Govt projects facing 2006 shutdown

This was the warning issued by local cement suppliers during a news conference at Coosal’s Construction Company’s offices in Curepe yesterday.

Coosal managing director/CEO Sieunarine Persad Coosal claimed that TCL is unable to meet the cement demands of the construction industry, and this could result in a shutdown of at least 80 percent of the major State projects being undertaken by the ministries of Education, Health, Housing and Works and Transport over the next two years.

Coosal said given the fact that several Government ministers have identified 2006 as the time when activity on many key infrastructural projects will increase, Government must take steps "to open up the market for importation of cement generally as progress of construction projects in both the private and public sectors are being affected by the current shortage of cement." Coosal and other suppliers claimed that contrary to statements on Tuesday by TCL that local cement supplies would soon return to normal, this has not happened yet.

"We demand that the Government remove whatever protective tariffs that now exist to prevent the importation of cement and protection of TCL," he declared. Coosal said the measures were unlikely to affect TCL’s profitability because its Claxton Bay plant is "unable to produce cement in quantities to meet growing needs of the construction sector."

Asked if Government should allow cement suppliers to import cement without a licence (similar to steps taken by Government when contractors were faced with an aggregate shortage earlier this year), Coosal replied, "Absolutely. A decision was taken almost immediately. All the contractors were complaining of a shortage of aggregate on the market. With immediate effect, Cabinet took a decision that in fact the aggregate market is opened."

The suppliers sent a November 22 letter outlining these and other concerns to Trade and Industry Minister Ken Valley. The letter was also sent to Works and Transport Minister Colm Imbert and Public Administration and Information Minister Dr Lenny Saith (who is chairman of the Cabinet-appointed construction oversight committee). Central Concrete CEO Varun Mathur said a meeting with Valley or other Government ministers may be on the cards at a later stage.

Coosal said while the suppliers sympathised with TCL over two fatalities which occurred at its Claxton Bay plant recently, they believe that those incidents as well as the recent shutdown of TCL’s cement mill three for upgrading caused a local shortage of cement supplies.

Reiterating that the suppliers had no personal grudge against TCL, Coosal said he did not think it was right for a company to simultaneously act as a regulator body over a particular sector, and conduct commercial business in that sector.

He said it was difficult to quantify losses suffered by local cement suppliers at this time, and while bag cement was available (for domestic purposes) there remained a shortage of bulk cement. Suppliers spoke about continuing difficulties to fill cement orders and refunds that were paid to customers.