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PSC concerned over impact of court ruling on business sector
Kaieteur News – The Private Sector Commission (PSC) has expressed concern over the impact that the recent decision of High Court Judge, Justice Sandil Kissoon will have on the business sector.
Justice Kissoon on May 4, 2023 ruled in the Collins & Whyte vs The Environmental Protection Agency (EPA) case that ExxonMobil and its subsidiary Esso Exploration and Production Guyana Limited (EEPGL) must provide parent company guarantee to safeguard Guyana against the devastating effects of an oil spill. The Judge ordered that this be done within 30 days of his ruling. Failing which, the company’s permit to operate within the Stabroek Block would be suspended.
PSC Chair: Komal Singh
The Environmental Protection Agency (EPA) and ExxonMobil have since appealed the ruling of the High Court judge.
In a statement to the press on Saturday, the PSC noted, “We are aware that both the government, through the Environmental Protection Agency, and ExxonMobil, have filed appeals against the judgment of Justice Kissoon, which we look forward to ultimately clarifying the legal issues at stake with a view to have an amicable resolution.”
In the release, the PSC pointed to the infrastructure and transformative developments which have already taken place in wake of the capital investments made by Exxon and its partners.
According to the PSC, there are already quite extraordinary for the country of less than a million people, amounting to date, of US$20B in the Stabroek Block and committed investments amounting to some US$45B.
The body said too that the private sector has already begun to benefit hugely from these investments which are projected to exceed some US$200B over the lifetime of the project.
Further, the PSC noted that “This influx of massive amounts of Capital investments and Foreign Direct Investment has led to the unprecedented demand of unskilled, skilled and technical labour resulting in significant increases in salaries in the Private Sector alone. Consider four years ago, unskilled labourers earned GY$3,000 to GY$4,000 per day; today, that same labourer earns between GY$8,000 to GY$10,000. This significant increase in wages is replete in all spheres of employment across Guyana as a result of the oil and gas sector.”
It stressed that thousands of small and medium scale businesses that have been created or developed in Guyana over the past few years and are finally gaining a foot hold in a thriving and dynamic economy.
“These businesses have benefited from tens of billions of dollars being spent annually across all sectors and across all regions of Guyana.”
“Consider also, the substantial road and bridge capital works of highways extending across the length and breathe of our country, opening up the massive potential for agricultural and mining development and transportation of goods and services.
It is inconceivable that any sensible Guyanese would consider reversing this massive progress but, yes, every sensible Guyanese must also consider the absolute need to also sustain and protect our environment and guard against the unlikely and highly improbable event of an oil spill and its consequential fallout,” the PSC said in the statement.
Added to this, the PSC noted that the government has confirmed that it is actively involved, through the EPA, in the process of determining that ExxonMobil Guyana and its Stabroek Block partners are, first, technologically committed to the prevention of a major accident of any kind occurring and have agreed to seek affiliate guarantees and provide financial resources committed to meeting their obligations, should there be such an occurrence.
The PSC called on citizens to be reassured by the commitment made by the President of ExxonMobil Guyana, Mr. Alistair Routledge, at his 19th May Press Conference, that ExxonMobil is prepared “at any time to do the right thing”.
The PSC said that it believes and supports the fact that significant strides and attention is being paid by all stakeholders in Guyana to ensure continuous and sustainable development.
“The Private Sector Commission will continue to advocate for national development in an environmentally safe manner, which benefits all Guyanese throughout the length and breadth of Guyana. Guyana’s Oil and Gas Industry is the vehicle which promises to take us to that realization,” the body added in the release.
- business, Environmental Protection Agency (EPA), Esso Exploration and Production Guyana Limited (EEPGL), Komal Singh, sector
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