Local Content law will not protect companies delivering mediocre goods, services

While the Local Content Act is designed to increase local participation in Guyana’s oil and gas sector, Natural Resources Minister, Vickram Bharrat, has made it clear that it will not shield companies that provide substandard goods and services or charge uncompetitive prices.

The minister made the remarks on Monday during the opening of the World Trade Center Georgetown (WTCG) International Trade and Investment Conference, where he also encouraged Guyanese businesses to raise their standards and strengthen their competitiveness to capitalise on opportunities being created across all sectors of the country’s growing economy.

“We say that to our private sector that the local content legislation is not to protect you in anywhere. The local content legislation was never designed to inculcate or encourage mediocracy in terms of the provision of goods and services at exorbitant prices. Rather we say to our local private sector be competitive. Be competitive not only locally but regionally and internationally. Both in quality and price,” Minister Bharrat expressed.

In this regard, he warned against businesses being driven only by profits, noting that such a mindset can cause companies to fail.

“Let us don’t be driven by profits alone. But let us be driven too by the service, by the mutual respect for each other, by ensuring that we deliver quality goods and services at competitive prices. And that is key and important,” the minister said.

He emphasised that businesses that invest equally in improving their standards and strengthening their competitiveness will be better positioned to generate maximum profits. The minister contended that focusing only on making profits is a “failed method.”

“The main objective of a business is to satisfy your customers’ wants and needs with quality goods and products. And when you do that, you will make a profit. But if that is not your main objective, believe me, you’re down the road to failure. Your business will fail. So, I say to you if invest in Guyana, then ensure that the service or the product that you’re providing is of high quality, is at competitive rates, and then I can assure you that you will be establishing a profitable venture. So, let us have respect for the people that we serve and not only the intention of making a profit. Because I personally don’t believe that is the right approach,” the minister added.

Raising standards

Against this backdrop, the Natural Resources Minister underscored the importance of businesses operating within the Caribbean Community (CARICOM) investing in raising their standards in order to compete globally.

“I think for too long, CARICOM especially, have been looked at as producing, I don’t want to use the word ‘substandard’, but I’ve been producing goods that are not to the highest standard. We need to change that together. We need to change that together. We need to show that CARICOM can be competitive at all levels,” he expressed.

However, the minister contended that, “CARICOM should not only be seen as the persons who empty the waste off of cruise ships. But rather to fuel those cruise ships in every way possible…Because I think we have built that capacity over the years and we now have that expertise. We have that skillset and we have the right partnership. We have the right partnership now and that is important”.

Partnerships’ importance

Meanwhile, Minister Bharrat also emphasised the importance of partnerships as the country’s economy grows. In fact, he noted that international businesses seeking to enter the market are always encouraged to join forces with Guyanese.

“When a foreign investor comes to Guyana the first thing we say ‘consider partnering with the local private sector’. Whether it’s in the oil and gas sector. Whether it’s in the mining sector, the forestry, agriculture, construction, manufacturing. That’s the first thing we say to them: ‘consider partnering with our local private sector’. And we have seen how well that have worked over the last few years. And we want to continue with that formula. As a government that is the formula that we see greater success for our private sector as well as for an investor coming to our country,” he noted.

Enabling business environment

Also delivering remarks at the event was Chief Investment Officer and Head of the Guyana Officer for Investment (Go-Invest), Dr Peter Ramsaroop, who highlighted that the Peoples Progressive Party Civic (PPP/C) administration continues to create an enabling business environment.

“Government is here to enable you to make money and I’m not shame to say, our job is to enable, make sure the regulations are right, make sure we put efficiency in place, make sure we have laws to protect your business…we wanna make sure we meet international standards in every process and item and agenda that we work with you on,” Ramsaroop said.

The International Trade and Investment Conference brings together representatives of both the private and public sectors, local and international business communities, and stakeholders, as they facilitate discussions to examine potential trade investments in Guyana. The event, running from October 19-23, will focus on delivering working, practical and hands-on learning sessions, in an effort to provide participants with a better understanding of how to do business in Guyana and to explore key sectors with potential investment such as energy, agriculture, real estate and tourism. It is being held as the WTCG marks its one-year anniversary.