After a 19 months shut down of the scrap metal industry, dealers have been given a limited window to re-start their trade as Government continues to iron out new regulations for the sector.
Scrap metal trade in Guyana
Minister of State Joseph Harmon disclosed last week that Cabinet had approval for the limited restart of the scrap metal trade. He explained that as a result of the trade being close for almost two years, inspections have revealed that there is a large buildup of scrap metals, particularly across Region Four (Demerara-Mahaica).
“Cabinet has therefore approved the Ministry of Business’ proposal to allow exporters to ship out the existing stocks for a limited period of three months,” Harmon announced. He outlined that Cabinet had accepted the proposal from Business Minister Dominic Gaskin back in September 2016 to restart the scrap metal trade on the basis of a new menu of measures to be put in place.
“The process of putting together new guidelines and regulations by the ministry has been ongoing and the ministry now feels that it is in a position to authorize a limited restart to the scrap metal trade,” Cabinet Secretary had stated.
The Ministry of Business, in anticipation of the resumption of the scrap metal trade, met with key stakeholders to discuss proposed changes to the operation of the industry. The Ministry sought to streamline mechanisms with respect to trade and licensing.
The Scrap metal trade was suspended in June 15, 2015 due to a forensic audit of the Scrap Metal Unit (SMU) which monitors the trade.
In 2016, Ram and McRae produced a report on its findings from the probe, revealing a string of irregularities including the mishandling of packing procedures for scrap and the expenditure of millions of dollars in the Scrap Metal Unit within the Central Housing and Planning Authority.
To this end, government removed the responsibility of the trade from the Central Housing and Planning Authority to the Ministry of Business.
