Home Top Stories PSC calls for recommendations on enhancing local content law to be adopted
– wants TVET to be available to Grade 8 students to build technical workforce
As efforts are underway to review the First Schedule of Guyana’s Local Content Law, the Private Sector Commission (PSC) is urging the Local Content Secretariat to adopt several of its recommendations that are aimed at further enhancing the legislation.
This call was made by PSC Chairman, Paul Cheong, in his review of the Commission’s 2022 performance.
According to Cheong, advocating for local content in the oil and gas sector remains high on the PSC’s agenda.
In December, an assessment of the first schedule of the Local Content Law was conducted to look at the 40 services, that oil and gas companies and their subcontractors must procure from Guyanese as prescribed in the Local Content Act.
The first schedule of the Local Content Act sets out the minimum threshold and level for local content levels in relation to the procurement of goods and services. There are 40 areas, with local participation up to 100 per cent in some sectors.
Ahead of that review, the PSC held a Local Content Forum in November during which local businesses put forward several recommendations they would like to see incorporated into the law.
“That report has been submitted to the Local Content Secretariat and the Private Sector Commission is looking forward to seeing a number of those recommendations taken on board,” Cheong stated.
According to the Chairman, since the enactment of the Local Content Law in January 2022, Guyanese businesses have increased their capacity to service the industry and continue to do so. As such, he contended that it is time for those targets to be revised to allow more local businesses to provide the goods and services required in the oil and gas sector.
The PSC, the Chairman added, welcomes the Government’s commitment regarding the drafting of regulations and guidelines to accompany the Local Content Act and stands ready to work with the administration as well as key stakeholders to ensure that these are put in place at the earliest.
“Even with the current legislation, we call for greater monitoring and enforcement. Only through this will there be compliance and a serious effort at effecting local content,” he stressed.
The PSC had first lobbied for the 40 services to be increased at the Local Content Forum last November.
Cheong pointed out that the capacity and skills of Guyanese have expanded with many companies investing heavily in this and establishing partnerships to boost local capacity.
But Natural Resources Minister Vickram Bharrat had pointed out that the capacity deficit still exists and should be analysed beforehand.
“We need to recognize that there is a capacity deficit in Guyana. It is a fact. Nobody is to be blamed, because we are moving at such a speed sometimes it is hard to keep up. So, we need to ensure that we build the capacity to truly benefit from local content. The Government is open to revising the schedule, but do we truly have the capacity?” Minister Bharrat had asked.
Building technical capacity
In his statement, however, the PSC Chairman said that the Private Sector has not lost sight of the lack of skilled labor in the technical areas. He acknowledged that there continues to be a high demand for ventilation and air conditioning technicians, diesel mechanics, electricians, heavy-duty machine operators and drivers, to name a few.
To this end, Cheong revealed that the Commission continues to discuss this matter with a view to coming up with short, medium, and long-term solutions.
“In the interim, the PSC would like to see more collaboration with educational institutions to have the school curriculum revised in a manner that allows Technical Vocational Education and Training to be available to students from Grade 8,” he stated.
To complement this shift in technical development, the Chairman noted that the PSC, via its membership, is open to facilitating Apprenticeship Programmes to provide the practical experiences to accompany the theoretical discourse in the classrooms. With this approach, he stated that Guyana could see hundreds of persons being trained and ready for employment from the age of 16.
According to Cheong, “It allows them to be well acclimatized to Guyana’s production and manufacturing operations, thereby making a smooth and effective transition to Private Sector operations. The time has come to create a new Guyana – let us start with our young minds!”
Nevertheless, the PSC Chairman pointed out that 2022 was a busy year for the Private Sector with local companies working tirelessly to build capacity, establish relationships, form partnerships, and formalise business plans to operate in a burgeoning oil and gas economy.
He declared that the private sector intends to play a major role in the growth of Guyana, which is already underway. However, the PSC Head charged that focus is placed on present opportunities whilst preparing to take advantage of those yet to come.
“As Guyana’s economy catapults the nation forward, the need for a vibrant and strong private sector is paramount in meeting its demands,” he stated.
To this end, Cheong said that the PSC, through its members, has been engaging in consultations for which several budgetary measures were drafted for the National Budget 2023. These measures, he added, are designed to bring relief to businesses and Guyanese, directly or indirectly, as well as aid in the development of the local private sector and the country at large.
Going forward into the new year, the Chairman said the PSC will continue to play its role in promoting a conducive environment where businesses can flourish by working with all stakeholders to address the needs of the business community.
On this note, he announced that in 2023, the PSC will be hosting a sensitization forum on Initial Public Offering – going public.
“We believe that having Guyanese companies go public would assist in raising capital to transform local businesses and the economy at large… 2023 is set to be another busy and exciting year for us. We look forward to working further on the many initiatives to stimulate private sector development,” Cheong posited.