Georgetown: Attorney General and Minister of Legal Affairs, Mohabir Anil Nandlall has expressed that the government’s Local Content Bill is “fundamental to nationhood and to the interest of every single Guyanese.”
The Attorney General stated this during his interview with the National Communications Network (NCN) last week when the government tabled the Local Content Bill in the National Assembly.
“Guyanese have an opportunity protected by the law and ensconced in our legal system to get their dues from the natural resources of our country,” Minister Nandlall stated in his interview.
The Attorney General noted that the preparation of the Local Content Bill was not an easy task, since the government was dealing with completely new legislation. In addition, he said the oil and gas sector is new to the economy and Guyana’s people. It is against this backdrop that the Senior Counsel noted that the government sought guidance from local content experts in the Caribbean and elsewhere. To this end, he said Guyana drew heavily from jurisdictions such as Ghana, Nigeria, Norway, Trinidad and Tobago and Uganda.
“This Bill has benefitted from a tremendous number of consultations and engagements, both nationally and internationally.”
Notably, the Attorney General highlighted that the Bill seeks to strike a balance between companies operating in the oil and gas industry and indigenous Guyanese businesses. On one hand, he said, the oil and gas sector believe that there should be no local content; that they should be allowed contractual freedom; to hire and procure goods and services from whom they wish.
“On the other extremity,” the legal affairs minister said, “you have a local business community who believe that they should, and rightfully so, predominate the sector and they should provide goods and services to the sector exclusive of any other provider, and that they should provide all of the employment needs of that sector.”
It is in light of this predicament that he emphasised the need for the government to strike this “vital balance” in the competing interests.
The Local Content Bill lays out 40 services that oil companies and its sub-contractors must procure from Guyanese companies and Guyanese nationals by the end of 2022. For instance, by the end of the upcoming year, Guyanese should provide 90% of office space rental and accommodation services; 90% for janitorial, laundry, catering services; 95% pest control services; 25% medical services; 20% aviation and support services and 75% local food supply. These are just a few of the services highlighted in the schedule.
The Attorney General pointed out that Guyana lacks the required capacity to offset the demands of the oil and gas sector, but that the Bill has taken steps to address this.
“We hope to get there and the bill has mechanisms in place that provide for sector building capacities, but until we get there, we must accept those constraints and limitations,” he said.
As part of the Local Content Bill, the government is proposing the establishment of a Local Content Register said to be developed and maintained by the Local Content Secretariat. The register will comprise Guyanese for employment and Guyanese nationals and Guyanese companies from which goods and services may be procured.
This Bill is still to be debated in the National Assembly. The government has committed to ensuring that it is passed and made into law before 2022.
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