Debates of 2 Mar 2006

MR. SPEAKER
PRAYERS 10:02 a.m.
CORRECTION OF VOTES 10:02 a.m.
AND PROCEEDINGS AND 10:02 a.m.
THE OFFICIAL REPORT 10:02 a.m.
Mr. J.A. Ndebugre 10:02 a.m.
Mr. Speaker, the Joint Committees of Appointments and the Judiciary also met but there is no indication in the Votes and Proceedings. I just wanted to draw your attention.
Mr. Speaker 10:02 a.m.
I am sure it would be
captured in tomorrow's Proceedings. Hon. Members, we have a number
of Official Reports. The first one is for Wednesday the 15th of February, Thursday, the 16th, Friday, the 17th, Tuesday the 21st, Wednesday the 22nd and Thursday, the 23rd.
Mr. B.D.K. Adu 10:02 a.m.
Mr. Speaker, all
these were put in our pigeon holes about two days ago and we do not have them. I particularly do not have mine but I have heard others murmuring that they do not have them.
Mr. Speaker 10:02 a.m.
We shall arrange that all
of you have copies thereof.
STATEMENTS 10:20 a.m.
Mr. David Oppon-Kusi (NPP - Ayirebi/Ofoase) 10:20 a.m.
Mr. Speaker, I rise to contribute to the Statement made by the hon. Member for Bosome Freho, who happens to share a boundary with my constituency; and in doing so I would like to make few comments on what he has said.
Mr. Speaker, widening the tax net, as opposed to deepening it should be the way forward. If a lot more of our citizens who earn income could be roped into the tax net. it could further ease the burden on the few who now pay taxes for the rest of the country.
There is a proverb in Fanti which says “Wonam beenu soa nyankopon a, kor nbo fuu”, to wit, “if two people carry the Almighty God none of them would break his or her spine”. It means that if we share the burden, if we widen the net, we will all be able to carry the Almighty God; and it will rake in more taxes for the country. There are so many people, as he said, in the informal sector who do not pay taxes not because they do not want to pay but probably because we do not have systems in place that will identify them and then help them to pay those taxes.
Mr. Speaker, the time has come for us as a nation to look at the systems we can put in place that will help us, first, to identify people who should be paying taxes, to track them, and to be able to collect these taxes. And in doing so, Mr. Speaker, I think the national identification system will come as very, very necessary here. It will help provide the necessary database to help our tax administrators in evaluating the taxes that should be imposed on people who earn income. I believe that, Mr. Speaker, the national identification system could be used for many things. A country where we cannot
identify people, a country where people can simply get lost in the crowd, so to speak, is very, very difficult to govern; so we should take advantage of this national identification system to help register tax payable people so that we can widen the net.
Mr. Speaker, another area that can help us is in the form of indirect taxes. In other economies indirect taxes are imposed on commodities like alcohol and cigarettes. Mr. Speaker, for me, if we could impose higher taxes on alcohol we will, in the first place, be able to increase our tax base as well as help people stop the very bad habit of alcoholism. And in the case of cigarette smoking - [Interruption.] No, Mr. Speaker, seriously cigarette smoking has been a problem and we have not been able to deal with it. One way of dealing with cigarette smoking is to increase the taxes on cigarettes such that it is either a deterrent, or for those who still want to smoke, we will be able to get enough money from them to help the tax system.
Mr. Kofi Krah Mensah (NPP - Amansie West) 10:30 a.m.
Mr. Speaker, I want to contribute to the Statement on the floor. It is not for nothing that it is said that there is no “representation without taxation.” People are too eager to be represented and yet they do not want to pay tax. I want to advise that people should be educated to appreciate that we need taxes to do almost everything in this country. Anytime I go to my constituency, I see far too many people asking for schools, clinics, hospitals, boreholes and what have you. Far too often they forget that all these they can get from taxes, and taxes alone, and that taxes provide these - [Interruption.]
Mr. Speaker 10:30 a.m.
Hon. Member for Evalue-Gwira, do you have a point of order?
Mr. Kojo Armah 10:30 a.m.
That is so, Mr.
Speaker. My Speaker, I heard my hon. Colleague say that there is no taxation without representation, “but the proper rendition is that “there is no representation without taxation.” That is for the record.
Mr. K. K. Mensah 10:30 a.m.
I thank him,
Mr. A. O. Aidooh 10:30 a.m.
Mr. Speaker, I
think the hon. Member for Evalue-Gwira is rather wrong. There is no taxation without representation; that is right.
Mr. Speaker 10:30 a.m.
Hon. Members, whatever it is let him go on. - [Laughter.]
Mr. K. K. Mensah 10:30 a.m.
Thank you, Mr.
Speaker. No doubt it is said that there are only two certainties in life; and these are taxes and death. We all know we will die but we forget that we should pay taxes. We all need to pay our due share of the tax. The fact is that only a small percentage of us pay tax and far too often we forget that even donor funds, which we are too happy to receive, are other people's taxes. It is therefore good that we should be able to pay taxes; we should educate people to appreciate the need to pay tax. After all, the Good Book says it is better to give than to receive.
I also think that it is better to pay tax than to receive other people's taxes. Therefore, Mr. Speaker, I shall urge that in widening the net everybody, especially those in the informal sector, should be made to appreciate the need to pay more taxes -- especially churches.
Finally, Mr. Speaker, only a few percentage of people who work on a daily basis and who receive their salaries for the month through regular incomes are paying taxes; a whole lot of people in the informal sector are not paying much tax, if at all.
PERSONAL STATEMENT 10:30 a.m.
Mr. Speaker 10:40 a.m.
At the Commencement of Public Business - Hon. Minority Leader, do you have - [Hear! Hear!] Order! Order! [Interruptions!] Hon. Members, let us have decorum. Hon. Minority Leader, do you have a Statement to make?
Minority Leader (Mr. A. S. K. Bagbin) 10:40 a.m.
Mr. Speaker, by our Standing Orders and especially the Order that hon. Prof. Wayo Seini - [Interruption!] - quoted, Order 72 talks about a number of issues including explaining a matter of personal nature. And when one is talking about a matter of personal nature, then one does not invite comments or remarks from one's hon. Colleagues on the floor. But Mr. Speaker, the content that the hon. Member just read has gone beyond explaining a matter of personal nature; he has gone beyond the ambit of personal matter.
He talked extensively about a party that I lead in this House and talked about events at the party's national congress at which I, the Minority Leader was the Chairman of the Steering Committee. So Mr. Speaker, the matter has gone beyond something concerning issues of personal nature and I believe that I should be given
1207 Personal Statements 2 March , 2006
Mr. Speaker 10:40 a.m.
Hon. Minority Leader, you restrict yourself to what you say is a matter which is not personal. You may restrict yourself to that, the Koforidua aspect which you mentioned.
Mr. Bagbin 10:40 a.m.
Thank you very much, Mr. Speaker. Mr. Speaker, I just want to make the following comments - [Interruptions!]
Capt. N. Effah-Dartey (retd) -- rose
- 10:40 a.m.
Mr. Speaker 10:40 a.m.
Hon. Deputy Minister for the Interior do you have a point to raise?
Capt. N. Effah-Dartey (retd): Mr. Speaker, it is not a point of order, but I just wanted clarification. Mr. Speaker, the hon. Minority Leader has clearly explained the state of the law, that once a Member makes a Statement of a personal nature then Mr. Speaker will not invite comments. Now, Mr. Speaker, with the greatest of respect, I listened to the Statement and the hon. Member has described the circumstances which have led him to take a decision. Now, Mr. Speaker, if the hon. Minority Leader wants to isolate certain aspects of the circumstances and make comments on them, then I want to know whether with all respect, after he has made his isolated, specific comments you would entertain comments from other Members of the House. That is my worry, I just want clarification. Unless of course, Mr. Speaker, with all respect, you want to give him a special dispensation by virtue of his position as the Minority Leader. Mr. Speaker, that is entirely within your purview.
1211 Statements 2 March , 2006
Mr. Speaker 10:40 a.m.
We have not come to that. Please hon. Minority Leader, you may restrict yours only to this Koforidua matter.
Mr. Bagbin 10:40 a.m.
Mr. Speaker, the Statement by our hon. Colleague who has just resigned from his seat as a Member of Parliament Because this is not what we call cross-carpeting; he has resigned form his seat as a Member of Parliament, touching the organization of the national conference - [Interruptions!]
Mr. Speaker 10:40 a.m.
Hon. Minority Leader, do not be distracted.
Mr. Bagbin 10:40 a.m.
Mr. Speaker, I am just waiting for audience, but I am not being distracted.
Mr. Speaker 10:40 a.m.
Well, go ahead.
Mr. Bagbin 10:40 a.m.
Mr. Speaker, a few days ago, my attention was drawn to the fact that our former hon. Colleague had complained about some acts - [Interruption!]
Mr. Speaker 10:40 a.m.
Hon. Minority Leader, with the greatest respect, please restrict yourself to this Koforidua incident.
Mr. Bagbin 10:40 a.m.
Yes acts at the national congress touching on him. So Mr. Speaker, I personally visited our hon. Colleague and I gave him the opportunity to let me know what actually happened at the congress touching on him. Mr. Speaker, at the congress - [Interruption!]
Mr. A. O. Aidooh 10:40 a.m.
Mr. Speaker, with due respect to my hon. Friend, I think that what you said was that his comments must be relevant to the Statement. Mr. Speaker, in that context, the comments must be on the content of the Statement and not on matters which are extraneous to the Statement.
Mr. Speaker 10:40 a.m.
Hon. Minority Leader, please talk about the Koforidua incident which you did indicate.
Mr. Bagbin 10:50 a.m.
Exactly that, I am talking about the Congress; nothing apart from the Congress and it is really unfortunate that if what our Colleague is saying took place I think that it is regrettable, and all of us should condemn it because any of us could be a victim of such a situation. It is not something that one should encourage.
Majority Leader (Mr. Owusu- Adjapong) 10:50 a.m.
Mr. Speaker, ordinarily I would not have commented on what to me is a pure personal statement and therefore should not have warranted comments except that we are being told of a statement about a fine gentleman, a person I have known for a long time, a person I admire and who have been working seriously with his committee and on the floor of the House. And the question is missing contribution from such a person is my concern but then since this is a personal statement, I think all I would say is that I would wish him well in whatever new endeavours he intends to pursue and hope that he will continue to be in a position to contribute towards the development of this country.
Mr. Speaker 10:50 a.m.
Deputy Minister for Finance and Economic Planning, I understand you want to take a certain course - [Interruptions.] -- Deputy Minister, please go ahead.
Dr. Anthony Akoto Osei 10:50 a.m.
Thank you,
Mr. Speaker, I would like to crave your indulgence that on the 20th January, 2006 a Paper was laid on behalf of my Minister by the hon. Majority Leader. Mr. Speaker, I would like to crave the indulgence of the House to withdraw that Paper.
Mr. Speaker 10:50 a.m.
Which one, please?
Dr. Osei 10:50 a.m.
Loan Agreement between the
Government of Ghana and Social Security and National Insurance Trust (SSNIT) for an amount of $15 million or its cedi equivalent. With your indulgence. Thank you, Mr. Speaker.
Paper by Leave withdrawn.
Mr. Owusu-Adjapong 10:50 a.m.
Thank you,
Mr. Speaker. I thought he should have added that he is supposed to re-submit an amended Paper on the Loan Agreement at the appropriate time.
Mr. Speaker 10:50 a.m.
Thank you. Item 4 - Laying of Papers. The following Papers to be laid -- Minister for Finance and Economic Planning?
Majority Leader 10:50 a.m.
Mr. Speaker, I
crave your indulgence to allow the Deputy Minister to lay this Paper on behalf of his Minister.
Mr. Speaker 10:50 a.m.
Right, permission
granted.
PAPERS 10:50 a.m.
Mr. Speaker 10:50 a.m.
The Paper is laid for distribution. Item 4C -- Chaiman of the Committee on Finance?
Mr. Agyei-Addo 10:50 a.m.
Mr. Speaker, the
Chairperson is not here at the moment and I was wondering if I could be allowed to lay the Paper.
Mr. Speaker 10:50 a.m.
Yes, go ahead and lay it.
By Mr. Adjei Addo (on behalf of the Chairman of the Committee) --
Report of the Finance Committee on the Loan Agreement between the Republic of Ghana and the African Development Fund for an amount of UA 25,000,000 (UA$37.75 million equivalent) for financing the Urban Poverty Reduction Project (Poverty II) and a request for tax and duty exemptions on goods, services and other items to be procured under the project.
Mr. Speaker 10:50 a.m.
Item 5 - Motions.
MOTIONS 10:50 a.m.
Mr. Speaker 10:50 a.m.
Order!
Background and Introduction
Article 252 (2) of the 1992 Constitution of Ghana and the District Assemblies Common Fund Act, (1993), Act 455 mandates/enjoins Parliament to make provision for the allocation of not less than five per cent (5%) of the total revenue of Ghana to the District Assemblies' Common Fund for development programmes. Section 7(a) of the District Assemblies' Common Fund Act, 1993 (Act 455) also requires the Administrator to propose annually for the approval of Parliament a Formula for Sharing the Common Fund to the District Assemblies.
In pursuance of article 252(2) of the 1992 Constitution and Section 7 (a) of the District Assemblies' Common Fund (DACF) Act 1993, (Act 455) the hon. Majority Leader and Minister for Parliamentary Affairs, Mr. F.K. Owusu- Adjapong, on Friday, 17th February, 2006 laid before Parliament the Proposed Formula for Sharing the 2006 District Assemblies' Common Fund.
Mr. Speaker referred the Proposed Formula to the Committee of the Whole for consideration and report.
The Committee of the Whole met on Thursday, 23rd February 2006, deliberated on the Proposed Formula and accoridingly reports:
Acknowledgement
The Committee acknowledges the contribution of Members and the under- listed State Officials who participated in the deliberations:
i. The hon. Minister for Finance and Economic Planning
ii. The hon. Minister for Local G o v e r n m e n t a n d R u r a l Development
iii. The Administrator of the Dis- trict Assemblies' Common Fund and his Officials.
References
The Committee of the Whole in considering the Proposed Formula referred to the following documents:
i. The 1992 Constitution of the Republic of Ghana
ii. The Standing Orders of Parliament
iii. The Local Government Act, (1993) Act 462
iv. The District Assemblies' Common Fund Act, (1993) Act
v. The 2005 Report of the Committee of the Whole on the Proposed Formula for Sharing the District Assemblies' Common Fund.
Development of the Formula
Considerations in Developing The Formula
The conceptual shift in the meaning
of development since the 1960's has necessitated a change of the key indicators as well. Thus, the mainstay of development now is the “basic human needs” approach and not only economic indicators.
Deve lopment o f the Formula involves identifying factors which are quantifiable and capable of depicting all the considerations of the Formula. Verifiable indicators are then derived for these factors, measured and combined in a mathematical relationship to arrive at a component proportion for each District.
The philosophical basis of this formula is to address the level of imbalance in resource allocation for development. With these considerations in view, the following, five (5) factors have been adopted in the 2006 Proposed Formula.
i. The Need Factor: The sharing should take into consideration the level of development of each district with the view to addressing imbalances in the level of development.
ii. Responsive Factor: That the sharing should motivate the Districts to generate more local revenue for their development.
iii. Equality Factor: District should have access to some minimum level of funding.
iv. Service Pressure Factor: Urban areas should be compensated for the over-utilisation of their facilities.
v. Reserve: There should be a Reserve Fund to cater for contingencies and bulk purchases for the Districts, and also cater for the Monitoring and Evaluation of the districts by
the Office of the Administrator.
New Factors Introduced
The sharing Formula has become a matter of concern to Stakeholders and the Public as well. As a result the Formula has been reviewed a couple of times since its inception. In 2001 Doctor/Population ratio and Teacher/Pupil ratio featured significantly in the Proposed Formula. Further review of the Formula in 2004 introduced:
i. Percentage of Tarred Roads and
ii. Nurses/Population Ratio Proposals for 2006
The factors and the indicators used this year are as follows:
Need Factor
(a) Health (i) Facilities (ii) Doc/Pop. Ratio (iii) Nurses/Pop. Ratio
(b) Education (i) Facilities (ii) Teacher/Pupil Ratio
(c) Water -- Water Coverage
(d) Roads Proportion of Tarred Roads.
B. Responsiveness Factor
C. Service Pressure Population Density
D. Equality Factor No indicators are required.
E. Sanitation Factor
In 2005 (last year), the Sanitation Fund was shared among the Metropolitan and Municipal Assemblies in the following
1215 Statements 2 March , 2006
Mr. Speaker 10:50 a.m.
percentages:
AMA 40 per cent
KMA 20 per cent
TMA 10 per cent
SAEMA 10 per cent
TAMALE 10 per cent
RESERVE 10 per cent
Proposed Weighting Scenarios
Three (3) different scenarios for weighting were presented in the Proposed Formula. These Scenarios have been obtained by varying the weights for the Need Factor, Service Pressure, Responsiveness and the Equalisation. These are represented by Scenarios A, B. and C.
Factor Scenario A Scenario B Scenario C
%
% % % % %
Equality

Need 40

35 40

Health Facilities 6

5 5

Doc/Pop. 6

5 5

Nurse/Pop. 6

5 5

Educ. Facilities 6

5 5

Tr./Pop. 5

5 6

Water Coverage 5

5 6

Tarred Roads 6

5 7

Responsiveness

Improvement Service Pressure

Creation of New Districts in Relation to the A,B,C, ScenariosThe creation of additional twenty-eight (28) districts necessitated a slight deviation

of the previous Formula. The Equality Factor for 2006 has been given prominence than other factors because it gives a reasonable minimum to each District.

Simple correlation analysis of the three scenarios show that under Scenario A, 79 Districts received their highest amounts. Under Scenario B, 23 Districts received their highest amounts whilst under Scenario C, 36 Districts received their highest amounts. However, the highest allocation of 15.483 billion was for AMA and the lowest of 4.766 billion was for South Tongu. As a result Scenario A becomes the best and obvious choice for adoption.

Observations (And Concerns Expressed)

Increment of the Fund from 5 per cent to 71/2 per cent.

Hon. Members expressed concern about the need for the Fund to be increased from

5 per cent 7.5 per cent. It was however, observed that this suggestion needed to be tabled in accordance with the Procedures of Parliament.

Percentage for Community Policing and Protection

The issue of Community Policing was discussed at length after which it was unanimously agreed that the Poverty Alleviation component of the Common Fund be increased from 15 per cent to 20 per cent. The rational is to allocate three- quarters (3/4) to Community Policing in all the 138 Districts and the remaining quarter (1/4) for Poverty Alleviation.

It was also observed that the Ministry of Manpower and Employment in collaboration with the Ministry of Local Government and Rural Development are working out the details for immediate implementation of the said Programme.

The concept of Community Policing and Protection was embraced and unanimously agreed upon, as in the Committee's view it would generate employment and help bring about peace and order in the Communities.

Sanitation Fund

The Committee observed that Funds have been allocated to fourteen (14) Metropolitan and Municipal Assemblies for their Sanitation Programmes. Some Members however, expressed concern about the need for District Assemblies to also be considered for such assistance in future.

Sources of Data for Sharing

Some Members expressed concern about the authenticity of the sources of

some basic data used in arriving at the Proposed Formula for sharing of the Common Fund. They then suggested that the Office of the Administrator should endeavour to also visit the various Districts to ascertain the validity or otherwise of the data being used.

Over-Reliance on the Common Fund

The Committee was informed that the District Assemblies over-rely on the Common Fund; instead of devising a mechanism to improve the collection of internally Generated Fund. The Sector Ministry and the Ministry of Finance were accordingly urged to assist the various District Assemblies to devise mechanisms to maximize revenue collection to finance most of their activities.

Television Sets for the Districts.

The Committee's attention was drawn to the fact that, the cost of 29” Toshiba Television Sets bought at around six million, eight hundred thousand cedis (6,800,000.00) for the various Assemblies were too high. The Administrator informed the Committee of the fact that the amount/ cost of purchase was the competitive price on the market.

Recommendations

The Committee makes the following recommendations:

i. That the proper procedure be adopted to increase the Common Fund from 5 per cent o 71/2 per cent.

ii. That the Poverty Alleviation Fund be increased from the existing 15 per cent to 20 per cent of which three-quarters (3/4) of the said Fund shall allocated for Community Policing and Protection.

1219 Formula for Sharing DACF 2 March , 2006
Mr. Speaker 10:50 a.m.
Any seconder to the motion?
Mr. Abraham Osei 10:50 a.m.
Mr. Speaker, I would like to second the motion.
Question proposed.
Mr. Abuga Pele (NDC - Chiana/ Paga) 10:50 a.m.
Mr. Speaker, it is very interesting to read the Report and it is with a lot of - One can clearly find in the Report the sentiments of the House in the Formula for the distribution of the Common Fund the view that the percentage be increased from 5 per cent to 7 per cent and it is gratifying that the Committee recommended that the amount be increased but due process be followed through to allow the percentage to be raised from 5 per cent to 7 per cent.
Mr. Speaker, the interesting thing about the Report is the observation by the Committee, on page 6, where a percentage for ‘community policing and
protection' has been provided for in the report. Mr. Speaker, we all know that the duty of policing communities is of a voluntary nature and we know that the various communities have the discretion to set out the guidelines and to determine in what manner their communities should be policed.
Mr. Pele 10:50 a.m.
Who is going to determine how the community should be policed? And in what manner is the amount going to be extended to the various districts?
Mr. Speaker, we know that in the past, apart from the police and other voluntary organizations and individuals who had undertaken to police the various communities -- to set a whole colossal figure in the Common Fund for community policing, for me, is very, very interesting and I find it very odd. Mr. Speaker, if much light can be thrown on this idea of community policing, I think it will do us a lot of good.
Mr. Lee Ocran (NDC - Jomoro) 11 a.m.
Mr.
Speaker, I rise to share the sentiments of the last hon. Member who spoke. What is community policing? So far, there is no policy on community policing. I thought that if there should be any amount totalling three-quarters of the Poverty Alleviation to be set aside for policing, that money should go into improving the conditions of police the barracks and police offices in the Districts and not to some nebulous
organization called community policing. Mr. Speaker, I am totally against this idea of community policing and I will vote against it, not until who ever proposed it, explains it totally to us and we come to a proper understanding of the issue.
Mr. J. Y. Chireh (NDC - Wa West) 11 a.m.
Mr. Speaker, apart from the earlier points raised by my hon. Colleagues, I also find that they are saying that the percentage of Poverty Alleviation Fund should be increased from fifteen to twenty per cent. I do not know whether that deals with this formula.
Indeed I know that guidelines are issued to the District Assemblies for the utilization of the Common Fund and if this recommendation is to the Minister now to include it in the guidelines, that can be another matter. But if there is in this formula that has been presented to this House, a portion for Poverty Alleviation that is being increased to twenty per cent, that is another issue.
Of course, I also share the view that we should desist from voting money for organizations that do not exist and institutions that have no clear definite position as far as the law is concerned, because until we get something definite on the ground, we cannot just vote money for it. I believe that this must be taken note of otherwise you do not know what is going to be treated as policing is it militia; is it CDO, or what? We need to be very clear in our minds what organization it is.
Again, if you look at the Report there is the pressure factor that is given to those districts where a lot of people migrate to and then put pressure on the utilities and facilities there. Therefore, they are given more and as a result neglecting the same rural areas. If you give more to these people, then you are encouraging the rural
1225 Formula for Sharing DACF 2 March , 2006
Mr. Ocran 11 a.m.
Mr. Speaker, I take strong
objection to some of the sentiments expressed by the hon. Member who just spoke. In the first place, I have not told him I am going to my community and that I need protection. I will always go straight to my constituency and come back safely. I do not need protection. Meanwhile, I raised the issue that I do not see how community policing should alleviate poverty to the extent that 75 per cent of the
Poverty Alleviation Fund should be given for community protection. That is the issue I raised and I want him to answer that.
Mr. Haruna Iddrisu (NDC - Tamale
South): Mr. Speaker, thank you for your indulgence and for the opportunity to make a comment referring to paragraph 6 of the Committee of the Whole's Report and in particular on the same item 2, ‘Percentage for Community Policing and Protection'. Mr. Speaker, under the Constitution of our Republic, we do have the Police Service established as an institution of State and it operates under the Ministry of the Interior. Therefore, the responsibility for policing is carefully defined under the laws of Ghana. Mr. Speaker, permit me to quote paragraph 2 of page 6. It states:
“It was also observed that the Minis t ry of Manpower and Employment in collaboration with the Ministry of Local Government and Rural Development are working out the details for immediate implementa t ion of the sa id Programme”

Deputy Minister for Manpower,

Youth and Employment (Mrs. Frema Osei-Opare): On a point of order. Mr. Speaker, I do have some clarification to make. Mr. Speaker, the Ministry of Manpower, Youth and Employment has a module for youth employment called Community Protection Unit. Therefore,

it is not a police service.
Mr. Iddrisu 11:10 a.m.
Mr. Speaker, I hope hon. Members read the small title there. It says “percentage for community policing and protection.” If their intention was about - [Interruptions]
Mr. S. K. B. Manu 11:10 a.m.
Mr. Speaker, the
hon. Member is misleading this House. The word there is ‘policing.' That is a verb; present continuous form of the verb and not ‘police' as a noun. [Hear! Hear!] That is what he has to note. He has ‘policing' as a verb and not ‘police' as a noun. [Hear! Hear!] That is what he has to know.
Mr. Speaker 11:10 a.m.
Hon. Member for
Tamale South, do you with to -
Mr. Iddrisu 11:10 a.m.
Mr. Speaker, I am not
here to learn the nuances of grammar. If he wants, he should go further and read the last sentence in the last paragraph. If he does not appreciate why words are used the way they do, let me read it for him. Mr. Speaker, it says and with your permission, I quote:
“As in the Committee's view it would generate employment and help bring about peace and order.”
Mr. Speaker 11:10 a.m.
Order! Order! Hon.
Member, please go ahead.
Mr. Iddrisu 11:10 a.m.
Mr. Speaker, the only
institution in this country that is clothed with jurisdiction to ensure peace and order is the Ghana Police Service, established
under article 200 of the Constitution, and not the wish of any individual Member of Parliament to go and create some security force for the protection of communities. Mr. Speaker, we are saying that this is a very dangerous move that our Common Fund --
Mr. Iddrisu 11:10 a.m.
Mr. Speaker, I am saying
so at a time that our Ghana Police Service -- even today, if you read the newspapers they are citing resource constraints. If you have any money, channel it to the Ghana Police Service and task them to ensure peace and order, instead of creating any questionable unit and allocations Common Fund for that purpose.
Mr. Speaker, it is worrying that that Common Fund allocation is being sent to Manpower. I did not know that Manpower now has a responsibility - their policy directive does not include ensuring peace and order. They do not have the mandate. Whether Ministry of Manpower and Employment or Ministry of Local Government and Rural Development it is not part of their mandate. Every Ministry in this country has a specific mandate and the issue of ensuring peace and order must come under the onus of the Ministry of the Interior, or better still the Ministry for Defence; that has also not been mentioned.
1227 Formula for Sharing DACF 2 March , 2006
Mr. Owusu-Adjapong 11:10 a.m.
Mr. Speaker,
I believe that the Minister of Local Government and Rural Development perhaps the Minister for Manpower and Employment may be given the opportunity to do some winding up so that they can explain. It is unfortunate my hon. Colleague was not here, but as the person who brought the document to this floor I thought I should clarify a few things.
First, the original document that came did not include this one and therefore it means that at times we in Parliament should also take credit for some of the things we do. At the Committee stage, it was realised that the Government had adequately made provisions in the proposals for sanitation. But the House, sitting as a Committee of the Whole, realised that apart from sanitation, there is also community protection problems that we have. Fortunately for us the Minister for the Interior was with us, and I want to assure my Colleague that there would be no infringement either in the Constitution or any law of the land in the implementation of this policy -- [Hear! Hear!] -- and that Parliament should be given credit for bringing new ideas to help the Government and with this I think the Minister should be allowed to wind up.
Mr. Speaker 11:10 a.m.
Let us listen to the
Deputy Minority Leader.
Mr. E. K. D. Adjaho (NDC - Avenor/
Ave): Mr. Speaker, I think the point
being made with regard to community policing is a very genuine one. If you look at the Committee's own Report -- and that is where my worry is coming from -- Mr. Speaker, this House should be in a position to allocate resources when we know the details of the programme. The Committee's Report itself states clearly that the two Ministries Ministry of Local Government and Rural Development and the Ministry of Manpower, Youth and Employment, are now going to work out the details. So we do not even know the details as a House yet they are allocating the money to them. It is a mockery of excuse me, Parliament's oversight responsibility over the purse.
So Mr. Speaker, I think that what should be done in these circumstances, quite apart from the fact that some of us will feel very comfortable if these resources can go to the Ministry of the Interior so that they can be worked out in a certain way -- We know there are certain communities that do not even have police stations, and there are others where the police do not have certain facilities. So if these resources are being allocated, so that together with the District Assemblies they sit down and work it out, to maintain law and order, I would not have any problem with it.
Number two, Mr. Speaker, which is the most important one from my point of view is the fact that the details of the programme have not been worked out yet.
Mr. Speaker, with your permission I quote 11:10 a.m.
“It was also observed that the Ministry of Manpower, Youth and Employment in collaboration with the Ministry of Local Government and Rural Development are working out the details for immediate implementa t ion of the sa id programme.”
The details of the programme have not
been worked out. So I would seriously suggest that -
rose
Mr. Speaker 11:10 a.m.
Hon. Member for
Effia-Kwesimintsim, do you have any point of order?
Mr. Baidoe-Ansah 11:10 a.m.
Mr. Speaker, the
point of order is that the hon. Member is making a statement that is factually incorrect. What is going on here reflects what happens when Members of Parliament refuse to attend parliamentary sittings [Hear! Hear!] Mr. Speaker, the problem is that because they were not here, they do not even understand what was discussed at the parliamentary sittings. The issue that was discussed is an issue that goes nowhere close to what they are discussing.
Mr. Adjaho 11:10 a.m.
Mr. Speaker, he
who claims that he was present at the Committee, I thought would educate this House as to exactly the details but -- [Interruptions] he ended up confusing himself. Mr. Speaker, I am only quoting the Committee's own Report. It should be possible for anybody, any citizen of Ghana to look at the Committee's Report and know that this is what we want to implement. No citizen of this country,
quoting this Report would say that there are attempts to establish city guards or whatever he calls it; nobody, no citizen of Ghana looking at this Report would say that the kind of thing the hon. Member is talking about is what they want to implement here.
11. 20 a.m.
Mr. Speaker, unless he wants to abdicate
- [Interruption.] -- unless he wants to abdicate our sole responsibility of being people responsible [Interruption.] - let us try and do it, but I am not comfortable at all. I think as a policy framework, it should be better - the policy framework should be better defined. Let us know exactly what we are doing but Mr. Speaker, the way in which this Report has been couched and the way it has been framed, I want to tell you that any citizen of Ghana who looks at this Report would not support this kind of Report.
Mr. Speaker 11:10 a.m.
Hon. Minister may you
wind up, please.
Minister for Local Government

Mr. Speaker, I also want to say that

this is not the first time this programme is being introduced in this country. In the PNDC era, it was introduced as community watchdogs and it failed. It was re-introduced during the NDC era as community watchdogs and it still failed. We realized that the people were not motivated and that was why the

1231 Formula for Sharing DACF 2 March , 2006
Mr. Mahama Ayariga 11:10 a.m.
Mr. Speaker,
Mr. Speaker 11:10 a.m.
Order! Order!
rose
Mr. Speaker 11:10 a.m.
Hon. Minister, you
would have to resume your seat, this is a point of order he is raising.
Mr. Ayariga 11:10 a.m.
Mr. Speaker, he is
misleading this House because under the NDC, the community watchdog was under the Ministry of the Interior, the police. So it is consistent with the position that we have taken - [Interruption.] - So Mr. Speaker, the hon. Minister is misleading this House by creating the impression that the ‘community watchdogs' was a concept under the Ministry of Local Government and Rural Development.
Mr. Speaker 11:10 a.m.
Hon. Minister, please
continue.
Mr. Bintin 11:10 a.m.
Mr. Speaker, I did not say
the community watchdogs were under the Ministry of Local Government and Rural Development. I only said that it was introduced and it failed and we are re- introducing it, and we think that the people must be motivated to work and to succeed.
Mr. Speaker, looking at the crime wave in the country today, we certainly need some group of people who would help the police, the military to keep our
1235 Formula for Sharing DACF 2 March , 2006
Mr. Kwadwo Agyei-Addo 11:10 a.m.
Mr. Speaker, I rise to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Report of the Joint Committee on Finance and Roads And Transport
Mr. Obodai 11:10 a.m.
Mr. Speaker, I beg to
move, that this honourable House adopts the Report of the Joint Committee on Finance and Roads and Transport on the following:
(1) Sale and Purchase Agreement between the Government of Ghana and VDL Bus International B. V. of the Netherlands for an amount of twenty-three million, one hundred and fifty thousand euros (Î23,150,000.00) for the supply of one hundred and fifty (150) Inter-City/City Commuter buses for the Metro Mass Transit Limited
(MMT);
(2) ORET Grant of nine million and eighty-six thousand, eight hundred and fifty euros (Î9,086,850.00) to finance 39.25 per cent of the cost of the purchase of the 150 buses from VDL Bus International B. V. of the Netherlands and the
(3) Loan Agreement between the Government of Ghana and ING Bank N. V. of the Netherlands for an Export Credit Facility of fourteen million and sixty-three thousand, one hundred and fifty euros (Î14,063,150.00) to finance 60.75 per cent of the cost of the purchase of 150 buses from the VDL Bus International B.V. of the Netherlands.
Mr. Speaker, I also beg to present the Report of the Committee.
1.0 Introduction
Mr. Speaker, the above Sale and Purchase Agreement, ORET Grant, and Export Credit Facility were laid in the House on Thursday, 23rd February 2006 and referred to the Joint Committee on Finance and Road Transport for consideration and report in accordance with article 181 of the Constitution and the Standing Orders of the House.
To discuss these documents the Joint Committee met with the Deputy Minister for Finance and Economic Planning, Dr. A. Akoto Osei and officials from the Ministries of Finance and Economic Planning and Road Transport and reports as follows:
2.0 Background
Hon. Members would recall that the House approved a similar Dutch Government Concessionary Financing for Inter-City passenger services in 2001 and 2003. In 2001, the House approved an agreement for the supply of 100 buses. The buses were completed and delivered to the Ministry of Roads and Transport in 2002. Due to its successful implementation, and in order to achieve the desired impact on the operation of
1237 Formula for Sharing DACF 2 March , 2006
  • [MR. OBODAI 1241 Report of Joint Committee 2 March , 2006 on Finance Roads &
  • [MR. OBODAI the total number of private vehicles in the streets thereby improving the traffic situation in the cities. 8. The Committee further observed that VDL Bus International will give support to the repair and maintenance of the buses through the provision of technical assistance for a period of 3 years. 5.0 Conclusion Arising from the anticipated gains to be derived from the Metro Mass Transportation as a result of the supply of the buses, the Committee respectfully invites the House to approve by resolution the concessionary Sale and Purchase Agreement between the Government of Ghana and VDL Bus International B.V. of the Netherlands for an amount of twenty-three million, one hundred and fifty thousand euros (€23,150,000.00) for the supply of one hundred and fifty (150) inter-city/city commuter buses for the Metro Mass Transit Limited (MMT) in accordance with article 181 of the Constitution and Section 7 of the Loans Act 1970, Act 335. The Committee also invites the House to approve the Loan Agreement between the Government of Ghana and ING Bank N.V. of the Netherlands for an Export Credit Facility of fourteen million and sixty-three thousand, one hundred and fifty euros (€14,063,150.00) to finance 60.75 per cent of the cost of the purchase of 150 buses from the VDL Bus International B.V. of the Netherlands in accordance with Article 181 of the Constitution and Section 7 of the Loans Act 1970, Act 335. Respectfully submitted.
    • Mr. Agyei-Addo 11:10 a.m.
    Mr. Speaker, I beg to second the motion.
    Question proposed.
    Mr. S. K. B. Manu (NPP - Ahafo Ano South) 11:10 a.m.
    Mr. Speaker, I rise to contribute to the motion on floor and in doing so, I want to underscore the importance of this loan.
    Mr. Speaker, there is no doubt that
    the development of every nation can be achieved if communication, particularly transportation, is made easier. In that way, people can commute from rural areas to the urban centres and vice versa. Mr. Speaker, as an agricultural country, the rural areas produce a lot of foodstuffs but sometimes these foodstuffs get rotten at the farmgates and are not able to get to the market centres.
    Mr. Speaker, as these buses are being
    bought - [Interruption.] -- I hear people say that they are not to convey food -- If passengers shift to using these new buses, the trucks that had been used to convey passengers, which sometimes killed them, would now be converted to carry and haul foodstuffs from the rural areas to the marketing centres.
    Mr. Yieleh Chireh 11:30 a.m.
    On a point of order. Mr. Speaker, the hon. Member is misleading all of us. This is about buses and I do not see the connection between the buses and food that is produced elsewhere. He is trying to convert - [Interruption] - unless the decision is to import the metro Mass Buses and then convert them into cargo-handling buses. I think that he should not continue to mislead; he should direct his comments correctly.
    Mr. Speaker 11:30 a.m.
    Hon. Member for
    Ahafo Ano South, please continue.
    Mr. Manu 11:30 a.m.
    Mr. Speaker, when people
    take illegal holidays and they come back,
    sometimes they get confused - [Uproar] Because my argument was that when these buses are bought, people who have been using the 207s and others as passenger buses will now shift to the new buses and these 207 buses which are even very dangerous and kill a lot of passengers when they get involved in accidents, will now be converted into cargo cars; and they will be hauling food from the rural areas to the urban centres. This is the argument and I think he now sees the connection. He is however welcomed back and I know he will now follow proceedings.
    Mr. Speaker, as I was saying when the prodigal son came back from wherever he went, he found things back at home very new. So I am not surprised he is not following proceedings in the House.
    Dr. Kwame Ampofo 11:30 a.m.
    -- rose --
    Mr. Speaker 11:30 a.m.
    Hon. Member for
    South Dayi do you have a point of order to raise?
    Dr. Ampofo 11:30 a.m.
    Yes, Mr. Speaker. Mr.
    Speaker, even though the hon. Member did not take what he calls “illegal holiday”, his presence in the House appears to have confused him the more. Because, the statement he is making is totally unscientific. And it is unscientific because he claimed that these buses would lead to people shifting from other means of transport to the new buses. There is no proof of that. He goes on also to say that the other buses do have accidents so when people transfer on to these buses they will be safer. But buses also do have accidents and therefore what he is saying is totally unscientific and he is misleading the House.
    Mr. Speaker 11:30 a.m.
    Hon. Member, please continue.
    1243 Report of Joint Committee 2 March , 2006 on Finance Roads &
  • [MR. OBODAI 1245 Report of Joint Committee 2 March , 2006 on Finance Roads & Tran
  • [MR. OBODAI Mr. Manu: Mr. Speaker, I do not know how two weeks or three weeks can turn somebody into a scientist of the highest quality. So I ignore that so called scientific argument. Mr. Speaker, what I want to say is that I am also gratified that these buses that are to be bought are specifically meant for the three northern regions. Mr. Speaker, all along these buses that have been bought so far have been used down south and now that they are going to be extended to the three northern regions where there are Ghanaians who also have to benefit from the gains of this nation, I think it is a good idea and I believe that they would also welcome the buses when they get there, as was done when they got to Ho. With these few words, I would want to thank the Ministry of Road Transport for having this vision to take these loans to buy these buses for Ghanaians to use, so that they will comfortably travel in and out. I am saying the 207s cause fatal accidents because empirically and practically the buses, the STC buses and the other buses, have safety records that nobody can dispute, if one knows the accident rate in this country. So the scientists will have to go back to their test tubes and come out with more findings. Mr. Haruna Iddrisu (NDC -- Tamale South): Mr. Speaker, thank you very much for the opportunity to associate myself with the Report and in particular to recognize that Government may as well have very good and well meaning intentions to support the public transport system in order to facilitate the free movement of goods and services. But Mr. Speaker, in doing so, I would like to raise some issues even though the hon. Balado Manu attests to a fact, which is not captured; that all the buses are meant for the three northern regions. I have not seen that captured in any portion of the Report and I am wondering whether all the buses could be meant for only the three northern regions of Ghana. Mr. Speaker, what I do know is that there have been gross iniquities in the distribution of the Metro Mass transport as far as the Upper East, the Upper West and the Northern Regions are concerned. And Mr. Speaker, even as I speak, not a single bus has been sent to the Upper East or Upper West Region. It is only recently that the Volta Region got covered under the facility. Mr. Speaker, the Government, under the Directive Principles of State Policy owes an obligation to every Ghanaian, irrespective of the geographical location of the person -- Deputy Minister for Finance and Economic Planning(Dr. Anthony Osei): -- rose --
    • Mr. Speaker 11:30 a.m.
    Deputy Minister for
    Finance and Economic Planning, do you have a point of order to raise?
    Dr. Osei 11:30 a.m.
    Mr. Speaker, the hon.

    Mr. Speaker, the memorandum that

    was brought to the Committee specifically did that, but because he was not here he is unable to understand what has transpired in this House.

    Mr. Speaker, I think he is misleading this House and he should withdraw.
    Mr. Speaker 11:30 a.m.
    Let him continue.
    1247 Report of Joint Committee 2 March , 2006 on Finance Roads & Tran
    Mr. Iddrisu 11:30 a.m.
    Mr. Speaker, this
    House is debating a Report and not a purported memorandum that is said to have accompanied any letter from anywhere. I am talking according to the content of the Committee's Report and Mr. Speaker, there is a more fundamental issue.
    Mr. Speaker, this House wants to know
    this animal called Metro Mass transport, we need to know what that animal is.
    Mr. Speaker, I am saying so in
    consonance with corporate principles and I know for sure -- and the hon. Minister for Road Transport is here; he may challenge me -- that the Government of Ghana is not a majority shareholder of that entity. Therefore, why should the Government of Ghana be facilitating huge loan guarantees for what must in true corporate principles be a private entity. It is worrying. Mr. Speaker, the Government is not a majority shareholder of Metro Mass transport. We need to know and they must give us the statistics - [Interruption] -- whether I am there or I am not there, Metro Mass transport -- [Interruption.]
    Mr. Speaker 11:30 a.m.
    Hon. Member, there is
    a point of order.
    Mr. Osei Kyei-Mensah-Bonsu 11:30 a.m.
    On
    a point of order. Mr. Speaker, I believe my Colleague is finding himself in the wilderness. Because Mr. Speaker, what we are doing today, Government indeed need not be a shareholder before even guaranteeing a loan. He was not here.
    Mr. Speaker, this House has guaranteed
    loans for the GPRTU in which the Government had no interest.
    Mr. Speaker, I believe he was then in
    school. This House has guaranteed loans for GPRTU and so for him to say that Government is a minority shareholder,
    and so on and so forth, Mr. Speaker, the argument is neither here nor there. So he should address his mind to the issue before the House.
    Mr. Lee Ocran 11:30 a.m.
    -- rose --
    Mr. Speaker 11:30 a.m.
    Hon. Member, are you
    yielding to him?
    Mr. Iddrisu 11:30 a.m.
    Mr. Speaker, for a minute, I yield to the hon. Member for Jomoro.
    Mr. Speaker 11:30 a.m.
    Only one person at
    Mr. Ocran 11:30 a.m.
    Mr. Speaker, I will let
    Mr. Haruna Iddrisu 11:40 a.m.
    Mr. Speaker, the argument I was making was that the Metro Mass Transit, if they acknowledge that indeed it is a private entity, is not the only private transport system that the Government of Ghana must focus on. One would want to see the Government do same to support the Ghana Private Road Transport Union (GPRTU) so that they also can acquire buses to facilitate it. But all along, theirs interest has been in Metro Mass Transit when they know that it is not wholly public owned. That is the legitimate question I was raising, Mr. Speaker. And Mr. Speaker, the useful thing about this facility - [Interruption.]
    Dr. Anthony Akoto Osei 11:40 a.m.
    Mr. Speaker,
    the hon. Member on the other side is making very serious false allegations in this House. If he does not know the facts, the proper thing to do is to check the facts. Mr. Speaker, the Government of Ghana is the majority shareholder - forty-five per cent. That is a fact. And he knows that if he goes to the Registrar-General's
    1247 Report of Joint Committee 2 March , 2006 on Finance Roads & Tran
    Mr. Speaker 11:40 a.m.
    Let him continue. Hon.
    Member, please continue, except you have finished.
    Mr. Iddrisu 11:40 a.m.
    Mr. Speaker, I am
    winding up.
    Mr. Speaker 11:40 a.m.
    Alright, wind up.
    Mr. Iddrisu 11:40 a.m.
    Mr. Speaker, finally,
    the hon.Kyei-Mensah-Bonsu--[Inter- ruptions.] - I will respond to it, trust that I will do. He raised a very - [Inter-ruption.]
    Mr. Speaker 11:40 a.m.
    Hon. Member for
    Tamale South, do not address him -
    Mr. Iddrisu 11:40 a.m.
    Oh! Hon. Kyei-Mensah-
    Bonsu made a point -
    Mr. Speaker 11:40 a.m.
    Do not be distracted -
    Mr. Iddrisu 11:40 a.m.
    Mr. Speaker, it is
    Mr. Speaker 11:40 a.m.
    Hon. Member, are you
    winding up or not?
    Mr. Iddrisu 11:40 a.m.
    I am winding up, Mr.
    Speaker.
    Mr. Speaker 11:40 a.m.
    Please, wind up.
    Mr. Iddrisu 11:40 a.m.
    When the Government
    guaranteed the loan for GPRTU, Parliament was presented with an on-
    lending agreement from the GPRTU.

    Mr. Speaker, I was saying that the
    Mr. Kyei-Mensah-Bonsu 11:40 a.m.
    Please,
    I have the floor; would you yield? Mr. Speaker, my hon. Colleague has made a categorical statement and I believe my hon. Colleague on the other side, hon. Abuga Pele, who was on the Finance Committee, will teach him that the statement that he has just made is incorrect. But Mr. Speaker, he talks about the importation of right-hand drive buses, and so on.
    Again, the argument was made in this House. He was not even here at that time; he was in school. So he did not follow the argument then.
    Mr. Speaker, we debated this issue about the importation of right hand drive buses. Before then, they had been in the system; they had
    been in the construction of the Keta Sea Defence wall. - [Interruptions.] -- Do not shake your head; you were not here and you know - [Interruption.]
    Mr. Speaker 11:40 a.m.
    Hon. Majority Chief
    Whip, are you raising a point or order.
    1249 Report of Joint Committee 2 March , 2006 on Finance Roads & Tran
    Mr. Speaker 11:40 a.m.
    But there is nobody on
    his feet.
    Mr. Kyei-Mensah-Bonsu 11:40 a.m.
    Mr.
    Mr. Speaker 11:40 a.m.
    Hon. Majority Chief
    Whip, you may resume your seat.
    Mr. Kyei-Mensah-Bonsu 11:40 a.m.
    Thank you.
    Mr. Joe Ghartey (NPP - Essikado/
    Ketan): Thank you, Mr. Speaker, for the opportunity to speak in support of this motion.
    rose
    Mr. Speaker 11:40 a.m.
    You may resume your
    seat. I am not calling you. I will call you later to contribute, but let him continue.
    Mr. Ghartey 11:40 a.m.
    Mr. Speaker, first of all, as has been said, the Government of Ghana is the largest majority shareholder with forty-five per cent shares. Apart from the Government of Ghana, the other shareholders are Social Security and National Investment Trust (SSNIT), which, as we all know, belongs to Government of Ghana; State Insurance Company (SIC), which belongs to the Government of Ghana, Agricultural Development Bank (ADB) in which the Government of Ghana is the majority shareholder and National Investment Bank (NIB) in which the Government of Ghana is the majority shareholder.
    So when you take the totality of the entire share structure of what he called “an animal”, you will see that the Government of Ghana is by far the majority shareholder.
    But Mr. Speaker, that being the case, it cannot be denied that the metro mass transit has transformed the transportation system in Ghana. Indeed, there were some school children who just left the public gallery and I am sure that as they leave the public gallery, they are going to line up to join the Metro Mass Transit buses free of charge - [Hear! Hear!] - Indeed, as we approve this loan, I am sure my hon. Colleague will come back to report to us that school children in his constituency are now lining up, to go to school for free. [Hear! Hear!]
    Mr. Speaker, I do not remember that in the history of this country a system has ever existed where school children are given free transportation - [Hear! Hear!] - I do not remember.
    rose
    Mr. Speaker 11:40 a.m.
    Hon. Member for Wa West, do not complain; you would be called when the time comes.
    Mr. Chireh 11:40 a.m.
    Mr. Speaker, I have been standing for a long time because I wanted to raise a point of order. But it appears to me that when somebody on the other side is making a statement and we rise to raise a point of order, we are not recognized -- [Uproar.] I want to say that the hon. Member for Tamale South has consistently, raised that issue in this House -
    Mr. Speaker 11:40 a.m.
    Hon. Member for Wa West, would you please repeat what you said; I did not hear it.
    1251 Report of Joint Committee 2 March , 2006 on Finance Roads & Tran
    Mr. Speaker 11:40 a.m.
    Hon. Member for Wa West, how many times have I called you this morning?
    Mr. Chireh 11:40 a.m.
    Mr. Speaker, I am not talking about being recognized to make a contribution. But when there is a point of order to be - [Interruption.]
    Mr. Speaker 11:40 a.m.
    Are you answering my question? How many times have I called you this morning?
    Mr. Chireh 11:40 a.m.
    It is not about what I have - [Interruptions.]
    rose
    Mr. Speaker 11:40 a.m.
    Hon. Member for Jomoro?
    Mr. Lee Ocran 11:40 a.m.
    Thank you, Mr. Speaker. Mr. Speaker, it is very unfortunate when certain high-falluting statement are made on the floor like the one made by the hon. Deputy Attorney-General that never in the history of this country - [Interruptions.] - He said it - [Inter- ruptions.]
    Mr. Speaker 11:40 a.m.
    Order!
    Mr. Ocran 11:40 a.m.
    This young man is too young to understand what happened. In Sekondi-Takoradi school children were given free ride on buses; in Tarkwa, Accra, they were riding -- If he was too young - [Interruption.]
    rose
    Mr. Ocran 11:40 a.m.
    They are both of the same age, Mr. Speaker. I was there when it was happening; they were not there. In the
    fifties, how old were they? - [Laughter.] They do not know and they will not allow us to tell them, Mr. Speaker.
    Mr. Speaker 11:40 a.m.
    Hon. Minister for the Interior, are you on your feet?
    Papa Owusu-Ankomah 11:40 a.m.
    Mr. Speaker, the hon. Member - [Interruption.]
    Mr. Ghartey 11:40 a.m.
    Mr. Speaker, I am on my feet.
    Mr. Speaker 11:40 a.m.
    Sorry, go ahead.
    Mr. Ghartey 11:40 a.m.
    Mr. Speaker, the problem that sometimes we have is that when we are speaking of Ghana, other people are speaking of Gold Coast - [Laughter.] - The fifties was the Gold Coast. I am an hon. Member of the Parliament of the Republic of Ghana; I have never been a Member of the Parliament of the Republic of the Gold Coast. So I am speaking of Ghana, not Gold Coast. Mr. Speaker, as I was saying, the Metro Mass Transit system, indeed - [Interruption.]
    rose
    Mr. Speaker 11:40 a.m.
    Hon. Minority Leader?
    Mr. Bagbin 11:50 a.m.
    Mr. Speaker, it is factually incorrect that the 1950s was the Gold Coast. So he is misleading the House -- [Interruptions] Yes, we became Ghana in the 1950s so the 1950s was not the Gold Coast; part of the 1950s was Gold Coast and part was Ghana. But he is a Ghana boy. So we will understand that.
    Mr. Ghartey 11:50 a.m.
    But Mr. Speaker, as
    I was saying, indeed, this Metro Mass Transit has transformed the transportation
    1253 Report of Joint Committee 2 March , 2006 on Finance Roads & Tran
    Mr. E. T. Mensah 11:50 a.m.
    Mr. Speaker, I think
    the issue about this being a gift should be explained. These were scraps, vehicles which were over twenty years old and it is on record that in our time they tried to give us those buses - They were right-hand drive and we did not want them. So it is nothing to write home about.
    Mr. Ghartey 11:50 a.m.
    Mr. Speaker, what he
    said, I am informed, is false. But Mr. Speaker, in winding up I will just say that we shall continue this policy of mass transport. This policy does not threaten any private sector enterprise like the GPRTU; it is a good policy and I hope and pray that all hon. Members will support this policy whenever it comes to the floor of Parliament, in the way of loans or otherwise.
    With these few words I support the motion.
    Minister for Road Transport (Dr. Richard Anane) 11:50 a.m.
    Mr. Speaker, first, I would want to acknowledge the encouragement to Government by the excitement generated by this motion on the floor this morning. Mr. speaker, the excitement is an indication of the support and the impact of the mass transport sector in the economy. But Mr. Speaker, I would just want to enlighten a few of our hon.
    Colleagues in the House and assure them of what the Metro Mass Transit is about and what this loan is also about.
    Mr. Speaker, the loan is to support mass transportation in the country. Mr. Speaker, in one of the memoranda submitted for the purchase of these buses - We have two memoranda before this House. And Mr. Speaker, in one of the memoranda from us we are saying that these buses would be dedicated to the northern half of the country.
    Mr. Speaker, we are so saying because we believe that it is also part of this country and citizens of the north must also benefit from whatever is going on in this country. But Mr. Speaker, there is some disquiet about the fact that the Metro Mass Transit has not spread countrywide. Mr. Speaker, this was started initially as a pilot programme and then continued coverage in the Accra -Tema Metropolitan area, and spread to the bigger metropolitan areas in Kumasi, Sekondi-Takoradi, Tamale before we decided to go to the other municipalities. Mr. speaker, that is how come some areas are now going to be served and that is how come just a few days ago the Ho Municipality got the services of the Metro Mass Transit system.
    Mr. Speaker, the Regional coverage, as I said, has this spread and when these buses do arrive they are going to serve - The first 150 buses to be assembled in Kumasi will serve the entire country. But the second already assembled 63 buses will be sent to the northern part of the country to serve Tamale,
    Bolga, Bawku and then Wa and its environs. Mr. Speaker, it is to ensure that they also benefit.
    Mr. Speaker, it has already been explained that the Government of Ghana is the majority shareholder. So what was
    1255 Report of Joint Committee 2 March , 2006 on Finance Roads & Tran
    Minister for Road Transport (Dr. Richard Anane) 11:50 a.m.


    Question put and motion agreed to.

    Majority Leader (Mr. Owusu-

    Adjapong): Mr. Speaker, I want to crave your indulgence to allow the Deputy Minister for Finance and Economic Planning to move the Resolution on behalf of the Minister.
    Mr. Speaker 11:50 a.m.
    Granted.
    Mr. Agyei-Addo 11:50 a.m.
    Mr. Speaker, I rise
    to second the motion.
    Question put and motion agreed to.
    Resolved accordingly.
    Loan Agreement between the Government of Ghana and ING Bank
    N.V. of The Netherlands
    Dr. Akoto Osei 11:50 a.m.
    Mr. Speaker, I beg to move,
    WHEREAS by the provisions of article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335), the terms and conditions of any loan raised by the Government of Ghana on behalf of itself or any public institution or authority shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parliament by a Resolution supported by the votes of a majority of all Members of Parliament;
    PURSUANT to the provisions of the said article 181 of the Constitution and section 7 of the Loans Act, (Act 335) at the request of the Government of Ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of the Loan Agreement between the Government of Ghana and ING Bank N. V. of the Netherlands for an Export Credit Facility of fourteen million and sixty-three thousand, one hundred and fifty euros Î14,063,150.00) to finance
    60.75 per cent of the cost of the purchase of 150 buses from the VDL Bus International B. V. of the Netherlands.
    Mr. Agyei-Addo 11:50 a.m.
    Mr. Speaker, I beg to second the motion.
    Question put and motion agreed to.
    Resolved accordingly.
    SUSPENSION OF STANDING 11:50 a.m.
    Chairman of the Committee (Mr. Agyei-Addo) 11:50 a.m.
    Mr. Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80 (1) which require that no motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the motion is given and the date on which the motion is moved, the motion for the adoption of the Report of the Joint Committee on Finance and Roads Transport on the following may be moved today.
    1. Commercial Contract Agreement
    1259 Sale and Purchase Agreement 2 March , 2006 Between GOG/VDL Bus
    Mr. Agyei-Addo noon
    Mr. Speaker, I beg to second the motion.
    Question put and motion agreed to.
    Resolved accordingly.

    Report of Committee on Finance and Roads and Transport on Loan

    Agreement
    Chairman of the Committee (Mr. S. K. Obodai) noon
    Mr. Speaker, I beg to move, That this honourable House adopts the Report of the Joint Committee on Finance and Roads and Transport on the following:
    (1) Commercial Contract Agreement between the Government of Ghana
    and the VDL Jonckheere Bus and Coach N.V. of Belgium for the supply of sixty-three (63) Commuter buses and spare parts at a cost of nine million, nine hundred and sixty-five thousand euros (E9,965,000..00) to be imported for the Metro Mass Transit Limited (MMT) and the
    ( 2 ) L o a n a g r e e m e n t b e t w e e n the government of Ghana and Commerzbank AG, Brussels Branch, Belgium, for an Export credit Facility of nine million, nine hundred and sixty-five thousand euros (E9,965,000) to finance the cost of purchase of sixty (63) commuter Buses and spare parts from VDL Jonckheere Bus and Coach N.V. of Belgium for the Metro Mass Transit Limited (MMT)
    Mr. Speaker, in so doing I wish to present the Committee's Report.
    1.0 Introduction
    The above Commercial Contract Agreement between the Government of Ghana and VDL Jonckheere Bus and Coach N.V. of Belgium for the supply of sixty three (63) Commuter Buses and Spare Parts and the Agreement between the Government of Ghana and Commerzbank AG , Brussels Branch, Belgium for an Export Credit Facility for the Metro Mass Transit Limited (MMT) were laid in the House on Thursday, 23rd February 2006 and referred to the Joint Committee on Finance and Roads & Transport for consideration and report in accordance with article 181 of the Constitution and the Standing Orders of the House.
    To discuss this document the Joint Committee met with the Deputy Minister for Finance & Economic Planning, hon. Dr. A. Akoto Osei and officials from
    1263 Sale and Purchase Agreement 2 March , 2006 Between GOG/VDL Bus
    Mr. Agyei-Addo noon
    Mr. Speaker, I beg to second the motion.
    Question put and motion agreed to.
    RESOLUTIONS noon
    Dr. A. A. Osei noon
    Mr. Speaker, I beg to move, that
    WHEREAS By the provisions of article 181 of the Constitution the terms and conditions of any international business or economic transaction to which the Government of Ghana is a party shall not come into operation unless the said terms
    and conditions have been laid before Parliament and approved by Parliament by a Resolution supported by the votes of a majority of all Members of Parliament;
    PURSUANT to the provisions of the said article 181 of the Constitution, and at the request of the Government of Ghana acting through the Minister responsible for Finance and Economic Planning, there has been laid before Parliament the terms and conditions of an international business or economic t ransact ion the Commercial Contract Agreement between the Government of Ghana and the VDL, Jonckheere Bus and Coach N.V. of Belgium for the supply of sixty-three (63) Commuter buses and spare parts at a cost of nine million, nine hundred and sixty-five thousand euros (E9,965,000.00) to be imported for the Metro Mass Transit Limited (MMT) and the
    THIS HONOURLABLE HOUSE noon
    Mr. Agyei-Addo noon
    Mr. Speaker, I beg
    1269 Commercial Contract and 2 March , 2006 Loan Agreements 1270
    Dr. A. A. Osei noon
    Mr. Speaker, I beg to move that
    WHEREAS by the provisions of article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335), the terms and conditions of any loan raised by the Government of Ghana on behalf of itself or any public institution or authority shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parliament by a Resolution supported by the votes of a majority of all Members of Parliament;
    PURSUANT to the provisions of the said article 181 of the Constitution and section 7 of the Loans Act, (Act 335) at the request of the Government of Ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of the Loan agreement between the government of Ghana and Commerzbank AG, Brussels Branch, Belgium, for an Export Credit Facility of nine million, nine hundred and sixty-five thousand euros (E9,965,000.00) to finance the cost of purchase of sixty-three (63) Commuter Buses and spare parts from VDL Jonckheere Bus and Coach N.V. of Belgium for the Metro Mass Transit Limited
    (MMT).
    THIS HONOURABLE HOUSE noon
    HEREBY RESOLVE AS FOLLOWS noon
    Mr. Agyei-Addo noon
    Mr. Speaker, I beg to second the motion.
    Question put and motion agreed to.
    Resolved accordingly.
    Suspension of Standing Order No. 8 0 (1)
    Mr. Agyei-Addo noon
    Mr. Speaker, I beg to move that, That notwithstanding the provisions of Standing Order No.80(1) which require that no motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the motion is given and the date on which the motion is moved, the motion for the adoption of the Report of the Finance Committee on the Loan Agreement between the Republic of Ghana and the African Development Fund for an amount of UA 25,000,000 (US
    1271 Commercial Contract and 2 March , 2006 Loan Agreements 1272
    Dr. A. A. Osei noon
    Mr. Speaker, I beg to second the motion.
    Question put and motion agreed to.
    Resolved accordingly.
    Loan agreement between GOG and African Development Fund
    Mr. Agyei-Addo noon
    Mr. Speaker, I beg to move, That this honourable House adopts the Report of the Finance Committee on the Loan agreement between the Republic of Ghana and the African Development Fund for an amount of UA 25,000,000 (S$ $37.75 million equivalent) for financing the Urban Poverty Reduction Project (Poverty II) and a request for tax and duty exemptions on goods, services and other items to be procured under the project.
    Mr. Speaker, in so doing I would want to present the Committee's Report.
    1.0 Introduction
    The above loan agreement and request for tax and duty exemptions was laid in the House on Thursday, 9th February 2006 and referred to the Finance Committee for consideration and report in accordance with Article 181 of the Constitution and the Standing Orders of the House.
    To consider the document the Committee met with the Deputy Minister for Finance and Economic Planning, Prof. G. Y. Djan-Baffour, officials from Social
    Investment Fund (SIF) and the Ministry of Finance & Economic Planning and reports as follows:
    2.0 Background
    Despite considerable efforts to alleviate poverty in Ghana, insufficient attention has been paid to the urban economy. The drop in rural poverty is slightly higher than that of urban settlements.
    In addition to rural poverty declining more rapidly than its urban counterparts, there are also substantial geographical variations in the patterns of poverty and extreme poverty in urban areas. For example, poverty incidence in coastal, forest and savannah settlements did not decline significantly between 1991-1992 and 1998-99, thus confirming that the achievements in urban poverty reduction during this period were almost entirely based on gains made in Accra, where poverty declined from 23.1 per cent in 1991-1992 to 3.8 per cent in 1999.
    In 1991-92, extreme poverty (estimated from a lower poverty line) was mainly a rural phenomenon, ten years later, it has increased throughout urban zones in areas such as the coast, the savannah and the forest.
    Urban poverty is not different from rural poverty in as much as its major dimensions (health, education, insecurity, consumption) and its cumulative nature operate in much the same way. Urban life offers many opportunities for individuals to better their social, economic and cultural condition as well as that of their family, but the risks associated with the same urban life also significantly increases the vulnerability of urban populations. The insecurity it generates particularly affects those groups whose livelihood strategies primarily depend upon income generation
    1273 Commercial Contract and 2 March , 2006 Loan Agreements 1274
    ECONOMIC noon
    PLANNING, noon
    DIRECTOR ERM-M noon
    URBAN POVERTY REDUCTION noon
    PROJECAT noon
    THE COMMISSIONER noon
    ACCRA noon
    Dr. A. A. Osei noon
    Mr. Speaker, I beg to second the motion.
    Question put and motion agreed to.
    Loan Agreement between GOG and African Development Fund
    1285 Commercial Contract and 2 March , 2006 Loan Agreements 1286
    Dr. A. A. Osei noon
    Mr. Speaker, I beg to move that
    WHEREAS by the provisions of article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335), the terms and conditions of any loan raised by the Government of Ghana on behalf of itself or any public institution or authority shall not come into operation unless the
    1287 Commercial Contract and 2 March , 2006 Loan Agreements 1288
    THIS HOURABLE HOUSE noon
    H E R E B Y R E E S O LV E A S noon
    Mr. Adjei-Addo noon
    Mr. Speaker, I beg to second the motion.
    Question put and motion agreed to.
    Resolved accordingly.
    1289 Commercial Contract and 2 March , 2006 Loan Agreements 1290