Latest update December 4th, 2024 2:40 AM
Draft Local Content Policy favours oil companies… No sanctions in place for non-compliance – GCCI
Three drafts and two local content experts later, there are still no sanctions for non-adherence, in Guyana’s Local Content Plan. First Oil is months away, and the draft plan, which details how much Guyanese will be able to participate in the sector, needs to have provisions which ensure compliance by International Oil Companies (IOC).
EPA Head, Vincent Adams
Executive Member of the Private Sector Commission
GCCI President, Nicholas Deygoo-Boyer
This was widely criticised at a recent roundtable discussion, held by the Georgetown Chamber of Commerce and Industry (GCCI) at Duke Lodge, Kingston.
Principally, the issue was noted by GCCI President, Nicholas Deygoo-Boyer. He said that the GCCI would like to see the policy implemented as soon as possible.
He explained, “I think that [it] can really kick off a new wave of industrialization in Guyana. And we have to recognise that we are behind in certain areas of development. So we are going to need the policy’s help to get us over a few hurdles.”
But he went on to say, of the third and current draft, “Impositions of penalties for non-compliance with local content targets, the policy does not set…”
The concern was echoed by Executive Member of the Private Sector Commission (PSC), Ramesh Dookhoo, who asked “If there is no provision for a breach, why do we have a policy?”
Head of the Environmental Protection Agency (EPA), Vincent Adams, explained, “When you tell ExxonMobil [et al] ‘you’ve got to give priority to local content’, that doesn’t mean anything.”
It is necessary, Adams explained, that there is something which ensures compliance with its targets.
Adams noted that there are many complaints and excuses companies would make to shy away from adhering to the targets set out in the policy.
He suggested, in addition to penalties, there could on the other hand be incentives to encourage compliance by oil companies.
Past GCCI President, Deodat Indar, in calling for assurance for the success of the policy, said that it is necessary to have legislation. He said that, without legislation, it simply won’t work.
The lack of penalties in such a policy is dire news, as Guyana is only months away from First Oil. And with oil, the local content policy is an important element to ensure that Guyanese benefit from resource exploitation, said Attorney at Law, Charles Ramson Jr.
While revenues from oil go to the Government, Ramson, who is Chair of the GCCI Petroleum Committee, said that the advancement of local content ensures that the benefit goes directly to the people.
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