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‘We should not become second class citizens in our own country’- Former GCCI President Oct 04, 2024 News …says local businesses need stronger protections against foreign competition By Shania Williams Kaieteur News – Former President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker has called for stronger protections for local small businesses against foreign competition, asserting that “we do not want to become second-class citizens in our own country.” Former President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker. His comments come in the wake of recent protests by residents and vendors of Agricola against the establishment and operation of Chinese supermarkets in their community. In an exclusive interview with Kaieteur News on Thursday, Tucker acknowledged the importance of foreign investment for Guyana but stressed that it should not come at the expense of small and micro businesses.  Tucker said that inadequate access to financing is a significant barrier to the growth of the small and micro businesses adding that, “The real reason small businesses struggle to grow is their lack of proper access to financial resources.” He said that foreign businesses often enter the market with substantial financial backing and competitive advantages, which jeopardizes local enterprises.  “When small businesses have to compete against foreign firms that benefit from better financing and support from their home countries, it can devastate indigenous and family-owned businesses,” the former GCCI head said. He emphasised the vital role these small businesses play in providing additional income for single parents, retirees, and families, while warning that without protective measures, they risk being overwhelmed by foreign competition. “We must safeguard them from large, syndicated foreign investors that mimic local mom-and-pop stores, as this threatens the potential for middle-class entrepreneurship and community sustainability,” Tucker said adding, “If we don’t protect these businesses at the community, regional, and national levels, we will face serious problems in the future.” Tucker urged the government to reinforce the laws that protect small businesses and called for a review of zoning and anti-competitive laws to support indigenous enterprises. “We should look at community frameworks similar to the small business associations in the United States that provide protections, tax exemptions, and access to financing for local businesses.” Additionally, Tucker proposed that the government holds community meetings to allow small business owners to voice their challenges and needs. “I envision broad consultations where each community can share its experiences, enabling us to empower local government to control the types of businesses that operate in their areas. We shouldn’t have ten foreign supermarkets within a quarter-mile radius.” He expressed concern over the ease with which foreign businesses can penetrate the Guyanese market, stating, “These companies have the resources to analyze markets and identify opportunities, which poses a threat to our local businesses. We must proactively find solutions to protect our country and its people.” Tucker reiterated the importance of supporting local vendors and businesses, particularly in light of recent initiatives like the local content law in the oil and gas sector. “We need to ensure that the vendors and small businesses that have been part of our communities for generations are not pushed aside. Finding ways to support them is crucial for the future of our economy.” Protest Earlier this week residents and vendors of Agricola protested against Chinese-owned businesses being established in the community. They fear that establishments such as the supermarkets will drive the locals out of business. Vendors voiced their apprehension about a new Chinese supermarket set to be opened at the corner of Brutus Street and the East Bank Public Road. They argue that the supermarket’s presence will threaten their small vending shops. Kaieteur News understands that these vendors would sell their products from outside of a building that was recently sold to Chinese nationals, who plan to renovate it into a supermarket. One vendor, identified only as Ms. Clark, who has been selling outside the building for over 50 years, expressed her frustration: “I can’t understand Chinese coming to put me out of my little business that I’m hustling for. I have my little house to look after; my grandchildren, and now I have to move for the sake of the Chinese coming here.” Another vendor said that the local shops have been taking care of the community. “We have a business association in Agricola where our businesses take care of our community. We don’t want them here,” the vendor said.  The man further criticized the government of Guyana for allowing foreigners to “snatch” opportunities from locals: “The government is bringing in foreigners that are not benefitting Guyanese… We can’t go to China and open a business.” Another vendor said the vendors in the community will suffer should the Chinese owned supermarket open.  “What will happen to the people that already establish their business for over the years? Yes they are going to sell at a cheaper price at the beginning and after time goes by they are going to increase,” the vendor said. Related Similar Articles

‘We should not become second class citizens in our own country in our own country’ Oct 04, 2024 News …says local businesses need stronger protections against foreign competition By Shania Williams Kaieteur News – Former President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker has called for stronger protections for local small businesses against foreign competition, asserting that “we do not want to become second-class citizens in our own country.” His comments come in the wake of recent protests by residents and vendors of Agricola against the establishment and operation of Chinese supermarkets in their community. Former President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker. Importance of small businesses During an exclusive interview with Kaieteur News on Thursday, Tucker acknowledged the importance of foreign investment for Guyana but stressed that it should not come at the expense of small and micro businesses.  Tucker said that inadequate access to financing is a significant barrier to the growth of the small and micro businesses adding that, “The real reason small businesses struggle to grow is their lack of proper access to financial resources.” To this end he noted that unlike small businesses, foreign entities often enter the market with substantial financial backing and competitive advantages, which jeopardizes local enterprises.  “When small businesses have to compete against foreign firms that benefit from better financing and support from their home countries, it can devastate indigenous and family-owned businesses,” the former GCCI head said. He also emphasised the vital role small businesses play in providing additional income for single parents, retirees, and families, and warned that without protective measures, they risk being overwhelmed by foreign competition. “We must safeguard them from large, syndicated foreign investors that mimic local mom-and-pop stores, as this threatens the potential for middle-class entrepreneurship and community sustainability,” Tucker said adding, “If we don’t protect these businesses at the community, regional, and national levels, we will face serious problems in the future.” Protecting small businesses Tucker then urged the government to reinforce the laws that protect small businesses and called for a review of zoning and anti-competitive laws to support indigenous enterprises. “We should look at community frameworks similar to the small business associations in the United States that provide protections, tax exemptions, and access to financing for local businesses.” Additionally, Tucker proposed that the government holds community meetings to allow small business owners to voice their challenges and needs. “I envision broad consultations where each community can share its experiences, enabling us to empower local government to control the types of businesses that operate in their areas. We shouldn’t have ten foreign supermarkets within a quarter-mile radius.” He also expressed concern over the ease with which foreign businesses can penetrate the Guyanese market, stating, “These companies have the resources to analyze markets and identify opportunities, which poses a threat to our local businesses. We must proactively find solutions to protect our country and its people.” Tucker reiterated the importance of supporting local vendors and businesses, particularly in light of recent initiatives like the local content law in the oil and gas sector. “We need to ensure that the vendors and small businesses that have been part of our communities for generations are not pushed aside. Finding ways to support them is crucial for the future of our economy.” Protest Residents and vendors of Agricola, earlier this week protested against Chinese-owned businesses being setup in their community. They fear that establishments such as the supermarkets will drive the locals out of business. As a result, they voiced their apprehension about a new Chinese supermarket set to be opened at the corner of Brutus Street and the East Bank Public Road. They argue that the supermarket’s presence will threaten their small vending shops. Kaieteur News understands that these vendors would sell their products from outside of a building that was recently sold to Chinese nationals, who plan to renovate it into a supermarket. Fighting for their livelihood ‘We should not become second class citizens in our own country in our own country’ Former GCCI President, Tucker said One vendor, identified only as Ms. Clark, who has been selling outside the building for over 50 years, expressed her frustration: “I can’t understand Chinese coming to put me out of my little business that I’m hustling for. I have my little house to look after; my grandchildren, and now I have to move for the sake of the Chinese coming here.” Meanwhile, another said that the local shops have been taking care of the community. “We have a business association in Agricola where our businesses take care of our community. We don’t want them here,” the vendor said.  He further criticized the government of Guyana for allowing foreigners to “snatch” opportunities from locals: “The government is bringing in foreigners that are not benefitting Guyanese… We can’t go to China and open a business.” Another vendor said that the vendors in the community will suffer should the Chinese owned supermarket open.  “What will happen to the people that already establish their business for over the years? Yes they are going to sell at a cheaper price at the beginning and after time goes by they are going to increase,” the vendor said. Related Similar Articles

Govt draws out $62.3B more from oil fund Oct 04, 2024 News – as concerns grow over transparency in spending Kaieteur News – Amid growing concerns as to what specific projects oil funds are used to finance the government on Thursday announced that it has transferred $62.3B more from the Natural Resources Fund bringing its total withdrawal to date for the year to $239.176B. Finance Minister, Dr Ashni Singh In a statement Thursday evening the Ministry of Finance said pursuant to the Natural Resource Fund (NRF) Act 2021, as amended by the Fiscal Enactments (Amendment) Act 2024, Parliamentary approval has been granted for US$1,586,150,331 (equivalent to G$329,885,563,088) to be withdrawn from the NRF in 2024. According to the ministry, in accordance with this approval, the Government of Guyana has made its fourth transfer for 2024, totalling US$300million (equivalent to G$62.394 billion) from the NRF on October1, 2024, to the Consolidated Fund. This transfer brings the accumulated withdrawals to date in 2024 to US$1.150 billion (equivalent to G$239.176 billion) within the total of US$1.586 billion (equivalent to G$329.9 billion) approved to be withdrawn in 2024. Lack of transparency Concerns have been raised about the management of the of the NRF and only recently Chairman of the Public Accounts Committee (PAC) of the National Assembly, Jermaine Figueira called for transparency in the use of Guyana’s oil money, citing the need for possible amendments to the Natural Resource Fund (NRF) Act.  Section 16.2 of the NRF Act states that, “All withdrawals from the Fund shall be deposited into the Consolidated Fund and shall be used only to finance: (a) national development priorities including any initiative aimed at realizing an inclusive green economy, and (b) essential projects that are directly related to ameliorating the effect of a major natural disaster.” To date, government has budgeted approximately US$2.6B in oil money through 2022 to 2024. The revenues earned from oil are transferred to the Consolidated Fund, blurring tracks of expenditure. Government has not identified the “national development priorities” being funded by the revenue from oil. This is particularly concerning as the legislation features no penalties for misuse of the funds. Figueira had however pointed to the need for transparency in the use of resources from the sector, urging that the NRF Act is clear on how the funds should be spent. “…we require more specifics because the Act is very clear with regards to how those funds should be spent and if you just lump sum it into the consolidated fund we need to know definitely of those funds that were transferred into the consolidated fund that are they being used for the specific purposes with regards to what the Act speaks to.” The Parliamentarian said the NRF Act may require amendments to justify transfers to the Consolidated Fund for spending across the board, rather than for specific purposes outlined in the Act. These amendments according to him are crucial to ensure there is absolute conformity with the legal requirements. He said, “Given how it is being transferred and the unknown of how it is being utilized it therefore requires some additional amendments to give greater clarity on the direction of how these funds should be directed and used.” Figueira was adamant that the public must be able to know what portion of the Fund was used for a specific project. This can be done, according to him, through the Budget documents, to certify that the funds are utilized according to the Act. Furthermore, he also shared the view that the oil money should be subjected to a separate audit. Figueira explained, “This is the most important sector and therefore a lot of attention should be directed specifically to these funds. We want to ensure that the country doesn’t suffer from the Dutch disease and therefore, these funds should be dispersed in a manner that is very responsible and therefore special attention should be directed specifically to that sector to manage the fund.” With little transparency regarding the use of Guyana’s oil wealth, International Financial Analysts worry that the revenue may not be used to develop the country and improve the lives of its poor citizens. For instance, Director of Financial Analysis at the Institute for Energy Economics and Financial Analysis (IEEFA), Tom Sanzillo had pointed out that the government has not been prioritising saving the funds generated from the industry like Norway but has instead embarked on a massive infrastructural and energy development scheme which may very well benefit its partner, ExxonMobil more than the citizens in the country. Meanwhile, the government previously said that money from the oil account is transferred directly to the Consolidated Fund which blends the various revenue streams. This means that the government is therefore unable to say what specific projects were funded by those earnings. Interest Back in July this year, this newspaper reported that the Natural Resource Fund (NRF) in 2023 generated an interest of US$86.8M, a substantial increase when compared with the returns earned in 2022. This information is contained in the 2023 NRF Annual Report, tabled in the National Assembly by the Senior Minister in the Office of the President with responsibility for Finance and the Public Service, Dr. Ashni Singh. According to the document seen by this newspaper, “Net return generated by the Fund totaled G$18,105.25 million (US$86.84 million) for the year 2023, a substantial increase of 396% (G$14,455.17 / US$69.33 million) over the previous year’s level on account of higher interest rates on overnight deposits during 2023.” An annual portfolio return of 4.824% was achieved by the Fund in 2023 compared with 1.581% in 2022. The 2023 NRF Annual Report states that Brent crude oil prices fell by 10.32% during 2023 moving from US$85.91 per barrel at the start of the year to US$77.04 per barrel as at the end of December 2023. Further, total barrels of oil produced by Guyana’s three Floating Production Storage and Offloading (FPSO) vessels totaled 142 million barrels during 2023 in comparison with 101.41 million barrels for 2022. Notably, as at December 31, 2023, the Fund accounted for inflows of US$1.6B during the reporting period, and represented an increase of 13.90% when compared with the inflows of US$1.4B for 2022. These inflows were deposited into the Natural Resource Fund account held at the Federal Reserve Bank of New York, with the exception of two profit oil payments for two lifts which occurred in December 2023, totaling US$148.91 million. These payments were received in January and February, 2024. Meanwhile, the report outlines that outflows in the form of withdrawals from the Fund totaled US$1,002.13 million in 2023, which reflected an increase of 64.92% (US$394.48 million) over the previous year’s level of U$607.65 million. Related Similar Articles

Foreigners now seeking to become Guyanese to cheat Local Content requirements – Jagdeo Oct 04, 2024 News Kaieteur News – Vice President Bharrat Jagdeo on Thursday put foreign companies on notice that the Government of Guyana (GoG) will not allow the naturalisation of overseas employees seeking to fill high paying job vacancies in the oil and gas sector. Vice President, Bharrat Jagdeo Jagdeo during his weekly press engagement was responding to a question from Kaieteur News when he revealed that “big companies” are now applying for their employees to become naturalised citizens in Guyana, claiming to have been in the country for five years. Subsequent to their naturalisation, foreigners would be able to enjoy benefits provided for Guyanese under the 2021 Local Content Act. The legislation seeks to ensure Guyanese gain employment in the sector. It also outlines a number of services that must be provided by Guyanese to the oil companies, as well as their sub-contractors. The Vice President said, “It’s our intention to close the loopholes that some foreign companies are utilizing, it’s our intention because some of them get high paying jobs so the management they have higher paying jobs for the foreigners but overtime they have to change the management so a lot of the big companies, and we will start exposing them, they are trying to get their foreign staff, claiming that they lived here for five years and to get them Guyanese nationality.” Jagdeo said government is carefully monitoring that situation. He also alerted the companies that they would not succeed in any such effort. He made it clear, “We are watching that carefully so I hope if some of them applying for it, I see some of the big companies applying for that, they are not gonna succeed. They have to give our people more opportunities and better paying jobs too. Some of these companies will do everything.” Jagdeo was keen to note that government will be moving to strengthen the legislation and expand opportunities available for Guyanese in the sector.  The VP’s comments come on the heels of a recent commentary by Attorney-at-Law and Chartered Accountant, Christopher Ram who argued that the rapid development of the petroleum sector was preventing Guyanese from enjoying the real benefits of Local Content. “Part of our problem is that we have tried to move too fast. We have moved from zero to 100 in a couple years. We don’t have the capacity so we can’t have real local content.” Ram pointed out that the Local Content Act sets out 40 areas for Guyanese to benefit from. He said this was a mere fraction given that there are about 300 to 500 types of expenditure incurred by the oil companies and sub-contractors. He said, “Only for 40 (areas) and some of them they range from 100% like for cleaners which is no big deal, Guyanese are good cleaners apparently but we can’t do the higher things.” With Guyanese being paid to do minor jobs, receiving meager salaries, the Lawyer noted that the respective percentages for the 40 areas should have been changed within a year. On the other hand, he said, “The schedule to the Local Content Act has remained unchanged. We have not taken account of experience and how it has worked compared with what we thought it should be.” When asked to comment on this state of affairs, Jagdeo said the Local Content Law was delivering major benefits to Guyanese. In fact, he pointed out that by the end of 2024, some US$700M would be invested in Guyanese businesses.  Jagdeo was keen to note that in the absence of this legislation, the country would have merely secured just about US$50M instead.  To this end, he said, “So first of all we should hail this Act as the biggest impact. We don’t even talk much about our success but this Act in itself is a great success. This Act by the end of this year will drive US$700M of business to our local companies. That’s not a small sum of money…that is major, major change and we intend to create even more room for our people provided they develop the capacity.”  Notably, he did not address the rapid pace at which the sector is being developed but noted that a revision of the Local Content Act is ongoing. Related Similar Articles

Four firms shortlisted to conduct seismic study offshore Guyana Oct 04, 2024 News Kaieteur News – Four firms including a Guyanese company have been shortlisted to bid for the contract to conduct 3D seismic surveys offshore Guyana. The Government of Guyana (GoG) through the Ministry of Natural Resources had put out a tender seeking a reputable and experienced firm to conduct 3D multi-client seismic surveys offshore Guyana. On June 27, 2024, eight companies had expressed their interest in conducting the surveys. However, during the opening of tenders on Thursday at the National Procurement and Tender Administration Board (NPTAB) office it was revealed that only four out of the eight bidders were shortlisted to continue with the bidding process. The four bidders who submitted their proposals are as follow: PSSGEO (Pre Stack Solutions-GEO) out of Norway; CGG Veritas Services UK Limited from the United Kingdom; Latitude Energy (from Guyana) in joint venture with Shearwater GEO Services Limited; and TGS Magseis of the USA. In its tender document, the Natural Resources Ministry had stated that the objective of the assignment is to acquire, process and interpret high-quality 3D seismic data to facilitate exploration and potential development of hydrocarbon resources offshore Guyana. Also the assignment is to ensure high-quality seismic data is available for effective evaluation during future bidding and licensing rounds. This publication had reported that at a press conference in July, Vice President, Bharrat Jagdeo announced that government went out to tender seeking this service and noted the importance of the surveys. “We went (at) the last auction without any 3D-seismic so we didn’t have much data for the areas. So when you have less data, people don’t put in great bids because they don’t know what is there, they can’t interpret the data.” Jagdeo said 3D-seismic may be conducted for the unallocated areas; however, this will not be paid for by the government. The data will however be shared with the Ministry of Natural Resources and other related agencies while interested oil companies will be required to pay for the information. Seismic surveys can provide crucial information on subsurface rock layers. It involves emitting acoustic waves, recording their reflections and measuring their characteristics. Through this technology, oil and gas companies gain valuable insights into potential reserves. Following the VP press conference, the People’s National Congress Reform (PNC/R) spokesman on oil and gas, Elson Low at press conference was keen to note that the revelation by Jagdeo during his presser came after government had hurriedly launched the country’s maiden bid round last year in the absence of seismic studies. The Opposition argued that seismic studies would have allowed bidders to access much more detailed information about each block. As such, Low told reporters, “There was therefore understandable surprise when the government decided to push forward with the auction without the needed studies. Now, like a child who ran to play without doing his homework, Jagdeo has to go right back to conduct the very seismic studies he neglected.” It was reported that Guyana’s maiden auction launched in December 2022 featured 14 blocks but only eight received bids. Related Similar Articles

Noise nuisance? We can’t hear yuh! Oct 04, 2024 Dem Boys Seh Dem boys seh… Kaieteur News – Dem boys hear people complaining ‘bout noise nuisance all over de place. But hold on! We love noise so much, we could feel compelled to up de volume. When yuh go to a wedding or party, yuh can’t even hear yourself think, much less have a decent conversation. De DJ playing music like he trying to wake up de ancestors, and we just dancing like we in a trance. Even wake house now, yuh does gat to be on the lookout because some people does hire big music set fuh de last night. And don’t get we started on de house parties! Yuh know dem neighbors who feel like dem is de next big thing in music? Dem blasting tunes so loud, even de cockroaches in de pantry have to hold on to something to keep from vibrating outta de house. Yuh know dem people who open de windows to “let in some fresh air,” but all dat does come in is a cacophony of bass that shakes de neighbors’ dishes. Is like a competition for who could make de loudest racket, and we all playing! But wait! De real culprits are de drivers with de massive stereo systems. Ah tell yuh, dem speakers could probably blow de roof off de car! Yuh driving along, minding yuh own business, when suddenly, yuh hear a sound so loud it could wake de dead. Is like dey have a personal vendetta against silence. Yuh in yuh car, trying to catch a lil’ peace, and here come Mr. I-Love-To-Distract-Yuh, rattling your eardrums like maracas at a carnival. And don’t forget about de cricket matches! Yuh go to de game, expecting some chill vibes, and all yuh get is horns blowing and fans shouting louder than de players. If yuh want to have a chat with yuh buddy next to yuh, yuh practically have to scream like yuh in a horror movie! “What’s dat, man?!” “I can’t hear yuh! Is it de crowd or de sound system?” Yet, in de midst of all dis, we have de nerve to complain ‘bout noise nuisance? We love noise more than we love our own peace of mind! If it ain’t music blaring, is de sound of hammers hammering, or de neighbors arguing over who borrowed who’s lawn mower and never returned it. So, what’s de fuss all about? We can’t have our cake and eat it too! If we love de noise so much, we might as well embrace it. Is like de loudness is part of our culture now, like curry and roti. So, next time yuh hear someone hollering about noise nuisance, just smile. Talk half! Leff half! Related Similar Articles