GOVERNMENT on Friday agreed to work closer with the Guyana Manufacturing Services Association (GMSA) to find solutions to any issues affecting the sector.

At a first Inter-Ministerial Round Table with the GMSA, the association highlighted a number of issues, among them being the impact of VAT on manufacturing inputs, equipment and products; the impact of imported substitutes and the need for supporting mechanisms; the UK Environment Agency Greenheart Restriction; and fiscal supporting mechanisms.

The ministerial team comprising the Ministers of Finance, Natural Resources, Business and Public Infrastructure, supported by relevant senior technical officers, expanded the discussion to include marketing and quality assurance, integrated land use planning, training and capacity building, forest inventory, ecosystem services, certification and the utilisation of wood-waste as part of introducing renewable energy technologies.

According to a statement from the Finance Ministry on Sunday it was agreed that immediate solutions would focus on measures to address the competitiveness of known and lesser known species, clarifications on investment agreements and greater information sharing, road maintenance in light of heavy dual usage of roads, a review of the applications for VAT, and the creation of a consolidated dimensions stockyard.

Additionally, the establishment of a revolving fund, which will allow stakeholders to modernise and retool their production processes and refurbish aging capital stock was noted as part of the solution.

Moreover, government has committed to re-examining the impact of imported substitutes on the competitiveness and viability of the local market by relooking at existing tariffs and concessions.

A first follow-up meeting to the first Roundtable is scheduled to be held on August 7, to discuss the issues related to the impact of VAT on the sector’s competitiveness. The Inter-Ministerial round table forms part of Government’s coordinated efforts to support the development of the manufacturing and services sectors by engaging the private sector.

It was born out of a proposal for its formation by the Minister of Finance, Winston Jordan. The Finance Minister spoke of the round table during a recently held GMSA dinner. The proposal was accepted by the Association and then sent to Cabinet, where it was endorsed. Friday’s meeting was chaired by the Finance Minister and attended by a seven member team from the GMSA led by President Shyam Nokta.

Also present at the discussions held at the Ministry of Finance were Ministers of Natural Resources, Business, and Public Infrastructure Raphael Trotman, Dominic Gaskin and David Patterson respectively.

Director of Budget, Sonya Roopnauth, and Head of Projects, Tarachand Balgobin of the Ministry of Finance, as well as representatives of the Guyana Revenue Authority (GRA) were also in attendance. The Inter-Ministerial Round Table will be held thrice annually.