On Wednesday, minus House members of the political opposition who have opted not to attend sittings until the Caribbean Court of Justice (CCJ) pronounces on the matter of the December 21 confidence vote, the National Assembly finally passed the long-awaited amendments to the 2003 Procurement Act that clears the way for small businesses to have access to 20% of state contracts. That, of course, is only half the job done since, as the Chief Executive Officer of the Small Business Bureau (SBB) Dr. Lowell Porter told this newspaper several weeks ago the issue of Guyana Revenue Authority (GRA) and National Insurance Scheme (NIS) compliance, two critical criteria for accessing state contracts will still have to be met.
This newspaper’s own enquiries have revealed that many small businesses which, conceivably, would otherwise qualify to access the state contracts do not possess these compliances either because they have simply not ever bothered themselves to be compliant though there would be instances in which some of the small businesses are relatively new and may simply have not had reason to engage those agencies earlier.
When consideration is given to the fact that the Small Business Act in which the 20% provision is enshrined has been in force since 2004, it has to be said that it took far too long for the legislative arrangements concretised in the National Assembly on Wednesday to fructify. Arguably, had the amendments to the 2003 Procurement Act come earlier, our unemployment levels might have been considerably lower since several small businesses, including family businesses, would have had access to state contracts much earlier. It is now for the Small Business Bureau and other agencies assigned to administer the various aspects of the arrangement to move as much with due care as due haste to get the proverbial show on the road.
One of the likely effects of the amendments to the Procurement Act and the consequent clearing of the way for the coming into force of the 20% allocation is that we are likely to see more investment in small businesses in sectors where state contracts dominate, the construction, transportation and hospitality sectors being some of those. That in itself is likely to bring a spurt in investment in the purchase of inventory with which to outfit those new and growing businesses as well as the recruitment of specialist skills in order to strengthen capacity. One can, as well, envisage an enhanced focus on training in areas that fit in with state contract requirements so that our technical training institutions could come much more into the spotlight.
One imagines too that the competition to secure contracts will be intense and in that regard a key consideration would be with ensuring that the tender processes at both the central government and the regional administration not be compromised though it is almost certain that elements of nepotism could become attached to the process. Frankly, unless government moves with haste and from the outset to protect the system from the various kinds of plunder to which it may be vulnerable then it could well end up becoming a cash cow for the corrupt and an embarrassment for the government.
Going forward, it is now a question of having interested small businesses (and here it is important that the playing field be as level and as open as possible) become GRA and NIS – compliant and become familiar with the tender process. It is our understanding that the Small Business Bureau has already been engaging these two agencies and is prepared to work with those small businesses interested in accessing state contracts under the set aside arrangement.
