Apraku
seeks Parliament's help in trade dilemma
Parliament
approves water project for six towns
Government
would not pamper local industries-Boniface
Apraku
seeks Parliament's help in trade dilemma
Accra (Greater Accra)
28 November 2002 - Dr Kofi Konadu Apraku, Minister of Trade and Industry on
Wednesday said Ghana's participation in trade negotiations with the European
Union (EU) for a free trade area presents an opportunity as well as serious
problems for the country's economy.
There is a choice to
be made between having cheaper imports for consumers and producers as well as
improved market access for processed Ghanaian exports and an annual loss of
$72m when tariffs are removed on imports.
An expected surge in
EU imports into Ghana may lead to increased pressure on the national currency,
increased competition for local industries and possible loss of jobs and
income. The dilemma deepens when trade records traced from 2000 show that Ghana
suffers consistently trade deficits in all its dealings with EU trading
partners.
Dr Apraku, who was
making a statement in Parliament said the 5-year negotiation involving the
African and Caribbean and Pacific (ACP) countries of which Ghana is a member,
and the EU was launched in Brussels, Belgium, on 27 September 2002.
"These
negotiations are in accordance with the provisions of the Cotonou Agreement
signed in June 2000, which called for new reciprocal trade arrangements, which
are World Trade Organisation (WTO) compatible."
He said the agreements
known as Economic Partnership Agreements (EPAs) are to replace the unilateral
and non-reciprocal trading and market access preferences extended to ACP states
under the Lome Convention. "The objective...is to foster the smooth and
gradual integration of ACP states into the world economy..."
He said another
concern for Ghana is the need to push the ECOWAS regional integration process
forward so as to establish a functioning arrangement capable of dealing with
the EU with one voice.
Dr Apraku said the
Ministry of Trade and Industry has instituted an inter-institutional Committee
to devise strategies for negotiations. The committee is made up of
representatives from the public and private sector institutions with critical
roles to play in trade. He said the Ministry has established links with
academic and research institutions for appropriate positions and interests
regarding trade issues.
Dan Abodakpi, Ranking
member, called for a joint committee comprising the Finance, Food and Agriculture,
Trade and Industry and Science and Technology Committee to consider the issue.
Ghana is engaged in
three international trade negotiations, which are the WTO development round of
negotiations, the trade portion of ACP and EU Cotonou Agreement and the ECOWAS
process.
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Parliament
approves water project for six towns
Accra (Greater Accra) 28
November 2002 - An amount of $10m Loan agreement between the Government and the
Kingdom of Spain for the financing of six water supply projects in the Eastern
region was on Wednesday approved by Parliament.
Eugene Atta Agyepong,
Chairman of the Finance Committee moved for the adoption of the Motion for the
report of the Committee after which Members unanimously gave their approval and
support for the loan facility.
He said in line with
Government's policy of providing potable water for a vast majority living in
both urban and rural areas, a financial agreement was concluded in 1998 between
the Republic of Ghana and the Kingdom of Spain.
The agreement is aimed
at improving the quality of water in the areas through rehabilitation and
improving the current capacity of the supply systems of Akim Swedru, Anum Boso,
Koforidua, Nkawkaw, Asamankese and Nsawam all in the Eastern Region.
Agyepong said the
Ghana Water Company that is the implementation agency has contracted a loan of
9,982,149.00 dollars from a Spanish Consortium - Gastagua/Ibadesa to help them
in the execution of the project. The project is expected to last for 24 months
and has a tax and levies exemption component attached to it.
The scope of works include
rehabilitation of existing boreholes, rehabilitation of existing elevated
tanks, distribution pipelines, replacement of machines and equipment,
installation of raw water pumps, rehabilitation of refurbishment of water
treatment plants and rehabilitation of weir, creation of impoundment and
construction of new water intake pumping station.
The objectives of the
project is to provide potable water through the development and expansion of
surface and ground water resources for those living in the areas and the
Committee observed that these towns have been experiencing severe water crisis
during the dry season.
Agyepong said the
Committee also observed that the quality and quantity of water in these areas
are below the expected levels and the loan would help correct and improve the
water situation in the six towns.
He said the Committee
was further informed that sicknesses and disease outbreaks associated with
unclean water in these areas would be reduced considerably and the loan would
go along way to improving the well being of the people in these six towns.
Kwabena Adusa
Okerchiri, NPP- Nkawkaw said the approval of the loan would bring a sigh of
relief to the people of the areas because of the perennial water problems that
face the people.
Daniel Tekpertey,
NDC-Yilo Krobo expressed concern about the way some projects are often
implemented that at the long run fail to serve its purpose. He said communities
in the Krobo areas should have also been considered to benefit from the project
since they have sacrificed their lands for the construction of the Volta Lake
and have no access to potable water.
Samuel Ofosu-Ampofo,
NDC- Fanteakwa said the Eastern Region has suffered from lack of potable water
especially the regional capital, Koforidua while the main river Densu always
dries up in the dry season and suggested forestation along the river Densu
He suggested the need
for tapping ground water sources and other alternatives as a lasting solution
to the water problems of the region, adding that contracting of loans should be
approached holistically so that many communities can benefit.
Akwasi Osei-Adjei,
NPP- Ejisu/Juaben expressed concern about the use of treated water for car
washing instead of the use of raw water.
Kwadwo Baah-Wiredu,
Minister of Local Government and Rural Development said the project was a
challenge to the Ghana Water Company to prove their capabilities and ensuring
that the project was executed as planned.
He complained about
the use of Weirs in water supply and suggested its replacement with
construction of dams for retaining water through the year and suggested the
harvesting of rainwater to help solve the water problems of the community's
rehabilitation.
Steve Akorli, NDC- Ho
East said it seemed the towns earmarked for the project belong to the heavy
stalwarts of the New Patriotic Party and this drew a lot of interruptions from
the Majority side to deny the accusation. He said the weir system was not
suitable to the country because it easily loses water during the dry season and
suggested that the engineers need to take a second look and look for system
that can retain and preserve water.
J.H. Mensah, NPP-
Sunyani East and Senior Minister said the project was an interim one and at the
appropriate time a definite move would be made to tap water from the Volta
River to serve many of the towns around the area.
Yaw Barimah, Minister
of Works and Housing in summing up said there was the need to revise the
attitude of people towards consumption of water since the issue of water supply
has the potential of generating into a disaster. He said the project was to
restore the capacity of the water systems and was an interim measure to help
solve the perennial water problem facing the people and said there were
long-term plans to find solutions to the water crisis of Koforidua and the
Krobo areas.
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Government
would not pamper local industries-Boniface
Accra (Greater Accra)
28 November 2002 – The Deputy Minister of Trade and Industry, Boniface Abubakar
Sidique has said that the government does not intend to pamper or protect
unduly local industries from foreign competition by the tax regimes and
incentives it is offering to curb rising importation.
"Government wants
to provide a level playing field for local industries to expand and compete
favourably with outsiders at least on their own soil."
The Deputy Minister,
who was answering Parliamentary questions, said low capacity utilisation of
local industries and the problems associated with the creation of new ones have
been blamed on intense competition from imports as a result the country's trade
liberalisation policy.
"Indeed, it has
been conceded that at the onset of the policy, some local manufacturing
enterprises that could not withstand the pressures from the liberalised regime
actually collapsed."
He said government
would not reverse the liberalisation process but take appropriate measures to
address unintended effects of the policy. The Deputy Minister mentioned the
rationalisation and streamlining of the tariff regime to ensure that local
industries are not discriminated against.
"The tariff
structure comprising of 0 per cent, 5 per cent and 10 per cent for capital and
immediate goods and 20 per cent for consumer goods is appropriately configured
to promote the development of domestic manufacturing and industrial capacity as
well as the agricultural sector."
He said an integrated
industrial policy to improve the capacity of Ghana's manufacturing sector for
efficient production for the domestic market and for export was one of the
strategies.
"There is support
to the export sector in form of medium to long-term finance for investment in
equipment and machinery as well as working capital through the Export
Development and Investment Fund."
In reference to
specific local production sectors, he said Ghana has a reasonable level of
potential in the production of poultry. "Domestic production accounts for
54 per cent of total national demand with the remaining 46 per cent being met
from imports.
Imported poultry
products into the country is subject to 20 per cent import duty, 12.5 per cent
VAT, 0.5 per cent EDIF levy,0.5 per cent ECOWAS levy and 1 per cent inspection
Fees.
He said, "in
addition, imported poultry and meat products have to satisfy a minimum fat
content on 15-35 per cent depending on the type of product."
The Deputy Minister
said government would institute measures to boost local support capacity before
additional tariff support is introduced, adding, "if this is not done, any
further tariff support might serve to protect inefficiencies."
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