Local loggers being forced out of the market – Ricky Ramroop MP

STATEMENT
August 24, 2024.
Local loggers being forced out of the market – Ricky Ramroop MP

Logging companies are complaining about the way they are treated when supplying piles to Chinese companies. Many have brought their concerns to the attention of the Alliance For Change. It was reported that when local small loggers take logs to the Chinese companies operating in Guyana, the logs are graded harshly, resulting in lots of rejects per truckload.

The loggers stated that they have noticed that other Chinese nationals are now coming to them for the procurement of these products, offering smaller prices and taking the same quality of piles that were rejected by the construction companies. They are fearful that this will create a middleman scenario and further reduce the market price.

It was also reported that complaints by some of the local suppliers and a request for the Guyana Forestry Commission to intervene, have been met with deaf ears.
The AFC believes that with the current construction boom, all local businesses should be benefiting. The rising tide floats all boats; however, the current practice does not augur well for our local timber producers. Public construction is ultimately being funded by hard-working taxpayers, as such the benefits during all phases of these projects should be shared equitably, not just the finished project.

The party is not against competition, but objects to unfair business practices where local timber is being willfully rejected, and then purchased by middlemen, closely associated with these Chinese companies, for reduced prices, and subsequently accepted by the same contractors that initially rejected the timber.

The AFC calls for the supervising engineers to be part of the grading process to avoid this discriminatory practice in the future; we also demand that the Ministry of Works implement systems that ensure that local suppliers can benefit from these construction projects.

While the AFC welcomes all foreign contractors, we will not tolerate any practice that willfully prevents local suppliers from earning an honest living.
END