The Private Sector Commission (PSC) on Thursday hosted a forum at the Pegasus Suites and Corporate Centre in Kingston to garner feedback from stakeholders on the implementation of the Local Content Legislation passed in December 2021.
During his presentation, the Head of the Private Sector Commission (PSC), Paul Cheong used the opportunity to not only congratulate the government on its commendable performance in securing more benefits for Guyanese through the Local Content Secretariat but also called for the appointment of the Local Content Advisory Committee.
According to the Act, the advisory body would help the Local Content Secretariat with the discharge of its functions which includes developing and maintaining measures for the effective implementation of local content by contractors, subcontractors and licencees.
Its members would be selected from the following agencies: Office of the President; the Ministries of Natural Resources, Finance, Home Affairs, Labour, Foreign Affairs, Tourism, Education, Public Works; the Guyana National Bureau of Standards, the Guyana Revenue Authority, the Attorney General’s Chambers and Ministry of Legal Affairs; Guyana Office for Investment; Private Sector Commission, Labour Union, National Toshaos Council, Guyana Bar Association, Parliamentary Opposition, and Local Petroleum Organizations.
Cheong also recalled that the PSC has been advocating for local content in the oil and gas industry since the discovery of oil in 2015. In this regard, the PSC Chair said the commission had established a Local Content Advisory Group which has been meeting monthly with the Local Content Secretariat to discuss key issues. He said these ranged from addressing the inordinate payment periods for small and medium-sized businesses, contract bundling, and fronting to get companies registered.
Since the implementation of the First Schedule of the Local Content Act which ring fences 40 categories of work for Guyanese participation, Cheong said the business community has made several observations. He said it is the belief of the commission that the time has come for expansion of the categories which include rental of office space, accommodation services, janitorial services, catering, laydown yard facilities, security, local accounting, insurance services, customs brokerage services and pest control.
“The capacity and skills of Guyana have expanded beyond this. Many companies have invested and established partnerships for more sophisticated works. The Commission is pushing for more opportunities for Guyanese businesses. It is now up to us to up our game to deliver quality services in keeping with the standards and requirements of the oil and gas sector,” expressed the PSC Head.
He also welcomed government’s recent statement regarding the drafting of regulations and guidelines to accompany the Local Content Act. Cheong said the commission stands ready to work with the government to ensure that these are put in place at the earliest to enhance and strengthen the legislation.
Presentations were also made by Natural Resources Minister, Vickram Bharrat and Senior Petroleum Coordinator, Bobby Gossai.
Bharrat in his remarks was keen to remind that the legislation will continue to undergo periodic reviews to ensure it is strengthened and loopholes for abuse are closed. He was keen to note however that the commission must temper its expectations when it comes to targets since the country is not only gripped by a labour shortage but also a capacity deficit.
As for Gossai, he said the Secretariat has kept an open line of communication with the private sector as it is seen as a critical stakeholder and the engine of growth. Frequent collaborations he said have allowed the regulatory body to better understand the role of all stakeholders in the sector and the measured approach that must be taken to better analyze the impacts of oil investments.
He was keen to remind that Guyana’s Local Content Act prioritises the use of Guyanese nationals and companies in the procurement of goods and services for the enhancement of the value chain of the oil sector.
The Act also serves to enable local capacity development and provide for the investigation, supervision, coordination, monitoring and evaluation of, and participation in, local content in Guyana.
