With the opposition having boycotted the session, the government side of the House on Friday night passed the Small Business (Amendment) Act 2020.
Among others, the amendment tabled by Minister of Tourism, Industry and Commerce, Oneidge Walrond paves the way for small businesses to access at least 20 per cent of government’s procurement of goods, services and works.
The amendment, Walrond said, might be viewed as onerous and bureaucratic with small businesses having to now meet three criteria instead of two before qualifying for the status.
“[This] makes it mandatory and levels the playing field for all in the sector and eliminates the disadvantages,” she said, explaining that these businesses will have similar attributes and will make them able to compete against each other.
She pointed out that the amendment creates the environment and improve opportunities for small businesses to prove that they are a genuine small businesses that can compete and will not be overlooked or outnumbered by large enterprises.
She explained further that the third amendment removes the ministerial power of approval and places it in the hands of a competent review council. The council will consist of skilled persons from a wide range of sectors. The minister also stated that the elimination of the ministerial provision guarantees that there will be no political interference and every applicant will be treated fairly and be given an equal chance.
With the amended bill, Walrond noted, small businesses will now have to provide evidence that they meet the criteria.
These amendments, the minister emphasised, are testimony to her government’s commitment to guaranteeing small enterprises are not neglected. She pointed out too, that the bill allows the small enterprises to have a “piece of the pie” while contributing to the development of the economy.
Minister within the Ministry of Public Works Deodat Indar, while supporting the amendment said the inclusion of the twenty per cent rule renews hope for small businesses.
He underscored that across the country, small- medium- and micro-businesses contribute significantly to the economy. The bill with the criteria outlined, defines what a small business is and eliminates the “crowding out effect by disparities by large businesses.”
“This provision of twenty per cent gives them the assurance that they can bid to provide goods and services and works in all of the government. That is hope,” the minister declared.
He noted that during the pandemic small businesses were hurt the most and as the big businesses continue to have advantages with technical support and resources.
“Mr Speaker, small businesses in Guyana have been subjected to some level of hardship added to the lack of opportunity… Businesses don’t need headache… they need assistance and an environment to operate. This amendment brought by the minister is a well-placed one and adds more to the basket or the pie, businesses can now access,” Indar stressed.
He noted that with the amendments, businesses will be able to achieve two goals, “one, of getting into a sector and two, closing the gap of disparity between large businesses. The pie is bigger so they have more for everybody,” he posited.
Speaking from an Indigenous point of view, Member of Parliament Yvonne Pearson said the amendment gives indigenous-owned businesses the opportunity to tap in to a revenue stream that never existed before.
“When we examine the amendments… these will help us… access the small contracts in our villages that will normally go to the coastlanders as we will say, or the big boys. By meeting the three criteria, having the documentation, we can have access to the small contracts in our villages,” she said.
The amendment in the bill will contribute to the employment and economic growth of indigenous communities.
Minister of Labour Joseph Hamilton in supporting the bill said the amendment supports the survivability of small businesses and gives cooperatives an opportunity to participate for goods, services and works. However, he noted that there must be talks on how the bill becomes operationalised.
“We have to, in the most urgent way, [have] small businesses across the length and breadth of this country participate and to ensure that in my view, in the case of government procurement, that there is scale, that the applicable small businesses will not be poached upon by medium and large businesses,” he cautioned.
