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Guyanese need legislative protection for local content, as foreign companies get preference – Ramson
Former Member of Parliament and Oil and Gas Consultant, Charles Ramson, is of the opinion that if the Government proceeds on its current trajectory, Guyanese will benefit the least from the oil offshore Guyana, and foreigners will be the ones smiling.
He said this during a recent interview with Kaieteur News.
Former Member of Parliament, Charles Ramson
The politician was adamant that he is not talking off the top of his head, “I consulted with several businessmen; they are hardly benefitting.”
Ramson said, “What’s happening is a national scandal. As it stands, two Trinidadian-owned companies have been awarded big catering contracts, customs brokerage contracts, freight forwarding contracts and even ‘meet and greet’ contracts.
These are some of the most basic goods and services that are required for the oil industry and companies owned by Guyanese people bid for those contracts and were not awarded.” The companies that were given the contracts are hiring Guyanese to do the work.”
Ramson said that some of the contracts are multi-million US dollar contracts awarded for three-year periods to these non-Guyanese owned companies. “What’s worse is that the supply vessel moves from Trinidad to the drilling ships offshore so a lot of the goods and services are not even sourced locally in Guyana.”
The politician said that no one is expecting Guyanese to be given contracts to provide services that they are incapable of, “but everyone knows Guyanese can cook. We have brokerage companies and are more than capable of handling a few meet and greet exercises. But guess what is lacking? Guyana lacks a government that is serious about local content.”
Ramson said that any government that wants to represent the interests of its nationals, will find it its duty to advance a serious way forward to ensure that there is local content. “But, the recently published second draft of the local content policy has the concluding paragraph by Minister Trotman:
“The Local Content Policy (LCP) will be implemented over time and in tandem with the growth of the industry. At present, regulations will not be promulgated, but may become necessary as the industry unfolds and expands, and impetus is needed to steer the process or to solidify gains.”
Ramson said that while Minister of Natural Resources, Raphael Trotman, is not keen on legislation, “it seems as if legislation is the only way to compel local content in Guyana.”
The former MP was adamant that Guyana needs more than just “a policy.” He said that otherwise foreign companies and foreign employees will continue to dominate the oil and gas scene for Guyana
“This government is failing its people. The high paying jobs are already going to foreigners; most of the money will be spent in their home country and not Guyana. The goods and services needed by oil companies are already being awarded to companies not owned by Guyanese people,” said Ramson.
Ramson said that several oil producing companies around the world have made it a legal requirement to have nationals own a certain percentage of all companies incorporated.
“Other countries have even gone as far as making it a legal requirement for the country to have a percentage of the oil companies actually extracting oil from their jurisdiction.”
Even if there are concerns about the lack of specialists, the legal requirement can be phased; starting small and gearing over time as the industry develops properly. But the fact that fully owned Guyanese companies cannot be contracted for simple catering services is a total shame.
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