Debates of 1 Feb 2006

MR. SPEAKER
PRAYERS 10 a.m.
CORRECTION OF VOTES 10 a.m.
AND PROCEEDINGS AND 10 a.m.
THE OFFICIAL REPORT 10 a.m.
Mr. Speaker 10 a.m.
Order! Order! Correction of Votes and Proceedings, Wednesday, 31st January, 2007. Page 1…8 [No correction was made in the Votes and Proceedings.]

Item 3 -- Questions. Majority

Leader, is the hon. Minister for Food and Agriculture in the House to answer Questions?
Mr. F. K. Owusu-Adjapong 10 a.m.
Mr. Speaker, he is on his way. He has not arrived so we can take item 5.
M r. S p e a k e r : I t e m 5 - - Commencement of Public Business.
PAPERS 10 a.m.
Mr. Speaker 10 a.m.
Item 6 -- Motion -- Chairman of the Committee?
Mr. E. K. D. Adjaho 10 a.m.
Mr. Speaker, I believe that this is a very important motion and the Report on it has just been laid. In fact, if you had seen me you would have called me earlier because the Deputy Ranking Member for Finance was even wondering whether there was a meeting to consider it.
So it means that even members of the Joint Committee did not attend the committee meeting. We are rushing it. This is quite a voluminous document and I want to plead that we defer this matter for hon. Members to study the Report, and study the document, so that we can then take it.
On 13th February, Mr. Speaker, I called for this document to be made available in the House, in fact to be laid. I managed to get a copy through the back-door, with the permission of the Majority Leader and the hon. Minister but because it was not formally laid, I could not make reference to it. Now that they have brought it formally to this honourable House, Mr. Speaker, I am pleading that we take this matter the first item on Tuesday so that we can have the opportunity of studying this document. We are going to support this motion anyway, but we need to study this document properly and then we can support it.
Mr. Speaker 10 a.m.
Deputy Minority Leader, I think I should give you five to ten minutes so that the Leadership can meet and decide on the course of action. I will stand it down for some few minutes.
Mr. J. Y. Chireh 10 a.m.
Mr. Speaker, I do not want to go against your ruling and direction -- [Interruption.]
Mr. Speaker 10 a.m.
Then you may wish to resume your seat.
Mr. Chireh 10 a.m.
Mr. Speaker, but this is an important document and you just said, “distributed”. The thing has just been distributed so it is not fair that you move the motion for us to start debate. This is an important document. When we begin to do things like this then we are taking for granted that we are going to rubber-stamp everything. This is an important Compact between Ghana and the Millennium Challenge Corporation so it is important for us to be given at least 24 hours before we take this motion.
If for any reason the Executive Branch of Government does not programme its duty properly, we should not be stampeded into taking decisions that are rushed. I think that we should at least be given 24 hours to take this motion. We should not just rush through this one again.
Mr. Speaker 10 a.m.
Hon. Member for Wa West, I have given a ruling on this matter, that the Leadership should go outside and try to resolve this matter.
ORAL ANSWERS TO QUESTIONS 10 a.m.
Minister for Food and Agriculture (Mr. E. A. Debrah) 10:10 a.m.
The Aveyime Rice

Project covers an area of about 3,177 acres. Since its establishment, this project has not seen effective functioning. Some four rice brokers have been milling paddy at the facility under the supervision of the Interim Management Committee that was put in place in 2001.

In May 2005, my Ministry started a programme to identify a Strategic Investor to partner Government to bring the mill into full operations. As a result, my Ministry received technical and financial proposals from valuers for consideration since we have to get the true value of the assets before opening up for strategic partners.

The evaluations of the proposals were carried out by the Ministerial Tender Committee and in December, 2005, contracts were awarded for the valuation of the farmlands and the mill. The valuations were completed and the report sent to the Ministry by the end of May 2006. As already mentioned, the valuation, and the figures thereof shall form the basis for the negotiation with any potential investor.

On July 19 2006, advertisements for the expression of interest were carried out in the national papers and in the DG Market. Six firms responded to the advert and the ministerial tender committee, in September 2006, invited them to submit their technical and financial proposals for consideration.

The proposals, included:

1. The running of the rice mill with Government of Ghana retaining fifty-one per cent (51%) equity share.

2. Cultivation of rice on the available land without Govern- ment's involvement.

3. Development of an out-grower

scheme for the local rice farmers.

The six firms included:

Messrs Integrated Rice Company Ltd P. O. Box 240, Osu, Accra.

Messrs Prairie Texas Inc. 3 4 0 8 F o r r e s t e r L a n e , Wa c o ,

Texas, 76708, USA.

Messrs Bonsu and Bordum Int. Ghana Ltd. Miamona Close, South Industrial Area P. O. Box 597 Kaneshie, Accra.

Messrs Finatrade Place du Midi 36-1950 Sion, Switzerland.

Messrs Valmont Irrigation 7002N, 288th Street Nebraska 68063-0358, USA.

Messrs Uniex Ghana Ltd. 1st Floor, Kojo Thompson Road, Adabraka P. O. Box CT 1562, Cantonments, Accra.

Only two out of the six firms submitted proposals as at the closing date of 26th October, 2006. They are Messrs Integrated Rice Company Limited and Messrs Prairie Texas Inc.

Proposals of the two firms have been evaluated and recommendations forwarded to Cabinet in December 2006. Cabinet has also referred the report to its Sub-Committee for study and advice.

Mr. Speaker, as soon as we finish with that, we will enter into negotiations and we will re-activate Aveyime farms.
Mr. Debrah 10:10 a.m.
Mr. Speaker, so far as I
know, I have seen one evaluation report in addition to mine.
Mr. Hodogbey 10:10 a.m.
Mr. Speaker, in his concluding statement, he said the proposals of the two firms have been evaluated and recommendations forwarded to Cabinet in December 2006: He added that Cabinet has referred the report to its Sub- Committee for study and advice.
In his statement made to the press on January 15th, however, he stated “Aveyime rice project to bounce back in June 2007”. Did Cabinet approve the recommendation before he made this statement? Because in his final statement, he is not giving us any date.
Mr. Debrah 10:10 a.m.
Mr. Speaker, I have
not seen that report but I know that it might have come from an interview I granted to Joy FM on Aveyime, after a press conference or something else had happened on Aveyime. And at that meeting, I was asked to give a date that I think it would be reactivated and I told them that the process is going on and I am not sure I can fix an exact date.
And then the host asked me, “do you think that by June, you would have completed?” and I said “yes, I think by June we would have completed”. Where we have reached right now, I believe that by June we would have completed the Aveyime project.
Mr. Hodogbey 10:10 a.m.
Mr. Speaker, in the Minister's own report he sent to the investors, dated September 2006, he stated - item 19 - that the project is expected to
Mr. Speaker 10:10 a.m.
What are you holding?
Mr. Hodogbey 10:10 a.m.
This is the “Proposal for Strategic Investors - Development of Aveyime Project, - Ministry of Food and Agriculture, September 2006.
Mr. Speaker 10:10 a.m.
Who signed it?
Mr. Hodogbey 10:10 a.m.
It was signed by his own Chief Director Kweku Owusu-Baah for Minister of Food and Agriculture.
I believe he saw the document which stated the project is expected to commence in January, 2007, and I am asking why in his own final conclusion he is no more giving a date. Why the divergence?
Mr. Debrah 10:10 a.m.
This is something that we sent to people to submit proposals for the project and we were expecting that the proposals would come early for us to commence business in January. That was why we said “it is expected”. It was an expectation depending on how things would go, depending on how early they brought their proposals. So that was an expectation that we had at the time that we were forwarding the proposals to them.
Mr. B. D. K. Adu 10:10 a.m.
Mr. Speaker, I would like to know from the Minister, or he should tell the House, why it took so long before identifying a strategic investor to partner Government - five good years. Why?
Mr. Debrah 10:10 a.m.
Mr. Speaker, the search for a good strategic investor takes quite some time. Already, if Mr. Speaker is aware, there are some State organizations or State enterprises which have been divested and which have seen no work at all; they have been divested and they are still standing there; no work is being done on them.
So the search for good strategic investor takes some time. Coupled with that, there is a need for transparency in the search for strategic investor and the chronological effect of this is that when you advertise internationally, it takes about 60 days before you can close it up. So the search for a strategic investor takes some time, and the processes leading to getting one also take some time.
So it is as a result of transparency and due diligence that probably it has taken quite some time.
But once can see from what I have said that since we started looking for one on 5th May, we have been very fast on the track. So now that we are getting to the end of it, it is important that we ensure we have got a strategic investor good enough to handle the project.
Mr. G. K. B. Gbediame 10:10 a.m.
Mr. Speaker, may I know from the hon. Minister, the state of the equipment - the machinery on the field - looking at a five-year period -- whether they still maintain their quality. Most specifically, we want to know where the helicopter attached to the project is.
Mr. Debrah 10:10 a.m.
Mr. Speaker, please he should repeat the last question -- where the -- [Interruption.]
Mr. Gbediame 10:10 a.m.
Where is the helicopter attached to the project located.
Mr. Debrah 10:10 a.m.
Mr. Speaker, as I said
Mr. C. K. Humado 10:20 a.m.
Mr. Speaker, I would like to know from the hon. Minister what the total value of the assets is, from the valuation report; and in respect of proposal No. 2, what happened to the equipment for cultivation of rice since Government would not be involved in the rice production.
Mr. Debrah 10:20 a.m.
Mr. Speaker, I think for the valuation, we have to keep it a bit closed until we finally settle on who gets it, because people have put in their financial and other proposals. So let us hold on because it will ultimately come here for us to know. What is the second question?
Mr. Humado 10:20 a.m.
The second question is whereas in the first proposal, you were specific about Government's involvement in the milling of rice, which means that rice equipment is used, in the second proposal, it is not clear as to what happens to the equipment for rice cultivation with respect to the strategic investor.
Mr. Debrah 10:20 a.m.
I think all these would be clear when we have completed. The first proposal is that Government is partnered by the strategic investor (SI) to run the rice mill. But for the rice cultivation, the SI does it on his own; Government does not participate in it, for the simple reason that if you look at all the farms that were established by the state -- State Farms,

Workers' Brigade and others -- once people got to know that Government was in, productivity went down so much. So all the rice equipment for the farms will go with the sale of the farms to the SI.

Pineapple Growers in the Ekumfi Area

Q. 619. Mr. George Kuntu-Blankson asked the Minister for Food and Agriculture whether there was a financial package for pineapple growers in the Ekumfi area, and if yes, what was the procedure for accessing the fund.
Minister for Food and Agriculture (Mr. Ernest Debrah) 10:20 a.m.
Mr. Speaker, the farmers at Ekumfi grow predominantly the sugarloaf variety of pineapples which is mostly for the local market. The sugarloaf commands good patronage in the local market. Infact, it is the most preferred variety by local consumers. Additionally, there is a growing export niche market for this variety. This offers great opportunity for small growers in Ekumfi to make decent incomes to improve their lot.
There are however constraints that militate against the farmers making the most of this opportunity. Some of the constraints include:
Lack of knowledge in production and post-harvest technology.
Small and fragmented production.
L a c k o f b u s i n e s s a n d entrepre- neurial skills.
Lack of negotiation skills and powers.
To address these constraints and transform these farmers and farming units into cohesive, vibrant, productive agribusiness
entities, the Ministry of Food and Agriculture in collaboration with the GTZ and support from the Dutch organization SNV, are undertaking the task of organizing the farmers into viable and cohesive groups which would have the ability of negotiating with buyers, input dealers, service providers and accessing credit and financial support.
So far, 1,590 farmers have been organized into 47 groups. They are being provided training in:
Group dynamics
Record keeping
Business management and
P r o d u c t i o n a n d p o s t - harvest practices et cetera.
About 100 people in the Ekumfi area have been registered to participate in the Youth Employment Programme whose focus is providing assistance to the youth in pineapple production.
Although the Ministry has not directly given the farmers cash as a form of financial package, when monetary value is placed on the activities that are currently being undertaken, the amount of assistance provided could be substantial. The intervention from the Ministry and its partners is laying a solid foundation that would enable farmers to attract resources, open up market avenues and other opportunities.
It would also ensure that resources that are channeled to these farmers now and in future would be utilised efficiently. Besides, as a result of these activities,
Ekumfi as a pineapple growing area is attracting keen attention from players in the industry (buyers, processors and Bankers). So they will have access to financial assistance from the banks.
Mr. Kuntu-Blankson 10:20 a.m.
Mr. Speaker, I would like to inform the hon. Minister for Food and Agriculture that the best National Farmer for pineapple is from Ekumfi, and the best Regional Farmer also is -- [Interruption.]
Mr. Speaker 10:20 a.m.
Your question, please.
Mr. Kuntu-Blankson 10:20 a.m.
The hon. Minister said Youth in Employment is capturing 100 people, and he said they have organized 1,590 farmers. I would like to know from him whether those 100 are included in the 1,590?
Mr. Debrah 10:20 a.m.
Mr. Speaker, the 100 are included in the 1,590.
Mr. Kuntu-Blankson 10:20 a.m.
Mr. Speaker, if the 100 organised youth are not included in the 1,590 whom they are organizing to train, does it not mean that we would come back to the same position where those 100 would lack training?
Mr. Debrah 10:20 a.m.
Mr. Speaker, the training started before the 100 youth were organized, and now that they have been organized, we would have to give them the same type of training: We cannot mix them with those who have already started the training. So they will get their training, as they have not been organized.
Mr. Kuntu-Blankson 10:30 a.m.
Mr. Speaker, I would like to also draw the attention of the Minister to the fact that, all said and done, all the training facilities have been given to the people. But when they enter into production and at the end of the day,
Mr. E. Debrah 10:30 a.m.
Mr. Speaker, I think I have already talked about organizing them into groups and training them so that they can then be in a position to be targeted with improved technologies. They can as a group now have access to finance because the training will enable them to know how to keep books and how to manage their affairs so that they can have access to finance from the banks.
Wi t h v e n t u r e s , t h e f i n a n c i a l intermediary is never the Government. The Government or the Ministry of Food and Agriculture facilitates agriculture in this country, and what we are doing now, is to train them in such a way that they can easily have access to funding from the banks. That is exactly what we have done. trained on how to handle their affairs -- minutes, book-keeping, marketing, accessibility to markets and others -- they can easily have funding from the banks.
As I said, an interest has been created, and as he rightly said an industry is springing up. And I say that because of the pineapple thing at Ekumfi, it is now attracting attention for key stakeholders; and these stakeholders are marketers, bankers and farmers. So there are bankers already in there; if you go there right now, you will realize that some of them are having funding from banks.
Mr. Kuntu-Blankson 10:30 a.m.
Mr. Speaker, I just want to ask the Minister whether he is aware that the President directed that
€500 million should be allocated to that entrepreneur to complete that industry in order to facilitate the production in the area.
Mr. E. Debrah 10:30 a.m.
Mr. Speaker, I am not aware that €500 million has been given to an entrepreneur to expand his business there.
Mr. F. A. Agbotse 10:30 a.m.
Mr. Speaker, I would like to find out from the Minister if he is aware of EDIF -- Export, Development and Investment Fund - and that pineapple was specifically one of the crops for export that should come under it. And if so what is his Ministry doing to access this money for the farmers in Ekumfi?
Mr. E. Debrah 10:30 a.m.
Mr. Speaker, I said in my presentation that sugar loaf is now attracting a niche market externally, and that external market is in the United States (US); and we have seen the potential and moved in. Because the farmers were fragmented and they were small holders, we have now organized them into groups to train them so that they can meet the challenges of the niche market that is being established.
All that we are doing; putting them under training et cetera is to really equip them to take advantage of the opportunities that are available right now. That is exactly what the Ministry has done. And as I said, it is now attracting attention and marketers have come in, financiers have come in, and a lot of the youth are moving into pineapple farming.
So the awareness has been created, people have been trained. They have been put into groups and they have been trained. Therefore, they can now access new facilities, technologies; and they are producing to support the emerging niche market as well as the processing facility
that is being put up at the place. So they are being supported to take advantage of the new opportunities.
Mr. Speaker 10:30 a.m.
Question 763. Hon. Albert Abongo, Member of Parliament for Bongo.
CHICKEN/GUIINEA FOWL
TRADERS (COMPENSATION)
Q. 763 Mr. Albert Abongo (Bongo) asked the Minister for Food and Agriculture what compensation would be paid to chicken/guinea fowl traders who had their birds destroyed on transit from t he Upper East Region to Accra during t the Ministry's exercise to control bird flu in the country.
Mr. E. Debrah 10:30 a.m.
Mr. Speaker, global concern about avian influenza also known as bird flu, heightened in 2003 when outbreaks of t he disease were reported in poultry in the Asia Region. The disease which also affects humans, had also claimed some lives.
On 16th January 2006, the first outbreak of the disease on the African Continent was reported in Nigeria. By the sixth of February 2006, the disease had spread to Niger which is the northern neighbour of Nigeria through the movement of infected birds to that country.
The disease appeared in Burkina Faso,
our northern neighbour on the 1st March 2006 and in La Cote d'Ivoire on the 31st March 2006.
As part of measures to prevent the introduction of the disease into Ghana, on 4th April 2006, a ban was placed on the importation of live poultry and poultry products including feathers from Burkina Faso.
Mr. Speaker, on Sunday 9th April 2006, a Burkina Faso registered articulated truck was intercepted at the Ofanko Barrier by the Police, carrying 401 guinea fowls, 60 pigeons and 9 cockerels. Upon investigations and interrogation by staff of my Ministry, it was discovered that the birds were brought into the country from markets across the border in Burkina Faso. The Veterinary Services Directorate of my Ministry, satisfied with the fact that the animals came from Burkina Faso, had to destroy them.
The destruction of the birds which we were satisfied came from an Avian Influenza infested country Burkina Faso, was to avert the introduction of the disease into the country. There was a ban in force on the importation of live poultry and poultry products including feathers from Burkina Faso at that time. The importation was therefore an illegality and there is compensation to be paid to the traders whose birds were destroyed.
Mr. Abongo 10:30 a.m.
Mr. Speaker, the
Minister says that the Veterinary Services Directorate having been satisfied that these items were coming from Burkina Faso decided that they should be destroyed. But the Minister will agree with me that a whole articulated truck would not have been carrying only 401 guinea fowls, 60 pigeons and 9 cockerels.
Indeed, these fowls were put on board by these traders from the Upper East Region because there was still space in that truck to take up an additional cargo of this nature.
So intercepting them at Ofankor barrier and assuming that all other things coming in were from Burkina Faso was unfair. I would like to find out from the Minister if he has not received definite reports stating that indeed these were traders from the
Mr. Debrah 10:30 a.m.
Mr. Speaker, as I said,
upon interrogation and investigation, it was found out that these birds came from markets across the border and that was why we had to destroy them.
So if the traders put them on the vehicle in Ghana, they came through the border; and he knows as well as I do that in that area you can easily walk across the border with these animals. There are unapproved routes that the traders take. Investigations and interrogation proved that they came from across the border and because we had banned products from Burkina Faso at that time -- poultry and poultry products including feathers - we had to destroy them.
Mr. Speaker, so please, we should not joke with these things. We had to take these measures in the interest of this country. They could have brought bird flu to this country. They knew we had banned that and they brought them in, and therefore we will not pay compensation for the birds destroyed.
Mr. Abongo 10:40 a.m.
Mr. Speaker, the hon. Minister said that we should not joke with the matter. I equally feel that his Ministry was joking with the matter. The truck moved from Burkina Faso, through Paga up to Ofankor barrier here; and that was where the chicken were destroyed. Is the Hon. Minister saying that his Ministry joked with the matter to the extent that they could not intercept at Paga, they could not intercept in Bolga, they could not intercept around Tamale, right through the Ashanti Region until they got to the Ofankor barrier? Mr. Speaker, I beg to
Mr. Charles Hodogbey 10:40 a.m.
Mr. Speaker,
the hon. Minister, said they notified people to stop importation of poultry products. How was the information sent? Were there notices at the borders telling people not to bring in poultry products, or the information was just given to the officers to do that?
M r. S p e a k e r : T h i s i s n o t a
supplementary question, so he need not answer.
Mr. Alfred Agbesi 10:40 a.m.
Mr. Speaker,
I want to know from the Hon. Minister whether we are safe from bird flu.
Mr. Debrah 10:40 a.m.
Mr. Speaker, I can tell
him that we are safe from bird flu. Bird flu hit, as I said, Africa last year and we immediately put in place a crack team to ensure that it did not come to Ghana. The team worked so well and the result was that we did not get bird flu in Ghana.
The measures that were put in place were so far reaching and effective that the FAO said any country that wanted to learn or find ways and means of preventing bird flu from hitting them must come to Ghana and learn from us. The task force is still in place and we are still carrying out the measures because it has not yet left Africa. I can tell hon. Members that we are safe from bird flu only if we do not do the sort of things that I am talking about.
We have sealed our borders; you cannot bring in poultry products and poultry from across countries that have been infected. If you do not use the approved routes and you end up being undetected until you travel all the way to Accra, then I can tell you that we are safe.
Silo at Forifori (Rehabililitation)
Q.764 Mr. Raphael Kofi Ahaligah asked the Minister for Food and Agriculture what steps the Ministry was taking to rehabilitate the silo at Forifori in the Afram Plains.
Mr. Debrah 10:40 a.m.
Mr. Speaker, the Ministry, in its desire to establish national strategic buffer stock, undertook a nation wide survey on government grain facilities last year. A total of 28 (twenty-eight) silos were identified during the survey. Forifori site was one of the sites with a drying capacity of seventy-two (72) MT/batch and storage basin of 600MT capacity.
Information gathered at the Forifori grain processing site indicated that the facility was closed down some eight years ago. The reasons for the closure were the fluctuating levels of maize production in the area and the high cost of haulage at that time, rendering patronage of the facility low.
Some of the systems of the silos (reception pit, dryers et cetera were found to be in good working condition.
However, since the facility has not been put in operation for some time now, the report recommended that the facility should be test-run with the view to ascertaining its operational status and cost of rehabilitation.
A programme has been set up for the test which the Ministry is pursuing.
So when that is over, we will rehabilitate Forifori
Mr. Ahaligah 10:40 a.m.
Mr. Speaker, the
answer to this question is not what is on the ground. The truth of the matter is that they need twenty million cedis to connect the national grid to the place. But as at the time of asking this Question, no solution had been found to this. What is
his Ministry doing about that?
Mr. Debrah 10:40 a.m.
Mr. Speaker, I think in
his opinion; he thinks it is only the twenty million that they need to rehabilitate Forifori, but that is not it. We need to have a very comprehensive look at it; and test running it and finding its operational status will include power supply to the site.
So when we have done everything, we will be able to know what to do with Forifori.
Mr. Ahaligah 10:40 a.m.
Mr. Speaker, I want
to know from the hon. Minister whether his Ministry will consider introducing the pro-cocoon type of preservation of cereals in the Afram Plains.
Mr. Debrah 10:40 a.m.
Mr. Speaker, we have
already ordered pro-cocoon into the country as a storage for strategic buffer stock for the country. And I said this is for storing strategic buffer stocks because of the advantages of pro-cocoon. So it only meant to store strategic stocks; it is not meant for farmers.
Mr. E. K. Bandua 10:40 a.m.
Mr. Speaker, in the hon. Minister's Answer, he said that in the survey being carried out by his Ministry, twenty-eight silos were identified. I want to find out from him the number of those silos that are in operation as at now.
Mr. Debrah 10:40 a.m.
Mr. Speaker, I cannot
give the number right now because that was not part of the Question. If he wants it, I can provide him with the information later.
Mr. J. K. Avedzi 10:40 a.m.
Mr. Speaker, in
his Answer the hon. Minister said, a programme has been set up for the test- run, which the Ministry is pursuing. How long will the Ministry pursue the test?
Mr. Debrah 10:50 a.m.
Mr. Speaker, test running is with regard to the equipment but as I said, we are pursuing a programme to

identify a whole lot of problems associated with Forifori, one of which is identified as power supply to the site. So in the course of the year, because they are going to use it for the storage of strategic stocks, they will test run it, find all the problems and do the cost-benefit analysis of it and then rehabilitate it, if we find it necessary.

Q. 906 Fair Prices for Farmers' Produce

Alhaji Issifu Pangabu Mohammed asked the Minister for Food and Agriculture what steps the Ministry was taking to ensure that Ghanaian farmers obtained fair prices for their produce.
Mr. E. A. Debrah 10:50 a.m.
Mr. Speaker, in the first instance, a fair price is very difficult to determine. What might be fair to you might not be fair to another farmer. But we will talk about it later on. I know that he is trying to talk about equitable price or something of the sort so we will talk about that. I also know that he is a maize farmer and he is talking about low prices when a lot of maize comes to the market and the prices go down, just rise at a later time -- being exploited by marketers.
Mr. Speaker, unt i l the 1990s, guaranteed minimum prices were being used to provide stable prices for Ghanaian farmers. The scheme was abolished in the early 1990s, when Ghana pursued a policy of trade liberalization under the Economic Recovery Programme. In trade libera-lization, prices of commodities are determined by the factors of supply and demand. This means that in a year of good harvest, farmer may become worse off as his farm produce are bought at low prices.
Mr. Speaker, in order to protect farmers from these low prices, in times of good harvest, and in order to avoid exploitation by middlemen, the Ministry of Food and Agriculture is establishing a national
grains buffer stock for maize which will help stabilize prices for farmers.
Mr. Speaker, under the scheme produce will be purchased from the farmers at periods of over-supply and sold back on the market in periods of low supplies. However, if we are talking about stability of prices of agricultural products, then the Ministry is facilitating the provision, processing and marketing facilities throughout the country. These are expected to stabilize prices for farmers.
For example, we are trying to support
the private sector to rehabilitate the Wenchi Tomato Factory so that when tomato is in good supply, they will take over.
So the only way we can stabilize prices is to ensure that we increase the shelf life of these products by processing and the Ministry is facilitating the provision of processing and marketing facilities through private entrepreneurs in the country.
Alhaji Pangabu Mohammed 10:50 a.m.
Mr.
Speaker, according to the hon. Minister, in order to protect farmers from low prices in times of good harvest, the Ministry is establishing a national grain buffer stock for maize farmers. My question is, when is the effective date for the implementation of the buffer system?
Mr. Debrah 10:50 a.m.
Mr. Speaker, as I said, the buffer stock is meant to wipe out surpluses when the produce is in abundance. We would have started this year -- in fact we started when we found out that we had a very good season during the major season. Unfortunately, the minor season was so bad and the prices have now reached a point that farmers are happy with. So the surpluses are not there to be wiped out, but we are now ready that anytime that it happens we will wipe out the surpluses.
Alhaji Pangabu Mohammed 10:50 a.m.
Mr. Speaker, before the hon. Minister answered the Question, he was trying to find out what in my view was a fair price for a farmer. But I know that before they give loans to farmers' groups, the Ministry undertakes to find out the cost of producing maybe one bag.
I want to ask the hon. Minister whether at the time of harvest and at the time of sale, the Ministry tries to go back to the market to find out whether the proposals, they made that a farmer may be able to get maybe 10 bags and the cost it attainable. Do you go back to find out whether at the time of selling, the price at which the farmer is selling, he will be able to, at least, get to the target he set?
Mr. Debrah 10:50 a.m.
Mr. Speaker, I think
I will need to have a whole session of discussion with him; that cannot be done there. Fair price also relates to productivity. For example, if you grow maize and you get five bags per acre, you would have done one acre weeding three times -- every turning of one acre. If you get five bags and your cost is 1 million, then anything below ¢200,000 will not be a fair price to you.
But it is also proven that you can make 15 bags of maize, per acre. So if your productivity is high and you are able to make 15 bags per acre at a cost of ¢1.5 million, then even ¢150,000 per bag of maize will give you ¢1.750 million; and that can be a fair price. So whereas in the first instance, ¢200,000 will be a fair price, in the other instance because of increase in productivity, ¢150,000 can be a fair price.
So a lot of things go into determining what fair price is, and that is why I said I am not sure about what is actually fair. But I thought that he was talking about stable
prices and affordable prices to ensure that farmers do not lose when they produce.
Mr. Speaker 10:50 a.m.
Hon. Member for Ejura-
Sekyedumase, I give you the last bite.
Alhaji Pangabu Mohammed 10:50 a.m.
Mr. Speaker, I want to find out from the hon. Minister whether there is good collaboration between the Ministry of Food and Agriculture and Ministry of Trade and Industry.
Mr. Speaker 10:50 a.m.
Hon. Member, this cannot be a supplementary question. If you have other questions, please ask them.
Alhaji Pangabu Mohammed 10:50 a.m.
Mr. Speaker, I want to ask the hon. Minister whether there is good collaboration between his Ministry and the Ministry of Trade and Industry.
I am asking this question because if you look at Soyabean, for instance this year -- [Interruption] -- because you will find out that when farmers have produced at a point where they can sell at a good price, the Ministry of Trade and Industry would import plenty of Soyabean cake into the country to the extent that the Ghanaian farmer would not be able to sell his soya bean. That is why I am asking this question.
Mr. Speaker 10:50 a.m.
Hon. Member, direct that question to the hon. Minister for Trade and Industry.
Dr. Ahmed Yakubu Alhassan 10:50 a.m.
Mr. Speaker, I want to find out from the hon. Minister for Food and Agriculture whether he agrees that over-liberalized food crop production does not respond positively to an over-liberalized economy, and whether he is doing something about changing the situation?
Mr. Debrah 10:50 a.m.
Mr. Speaker, it is not straightforward whether we have over- liberalized this and that. It is a question
Mr. Debrah 10:50 a.m.


of efficiency of production and in some instances if you bring in controls then you create inefficiency. But as you rightly said, if you over-liberalize you also create a problem. But can say that in Ghana, we have not over-liberalized.
Mr. Speaker 10:50 a.m.
Hon. Minister for Food and Agriculture, thank you very much for appearing to answer these Questions. You are discharged.
We will go back to Item 6 -- Leadership of the House, what have you agreed?
Mr. Ossei Aidooh 10:50 a.m.
Mr. Speaker, we have come to a compromised position. So that this matter would not lose its national identity, we have agreed that it might be taken first thing tomorrow morning. So that this mater should not pass with rancour and acrimony, we have agreed that it be taken tomorrow morning, first thing, instead of Tuesday as was already -- [Interruption]
Mr. Speaker 10:50 a.m.
Hon. Majority Leader, what is it? Is it tomorrow?
Mr. Bagbin 10:50 a.m.
Mr. Speaker, we have
Mr. Bagbin 10:50 a.m.


agreed that it be taken tomorrow.
Mr. Speaker 10:50 a.m.
All right Items 6,7 and 8 deferred. These items will be taken tomorrow. Hon. Deputy Majority Leader at this stage -- [Interruption] --
Mr. Ossei Aidooh 10:50 a.m.
Mr. Speaker, may I move that we adjourn proceedings to tomorrow morning at 10.00 o'clock.
Mr. Adjaho 10:50 a.m.
Mr. Speaker, I beg to second the motion.
Question put and motion agreed to.
ADJOURNMENT 10:50 a.m.
THE 10 a.m.
PARLIAMENT OF THE REPUBLIC 10 a.m.
OF GHANA 10 a.m.
MR. SPEAKER
PRAYERS 10 a.m.
CORRECTION OF VOTES 10 a.m.
AND PROCEEDINGS AND 10 a.m.
THE OFFICIAL REPORT 10 a.m.