NEWS RELEASE

Government and suppliers discuss challenges for reconstruction

The availability of materials for the reconstruction process was the subject of discussion at a meeting today (Thursday, January 13) with Prime Minister Keith Mitchell, Minister of Social Development Yolande Bain-Joseph, Minister in the Prime Minister’s Office responsible for Business and Private Sector Development Senator Einstein Louison and Material Suppliers.

The Prime Minister identified three areas that are causing problems in the industry. The areas are: Shortage of Materials, Prices and Concessions. "It is extremely important in a time when people are suffering that sacrifices are made to assist, rather than trying to maximise profits," the Prime Minister said, adding that the Government and the private sector have to work together in order for the Country to move forward in these difficult times.

Representatives of more than 12 businesses involved in supplying construction materials informed the meeting that they are having difficulties with respect to transportation and the availability of supplies. Acknowledging the shortage of materials on the local market, the suppliers referred to the unusually high demand for building materials in other Caribbean countries and Florida, which were also affected by hurricanes.

The Prime Minister encouraged the suppliers to seek alternative sources in order to meet the high demand. It was agreed that the suppliers would explore the possibility of sourcing materials from Brazil and Argentina. Prime Minister Mitchell said the Government would endeavour to help in any way it can to facilitate the suppliers in their search for alternative sources.

The suppliers indicated that as a result of the long time it takes to get the materials from the original sources in North America and Honduras to Grenada, they have already, in some instances, placed material orders for the next six months.

The suppliers indicated that they are committed to importing quality materials that will endure the weather conditions here. However these materials will be more expensive.

Additionally, they acknowledged that there are some businesses that are imposing "illegal prices" and are importing sub standard materials. They advised Government to pay particular attention to quality and price control and that offenders should be prosecuted.

Prime Minister Mitchell urged the suppliers to speak out against any illegal practices that have taken place in the industry post Hurricane Ivan.

"In some instances, prices have gone up even when Government has given concessions," the Prime Minister noted.

It was agreed that the Government and the suppliers will work together to sensitize the public about the challenges facing the construction industry.


Prime Minister’s Office
January 13, 2005
St. George's