THE private sector is in discussion with the government to add 35 more areas to the First Schedule of the Local Content Act, in addition to appealing for increases to the percentage of minimum local content required for respective sub-sectors.

Though the private sector had previously noted that it recommended 25 new areas, former President of the Georgetown Chamber of Commerce and Industry, Timothy Tucker, noted on Tuesday that the business community has already begun to look beyond this and add to the recommendations.

“We have recommendations for another 25 in just one year. It shows how Guyanese are finding opportunities for 25 additional areas, and I think there are another 10 more that’s going to be recommended soon. So we’re looking at another 35 areas that we are going to suggest, and even the targets are going to be raised. So the challenges and opportunities are there; it’s on us as a resilient private sector to overcome them and grab the reins and take it,” Tucker noted.

At the time, Tucker was making remarks during a panel discussion on “The Role of Local Content in Fostering Economic Growth,” which was part of activities at the inaugural Local Content Summit held at Pegasus Suites.

The summit provided a platform to strengthen conversations about local content amidst the government’s commitment to continuously extend the legislative coverage of local content.

The private sector’s conversations on expanding the list of sectors have been ongoing, and increasing ever since the issue was broached during the Private Sector Commission’s (PSC) Local Content Forum last November.

PSC Executive Director, Ian Cheong, emphasized that the process of establishing additional areas for Guyanese businesses to receive preference has to be done prudently.

Cheong noted that the private sector organisations and the government are working together to identify existing capacity before decisions can be made. He said the 35 areas would be kept private as assessments continue.

“Our recommendations are based on consultations with businesses around the country, indicating that they have the capacity to do some of this work. We cannot disclose the areas as yet because it’s a sensitive process at the moment. We have to verify and ensure that there is sufficient capacity before those things can be added. So that’s what the ministry is working on currently,” Cheong noted.

Currently, Guyana’s Local Content Act outlines 40 sub-sectors that would legally require oil companies to procure goods and services from Guyanese businesses, as well as employ specific percentages of Guyanese in their day-to-day operations.

However, the legislation places limited quotas on some sectors, due to limited capacity among local businesses to provide the goods and services. Only five of the 40 areas require 100 per cent procurement from Guyanese businesses, another five require at least 90 per cent, while another six require at least 50 per cent.

Also speaking on the matter, current GCCI President Kester Hutson also noted that the finalisation of adding additional areas to the Act has to come from a well-thought-out point, given the limitations of capacity among local businesses.

“There’s always room for expanding the local content, but we have to be very intentional to ensure that local companies are adequately equipped to deal with that; we do not want to say yes, we can identify more just to add it, and then we do not have the ability to properly function in that environment,” Hutson noted.

He continued: “Continual conversation with the government is critical at this point to craft the direction in which we go. It has to be a collaborative effort. We expect our members to give adequate feedback on where their capabilities lie and what we can actually do from what we can’t do. But we operate in quite a few sectors and can certainly make representation on it. But of course, this is not going to happen overnight.”

Hutson met with the Director of the Local Content Secretariat on Wednesday, where further discussions ensued between the government and private sector sides about expanding the local content.

He lauded the supportive stance that the government has shown in its commitment to continue building provisions for local content to ensure that Guyanese benefit maximally from their national patrimony.

“They have been very supportive, but again they are very cautious on how we move forward and add to that list because we still want to ensure that capacity is being built out even within the 40 as the sector goes. It’s building capacity and then adding. So there’s no rush to add just for adding sake to make the number look big. It’s about ensuring that local companies can effectively perform,” Hutson noted.