– says concessions were limited to cinematic equipment
The issue of duty-free concessions for foreign companies has come to the fore again, with calls for MovieTowne to reveal what concessions it received from the previous Administration. But Derek Chin, the man behind the multimillion-dollar investment, is adamant his company did not receive preferential treatment.
In an interview with the businessman last Saturday, he refuted suggestions that his business benefited from duty-free concessions outside of the norm. According to Chin, the only concessions he received were those related to cinematic equipment, in keeping with standard investment practise.
“The only concession we got was the duty-free concession on cinema equipment, like the stuff that we had to bring in for outfitting… which is normal,” Chin related. “And we got duty-free concessions. That’s what I was relating to in my presentation.”
“Even with the concession letter, when the goods came in, we still had to fight up. We had the letter and the letter was taking so long to come in order for us to not pay duties. Because once you pay duties at Customs, it’s hard to get it back. So I wanted to ensure we got that concession in our hand.”
Chin was adamant that he received no concessions related to electricity tariffs, as well as other extraneous areas. In fact, Chin stressed the importance of affordable and reliable energy being available but in the meantime, he has set up three megawatt generators.
The businessman noted instances where other companies would have gotten tax-free concessions and holidays spanning several years. He made it clear that he did not get this treatment from the Government.
“Other than that, there’s nothing else. There’s the road, which was supposed to be built just like they built with Giftland. And that didn’t happen. So we went ahead and spent about US$800,000 to build the road right next to us. We made that contribution and I can’t think about any other concession we got.”
Concessions
Chin, a Guyanese-born businessman, is currently constructing the first overseas branch of the Trinidad-based MovieTowne franchise here in Guyana. During a recent tour, however, Chin had spoken out about challenges facing the Turkeyen construction project, noting that these challenges were costing the company, but that interactions with the Government have dwindled.
“We have met with Government and I don’t seem to meet with them anymore… to say that Mr Chin how is your investment going, what can we do to help. So that communication link with the Government is very important… the Private Sector is the driver. The Government cannot outrun the Private Sector because it is the Private Sector. It has its own money, but the Private Sector needs to be given that encouragement,” Chin had said.
Additionally, the businessman had said Government should be more involved in discussion with the Private Sector and work hand-in-hand since they are the ones who are the drivers of the economy.
After his statements, however, there were calls for the company to reveal what concessions it received from Government. Specific calls came from Giftland Mall proprietor, Roy Beepat, considered one of MovieTowne’s main competitors.
Beepat, in a letter to the editor, had noted that concessions granted for his outfit were for the air conditioning units and other internal materials and equipment related to the setup of his cinema… similar to what Chin maintains he was granted.
“I would be grateful to know what concessions and facilities were granted, including any reduced tariffs on electricity. We have requested the same from Go-Invest, who to date has not even acknowledged our request,” he had written. (Jarryl Bryan)
