TCL: NO CEMENT SHORTAGE

This according to Arun Goyal, general manager of the company, who addressed a Breakfast Seminar organised by the Couva/Point Lisas Chamber of Commerce, at Kam Po Restaurant, Ramsaran Street, Chaguanas, on Tuesday.

“Our production capacity now exceeds anticipated local demand leaving no potential for shortages, barring unforeseen circumstances,” he said. “Where is the shortage?”

He pointed out that the company recorded an average 4.96 per cent annual growth in local sales between 2000 and 2005.

He also told members of the Chamber that there were continued requests for an increase in supplies to export customers, but despite such foreign orders “we still have enough supplies for the local market.”

He said that when the overall cost of a building was under construction cement was only a small part of the cost factor, and that should be taken into consideration.

He said that now that the construction industry had taken an upswing locally many people held the view that cement was the most expensive factor but when the facts come to the fore it was not so. He explained that between 2000 and 2006 — construction increases have been noted as — cement - 15 percent ; aggregate - 32 percent; concrete - 49 per cent; steel — 119 per cent.

If the Government implements price controls in the construction industry, he said this would serioulsy give a false idea of the cost of production for cement and further “it will not keep step with inflation rates and escalator clauses in the natural gas price agreement.”

He explained that the “local industry could become severely disadvantaged and could result in loss of reduction of employment as the company seeks to recoup its expenses and in addition it will stifle competitiveness and undermine the objectives of trade liberalisation.”

It would also mean that foreign companies would be more reluctant to enter the local market with imposed price controls and this would be viewed as having less profit potential. He said that price controls restrict imports, do nothing for supply shortages, and function against the stipulations of the WTO’s initiatives to improve trade across national borders.