(Trinidad Express) Local scrap iron dealers are questioning the criteria which has allowed a foreign national a licence to operate a scrap metal business in Trinidad.
Dealers claim that already this year, several foreigners, mainly from India, have established scrap metal yards.
The new businesses are owned by the very people to whom local dealers supplied the metal previously.
Since those businesses have been operating, the dealers said they are getting “fierce competition”, making it difficult for them to make a reasonable profit.
Last Wednesday, some 40 local scrap iron dealers held up placards outside a business place in Charlieville reportedly owned by an Indian national.
They called on the Ministry of Trade and Industry to regularise the industry.
The Trinidad and Tobago Scrap Iron Dealers Association is awaiting a draft of regularisations from the Ministry of Trade and Industry.
Last September, Trade Minister Vasant Bharath met with the association to discuss several issues.
Association secretary Kenny Plaza said local dealers were now in jeopardy because of the foreign-owned yards. He said, “These are the same people we supplied scrap iron to. Now they are coming here and opening up businesses.
“We cannot compete with them because they are offering higher prices for scrap iron. The price is fluctuating at this time. We cannot meet these prices and we will have to close down if they continue.
“Even if they have licence, at this point the criteria to get a licence, we don’t understand how they are getting around it. There are no stringent measures to get a licence, but the major thing is that you have to have a certificate of character. We are questioning what is the way you go about getting a certificate of character if you are not a national. How can you get a certificate of character to take to the court to get a licence?”
Plaza said, “The police are supposed to investigate the location where you have your yard and make sure it complies with the basic guidance for getting a scrap dealer licence. You are supposed to own the property, have a proper lease for the property and it supposed to be an area where it have no problems with the traffic and neighbourhood.”
In a news release last Friday, the Trade Ministry stated, “The issue of foreigners taking away business from local scrap metal dealers was raised at the consultation with recommendations from participating stakeholders on proposed solutions.
“The Ministry has agreed and is actively investigating this situation, with a view to finding an amicable solution that is beneficial to all the parties involved.”
The press release stated, “A report is in the final stages, including a recommendation to develop a policy to regulate the industry. It is expected that this policy, when implemented, would address all issues raised by the stakeholders, inclusive of criteria for entry into the industry.”
Most of the scrap iron dealers’ yards are located in South and Central Trinidad, Plaza said. He said the foreigners were setting up their yards in close proximity to those owned by locals.
Plaza said scrap iron prices would fluctuate depending on the world market price, the time of the year and the destination of the metal.
He said the price last Friday for scrap iron was US$275 per tonne.
