GCCI reiterates call for local content legislation

Aug 07, 2019 News

The Georgetown Chamber of Commerce and Industry (GCCI) has reiterated its call for local content legislation.

Nicholas Deygoo-Boyer

President of the GCCI, Nicholas Deygoo-Boyer, in a statement, noted the importance of such legislation in providing local companies with a footing from which to engage regional and international companies coming to Guyana to operate in the oil and gas sector.
According to Deygoo-Boyer while competition is encouraged, the importance of having the right framework in place to leverage and encourage local initiative must remain at the forefront.
The businessman added that “Guyanese businesses are being told to ‘fight’ and to be competitive while still waiting on legislation that, by design, should function to enable competitiveness in a disadvantaged environment.
“Local content legislation functions primarily to protect and promote the development of indigenous companies by facilitating a level playing field.
“Delays in the process of legislative enactment do not bode well for local firms and their ability to participate in the supply chain of the oil and gas sector.”
He noted further the onus is on the government to strategically address obstacles that hinder private sector development including, but not limited to, access to financial capital and attaining technical expertise.
“Local content policies are not only limited to regulating the number of locals employed by foreign companies, but more importantly, they provide a pathway to ensuring capacity development through the transfer of technology, skills transfer and training.”
Deygoo-Boyer stressed, too, that local content legislation is also necessary to guard against shell companies that are registered in Guyana.
The businessman explained, “These are locally registered companies which barely own assets, perform services, and export profits. Ultimately, the call for local content legislation is tantamount to a request to share the benefits of the oil and gas industry with the local population – Guyanese must benefit from their own natural resources and national patrimony.”
He urged that Government must be mindful of its rhetoric regarding local content legislation, pointing out that while indigenous Guyanese businesses are being forced to navigate an entirely new industry without policies and legislation in place to guide and protect them, foreigners are readily receiving benefits such as tax holidays and tariff holidays.
“The chamber is calling on the government to provide incentives for local businesses to reinvest their funds, starting with a local content legislation. The chamber supports the promotion of foreign direct investment, and also, local reinvestment.
“To this end, we look forward to working with the various government agencies and ministries to recommend policy and legislations that will help to achieve growth in both areas and earnestly anticipate the finalisation of the local content policy as a first step on the road to local content legislation.”
The GCCI President’s statement came in wake of comments by Finance Minister, Winston Jordan, who recently spoke about the long-awaited local content legislation.
He said that while it is important, the Guyanese private sector “should not make it the be-all and end-all.”
Minister Jordan had insisted that companies coming to Guyana to invest and to conduct business in the oil and gas sector are not waiting for local content and other legislation.

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