Reis calls for level playing field
By Daniel Da Costa
Stabroek News
March 23, 2004
Managing-Director of Banks DIH Ltd, Clifford Reis has called for a level playing field, saying the increase in taxes has had serious consequences for the company.
Reporting to hundreds of shareholders on Peter D'Aguiar Street [formerly New Street] in New Amsterdam last Sunday, he described the past year as important. "It was a decisive year in our continuing struggle to survive in an economy which showed negative growth; continuing uncertainty of the political dialogue; the rising crime rate; the removal of the remission of the ten percent consumption tax and increased electricity charges."
Referring to the effects of taxation on the company's operations, Reis called on the regulatory bodies to "give us a chance because Banks is the leading company in Guyana."
According to the senior executive, the company pays the government $800 in taxes for each case of beer which is sold at $2,400. Noting the "unfair competition" from imported beer, he said: "No one in the Caribbean can produce a case of beer for less than $US8.50. Yet we have evidence that persons are importing beer at US5.75 per case."
He said this was blatant under-valuing and called for this "unacceptable situation" to be addressed urgently. Last year, he said, saw the lowest level of Banks beer sales since 1981.
Branch Manager, Natram Rampersaud told shareholders that sales over the past year was $1.1 billion, pointing out that the Suriname market suffered a setback because of unfair competition from smuggled beer which resulted in shrinking beer sales. An upsurge in criminal activity in the region, Rampersaud said, also contributed to the decline in sales.
Reis had reported that sales in the branch were down by $100 million over the past year. "We're somewhat taken back by what is going on in Berbice. In 2002 we sold 877,000 cases, last year this figure was down to 788,000 cases. A lot of factors are responsible for this decline." However, he congratulated the branch manager and his staff for their performance during the past year.
The managing-director, in an effort to address the situation, met dealers after the meeting.
Reis also questioned the manner in which the value of shares are determined on the Stock Exchange, saying "I am very concerned about who are the persons involved in trying to manoeuvre the company's shares." Back in 1998, the company engaged the services of a team of experts who valued its shares at $25. "It is now surprising to see what the shares are being traded at on the market," Reis said, adding, "some people have put the company's shares at $6 when in fact based on its balance sheet it is $10.31."
The usually busy street was closed to vehicular traffic to facilitate the meeting, which was held under huge tents erected over an area outside the branch. The colourfully-decorated tents provided vital cover for those in attendance from the broiling early afternoon sun.
The company's top executive also seized the opportunity to send a warning to employees "with an attitude", saying "such attitudes will not be tolerated particularly at our restaurants." According to Reis, the company receives at least ten complaints each week about customer relations. "Without customers none of us would have a job and it is time we pull our socks up... This is the last warning," he emphasized.
Meanwhile, the company also handed over monetary donations to the East Canje Secondary and Gangaram Primary School while the Hopetown Primary School is expected to receive a donation some time this week following a request by a shareholder, Carol Fraser.
Responding to a suggestion from the floor, Reis called for the establishment of a recycling plant with the involvement of a wide cross-section of the society. "We cannot pickup the plastic bottles alone but we are willing to be involved and others including DDL should also get involved."
Another suggestion was made from the floor for a branch of Citizens Bank to be established in Berbice. Reis promised to raise the suggestion with the Board of Directors at a meeting later this week while pointing out that a survey of its viability should first be undertaken.