The Corentyne River has long been notorious for facilitating illegal cross border trade in almost every conceivable commodity and over the years very few smugglers have been apprehended but one major company- Banks DIH Limited has literally taken the bull by the horns and is moving to curb the illicit importation of Guinness.
Speaking at the company’s annual shareholders’ meeting in New Amsterdam two Sundays ago, Chairman and Managing Director of the company, Clifford Reis announced that malt and Guinness sales were affected during the past year by smuggling.
“We are speaking to our international partners about the problem and we have begun tracing the origins of the beverage. The company that is selling Guinness which is eventually smuggled into Guyana will have to pay Banks DIH litigation costs and for the profits which we have lost as a result of the illegal smuggling. The dealers who are currently handling the product would also not be allowed to sell Guinness anymore in the future” he told hundreds of shareholders to loud applause.
Earlier Branch Manager, Reginald Matthews had told the gathering that the branch sold some $1.82 billion last year a decline of one percent due mainly to competition from smuggled beverages. The company he noted had also been forced to cease the importation of Heineken beer because of unfair competition from smuggled Heineken beer from Suriname. Matthews said the branch’s restaurant sales also experienced a decrease is sales last year compared to 2007 which was due mainly to unfair competition from roadside vendors who offer food for sale without having to pay Value Added Tax.
Reis posited that “a joint effort on the part of the regulatory bodies and the enforcement of existing legislation will be necessary to ensure that critical tax revenue and employment are maintained. Millions of dollars in taxes and jobs are lost annually when foreign beers, liquor and other products enter Guyana illegally” he pointed out saying “the highly taxed commodities are attractive to smugglers.” The meeting was held under huge colourful tents erected along the renamed Peter D’Aguiar Street [formerly New Street] outside the company’s Berbice branch.
Touching on the proposed Caricom Single Market and Economy [CSME} Reis wondered: “when are we going to bring down the barriers and walls” while referring to the sale of ice cream from Barbados in Guyana and the difficulty his company is experiencing in marketing its locally produced ice cream in the Caribbean. Banks DIH he said is “not isolated from the global financial crisis but will do everything to protect the interests of its shareholders and investors.
According to the Chairman the completion of the Berbice River Bridge and the Skeldon Modernization Plant would undoubtedly see improved results in the business sector during the 2009-2010 financial year.
However Matthews called for a re-consideration of the fares being charged to cross the bridge saying they were too high compared to the fares charged by Transport and Harbours Department and the Demerara Harbour Bridge.
