President defends GWI's move to enter bottled water business

In wake of the Guyana Manufacturers and Services Association raising concern about the Government's decision to enter the bottled water business through the Guyana Water Incorporated, President Irfaan Ali today defended the move and said local manufacturers ought to be asking themselves why there's so much of imported bottled water in the marketplace. The President spoke to reporters this morning while leaving a community consultation on the East Coast of Demerara. "The local manufacturers should ask themselves why foreign water is here displacing them, why do we have foreign coming to Guyana and displacing local producers. It is a question of ensuring that there are some products that are social in nature, and when you look at the price of water across the region and internationally and water here, we have a duty and responsibility to the people and so its just arriving at that situation, balancing the need and balancing profitability", President Ali said. The Government used its majority in the National Assembly last week to approve $496.3 million for a state-owned water bottling facility under Guyana Water Incorporated (GWI). The Government has said that the facility is aimed at reducing the reliance on imported bottled water, by giving consumers another bottled water choice that will come from GWI. But with a number of local manufacturers already involved in the bottled water industry, the Guyana Manufacturing and Services Association has flagged the Government's move. The Association said it met earlier this year with the Government to express concern about the growing number of companies involved in the sale of imported bottled water. The GMSA said at the meeting, the Government highlighted its vision of achieving 100% locally produced bottled water. The Association was not expecting that the Government would now become a business competitor to the local manufacturers in the bottled water sector. The GMSA said a number of its members have even invested capital and have made business decisions to expand following the Government's commitment to ensure 100% locally produced bottled water. They now find themselves preparing to face competition that will be tax payer funded. The Association said it is concerned that direct state participation in a market already served by local manufacturers could discourage future private investment, create uncertainty for businesses that have committed substantial capital to the sector, and potentially undermine the Government’s broader agenda of promoting private sector-led growth and industrial development. The Association wants the Government to review its bottled water business plan, but the President does not appear to be supportive of any such review.