The controversial container fee has been reduced to $5,000 from $25,000 on an interim basis following a meeting between the Mayor and City Council of Georgetown, the Georgetown Chamber of Commerce and Industry and the Private Sector Commission (PSC) on Friday.
Discussions and deliberations on the issue concluded with those in attendance proposing that the Council reduces the current $25,000 container fee to $5,000 as an interim measure, Town Clerk Royston King said in a statement. “It will be collected at the source, at the various Ports and Wharves, effective 1st of August, 2016,” the statement said.
It noted that the meeting, the second in a series to address the issue of container fee and other allied issues, was successful and held in an atmosphere of understanding and cooperation.
Attempts by the city to implement the $25,000 fee have resulted in clashes with the business community. In June, King had said that businesses unloading containers in the city were already being charged $25,000.
However, City Hall had to withdraw an action filed against a company for payment because it was bad in law. Attorney Sase Gunraj, who represented the company, Crown Mining, had also advised the PSC that the application of the fee was “arbitrary and unlawful” and could not form the basis of any successful prosecution. Crown Mining and other city businesses were summoned to court after they were served with letters from the City Council for not paying the fee.
Gunraj argued that the city had filed a charge that was bad in law, while noting that the section upon which they were relying to impose the fee does not allow for such. City Magistrate Annette Singh upheld the argument and ordered that the case be withdrawn.
The city is now moving to create a by-law which would cover the container fee and enable prosecution of those who refused to pay.
Meantime, the statement said discussions were also held on the possible implementation of a per tonnage per cargo fee for all cargo within vehicles of specific weights traversing the streets of Georgetown. It pointed out that the collection of a container fee and tonnage fee are instituted by invoking section 274 (h) in conjunction with section 272 of the Municipal and District Council’s Act, Chapter 28:01.
“The council further advises that the collection of its revenue for container fees is an absolute necessity in order to execute road construction and repairs; drainage works; and other allied capital works such as the construction of bridges, etc. All of the aforementioned are essential Municipal service that create an enabling environment for businesses and guarantees the safety of citizens and the public health of our local communities,” the statement said.
Further, it added that the private sector representatives also indicated their interest in forming a Tripartite Committee between the Government of Guyana, the Mayor and Councillors of the City of Georgetown and the PSC to engage in continued discussions on other initiatives and the institutionalising of a solid partnership to develop and modernise Georgetown.
