Scrap iron dealers say current system could force them to close down

While the Scrap Iron Dealers Association (TTSIDA) is grateful that the Ministry of Trade and Industry (MTI) has extended scrap metal dealers’ licences until October 14, it warns that the current system could force members to shut down.

In a virtual media conference yesterday, TTSIDA president Allan Ferguson said he would be sending a letter to the Minister of Trade and Industry, Paula Gopee-Scoon, outlining the issues and calling for urgent action. He explained that when dealers submit documents to the MTI, they wait between three to seven weeks for a response or for export licences to be granted.

Further elaborating, TTSIDA vice president Erros Seejattan noted that it takes approximately two weeks to accumulate the required amount of materials, a minimum of three weeks to obtain a licence, and another two weeks or more to secure an inspection for approval before loading can take place.

Seejattan acknowledged the licence extension but expressed concern that the lengthy delays in loading containers, obtaining export licences, and completing inspections make it unlikely that his company will survive the eight-month extension if the situation remains unchanged.

As a result, Ferguson said dealers are facing embarrassment from scrap metal collectors due to the low prices they are able to offer. He explained that the delays directly impact operations, and if dealers could procure, load, and ship materials more quickly, they would be able to offer higher prices to collectors due to a faster turnover.

“It is not that we want it to be like that or taking advantage of the van collectors. It is not because we are doing that. It is because we have no other opportunity to keep our price at a certain level. The big ones could probably do better, but I cannot tell them to do that. We cannot ask them to raise their price,” Ferguson said.

He warned that unless changes are made, many dealers will be forced to leave the industry, leaving thousands without an income while still having financial obligations to meet. Ferguson recalled that when the Government reopened the industry in 2023 following its six-month closure, TTSIDA gave the new system a chance. However, he firmly believes it is no longer sustainable.

“We are not here to threaten the government this morning. We came here to tell them that something has to be done now. If something cannot be done, it will put us in no other position but to take actions that will shake up the industry because we cannot continue like this. If we do, we will have to close down.”

Ferguson stressed that TTSIDA is willing to work with Gopee-Scoon to resolve the issues, arguing that no other industry is subjected to such challenges.

“You cannot tell the oil industry to work for one or two weeks and then shut down for seven weeks. You cannot tell a grocery to sell for one week and then shut down for six weeks. It does not work like that anywhere in the world. The only country and the only industry in Trinidad and Tobago operating this way is us, and why?”

He also addressed claims that he had political affiliations, saying that while some people had labelled him a PNM supporter, the reality of the situation speaks for itself.