After seven hours of vigorous debate, the landmark Local Content Bill to ensure that businesses and workers here benefit from the burgeoning oil and gas sector was passed in the National Assembly last evening.
Before the 26 clauses of the bill were passed, the last hour of the debate was set aside for each clause to be considered individually before they were passed with amendments.
All fourteen of the amendments which were proposed by APNU+AFC Member of Parliament David Patterson were defeated by the government majority. However, ten of those same amendments were agreed to after they were proposed with similar wording by the Government.
Significantly, a key amendment of the principal act allows for an increase in the work provision percentages for local accounting and insurance services.
It inserted the word “local” immediately after “Accounting services” giving the guidelines a new meaning and had the work provision percentage substituted from 20% to 90%. Similarly, as it relates to the Local Insurance Services guidelines, the bill amends the work provision percentage from 90% to 100%.
Among other amendments made was the replacement of Part V of the bill with the heading Inter-Agency Committee to Local Content Oversight Committee.
Clause 13 was amended to include that a contractor, sub-contractor or licencee without the written permission of the Minister acting on the advice of the Secretariat and the Local Content Oversight Committee, shall not enter into any contract in excess of three years
Amendments were also made to Clause 20 of the bill to include ten local bodies from which members of the Inter-Agency Committee can be chosen. The amended agencies include the National Toshaos Council, the Guyana Bar Association, the Parliamentary Opposition and Transparency International Guyana Incorporated.
The amended Clause 20(2) seeks to ensure that the committee does not include more than seven members appointed by the President.
Clause 20(4) of the principal bill had empowered the President to appoint a Chairperson and Vice Chairperson.
The clause was amended to allow the President to only appoint a Chairperson of the Committee from amongst the members of the Committee. The amendment seeks to include Clause 20(4) whereby a Vice Chairperson of the Committee shall be elected at the first meeting of the Committee.
Additionally, Clause 20(5) was amended for the members of the Committee to be appointed for a term of two years instead of one year. The terms may be renewed by the President.
Also amended was Clause 20(7) of the principal bill for the function of the Committee to be to provide oversight of the Secretariat in the discharge of its function and to provide the minister with recommendations instead of supporting the Secretariat in the discharge of its functions in an advisory capacity.
The final amendment made was to Clause 20 (8) to allow the Committee to determine and document its own procedure for discharging its functions.
In opening the debate on the bill, Minister of Natural Resources Vickram Bharrat said the Government accepted some of the amendments proposed by the Opposition since they see them as strengthening the bill.
“…Mr Speaker this just shows how open and transparent we are…..Local content is new to Guyana….It wouldn’t be difficult to make changes. We have a listening ear but I want to remind you that the oil and gas sector is new to Guyana,” he said.
“We need to be honest and straight up, we have challenges of our own, we lack capacity in many areas and there are services we need to build….We need to realise our shortcomings and build capacity… that I believe is one of the high points of the Local Content Bill,” Bharrat added.
Responding to heckling from the Opposition side of the House, Bharrat stated that there could be changes to the schedule which sets out the goals to be implemented by the end of next year, as he said Government is committed to the changes to the law.
“We will keep changing that schedule and we will add different services to that schedule based on our capacity… As we build capacity, we are willing to make changes to the schedule,” he said.
Responding to heckling from the Opposition side of the House, Bharrat said that the bill is a ‘working” and “living” document. “No local content bill can remain static in any country in the world…Nothing in the local content bill is cast in stone,” he said.
No consultation
Patterson, who open the debate for the Opposition side of the House accused the Government of failing to consult with them on the bill.
“Bringing a bill to the house for approval is only one piece. Another important piece is consultation,” Patterson said.
However, Bharrat said Government spent over a year consulting with various groups across the country. “One would recall that the first draft of the bill was presented in this very building by…the President of the country where we held again a widespread consultation with every single stakeholder throughout the country including (the) private sector, the operators and civil society,” Bharrat related.
He said the Government only received submissions on the bill from the Opposition on Tuesday. “Unfortunately, only yesterday (Tuesday) we received a submission from the Opposition even though they were invited to do so a while back,” Bharrat said.
The claim of no consultation Bharrat said is “non-justified” and “totally wrong”.
One of the amendments proposed by the opposition yesterday was for a Guyanese to be recognized as someone born in Guyana. However, Bharrat said that the government disagreed.
According to the Bill, a “Guyanese national” means a citizen of Guyana.
Patterson also pointed to the CARICOM-founding Treaty of Chaguaramas while noting that the bill does not make any reference to it. As such, he expressed concern that the law can conflict with international and regional treaties which Guyana is a part of.
“…..Nowhere in this bill is any reference made to our obligations under this treaty…..We in the Opposition would like assurances from the Government that the country would not face legal challenges from our CARICOM sisters and brothers after the passage of the Bill if it is passed without amendment”, Patterson said.
He said the Caribbean Community has already signaled to the Opposition that the bill is in conflict with the treaty.
“Nitpicking”
In response to Patterson, Attorney General Anil Nandlall made reference to the Local Content laws in Suriname and Trinidad. “It never ran afoul of the Treaty of Chaguaramas…. Never heard of an issue of violation…. So you have the Government assurance that we have addressed that issue and we will deal with it at the appropriate time,” he said.
The Attorney General described the recommendation made by Patterson as “myopic”.
In his presentation, Nandlall accused the Opposition of “nitpicking” at issues.
“We have the local people at heart. This is our Bill, you did nothing, so don’t come and accuse us of shortchanging locals here when you did nothing for them…..Every Guyanese is aware of what is taking place in this country,” he argued.
Nandlall told the House that the Local Content bill bought to the House by the Government is a comprehensive one which was no “easy task”. “We are dealing with a brand new sector, highly technical. The bill is a work in progress. It is not the end ball. That is why there is a schedule,” he said.
He explained that the legislation aims be part of a network which will ensure every Guyanese benefits from the multi-billion-dollar oil and gas sector.
Special Select Committee
Several members of APNU+AFC including Patterson, Annette Ferguson, Sherwayne Holder and Khemraj Ramjattan asked for the bill to be sent to a Special Select Committee so that it can be further considered and scrutinized.
They said the Opposition is ready to work 24/7 to get over the process. Ramjattan even went further to suggest that a one-month deadline be given for such to be done.
However, it was the Government’s belief that the time for this has passed.
Holder told the House that the opposition will support in principle any legislation that is intended to improve the lives of all Guyanese. He accused the Government of “forcing” this legislation into law.
“Mr Speaker, this oil does not belong to the PPP….It belongs to the people, it belongs to the Guyanese people and as such they are the ones who must be allowed to determine how they must benefit,” he said.
“The PPP is not interested in promoting and protecting the interest of Guyanese people, but rather their interest, their friends and their pockets,” he added.
“…We demand that this bill be sent to a Special Select Committee where it can be examined properly,” Holder urged.
In closing remarks, Bharrat reminded the House that several pieces of legislation including the Petroleum Commission Bill, the Animal Welfare Bill and the Food and Safety Bill were sent to the Special Select Committee and stalled when the APNU+AFC coalition was in Government. “….We don’t trust the Opposition when it comes to sending Bills to Special Select Committees,” he said.
“… And where are these bills today?” Bharrat questioned.
In thanking members of both sides of the House for their presentations, Bharrat said the Government aim is to move the oil and gas sector forward so that every citizen benefits.
He said the Opposition is only wasting time in their bid to score political points.
“The very Opposition while in government for five years did nothing for these people,” he asserted.
