The Government of Guyana must explain why it believes that spending $496.3 million of taxpayers’ money to establish a state – owned bottled – water plant is a greater priority than addressing the serious deficiencies in Guyana’s water – treatment and distribution infrastructure.
President Irfaan Ali has defended the Government’s push for 100% locally produced bottled water, arguing that Guyana is a water rich country and should not be importing bottled water. Minister of Agriculture Zulfikar Mustapha and Minister Deodat Indar have also been among the Government’s defenders of this policy.
But the Government’s argument does not withstand scrutiny when the numbers are examined.
Guyana already has a vibrant local bottled-water industry.
Blue Springs and Clear Water are estimated to produce approximately 150,000 to 170,000 cases per month, while Banks DIH and DDL account for approximately another 50,000 cases per month.
That means local producers are already supplying approximately 200,000 cases of bottled water every month.
Against this, the estimated imports are only approximately 6,000 cases per month, with the higher estimate being around 10,000 cases per month.
At 6,000 imported cases, imports represent approximately 2.9% of total monthly supply.
Even at 10,000 imported cases, imports represent only approximately 4.8%.
In other words, more than 95% of the market is already being supplied by local producers, based on these figures.
So I ask the Government directly, where is the crisis that requires the State to spend $496.3 million to enter this market?
The Government’s stated objective appears to be eliminating the small quantity of bottled water being imported. But if that is genuinely the objective, there are far more sensible, targeted and less costly ways to achieve it.
Give local manufacturers a tax break, provide incentives for expansion, reduce the cost of imported machinery and production inputs, help existing local producers increase their capacity, strengthen quality-control and certification standards, and, if necessary, Government can consider targeted and transparent fiscal measures to encourage consumers and businesses to choose locally produced water.
That approach would strengthen Guyanese businesses, Guyanese workers and Guyanese investment without forcing taxpayers to finance a Government-owned competitor.
Instead, President Ali and Ministers Indar and Zulfikar are defending a policy in which the State is taking hundreds of millions of dollars and entering a market that is already overwhelmingly supplied by local private sector producers.
That is not how Government should support local business.
Government should be creating the conditions for local businesses to grow, expand and employ more Guyanese, not using taxpayers’ money to compete against them.
There is an even bigger issue here. Government priorities.
Guyana continues to have communities struggling with inadequate water distribution, unreliable supply and deficiencies in the infrastructure required to provide households with safe and consistent potable water.
Government has itself acknowledged the need for massive investment in water treatment infrastructure, including programmes involving multiple treatment plants.
So why, at this moment, is the priority to spend another $496.3 million on bottling water?
If the Government has $496 million available to invest in the water sector, then let us put that money where Guyanese need it most. Treatment plants, pipelines, distribution networks, storage capacity, reliable water supply, Infrastructure that ensures that every household can turn on its tap and receive safe and consistent potable water.
We must not confuse bottling water with solving Guyana’s water problems. A bottle of water sitting on a supermarket shelf does not solve the problem of a family turning on its pipe and getting no water.
President Ali and Ministers Indar and Mustapha must explain why becoming a competitor to Guyana’s existing bottled – water manufacturers is a better investment than strengthening the infrastructure that delivers water to Guyanese households.
This is a classic case of misplaced priorities.
Ganesh Mahipaul, M.P.
