrap metal trade to be completely regulated.

In February 2013 there was an accumulated sum of $142.8M which had been transferred from an account in the name of the then Ministry of Trade, Industry and Commerce at the Bank of Guyana to a Republic Bank account in the name of the Scrap Metal Unit.
According to the auditors, this sum was incorrectly recorded as export fees.
Moreover, the auditors said that there needed to be a complete revamp of the trade, after consulting relevant stakeholders.
In response to the temporary ban on the trade, the Guyana Metal Recyclers Association had asked the government to curb an alleged illegal trade of the metals. The organisation had said that before the closure, the industry was second to none, but since closing, it had developed into a lawless exercise, with claims that material was being collected and smuggled abroad through a number of ports, including to neighbouring Suriname.
Yesterday, Minister Gaskin said that with the right legislation, regulations and a regulatory body in place, the industry can be transformed into a world class process. Two of the biggest markets for exported scrap metal from Guyana are China and Vietnam.
“Scrap metal doesn’t have to be some underworld dirty operation. It is something that is a very useful industry. It removes unsightly scrap metal from the environment. It creates jobs; it creates employment for a lot of people. It also brings in export earnings, so we certainly want to support the industry, but we can only support the industry with proper legislation and proper regulation. That is what we are working towards. If it takes a little longer than we thought just to get it right, I believe that it is worth it.”

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