Latest update March 20th, 2025 5:10 AM
Latest News
- Guyana’s oil growth boosting regional economies– CDB Director of Economics
- Suspected outbreak of Hand, Foot and Mouth Disease in Region Four
- Israel launches first ground offensive since Gaza ceasefire collapse
- Sod turned for $665M expansion of St. Stanislaus College
- Pensioner jailed for raping child
Local businesses being neglected; foreign companies given preference in oil sector – Business Chamber complains
Kaieteur News – Local content, at its core, involves companies utilising as much as possible, indigenous goods and services for their operations as well as the transfer of skills, knowledge and technology. Since assuming office, the People’s Progressive Party/ Civic (PPP/C) government has pledged to ensure local content is achieved especially in the infrastructure and petroleum sectors.
However, local private sector organisation, the Georgetown Chamber of Commerce and Industry (GCCI) has aired complaints about what it deems as the preference of foreign companies and the bypassing of local companies when it comes to executing projects in the oil sector.
In a statement to the press yesterday, the business chamber noted the “overwhelming number” of infrastructure work that is being executed by foreign-owned companies. Further to this, GCCI highlighted the “high volume” of trucking, logistical and other support services, which are being operated by foreign-owned companies, particularly as it relates to the oil and gas sector.
Against this background, the chamber wrote, “The GCCI has been in receipt of several complaints from its membership of cases in which they are being bypassed for work in favour of the aforementioned category of companies. This occurs in spite of the indigenous Guyanese enterprise being both commercially competitive and having the technical capability.”
While the Chamber reiterated that it remains supportive of foreign investment in Guyana, it was quick to note that this should not be done at the expense and displacement of indigenous Guyanese companies.
“The Chamber has been encouraged by the posture of the government as it relates to local content and calls on the government to table Local Content legislation before the end of the year,” the GCCI said.
President of the GCCI Timothy Tucker has been militant about local content both in his professional and social media life. Almost daily, Tucker calls for the Government to enshrine into law the local content legislation.
Earlier this year, the Vice President, Dr. Bharrat Jagdeo said that the government is carving out entire sectors for Guyanese in the oil industry. In other cases, where Guyanese do not have the capacity to supply all of the services, the Vice President said that the government will impose quotas.
Multiple Ministers of Government have told the private sector that while the government is doing its own studies to determine how Guyanese can service the needs of the industry, the business service organisations, such as the GCCI and the Guyana Oil and Gas Energy Chamber (GOGEC), the private sector should do independent studies.
However, the studies and quotas cannot be of much use if they are not enshrined in law. Multiple experts have warned Guyana that a local content policy, without enshrinement in law and enforceable penalties, has no teeth. And for the past six months or so, all the government has been saying that it is “finalising” the local content legislation before it goes to Parliament. The National Assembly is currently in recess, which comes to an end this month.
ExxonMobil has said in the meantime that it is not waiting for legislation to make use of Guyanese talent and services. Exxon’s Country Manager, Alistair Routledge said it will be moving almost all of its supply work from Trinidad & Tobago to Guyana come 2022.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
No immigrant should feel safe in America today
Peeping Tom… Kaieteur News- There was a time when an illegal immigrant in America could live in the shadows with some... more
If Guyana’s President Ali is the “Zelensky of the Caribbean”, who is the Putin?
Antigua and Barbuda’s Ambassador to the US and the OAS, Ronald Sanders By Sir Ronald Sanders Kaieteur News- In the latest... more
Weekend Cartoon
