The Maritime Administration Department has approached its counterpart agency in Venezuela to ascertain whether the process for registering fishing boats owned by Pritipaul Singh Investments (PSI) of Venezuela CA is complete.
However, an official of the company has told this newspaper that the boats had not yet been registered there and that the company is aware that the boats cannot be registered in two countries at the same time.
Prime Minister Sam Hinds provided this information when confirming receipt of a letter dated September 13, 2004 from PSI that as a result of having registered a subsidiary company in Venezuela it is entitled to purchase fuel in that country. PSI advised that as part of its catch in Venezuelan waters would be brought to Guyana for processing they would have unmarked fuel in their tanks. The company assured that the fuel would only be used in its fishing operations.
The letter dated September 13, part of which Stabroek Business has seen, says the company has been granted permission by Venezuelan authorities to fish in their territorial water and that "all fifteen boats are currently in Venezuela for inspection, registration and licensing and will return to Guyana later this month when the exercise is completed."
Hinds said he had advised the company to discuss the non-fuel aspects of their letter with the Ministry of Fisheries, Other Crops and Livestock.
The issue came to light after the Guyana Association of Trawler Owners and Seafood Processors sent Hinds what it says was photographic evidence of six PSI fishing boats actively fishing in Guyana's waters near the Pomeroon. The association said that to the best of its knowledge the boats are registered and licensed to fish in Venezuela. As such they would not be allowed to fish in Guyana's waters. The trawler owners took the decision two weeks ago to tie up their boats because of the escalating price of fuel. Last Friday the government announced a 71 per cent reduction on diesel.
Calls to Minister Satyadeow Sawh were referred to the Chief Fisheries Officer who confirmed that local licences were issued to PSI for the six boats.
The six boats were among the 15 boats the company said had gone to Venezuela to be inspected, licensed and registered.
Informed sources have told Stabroek Business that if the boats are not yet registered in Venezuela their local fishing licences are not compromised. Registration in Venezuela will invalidate their local licence and they can only fish in Guyana waters if licensed as a foreign vessel.
PSI Finance Director Ronald Deen says the idea of registering in Venezuela is simply about economic survival. He recalls that while the price of shrimp has gone down by half in the last year fuel prices are up 65%. Even with the recent reduction, he suggests some trawler owners would still have trouble surviving.
Meanwhile the cost of diesel in Venezuela is around US 68 cents or G$130. With taxes and freight to bring it here that would end up being around $300, still far cheaper than the $400 charged for local bulk purchasing.
He says the company plans to bring the fuel in and place it in calibrated tanks at the McDoom site, mark it and then let its vessels load and go fish both in Guyana and Venezuelan waters. He notes that it will apply for foreign registered licences to fish locally that cost around $150,000 annually as opposed to $37,000 for a locally registered vessel. With one vessel using up to 2000 to 2500 gallons per trip that would more than compensate the higher licensing fees.
He warns that higher fuel prices are here to stay and Venezuela represents a valuable option for seafood processors to stay afloat. And he notes that the Venezuelans are more than willing to help. He adds that PSI has had a distribution centre in Venezuela for around two years selling various types of skin fish.
Deen repeats that his overriding concern is for the workers, many of whom have been with the company since its inception, when in desperation it needed them to handpick shrimp as no other processors were willing. He says it would therefore be unethical for PSI to tie up its boats and do nothing in response to the fuel crisis.
But Kit Nascimento, public relations officer for the Trawler Association, says the fact that PSI is a registered company in Venezuela does not mean it can buy fuel for its boats. He also says that were it to apply for licences to fish locally it would have to join a long line of applicants and were the government to grant these it would be allowing an unfair advantage to PSI as it would be fishing in Guyana's waters at far lower costs. He also says there is the issue of whether PSI had de-listed its locally registered vessels before proceeding with the application.
Meanwhile Nascimento says the association's boats remain tied up as it continues to negotiate with the government for some mechanism whereby it can access cheaper fuel from Venezuela.