Local content legislation no excuse for poor service

Oct 28, 2024 News

Kaieteur News – While the Local Content Act prioritises Guyanese nationals and companies within the oil and gas sector, it should not be used to justify poor-quality goods and services.

This was emphasised by Minister of Natural Resources, Vickram Bharrat on Friday last as he addressed the second Local Content Forum, organised by the Private Sector Commission (PSC) at the Marriott Hotel in Kingston, Georgetown.

In a Department of Public Information press release Minister Bharrat was quoted urging Guyanese companies to avoid using local content legislation as a pretext for supplying substandard products at inflated prices. He emphasised that businesses must not rely on legislative protection alone, but rather strive to enhance their competitiveness and maintain high-quality standards.

“The local content legislation is in no way protection to provide poor services or poor-quality goods at inflated prices. We should guard against that and we should…ensure that we use it to up the kind of standard and quality that we can produce and to show that we can compete with regional and international companies,” he stressed, according to DPI.

The minister noted that the government has worked to establish a favourable business climate for local companies to flourish, primarily through the Local Content Act. However, this support comes with the expectation that businesses will remain competitive and deliver quality products and services. Minister Bharrat highlighted that subpar quality and excessive pricing would undermine government efforts, deterring foreign investors.

According to the DPI he reaffirmed that the Local Content Act is designed to foster the growth of the Guyanese private sector, granting companies the opportunity to expand and meet the demands of regional and global markets. “I think the private sector owes it to us as a country and as a people to compete and compete well. That is what we want to see,” he said.

The Local Content Act establishes baseline requirements for foreign and local firms operating in the country’s oil and gas sector, to hire Guyanese and source local materials. The act defines 40 sub-sectors including transportation, accommodation, legal services, marketing, and public relations. It states that a percentage of these goods and services must be provided by Guyanese.

In the first half of this year, over 454 new hires were recorded within the 40 specified areas. The act also provides for the establishment of a Local Content Secretariat, which ensures that these local companies are further prioritised in the procurement of goods and services. Already, a Local Content Mobile App is in its final stages of development, to streamline the employment process in the oil and gas sector.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

forum, Guyanese, Local Content, organised, prioritises

Latest News