BRACE FOR CEMENT PRICE GOUGING

ROCK Hard Cement has been squeezed out of business at a time when the Government is pledging to assist the private sector. 

This leaves Trinidad and Tobago’s consumers open to blatant cement price gouging by retailers, and higher profits by a monopoly operator owned by local and foreign interests. 

The local cement industry is worth more than $2 billion a year. 

Even before Rock Hard’s closure, consumers have been complaining of arbitrary retail prices of more than 100 percent higher than the advertised figures. 

In his 2020-2021 budget, Finance Minister Colm Imbert pledged: “We will support the manufacturing sector in its quest to double output by 2024, expand employment and exceed its contribution of approximately 19 percent to GDP.” 

Rock Hard, which is owned by Trinidad and Tobago investors, has announced its closure as a result of high import duties, imposition of quota limitations and other stiff restrictions. 

“It is with extreme sadness and disappointment that we have closed our business in Trinidad,” Rock Hard said in a statement. 

The cement manufacturer is active in other Caricom countries. 

The company told of “continuous challenges from the Government in Trinidad…” 

That included being “charged a higher rate of duty than was legally allowed for our cement.” Rock Hard said. 

The company had earlier taken its plight to the Caribbean Court of Justice, which upheld its pleadings. 

The Rowley Government, in turn, increased duties by 600 percent. 

“We fought this,” the manufacturer stated, “only for the Government to increase the rate of duty by 900 per cent… while imposing a quota…” 

The company protested “this grotesque injustice and discrimination.” 

Rock Hard said it “would now pursue opportunities in other Caribbean countries until such time as we are afforded equal opportunity in our home country.” 

The manufacturer further stated that it would “only continue to operate in those countries across the Caribbean that uphold the principles of fair trade and equality and recognise the rights of all business owners and consumers.” 

The beneficiary of Rock Hard’s closure would be Trinidad Cement Ltd., (TCL), whose majority shareholder in the Mexican corporate giant CEMEX. 

Minority shareholding is held by the local Unit Trust Corporation, Unit Trust Corporation and TCL Employee Share Ownership Plan. 

Local businessman David Inglefield is listed as TCL’s chairman, with Patricia Narayansingh as a director. 

The Ramjit family, known as public contractors, ran the local Rock Hard, and had 68 direct employees and 112 who benefitted indirectly. 

The company has operations in Barbados, Guyana, Dominica, St. Vincent, St. Maarten, St. Lucia, Antigua and Grenada. 

TCL, which was founded in 1951, is based at Claxton Bay. 

The Rowley Government has been touting its commitment to the private sector.  

Imbert said in his most recent budget address that the Government’s vision is a private sector that is “globally competitive, productive and innovative.”
He spoke of “transformation initiatives” for the sector. 

But that means nothing for Rock Hard, whose Managing Director Ryan Ramhit said it is “virtually impossible” to operate in the current business environment. 

In contrast, Guyana has reduced import duties by 15 per cent in order to encourage market competition. 

Local business people and economic analysts are commenting negatively on the creation of product monopolies, which leave consumers open to random price increases. 

Earlier this year, Trade and Industry Minister Paula Gopee-Scoon pleaded with hardware dealers not to “extort high prices from consumers at this time…”