Dear Editor,
In Wednesday’s issue of SN (10/10/07), TCL Guyana Inc. implied in its Cementing Partnerships advertisement that the Government of Guyana (GoG) should re-implement the Common External Tariff (CET) with respect to cement imported to Guyana from outside of Caricom countries.
In its pronouncement, TCL has reasoned that GoG in its consideration as to whether CET should be re-implemented with respect to cement imports, should take into account TCL’s good faith in their investment in Guyana as well as support for Guyanese investors in the TGI Plant and the trained Guyanese staff managing the complex. Further, TGI Plant Manager is quoted as saying that the price of cement is not a major issue in Guyana but is more a matter of principle and that he believes in stable prices although the price of TCL cement has been yo-yoing for the past several months.
The Plant Manager should know that the price of cement does matter to any Guyanese contractor who is a savvy buyer for all his construction material.
Imported cement sells for $1350.00 per sack while TCL cement, bagged locally sells for $1624.00 per sack, a cost increase of over 20%.
A price differential of over 20% cannot be supported and it is expected that GoG in its review of the issue as to whether the waiver of the CET on cement imports to Guyana comes to an end, should in its deliberation ensure that Guyana continues to receive cement which is competitively priced from any available source and not grant TCL a monopoly by re-implementing CET, thereby facilitating the Company to manipulate cement prices for the benefit of its investors rather than competitively pricing its product by making its manufacturing process more efficient than its competitors. Guyanese should not pay for TCL’s inefficiency and resulting high cost for its cement.
Cement is a basic building material, which should be available to Guyanese at a competitive price to enable them to keep their construction costs low, develop their economy and thereby enjoy a higher standard of living.
Yours faithfully,
Charles Sohan
Editor’s note
We are sending a copy of this letter to Trinidad Cement Limited for any comments they may wish to make.