GMSA team engages Minister on critical cash-cow issues

Critical issues related to the forestry, mining and oil and gas sectors were addressed when a team from the Guyana Manufacturing and Services Association (GMSA) met with Minister of Natural Resources Raphael Trotman. The meeting was held on Thursday.

The team included GMSA President, Mr. Shyam Nokta, Mr. Andre Cummings – Chairperson of the Forestry and Wood Products Sub-Sector, Mr. Norman McLean – Chairman of the Mineral and Related Industries Sub-Sector, Mrs. Glenis Hodge – Chairperson of the Services Sub-Sector and Board Member, Mr. Peter Pompey.

The GMSA team gave recognition to the ongoing process of revising and updating the National Forest Policy and the National Forest Plan and promoting Lesser Used Species while highlighting critical challenges facing the sector. The issue of VAT on forest products was raised where it was pointed out that this is affecting the competitiveness of the wood processing sector. The GMSA team reiterated its call for this decision to be revisited with a view to removing the VAT on forest products. To support its position, an assessment from the industry’s perspective has been prepared by the GMSA and will be put to Government. It was also pointed out that the competitiveness of local products is being challenged with imported substitutes and this adds to the challenge facing the local wood processing sector.

The issue of the UK ban on greenheart from Guyana was also raised and while some progress has been made which allows FSC certified timber to have market access, the GMSA urged that the issue be advanced to completion urgently to allow for a full lifting of the ban. In this regard, the GMSA expressed its willingness to provide technical support and be involved in the process to engage the UK Environment Agency.

Minister Trotman, in acknowledging the issues put forward, outlined Government’s commitment to review the issue of VAT on forest products and in moving forward on resolving the issue of the greenheart ban. He invited the GMSA to submit proposals for support to the Wood Sector, since the Ministry of Finance will start consideration for the 2018 National Budget in July 2017.