The fault lies with Granger Administration’s failure to finalise local content policy

Dear Editor,

Co-Chairman of the American Chamber of Commerce-Guyana (AMCHAM-G), American Ambassador to Guyana Sarah-Ann Lynch cautioned against the Guyanese push for a local content policy that is too heavy and could deter investors as it “may send a signal that some investors as well as the employment and know-how benefits they bring may not be welcome here”. This statement evoked a knee-jerk response from Georgetown Chamber of Commerce Vice-president Timothy Tucker who said “We are the Georgetown Chamber of Commerce and we have to do what is best for Guyanese businesses and that is why the Chamber has always been supportive of local content because it is what is best for Guyanese businesses…We all see that her President [Donald Trump] is very pro-local content to his country, so we are very well on track with our local content to be pro-local content”. I am of the firm belief that Ambassador Lynch, Mr. Tucker and the GCCI are venting frustration in the wrong direction.

Editor, It is the Granger administration’s failure to create any local content policy in the four years and four months since the announcement of the discovery of oil in a commercial quantity offshore Guyana that is causing widespread discontent and malcontent nationwide. The task is the remit of Department of Energy head Dr. Mark Bynoe. Bynoe has done everything else but provide a local content policy and supporting legislation. David Granger has not reacted to this non-performance in any way and Bynoe continues to operate in la-la land, holding talks with schoolchildren of all ages to explain future benefits of ‘Christian oil’ …whatever that is.

On the 25th August 2019, Dr. Bynoe released the eagerly awaited policy, which began with the disclaimer that “this policy is limited in its scope to the upstream petroleum sector and currently is not intended to address directly or in their entirety the following policy areas: Mid and downstream petroleum sector opportunities, other policy issues related to the upstream petroleum sector— such as health, safety, security, environment, community impacts, tax and fiscal matters and other petroleum-related national issues, such as national development and planning” . This poorly constructed policy led to members of the business community venting frustration. The American Ambassador responded and now we are in a tit-fortat misunderstanding.

Guyana is years away from having capabilities for basic monitoring and verification of offshore activities, we will need many foreign firms to assist us, the more complex tasks will take even longer to master. We cannot afford to succumb to xenophobic protectionism, similarly, foreign companies must be made to understand that we are not subservient, merely going through a phase of gross neglect and incompetence with the Granger administration at the helm.

Patience Madame Ambassador Lynch, Mr. Tucker et al. We will get through this soon enough.