Debates of 29 Nov 2006

MR. SECOND DEPUTY SPEAKER
PRAYERS 10:20 a.m.
CORRECTION OF VOTES 10:20 a.m.
AND PROCEEDINGS AND 10:20 a.m.
THE OFFICIAL REPORT 10:20 a.m.
Mr. Second Deputy Speaker 10:20 a.m.
Order! Order! Correction of Votes and Proceedings and the Official Report. Page 1, 2, 3…21. There being no corrections, the Votes and Proceedings are taken as the true record of yesterday's proceedings. Do hon. Members have the Official Report? -- [Pause] -- At the commencement of Public Business.
Mr. F. K. Owusu-Adjapong 10:20 a.m.
Mr.
Speaker, even though we are going to spend the best part of the day to look at the motion numbered item 4, I want to suggest that we take motion number 5. I have discussed this with my hon. Colleague, the Deputy Minority Leader.
Mr. Speaker, you may recall that we had a Committee of the Whole meeting to discuss this matter and as a result of the Committee's effort, we suspended two items of the loan and therefore reduced it from $61 million to $51 million. There was a consensus and I thought it was because of the Accra and Kumasi stadia portion of it which is time-bound -- I hope we can take it this morning so that we can make progress there.
Mr. E. K. D. Adjaho 10:20 a.m.
Mr. Speaker,
1775 29 Nov. 2006 1776
Mr. Second Deputy Speaker 10:20 a.m.
Very
well. So we shall take the motion numbered item 5. Chairman of the Finance Committee?
Mr. Owusu-Adjapong 10:20 a.m.
Mr. Speaker,
it was the Committee of the Whole that handled the matter which your Colleague chaired. I think in such a situation, I can act for you since you are already in the Chair.
Mr. Second Deputy Speaker 10:20 a.m.
Very
well, permission is granted.
Chairman of Committee on Public Accounts (Mr. Samuel Sallas-Mensah) 10:20 a.m.
Mr. Speaker, I beg to second the motion on the floor. Mr. Speaker, the reason why we came to that compromise of deleting $61 million and substituting it with $51 million was that there were two particular loans in that agreement that we needed to discuss further, that is the Presidential mansion loan and also the amount for the liquidation of Ghana Airways.
Some of us thought that if a company is in liquidation, it is in liquidation and we should not incur any further loan to liquidate that company. Liquidation per se, in law, is a facility granted to companies to come out of their problems and restart. Mr. Speaker, on that note, I second the motion.
Question proposed.
Mr. P. C. Appiah-Ofori (NPP -- Asikuma/Odoben/Brakwa) 10:20 a.m.
Mr. Speaker, what I really want to say is that we have already finished debating the merits and demerits of the remaining amount and therefore there is no need for us to continue to argue.
Mr. First Deputy Speaker 10:20 a.m.
Very well.
Question put and motion agreed to.
Resolved accordingly.
Mr. Adjaho 10:20 a.m.
Mr. Speaker, the motion moved which was seconded by hon. Sallas-Mensah stands in the name of the Chairman of the Committee. I do not know whether the motion is being
1777 GOG/Local Banks Agreement 29 Nov. 2006 1778
moved on behalf of the Chairman of the Committee by the hon. Majority Leader or it is being moved by the Majority Leader so that the records -- I said the hon. Member was trying to make some experiment but it was not too clear.
Mr. Second Deputy Speaker 10:20 a.m.
Hon. Deputy Minority Leader, maybe, you were not listening to the explanation that was offered. It was said that the motion as it stands now was arrived at a Committee of the Whole meeting, the Chairman of which was the Speaker. And since the Speaker is in the Chair, permission was granted to the Majority Leader to move it on behalf of the Speaker as Chairman of the Committee of the Whole.
Mr. Adjaho 10:20 a.m.
Mr. Speaker, I entirely agree with you. But what I am saying is that once it is the decision of the Committee of the Whole which has informed this amendment, it should be put properly. If they say it is the Chairman of the Committee of the Whole, it should be the Chairman of the Committee of the Whole; then it is clear.
But if it is a motion, which matter was originally referred to the Finance Committee and we say, Chairman of the Committee, the ordinary interpretation is that the Chairman of the Finance Committee -- that is what we are talking about. It should be Chairman of the Committee of the Whole and not the Chairman of the Committee.
Mr. Second Deputy Speaker 10:20 a.m.
Very well, your point is well noted.
Mr. Owusu-Adjapong 10:30 a.m.
Mr. Speaker,
I need to crave your indulgence to move the Resolution numbered 6 on behalf of the Minister for Finance and Economic Planning.
Mr. Second Deputy Speaker 10:30 a.m.
Very well, you may do so.
RESOLUTIONS 10:30 a.m.
Prof. G. Y. Gyan-Baffour 10:30 a.m.
Mr. Speaker, I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Commercial Loan Agreement between the Government of Ghana and Stanbic Bank Ghana Limited
Mr. Owusu-Adjapong 10:30 a.m.
Mr. Speaker, I ask your permission, as has been granted the previous time, 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, 1970 (Act 335) and 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 Commercial Loan Agreement between the Government of Ghana and Stanbic Bank Ghana Ltd for an amount of US$17,000,000.00 for rehabilitation of some Chanceries and UN Peace- Keeping Operations.
Mr. Adjaho 10:30 a.m.
Mr. Speaker, we are closing the debate on the Financial Policy tomorrow. Mr. Speaker, the understanding is that because of the stadium project and other projects we would take the US$51 million loan agreement without much debate, and that is the reason why when the motion was moved we were able to move it without anybody trying to prolong the debate so that Members of this House can have sufficient time to debate the Financial Policy of the Government.
Mr. Second Deputy Speaker 10:30 a.m.
Order! Order!
Hon. Deputy Minority Leader, you did acknowledge that you were not part of the discussion; so the entire agreement, you may not be privy to. I think the Chairman of the Public Accounts Committee wanted to explain.
Mr. Sallas-Mensah 10:30 a.m.
No, I was going to draw the Deputy Minority Leader's attention to the fact that although the original Resolution is for US$51 million, it was broken down into various projects and programmes, and also different banks are involved. So we cannot take them as
one Resolution.
Mr. Second Deputy Speaker 10:30 a.m.
You want to second the motion?
Mr. Sallas-Mensah 10:30 a.m.
Mr. Speaker, I beg to second the motion.
Dr. Benjamin Kunbuor (NDC -- Lawra-Nandom) 10:30 a.m.
Mr. Speaker, it is about the amendment that was to be substituted with US$51 million -- If my understanding of previous discussions are right, the figure should have been US$41 million and not US$51 million, because we had a difficulty with the issue of the chancery on which the documentation indicated that it was US$3 million that was sourced for the refurbishment and yet it came out that US$5 million was being sourced for the chancery as well.
Mr. Second Deputy Speaker 10:30 a.m.
Hon.
Member, the motion on it has been moved and seconded and agreed by the House.
Dr. Kunbuor 10:30 a.m.
Mr. Speaker, I am just
drawing attention to it.
Mr. Second Deputy Speaker 10:30 a.m.
But the
decision has been taken already.
Dr. Kunbuor 10:30 a.m.
Very well.
Question put and motion agreed to.
Resolved accordingly.
Commercial Loan Agreement between the Government of Ghana
and Cal Merchant Bank Limited
Mr. Owusu-Adjapong 10:30 a.m.
Mr. Speaker, I beg to move, that
WHEREAS by the provisions of article 181 of the Constitution and
1779 29 Nov. 2006 1781 GOG/Stanbic Bank Ghana 29 Nov. 2006 Ltd. Loan Agreement
Prof. Gyan-Baffour 10:30 a.m.
Mr. Speaker, I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Loan Agreement between the Government of Ghana and Merchant
Bank Ghana Limited
Mr. Owusu-Adjapong 10:30 a.m.
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, 1970 (Act 335) and 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 Commercial Loan Agreement between the Government of Ghana and Merchant Bank Ghana Limited for an amount of US$20,000,000.00 for rehabilitation of Ohene Djan and Baba Yara Stadia.
THIS HONOURABLE HOUSE 10:30 a.m.
H E R E B Y R E S O LV E S A S 10:30 a.m.
Prof. Gyan-Baffour 10:30 a.m.
Mr. Speaker, I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Mr. Second Deputy Speaker 10:30 a.m.
I
believe that ends the Resolutions?
Mr. Owusu-Adjapong 10:30 a.m.
Yes, Mr. Speaker.
Mr. Second Deputy Speaker 10:30 a.m.
So now we can go to item 4 on the Order Paper. Item 4 -- Motion for the House to consider the Financial Policy of the Government. I hope hon. Members have their minds in the House. We are now on the motion on the Budget.
MOTIONS 10:30 a.m.
Mr. E. K. D. Adjaho (NDC -- Avenor/ Ave) 10:40 a.m.
Mr. Speaker. I rise to contribute to the debate on the floor in relation to the Financial Policy of the Government. And Mr. Speaker, in doing so I would like to take note that this is the last but one Budget of H.E. President J. A. Kufuor; he has got one more Budget to present and his term will be over. This is the seventh one and if I do not know -- [Interruptions.] -- So Mr. Speaker, he has got only one more Budget; that is the 2008 one.
Mr. Speaker, a lot of figures were
brandished yesterday when this debate started and I must say that figures are good -- Figures may be good, but people can also play tricks with figures. I am not saying anybody has played tricks with figures, but I know that people can play tricks with figures.
Mr. Speaker, one thing that nobody can play tricks with is the fact that if there is hardship, if you have difficulties with the people -- Nobody can play tricks with the difficulties of the people, nobody can play tricks with the hardship of the people; nobody can play tricks with the suffering of the masses.
Over the weekend and when I listened to the news report of the New Patriotic Party (NPP) Regional Delegates Congress it came out that now the suffering and the complaints are not only limited to the Wahala people, but even some members of the NPP are also complaining bitterly.
Mr. Speaker, we are complaining about
hardships, about wages at a time when we had been told that the Budget was a “Good News” Budget. If we have experienced strikes from the public servants front, from the nurses front, from the doctors front and from the teachers front and if that was “Good News” Budget -- Those are the things that we have experienced as a nation and as a people in this country.
Energy crisis -- those were the characteristics of the 2006 “Good News” Budget; I do not know what we are going to experience in the Jubilee Budget.
Mr. Speaker, one area of concern, as I listened and tried to look at the document which is the subject matter of this debate, is with regard to the National Youth Employment Programme. Mr. Speaker, it is good to create jobs for the youth and our people. In principle it is a good idea.

But Mr. Speaker, if the economy is doing very well, I should have thought that the economy would generate those jobs. What we are seeing now is that we go and stifle the health sector by taking part of the Health Insurance Fund to

1783 29 Nov. 2006
-- 10:40 a.m.
Mr. Second Deputy Speaker 10:40 a.m.
Hon.
Majority Leader, do you have a point of order?
Mr. Owusu-Adjapong 10:40 a.m.
Yes, Mr. Speaker. I believe my hon. Colleague is seriously misleading this House. It is this same Parliament that took the decision on the need for us to be involved and ensure that moneys allocated to MDAs are used to our satisfaction. And these decisions to take money from those areas were taken on the floor of the House. Is he saying that we were misguided in taking that decision?
Mr. Adjaho 10:40 a.m.
Mr. Speaker, but for what was referred to as community policing, which generated a lot of debate on the floor of the House, I do not know when this House agreed to get money from the GETFund to create jobs, or to take money from Road Fund to create jobs. If he can look into the Hansard and produce it to me, I am prepared to withdraw. If he is able to bring that information, I am prepared to withdraw what I have said and apologize to the hon. Majority Leader. I am prepared to do that.
Apart from the community policing which we put in the District Assemblies Common Fund formula, which some of us objected to, Mr. Speaker, I cannot
Mr. Adjaho 10:40 a.m.


remember that all the other funds that I have mentioned, this House ever took any decision to do what he said we did.

Mr. Speaker, what it therefore means
Mr. Second Deputy Speaker 10:40 a.m.
Very well, just a moment. It is a subject which is verifiable from the Hansard. So when the Clerk to Parliament looks through the Hansard and finds that indeed the decision was taken, then obviously your statement will not be admitted. However, if it is the other way round, of course, then you are on the right course. So we will have that verified.
Mr. Adjaho 10:40 a.m.
Mr. Speaker, I was
Mr. Second Deputy Speaker 10:40 a.m.
Hon.
Joe Gidisu, do you have a point of order to raise?
Mr. J. K. Gidisu 10:40 a.m.
Yes, Mr. Speaker.
Mr. Speaker, the point being raised by the Deputy Minority Leader stands as the truth, representing the proceedings of the House.
Mr. Second Deputy Speaker 10:40 a.m.
Hon. Member, you are out of order.
Mr. J. K. Gidisu 10:40 a.m.
Mr. Speaker, I just
Mr. Second Deputy Speaker 10:40 a.m.
Hon.
Member, you are out of order, and I have ruled on it.
Mr. J. K. Gidisu 10:40 a.m.
Mr. Speaker, point
of information.
Mr. Second Deputy Speaker 10:40 a.m.
Resume
your seat; I will call you in due course. But for this, I have ruled on it and if you are raising this, then it is out of order. Hon. Deputy Minority Leader, please go
on. We will get his information later.
Mr. Adjaho 10:40 a.m.
Mr. Speaker, I can assure
you that there is no other information that will be brought to contradict what I have said. But Mr. Speaker, as I have said, I am waiting for the hon. Majority Leader to bring that information.
Mr. Speaker, therefore if all these
moneys, for example, go to the health sector my position is that it will help to improve the health sector. But if we take part to create a job, then we stifle the health sector. In fact, this morning, in the news, we were told that there is shortage of acid concentrate at the Korle Bu Teaching Hospital and therefore those who are suffering from kidney problems and are supposed to go for dialysis, or whatever it is called, cannot get it done. And they asked them how long they are going to live if they do not -- and they said about two weeks. If they do not get it within two weeks they are going to lose their lives.
So Mr. Speaker, I believe that this creates a little problem -- We are creating some jobs here but we are stifling another sector of the economy, and that is the point that I wanted to make with regard to the National Youth Employment Programme.
Mr. Speaker, another point I would
want to draw attention to is with regard to the Appendix to the Budget Statement. But Mr. Speaker, I would want to refer to page 322, Appendix 4(a) of this year's Budget Statement. Mr. Speaker, if you look at that Appendix you will find out that an amount of ¢594.5 billion has been applied within the first three quarters to subsidize the Tema Oil Refinery's (TOR) under-recovery.
Mr. Speaker, last year this House adopted the policy of petroleum deregulation. We had passed legislation to give teeth to this policy last year. And we are now told that we are going to pay
Mr. Isaac Asiamah 10:40 a.m.
Mr. Speaker, I
think the hon. Deputy Minority Leader is misleading this House. He said that the money for the auxillary health assistance will rather stifle the health sector. Mr. Speaker, it is rather the contrary. When you go to most of our rural communities there is shortage of health personnel. So it is rather going to augment and promote health delivery in our respective communities. It is rather going to enhance health delivery; it is not going to stifle the health sector.
Mr. Second Deputy Speaker 10:40 a.m.
Hon.
Member, this is a contribution you can make when it comes to your turn. Please, go on.
Mr. Adjaho 10:40 a.m.
Mr. Speaker, before
he makes his contribution he should go and look at those statutory funds and what they are supposed to do. But Mr. Speaker, we are talking about ¢594.5 billion as subsidy to TOR. You look at this Appropriation Act, Act 695, which received the Presidential Assent on 29th December, 2005. Mr. Speaker, if you look at it, you would see that this House did not authorize any use of any money for TOR's own utility price subsidies. Mr. Speaker, if you look at Act 695, the First Schedule, section 1 -- Utility Price Subsidies -- 0.
Now, we are being told that we spent
Mr. P. C. Appiah-Ofori 10:40 a.m.
Mr. Speaker,
I just want to draw his attention to a fact and to bring to the notice of the whole country -- What my hon. Friend here
1789 Government's Financial 29 Nov. 2006
is saying is that it is an offence for the Government to try to subsidize TOR. If he is saying so, I would like Ghanaians to know that they do not want us to deliver cheap petroleum products to them.
Mr. Second Deputy Speaker 10:40 a.m.
Hon.
Appiah-Ofori, you are out of order.
Mr. Adjaho 10:40 a.m.
Mr. Speaker, I thank you
very much. At times when one is very good at criticizing one's Government, when one wants to defend it, one runs into difficulties.
Mr. E. A. Agyepong 10:50 a.m.
On a point of order. Mr. Speaker, I hope my good Friend, the hon. Member for Avenor/Ave, is going to tell us that besides the Consolidated Fund, there is the Contingency Fund. The Contingency Fund allows the Government a leeway to operate the economy in the way and manner it deems fit. Except if he wants us to understand that the amount they used was more than the Contingency Fund and that the money might have come from somewhere -- That would be very convincing, otherwise he has no point.
Mr. Adjaho 10:50 a.m.
Mr. Speaker, there
are procedures. When money made available is insufficient to finance your programmes, you come back to this House to inform the House. Indeed,
1791 Government's Financial 29 Nov. 2006
Prof. Gyan-Baffour 10:50 a.m.
On a point
of order. Mr. Speaker, I think the hon. Member on the other side does not understand what these contingency funds are actually meant for. Contingency means that in the event that there is anything that has not been appropriated directly, you could use those resources to meet those contingencies. Therefore, if the country is besieged and we need petroleum products to run the economy, we do not have to come to Parliament before we can actually do that -- [Uproar.] That is the purpose of the Contingency Fund.
rose
Mr. Second Deputy Speaker 10:50 a.m.
Order!
Order! Hon. Member for Lawra/Nandom
Dr. Kunbuor 10:50 a.m.
On a point of order. Mr. Speaker, I think we are actually giving very, very strange interpretations to the provisions on the Contingency Fund. Before you can actually withdraw from the Contingency Fund, there should be some conditions precedent; one, that the particular expenditure could not have been anticipated in the main appropriation; and that immediately you have used the money you come to get it ratified by the Finance Committee in Parliament -- [Inter- ruption.]
W h a t w e a r e l o o k i n g f o r i s whether there is any evidence about the unforeseeability of this Tema Oil Refinery (TOR) expenditure, or whether they subsequently came to the Finance Committee of Parliament to get the ratification. That is the issue. This is a serious constitutional matter that should
not be interpreted so lightly.
Mr. Speaker, for the records of the House, I can read the appropriate provision under article 177 and I quote:

Mr. Speaker, this is the level of the seriousness of the issue the hon. Deputy Minority Leader is raising; and it is a very serious matter about accountability in this country. [Hear! Hear!] -- [Inter- ruption.]
rose
Mr. Second Deputy Speaker 10:50 a.m.
Hon.
Deputy Minister for Finance and Economic Planning, let us hear you.
Prof. Gyan- Baffour 10:50 a.m.
On a point
Mr. Second Deputy Speaker 10:50 a.m.
Order!
Order! Let us hear you.
Prof. Gyan-Baffour 10:50 a.m.
Mr. Speaker, I think hon. Dr. Kunbuor is confusing the Contingency Fund that is prescribed in the Constitution -- That has not been set up; he knows it. This contingency line is not a fund; it is actually a line item in the Budget -- [Uproar] -- So he should go back in there -- [Uproar] -- We have not set up the Contingency Fund.
Mr. Second Deputy Speaker 10:50 a.m.
Order!
Order! Let there be quiet in the House
so that proceedings can go on. Hon. Member, your main point is that there was no indication that any amount was voted for to subsidize TOR and that there has however been expenditure on that. You are being told that there is a contingency line, which allows Government to deal with unforeseen cases arising.
What the hon. Member for Lawra/ Nandom referred to as constitutional provision, it is being argued, is the Contingency Fund that should be set up. If there is that distinction then obviously you would expect that if the hands of Government were tied in such a way that serious matters arising cannot be dealt with, that could present a problem. Nevertheless, hon. Member for Avenor/ Ave, you may please conclude your argument.
Mr. Adjaho 10:50 a.m.
Mr. Speaker, unless we
want to make useless the Appropriation Act, then people, including the hon. Prof. Gyan-Barfour, can take that line of argument. What is the essence of the Appropriation Act, which authorizes Government to spend? Mr. Speaker, be that as it may, this law was passed in December 2005 to allow Government to start spending in July 2006.
Mr. Speaker, if you look at their own ‘Supplementary Estimates' which was delivered to this House on 13 th July, 2006, by the time they started the implementation they had already spent ¢364 billion to subsidize TOR. Even from January to April they had spent ¢364.0 billion. When did the contingency arise? That is the question.
Mr. Speaker, I am referring to Appendix table A of the Supplementary Estimates of the Government of Ghana, which was delivered on Thursday, 13th July 2006. If you look at that Appendix, they have even stated that they had spent ¢364 billion between January and April on
1793 Government's Financial 29 Nov. 2006 Pol-
contingency. The law started in January and they had not made provision for it in their own Appropriation Act; then by January they had already spent ¢364 billion whilst in their own Appropriation Act, the line item they put there is zero -- zero.
How then does Parliament perform its oversight responsibilities over the national purse? In their own Appropriation Act they put there that -- and their own Government policy is that we are now going to pay for the full cost of fuel based upon which the National Petroleum Authority (NPA) Act was passed, based upon which prices of fuel in the country are being adjusted in line with the world market prices.
Here we are, paying for the full cost and then we are now being told that we have spent ¢594.5 billion. So all the full cost that we have paid, wherein lies the full cost that we have paid? That is why I am asking the question; is it a failure of policy or are they telling us something different; that we are paying for fuel and yet they are subsidizing some other people? Who are those people that they are subsidizing? Or has the policy of deregulation or removing subsidies totally failed? If it has failed, we should say so.
Mr. Simon Osei-Mensah 11 a.m.
On a point of order. Mr. Speaker, I think the hon. Deputy Minority Leader is seriously misleading this House because it is not a failure of policy. Mr. Speaker, with your indulgence I want to quote from -- [Interruption.]
Mr. Second Deputy Speaker 11 a.m.
Let me
hear his point of order.
Mr. Osei-Mensah 11 a.m.
Mr. Speaker, I am
on a point of order. I want to quote from the Budget Statement for 2007, page 306, that is, paragraph 1352 --
“Mr. Speake r, Governmen t absorption of the recent increases announced by the Public Utilities Regulatory Agency is only a temporary measure. Government is, however, still committed to full cost recovery in the energy sector.”
Mr. Osei-Mensah 11 a.m.
So the hon. Member is misleading this House.
Mr. Second Deputy Speaker 11 a.m.
Order! Hon. Member, you have raised a pertinent issue but you have not addressed the real issue which he is complaining about.
Mr. Adjaho 11 a.m.
Mr. Speaker, I want to place on record that I was Chairman of the Joint Committee -- [Interruption.]
Mr. Kyei-Mensah-Bonsu 11 a.m.
Mr. Speaker, the hon. Deputy Minority Leader is raising issues which should agitate all of us. I believe the appropriate persons could respond to them. But then, he asked a rhetorical question pertaining to hon. Kwadwo Baah-Wiredu; he mentioned him by name; he mentioned the name of the Deputy Minister, Dr. Anthony Akoto Osei; then he mentioned the name of Prof. Gyan-Baffour and asked why they did what they did.
1795 Government's Financial 29 Nov. 2006
Mr. Second Deputy Speaker 11 a.m.
Hon. Member for Avenor-Ave, I think the whole essence of this provision in the Standing Orders is to remove personalizing individuals and address offices. So you did mention their names and you may do the right reference -- [Interruption] -- Order!
Mr. Adjaho 11 a.m.
Mr. Speaker, I will disregard those interventions but it is important to place on record the paragraph that the hon. Member -- [Interruption.]
Mr. Second Deputy Speaker 11 a.m.
Hon. Member, I have said that there is a rationale behind the provisions of the Standing Order that Members refrain from referring to Ministers and Deputy Ministers by name, so as not to personalize acts done by them. So I am saying that in view of the sound rationale for that, you may wish to move away from mentioning them by name and mention their titles.
Mr. Adjaho 11 a.m.
Mr. Speaker, I thank you very much but I also mentioned their respective Ministries.

Some hon. Members -- rose --
Mr. Second Deputy Speaker 11 a.m.
Hon. Member, please go on. I told him that he had not addressed the main issue, so please do not spend time on that.
Mr. Adjaho 11 a.m.
Mr. Speaker, I can see the discomfort on the Majority side -- hon. Asiamah has moved from his seat to give support to hon. Kofi Frimpong -- [Laughter.]
Mr. Second Deputy Speaker 11 a.m.
Order! Just hold on a moment. I see too much movement around and there is background noise. In order that we give this subject the importance it deserves, I will plead with hon. Members to pay rapt attention to contributions being made. Please, go on.
Mr. Adjaho 11 a.m.
I have said time and again that corruption does not know any political colour. We should all team up and fight it headlong. Mr. Speaker, in 1999, the CPI of Ghana was 3.3; in 2006 the CPI of Ghana
1797 Government's Financial 29 Nov. 2006 Pol-
is still 3.3 in spite of the gains that we have made which I believe were informed by the passage of certain legislations like the Financial Administration Act, the Internal Audit Act, the Procurement Act, et cetera, in this House. But Mr. Speaker, we are now confronted with the issue and I had thought that Government would seize this opportunity to bring out major policy initiatives to address some of these problems.
Some of us are getting worried. We have passed the Financial Administration Act for well over three years, but Mr. Speaker, what has prevented Government or the Judiciary or whoever is responsible from establishing, for example, the financial tribunal envisaged under that Act? What has prevented us? Three years after the passage of that law, we have not established the financial tribunals that are supposed to handle certain cases.
Mr. Speaker, I believe that some of these things should be taken serious. When we pass a law, we pass the law because this House believes that those laws are important for achieving certain specific purposes. But when the laws are passed only for the mere sake of passing them and they are not fully implemented, then there is cause for concern as to why the Executive is not executing the laws that this House has passed.
Mr. Speaker, I can refer to other laws but because of time constraint, I just want to give that example, in our fight against corruption.
Mr. Second Deputy Speaker 11 a.m.
I hope you are winding up.
Mr. Adjaho 11:10 a.m.
Mr. Speaker, if you look at Appendix 22 of the Budget Statement -- I saw a certain figure there and I was a bit worried -- page 349. I saw certain

Mr. Speaker, we are being told that US$25 million is going to be made available to the Ministry for Parliamentary Affairs for parliamentary offices. They are going to get proposed short-term loans. I was asking myself, why not Office of Parliament but the Ministry of Parliamentary Affairs? Why should this money not go to the Office of Parliament? Parliament, as Parliament, has on several occasions procured loans in its own right; why are we giving our money to the Ministry of Parliamentary Affairs?
rose
Mr. Second Deputy Speaker 11:10 a.m.
Hon.
Deputy Minister for Finance and Economic Planning, do you have a point of order?
Dr. A. A. Osei 11:10 a.m.
Mr. Speaker, on
a point of order. Mr. Speaker, he has made an allegation that we are spending US$45 million on the presidential palace. Mr. Speaker, he knows very well that is incorrect. Nobody has made any statement anywhere that US$45 million is going to be spent on the presidential palace.
Mr. Speaker, last time when it came to
this House -- he was not here so he does not remember -- we were asked to explain
1799 Government's Financial 29 Nov. 2006 1801 Government's Financial 29 Nov. 2006
why the additional money and we told them that it was not for the presidential palace but that the residence of the military officers next door to the presidential building has to be moved, and the AESL had given us estimates about moving them from there; it is not for the presidential palace. He knows better than that.
Mr. Second Deputy Speaker 11:10 a.m.
Very
well. Hon. Member, take that on board.
Mr. Adjaho 11:10 a.m.
Well, what I have there
is “Flagstaff House additional”; and “additional” means that one is adding something to something -- [Laughter] -- which means that there is some figure there and they are adding another figure to it. It is part of the cost of the whole project anyway.
We know that this House approved US$30 million to make our current President and our future presidents comfortable. Now, we are adding an additional US$15 million as part of that whole project. Mr. Speaker, in view of the suffering in this country, that cannot just be justified.
Mr. Speaker, US$20 million, in actual
fact one hundred and eighty-two billion cedis was approved in the Supplementary Estimates for the Government only this year, for Ghana@50. When we asked them to give us the line items, what those moneys were going to be used for, they told us that they will come back to us. Mr. Speaker, as I stand on my feet now, they have not come back to tell us the specific items that the twenty million dollars is going to be used for. For us to go back and add another $11.8 million for our Golden Jubilee Anniversary while people in Korle Bu Hospital are dying, Mr. Speaker, is just indefensible.
Mr. Speaker, I believe that --
Mr. Second Deputy Speaker 11:10 a.m.
Hon.
Member for Kwabre East, do you have a point of order?
Mr. Kofi Frimpong 11:10 a.m.
Mr. Speaker, the
hon. Member is misleading this House. This is because when Ghana attained forty years, they celebrated it. How much did they spend? How much money did they spend on that? They did not tell us; we did not know -- [Uproar.] Now, we have a transparent Government that is prepared to tell us every pesewa that it spends.
Mr. Second Deputy Speaker 11:10 a.m.
Hon.
Member, you are out of order. When it comes to your turn, you can contribute.
Mr. Adjaho 11:10 a.m.
Mr. Speaker, I want
Mr. Second Deputy Speaker 11:10 a.m.
Hon.
Member, try to save time. Since he has been ruled out of order, why do you not go to the substance of your contribution? Please, go to the substance of your contribution.
Mr. Adjaho 11:10 a.m.
Mr. Speaker, he knows he
has no point of order; he wants to heckle me and then he says something which is wrong. We have to correct the records.
Mr. Second Deputy Speaker 11:10 a.m.
Not when he is ruled out.
Mr. Adjaho 11:10 a.m.
Mr. Speaker, if it is
your view that I should disregard him, I
Mr. Second Deputy Speaker 11:10 a.m.
Please,
go ahead.
Mr. Adjaho 11:10 a.m.
Mr. Speaker, glancing
Mr. Second Deputy Speaker 11:10 a.m.
Just a
moment. Let us hear what the complaint of the Majority Chief Whip is.
Mr. Kyei-Mensah-Bonsu 11:10 a.m.
Thank
you, very much. Mr. Speaker, the Deputy Minority Leader really is keen on placing issues on record. And if he wants to make a correction, he does so and places it on record. Mr. Speaker, for the records, we have not approved any loan for a presidential palace in this House. And that is for the record. Mr. Speaker, he is wrong to have referred to a loan facility that we approved here in respect of the Flagstaff House accommodation as a presidential palace -- [Uproar] -- There is nothing like that; this House has not done any such thing.
Mr. Second Deputy Speaker 11:10 a.m.
Hon.
Member, please go ahead.
Mr. Adjaho 11:10 a.m.
We live to see whether
Mr. Adjaho 11:10 a.m.
Mr. Speaker, these are
figures that I have seen in this Budget Statement that are worrying. Mr. Speaker, these are my concerns as far as this document before this House is concerned.
I find myself -- unless there could
be better and further documents, better explanations, better justifications, which I find difficult to see coming -- I do not see how we can be spending our money this way and think that the suffering of our people, the hardships of our people would be a thing of the past. It appears that things that are buried in this document, figures that are buried in this document are not and cannot be in the interest of the broad masses of our people.
Dr. Francis Osafo 11:10 a.m.
None

Mpraeso): Thank you, Mr. Speaker, for allowing me to contribute to this debate. I rise to support the motion that this House approves the Financial Policy of the Government for the fiscal year ending 31st December, 2007.

I want to spend my time on the health sector. If one looks at the Millennium Development Goals, most of the initiatives that are required centre on goals for the Ministry of Health. We are to reduce child mortality, improve maternal health, combat HIV and AIDS. The Ministry of Health from 2006 to 2007 seeks to bridge the gap between the people on access to health facilities and also offer financial support to the poor and the ordinary man. For access to health, this is for geographical access and for financial support from the Government for the people to be able to pay their hospital bills.
Mr. Second Deputy Speaker 11:10 a.m.
Hon.
Member for Bawku Central, do you have a point of order?
Mr. Ayariga 11:20 a.m.
On a point of order. Mr. Speaker, the hon. Member is seriously misleading this House and the nation. Mr. Speaker, the cash and carry system has not yet been abolished. Mr. Speaker, the reality is that we have put in place a legislation that goes to establish, nationwide, the National Health Insurance Scheme. But the establishment of that scheme does not mean that the cash and carry system has been abolished. Mr. Speaker, you only need to walk into the nearest hospital and you will see that the cash and carry system is even more alive now than it was before the establishment of the National Health Insurance Scheme.
Mr. Second Deputy Speaker 11:20 a.m.
Hon.
Member for Mpraeso, please go on.
Dr. Osafo-Mensah 11:20 a.m.
Mr. Speaker, if
Mr. Second Deputy Speaker 11:20 a.m.
Hon.
Members, there are certain issues that are expressions of one's opinion and they should not be subject to points of order. Please, go on.
Dr. Osafo-Mensah 11:20 a.m.
Mr. Speaker,
the cash and carry system officially is no more. When you go to hospital, you
1803 Government's Financial 29 Nov. 2006
Mr. Francis Agbotse 11:20 a.m.
On a point
Mr. Second Deputy Speaker 11:20 a.m.
Order!
Order! Please, order! Let us always distinguish between policies and breaches -- policies and breaches thereof. Hon. Member for Ho West, I am saying that you have done what the law requires, but some people are frustrating your rights. I believe you can take action on that. Please, go on. Let the hon. Member for Mpraeso go on.
Dr. A. A. Osei 11:20 a.m.
On a point of
information. Mr. Speaker, my senior Colleague was trying to imply that the SSNIT Hospital is a public facility, but it is not. Therefore, if you take your card there you are not eligible to receive free treatment. It is only good for public defined hospitals; and SSNIT is not one of them.
Mr. Agbotse 11:20 a.m.
Mr. Speaker, just
yesterday, I saw in the newspapers registered private hospitals which were supposed to receive the --[Inter-ruptions] -- Yes, yesterday, it was in the newspapers. Private clinics like Akpe Na Mawu Clinic in Ho, are accepting -- [Interruptions.]
Mr. Second Deputy Speaker 11:20 a.m.
Order!
Order! Let us hear from the hon. Minister for Aviation.
Ms. Gloria Akufo 11:20 a.m.
Mr. Speaker, I
think I need to assist the House. I have
Mr. Second Deputy Speaker 11:20 a.m.
Order!
Order! Please, resume your seat. Order, please! There is no doubt that from the exchanges that have taken place there is even in the minds of hon. Members of Parliament a set of unclear positions on this access to places. So Leadership may please get the Minister for Health to come and brief the House at an appropriate time, fully on that. Hon. Members ought to be very clear in their minds before they can go and disseminate the policy outside. So I order that the Leadership take steps to get the Minister for Health to come and brief the House fully on this matter.
Hon. Member for Mpraeso, you may
please go on.
Dr. Osafo-Mensah 11:20 a.m.
What I would
like to remind Members of is that this is a system which is completely new and is being developed; it is not completely developed. The other areas which are not applicable to the policy that was stated at the beginning -- At the moment, we are more or less at the developmental stage of the whole process, and if you take your card to a different hospital and you are not attended to, it is not because the system
does not work but it may be because you did not follow the rules.
With regard to the National Health
Insurance System, apart from this, hon. Members and the entire country will have to know that the development is going on and there are certain things that will be corrected as time goes on. So it does not follow that the system does not work, neither does it follow that we want to bring back “cash and carry”.
Mr. Ayariga 11:20 a.m.
On a point of order. Mr.
Speaker, legislation was passed by this House; tax is being deducted; citizens are paying taxes and they expect a functional National Health Insurance System. Mr. Speaker, for the hon. Member to tell us, after so much money has been taken from the citizenry, that the system is not functional, he owes this House a duty to explain to us where the money that has been taken to make the system functional is going?
Mr. Second Deputy Speaker 11:20 a.m.
Hon.
Member, that is not a point of order. When the Minister for Health comes to the House at the appropriate time to give the briefing, obviously, you can raise this personal issue. Hon. Member for Mpraeso, you may please wind up.
Dr. Osafo-Mensah 11:20 a.m.
Mr. Speaker, the
monies that have been deducted so far go into the National Health Insurance Fund which will then be pushed on to the National Health Insurance -- The levy goes into a fund and this is what is to be used to subsidize distressed mutuals and also to support or give money for payment for services rendered to people who are exempt. At the moment, we have about 59 per cent of people who have been registered on the exempt list and their hospital bills are paid from the levy and the Fund that has been set up. So it is not a
question of the monies deducted and you do not know where they went to.
Mr. Ayarigah 11:30 a.m.
On a point of order. Mr. Speaker, the hon. Member is once again misleading this House. If you refer to paragraph 750, and with your permission, I will read part of paragraph 750, which deals with National Health Insurance Scheme. Mr. Speaker, it reads --
“Activities implemented in 2006 include:
The registration of a total of 6,036,687 persons by end of September, representing 34 per cent of the total population. Out of this figure, 4,424,424 (representing 25 per cent) have either paid up their premiums fully or belong to the exempt group; and 2,837,987 (representing 18 per cent) have been issued with ID cards which entitles them to free access to health services covered by the Scheme. Over 59 per cent of the registrants are in the exempt categories.”
Mr. Speaker, there is a distinction between registrants and those who have actually received identity cards and are enjoying free healthcare. So the point that I am making is that we have only 18 per cent of the registrants actually enjoying the National Health Insurance Scheme. And so it is misleading for him to create the impression that simply because 59 per cent have their names on their list means that they are already enjoying the exemptions under the National Health Insurance Scheme. Mr. Speaker, he is misleading the House and he ought to withdraw that.
Dr. Osafo-Mensah 11:30 a.m.
Mr. Speaker, I
1807 Government's Financial 29 Nov. 2006
Mr. Second Deputy Speaker 11:30 a.m.
Hon. Member for Mpraeaso, please go on.
Dr. Osafo-Mensah 11:30 a.m.
Mr. Speaker, the
NHIS, if I may say so, is probably about the best thing that has happened to this country and it is unique in West Africa and probably in the whole of Africa. We hear about NHIS in other parts of Africa but these are limited. A comprehensive one covering everyone in the country has not been attempted anywhere in Africa. So our people should be encouraged to register and also to make sure that the Scheme succeeds, instead of the adverse comments being made about the Scheme.
Mr. Pele Abuga 11:30 a.m.
Mr. Speaker, I rise
on a point of relevance. Mr. Speaker, when the hon. Member started, I thought he was just going to say a little bit about health insurance and move on to the main Budget. But he has been talking about health insurance all through. The motion is about the Financial Policy of Government for 2007 and not the NHIS.
Mr. Second Deputy Speaker 11:30 a.m.
In
fact, you are out of order. Please, wind up hon. Member.
Dr. Osafo-Mensah 11:30 a.m.
Mr. Speaker, the
health insurance is very important and of relevance because it is meant to cater for the financial aspect of the citizen to health.
The Financial Statement also talks
about the collaboration between the Ministry of Health and other Ministries. If we take, say, the Ministry of Works and Housing and Water Resources, we would find that the provision of potable water has a bearing on the health of the people. On the question of eradicating guinea-worm, for instance if the Ministry of Water Resources could provide every village with potable water then the fight against guinea-worm would have been won. Apart from that, the Ministry of Local Government, Rural Development and Environment has also got a part to play in the promotion of health.
We have to make sure that our environment is well catered for; and this is not directly a responsibility of the Ministry of Health, but co-operation that could exist between the Ministry of Health and the Ministry of Local Government, Rural Development and Environment in this regard. The Ministry intends to be in consultation and agreement with that Ministry to do this kind of thing.
The District Assemblies are also
important in the promotion of health because they are supporting the training of nurses and other paramedical staff.
Mr. Second Deputy Speaker 11:30 a.m.
Please,
conclude.
Dr. Osafo-Mensah 11:30 a.m.
Mr. Speaker,
I think the programme as set out by the Ministry of Health is something that will improve the health of the citizens of Ghana. Some of the things that are very important are mostly personal. The way we keep our environment, the way we see
adults littering the whole place, the way we see them disposing of solid and liquid wastes, are things that affect everybody including Members of Parliament and their constituents. If we can take care of these things, the health budget will be reduced considerably.
Mr. Speaker, I think everybody should support the Budget Statement, especially the health sector according to what has been proposed. The NHIS must be supported by Members. Also, the co- operation between the Ministries should also be supported especially with regard to sanitation.
Mr. Second Deputy Speaker 11:30 a.m.
The
debate will be better enriched by having as many different shades of opinion as possible. In order to achieve that, in order that many more can talk, it is important that we condense our contributions within the time allotted. And then interruptions which are just issues of disagreeing with somebody's view should be minimized. Only real points of order should be raised. That will enable Members to contribute whatever they have in a very timeous way to allow others to speak.
From the advice I have, the Majority and Minority Leaders have 20 minutes each allotted to them, then other Members of the Leadership will have 10 minutes each; and then other Members will have 5 minutes each. So when you rise to speak, be conscious of the time allowed; condense your essential points into your speech so that you can make your points without necessarily spending too much time.
11. 40 a.m.
Mr. Moses A. Asaga (NDC -- Nabdam) 11:30 a.m.
Thank you Mr. Speaker. I think, at this juncture, the hon. Minister for Finance and Economic Planning should be
listening, because there are very important issues that I am going to raise.
Mr. Speaker, if you look at this Budget
Statement, I have always said a budget document is a very important document; it is an international document and we must be very careful about its reliability and its contents.
To begin with, if the Ministers of Finance and Economic Planning are here, they should look at page 11, paragraph 25. Page 11, paragraph 25 is trying to give us the world outlook of commodity prices and the problem I have with it is that, if you read that paragraph, you realize that it has been lifted from page 5 of the World Economic Outlook of 2006 issued by the World Bank, yet they did not have the courtesy to acknowledge the World Bank's report, and I think that is not acceptable -- [Interruption] -- Mr. Speaker, this is very important because such an important document could also be used by the academia and if they are quoting portions of it, they should be able to make the right reference.
I remember the hon. Deputy Minister for Finance and Economic Planning the other day was referring to plagiarism and was acknowledging how it was not good to do that, but that is exactly what we have done in this case --[Interruption] -- There is nothing wrong with “cut and paste” but we must acknowledge the source. I think that when we are doing the conclusion, the Ministry of Finance and Economic Planning would do the amendment by acknowledging the World Bank's World Economic Outlook for 2006 as the source.
Mr. Speaker, I think the Ranking
Member for Finance has dealt with a
Nana Akomea 11:30 a.m.
Mr. Speaker, on page
Mr. Second Deputy Speaker 11:30 a.m.
Order!
Order! Hon. Nana Akomea, there was a quotation, according to what he is saying, and when you quote, your source has to be indicated as acknowledgement.
Nana Akomea 11:30 a.m.
Mr. Speaker, with
Mr. Second Deputy Speaker 11:30 a.m.
Order!
Order! I believe that when it comes to the turn of the hon. Minister for Finance and Economic Planning, he would adequately deal with that issue.
An hon. Member: Hon. Minister for
Finance, talk.
Mr. Asaga 11:30 a.m.
No, he has no answer to
1811 Government's Financial 29 Nov. 2006 1813 Government's Financial 29 Nov. 2006
that; he has conceded. So Mr. Speaker, we have witnessed adulteration of fuel; as I said it was a punctuated situation. We have also seen the disparity in the quality of fuel recently and the Committee on Energy had to meet the National Petroleum Authority (NPA) to discuss why there was some quality disparity with products in certain fuel stations. The result was that there was some water and sludge mixed in some of the lifted consignments. As if that was not enough, we have had load shedding programmes that are affecting all sectors of the economy with a twelve-hour power outage every three days.
Mr. Speaker, if there is one sector the Government has not been able to handle properly, it is the energy sector, and we need to look at it in detail.
Mr. Speaker, I believe that every
Government does its best in view of population to have an incremental installation capacity depending upon population growth. That is why I thought that the NPP Government since 2001, has not done enough as far as this additional installation is concerned. Even if you take the First Republic, President Kwame Nkrumah noticed that energy was so crucial to industrialization and that was why he had to break his own principles to take a loan from the western world to construct the Akosombo Dam.
Mr. Speaker, at the time the Akosombo Dam was being constructed, Ghana had a certain population that was very small. Therefore, the capacity that was generated at that time could meet our industrial sector. Other governments came and I believe that by the time the Provisional National Defence Council (PNDC) came, there was an additional capacity by the putting up of a mini-hydro dam at Akuse which could add about 100 to 150 megawatts, at that time.
rose
Mr. Second Deputy Speaker 11:30 a.m.
Yes,
hon. Member, point of order?
Mr. K. Frimpong 11:30 a.m.
Mr. Speaker, the
hon. Gentleman there who has been dazed by his removal from his position is making an erroneous impression -- [Interruption] -- Mr. Speaker, it is not true; it was not the PNDC that constructed the Akuse Dam. It was constructed by the Acheampong regime.
Mr. Asaga 11:30 a.m.
Mr. Speaker, I have been
rose
Mr. Second Deputy Speaker 11:30 a.m.
Hon.
Apraku, he appears to be acknowledging your special relationship.
Mr. Asaga 11:30 a.m.
Mr. Speaker, as a result
of the distortion in the energy economy, there have been huge financial losses to the economy in the year 2006. Productivity losses have also been recorded and so we need to take this sector very seriously. That is why, when we are contributing to the Budget, we should be able, apart from just praising the Budget, to come out with very critical issues which might have been overlooked as a result of fatigue or as a result of myriads of problems that maybe the Government could not capture at one instance.
Mr. Speaker, just today, if you open
page 7 of The Chronicle, there is a news story headlined --
“ 1 , 1 5 4 A n g l o g o l d A s h a n t i Employees to go home . . .”
One of the reasons they have given is
power outages. This is very serious. Mr. Speaker, in the same newspaper, one of the Executive Directors of Anglogold Ashanti is quoted as having said that extra cost of production of gold this year was $1.8 million every month. By simple calculation, if you even just use ten months, that is $18 million extra cost; and it is here. So you can see the extra cost, what this $18 million would have done to Ghana if probably we had undisrupted energy supply to the private sector and industry. These are realities and we must hold this reality by the horn.
Mr. Second Deputy Speaker 11:30 a.m.
Yes,
hon. Chief Whip?
Mr. Kyei-Mensah-Bonsu 11:50 a.m.
On a point of order. Mr. Speaker, the issue that my hon. Colleague is raising about the additional cost of production is a very serious matter and it should concern all of us. But what we need to know from him is what occasioned the additional production cost. Is it on the same quantum of production or extra production and so on? We need to know this. He cannot just quote the figure and leave it. How was it expended? How was it occasioned? That is what he needs to inform us about.
Mr. Second Deputy Speaker 11:50 a.m.
I think whoever holds the information can raise a point of order and provide it.
Mr. Asaga 11:50 a.m.
Mr. Speaker, across industry, the cost of production has increased as a result of energy shortages, because some of them had to bring in emergency generators. So these are some of the reasons that have occasioned the additional cost. Mr. Speaker, as far as these problems are concerned it is not only to ordinary consumers - [Interruption.]
Mr. R. S. Quarm 11:50 a.m.
On a point of order. Mr. Speaker, it is interesting to note that my hon. Colleague opposite is making disparaging remarks about the current Government as if the current Government is to be blamed for the energy crisis. But I refer him to the Budget Statement of March 27, 1984, page 4 on energy; and
Mr. Speaker, with your permission I quote 11:50 a.m.
“The Government noted with concern the impact of the drought on the Akosombo Dam and which led to the curtailment of consumption of domestic and industrial electricity in December, 1983.”
Mr. Speaker, so this is never a new
Mr. Second Deputy Speaker 11:50 a.m.
Order! Order! If he had made the point that there had never been this problem with energy, then you could have raised this; but he has not said so. He has not raised the issue that there had not been problems time back so let him go on.
Mr. Asaga 11:50 a.m.
Mr. Speaker, because of the problems that we have in the energy sector and especially with petroleum, I am just going to enumerate some of the - [Interruption.]
Mr. Second Deputy Speaker 11:50 a.m.
But hon. Member, be mindful of the advice. If you want your hon. Colleagues to talk — and we have a long list — you may please condense and wind up.
Mr. Asaga 11:50 a.m.
Mr. Speaker, this year, the presidential motorcade, four-wheel drive and saloon cars, a lot of them were parked because of fuel adulteration. Therefore, when we are talking about these serious issues we should listen to them. Mr. Speaker, in the same vein a number of vehicles in Accra and other regions
Mr. Kofi Frimpong 11:50 a.m.
On a point of order. Mr. Speaker, during the celebration of the 40th Anniversary, we were queuing for petrol. There were long queues for petrol all over Ghana; but we can assure him that during the 50th Anniversary there would not be any queue for petrol anywhere. There will be a lot of petrol in the system.
Mr. Second Deputy Speaker 11:50 a.m.
Hon. Member, I am sure you will have the chance to contribute and then you can raise that.
Mr. Asaga 11:50 a.m.
Mr. Speaker, hon. Frimpong is one of those who instead of moving forward would rather be thinking backwards. We are talking of Ghana moving forward, we are not
Mr. Simon Osei-Mensah 11:50 a.m.
On a point of order. Mr. Speaker, the hon. Member is seriously misleading this House; and he is making some statements that are factually incorrect. Mr. Speaker, if he says that instead of we moving forward we are only looking back — Nobody can prepare a budget without taking into consideration the historical aspect and then come to the present and then project forward.
So if he is saying that we are going forward and that we should not look back, then it would be extremely difficult for us to prepare a budget, because a budget takes cognizance of the past, the present and then projects forward. So if he does not know he should take that on board.
Mr. Second Deputy Speaker 11:50 a.m.
Hon. Member, I think the reference he made was in connection with the incidence in the past. I do not think he is saying that this budget is not forward looking, he has not said so. So if that is the case then your quarrel with him should be put aside.
Mr. Osei-Mensah 11:50 a.m.
Mr. Speaker, I think the point of order that the hon. Kofi Frimpong raised was in contradiction to what hon. Asaga said in relation to the energy sector. It is in the Budget so, Mr. Speaker, it would be very difficult for us to accept that that past he is referring to has no relevance to the current Budget, because he was talking of energy, concerning which those issues are in the current Budget.
So the past he was talking about is also relevant in the current Budget and one cannot prepare a Budget without looking at the past, the present and projecting into the future.
Mr. Second Deputy Speaker 11:50 a.m.
I have already indicated that the hon. Member
was referring to a period that he said there were queues for fuel, and hon. Asaga is saying that now we would want to look forward. So his assurance that there would be no queues is to look forward. I do not think there should be any quarrel at all about this.
Mr. A. S. K. Bagbin 11:50 a.m.
Mr. Speaker, it is important that we draw the attention of hon. Members to the fact that Parliament is not a Kejetia. Parliament is a serious debating Chamber of policies and issues. People must listen to the submissions and make meaningful interventions and not just try to disrupt, heckle to the extent of preventing an hon. Member from putting across his views. That is not helpful to the House. Our reputation is going down. People cannot just from time to time pop up and say anything.
It is not allowed in Parliament. Raise relevant issues; heckle when the person breaches the rules. If you disagree with somebody on an issue it is not a point of order; you note it until it is your turn then you put that across but you do not use that as point of order. Mr. Speaker, they are disrupting the smooth flow of debate on the floor and hon. Members should be cautioned about that.
Mr. Second Deputy Speaker noon
Hon. Minority Leader, I am in charge. And I rule as I hear presentations made. Hon. Minority Leader, I think it will be good to make this point at caucuses so that we can enrich our debates. But I am in charge; I am in full control and where there is a presentation that I find not useful, I rule on it.
Mr. A. O. Aidooh noon
Mr. Speaker, I thank you but I also think that it is important — Our hon. Colleague who just spoke must be told that he is not in charge of this House. He must know that
as Minority Leader, he is never in charge of this House, and he has no business questioning us.
Mr. Second Deputy Speaker noon
Hon. Deputy Majority Leader, I think I have made the point clear enough. So we should let the matter rest there. Please, let the matter rest there; I have made the point.
Mr. Bagbin noon
Mr. Speaker, I have never stated that I am in charge of this House. I can be in charge but not now -- [Uproar] -- Mr. Speaker, let it be known that Mr. Speaker himself was not, a few years ago, in charge of this House; he is now in charge of the House. So if I say I can be in charge of the House, I am not far from speaking the truth. Mr. Speaker, I am making my views known and it is important that we agree to disagree.
Mr. Second Deputy Speaker noon
Order! Order! Hon. Members, I did advise that in order that we have as many different shades of opinion as possible, hon. Members should be very relevant, condense their points so that within the limited time given, they can make their points very clearly. And I did advise -- [Interruptions] -- Order! There should be no talking at all. Please, the two sides should hold their horses.
I did say that it is important that unnecessary interruptions are not made and that only valid points of order should be made. And that is applicable to all hon. Members of the House. So we should not reduce it to arguments between the two sides. But I say that I am fully in charge
Dr. A. A. Osei noon
Mr. Speaker, I need to be guided. My senior hon. Colleague, when he was speaking, I think I agreed with some of the sentiments he expressed. But he made reference to the fact that “Parliament is not Kejetia”. Mr. Speaker, it is a very important statement and I hope he clarified it. Kejetia, to some of us, is a very important commercial centre of a region -- [Interruptions.]
Dr. A. A. Osei noon
Mr. Speaker, I hope that his statement was not meant to derogate the importance of Kejetia as a very important region of this country. And I need him to clarify that. It is very important.
Some hon. Members -- rose --
Mr. Second Deputy Speaker noon
Order! Order! Please, resume your seats and let us make progress. Hon. Minority Leader, Kejetia refers to a specific location in a specific part of the country. The hon. Member is taking exception to that reference. I think in the centre of disorder, you may wish to address that.
Mr. Bagbin noon
Mr. Speaker, he knows the rules of this House. We have Standing Orders in this House. They are not the same in Kejetia, which is a lorry station and a market square — the two are combined. And if you go to any “Kejitia”, because people are buying and negotiating and shouting for vehicles, there is a lot of noise. It is not the same for Parliament. That is what I am saying. I am not saying that Kejetia is not an important place but they have people calling for passengers, negotiating prices, and talking across.
Mr. Second Deputy Speaker noon
Order! Order! Hon. Minority Leader, you see when you mention -- [Interruptions.] -- Order! Order! Hon. Minority Leader, in order not to give a certain impression — When you mention Kejetia, it is located in a specific place, generally, that is the kind of protestation he is making. I am saying that its general application is not that well known. Kejetia which has assumed a specific place and that is what he is complaining about. And in order that you may not be misunderstood it is better that you get away from that kind of characterization.
Mr. Bagbin noon
Mr. Speaker, my emphasis is on noise-making. “Kejetia” is located at many portions of many cities -- [Interruptions.] Mr. Speaker --
Mr. Bagbin noon
Mr. Speaker, in my
regional capital, Wa, we have Kejetia -- [Hear! Hear!] In Kumasi, we have Kejetia. It is not located at one place -- [Interruptions.]
Mr. Bagbin noon
Mr. Speaker, so if my hon. Friend thinks that I am referring to Kejetia in Kumasi, no. I am not referring to Kejetia in Kumasi. I am referring to “Kejetia”, the concept all over the world, not Kejetia in Kumasi. And if he is offended by that, I definitely would apologise but I did not mean to offend any person.
Mr. Second Deputy Speaker noon
Hon. Deputy Minister for Finance and Economic Planning, you have heard his explanation.
Dr. A. A. Osei noon
Mr. Speaker, this is what I thought; it would have been better for him to have said a market place rather than make specific reference -- [Inter- ruptions.]
Dr. A. A. Osei noon
By his own principles, it would have made all of us a bit comfortable. But I accept his explanation.
Mr. Second Deputy Speaker noon
Very well. Let us make progress -- [Interruptions.] This matter is finished; no more on it.
Hon. Member for Nabdam, conclude your debate.
Mr. Asaga noon
Mr. Speaker, I was just talking about a forward looking economy and I was bringing very current issues -- [Interruption] -- I should not be mentioning them. Mr. Speaker, this is Financial Times dated 21st November and the headline here is talking about electricity outages in Ghana. Mr. Speaker, so we are talking about a current economy moving forward. Are they going to ask the Financial Times why they are talking about outages of electricity in Ghana because previously it also existed?
Mr. Second Deputy speaker 12:10 p.m.
Order!
Order! Hon. Asaga, are you talking to the House or to backbenchers? All hon. Members should listen; it is not only the backbenchers —
Mr. Asaga 12:10 p.m.
Mr. Speaker, I am very grateful that the Minister for Finance and Economic Planning, and most of the Cabinet Ministers are listening to me without interrupting; they are the policy makers and I think that I am in the right direction as far as my contribution is concerned. [Interruption.]
Mr. Kyei-Mensah-Bonsu 12:10 p.m.
Mr. Speaker, on a point of order. Mr. Speaker, the issue that was raised by the hon. Minority Leader -- he calls me, “the hon. Member on his feet” and he is not even prepared to yield his seat, and he continues talking. Mr. Speaker, this is the Kejetia experience he was talking about and we should tell him to tutor the man just behind him.
On a more serious note, Mr. Speaker, I believe the language is getting a bit overboard and the hon. Member on his feet should be cautious of his language. We are not kids here, and so if he is addressing the House, please he should do so with decorum.
Mr. Second Deputy speaker 12:10 p.m.
Hon. Member, hold on, I do not like this shooting up. Hon. Member, please resume your seat and be calm about it.
Mr. Isaac Asiamah 12:10 p.m.
Mr. Speaker, on a point of order. I think my hon. Colleague is seriously misleading this House. Mr. Speaker, backbench is a critical component of parliamentary democracy, and he knows it. There have been times backbenchers have found some Ministers unacceptable and they were just reshuffled. Therefore, he should withdraw. [Interruptions.]
Mr. Second Deputy Speaker 12:10 p.m.
Hon. Member, do not be worked up so much;
1823 Government's Financial 29 Nov. 2006 1825 Government's Financial 29 Nov. 2006
just take your time.
Mr. Asiamah 12:10 p.m.
Mr. Speaker, we are not here as kids, we are here representing our constituencies. We know why we are here; people are here representing 5,000 people; I am here representing over 10,000 people. [Interruptions.]
Mr. Second Deputy Speaker 12:10 p.m.
Order! Order! Hon. Member, you did hear me when I asked hon. Asaga whether he was addressing the House or backbenchers? That means I was showing concern for the expression he used. Let us remember that we are debating the Budget which is a very important business of this House.
The only thing I commented on in the Minority Leader's submission was that at the caucus - Minority and Majority Caucuses — Members should be impressed upon to conduct business in such a way that we can absorb the very useful ideas coming out of debates; and it would do this House a lot of good.
Generating too much heat is not the way out, and I would plead with hon. Members to first of all watch what we say that may affect the sensibility of Members, and also the manner in which we intervene. I have said that we need to minimize interventions that are not really points of order to enable our hon. Colleagues to bring out their points to enrich the debate from all sides.
So I hope that we can proceed from now, in peace and in quiet, so that the Budget can be thoroughly debated before we wind up. Hon. Asaga, in fact, I have taken note of the intervention but you have far shot over your time, so just try and wind up.
Mr. Asaga 12:10 p.m.
Mr. Speaker, in winding up, I want to discuss the fact that, even though the Government is trying to come out with a solution to the energy sector, most of them are medium-term to long-
Mr. Second Deputy Speaker 12:10 p.m.
Hon. Asaga, do not make a forecast.
Mr. Asaga 12:10 p.m.
Mr. Speaker, let me assist the presidential aspirants. If they want the recommendations, they should come and see the hon. Ranking Member for Energy. Mr. Speaker, I thought that we needed to look at all these issues in a more pragmatic manner. Mr. Speaker, I have just read in the Economist of last week, that Government is trying to get what we call a transaction advisor to advise Government on the expansion of the capacity of the Tema Oil Refinery from forty-five thousand to one hundred and forty-five thousand.
Again, the transaction advisor is likely to also advise Government on how to bring a strategic investor to take up a stake in Tema Oil Refinery. My advice is that this is a critical area, we must take our time to do things and discuss with everybody, because we should not fall into the problem of Volta Aluminium Company Limited (VALCO), where we were promised heaven and earth by our partners.
I will quote the VALCO one. It is in the Budget that VALCO is supposed to invest $3.7 billion over four years — and this was the 2006 Budget. VALCO is supposed to
invest $3.7 billion over four years and to increase the GDP of Ghana by 3 per cent and then to employ 6,000 workers in the company. This did not happen in 2006. Now in the 2007 Budget, no mention is made again of this investment, so it is like stillborn and that is why I am saying that let us be very careful of what we put in the Budget, trying to create optimism which may not exist.
Mr. Speaker, before I wind up or conclude, I think that my reaction to the backbench was not appropriate; maybe I should have been very specific on hon. Frimpong. Mr. Speaker, there are always Cabinet reshuffles. I believe that hon. J. H. Mensah is no longer a Senior Minister; I believe that with hon. Hackman Owusu-Agyemang, there was a transfer of portfolio; I believe that hon. Nana Akomea was dropped as Minister for Information; hon. Osafo-Marfo was transferred from Ministry of Finance and Economic Planning to Ministry of Education and Sports.
I do not think that in any instance, when they were making contributions, we derogatorily told them that they did not have their facts because of the transfer. I think that he needs to apologize to me because that was very offensive. What I am doing is resourceful; my knowledge in finance is still intact. Therefore, my hon. Colleagues should not use the transfer to mean incompetence; a reshuffle does not mean incompetence.
Dr. Kofi Konadu Apraku 12:10 p.m.
None

Some hon. Members -- rose --
Mr. Speaker 12:10 p.m.
Order! Order! Hon. Members, do not forget that I have a list, I would come to you next.
Dr. K. K. Apraku (NPP - Offinso North) 12:20 p.m.
Mr. Speaker, with your permission, I would like to contribute to the motion on the floor. In other words, I would like to support the motion.
Mr. Speaker, we have listened for the last two days to the debate on the Budget, the major presentation made by my hon. respected Friend, Dr. Benjamin Kunbuor of the Lawra/Nandom constituency. I know what it means to be in that seat; we have been there before. And in the past, Mr. Speaker, when the Budget had been presented to us, we tended to characterize the Budget. In some instances, we said it was a startled school budget, for a very good reason.
In other instances we said it was a lame duck budget for a very good reason that we went ahead to justify and to convince Ghanaians indeed to believe that the budgets deserved the characterization that we had given them. Unfortunately, our hon. Colleagues have learned that habit, and with all respect, have learned it badly.
When this Budget was presented, before they could even have the opportunity to look seriously at it they characterized it as an Awam Budget. And today, I have taken that responsibility to show them why this cannot be an Awam Budget.
Yesterday, my good Friend tried to find a lot of faults with this Budget, he could not. The sad thing is that my other good Friend with whom we have been very close in the past was in the same hot seat. He was charged to find faults with the previous Budgets that we had presented.
rose
Mr. Second Deputy Speaker 12:20 p.m.
Yes, hon. Minority Leader, a point of order?
Mr. Bagbin 12:20 p.m.
Yes, Mr. Speaker, a point of order and it is on the statement made by hon. Dr. Apraku that hon. Moses Asaga was reshuffled because he could not find faults with the Budgets that were presented in previous years.
Mr. Speaker, that is definitely untrue. I do not believe he was reshuffled from the Ministry of Regional Integration because he could not handle that Ministry, or he could not perform. Neither was he reshuffled from the Ministry of Trade and Industry because of incompetence. Mr. Speaker, he knows there are very good reasons why people are moved around and he should not try to misinform the general public about this issue of reshuffle which they have also done.
So I do not know why they are trying to hang on that. Mr. Speaker, that is rather infusing bad blood into the debate and we should desist from doing that.
Mr. Second Deputy Speaker 12:20 p.m.
Hon. Minority Leader, when hon. Asaga indicated that he had given him some advice I did say that it seems there is some
special relationship between the two of them which they are invoking from time to time. Maybe, you are getting into their close relationship. But that is all right. It is left for the hon. Dr. Apraku to respond - between him and his Friend.
Dr. Apraku 12:20 p.m.
Mr. Speaker, I respect the hon. Minority Leader and I will stay away from those types of statements. But let me now get to the facts. Mr. Speaker, this Budget is a very visionary Budget — very hopeful, very inspiring. It is a forward-looking Budget. And indeed, if you look at the information that it presents, if you look at the past that is being built upon, there is no doubt that indeed it is a credible Budget, and I want to look at some of the issues that this Budget seeks to accomplish.
Mr. Speaker, there can be no doubt that this Budget is building a solid foundation for a very prosperous future for all of us. What does it take for us to develop? If you look at education, look at the massive investments that we have made in the educational sector over the last few years -- People just like to cite the Capitation Grant, the NEPAD School Feeding Programme that is now called the Ghana School Feeding Programme.
But honestly, look at the amount of infrastructural improvements that are taking place in the educational sector, solid foundation that is being built there for the future. If you live in a village like mine, a small town like mine, where you have to come back from school and go and fetch water, and after that come and cook your food and eat it and go back to school, you would know what it means to have the School Feeding Programme that allows poor - [Interruptions] - Please, it is a foundation we are building upon. When the pilot programme was undertaken — [Interruption.]
Mr. Abdul-Rashid Pelpuo 12:20 p.m.
Mr. Speaker, I rise on a point of order because
Mr. Second Deputy Speaker 12:20 p.m.
Order! You are totally out of order. If he thinks that he is laying solid foundation and you think it is not, when it comes to your turn you say so.
Dr. Apraku 12:20 p.m.
Thank you, Mr. Speaker. Some of my hon. Colleagues, when they do go back, I would like them to go and visit their schools and talk to the children - [Interruption.]
Mr. Second Deputy Speaker 12:20 p.m.
Hon. Dr. Apraku, please go on with your contribution.
Dr. Apraku 12:20 p.m.
Mr. Speaker, what I am saying is that the School Feeding Programme started out with a pilot programme of only 5,000 kids. Today, in my constituency alone we are feeding over 10,000 and the programme is designed to be built up over the years such that in three years - [Interruptions.]
Mr. E. K. Salia 12:20 p.m.
Mr. Speaker, this is my very hon. Friend. I think I was not trying to stop him but he is misinforming this House and misleading everybody. The School Feeding Programme, I agree has started. They are feeding students from only two schools in every district. He must be misinforming the public if he says that as a result of that programme they are feeding 10,000 pupils in his constituency alone. That cannot be true; it must be false. There is no school in this country with at least 5,000 pupils. Otherwise, he must tell us the truth that there is some discrimination going on throughout the
Mr. Second Deputy Speaker 12:20 p.m.
That is all right, you have made the point. Hon. Member for Offinso North, they are saying that you have given an impossible figure, please react.
Dr. Apraku 12:20 p.m.
Mr. Speaker, I am not going to allow myself to be bogged down with the numbers -- [Uproar.]
Mr. Second Deputy Speaker 12:20 p.m.
Order!
Dr. Apraku 12:20 p.m.
Mr. Speaker, let me give you the facts as they stand. They are already in the Budget, and what I am saying is that today we are giving hope to people who otherwise would not even have a decent meal a day; we have given that hope to them. We have given hope to people who are sick without adequate nutritional base, nutrients in their food - [Interruption.]
Mr. J. K. Gidisu 12:20 p.m.
Mr. Speaker, if my hon. Colleague is unable to give figures I will help him with the figures from their own Budget. Mr. Speaker, if you refer to paragraph 677 of page 152 of the 2007 Budget, the School Feeding Programme is targeting 92,000 pupils for the whole of the 2007. And if he as the Minister from whose desk the programme emanated is taking 10,000 from his constituency alone — then one can see the politically biased way the programme is being run.
Mr. Speaker, it is on record that last week the Regional Minister for the Upper West Region was in conflict on this same school feeding programme, which has been politicized throughout the country, and in the Upper West Region in particular. And a typical example of the politicization is coming from the former Minister for NEPAD who initiated this project. So
Mr. Second Deputy Speaker 12:20 p.m.
Hon. Member for Offinso North, your figure is generating this kind of — so you may wish to look at it.
Dr. Apraku 12:30 p.m.
Mr. Speaker, if my figure is of such interest I will come back to the House -- [Uproar.]
Dr. Apraku 12:30 p.m.
Mr. Speaker, let me get on with the facts. So I talked about the fact that, Mr. Speaker, we have made massive investments in infrastructural develop-ment. Today, we are operating a competitive global economy. While business will succeed, they have to be given all the incentives to be competitive.
The massive infrastructural work that we have made in the past and we have continued to build on -- everywhere in this country. The roads are there for people to see -- [Some hon. Members: Old roads] -- It is creating such a competitive position for our businesses. There can be nothing like Awam about it. I am sure they are driving on these beautiful roads that have been made and they know what it means to this economy. [Laughter.]
Mr. Speaker, education — As I was saying, today, we are building Ghana as a centre of excellence for education. Even in the whole West African sub-region, there is no country that is attracting students from any other country than this country. More students are coming from everywhere else because of the quality that we have injected into education and
the infrastructure that we have developed; we are attracting a lot of other people. Similarly, look at the investments that we are making in health -- Go to 37 Military Hospital and see the equipment that we have brought in there; go to Korle- Bu and see the investments.
Yesterday, the Vice-President cut the sod for a $45 million neurosurgical building to be constructed and equipped with the most modern equipment -- [Some hon. Members: At where?] -- Korle Bu, yesterday — $45 million. That is a massive investment, never before seen in this country or any part in West Africa.
Dr. Kunbuor 12:30 p.m.
On a point of order. Mr. Speaker, I think my hon. Colleague is really misleading this country. We know the history of sod cutting in this country. How can the process of sod cutting be an investment? [Laughter.] We have seen sod cut three times on the same project and the project has not taken off. So he should not mislead the House that the cutting of a sod is a massive investment. [Uproar.]
Mr. Second Deputy Speaker 12:30 p.m.
Hon. Member for Lawra/Nandom, you have no point of order at all. [Laughter.]
Dr. Apraku 12:30 p.m.
Mr. Speaker, I am sure
Mr. Second Deputy Speaker 12:30 p.m.
Hon. Member, leave that -- [Interruption.]
Dr. Apraku 12:30 p.m.
Mr. Speaker, but let me give you the facts. [Interruption.] --
Dr. Apraku 12:30 p.m.
Sit down! Please, listen and you will know the progress we are making in this country.
Mr. Second Deputy Speaker 12:30 p.m.
Hon. Member for Jomoro, do you have a point of order?
Mr. Ocran 12:30 p.m.
On a point of order. Mr. Speaker, my hon. Friend is talking about Neurosurgery Department being established. But this is the normal thing with Government. They came to meet cardiotherapy, they came to meet radiology, they came to meet this -- so if they have something doing, what is the problem? [Laughter.]
Mr. Second Deputy Speaker 12:30 p.m.
Hon. Members, order! It seems you are not taking the advice, that let us leave out reminders that are not really pertinent and let hon. Members give their contributions so that many more can get their chance.
Dr. Apraku 12:30 p.m.
Mr. Speaker, in many instances some of these projects are new; in other instances we are building on what others have accomplished. It cannot be the case that everything that we do is new. We are building on the foundation that has been laid in this country since 1957, including the era of the PNDC/ NDC. My job today is to illustrate to you that the Budget that we have, whether we are building on your achievements or statue, if you want, are credible — credible programmes, solid, much well-thought- out programmes that will help transform this country; and the evidence is there. If you just allow me I will show it to you.
Mr. A. S. K. Bagbin 12:30 p.m.
On a point of order. Mr. Speaker, I will totally agree with my hon. Colleague, Dr. Apraku, if he can tell us in this Budget where the Neurosurgery Block has been captured because the Neurosurgery Block is a private sector initiative supported by the Canadian Government and they are still sourcing for more funds. It has not yet been captured by this Budget and we are debating this Budget so why is he bringing that in and say that it has been captured -- [Uproar] -- Mr. Speaker, I am totally in
the know about that centre because I am in touch with the doctors who are syndicating the project, and I know what it involves. It is not an initiative of this Government.
Dr. Apraku 12:30 p.m.
Mr. Speaker, that initiative did not start during the 20 years era of the PNDC/ NDC. [Uproar.] It has to have some good reasons for coming now. [Laughter.] Mr. Speaker, yesterday -- I could recite the macroeconomic achievements but I do not want to bore anybody. I also believe that economic growth alone is not sufficient condition for economic development to take place. It is the solid foundation that we make — But let me also state that something more significant is happening in our country.
Mr. Sallas-Mensah 12:30 p.m.
Mr. Speaker, he is an ordinary Member of this House. He is not a Chairman of a Committee; he is not an hon. Minister and he has spoken for more than twenty minutes now. He is completely out of order. [Laughter.]
Mr. Second Deputy Speaker 12:30 p.m.
Hon. Member, you are out of order. The Speaker has eagle eyes on his watch and takes notes of interventions. Please, hon. Apraku, go on.
rose
Mr. Second Deputy Speaker 12:30 p.m.
Please, hon. Dr. Apraku, go on. I have not stopped you.
Dr. Apraku 12:30 p.m.
Mr. Speaker, thank you. They are delaying me and they think I am spending time. [Laughter.] Mr. Speaker, if we did not notice anything at all in this Budget, by the economic policy that has been presented to us, we ought to be honest enough to acknowledge that something fundamental is taking place in our country. You look at the structure of the Ghanaian economy over nearly the last fifty years. There has not been any change at all.
Mr. Asaga 12:30 p.m.
Mr. Speaker, the point of orders are two. The first one is that hon. Dr. Apraku is a presidential candidate so he cannot be ordinary, as he was attributing to himself — [Laughter] -- And the second one is that there have been structural changes in the economy and there have been developments and every government comes to build upon what was already existing. So he should be able to acknowledge that with humility.
Mr. Second Deputy Speaker 12:30 p.m.
Hon. Member, I do not really see the points of order here. Please, resume your seat. He has made it clear that no one can start new things all the time, you have to build on and that is what the Directive Principles of State Policy also says. So he has just acknowledged it; so you have no quarrel with him, do you? So hon. Dr. Apraku, please go on.
rose
Mr. Second Deputy Speaker 12:30 p.m.
Let us hear the Majority Chief Whip.
Mr. Kyei-Mensah-Bonsu 12:30 p.m.
Mr. Speaker, if an hon. Member intervenes on a point on any issue, whether to seek clarification or to correct something, it is a point of order; several of such are points of order, not point of orders -- [Interruptions.]
Dr. Apraku 12:30 p.m.
Mr. Speaker, the fundamental change that we have made in modest -- just in modest, I do not want to be misinterpreted or misunderstood. Just a modest foundation is being laid for structural transformation to take place in this country. The industrial sector, the weight of growth over the last three, four years is very good. You look at the service sector, it is growing at a rate that
is acceptable. You look at the agricultural sector, it is coming down. That is what we mean by structural transformation taking place. What we need to do is to support it with the basic infrastructure that I alluded to earlier.
Dr. Kunbuor 12:40 p.m.
Mr. Speaker, I guess that my hon. Colleague is misleading the House. Yesterday, when I was making my point and we raised the same issue about electricity and water, he rose on a point of order to say that the weight that we placed on that sub-sector was not sufficiently significant to begin to change the structure of the economy. That was his point of order yesterday.
Mr. Speaker, three, two years, I believe, from even elementary economics are not indicative of a shift in the structure of an economy. I think that is an overstatement, if we understand what the structure of an economy really is. Two, three years improvement on a sub-sector cannot qualify as an indicator of a structural change in the economy.
Mr. Second Deputy Speaker 12:40 p.m.
I really do not see your point of order. You may go on, hon. Member for Offinso North.
Dr. Apraku 12:40 p.m.
Thank you, Mr. Speaker, and I am not going to comment on that. What it is, is that it is real. The economic indicators are pointing to a country that has laid a foundation for an economic take- off to take place. The era of unrealistic, unattainable targets that were brought to this House is over. When we bring targets here, we intend to accomplish them, and
we have accomplished them. Let me cite some statistics for you to see, Mr. Speaker; let me tell you.
Mr. Pele Abuga 12:40 p.m.
Mr. Speaker, on a point of order. When the hon. Member for Nabdam was debating this Budget, he indicated a section of the Budget which was an objective that was set in the Budget but was not realized. Mr. Speaker, again, at page 339 of the 2006 Budget, it was stated that every district would have an industrial take-off. Mr. Speaker, as we sit today, the hon. Member cannot tell us even one which has taken off. Mr. Speaker, the Budget is replete with many unattainable objectives and targets so I am surprised the Member is saying this.
Mr. Second Deputy Speaker 12:40 p.m.
Order! Order! Hon. Member for Offinso North, please go on. He is challenging the fact that promises are fulfilled, so you may address it.
Dr. Apraku 12:40 p.m.
Mr. Speaker, no Budget can meet all the targets - [Interruptions.]
Dr. Apraku 12:40 p.m.
But there are some very fundamental macro-economic targets that are set and after due reflection, critical analysis must go into those. They are targets such as the Gross Domestic Product (GDP) growth rate, the inflation rate, interest rates and the exchange rates. Those are set with realistic statistical computation. So when you set them there is a good chance that you can accomplish
Dr. Kunbuor 12:40 p.m.
On a point of order. Mr. Speaker, I guess my hon. Good Friend is grossly misleading this House. Let us go to page 23, Table 1 and begin to see the number of targets that have not been reached. Agriculture - the total sector, 2006 target of 6.2, the project outturn is 5.7. Is that a target that has been achieved? Let us go to the crops sub-sector - 6.2, outturn - 6; is that a target that has been achieved? Let us go to the cocoa sector - 12; outturn, 8.7 - [Interruptions] - Mr. Speaker, the hon. Member should stop misleading this House - [Interruptions.]
Mr. Second Deputy Speaker 12:40 p.m.
Order! Order! Hon. Member for Lawra/Nandom, it is always important to listen to a person making a presentation fully so that when you hear him in totality you are more able to deal with the issues he has raised. At the time you stood up he had made a point that you cannot expect every aspect of the Budget to be achieved and that you should look at certain basic and fundamental factors. He mentioned the macro and micro-economic factors.
So if you had listened, you would have taken it on board. You are referring to agriculture and all that, but he had qualified what he was saying. Please go on, hon. Member for Offinso North.
Dr. Apraku 12:40 p.m.
Mr. Speaker, you are such a good Speaker - [Laughter.] I was going to recite all these statistics but I know they know, especially my good Friend, hon. Asaga - he was feeding us with things he knew he could not accomplish. He
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1845 Government's Financial 29 Nov. 2006
ought to remember them. We come here, we are going to be realistic; we are going to be practical; we are going to achieve the targets that we have set. All you need to do is be patient because you are going to be there for a very long time. They should be patient sitting there, like we were sitting there. If they make credible alternatives, well.
Mr. Moses Asaga 12:40 p.m.
On a point of order. Mr. Speaker, I think my hon. Colleague has already forgotten that he used to sit here, and I am probably just sitting about where he used to be; and he used to tell us that he had the solution but he would not tell us - [Laughter] - that is one. So for him to now say that nothing is incorporated - Mr. Speaker, I know that the Deputy Minister for Finance and Economic Planning would not comment, and I would not comment because we know that we know each other. I think he agrees with me that we know each other.
Dr. A. A. Osei 12:40 p.m.
Mr. Speaker, I do not know what hon. Asaga is talking about -- [Interruption] - He is contributing to my Senior Colleague's comments. If we go and sit somewhere to have a beer, that has nothing to do with the Budget - [Interruptions.]
Mr. Second Deputy Speaker 12:40 p.m.
Order! Order! The implication is that he does make useful suggestions to your Ministry.
Dr. A. A. Osei 12:40 p.m.
Oh yes, Mr. Speaker. As for that, he does all the time, not only because of the Budget. That is why
Mr. Second Deputy Speaker 12:40 p.m.
Order! Hon. Members, let us make progress. Hon. Member for Offinso North, can you wind up?
Dr. Apraku 12:40 p.m.
Mr. Speaker, I want to wind up. I am not going to pretend, Mr. Speaker, that this Budget will solve all the problems of this country. There are still weaknesses - [Interruptions.] Please, listen. Our agricultural sector, Mr. Speaker, is still weak; we need to develop more irrigation facilities to complement the rain-fed agriculture that has resulted in low productivity. But this Budget is addressing that with the Millennium Challenge Account. We are going to invest more in irrigation that has perhaps never been invested in our country before.
The energy crisis, yes, is not helping industry and I agree completely with hon. Asaga that, it is not a problem that came overnight; it has been building up over the years and we ought to have acted earlier than now. You ought to have acted just us much as we ought to have acted earlier - [Interruptions] - Please listen.
We are just at fault as you were at fault. Perhaps, for a much longer period, you dealt with the problem; you did not solve it. We have made plans to do the irrigation projects that have been incorporated in the Millennium Challenge facility that we are getting. We are investing in the Bui Dam. You said that you started it, you did this, you did that, but it is going to come into fruition during the period of our governance --
Mr. Asaga 12:50 p.m.
On a point of information.
Mr. Speaker, I will just limit the point of information to the energy sector. Between 1997 and 1998 when there was the energy crisis, we built the Aboadze Thermal Plant which is producing 330 megawatts. So in terms of adding additional thermal capacity, we added that thermal capacity.
Mr. Second Deputy Speaker 12:50 p.m.
Hon. Member for Offinso North, please, go ahead. He is giving you information that they did make some effort.
Dr. Apraku 12:50 p.m.
Mr. Speaker, I have no
Dr. A. A. Osei 12:50 p.m.
On a point of information. Mr. Speaker, my good Friend said that they built the Aboadze Thermal Plant which is producing 330 megawatts. Mr. Speaker, it has a capacity of 330 megawatts but it is not producing 330 megawatts. There is a difference.
Mr. Second Deputy Speaker 12:50 p.m.
Hon. Member for Offinso North, please, conclude.
Dr. Apraku 12:50 p.m.
Mr. Speaker, as I wind up, let me also say that we could do a lot better with the business community. There are a lot of businesses having all kinds of difficulties accessing funds. But again, if you look at this Budget, we are addressing that problem. More credit is being made available as the Government itself reduces the amount of resources that it takes from the banking sector, allowing more loanable funds to be made available to the business community.
Mr. Speaker, we are establishing the Venture Capital Fund, we are establishing the Micro-Credit Fund; these are all going to address the problems. They may not solve the problems but they are going to make it “down payment” in solving the problems. Mr. Speaker, what I want
to establish here is that where there are problems, we are confronting them; where there have been successes, we are building on them. This cannot be an awam Budget; it is a forward-looking Budget. We need them to support it so that all of us will be beneficiaries of the good works of this Government.
Thank you, Mr. Speaker.
Mr. J. K. Avedzi (NDC -- Ketu North) 12:50 p.m.
Mr. Speaker, thank you for the opportunity to contribute to the debate on the Budget Statement and the Economic Policy of the Government of Ghana for the 2007 financial year.
Mr. Speaker, this document which I am holding here, which is the Budget Statement, is a very important document and we expect that all information that is contained in this document should be accurate. The hon. Minister for Finance and Economic Planning in his presentation claimed that there was available information that indicated that provisional projections for real GDP growth based on actual data through September, 2006 is 6.2 per cent.
Dr. A. A. Osei 12:50 p.m.
On a point of order. Mr.
Speaker, I hate to do this but I must. Any good student of economics would have
1843 Government's Financial 29 Nov. 2006
told him that we do not add agriculture, industry and services to get the number he is looking for. Simple national income accounting would have told him that there is a residual number that is added to it. If he does not know that, he should not mislead this august House.
The numbers are not supposed to add up the way he has presented it to this House. If he wishes, I will give him a text- book on principles of economics and he will find the answer. But coming to this House to make this type of argument, gives a wrong impression of Members of this House, as if we do not know what we are doing.
Mr. Speaker, it is important that if we are going to debate, at least we debate on the facts. We are not playing to the gallery. If he does not know, he should not come to mislead the House. The public is listening to the debate.
Mr. Second Deputy Speaker 12:50 p.m.
Hon. Deputy Minister, you have made a point. Yes, hon. Member, please, continue with your contribution, but his point of order is that you are misleading the House by arriving at the GDP growth by adding those figures the way you did. Please, take that on board and continue.
Mr. Avedzi 12:50 p.m.
Mr. Speaker, thank you. Mr. Speaker, I am not misleading the House. I am saying that if you add the three sectors, the contribution from each sector put together gives you a total of 5.9 per cent. If there is a residual factor which is not included in this document, then the document is misleading all of us. We want him to prove that residual factor.
Dr. A. A. Osei 12:50 p.m.
On a point of order. Mr. Speaker, I think that my senior Colleague has told us about how we must conduct ourselves in this House. I do not want to try to lecture him on economics.
Mr. Speaker, any serious person who understands any economics knows that estimating GDP from the production side involves additional element aside the individual sectoral components. I do not want to spend time to threaten that I can lecture him.
But Mr. Speaker, I think it is in the interest of this House that when hon. Members speak on certain subjects that they are not comfortable with, they should admit so. A first year student in the University of Ghana, Legon will teach him that. I do not want to do that in this House. Mr. Speaker, he should just withdraw that statement.
Mr. Second Deputy Speaker 12:50 p.m.
Hon. Member for Ketu North, please, go ahead.
Mr. Avedzi 12:50 p.m.
Mr. Speaker, for the fact
Alhaji Sumani Abukari 12:50 p.m.
On a point of order. Mr. Speaker, I think that the language of the hon. Deputy Minister for Finance and Economic Planning is not proper and so he should be called to order. In fact, saying that a first year university economics student can lecture him, is not the right thing to say. Mr. Speaker, we must be as decorous as possible when we are addressing each other. This document is a Budget of the Republic of Ghana and not an economic document. It is not meant for economists. The man on the street should be able to read and understand it. So we should not talk about economics students lecturing -- It is not fair. I think he ought to withdraw that statement and apologise to my hon. Colleague.
Mr. Second Deputy Speaker 12:50 p.m.
Hon. Member for Central Tongu, are you going to raise a point on the same issue?
Mr. J. K. Gidisu 12:50 p.m.
Yes, Mr.Speaker. And Mr. Speaker, my hon. Colleague who is contributing to the debate is a Chartered Accountant and it is the more reason why he should be able to know that he is speaking with a professional background.
Mr. Second Deputy Speaker 12:50 p.m.
Hon. Members, I was keenly listening to the Deputy Minister for Finance and Economic Planning and following very critically to see whether any derogatory remarks were being made. He was stressing on the fact that certain things were basic and he kept saying that any good economist should know that.
Then he also referred to the university, that a first year will know certain basic things. To him, the issue of arriving at GDP growth rate was basic and he thought the hon. Member for Ketu North was missing that point and he kept on stressing it. I had not seen him dangerously straying into the area of derogation. I have not seen it yet.
Dr. A. A. Osei 12:50 p.m.
Mr. Speaker, I was not moving into the area of derogation. I was suggesting that if the hon. Member was not aware of how to arrive at it, he should not come to the House and say “I have added up and it does not add up” and therefore we are misleading them. I was just giving him the benefit of the doubt that that was not how we add up -- [Interruption.] I should have left it there but he got up again and said I should show him, which suggested that he did not understand what I was saying.
Mr. Second Deputy Speaker 12:50 p.m.
Hon. Member for Ketu North, please, go on.
The point that is being made is that you do not arrive at the GDP growth rate by adding those sectoral things the way it was done. If further clarification is required, that is another matter. But can you please go on with the substance of your debate so that your attention is not distracted from this, please.
Mr. Avedzi 12:50 p.m.
Mr. Speaker, I think I made a simple request, that what is in this document cannot verify the figure that they are quoting. If he is having a hidden figure, that is the figure we want him to provide. This is because this document is not meant for only Members of Parliament here in Ghana; it is a document that goes for the whole world to verify. Therefore if there is any information in the document that cannot be substantiated by the figures that we quote, he should provide those residual figures. That is what I am asking for.
Mr. Second Deputy Speaker 1 p.m.
Hon. Deputy Minister, what he is simply saying is that to him he should add these figures to get your 6.2 and that you should now let him know what he should add to get the GDP growth rate that has been set.
Dr. A. A. Osei 1 p.m.
Mr. Speaker, this is precisely why I did not want to go into details. I have been told that I am not a professional chartered accountant; I have just been told that. Mr. Speaker, look at all the previous Budgets that we have seen in the last years. This is how they have been presented. Mr. Speaker, he is still going on the fact that because he does not know that you do not have to add it that way I should substantiate and I said I am willing to do that but not in this Chamber. That is why I said I am not here to lecture him but I want him to know and I want hon. Members to know that you do not add up. That is the point I am making.
Mr. Second Deputy Speaker 1 p.m.
Well, hon. Member, please go on with your contribution.
Mr. Avedzi 1 p.m.
Thank you, Mr. Speaker. Mr. Speaker, I believe the Deputy Minister is just trying to dodge the question. If I ask this question it does not mean that I cannot calculate the GDP growth. I am representing the people of Ketu North and the people of Ketu North must read this document and understand; and I am asking the question on behalf of my people and probably the rest of the people of Ghana. So asking the question does not mean I do not know how to calculate; or even if I know, we are asking somebody who is the Minister and who has presented this document to us, to prove. This is what I am asking for.
Mr. Second Deputy Speaker 1 p.m.
Hon. Member for Ketu North, from what you are saying, it means that you understand that these figures are not added that way, but you are only speaking for the benefit of those who may not know. Do I get you clearly?
Mr. Avedzi 1 p.m.
Mr. Speaker, there is a residual figure which we do not know and that is what I want him to provide.
Mr. Second Deputy Speaker 1 p.m.
Hon. Deputy Minister for Finance and Economic Planning, are you - [Interruption.]
Dr. A. A. Osei 1 p.m.
Mr. Speaker, for the sake of the people of Ketu North, I would be willing for him to be with me so that I will give him an opportunity to explain it
Mr. Second Deputy Speaker 1 p.m.
Is it something that you cannot provide?
Dr. A. A. Osei 1 p.m.
Mr. Speaker, I think for the sake of this House, since he is requesting it and it is so important to him, I want to give him a special treatment; so I would be willing to do that for the sake of his people - [Interruption.]
Mr. Second Deputy Speaker 1 p.m.
Well, if he needs to do it in a manner that he cannot do immediately, but he is assuring that that is not the way, let us go on. Let us go on, you can get the information.
Mr. Alfred K. Agbesi 1 p.m.
On a point of order. The hon. Deputy Minister rose on a point of order and his point was that what the hon. Member was saying, any first year student in economics would know. Mr. Speaker, that was exactly what he stated. The hon. Member is demanding that what is the residual figure which if added to the figures he has brought before this House will arrive at the figure of 6.2. It is not only for the people of Ketu North, it is for the people of this country who are using this document which he has produced.
Mr. Speaker, he appears to be a lecturer in economics and for that matter if he is asked to produce any figure which is not in this document he must do it. He cannot say that the hon. Member must go back and meet him somewhere in a corner for him to give that figure. He must produce it. Mr. Speaker, I am not a student of economics but I am in this House and I have been given this document; I must understand it. And so if he has a figure which he is hiding somewhere, Mr. Speaker, it is only fair and proper that he brings that figure out. It is wrong for him to say that the hon. Member should meet him somewhere.
We are 230 people who are here and we have been given this document. This document is what we are using. Where is
the residual figure and why is he hiding it? They say your figures are wrong. If you have them, bring them; if not, he should withdraw his statement.
Mr. Second Deputy Speaker 1 p.m.
Hon. Member for Ashaiman, I am taking it that it is not just the question of this is the figure; I think it is a process and so in his mind it is not something he can get on the floor of the House and provide it. It is a process and he has agreed that he can make the information available. I do not think that we should drag this debate back. We should allow hon. James Avedzi to go on with his contribution, with the understanding that details of the computation would be made available.
Dr. A. A. Osei 1 p.m.
Mr. Speaker, my senior Colleague is also the Member of Parliament for a neighbourhood close to my house; so I respect him very much. But to get up in this House and tell us that I appear to be a lecturer in economics, I find it very offensive.
I do not appear to be a lecturer of economics and I was not elected because of my achievement in economics. My people did not vote me here because I have a doctorate in economics. So I want him to be careful when he uses language like “he appears”. It is very improper. After all I have three degrees in economics and he is telling me “I appear”. He appears to be a lawyer; is he a lawyer? Mr. Speaker, I find that very offensive. It is not a forum for exchanges.
Mr. Second Deputy Speaker 1 p.m.
Hon. Deputy Minister, you were making a very good complaint but you have spoilt it by also falling foul of the way he presented his case. Hon. Avedzi, please go on.
Mr. Avedzi 1 p.m.
Mr. Speaker, we hope that the Minister will provide the information for all of us.
Mr. Speaker, I would like to move to another area, that is the receipts in the
Budget. If you look at the 2006 Budget figures reproduced in the 2007 Budget, out of ¢41,357.1 billion that represented about 95.1 per cent of the budgeted figure, an amount of ¢14,185.8 billion came from donors, loans and domestic borrowing.
Mr. Speaker, the Budget of a country whose GDP is claimed to be growing consistently is being financed about 40 per cent by world donors and philanthropists. Mr. Speaker, it is time we thought of doing something about generating revenue that can sustain the economy rather than depending on foreign donors and loans to finance our Budget.
Mr. Simon Osei-Mensah 1 p.m.
Yes, Mr. Speaker. Mr. Speaker, my own Friend, hon. James Avedzi made a statement which needs to be corrected. Mr. Speaker, he is misleading himself and the general public. Mr. Speaker, he said that with a Budget that has foreign support or donor support of about 40 per cent the economy cannot grow by the rate that we are talking about.
Mr. Speaker, this is highly misleading, in the sense that the sources of funding of the various sectoral activities do not determine the growth rate. Rather it is how the money that we receive to fund
1851 Government's Financial 29 Nov. 2006 1853 Government's Financial 29 Nov. 2006
projects is used to grow the nation which determines it. So the sources should not be used, to say that because of that we cannot achieve that sustainable growth that we are having in this country.
Mr. Second Deputy Speaker 1:10 p.m.
Hon. Member, you disagree with him; I do not know whether you have spoken already. When it comes to your turn you can make your points as strongly as possible. Let him continue. But let us hear from the Deputy Minister for Finance and Economic Planning, Prof. Gyan-Baffour.
Prof. Gyan-Baffour 1:10 p.m.
Mr. Speaker, I had wanted to let this go, but it looks like the other side is always confused about government expenditure - [Inter- ruptions.]
Mr. Second Deputy Speaker 1:10 p.m.
Order! Hear him first. Order! Order! [Uproar.] Let us hear what he is saying first before you react. Resume your seat!
Prof. Gyan-Baffour 1:10 p.m.
Mr. Speaker, when we are talking about the Budget of this country, we have two components of the Budget — the statutory expenditures and the discretionary expenditures. When you add them altogether, then you get the total Budget. The total Budget for this country for 2007 is ¢54 trillion. But of that, ¢8.9 trillion is coming in from outside, as grants, and then ¢5 trillion from outside as loans. When you put them together, it comes to ¢14.9 trillion. ¢14.9 out of the total of ¢54 trillion is actually 27 per cent and not 40 per cent that they have been talking about. [Hear! Hear!]
That 40 per cent is the discretionary component and the percentage of foreign inflows as a percentage of the dis- cretionary expenditure. So they should take it on board that we are not only
dealing with discretionary expenditure, but we have statutory expenses also that we have been able to constitute into the totality of the Budget.
Mr. Second Deputy Speaker 1:10 p.m.
Hon. Deputy Minister for Finance and Economy Planning, I think the problem that what you said raises is the lumping of the whole side as being confused about this. There may be individuals there, so that is what you should correct. The information you have given, I am sure, is very useful but I am saying that you should correct the lumping of the whole side as being confused.
Prof. Gyan-Baffour 1:10 p.m.
Oh, I am sorry. You know, the reason why I said that was that this was repeated yesterday and it is coming back today. I am very sorry for saying that; I should not have said that anyway. Thank you very much, Mr. Speaker.
Mr. Second Deputy Speaker 1:10 p.m.
Very well, that settles it. Hon. James Avedzi, they have interrupted you sufficiently, please proceed and end your contribution.
Mr. Avedzi 1:10 p.m.
Thank you, Mr. Speaker. Mr. Speaker, I think I will have to take on what he said. I am not referring to the 2007 Budget; I am referring to the 2006 Budget and I said that out of ¢41 trillion, ¢14 billion was coming from donors, grants and domestic borrowing. And I am saying that, if our GDP is claimed to be growing at a constant rate and we are being financed with over 40 per cent from donors, then we must be cautioned. This is what I am saying.
Mr. Speaker, I said that on health insurance, the levy that has been realized has not been transferred to the National Health account. The question is, where is that money? What is it doing where it is? We must be made to know why
Dr. A. A. Osei 1:10 p.m.
Mr. Speaker, the Committee of the Whole met only a week ago. I want to draw my hon. Friend's attention to article 179 (2) --
“The estimates of the expenditure of all public offices and public corporations, other than those set up as commercial ventures
(a) shall be classified under programmes or activities which shall be included in a bill . . .”
Mr. Speaker, at the Committee of the Whole, it was explained that the agency called NHIS has not received the approval from this Parliament, and so this Ministry could not legally transfer the money to them until this House has exercised its oversight responsibility. We are trying to protect the House and he is asking who is keeping the money. Mr. Speaker, this is a constitutional obligation which you have charged us to abide by. We have come here several times where this point has been noted. For him to leave the Committee of the Whole and come here and pretend he does not have the information is really unfortunate.
Mr. Second Deputy Speaker 1:10 p.m.
Hon. Member for Ketu North, please take that on board.
Mr. Avedzi 1:10 p.m.
Mr. Speaker, the 2006 formula, we recently approved in this
House; but that of 2005 we had long ago approved. And then the amount that is supposed to be transferred is ¢1.157 billion and they only transferred ¢984.5 billion. And I am asking why they have not transferred the balance for 2005; I am not talking of 2006 alone. The explanation he has given is related to 2006 and for that matter we cannot take him on for 2006. But for 2005, why are they holding the money?
Mr. Speaker, the hon. Chairman for the Committee on Health did mention that the Government is trying to solve the problem of financial access to health. But rather the Government has failed completely to address the issue of geographical access. With the hasty introduction of the National Health Insurance Scheme with its problems, Ghanaians living in the rural areas have to travel over 20 kilometres before they have access to health delivery.
Out of 80 chip compounds that the Ministry of Health budgeted for this year, 2006, not even 30 chip compounds have been constructed. So the Government is failing in that aspect.
Mr. Speaker, I would like to conclude by touching on the tax incentive that the Budget talked about. If you look at page 298, the Budget failed completely to address the issue of the regressive nature of personal income tax in this country.
Mr. Speaker, all over the world, personal income tax which is based on Pay As You Earn system is usually progressive in nature - that is, the more you earn, the more tax you pay. But since 2001, when this Government took over, personal income tax has been regressive in nature and therefore the poor pay more in relation to their income than the rich. I do not know whether they want to be biblical, that the rich shall be richer and the poor shall be poorer.
Mr. Avedzi 1:20 p.m.
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Mr. Speaker, I think the Ministry would take it on board and make sure that those corrections are made in the Budget. Therefore, for us to declare this Budget as an Awam Budget is in the right direction. The figures that are quoted are incorrect; the projections will not be achieved, and all that they intend doing cannot be realized. Therefore, it is an azaa Budget which is throwing dust into the eyes of the people of Ghana.

Deputy Minister for Trade, Industry, Private Sector and PSI (Mrs. Gifty Ohene-Konadu): I thank you, Mr. Speaker, for being so gender sensitive, by calling on me to contribute to the debate on the Financial Policy Statement for the year 2007.

First of all, I would like to congratulate

our indefatigable Finance and Economic Planning Minister, hon. Kwadwo Baah- Wiredu and his team for proving to this whole country that contrary to the views that were held that Budgets were read in February, this time round, the Budget has been placed in this House in November. Congratulations.

Mr. Speaker, I would like to comment briefly on certain portions of the Budget Statement, which relate to research incentives for local manufacturers and also promotion of poultry and rice that are produced in Ghana and finally, the funding that has been allocated to the District Industrialization Programme.

I am sure my hon. Colleagues would agree with me that applied research is the backbone of every economy because it is through applied research that we come up with innovative ways of doing things. So for the Government to allocate a budget of ¢5 billion to promote science and

technology is very commendable and we should all applaud that.

Again, I would also use this opportunity to advice our researchers that they should always conduct researches that would be beneficial to industry and desist from embarking on research that would be kept in their cupboards to gather dust. Also, for industries that have departments that conduct research, this is an opportunity to also allocate part of their funds to promote research, because this is the only way they can be very innovative or come up with innovative ways of doing research to enhance the activities of the industry.

On incentives for local manufacturers, I am sure we are all aware that industrialists are always calling on Government to offer them incentives that would level the playing field for them against competing imports. It is very gratifying to note that, again, pharmaceutical companies have also received enhanced incentives; and even import duty on raw materials of pharmaceutical companies that are registered have been slashed from ten per cent to five per cent.

To further deepen the efforts of our producers and make them more competitive, my Ministry is proposing the establishment of a Tariff Advisory Board. This Board would look at the issue of tariffs and competitiveness of industries on a continuous basis. This would ensure that we do not wait for the budget cycle before responding to urgent situations that might lead to the collapse of industries.

I also want to applaud the bold attempt made in the Budget to sustain the demand for rice and poultry products that are produced locally. My hon. Colleagues are also aware that my Ministry is promoting “buy made-in-Ghana goods”. We are all aware that such initiatives would generate more employment for people and also encourage the producers to produce
rose
Mr. Second Deputy Speaker 1:20 p.m.
Hon. Member, do you have a point of order?
Mr. Hodogbey 1:20 p.m.
Mr. Speaker, I think the hon. Deputy Minister is misleading this House by personalizing a Ministry as her Ministry. She is continuously saying “my Ministry”, “my Ministry”. I do not know if it is a personal Ministry somewhere there. One day if she is not there, then it becomes what? So she should -- [Interruption.]
Mr. Second Deputy Speaker 1:20 p.m.
Hon. Member, you have not raised a valid point of order at all. Hon. Member, when you go anywhere you can say “my Parliament” because you belong here.
Mrs. Ohene-Konadu 1:20 p.m.
Mr. Speaker, the advice is well taken -- the Ministry where I work. Mr. Speaker, it is also with great joy that I know that the District Industrialization Programme has now been allocated substantial funds to move it forward. I am sure you would all agree with me that the development of our rural industry is a necessary and a sufficient condition for the development of our economy. This District Industrialization Programme has been publicized widely and people keep asking why it is not moving forward.
Today, we have been given sufficient funds and I am sure that very soon, my hon. Colleagues would be smiling because it is going to transform our rural communities. The District Industrializa-
tion Programme is going to transform our rural communities to a level that we would all appreciate because the problem has now been removed.
Mr. Speaker, to conclude, I want to say that this Budget is an exceptionally excellent Budget and we should all applaud it and support it wholly.
I thank you, Mr. Speaker, for the opportunity.
Mr. C. S. Hodogbey (NDC -- North Tongu) 1:30 p.m.
Thank you, Mr. Speaker, for giving me the opportunity to comment on the Financial Statement for 2007. My contribution would be very brief.
First, I would like to comment on the SHEP IV programme, that is provision of electricity to communities in 2007. On page 93 of the Budget, the Government intends to provide only two hundred communities with electricity in 2007, and from now to 2011 the Government intends to provide two thousand, five hundred communities with light, but this is the very Government which is committed to industrialization as stated by the hon. Deputy Minister for Trade, Industry, Private Sector and PSI.

Mr. Speaker, on agriculture it is rather unfortunate that even though the Government spoke about rice production, the Aveyime Rice Project which has been abandoned for over six years now, with investment close to about ¢20 billion in machinery and other capital development, is still lying there but this Budget Statement failed to make mention of it.

The question is when will this project be reactivated because my people in the North Tongu constituency who are farmers, fishermen and livestock rearers have all scattered and gone to the Afram
Mr. R. S. Quarm (NPP -- Gomoa East) 1:30 p.m.
Mr. Speaker, I thank you very much for giving me the opportunity to contribute to the motion that this honourable House approves the Financial Policy of the Government for the fiscal year ending 31st December 2007 which was moved on Thursday, 16th November, 2006 by the Minister for Finance and

Mr. Speaker, the maxim goes that you can tell a ripe corn by its look. Mr. Speaker, the 42 -- page Budget Statement and Economic Policy of the Government of Ghana for the 1995 Financial Year by the reputed Dr. Kwesi Botchwey, this is what I am holding in my hand, the 1995 Budget Statement by Dr. Kwesi Botchwey.

Mr. Speaker, the penultimate Budget of His Excellency John Agyekum Kufuor is 350 pages -- [Hear! Hear!] Before going into the contents itself -- and you can tell a ripe corn by its look -- Mr. Speaker, previous contributors have sought to compare and contrast the six years of the New Patriotic Party (NPP) administration and the National Democratic Congress (NDC) administration. Mr. Speaker, I am beginning from 1960 to see the state, the health of Ghana. Mr. Speaker, to move forward, one must actually look back so that one does not step on the stone. [Interruption.]
Mr. J. Z. Amenowode 1:30 p.m.
On a point of order. It seems my hon. Friend on the other side is misleading this House, the nation and the whole world by implying that the quality of the contents of a book is in its size. I think that is grossly misleading; it will deceive our children to go and buy voluminous books that have no contents; so he should withdraw that.
Mr. Quarm 1:30 p.m.
He is my hon. Colleague opposite and I just have to ignore him. Mr. Speaker, in 1960 the population of Ghana was about six million plus; in the year 2000 it was 20 million, and in 2006 we are talking of an estimated population of about 22 million. Hon. Members who spoke previously alluded to the fact that
the quality of life in Ghana now is not comparable to that of the 1960s. Mr. Speaker, if we turn to page 377 of the 2006 Financial Statement, we have statistical data on Ghana starting from 1960.
The highest GDP Growth achieved by Osagyefo Dr. Kwame Nkrumah was 6.2 per cent; and that was in 1961. A year before it was just 2.3 and by 1966, it was 0.1 per cent GDP Growth. Inflation rate had risen from 0.9 per cent to about 14.8 per cent from 1960 to 1966. So if we are talking of Ghana being a pale shadow of itself now, in the year 2006, as against the year 1960, I find it difficult to comprehend. [Interruption.] Mr. Speaker, some people say I was not born. Mr. Speaker, I was 75 years by then -- [Interruptions.] Mr. Speaker, I withdraw.
Mr. Speaker, on a more serious note, 6.2 GDP Growth is not the highest ever achieved in Ghana. But most economists would say that for a country to take off smoothly it would need consistent and sustainable GDP Growth for at least 10 to 20 years before it can actually grow or take off and can reach the middle income status -- What we have been having since 1960 -- We have never had three years consistent growth in GDP, it has always been cyclical, up and down. This is the first time in Ghana's economic history that for six consecutive years GDP has been rising consistently. And what are the facts? [Hear! Hear!] If in 1960, it was 6.2 per cent and by 1966 it was 0.1 per cent, the decline can be seen. In 1978 -- [Interruption.]
Mr. J. K. Avedzi 1:40 p.m.
On a point of order. Mr. Speaker, the hon. Member is alluding to the fact that the GDP Growth has been consistent over a six-year period. I want to tell him that the foundation was laid by
the NDC Government, on which they are building now.
Mr. Quarm 1:40 p.m.
Mr. Speaker, my hon. Colleague and I have been friends for the past 10 years and he has followed me in several places, even into this House, except that he is at the wrong place and I know that he will soon come back.
Mr. Speaker, Ghana recorded 15 per cent GDP Growth in 1973. But what happened? Mr. Speaker, the year before -- 1972, it was -- 2.5 per cent. Mr. Speaker, if we talk of GDP, to the ordinary man what it means is that if a farmer produces 100 bags of cocoa or maize in year one and there is 5 per cent GDP Growth, it means in year two the farmer will harvest 105 bags.
Mr. Avedzi 1:40 p.m.
On a point of order. Mr. Speaker, my hon. Friend is making a point, but I do not seem to understand what he is saying. If we have been friends, that does not mean that I belong to the wrong side. This is the side of the House that I think I can work for; and in 2008 we are coming back to power.
Mr. Quarm 1:40 p.m.
Mr. Speaker, my friend should forgive me. I did not mean any harm.
Mr. Second Deputy Speaker 1:40 p.m.
Hon. Member for Gomoa East, please go on.
Mr. Quarm 1:40 p.m.
Mr. Speaker, in 1973 there was 15.3 per cent GDP growth and yet in 1974 it fell to 3.4 per cent and in 1975 actually, there was negative 12.9 per cent GDP growth. You can see the swings. How can we develop -- [Interruption.]
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Mr. Second Deputy Speaker 1:40 p.m.
Hon. Member, you have a point of order?
Mr. Hodogbey 1:40 p.m.
Mr. Speaker, precisely so.
Mr. Second Deputy Speaker 1:40 p.m.
Let us hear your point of order.
Mr. Hodogbey 1:40 p.m.
Mr. Speaker, it looks as if the hon. Member is continuously misleading the House by defining GDP with cocoa -- somebody producing cocoa. I do not know whether he is trying to create his own definition of GDP. Because GDP is not only based on production of cocoa. There are goods and services which added together make up GDP. And for him to continue to be comparing something today to about 30 years ago -- I think he will be doing a good service to the House by comparing at least the last ten years, what has happened with Ghana's GDP than going all the way back to 1961 or 1966 when he was not born.
Mr. Second Deputy Speaker 1:40 p.m.
Hon. Member, he is making his presentation in the manner that he thinks he will make his impact. Let him go on.
Mr. Quarm 1:40 p.m.
Mr. Speaker, for these references, one needs to be going back into the past -- even during the time of Christ and John the Baptist, two thousand years ago, they were making references seven hundred years back into history, back into the Old Testament. And Mr. Speaker, my hon. Colleagues talked about poverty, people suffering. Mr. Speaker, go to Matthew chapter 26 or 28 and -- [Interruption.]
Mr. Second Deputy Speaker 1:40 p.m.
Hon. Member, you do not have much time.
Mr. Quarm 1:40 p.m.
Mr. Speaker, you
may recall that at a point in time Mary Magdalene poured oil on the feet of Christ and used her hair to wipe it off. The Disciples were indignant that why in that era of hardship the woman should do that. That was two thousand years ago. By the year 1900, the population of the world was less than two billion. So two thousand years ago I cannot imagine what the population was and yet Christ told the disciples that that woman had done her portion; that the poverty that was with them then would be with them till the end of time.
So poverty is a relative term, Mr. Speaker. It exists today in the United States; it exists in Switzerland. So when we mention poverty, that the standard of living is rising, those at the lower rungs might think that no, they are poor. In reality, they are not poor.
Mr. John Mahama 1:40 p.m.
On a point of order. Mr. Speaker, I would have let is pass but I think that he is misleading not only this House but the whole public. Mr. Speaker, in the year 2000 fixed lines alone exceeded three hundred thousand. Now, fixed lines are four hundred and fifty thousand. It was the liberalization of the mobile sector and the invitation
of the private sector to invest in mobile telephoning that has led to the current explosion of mobile telephone lines. So he should put that in context.
Mr. Quarm 1:40 p.m.
Mr. Speaker, I am happy my senior Colleague has admitted that there has been a growth and expansion and explosion under the able leadership of His Excellency the President. Mr. Speaker, can you imagine just about a month ago on Radio Peace, a junior secondary school (JSS) student in a rural area in the Brong Ahafo Region had the audacity to say that her mobile phone had been snatched? What I am trying to say is that we are talking about poverty. If you cannot find something to eat and you can buy a mobile phone -- [Interruption.]
Alhaji Collins Dauda 1:40 p.m.
On a point of order. Mr. Speaker, my hon. Colleague is making a very serious statement that has to be put in the right context. He has said that somewhere in the Brong Ahafo Region, a JSS student snatched -- [Interruption] -- That is what he said.
Mr. Second Deputy Speaker 1:40 p.m.
Hon. Member, he said a JSS student's phone was snatched.
Alhaji Dauda 1:40 p.m.
Yes, so there was a snatching -- [Interruption.]
Mr. Second Deputy Speaker 1:40 p.m.
Order! If you want to make an intervention, first get the facts right. According to him it was somebody who snatched the phone of a JSS student.
Alhaji Dauda 1:40 p.m.
And he referred to the Brong Ahafo Region. If he had left it, I would not have got up on a point of order. So he must situate the case. He must tell us in which town, in which village that incident happened, otherwise he should withdraw the statement. He is talking about the Brong Ahafo Region.
Mr. Second Deputy Speaker 1:40 p.m.
Hon. Member, he did say that there was a report and he could not trace the newspaper which reported it.
Mr. Bagbin 1:40 p.m.
Mr. Speaker, I think that it is also proper my hon. Colleague withdraws the word “audacity” -- “JSS student had the audacity to complain. . .” That word is unparliamentary and I think it is not fair.
Mr. Quarm 1:40 p.m.
Mr. Speaker, I withdraw the word “audacity” which the hon. Minority Leader has protested against.
Mr. K. T. Hammond 1:40 p.m.
Mr. Speaker, I understand because I also heard that particular story he is talking about. So point of information -- The incident took place at a little village, I think in his constituency. Mr. Speaker, the important thing about the incident is not so much about the snatching; it is about the fact that even in that little town I am talking about there are people there with mobile phones. That is the important point.
Mr. Quarm 1:40 p.m.
Mr. Speaker, in talking about the growth of the Ghanaian economy, we are not just talking about figures. Mr. Speaker, let us go to page 348 of the 2007 Budget Statement -- [Interruption.]
Alhaji Dauda 1:40 p.m.
Mr. Speaker, the hon. Deputy Minister for Energy has tried to compound the confusion by saying that the incident happened in my constituency and in a small village. Mr. Speaker, I have always insisted that they should name the village in which the incident took place. You would realize that when you overlooked the first one, he has come up again and has been specific with my constituency.
So far as I am concerned, Mr. Speaker, this incident has never happened there; he should tell us the village where it happened so that when I go back to my constituency I will check on it. They should tell us or he should withdraw the statement.
1869 Government's Financial 29 Nov. 2006 Policy,
Mr. Second Deputy Speaker 1:50 p.m.
I think that this is not the kind of statement that is harmful. Nevertheless, he is complaining that he does not want you to associate especially his village with it. So please take that on board and address his concern.
Mr. Quarm 1:50 p.m.
Mr. Speaker, this was
Mr. Bagbin 1:50 p.m.
Mr. Speaker, on a point
of order. Mr. Speaker, Brazil is a giant in soccer; Brazil is not a giant when we are talking about economy -- Brazil is not a giant. So when the hon. Member on the floor says that looking at giant Brazil -- and he is talking about economic indicators. It is only in football that Brazil is a giant and not in the economy.
Mr. Quarm 1:50 p.m.
Mr. Speaker, the good
Mr. Second Deputy Speaker 1:50 p.m.
Hon.
Member, wait for a moment. Let us hear one more comment on that from the hon. Member for Wa Central.
Mr. Abdul-Rashid Pelpuo 1:50 p.m.
Mr.
Speaker, I think that the hon. Member
on the floor is confusing what is meant by economic growth and the well-being of the people with the year-on-year growth that we are recording. He is comparing Ghana's growth to countries like South Korea, Brazil, et cetera. These are established countries that are growing without necessarily going for grants and loans. They have got the infrastructure, their economics are led by the manufacturing and industry sectors and not agriculture, or the grants and loans that we are collecting.
So Mr. Speaker, I think the hon. Member should correct himself; ours cannot be compared in any way with these countries and the growth we are recording does not definitely reflect on the well- being of the people. He is completely wrong to make such comparison.
Mr. Second Deputy Speaker 1:50 p.m.
Hon. Member, that is your opinion, let him also go on.
Mr. Quarm 1:50 p.m.
Mr. Speaker, I am happy
my hon. Colleague opposite is admitting the fact that Ghana was not a giant -- It was not existing -- [Uproar] -- and that it is now coming into being in terms of -- [Interruptions.] Mr. Speaker, the point I am trying to make is that for economic growth and in talking about consistency and sustainability, we have had 15.4 per cent before, we have had 8.4 per cent before -- [Interruption.]
Mr. Mahama 1:50 p.m.
Mr. Speaker, on a
Mr. Mahama 1:50 p.m.
Mr. Speaker, if you
take 6.2 per cent of a country whose gross
national product is $29 billion, and then you take 2 per cent of the country whose gross national product is probably $30 trillion, you would see that you cannot compare the two. It is like comparing oranges with apples.
Mr. Second Deputy speaker 1:50 p.m.
Order!
Order! Hon. Members, it is nearly 2.00 p.m., we shall have a bit of an extended Sitting.
Mr. K. T. Hammond 1:50 p.m.
Mr. Speaker, on a point of information. The hon. Member just said that we already have Asaganomics in this House. [Laughter.] Mr. Speaker, it has never been defined; I have not heard about any Asaganomics here. So can he define what Asaganomics is so that I can know what he is talking about?
Mr. Second Deputy Speaker 1:50 p.m.
Hon.
Member, after this you can consult hon. J. H. Mensah -- [Laughter.] Hon. Members, please let us allow the hon. Member for Gomoa East to complete his contribution.
Mr. Quarm 1:50 p.m.
Mr. Speaker, if I say 6
per cent -- Yes, I know that the reserve of China alone this year is $987 billion but that of Ghana is $2 billion. And if I say 6 per cent, it is not 6 per cent of $987 billion and 6 per cent of $2 billion; what I am saying is that, yes, for countries like Japan, South Korea, Singapore, Hong Kong, they have at least grown above 5 per cent consistently for about 25 years, that is why they have reached the middle-income

The IMF Resident Representative about a month or two ago even said at a press conference that Ghana is likely to achieve some of the targets even before 2012. [Hear! Hear!] Mr. Speaker, looking at the nominal GDP alone -- [Inter- ruption.]
Mr. Bagbin 1:50 p.m.
Mr. Speaker, on a point
of order. Mr. Speaker, my hon. Colleague on the floor is actually misinforming the public. When the Country Director spoke, he was talking about achieving the Millennium Development Goals, and he said we could achieve some of the millennium goals before the year 2015; he was not talking about middle-income country; the two are different. In fact, if you look at the Millennium Development Goals, it does not mean that even if we achieve them, we would get middle- income status; it does not at all. They are two different things and the targets are different. It is also not true that even if we are getting 5 point something per cent, or 6 per cent for 10 years, we can achieve middle-income status, it is also not true.
Mr. Quarm 1:50 p.m.
Mr. Speaker, if we turn
Mr. Second Deputy Speaker 1:50 p.m.
Are
you winding up?
Mr. Quarm 1:50 p.m.
Mr. Speaker, I am
Mr. Quarm 2 p.m.
1873 Government's Financial 29 Nov. 2006 1871 Government's Financial 29 Nov. 2006
winding up. Mr. Speaker, we should divide that figure by the 22 million population figure and we are in the region of $675 per capita income; and for middle- income status the qualification is $1,000.
Mr. Speaker, the hon. Minority Leader is my team leader at the Ghana Institute for Management and Public Adminis-tration (GIMPA) -- [Laughter.] Mr. Speaker, so it tells us that within 6 years if the per capita income -- after 2008 we are going to compare two regimes: 8 years of His Excellency the former President, Flt. Lt. Rawlings, and His Excellency President John Agyekum Kufuor; and these are the parameters or the indicators we are going to look at. Mr. Speaker, not just that but we are also going to look specifically into the Budget.
Mr. Speaker, what are the programmes lined up in this year's Budget? We are talking about 5-year Golden Jubilee Bonds that will net $25 million and we would be listed on the Ghana Stock Exchange in 2007. Mr. Speaker, the Government will enter the international capital market as a sovereign borrower devoid of IMF conditionalities.

Mr. Speaker, in this Budget we have the abolition of the National Reconstruction Levy of 7.5 per cent, effective January 1, 2007. Mr. Speaker, we have low-cost computers for schools to be undertaken by the Ministry of Education, Science and Sports and the Ministry of Communications.
Mr. Second Deputy Speaker 2 p.m.
Wind up.
Mr. Quarm 2 p.m.
Mr. Speaker, we are talking of rationalisation of utilities by Ministries, Departments and Agencies and then Metropolitan, Municipal and District Assemblies, offices and buildings to be fitted with pre-paid electricity meters. Mr.
Speaker, we are talking of annual renewal of vehicle registration licences and trailers. Mr. Speaker, this Budget is talking about state of the art training centres for all the security agencies.
Mr. Speaker, this Budget is talking
about a centralised revenue training college for all the revenue agencies. Mr. Speaker, this Budget is talking about a state-of-the-art orthopaedic referral hospital to cater for the sub-region.
Mr. Speaker, if this is not a “Good News” Budget, then I do not know what it is.
Mr. Second Deputy Speaker 2 p.m.
It appears the hon. Lee Ocran is no more interested in making his contribution, so I will call hon. Eric Opoku, Asunafo South.
Mr. Eric Opoku (NDC -- Asunafo South) 2 p.m.
Thank you, Mr. Speaker, for giving me the opportunity to associate myself with the motion on the floor of the House.
Mr. Speaker, the Budget is to achieve growth with stability but in an economy where we depend substantially on agriculture, there cannot be any significant growth unless we give more attention to the agricultural sector. And when we talk about the agricultural sector, one cannot forget the key role the cocoa sub-sector plays. I will therefore want to concentrate on the cocoa sector, which indeed is driving the economy of this country.
Mr. Speaker, sometimes, it is difficult
for one to do some calculation using the figures provided in our Budget. When you look at the 2005 Budget, which was presented on Thursday, 24th February, 2005 before this august House -- Mr. Speaker, with your indulgence I would
like to quote from page 127, paragraph 420. Mr. Speaker, I quote:
“Mr. Speaker, the initiatives adopted during the first term of the Kufuor Administration have resulted in a record output of 736,911 metric tonnes which has been described as remarkable and is only comparable to the 1960's when Ghana produced 580,869 metric tonnes during the 1964/1965 Crop Season.”
Mr. Simon Osei-Mensah 2 p.m.
On a point of order. Mr. Speaker, I think the hon. Member should know the facts very clearly before he starts making those allegations.
Mr. Speaker, we were in this country
in 2006 when some of the cocoa that we exported were returned to the country -- [Interruptions] -- Let me land. And then in 2005, too, we had similar incidents in the country. And in the cocoa industry when it happens like that, at the end of the day you have to net it out because you can no longer capture it as part of your exports or your proceeds. These are some of the anomalies that occurred; he can check up from the COCOBOD and it would be clarified to him.
Mr. Opoku 2 p.m.
Mr. Speaker, what I am saying is that it is based upon these figures that we arrived at the GDP growth;
Mr. Osafo-Maafo 2 p.m.
On a point of order. Mr. Speaker, in calculating the GDP, we are talking about the earnings from cocoa, not the tonnage. And therefore we never calculated the GDP based on the tonnage; we are talking about the earnings from the cocoa that would have been used as the resources for the country. It depends; when it is returned it will be netted out; it will no more be part of the earnings. So we are talking about earnings, which is different from tonnage and we should not confuse the two, Mr. Speaker.
Mr. Opoku 2 p.m.
Mr. Speaker, I think my hon. Senior Colleague knows very well that our cocoa earnings depend on our cocoa output. That one is a fact he cannot challenge. So we will have to know which of the figures is correct; otherwise, it will be very difficult for us to calculate and arrive at the growth they are talking about.
The second point is that I have with me
here the 2002 Budget which was presented by hon. Yaw Osafo-Maafo. On page 94, paragraph 512, he said a bag of cocoa was 62.5 kilograms. Today in the 2007 Budget, we are being told that a bag of cocoa is 64 kilograms. This is found on page 80. My point is that in 2002 a bag of cocoa was 62.5; today it is 64 kilograms.
I just want to know whether the weight of cocoa has increased by 1.5 kilograms.
1875 Government's Financial 29 Nov. 2006
If it has, then the Government has not increased the producer price of cocoa but rather the government has decreased it. [Hear! Hear!] So I just want to know; if they have not increased the weight, then which of the kilograms is correct? I believe the Government economists are here and they should be able to tell us which one is correct. We must know. [Interruption.]
Mr. Second Deputy Speaker 2 p.m.
Yes, it is enough to rise but not to play with the microphone. Let us take a point of order from the Deputy Minister for Finance and Economic Planning.
Prof. Gyan-Baffour 2 p.m.
Mr. Speaker, I think what we are debating here is a very serious issue. When you are lost in the jungle where you cannot find your way you look at realities. These issues, if even they are typographical errors -- [Interruptions.] It should not be the import as the whole issue -- [Interruption.]
Mr. Second Deputy Speaker 2 p.m.
Order!
Order!
Prof. Gyan-Baffour 2:10 p.m.
The essence of this Budget is not about technicalities. When a lawyer goes to court and he realizes that he cannot win the case, then he talks about technicalities. The issue here is that cocoa prices have actually gone up. A tonne of cocoa has gone up from ¢9 million to ¢9,150,000; that is the issue. It is not about whether the kilo is lighter or the kilo is bigger. So I think if we are arguing on this issue we have to argue on substantial issues rather than on trivialities - [Interruptions.]
Mr. Second Deputy Speaker 2:10 p.m.
Order! Order! I expected the hon. Minister to answer; perhaps let us have you.
Mr. Osei-Mensah 2:10 p.m.
Mr. Speaker, both figures are right and the reason is that the beans, excluding the sack, should weigh 62.5 kilos -- [Uproar.]
Mr. Osei-Mensah 2:10 p.m.
Mr. Speaker, excuse me. Mr. Speaker, plus the sack it is 64, the sack is taken to be 1.5. Mr. Speaker, that is why a tonne of cocoa which is supposed to be 1000 kilos is 16 x 62.5; and the hon. Member should calculate.
Mr. Speaker, so the two things are looking at the same issue from two different angles. One is only looking at the beans and the other is looking at the beans plus the sacks. So Mr. Speaker, there is no contradiction, there is no anomaly here.
Mr. Second Deputy Speaker 2:10 p.m.
I do not expect us to spend too much time on this.
An hon. Member - rose -
Mr. Second Deputy Speaker 2:10 p.m.
Please, resume your seat. Hon. Members, I do not expect us to waste so much time on this. I did not expect to make the argument for anybody, but having been in that industry for a long time I do know that people often add the weight of the empty sack to determine the weight; sometimes too they deduct it and get the net weight. So if we have an information let us use it and continue.
Mr. Eric Opoku 2:10 p.m.
Mr. Speaker, if the 1.5 kilogrammes which is making the total 64 kilogrammes is because of the sacks then my question is that in 2002 when it was stated in the Budget that a bag of cocoa was 62.5 kilos, did they not take care of the sacks?
Mr. Second Deputy Speaker 2:10 p.m.
Yes, that is why we are saying that sometimes people can make that mistake of not
taking out the weight of the empty sack. Nevertheless, let us have the hon. Minority Leader.
Mr. A. S. K. Bagbin 2:10 p.m.
Mr. Speaker, my hon. Colleague, Prof. Gyan-Baffour said that when a lawyer has no case in court he depends on technicalities. Mr. Speaker, this is a very serious indictment on lawyers. It is wholly untrue and your goodself being a lawyer knows that technicalities are part and parcel of the legal process, and they are part and parcel of the law. So he should withdraw that thing. He cannot indict lawyers by saying that they rely on technicalities when they do not have a case in court — [Laughter.]
Mr. John Mahama 2:10 p.m.
Mr. Speaker, I would like hon. Balado Manu to know that there is a cocoa research station in Bole — [Laughter.]
Mr. Second Deputy Speaker 2:10 p.m.
Order! Hon. Balado Manu is not on the floor, he has not made any contribution on the floor, so that aspect is out of order.
Mr. Mahama 2:10 p.m.
Mr. Speaker, when I rose on my point of order, he was questioning - [Interruption.]
Mr. Second Deputy Speaker 2:10 p.m.
I did not hear it.
Mr. Mahama 2:10 p.m.
All right, sir. Mr. Speaker, you yourself have worked in the cocoa industry before. I do not know what kind of sack, whether from Bangladesh or from Papua New Guinea, weighs 1.5 kilogrammes. Mr. Speaker, there cannot be any sack, in my experience in this world, that will weigh 1.5 kilogrammes. Mr. Speaker, when he started raising the point, I thought it was trivial but I am beginning to see that there is something there; because no sack can weigh 1.5 kilogrammes -- [Laughter.]
Mr. Osafo-Maafo 2:10 p.m.
Mr. Speaker, we are aware that the price of cocoa nationally or internationally is quoted in tonnage. Therefore, when we talk about the price of cocoa, the bag just comes in as an adjective. If we talk about a tonne of cocoa, the Government increased the price from ¢9 million per metric tonne to ¢9,150,000. So dealing with the metric tonne, there was a specific increase, and he is trying to trivialize it as if there was no increase by using this. It is not right; it is there. So indeed, there was an increase in cocoa price from ¢9 million per tonne to ¢9,150,000. What is important is that we talk about the price of cocoa in tonnage.
Prof. Gyan-Baffour 2:10 p.m.
Mr. Speaker, what I intended to do was to make an analogy, not actually to slight anybody. The whole purpose of my argument was that we had to look at substantive issues rather than trivializing issues. But if in the process, I offended my learned brothers here, I am sorry about that; that was not the intention.
Mr. Second Deputy Speaker 2:10 p.m.
Hon. Member for Asunafo North, please go on. Proceed and make your substantial case.
Mr. Eric Opoku 2:10 p.m.
Mr. Speaker, I will, but for the sake of the records, I have to set something straight. There is an issue the hon. Osafo-Maafo raised and I need to address it; it is very important. He said that in determining the producer price, Government looks at the tonnage. In his own Budget for 2002, paragraph 512, he said and Mr. Speaker, with your indulgence, I beg to read:
“Government has been actively and regularly reviewing the variables in determining producer prices. Following such a review, Government has decided to increase
1879 Government's Financial 29 Nov. 2006 1881 Government's Financial 29 Nov. 2006
immediately the producer price of cocoa from ¢4,384,000 per tonne or ¢274,000 per bag of 62.5 kilogrames
. . .”
Mr. Osafo-Maafo 2:10 p.m.
Mr. Speaker, I am sure he has shot himself in the foot. I started with the tonnage and that is exactly what I am saying. The tonnage is the standard measure even if he is reducing into other smaller units. Therefore, the fact that cocoa price is quoted internationally and nationally in tonnage is a living fact, and that was what I said - [Uproar.]
Mr. Second Deputy Speaker 2:10 p.m.
Hon. Members, let us make progress. I think what hon. Osafo-Maafo has said is clear enough. You have what is generally known and sometimes you reduce it into lower units just for emphasis. So hon. Member for Asunafo North, please go on. No interruption, please.
Mr. Opoku 2:10 p.m.
Mr. Speaker, before the Government came out with a new price, a bag of cocoa was 62.5 kilogrammes and the price was ¢562,500; so the price per kilogramme was ¢9,000. Today, a bag of cocoa is 64 kilogrammes and then the price is ¢571,000. So a kilogramme is now less than ¢9,000. Government has increased the producer price and has increased the weight as well. It is like giving with the right hand and then taking away with the left hand. Mr. Speaker, what I am saying is that Government has made cocoa farmers worse off - [Interruption.]
Mr. Second Deputy Speaker 2:20 p.m.
Hon. Member, when you raise an issue and it is considered right then you have no basis for saying that the information that has been given you is wrong. You were told that you have net, without the empty sack, and then sometimes you have the gross. So that is a factor you should take into consideration.
You should not make doubtful state of affairs to provide a momentum for your points. Just go on with the substance of your argument and leave that aspect which you can get verified later.
Mr. Opoku 2:20 p.m.
Mr. Speaker, I will proceed but I am happy that it has been captured in the Hansard that the NPP Government is telling us today that a sack of cocoa makes one and a-half kilos. That is very important and I think Ghanaians would analyse it.
Mr. Speaker, I would also want to talk about the cocoa diseases and pest control programme. It is stated in the Budget, on page 77, that with an amount of ¢564.9 billion, Government was able to spray 742,213 farms. With this amount, Government was able to create 50,765 jobs and with this amount, the mass cocoa spraying covered 1,948,101 hectares of cocoa farms.
Mr. Opare-Ansah 2:20 p.m.
On a point of order. Mr. Speaker, the hon. Member made reference to hon. Osafo-Maafo's Budget but I do not know if hon. Osafo- Maafo has a Budget. What I know is that all Budgets that are ever presented to this House by various Ministers for Finance and Economic Planning are the Budgets of various Governments, and they are presented on the authority of the President. So he will have to make that correction since he is so much interested in getting things into the Hansard.
Mr. Opoku 2:20 p.m.
Mr. Speaker, I think on the Budget I referred to, we have the name of hon. Yaw Osafo-Maafo written boldly there, that he presented it. That was why I made mention of his name; I was just reading from the back page of the Budget.
Mr. Speaker, I want to proceed. I was talking about the mass spraying exercise and I said it is indicated in the Budget that
with ¢564.9 billion, the Government was able to spray 742,213 farms. Government was able to create 50,765 jobs and Government was able to spray 1,948,101 hectares of cocoa farms. But when you look at the “Outlook”, it is saying that in 2007, the Government is going to use ¢464.9 billion, a reduction of almost ¢100 billion, and with the ¢464.9 billion the Government is going to create 51,355 jobs. How is this possible?
With the same amount the Government is going to spray farms belonging to 775,000 cocoa farmers and Government is targeting farms of 2,300,000 hectares. Mr. Speaker, how realistic is this? Because, we know for a fact that the price of insecticides is going up and because, Government is bent upon putting moneys into the pockets of the ordinary Ghanaian, definitely, the wages being paid to these mass sprayers will be increased. So how can the Government create 51,000 jobs with ¢464 billion, when it created 50,000 jobs with ¢564 billion.
Mr. Speaker, you realize that the figures are just put in the Budget without the correct prediction.
Mr. Simon Osei-Mensah (NPP -- Bosomtwe) 2:30 p.m.
Mr. Speaker, I wish to lend my support to the motion on the floor, that this august House approves the Budget Statement and Economic Policy of the Government for the year 2007 presented to this House by hon. Kwadwo Baah-Wiredu, Minister for Finance and Economic Planning and Member of Parliament for Asante Akim North.
Mr. Speaker, this Budget has, again, demonstrated the consistency of the NPP
Government in its policy direction and microeconomic achievement. [Hear! Hear!] Mr. Speaker, in the year 2006 due to the much touted slogan -- Sika nni yen bo to mu, the Budget focused on employment generation — “investing in people, investing in jobs”. [Hear! Hear!] Mr. Speaker, for this matter, the private sector had a pivotal role to play in generating the needed employment in the country. As a result, the measures to generate employment, strengthen the private sector and regionalize and enhance revenue collection remained critical areas of concern in that Budget.
Mr. Speaker, the main pillars of the 2006 Budget were three, namely; private sector development that was to ensure the competitiveness of the Ghanaian businessman with his international competitors. Mr. Speaker, the second pillar was human resource development that was to enhance employment generation; thus the theme, “investing in people, investing in jobs”. Good governance was the third pillar, which looked at revenue rationalization and revenue enhancement.
Mr. Speaker, in order to ensure sustained and enhanced macro-economic achievement and also to ensure that the macro-economic stability that we have in this country is not jeopardized, we have consistently carried the same three pillars into the 2007 Budget.
Mr. Speaker, however, because budgets are not prepared in a vacuum but rather budgets are prepared to solve socio- economic problems that face any country, this Budget has taken into cognizance some of the major challenges that face this nation in year 2006. Mr. Speaker, as a result, the focus of this year's policy initiative is to create fairness in salary administration, diversify our sources of funding, stabilize and expand our energy generation capacity and continue to
1883 Government's Financial 29 Nov. 2006 1885 Government's Financial 29 Nov. 2006
improve the business environment.
Mr. Speaker, but the Government alone cannot generate the adequate employment that we need in this country. As a result of years of accumulation of a great labour force, there is unemployment. This, to me, is the result of the poor implementation of the junior secondary school (JSS) programme. At the initial stages, people who finished JSS and could not make it to the senior secondary school (SSS) had no opportunity to resit and then to continue their education and as such terminated their education after JSS 3.

Mr. Speaker, now I have heard a number of times on FM stations, at Christian forums, people saying that the Government is not committed to implementing initiatives that the Government states in its Budget. This is false; and to contradict these things I do not want to take us back because of lack of time, to the year 2001. So I am zeroing in on the year 2006.

Mr. Speaker, I will take a few of them -- Capital Market. In the Budget the Government stated that it was going to issue medium-term bonds onto the Ghana Stock Exchange, that is, two and three- year fixed and floating bonds. On October
Mr. Mahama Ayariga 2:30 p.m.
On a point of order. Mr. Speaker, I believe that this House should not be bored and misled into thinking that all the issues that he has recounted constitute any significant achievements. Mr. Speaker, in spite of all the things that he has said, the human development index also indicates very clearly that we are not achieving any significant growth in terms of human development in this country. [Interruption.]
Mr. Speaker, to say that a Bill is before Cabinet and will be brought here and for my hon. Colleagues on the other side to
Mr. Second Deputy Speaker 2:30 p.m.
Hon. Member for Bawku Central, I have been waiting for your point of order but I have still not got it. Please, hon. Member, go on.
Mr. Osei-Mensah 2:30 p.m.
Mr. Speaker, I wish to tell my hon. Colleague that the implementation of policy initiatives is not an event; it is a process -- [Hear! Hear!] -- And once the process has been initiated, it means that something has been done.
Budget, the Government proposed to spend ¢336.435 billion on micro finance. However, in the President's own wisdom and with the prudent management of the economy, on September 6 this year, the President launched the Micro Finance and Small Loans Project with an amount of ¢455 million. Mr. Speaker, is this not good news as was stated in the 2006 Budget? As at June this year, disburse-ment of about ¢146.515 billion had been made for Micro Finance and Small Loans Activities.
Mr. Speaker, l e t us move on to procurement of outboard motors. The Government proposed to procure outboard motors for our fishermen. Mr. Speaker, already, 400 outboard motors have been procured through the Agricultural Development Bank (ADB) for the Ministry of Fisheries, and these 400 outboard motors have all been distributed to the fishermen.
Mr. Second Deputy Speaker 2:30 p.m.
Hon. Member for Jomoro, what is your point of order?
Mr. Ocran 2:30 p.m.
My point of order is that the choir is singing discordant tunes.
Mr. Second Deputy Speaker 2:30 p.m.
Well, you have not disputed the facts of what he has said so you have no point of order. Hon. Member, can you wind up?
Mr. Osei-Mensah 2:40 p.m.
Mr. Speaker, I wish you could give me some three minutes more. If the hon. Member for Jomoro is saying 400 is nothing, I wish every morning when he leaves his house he should make sure that he leaps 400 metres before he continues -- [Hear! Hear!] -- Because the first 400 metres is not necessary.
Mr. Speaker, I move on to the Venture Capital Trust Fund. Already, ¢3.7 billion has been disbursed to a venture capital finance company that has qualified under the criteria of the Venture Capital Trust Fund. Mr. Speaker, I wish to inform this House and the general public that currently, about ¢41 billion is available to various venture capital companies that would qualify to access.
Mr. Speaker, the National Recon- struction Levy as proposed in the 2006 Budget, the reductions were all effected; and you can refer to the National Reconstruction Levy (Amendment) Act 2006, Act 698 which this Parliament did approve.
Mr. Speaker, if you go to corporate tax, from 28 to 25, that has also been done
1887 Government's Financial 29 Nov. 2006 1889 Government's Financial 29 Nov. 2006
under the Internal Revenue (Amendment) Regulations 2006, L.I. 1820. Again, Mr. Speaker, let us move on to lean cotton and other inputs for the cotton industry. The 5 per cent import duty has also been abolished and reference is also made to Customs, Excise and Preventive Service (Taxes) (Amendment) Act 2006 (Act 697).
Again, let us move on to the personal income tax relief. This has also been done with the passage of the Income Tax Rate (Amendment) Regulations 2006, L.I. 1820. Mr. Speaker, taxation on overtime income, has also been done under L.I. 1819, that is, Internal Revenue (Amendment) Regulations 2006.
Mr. Speaker, there are several other things. Look at the West African Gas Pipeline, about 91 per cent of the laying of the pipe is completed. Let us talk about the Osagyefo power plant barge. Even though it has not found its final destination at Tema, it has been moved from the original position, that is, the Sekondi Naval Base to Effasu Mangye.
Mr. Speaker, on afforestation, about 81,000 hectares have been cultivated as at September 2006 and about 56,058 persons have been engaged fully. On resuscitation of strategic industries and establishments, we can make mention of the Pwalugu Tomato Factory. It has been resuscitated and test runs have already been carried out.
Again, if you go to the Ambassador Hotel, it is being renovated; people are working on it. The City Hotel in Kumasi is also being worked on. So this Budget is a budget of hope and whatever we have said, we are prepared to do.

Mr. Speaker, affordable housing -- I hear people say that we said we would build affordable houses but that we have done nothing. Mr. Speaker, this is an erroneous impression. Mr. Speaker,

already, work on 138 flats has started at Borteyman, in the Nungua area, and work on 1,400 flats have also started at Tema Kpone. Work has also started on another 1,192 flats at Asokore Mampong in the Ashanti Region. Recently, the hon. Minister for Water Resources, Works and Housing also launched another one at Ayigya which is being constructed. Mr. Speaker, all those people who say that this Government is not committed to implementing policy initiatives that it states in its Budgets are not speaking the truth.

Mr. Speaker, again, let us look at the Accra-Tema railway line. It is about 75 per cent completed. I am sorry that those people who are interested in the cocoa issues have just left. The housing scheme for cocoa farmers, if they do not know, Mr. Speaker, I am telling this House that it has been launched at Enchi and already work on ten houses has started, as a pilot phase, so that we learn the problems that we will encounter in implementing this policy.
  • [MR. FIRST DEPUTY SPEAKER IN THE CHAIR.]
    • Mr. First Deputy Speaker 2:40 p.m.
    Hon. Member, slow down because the Hansard Department would have to record it. So take it a bit slowly.
    Mr. Osei-Mensah 2:40 p.m.
    Thank you, Mr. Speaker -- [Interruptions.]
    Mr. Lee Ocran 2:40 p.m.
    We have all read this Budget. It seems the gentleman there is recapturing the Budget for us again. He is not debating anything -- [Laughter.]
    Mr. First Deputy Speaker 2:40 p.m.
    I can see that he is not reading.
    Mr. Ocran 2:40 p.m.
    He has a small head and
    Mr. First Deputy Speaker 2:40 p.m.
    Hon. Member for Jomoro, would you allow him to continue?
    Mr. Osei-Mensah 2:40 p.m.
    Mr. Speaker, now I have to slow down. Mr. Speaker, there are other important programmes and projects that the Government is embarking upon and will continue to finish them.
    The National Health Insurance Scheme -- I have heard people complain that they have the cards but when they go to the hospitals, they are not given the relief that they deserve. In fact, that has been explained. If they want to get the relief, then they have to go to hospitals that have been registered. If they go to a hospital that is not registered, they will not benefit from the scheme even though they have registered with the scheme.
    Again, free ride on metro-mass transit for school children, we all see it, I do not need to elaborate. The Capitation grant, we all see it. The school feeding programme -- even in my constituency, there are three schools which are benefiting at the pilot stage. If they do not know, they should come and I will take them there to go and witness it.
    rose
    Mr. First Deputy Speaker 2:40 p.m.
    What is your problem, hon. Member for Jomoro?
    1893 Government's Financial 29 Nov. 2006
    Mr. Ocran 2:40 p.m.
    Mr. Speaker, earlier on,
    we agreed in this House that Ranking Members would speak for ten minutes, and ordinary members would speak for five minutes. This gentleman has been there for the past twenty-five minutes and he still keeps on. Why?
    Mr. First Deputy Speaker 2:40 p.m.
    By my watch, he has not exhausted his time -- [Hear! Hear!]
    Mr. Osei-Mensah 2:40 p.m.
    Thank you, Mr. Speaker. Mr. Speaker, when the President came to this House to deliver a Message to us and assured us that he had belief and confidence in the Black Stars and that, he knew they were going to put up a splendid performance at the World Cup, many were those doubting Thomases who never believed him. But Mr. Speaker, the Black Stars did all of us proud at the World Cup.
    Mr. Speaker, again the CAN 2008. If you look at the stadia that are being constructed -- all these things were stated in the 2006 Budget and they are being done. So who can say that this Government is not committed to implementing policies that it states in its Budget? It is not true, Mr. Speaker.
    Mr. First Deputy Speaker 2:40 p.m.
    Hon. Member, just as you have been reminded, your time is almost far spent, so I will give you just a minute to wind up.
    Mr. Osei-Mensah 2:40 p.m.
    Mr. Speaker, then I am going to tackle only one aspect of the policy initiative that dazzled some people and they started calling the Budget Awam. Mr. Speaker, one of the policy initiatives was diversifying our sources of finance. Mr. Speaker, many governments have tried for several years to disentangle themselves from the conditionalities of the International Monetary Fund (IMF) and
    1891 Government's Financial 29 Nov. 2006
    because of poor economic policies, they were unable to do that.
    But with the good policies, the prudent socio-economic policies of this Government, in six years, this Government is weaning itself from the financial support of the IMF -- [Hear! Hear!] -- and restricting itself, Mr. Speaker, only to the Fund's policy support instruments. That is to say that where we need advice from them on our policy issues, then we can go to the IMF. But we are weaning ourselves from the IMF's financial support policy.
    Mr. Speaker, it was what dazzled my hon. Colleagues on the other side and they thought it was not possible so they started calling it Awam because they could not do it for twenty good years and we have used six years and we have done it -- [Hear! Hear!] -- This Budget is a golden jubilee budget. We have given them something to celebrate the Fiftieth Anniversary; Ghanaians have been given something.
    This Budget is a renaissance of the economic policies of this country and it is going to move us into middle income status. We invite them to join us fully in the Fiftieth Anniversary after this smooth budget had been introduced to this august House.
    Mr. Emmanuel K. Bandua (NDC -- Biakoye) 2:40 p.m.
    Mr. Speaker, thank you for the opportunity to contribute to the motion on the floor. Indeed, reading through the Budget, one gets the impression that the Government has not given the housing sector the attention it deserves. This is because over the years -- I will rather quote straight from the 2007 Budget, page 112, paragraph 511.
    “The final draft of the Housing Policy is being fine-tuned for submission to the Ministry by the consultant by the end of November 2006. The report
    will then be submitted to Cabinet for consideration and approval.”
    Mr. Speaker, it is indeed very interesting that for a very important sector like the housing sector, for the past six years that this House has been in power, it has not found it necessary to put in place a policy that it can follow consistently.
    Mr. Speaker, this indicates the actual way in which this housing sector is being run. I believe that it is not in the interest of the general public that for an important sector like housing, there is no definite policy for this particular sector.
    Mr. Frederick Opare-Ansah -- rose
    Mr. First Deputy Speaker 2:40 p.m.
    Hon.
    Member for Suhum, are you on a point of order?
    Mr. Opare-Ansah 2:40 p.m.
    That is so --
    Mr. First Deputy Speaker 2:40 p.m.
    Somebody
    is on the floor. Please, can you take your seat. We do not do it that way. You wait. I have given somebody the opportunity. Maybe, he is going to raise the point that you want to raise. So please, allow him.
    Mr. Opare-Ansah 2:40 p.m.
    Mr. Speaker, the hon. Member on the other side is misleading this House. He sought to give the impression that this is the only Government that does not have any policy on housing. Mr. Speaker, if he checks from the BRI, he will find that this particular policy had been on the drawing board for twenty-one years.
    Mr. First Deputy Speaker 2:40 p.m.
    Hon. Member, I think you are out of order. I thought you were going to say that the Government has a policy on housing. But if you are going to say that he has not talked about others which did not have
    housing policies then you are out of order. So please, can you take your seat.
    Hon. Member for Biakoye, continue.
    Mr. Bandua 2:50 p.m.
    Thank you, Mr. Speaker. Indeed, if for these years we do not have any policy, I doubt what support basis it will be for us. In any case, we are not very sure if this policy would be put in place before the end of the term of this Government. The Government has got only two years to go and all indications are that it will be going on perpetual retirement. And I am beginning to wonder whether for the rest of the two years, the policy that should be put in place can be of any effect to the nation. In any case, I would urge the Government to put in place as a matter of urgency something - [Interruption.]
    Dr. A. A. Osei 2:50 p.m.
    On a point of order. Mr. Speaker, my good Friend from Biakoye read a sentence for us, from page 112. I think that he is not being truthful to this House. He should have gone on to read paragraph 512. Mr. Speaker, with your indulgence, because he is misleading this House, I would like to -
    Mr. First Deputy Speaker 2:50 p.m.
    How is he misleading?
    Dr. A. A. Osei 2:50 p.m.
    Because he said the Government has not done anything on housing, Mr. Speaker; he conveniently did not read 512. Mr. Speaker, with your kind indulgence I would like to read:
    “Mr. Speaker, in line with Government policy to provide safe, decent and affordable housing for Ghanaians, the Ministry continued the construction of 1,138 flats at Borteyman, Nungua. Construction of 1,400 flats at Kpone in the Greater Accra Region and 1,192 flats at Asokore Mampong . . .”
    Mr. Speaker, if this Government has not done anything on housing, how could she, in the same breath, be constructing all these houses? So he was only misleading the House by inferring that nothing has been done under housing. So if he can kindly withdraw.
    MR. SECOND DEPUTY SPEAKER
    Mr. Bandua 2:50 p.m.
    Mr. Speaker, indeed, I did not say that nothing has been done in housing. He is saying that there is a policy in place but this is not written in the Budget. The Budget says that the final draft is yet to be ready. So it means that the Ministry, as at the moment, is being run on an ad hoc basis. That is the point I want to establish. Once there is no policy in place it means that the housing sector is being run on - [Interruptions.]
    Mr. Second Deputy Speaker 2:50 p.m.
    Order! Order!
    Mr. Bandua 2:50 p.m.
    Whether or not houses are being put at several places is not the issue. The issue is that there is no consistent policy guiding the Government as to the development of the housing sector. That is what should be established here and now.
    Mr. Speaker, I believe it is very important that there should be a policy that would guide the Government in the way it goes about the development of the housing sector, because housing is a very important sector of the economy and many people are suffering because of lack of housing.
    Mr. Frederick Opare-Ansah 2:50 p.m.
    On a point of order. Mr. Speaker, it will interest the hon. Member to know that the current policy which is in its final stages was actually started in 1985 and it was only
    Mr. Bandua 2:50 p.m.
    Mr. Speaker, that is not the issue. The issue is that they have been sleeping all these years; for the past six years that they have been in office. That is what I am saying.
    Mr. Speaker, if you look at paragraph 513, page 113, there is another statement in this Budget which says, and with your permission I read:
    “Mr. Speaker, the review of the Rent Act of 1963 (Act 220) is ongoing and the final draft document is ready for final stakeholders consultations in November 2006. The final draft will then be submitted to Cabinet and Parliament for consideration and approval.”
    Mr. Speaker, indeed in the 2006 Budget, a similar statement was made - [Interruptions.] You want me to give you the place? I can give you the place. Yes, 2006 Budget, page 168, paragraph 541, a similar thing was put in place yet as at now the Rent Act has not yet been put in place.
    Mr. Kofi Frimpong 2:50 p.m.
    On a point of order. Mr. Speaker, my good Friend on the other side was saying that he wanted to quote from page 168 of the 2006 Budget. Mr. Speaker, this august House would want to have empirical evidence to support our debates. So I want him to quote the facts from the 2006 Budget, as he is claiming. Otherwise, he should withdraw the sweeping statements. If he does not have a copy, let us send him a copy.
    Mr. Bandua 2:50 p.m.
    Mr. Speaker, with your permission I want to quote the portion I mentioned. This is on page 168, paragraph 541; and this is what it says:
    “541. Mr. Speaker, the Rent Act of 1963 (Act 220) is being reviewed for onward submission to Parliament.”
    Mr. Second Deputy Speaker 2:50 p.m.
    Order! Order! Hon. Member, if you raise a point of order, you should pay attention.
    Mr. Bandua 2:50 p.m.
    Mr. Speaker, the problem about housing is indeed a very serious one and people are really suffering. So I am making an urgent appeal to the Government to try as much as possible redo the Rent Act and bring it before us for the necessary legislation to be passed.
    Secondly, I would wish to appeal to the Government to put in place a process that will ensure that the taking of rent advance is abolished so that tenants can have some respite.
    rose
    Mr. Second Deputy Speaker 2:50 p.m.
    You have a point of order against him? Very well, let us see your point of order. Oh! It is against the Speaker, right?
    Mr. Ayariga 2:50 p.m.
    Mr. Speaker, I am drawing your attention to Standing Order 48. Mr. Speaker, there is no quorum in the House. They have brought the Budget, but they are not even interested in debating that Budget. So Mr. Speaker, if within the time stated under Order 48 we are unable to marshal a quorum, we are required by that Order to adjourn.
    Mr. A.O. Aidooh 2:50 p.m.
    Mr. Speaker, my understanding is that hon. Members can retire and refresh themselves and come back. That was the understanding reached at the Business Committee meeting, that Members can retire or leave the Chamber to refresh themselves; and my colleague was there at the Business Committee meeting. That was the decision.
    Mr. Second Deputy Speaker 2:50 p.m.
    In any case, the bell should be rung for those outside to come in. Please, can you conclude?
    Mr. Bandua 2:50 p.m.
    Mr. Speaker, one of the greatest problems facing the housing sector is the proliferation of slums especially in the cities. I will also appeal to the Government to strengthen the Town and Country Planning Department so that they are able to properly monitor these areas, so that floods are not repeated in these various localities, especially in the cities. I also urge the Government to try and relocate the squatters at Sodom and Gomorrah, New Fadama, so that the Korle Lagoon Ecological Restoration Project will proceed as fast as possible.
    With these few words, Mr. Speaker, I
    thank you for giving me the opportunity to contribute to the debate on the Budget Statement for 2007.
    Mr. Second Deputy Speaker 2:50 p.m.
    Let us take the hon. Member for Ahafo Ano South.
    Mr. S. K. B. Manu (NPP -- Ahafo Ano South) 3 p.m.
    Mr. Speaker, I rise to contribute to the motion on the floor and in so doing I would like to concern myself with that aspect of the Budget which deals with human resource development.
    It has been said and rightly so that a nation's development is directly proportional to its human resource development. Consequently, the main thrust of the Government's Budget is to ensure the development of the human resource base of this country through its educational policy.
    Mr. Speaker, if we look at the education policy of this country we see that this Government, mindful of the fact that pre- school education is very important to the development of the individual, has come up with a policy to mainstream the pre- school system into the mainstream. And by that it has started with the construction of infrastructure that will enable the mainstreaming of the pre-school system into the main primary school education system in the country. Under the basic education system the Ministry has collaborated with District Assemblies and the private sector to provide infrastructure.
    Mr. Speaker, if you go round the country, as the Committee that I chair did recently, you will discover that a lot of infrastructural development are underway to accommodate the growing numbers of pupils in the schools as a result
    1899 Government's Financial 29 Nov. 2006 1901 Government's Financial 29 Nov. 2006
    of the Capitation Grant and the School Feeding Programme instituted by the Government.
    Mr. Speaker, as a result of this, enrolment rate for pre-school has risen from 60.14 per cent in 2004/2005 academic year to 75.2 per cent in the 2005/2006 academic year -- a tremendous increase of 16 per cent in enrolment. Mr. Speaker, this is directing us towards the achievement of the Millennium Development Goals that this country is committed to achieving by the year 2015.
    Mr. Speaker, in addition to this, the
    gross enrolment rate has also grown from 87.5 per cent in 2005 to 92.7 per cent in 2006 and gender parity index has also grown from 0.93 per cent to 0.95 per cent.
    Mr. Speaker, it needs to be stated that a total amount of ¢129.5 billion was expended as capitation grant in public basic schools Mr. Speaker, this is an empirical evidence of what this Government said in last year's Budget, that it was committed to human resource development which it saw as a key component of the development of this nation.
    Mr. Speaker, that aside, the Government
    has spent ¢28.31 billion to conduct the BECE examination in this country. Mr. Speaker, when people get up and they say the Government has not put money in the Ghanaian's pocket, these are some of the structures Government has put in place to assist the Ghanaian. This amount that Government paid could have been paid by parents but Government absorbed this to lessen the burden on parents.
    Mr. Second Deputy Speaker 3 p.m.
    Hon.
    Member for Bawku Central, do you have
    a point of order to raise?
    Mr. Ayariga 3 p.m.
    Mr. Speaker, to say
    that because Government has supported the funding of BECE examinations it is all right to conclude that Government has put money in people's pocket is very misleading.
    Mr. Speaker, in the first place, there is a constitutional obligation as far as possible to ensure free education, even if progressive. So if Government is taking a higher share of the cost of providing either basic or tertiary education, it is only consistent with the constitutional obligation of Government and that cannot lead to the conclusion that Government is putting more money into the pockets of parents. There is nothing to indicate that if Government had not funded it parents would have been able on their own to fund it; and therefore the funding coming from Government enables parents to save money. Mr. Speaker, that is a misleading statement.
    Mr. Second Deputy Speaker 3 p.m.
    Hon.
    Member for Bawku Central, you see, if you go along these arguments you will have no point of order at all. The fact that it is in accordance with the Constitution does not mean that what he is saying is a lie. Please, go on.
    Mr. Manu 3 p.m.
    Mr. Speaker, I have not
    Mr. Second Deputy Speaker 3 p.m.
    In view of the time constraint, can you please go on.
    Mr. Manu 3 p.m.
    Mr. Speaker, as a measure
    to expand facilities to meet the growing demand of pupils, Government has constructed 65 six-classroom units and 82 classrooms as a way of accommodating the growing numbers that have emanated from the Capitation Grant and the School Feeding Programme. Mr. Speaker, this
    Mr. Ayariga 3 p.m.
    Mr. Speaker, the
    hon. Member said other governments ignored the Constitution. Mr. Speaker, this is clearly misleading. It is not true that any other governments ignored this Constitution. Other governments respected the provisions of the Constitution. With particular reference to the provisions that he is talking about, there was a timeframe within which some of those constitutional requirements were supposed to have been met,.and that time frame happened to have caught up with the NPP in Government. It is not that other people ignored those constitutional provisions.
    Mr. Speaker, I think he should withdraw that statement.
    Mr. Manu 3 p.m.
    Mr. Speaker, age is a
    factor here. I saw Dr. Kwame Nkrumah regime which gave free education but this Constitution was not in place. So an earlier government had given free education. Subsequent governments, if they were mindful of giving Ghanaians education, could have followed suit. They did not need to have waited for this Constitution to come into force.
    Mr. Inusah Fuseini 3 p.m.
    Mr. Speaker,
    in fact, this is a country of laws and the Constitution clearly provided for the time-frame within which education could be made free by the intervention of Parliament. So it is wrong for the hon. Member to suggest that other governments could have in ignorance or in clear
    violation of the constitutional provisions declared free education. Mr. Speaker, the Constitution under which we are operating clearly provides that it is Parliament which will enact laws to make education free at all levels.
    Mr. Second Deputy Speaker 3 p.m.
    Hon.
    Member for Tamale Central, the hon. Member said that the CPP Government did what the Constitution is saying even though this Constitution was not in force. That is what he was saying. Please, can you go on.
    Mr. Manu 3 p.m.
    Mr. Speaker, to continue,
    Mr. Yieleh Chireh 3:10 a.m.
    Mr. Speaker, my hon. Friend has made serious statements. I was in the Government that started the Free Compulsory Universal Basic Education (FCUBE) programme and in it, all these things he is talking about were programmed and were being implemented incrementally. The Constitution also says that as far as possible -- Today as he is talking, how many people are getting the free education he is talking about? [Interruption.] Let us get it clear that the argument, apportioning blame when there is no need for it, does not help this country.
    But what is important also is how many people today have free, compulsory, universal basic education against those constraints. He is talking about two schools in every district being given free meals, and he is talking about thirty thousand cedis? Is it thirty thousand cedis that can make somebody go to school and learn?
    Honestly, if we are talking about free compulsory education, as at today, the number is insignificant. Only a few days ago, one of the non-governmental
    Mr. Second Deputy Speaker 3:10 a.m.
    Hon.
    Member, all you need to say is that you also did something at the time he is talking about. But he says that it is being implemented, he has not said that it has been completed to the full. Hon. Member, take note that they also did something.
    Mr. Manu 3:10 a.m.
    Yes, even the creation
    of the world was initiated by them. [Interruption]-- Mr. Speaker, you would agree with me that -- [Interruption.]
    Mr. Ocran 3:10 a.m.
    Mr. Speaker, we have been
    keeping our cool but such outrageous statements should not be allowed -- [Interruption] -- No, honestly, such outrageous statements should not be allowed. We have kept our cool here; we stayed here, whilst all of them were sitting outside, to be working on this Budget. He must withdraw his statement.
    Mr. Second Deputy Speaker 3:10 a.m.
    Hon. Member, the hon. Member for Jomoro takes exception to the statement that even they created the world. He wants you to withdraw that.
    Mr. Manu 3:10 a.m.
    If that is what he heard,
    that is not what I said. I said the creation of the world was initiated by them. I did not say they created the world.
    Mr. Second Deputy Speaker 3:10 a.m.
    Well,
    he is against that.
    Mr. Manu 3:10 a.m.
    If he is uncomfortable
    with that, be that withdrawn. Mr. Speaker, we may all agree that the teacher is an important mover in the education enterprise. As a result of this, Mr. Speaker, the NPP Government, under the Presidency of His Excellency John Agyekum Kufuor, has not lost sight of the importance of teacher education in this country.
    rose
    Mr. Second Deputy Speaker 3:10 a.m.
    Hon.
    Gidisu, do you have a point of order?
    Mr. J. K. Gidisu 3:10 a.m.
    Yes, Mr. Speaker.
    Mr. Speaker, the hon. Chairman of the Education Committee should identify those areas he is talking about -- vehicles to a targeted group for teacher education and improving the quality of education. Mr. Speaker, I thought we were going to use the grounds for this debate to talk about issues, not about quantifying education but improving the quality of education. And for him to be coming out with those things is really misleading the generality of the House.
    Mr. Second Deputy Speaker 3:10 a.m.
    Hon.
    Gidisu, this one is not a point of order. He is expressing his views and you have not said what he has said is a lie. Please, go on.
    Mr. Manu 3:10 a.m.
    Mr. Speaker, when people
    want to prove that having changed somebody, they want to prove a point, this is what happens. Mr. Speaker, what I said is that, Government, in recognition of the importance of teacher education in the education enterprise, is doing all that it can to promote teacher education. And
    1907 Government's Financial 29 Nov. 2006
    Mr. Francis Agbotse 3:10 a.m.
    Mr. Speaker,
    in enumerating those achievements, he should give credit to the GETFund -- [Interruption] -- and the people who set up the GETFund; and all those buses are from the GETFund.
    Mr. Second Deputy Speaker 3:10 a.m.
    Hon.
    Member for Ho West, you are out of order.
    Mr. Manu 3:10 a.m.
    Mr. Speaker, these buses
    have been provided so that teacher trainees in Teacher Training Colleges can have buses to go on study tours as well as teaching practices, and this would go to improve upon quality of teaching when those teacher trainees finally come out as teachers and go into our schools.
    Mr. Speaker, as I stated earlier,
    Government is not looking at only teacher training colleges. At the tertiary level, the Government has provided buses to university students to help them commute from one end to another. The five old universities have had theirs; eleven have been given to private universities. Aside of this, students of private universities are enjoying from the Students' Loan Trust. Government has also waived taxes on materials imported to the schools to help educate the students of those private universities.
    Mr. Speaker, this goes to demonstrate practically, Government's commitment to education in this country.
    Mr. Speaker, now, the GETFund. We
    rose
    Mr. Second Deputy Speaker 3:10 a.m.
    Hon.
    Member for Bawku Central, what do you say?
    Mr. Ayariga 3:10 a.m.
    Mr. Speaker, the hon.
    Mr. Second Deputy Speaker 3:10 a.m.
    Hon.
    Member, what are you really doing? Hon. Member for Bawku Central, you have not addressed your point of order at all. Hon. Member, please go on.
    Mr. Manu 3:10 a.m.
    Mr. Speaker, furthermore,
    Government has posted eighteen thousand, nine hundred National Service Persons into the teaching field to augment the numerical strength of teachers in bringing about quality education in this country.
    Mr. Chireh 3:20 p.m.
    On a point of order. Mr.
    Speaker, my point of order is about factual statements. The hon. Member who is contributing says that private university students are enjoying the Students Loan Trust. I know for a fact that this loan trust is not in operation so to use the word “enjoying”, not that they may enjoy but that they are enjoying is factually
    1909 Government's Financial 29 Nov. 2006
    Ms Theresa A. Tagoe 3:20 p.m.
    Mr. Speaker,
    the hon. Member who spoke last is misleading the House. Just two days ago I signed papers for my nephew who is a student at Seventh Day Adventist (SDA) University, for Social Security and National Insurance Trust (SSNIT) loan.
    Mr. Manu 3:20 p.m.
    Mr. Speaker, the SSNIT Loans Scheme will soon be replaced by the Loan Trust and since they are enjoying the SSNIT Loans Scheme when it is transformed into the Loan Trust they will equally enjoy.
    The point I was making about housing
    Mr. Kofi Frimpong 3:20 p.m.
    On a point of order. Mr. Speaker, I am rising on a point of information. Mr. Speaker, the hon. Members on the other side were alluding to the fact that had it not been the Ghana Education Trust (GET) Fund we would not have been able to purchase buses for the universities.
    Mr. Speaker, I want to draw the attention of the whole House to the fact that not a single pesewa was paid into the GETFund account during their time. They did not pay anything into the account. When they were collecting the money they were misappropriating it. It was the NPP Government that started paying moneys into the GETFund account.
    Mr. I.A.B. Fuseini 3:20 p.m.
    Mr. Speaker, it
    appears the hon. Member who just spoke was not actually listening to the objections that we raised, or he did not simply understand the objection. The objection was that the buses were purchased from the GETFund.
    Mr. Second Deputy Speaker 3:20 p.m.
    Hon.
    Member for Ahafo Ano South, please go on and conclude.
    Mr. Manu 3:20 p.m.
    Mr. Speaker, I would
    like to conclude on the note that the GET Fund and the Catholic Fund have helped tremendously in equipping polytechnic institutions with equipment. However, I would like to call on Government and the Ministry of Education, Sports and Science for that matter, to turn attention to the Kumasi branch of the University of Education, Winneba.
    The workshop in that institution is an apology of a workshop and the earlier money was allocated to them to be enable them train our technologists in that institution the better it would be to further the cause of this Government in training technology-based students who would come out and help advance the cause of this nation towards industrialization.
    Mr. Speaker, finally, let me observe that
    Mr. Chireh 3:20 p.m.
    On a point of order. Mr. Speaker, we are talking about the political history of this country and during the Nkrumah regime there was a group called the “Veranda boys”. Now, if in the history of this country a group was called Veranda Boys, they were not children, they were not boys and girls who were picked as veranda boys, these were elderly people who had taken part in political activities during the Convention's People Party (CPP) time and who regrouped to support a good course.
    1911 Government's Financial 29 Nov. 2006
    Mr. Second Deputy Speaker 3:20 p.m.
    Hon. Member, take that on board and wind up.
    Mr. Manu 3:20 p.m.
    Mr. Speaker, the most important thing was that when we came back from the campaign with those veranda boys and girls we left them on the verandas and climbed into our storey buildings to spend our nights soundly there, while they were on the verandas.
    Mr. Ayariga 3:20 p.m.
    Mr. Speaker, perhaps that is why after coming back from the campaign they also want to build mansions for themselves.
    Mr. Second Deputy Speaker 3:20 p.m.
    Hon. Members, I can appreciate that tiredness is setting in but that does not mean we should not end the matter with the seriousness it deserves. Yes, I have taken note of your earlier decision, but I have seen people trooping in after the bell had been rung; so please go on.
    Mr. Manu 3:20 p.m.
    Mr. Speaker, last year the President talked about good neigbourliness. Practically this Govern- ment has set aside three teacher-training colleges to train teachers in the teaching of the French language. Mr. Speaker, given the setting that Ghana finds itself within the West Africa Sub-region French is the
    Mr. I. M. Abass 3:20 p.m.
    On a point of order. Mr. Speaker, the hon. Member says that this Government has set aside three training colleges for the teaching of French. Indeed, I am aware that there have been more than three teacher- training colleges that have been teaching French for quite a long time. I want to know what these three teacher training colleges are. He should tell us and let us know whether they are different from the existing teacher training colleges that were already teaching French.
    Mr. S. K. B. Manu 3:30 p.m.
    Mr. Speaker, I am a product of one of such colleges and I speak on authority and as somebody who benefited from that policy. The three colleges that are now set aside to teach French are my alma mater -- Mt. Mary College, Wesley College and St. John Bosco in the Upper East Region. Mr. Speaker, these teacher-training colleges have been in existence but specially -- [Interruption.]
    Mr. Ibn Mohammed Abass -- rose
    -- 3:30 p.m.
    Mr. Second Deputy Speaker 3:30 p.m.
    Hon.
    Member, you raised a point of clarification and he provided the answer. Let us see what your further concern is.
    Mr. Abass 3:30 p.m.
    I think that from what the
    hon. Member has said, he has accepted the fact that he has misled the House because Mt. Mary has been teaching French, not today. For many years now, Mt. Mary has been teaching French. Since the 1970s Mt. Mary had been teaching French.
    1913 Government's Financial 29 Nov. 2006
    Mr. Manu 3:30 p.m.
    Mr. Speaker, I mentioned
    three colleges. He argued about one, what about the two? When did they start teaching French? Please, facts are facts; one cannot run away from them. And I am saying that these colleges have been set aside to teach French as special colleges. The former Director-General of Education is here to attest to what I am saying. And I am speaking on authority.
    Mr. Alex N. Tettey-Enyo 3:30 p.m.
    Mr. Speaker,
    my hon. Friend has drawn me into this issue to correct the misleading facts which he wanted this House to believe. These training colleges, as he has said, he even trained in one of them, the two others were approved before 2000. And therefore the approval made for these training colleges to teach French is not an issue which was introduced by the NPP Government.
    Mr. Manu 3:30 p.m.
    There is difference between
    Mr. Second Deputy Speaker 3:30 p.m.
    Order!
    Order! I do not see the need to belabour this point. What is clear is that some attention is being focused on those three institutions. Now, from what the hon. Member for Ada, (the former Director- General of Education) has said, it means that even as at the time, before 2000, when they were so designated, they were already teaching French.
    So what it means, if it is being argued that the set-aside that the hon. Member for Ahafo Ano South is indicating -- He did say that he is being challenged that it is not like this is starting anew and that they were teaching French in the past. If he has said that I am saying that even as at the time that former Director-General is saying that the approval was given for them to teach French, they were already teaching French.
    Well, whatever be the case, all I
    am trying to say is that you can have institutions teaching something and in order to enhance their capacity to deal with it even better, certain facilities can be provided. So the hon. Member for Ahafo Ano South is not sinning in that statement. If he says that they have been set aside, it means that they are being recognized to be equipped better to teach the language, and I do not think we should belabour this point at all. This is not a point to belabour.
    Can you please go on, hon. Member for
    Ahafo Ano South.
    Mr. Manu 3:30 p.m.
    Thank you, Mr. Speaker.
    The thrust of my argument is that French is being given attention and I urge Ghanaians to embrace the teaching and learning of the language because it will go to enhance good neighbourliness with our neighbours and it will also enhance the chances of Ghanaians within the ECOWAS sub- region when it comes to appointments.
    Recently when we went to the ECOWAS Parliament, hon. Colleagues who went with us, saw the importance of the French language in our daily dealings with our colleagues in the sub-region. What I am appealing to the Government to do is that in order to attract more teachers to be trained as French teachers, the Government must make the teaching of French a little more attractive by sending them on short courses, as was the case during my time.
    We had the chance of studying in Dakar University and Saint-Etienne University in France and this motivated us. I also pray the Government, if it were possible, to make the study of French compulsory for at least those at the basic level of our educational system so that at least when one comes out of our basic institutions, one can speak French, to buy bread or to ask for water when one travels to one of the French-speaking countries.
    On this note, Mr. Speaker, I want
    1915 Government's Financial 29 Nov. 2006
    Mr. Second Deputy Speaker 3:30 p.m.
    Hon.
    Members, we still have a few hon. Members who wish to contribute to this and tomorrow there is still opportunity for this to happen. On the Minority side, I still have two names who have to speak and then on the Majority side, three more names.
    But there is this Insurance Bill at the Consideration Stage on which I understand substantial agreement has been reached and within just a few minutes we could wind it up. So we could take that and suspend the debate on the Budget till tomorrow, when those who have not spoken will have the chance to speak and maybe the debate will conclude.
    Hon. Chairman, let us know; I understand you have come to some agreement about the amendments that have been listed here. Let us see what you have agreed on so that we could speedily dispose of the matter.
    Nii Adu Mante: Mr. Speaker, I do not know where you want us to start from.
    Mr. Second Deputy Speaker 3:30 p.m.
    Well, let us start from item (i).
    Nii Adu Mante: Mr. Speaker, in that case, may I say that we continue from clause 3.
    Mr. Second Deputy Speaker 3:30 p.m.
    I understand you have come to some agreement of dropping some -- So that is
    the picture I want you to give the House.
    BILLS -- CONSIDERATION 3:30 p.m.
    STAGE 3:30 p.m.
  • [Resumption of Consideration from 28/11/06]
    • Mr. Second Deputy Speaker 3:40 p.m.
    Please, you have moved the amendment, have you not?.
    Nii Adu Mante: Mr. Speaker, what
    I am saying is that, we proposed an amendment to clause 3 by deleting subclause 1 and substituting the same with what is captured on pages 5 and 6, from (a) to (g). We are re-composing the whole Commission.
    Mr. Speaker, you would notice that the original composition is a bit confusing. We are therefore re-composing it and the numbers there would be up to about seven and not as has been originally captured on pages 9 and 10 of the Bill.
    Mr. J. Y. Chireh 3:40 p.m.
    Mr. Speaker, I think
    that even on the first day we agreed on this except (d). Because if you read (d), it says: “one person with qualification and practice in finance”; and the original idea was that since we are referring to other professional bodies nominating -- Do we also assign somebody to nominate this person or that person or they should be nominated by the President, in which case the two persons -- instead of the (d), two persons nominated by the President: one of whom should have this qualification.
    This was the point that we were debating; otherwise we agreed. The original argument was that it was just a matter of deleting those repetitions in the original draft. So I think that apart from this, I support the amendment as it is.
    Mr. Second Deputy Speaker 3:40 p.m.
    Hon.
    Chairman, can we settle on that in respect of (d)?
    Nii Adu Mante: Mr. Speaker, the way it has been captured in (d), “one person with qualification and practice in finance”, it gives much more latitude to the appointing authority and does not fix it to one particular group of persons. So the President can appoint from the private sector or the public sector any other person who has the requisite qualification and practice in finance. So I think the way it has been captured here is enough to serve our purpose.
    Mr. Second Deputy Speaker 3:40 p.m.
    Hon.
    Yieleh Chireh, are you satisfied with that?
    Mr. Chireh 3:40 p.m.
    Yes, Mr. Speaker.
    Question put and amendment agreed to.
    Clause 3 as amended ordered to stand part of the Bill.
    Mr. I. A. B. Fuseini 3:40 p.m.
    Mr. Speaker, I do not know whether you would allow me to follow the amendment in a certain sequence.
    Mr. Second Deputy Speaker 3:40 p.m.
    Well,
    I see that the next item is clause 17, I understand that on the other clauses the question has been put for them to stand part of the Bill. So we go to Clause 17.
    Clause 17 -- Levies payable to the Commission.
    Mr. Fuseini 3:40 p.m.
    Mr. Speaker, may I crave
    your indulgence to move clause 17 for and on behalf of my very good friend, hon. Haruna Iddrisu.
    Mr. Second Deputy Speaker 3:40 p.m.
    Very
    well.
    Mr. Fuseini 3:40 p.m.
    ( on behalf of Mr.
    Haruna Iddrisu): Mr. Speaker, I beg to move, clause 17, subclause (3), delete. Mr. Speaker, the rationale is that the formulation of clause 17, subclause (3) is likely to create an impression that inflation rate in Ghana cannot be ascertained at a go. This is because clause 17 (3) reads:
    “the rate of inflation in subsection (2) shall be the official rate of inflation given by the Bank of Ghana.”
    It seems to suggest that there could be different rates of inflation from different areas of the economy.
    Mr. Speaker, it is therefore proposed that this particular clause be deleted from the Bill and the power given to the Board to determine the inflation rate that would be applicable in insurance claim.
    Mr. Speaker, I so move for the deletion
    of the subclause.
    Mr. Second Deputy Speaker 3:40 p.m.
    Hon.
    Member, have you taken into consideration the usual situation where you have some non-governmental organizations (NGOs), civil society organizations, making analyses and giving different inflation rates? Have you taken that into consideration, and that there is the need therefore for everybody to be clear as to which inflation rate you are talking about?
    Mr. Fuseini 3:40 p.m.
    Mr. Speaker, I have
    Mr. Second Deputy Speaker 3:40 p.m.
    Very
    well, that is clear.
    Mr. A. O. Aidooh 3:40 p.m.
    Mr. Speaker, the
    amendment will be a danger to this Bill. Mr. Speaker to assume that there cannot be a different rate of inflation and therefore the Board must choose one would do a
    1919 Government's Financial 29 Nov. 2006
    Mr. Chireh 3:40 p.m.
    Mr. Speaker, the concerns
    of the mover of the amendment may be something else. But I know that in the past, the laws that we have passed, normally we pegged them to the treasury Bill announced by the Bank of Ghana. So if it is the rate of the treasury Bill, the Bank of Ghana alone is the one which determines whether we should peg it to 91 days or whatever day we want to. But what he is saying and what he is also concerned with is that, we know that inflation figures are given by the Ghana Statistical Service (GSS), Bank of Ghana also announces inflation rates -- the Monetary Policy Committee. And therefore, the style, as to what do we have to do with this -- So I would rather recommend that instead of putting it this way, we should peg it to the treasury Bill.
    Dr. A. A. Osei 3:40 p.m.
    Mr. Speaker, the
    Bank of Ghana does not provide official inflation numbers, the Bank of Ghana cannot provide those numbers, it uses what is given by GSS, they do have a separation. So the proper thing to do is to leave it at the official inflation numbers because that information is only given by the Ghana Statistical Service and not the treasury Bill rate. I think that the Bank of Ghana there is wrong and I agree with that; but if he wants official information, it is only the GSS that can provide the official numbers.
    So we can take out the Bank of Ghana and replace it with official inflation numbers.
    Mr. Fuseini 3:50 p.m.
    Mr. Speaker, I think that
    1921 Insurance Bill -- 29 Nov. 2006 Consider-

    I agree with him. That was our concern because we thought it could come from different areas. And if we would have an official inflation rate in Ghana that would be applicable to insurance business, so be it.

    Nii Adu Mante: Mr. Speaker, I have

    listened to my hon. Colleagues and I think that this is the way it should be couched. We would delete “Bank of Ghana” and insert “Ghana Statistical Service”.

    The Industry as it is, wants an official rate. They do not want rates to emerge from other sources. This is one industry that is so peculiar, different from other businesses in this country, and they want one rate that will guide them in their dealings. And the official rate normally declared by the Ghana Statistical Service (GSS), they want this to be inserted -- made expressly that it is the official rate coming from the Ghana Statistical Service that should be adopted to guide them in their dealings. So there is the need to insert Ghana Statistical Service as the official source to do their business.
    Dr. A. A. Osei 3:50 p.m.
    Mr. Speaker, unless he
    wants that done for emphasis. Officially, it is only the GSS that can provide official rates; so as long as we are saying official rates, then it is obvious.
    Nii Adu Mante: Mr. Speaker, you see
    Mr. Second Deputy Speaker 3:50 p.m.
    Hon.
    Chairman of the Committee, there is no confusion. The argument that is being put up is that Ghana has an institution which is responsible for providing this sort of information; she does not have multiple sources for this sort of information. Once you say “official”, it is known which state
    institution provides that information. So you make it simple by just saying that official information. That is the argument that is being put up.
    Nii Adu Mante: Mr. Speaker, you will
    Alhaji Sumani Abukari 3:50 p.m.
    Mr. Speaker,
    I do not know why the Chairman is trying to prolong his argument on this issue. Like the Deputy Minister for Finance and Economic Planning suggested, if we leave it at the official rate given, there is only one body that gives the official rate; and in this case, it is the Ghana Statistical Service. We do not have to add “Statistical Service” to show that they are going to give the rate.
    Mr. Speaker, let us just leave it as the
    official rate so that everybody knows that the prevailing official rate is the rate applicable on that day; simple as that.
    Mr. Second Deputy Speaker 3:50 p.m.
    The mover of the amendment accepts the proposition that it should just be official rates. Is that your position?
    Mr. Fuseni 3:50 p.m.
    Yes, Mr. Speaker.
    Question put and amendment agreed to.
    Clause 17 as amended ordered to stand part of the Bill.
    Clause 37 -- Restriction on contract office of offshore insurer.
    Mr. Yieleh Chireh 3:50 p.m.
    Mr. Speaker, clause 37, the Head Notes, reads:
    “Restriction on contract office of offshore insurer”. But if you read the whole clause, there is no reference to that; it is rather “Restriction on contract with offshore insurer”. The first subclause reads “Unless authorised by the Commission, a person shall not enter into a contract of insurance with an offshore insurer in respect of”. Therefore instead of “office of” it should be “with”. That is what I moved the motion that we should amend.
    Mr. Second Deputy Speaker 3:50 p.m.
    I hope hon. Members are following him.
    Question put and amendment agreed
    to. Clause 37 as amended ordered to stand
    part of the Bill.
    Mr. Second Deputy Speaker 3:50 p.m.
    Then we go to clause 53 -- hon. James Appietu- Ankrah. Is the hon. Member in the Chamber?
    Clause 53 -- Approval of licensee's reinsurance arrangements by Commission.
    Mr. K. K. Mensah 3:50 p.m.
    Mr. Speaker, I have his consent to present his case.
    Mr. Speaker, I beg to move, clause 53, subclause (2), delete and substitute the following:
    “Without limiting subsection (1) an insurer's reinsurance arrangements shall have regard to the local capacity available to insure the risk before recourse to overseas reinsurance.”
    The argument is this: If you do not have capacity in-house, then you can go outside. But there should be recourse to searching to ensure that the facilities are not locally available before reinsurance can be organised overseas.
    1923 Insurance Bill -- 29 Nov. 2006 Consider-
    Dr. A. A. Osei 3:50 p.m.
    Mr. Speaker, under normal circumstances, I would not have any objection, but in discussions with the Insurance Commission, it appears that what is being captured here is aptly and ably captured by the amendment in clause 55. The Insurance Commission would prefer that we look at the amendment being proposed to clause 55 rather than the one to clause 53.
    The language in clause 53 is a bit innocuous but clause 55 captures the intent of clause 53. So if we can step down clause 53, then clause 55 will take care of clause 53, and more. That is the advice from the Insurance Commission and I think it will satisfy the hon. Member -- that we do not mess up with clause 53 but take clause 55.
    Mr. Second Deputy Speaker 3:50 p.m.
    Hon. Mover of the amendment, would you want to drop this amendment in clause 53 and have clause 55's amendment to cure the defects that you are worried about? Is it agreeable to you?
    Mr. K. K. Mensah 3:50 p.m.
    Mr. Speaker, it is agreeable to me; so I withdraw clause 53 in favour of clause 55.
    Mr. Second Deputy Speaker 3:50 p.m.
    Very well, this amendment has been dropped; so we go to clause 55. You can then move the amendment there.
    Mr. A. O. Aidooh 3:50 p.m.
    Mr. Speaker, we have clause 53 (2) still standing in the Bill.
    Mr. Second Deputy Speaker 3:50 p.m.
    It has been deleted. Is that the understanding? Very well, so let us go to subclause (1) of clause 55. Hon. K. K. Mensah, you are standing in for the mover.
    Clause 55 -- Reinsurance of risks outside the country.
    1925 Insurance Bill 29 Nov. 2006 -- Consider-
    Mr. K. K. Mensah 4 p.m.
    Mr. Speaker, I beg to move, clause 55, subclause (1), line 1, delete, “as a reinsurer. The “subclause (1) will then read as follows:
    “An insurer shall not enter into any contract of reinsurance with any person other than another insurer whose licence is restricted to reinsurance business.”

    Nii Adu Mante: Mr. Speaker, I have no objection to the deletion of the phrase “as a re-insurer”, except to add at the end of that subclause the words, “except in the case of facultative reinsurance arrangement.”

    This kind of business is already going on; it is re-insurance between insurance companies and we would want this thing to be captured in this sub-paragraph. This is in agreement with the industry players.
    Dr. A. A. Osei 4 p.m.
    Mr. Speaker, I
    support the qualification being offered by the Chairman of the Committee. The Insurance Commission strongly agrees to this further amendment.
    Mr. A. O. Aidooh 4 p.m.
    Mr. Speaker, I
    do not seem to understand, because it will then mean that the insurer will be entering into a contract of re-insurance, as a re-insurer himself. Is that what they mean? I think that is why our Colleague has proposed that amendment. What we have done suggests that the insurance company will be entering into a contract of re-insurance with itself as the re-insurer and that is anomalous. That is why the amendment is well thought out.
    So I do not know what becomes of the amendment of this clause if we take on board what the Chairman is saying.
    Nii Adu Mante: Mr. Speaker, there is
    this business of re-insurance already going
    Mr. Second Deputy Speaker 4 p.m.
    No,
    what he is saying is that there seems to be an impression given that the one doing the re-insurance will be the re-insurer itself; that the company itself will become the re-insurer. So the company that seeks to re-insure because of the size of the liability becomes the re-insurer itself. That is the point he is raising.
    Nii Adu Mante: Mr. Speaker, I do
    Mr. Second Deputy Speaker 4 p.m.
    Hon. Chairman, usually an insurance company, because of the size of the liability, would do re-insurance to share the liability with another company. But he is saying that the wording as it is now, that is, taking into consideration your addition, will look as if in actual fact, the company is not re- insuring with another company but it is re-insuring with itself. So that the liability, the risk, still is retained by the company.
    Nii Adu Mante: Mr. Speaker, rather
    the insurance companies share, and this will allow them to continue sharing their risks.
    Mr. Second Deputy Speaker 4 p.m.
    Well, you are the mover of the amendment; let us hear what your view is. Do you accept the addition of those words?
    Mr. Krah Mensah 4 p.m.
    Mr. Speaker, it
    renders my amendment very ineffective, inoperative, so to speak. We are saying that nobody should re-insure except he has searched and searched well to find out that resources are available locally. But we are now tagging on to the clause that in the case of facultative insurance it should be allowed.
    Mr. Second Deputy Speaker 4 p.m.
    Let us hear the Deputy Minister for Finance and Economic Planning.
    Dr. A. A. Osei 4 p.m.
    Mr. Speaker, the
    Insurance Commission has just advised me that this is quite consistent with the best practice and that is why they made the exception. It is a practice that is going on. But they need to get the legal backing, and the expression used by my Chairman captures the import; it is acceptable to the Commission.
    Mr. Second Deputy Speaker 4 p.m.
    It is
    acceptable.
    Mr. Fuseini 4 p.m.
    Mr. Speaker, I support
    the amendment except to say that with the rendition, if we are seeking to take out “re-insurance”, then we should formulate the provision in such a way as to take out first before what we seek to do. And so it must be -- “Except in the case that it has been accepted, an insurer shall not enter into any contract of re-insurance with any person . . .” I am saying that instead of bringing “except” at the end, it must come forward. That is a better formulation.
    Mr. Second Deputy Speaker 4 p.m.
    It is a
    question of drafting that can be done and referred to the draftsman to put right.
    Mr. Fuseini 4 p.m.
    Very well, Mr.
    Speaker.
    Question put and amendment agreed
    to.
    Nii Adu Mante: Mr. Speaker, I beg
    to move, clause 55, add a new subclause as follows:
    “An insurer or re-insurer shall utilize all available local capacity in all insurance business originating from the local market before recourse to any overseas re-insurance.”
    But this subclause will take care of the concerns of my good Friend hon. Appietu Ankrah -- what he was trying to propose in clause clause 53.
    1927 Insurance Bill -- 29 Nov. 2006 Consider-
    Mr. Yieleh Chireh 4 p.m.
    Mr. Speaker,
    I beg to move, clause 169, subclause (2), paragraph (b), line 1, after “by” first occurrence, insert “a person”.
    Mr. Speaker, if you look at the original draft, in fact (a) was accepted yesterday; and 169 (2) (b), states: “by or by the representative of a person seeking legal advice from the lawyer”, or “so I thought that there must be a person. So it should be “by a person” or “by the representative of a person seeking legal advice from the lawyer…” This is why I propose that we insert “a person” after the first “by”.
    Mr. A. O. Aidooh 4 p.m.
    Mr. Speaker, I
    think the way it stands is all right and if we would retain his amendment we have to change some other words. It would read as follows:
    “by a person or by the representative of a person seeking legal advice
    . . .”.
    It is not different but may be it is clearer. But it is not different because “by or by a representative of a person seeking” imports the person after “by”.
    Mr. Fuseini 4 p.m.
    Mr. Speaker, I think that
    the way the rendition is, the second person must be qualified, must be defined. If we say “by a person” or “a represen-tative of a person”, -- we have not defined that person. So Mr. Speaker, I will support the amendment provided my good Friend will admit or agree to a change of the indefinite article “a” to a definite article “the”. That will refer to that person.
    Mr. Speaker, I am supporting it because it looks like if you do not insert “a person”, we will be omitting the definition of that adjective or noun that the “by” is supposed to define, as it was defined in clause 169, (2) (a) where the rendition was “by” and this House inserted “a client”.
    Mr. Speaker, I think that we should put
    “a person” there because we are seeking to say that where a person by himself appears before a lawyer or he appears before a lawyer by his representative, information that will come into the custody of the lawyer must be protected. That is what the rendition is seeking to do; that we protect the information that will come into the custody of a lawyer by a person who appears in person before the lawyer or by a person who appears as an authorized representative of that person.
    So Mr. Speaker, I will suggest a further amendment, that we insert “by a person or by the representative of that person seeking legal advice from a lawyer”.
    Mr. Second Deputy Speaker 4:10 p.m.
    What
    about using a pronoun, so that after we use “the person” you use “his” or “her”?
    Mr. Fuseini 4:10 p.m.
    Mr. Speaker, that is exactly what the amendment is intended to achieve. We want a reference to that earlier person.
    Mr. A. O. Aidooh 4:10 p.m.
    Mr. Speaker,
    in these matters, it is like we are doing interpretation of statutes. If after the first “by”, you put the words “or” up to “of” before “a person” into brackets, or you delete those words we will have this rendition, “by a person seeking legal advice”. That is it. If you omitted the words, “or by the representative of”, it makes better sense -- “by a person seeking legal advice”. And if you remove the brackets and you put the words back, you do not need another “person” there. It means “by” or “by the representative of a person” and that was why I said earlier that the word, “person” that follows the “a” is imported and inserted into “by”.
    So you do not need “a person” there again. If you took off those words, you would have perfect sense.
    Mr. Second Deputy Speaker 4:10 p.m.
    Hon.
    Mr. A. O. Aidooh 4:10 p.m.
    Therefore, the
    amendment is not necessary. That is the point I am making.
    rose
    Mr. Second Deputy Speaker 4:10 p.m.
    Let us
    hear you, hon. Member for Tamale North.
    Alhaji Abukari 4:10 p.m.
    Mr. Speaker,
    sincerely, I also think that the amendment is not necessary. It is quite straightforward; I do not know why we are seeking to amend it. “By or by the representative of a person” -- It shows clearly that the original “by” was by a person. This one is immediately imported there. It is not really necessary to put in another “by”. I think it should be left -- [Interruption] --
    Mr. Yieleh Chireh 4:10 p.m.
    Mr. Speaker, I
    think that this is not law. It is grammar and if you say that “by or by” why would you want to use two bys in a sentence? I want to know why you will do so -- Again, the point is that if you look at the grammar it is “by a person or by the representative of”. What he was seeking to amend, I do not have any objection to it; but you can-not have “by or by the representative”. It does not sound English. I was saying that it must be by a person himself or by his representative, whatever the point is. But the first “by” has no meaning if it is not followed by anything. So you just delete it.
    Mr. Second Deputy Speaker 4:10 p.m.
    Hon.
    Ossei Aidooh, you know, sometimes, some constructions lend themselves to a little bit of confusion although they are not essentially wrong. So if you say, “by a person or his/her representative” I think it would appear neater. Would that satisfy you, hon. Yieleh Chireh. Chairman of the Committee, do you follow that?
    Nii Adu Mante: Mr. Speaker, that
    will sound a bit better and it may appear a bit more elegant in reading “by a person or a representative of the person seeking legal advice”.
    Mr. Second Deputy Speaker 4:10 p.m.
    No,
    “by a person or his/her representative”?
    Nii Adu Mante: “Or his or her
    representative”?
    Mr. Second Deputy Speaker 4:10 p.m.
    That is
    right. So the amendment as agreed on now is -- [Interruption] --
    Mr. A. O. Aidooh 4:10 p.m.
    Mr. Speaker, I
    want to hear the whole rendition before you put the Question -- [Interruption ] --
    Mr. Second Deputy Speaker 4:10 p.m.
    Yes,
    the whole thing will be “by a person or
    his/her representative”.
    Mr. A. O. Aidooh 4:10 p.m.
    Mr. Speaker, the
    privilege belongs to the person seeking legal advice and so the information goes from him or his representative. The representative is not seeking legal advice.
    Mr. Second Deputy Speaker 4:10 p.m.
    But he
    can authorize somebody to represent him.
    Mr. A. O. Aidooh 4:10 p.m.
    Mr. Speaker, so
    it should be “by a person seeking legal advice or his/her representative”. That is what it should be.
    Mr. Second Deputy Speaker 4:10 p.m.
    All right, it is a question of drafting. The important thing is just to make it neat, and I think you are agreeable. So it is agreed in principle; the draftsman should put it in the language according to the amendment. Very well. So clause 169 -- [Interruption] --
    Nii Adu Mante: Mr. Speaker, you will notice that I was asking that we delete the words “or by the representative” to read “by a person” as has been said by the Deputy Majority Leader. All the same, we will leave everything to the draftsperson to put it in the proper language.
    Question put and amendment agreed to.
    Mr. Second Deputy Speaker 4:10 p.m.
    There is item 8 -- New Clause. Is it Chairman of the Committee or hon. Yieleh Chireh?
    Mr. Chireh 4:20 p.m.
    Mr. Speaker, before I move this amendment, I want us to look at what we are doing in this law. We are trying to provide a comprehensive law on insurance, more or less to codify insurance law. If you look at it, there is a key issue that has arisen which has led to an anomalous situation where we are saying PNDC Law 227, except section 52. So I looked at section 52 of PNDC Law 227, and the language there is not current with
    1931 Insurance Bill -- 29 Nov. 2006 Consider- 1933 Insurance Bill -- 29 Nov. 2006 Consider-
    the language here.
    Therefore, I have tried to recast that section 52 in conformity with this new law, so that the law we are looking for in insurance should not be tagged to some small section in a repealed law. I want comprehensiveness in the law. Therefore, I move, this new clause -- Insurance agents to be agents of insurers.

    This is very key because it has changed the relationships between those who fill forms on behalf of those who want to be insured and the insurer. It is so key that we should not tag it and leave it in some repealed law; that is why I have moved this amendment.

    So if you look at the rendition, it agrees entirely with the format of this Bill and I will recommend that instead of saying that we are repealing a law, but some sections, we must be frontal about it and make sure that it is inserted at the appropriate place. This Parliament should be making comprehensive laws, rather than be tagging them to other repealed laws, which will not make things good for us. I urge my hon. Colleagues to vote for the amendment.
    Mr. Second Deputy Speaker 4:20 p.m.
    First of
    all, you should have indicated clearly the position of your amendment. You should have said “add a new clause to clause 169 . . .” You want it to come under 169?
    Mr. Chireh 4:20 p.m.
    Mr. Speaker, I was
    advised and I verily believe so to be true, that when you are proposing a new clause you do not indicate the place.
    Mr. A. O. Aidooh 4:20 p.m.
    Mr. Speaker, the
    Bill I have here is not mine, but somebody has written here, under “repeals and savings”, in ink -- “except sections 51-57 of PNDC law 227. But for that, the whole law would have been repealed”.
    Mr. Speaker, I am personally opposed to this amendment because I do not see why the insurance agent who fills a proposal form for a proposed assured must become the agent of the insurance company. The information in the form is given by the person to be insured and then he signs the document to make it his document; so why do we make the agent the agent of the insurance company? Mr. Speaker, there is confusion in this area of the law.
    There are two schools of thought and the more popular one and the more current one is to make the insurance agent who completes the form for the assured who signs it to be the agent of the proposed assured, not of the company. This is because, Mr. Speaker, insurance contracts are based on good faith -- uberima fide. The information in the form is given by the proposed assured, never by the agent.
    So I want an explanation from my hon. Colleague as to why when the person to be insured gives the information to the agent (the agent fills the form for him based on the information given by the person to be insured) and signs the form accepting the form to be his document that be becomes the maker of the document, the agent ceases to be the agent of that person and is rather deemed to be the agent of the insurance company?
    In fact, I have bought for this matter a book on insurance law and I can tell the House that the better opinion and the more current thinking is that in these circumstances, where the agent fills the form for the proposed assured, he must be the agent of the assured who signs the document and not of the company.
    Mr. Chireh 4:20 p.m.
    Mr. Speaker, in fact, as I was saying, yesterday, the Chairman himself moved an amendment and what the hon. Member is talking about was what he said. He said “except section 52 of PNDC law 227”; and section 52 of PNDC law 227 is like this, and if you wish I may read it and also read mine. It is that one; but that one was referring to “chief agent” whereas our subsequent one is “agent” and “sub-agent”. So the language in that does not tally with the language that is being proposed.
    So it is the amendment that we accepted and I said look, “why do we not confront the thing frontally?” Otherwise, we have already agreed that it is part of the law -- this position that I am taking. So it makes it more comprehensive and it is in tune, in terms of language. That is what I am proposing.
    Mr. K. K. Mensah 4:20 p.m.
    Mr. Speaker, we had already dealt with this clause yesterday, and if you look at the Votes and Proceedings, page 50, we all agreed that we add the words “except section 52”. What my hon. Friend is doing here is just lifting section 52 of PNDC law 227 and fixing it into the present law that we are looking at.
    But what we are telling him - he is a new lawyer - is that we have a ‘repeals and savings' clause and that this section 52 will be captured there as a savings clause. So there is no need repeating verbatim except changing the word “notwithstanding” to “despite”.
    Mr. Second Deputy Speaker 4:20 p.m.
    I see that indeed, the Votes and Proceedings shows “Question Proposed -- debate arising; Question put and amendment agreed to.” The House has taken a decision on that.
    1935 Insurance Bill -- 29 Nov. 2006 Consider-
    Mr. Second Deputy Speaker 4:20 p.m.
    Very well.
    Mr. A. O. Aidooh 4:20 p.m.
    Mr. Speaker, I was not here yesterday but in my view -- what the Chairman did yesterday and what our hon. Colleague is doing are the same. If anything, he wants to have that clause in this Bill. Mr. Speaker, I think that that proposal is wrong. I am opposed to this amendment. There would be a conflict -- [Interruption.]
    Mr. Second Deputy Speaker 4:20 p.m.
    That was yesterday?
    Mr. A. O. Aidooh 4:20 p.m.
    No, I am opposing this amendment now. Even though I am not aware of what happened yesterday, I propose to have that repealed clause go through a Second Consideration Stage and then propose that the section created by the Chairman be deleted as well, for conformity. But for now, I am opposed to this amendment, because Mr. Speaker, he cannot convince us. I just want somebody to convince me why, as I narrated, the agent must be the agent of the insurer -- why, when I give you all the facts to fill the form?
    Mr. Speaker, therefore, I oppose this amendment. If I succeed, then I will go back to the Second Consideration Stage and have the Chairman's amendment yesterday deleted.
    Mr. Second Deputy Speaker 4:20 p.m.
    Hon. Member for Tema West, in the area of insurance in this country, generally people are very ignorant about these forms. The insurance people will just ask a few questions, fill them there for them, and that is it. People do not really critically examine the questions proposed to understand them.
    1937 Insurance Bill -- 29 Nov. 2006 Consider-
    So sometimes, you may even just take your phone and call and then they will fill the form for you and insure you. Anyway, you have your right to, of course, raise it for Second Consideration.
    Mr. Fuseini 4:20 p.m.
    Mr. Speaker, the Deputy Majority Leader is seeking clarification on section 52 of the PNDC law. Basically, I think that it is to fix liability. As he rightly said, insurance contracts are contracts uberima fide -- all disclosures are made in good faith. In the event that a disclosure has been made and that disclosure is used for a purpose to the detriment of the discloser, or the person whoso discloses the information, from whom does he make claims for damage? Where does he obtain the relief from?
    If you look at the rationale behind the PNDC law, it was to fix questions of liability. That was exactly the reason why it was fixed there. And I agree with him that there appears to be a movement that by reason of the fact that the person disclosing the information signs the form, the jurisprudential reasoning is that he admits that, that is his work and so he must be responsible. But the basis for the insertion of section 52 is just to fix liability in the event of a breach of the disclosure rules.
    Mr. A. O. Aidooh 4:20 p.m.
    Mr. Speaker, my hon. Colleague has added nothing new. I know the effect of that clause; I know. I want to know why. The fact that it was in PNDC law 227 does not make it sacrosanct. Mr. Speaker, I have asked my hon. Friend to tell the House why the agent must be the agent of the insurer as he has just conceded that all the facts upon which he filled the forms are given to him by the person to be insured. If there is any falsehood or misrepresentation
    in the document why must you for that reason fix the insurance company with liability when the person to be assured has deceived them?
    Mr. Chireh 4:30 p.m.
    Mr. Speaker, what I was
    trying to do was to have a comprehensive law. Indeed, the answer should be coming from the hon. Chairman who says I am a new lawyer. There is no new lawyer about this -- [Laughter.] The issue is about the fact that we have a largely illiterate society and insurance companies, you know, have always had a problem with this. If he needs what I am talking about -- We have already seen this thing. In fact, what I am doing now, I am doing this for this debate to carry on.
    This is because this was going to be a very good thing but some people in the industry resisted it as we are doing. For me, I think that as a lawmaking person, when the Bill is brought here I want understandable law in one place so that anybody can easily have access to it.
    I also think that instead of backdoor, saying “except 52”, we should confront it and if the debate indicates as to whether it is right or wrong, this House should take it. I think that there is merit in having it the way it is. This is because apart from the first clause, the forms are by the insurer. Everything there is by the insurer and the agent is the agent of the insurer who is the one who makes the proposal form. Therefore, we should fix the liability with that person.
    For me, I am convinced and I will vote for it, ten times over, that this issue -- The forms, the agent, everything about that thing is related to the insurer and not the assurer or the insured.
    Mr. Second Deputy Speaker 4:30 p.m.
    The one
    being proposed to be protected by the hon. Member for Wa West's amendment is the insured, the individual. The hon. Deputy Majority Leader's stand is to protect the insurance company.
    Mr. A. O. Aidooh 4:30 p.m.
    Mr. Speaker, it should lie where it properly belongs. It should lie where it must lie.
    Mr. Second Deputy Speaker 4:30 p.m.
    . The hon. Member for Wa West's proposal is to protect the insured.
    Alhaji Abukari 4:30 p.m.
    Mr. Speaker, I go completely with the hon. Member for Wa West (Mr. Yieleh Chireh). Mr. Speaker, even in this House, if one goes right now to the foyer there are about two insurance agents roaming round the place, trying to convince people to switch over from one insurance company to the other or to renew their insurance policies which are almost expired. These people come round with the insurance forms and they convince people.
    Mr. Speaker, when the new cars were given to us, if you had gone round you would have found about ten insurance agents there. These were agents of the insurance companies. They come with the insurance company's forms. They try to persuade people to patronize theirs because theirs is more ‘comprehensive'; it is cheaper and it is more reliable. They try to explain to you all the conditions there and why you must go with them. They assist you to complete this form.
    In fact, they just ask you questions and virtually complete the form for you. In the end you sign it for them. So they are actually sent to you by the insurance companies to campaign for business for the insurance companies. And they get commissions from the insurance companies.
    So Mr. Speaker, to al l intents
    and purposes, they are agents of the insurance companies and therefore they are representatives and must bear all consequences or risks that arise therefrom. And this is Parliament with educated people, so you can imagine what is going on in the illiterate public we have outside. The hon. Member for Wa West is bringing in this amendment to protect the populace. We cannot protect the insurance companies at the expense of the Ghanaian citizens. So I agree with his amendment.
    Mr. Second Deputy Speaker 4:30 p.m.
    What I see is that, in effect, we are doing Second Consideration of this Bill. This is because even if a Question was put and the amendment was agreed to and we are still debating it -- We have raised the issues and we are debating; it is the Second Consideration Stage that we are in.
    I have seen the hon. Member for Wa West's notice of amendment put under Second Consideration. I think that those that have to do with clause 5, and clause 109 can be taken now. The hon. Deputy Majority Leader's issue can also be taken now and we can vote on it.
    Mr. A. O. Aidooh 4:30 p.m.
    Mr. Speaker, I do not want to do this; I mean to interfere this way but I am happy that there are so many lawyers here. This book is about the law of insurance. Mr. Speaker, it is here that the agent, in filling in the answer ceases to be the agent of the insurers; and it is a case from Lloyds. The agent in filling the proposal form for the person to be insured ceases to be agent. So the argument that he is not the agent of the company does not arise at all. The law says that the moment he begins to fill the forms for the people assured, he ceases to be the agent of the insurance company.
    Dr. A. A. Osei 4:30 p.m.
    Mr. Speaker, I am listening to the esteemed lawyers here and I am beginning to get confused. Mr. Speaker, it appears that we are trying to seek a balance between protecting “people who are not very literate” and also trying
    1939 Insurance Bill -- 29 Nov. 2006 Consider-
    Mr. Second Deputy Speaker 4:30 p.m.
    I think the whole essence is to make sure that we have a very good law, especially when I see notice of further amendments to clauses 5 and 109. We could as well defer this so that at the Second Consideration Stage, we can complete this. I see that whilst it looks more attractive to be protecting the individual, the hon. Deputy Majority Leader is also looking at the law as it ought to be; whether it is the individual who suffers or the company. So you go and reflect over it -- the protection of the individual as against what the insurance law says.
    So I will put the Question on the Long Title of the Bill now.
    Long Title ordered to stand part of the Bill.
    Mr. Second Deputy Speaker 4:30 p.m.
    The remaining issues will be dealt with at the Second Consideration Stage. That is the end of the Consideration Stage of the Bill.
    And with the time being -- We are getting to five o'clock; the House stands adjourned till tomorrow at ten o'clock in the morning.
    ADJOURNMENT 4:30 p.m.
  • The House was adjourned at 4.48 p.m. till 30th November, 2006 at 10.00 a.m.