Debates of 15 Mar 2007

MR. SPEAKER
PRAYERS 10 a.m.
CORRECTION OF VOTES 10 a.m.
AND PROCEEDINGS AND 10 a.m.
THE OFFICIAL REPORT 10 a.m.
Mr. Speaker 10 a.m.
Order! Order! Correction of Votes and Proceedings, Wednesday, 14th March 2007 -- Pages 1, 2. . . 17. [No correction was made.]
Hon. Members, we have the Official
Report for Friday, 16th February 2007.
Item -- 3, Questions, Minister for the Interior. Question number 749 -- hon. Pele Abuga, Member of Parliament for Chiana/Paga.
Mr. A. W. G. Abayateye 10 a.m.
Mr. Speaker, the hon. Member has asked me to obtain your permission to ask the Question on his behalf.
Mr. Speaker 10 a.m.
Permission granted.
ORAL ANSWERS TO QUESTIONS 10 a.m.
MINISTRY OF THE INTERIOR 10 a.m.
Minister for the Interior (Mr. Albert Kan-Dapaah) 10 a.m.
Mr. Speaker, the Police Service appreciates the need for proper residential accommodation for officers in the border town of Paga. It is the intention of the police to put up residential accommodation at Paga as soon as on- going arrangements to procure funding for a major police accommodation project is finalized.
Mr. Abayateye 10 a.m.
Mr. Speaker, considering Paga's strategic position as a border town, is it not proper to treat it as an urgent situation?
Mr. Kan-Dapaah 10 a.m.
Yes, Mr. Speaker,
I could not agree more with my hon. Friend. It is quite a critical situation in an area which is very, very important. We do believe that the quickest way of solving the problem is to wait for this funding which we are seriously working on. But I do agree with him that it is of strategic importance that we do provide the accommodation in Paga.
Mr. Abayateye 10 a.m.
Mr. Speaker, I would like to ask the hon. Minister if he could be a bit definite; and by that I mean, when?
Mr. Kan-Dapaah 10 a.m.
Mr. Speaker, we have started the process to obtain a major funding for a major police accommodation. I think at this stage, it would be very difficult for me to give exact dates. These things tend to be unpredictable and I do not think it would be possible to give a definite date at this point in time. But we do appreciate that accommodation, both offices and residential for the Police Service are very, very critical, and we are doing all that is possible to solve the problem.
Mr. A. S. K. Bagbin 10:10 a.m.
Mr. Speaker, I just want to know whether the Minister could tell us the state of the residential accommodation for the police at Paga.
Mr. Kan-Dapaah 10:10 a.m.
Mr. Speaker, my surprise is that I was not expecting a frontline question, for this particular question but we do have specific proposals which are now being considered by Cabinet. So it has gone that far and I am very much hopeful that it would not be long before we come to a conclusion.
Mr. Bagbin 10:10 a.m.
Mr. Speaker, he has not answered my Question -- the state of the residential accommodation for police at Paga.
Mr. Kan-Dapaah 10:10 a.m.
Mr. Speaker, I thought the question itself was enough to tell us that the state of police accommodation at Paga is certainly not the best; and I did concede that we believe there is the need for us to do a lot about it, and as quickly as possible.
Mr. Asamoah Ofosu 10:10 a.m.
Mr. Speaker, the Minister states in his Answer that it is the intention of the Police Service to put up residential accommodation at Paga as soon as ongoing arrangements to procure funding are finalized. Mr. Speaker, what does the Minister mean by this; that as soon as arrangements to procure funding are finanlised? From which source and what funding is he talking about? We need to know that.
Mr. Kan-Dapaah 10:10 a.m.
Mr. Speaker, as I said, arrangements have been made, contacts have also been made; we are discussing possible funding at the Cabinet level. Until Cabinet would have cleared it, it will not be advisable for me to mention it. But if it is any consolation, I want to assure my hon. Friend that when Cabinet would have cleared it, it will be brought to Parliament for Parliament to consider it. Cabinet is going through certain proposals that have been submitted to it by the Ministry of the Interior.
Mr. John Tia 10:10 a.m.
Mr. Speaker, what is the
nature of the ongoing arrangements, and when did they begin?
Mr. Kan-Dapaah 10:10 a.m.
Mr. Speaker, the nature of the arrangements is that we have realized the need to respond to a major challenge that confronts the Police Service, which is the lack of residential and office accommodation for the police. In fact, the Police Service has got a number of projects dotted throughout the country which have reached several stages of completion but are yet to be completed.
We have undertaken a major study of it and have come to the conclusion that the best way of completing those on-going projects and start much needed new ones is to get sufficient funding for them. The normal budgetary allocation will obviously not be able to meet the needs of the police in this area. We are arranging to obtain a $30 million facility which we believe will go a long way in solving this particular problem.
Mr. Tia 10:10 a.m.
Mr. Speaker, I want to know from the Minister who are the partners involved in this arrangement.
Mr. Kan-Dapaah 10:10 a.m.
Mr. Speaker, at this stage, I do not really consider it advisable that I should give details. I would rather wait for clearance from Cabinet, then I will submit it to Parliament.
Mr. Speaker 10:10 a.m.
Question number 819, hon. Joe Gidisu, Member of Parliament for Central Tongu?
Police Post at Mafi Dove (Establishment)
Q. 819. Mr. C. S. Hodogbey (on behalf
of Mr. J. K. Gidisu) asked the Minister for the Interior whether there were plans to establish a police post at Mafi Dove, considering the growing population and the social challenges of the communities in that area.
Mr. Kan-Dapaah 10:10 a.m.
Mr. Speaker, the

decision to site a particular police station at a particular place is the responsibility of the Police Administration. The Police Administration has informed me that currently it does not have immediate plans to establish a post at Mafi Dove. It is considered by the Police Administration that Mafi Dove is effectively policed by Mepe and Aveyime police stations.
Mr. Hodogbey 10:10 a.m.
Mr. Speaker, in the Answer by the Minister, he stated that the area is effectively policed by Mepe and Aveyime police stations. When was the police station at Mepe opened?
M r. S p e a k e r : T h i s i s n o t a supplementary question. If you have any other supplementary question, you may ask.
Mr. Hodogbey 10:10 a.m.
Mr. Speaker, the
reason is, there is no police station at Mepe. [Interruptions.] So I want to know -- unless it was opened last night -- [Laughter.]
Mr. Speaker 10:10 a.m.
Ask your question.
Mr. Hodogbey 10:10 a.m.
Is there a police establishment at Mepe?
Mr. Kan-Dapaah 10:10 a.m.
Mr. Speaker, I am authoritatively informed by the Police Administration that they have no plans to establish a police post at Mafi Dove because the police stations at Mepe and Aveyime effectively serve it. If my hon. Friend is suggesting that there is no police station at Mepe, I will need to find that out, in which case I will consider the answer that the Police Administration gave as most unfortunate.
Mr. Hodogbey 10:10 a.m.
I would like the hon. Minister to know that Mepe is in my constituency and there is no police station there. If the Police Administration is informing him that there is a police station
at Mepe and it is effectively policing Dove, that is not true.
My next question is, when does he then intend to open a police station? Even though it is a substantive question, since he has made mention of Mepe, when is he going to open a police station at Mepe now that he knows that there is no police station there?
Mr. Speaker 10:10 a.m.
Tha t i s no t a supplementary question.
Mr. Mahama Ayariga 10:10 a.m.
Mr. Speaker, I want to know from the hon. Minister whether he is taking responsibility for the statements that he makes to this House. Mr. Speaker, he indicated clearly that there is a police station at Mepe and it is being pointed out to him that there is no police station at Mepe; and he said he will go and check. Mr. Speaker, did he not check before coming to this House?
Mr. Kan-Dapaah 10:10 a.m.
Mr. Speaker, I am very sure my hon. Friend is making a very good joke; he obviously did not intend to ask that question. But Mr. Speaker, can I confirm that I am still authoritatively informed that there is a police station at Mepe even if it is operating from rented quarters. Probably, what my hon. Friend means is that there is no station built by the Police Administration, but there is a police station at Mepe even if it is operating from rented quarters. That is what I have just been advised.
Mr. John Tia 10:20 a.m.
Mr. Speaker, I want to know from the Minister the location of this police station even if it is in rented premises. Where is it located at Mepe?
Mr. Kan-Dapaah 10:20 a.m.
Mr. Speaker, again, I do not really believe my hon. Friend wanted to ask that question. I have
Mr. Kan-Dapaah 10:20 a.m.


never been to Mepe myself so obviously I would not know where it is situated. But the hon. Member of Parliament, who I believe regularly goes there, can give him the location when he contacts him.

Mr. Chris Asher Jnr (Extradition from the United Kingdom)

Q. 820. Nii Amasah Namoale asked

the Minister for the Interior what plans the Ministry had to extradite one Mr. Chris Asher Jnr., a figutive lawyer now domiciled in the United Kingdom, who broke jail in the 1980s to Ghana.
Mr. Kan-Dapaah 10:20 a.m.
Mr. Speaker, the Attorney-General and Minister for Justice, my hon. Colleague, is studying this particular matter and I am yet to receive his advice.
Nii Namoale: Mr. Speaker, I would like to ask the Minister for the Interior why they did not arrest him even when his amnesty to testify at the National Reconciliation Committee expired and he was organizing public events, that is launching of books, et cetera. Because at that period he needed no Attorney-General to advise him to arrest him.
Mr. Speaker 10:20 a.m.
Oh, hon. Member, your
question?
Nii Namoale: Mr. Speaker, all that
I am asking is, why was he not arrested when he came to testify at the National Reconciliation Commission? The amnesty given to him to come to Ghana to testify expired while he was still in town; and he was not arrested. Why was he not arrested when that amnesty expired because he did not need the Attorney-General's advise to arrest him?
Mr. Speaker 10:20 a.m.
Hon. Member, but this is not your Question; this is not the Question you asked.
Nii Namoale: Mr. Speaker, I am asking why the man was not arrested. Why was the fugitive not arrested? because he came to Ghana. He is a fugitive, he came to Ghana, why was he not arrested?
Mr. Speaker 10:20 a.m.
Hon. Member, this is
not your Question.
Nii Namoale: Mr. Speaker, it is a
supplementary question.
Mr. Speaker 10:20 a.m.
I t cannot be a
supplementary question.
Nii Namoale: Mr. Speaker, all that I
am asking is why was he not arrested when he came to Ghana?
Mr. Speaker 10:20 a.m.
But it cannot be a supplementary question from your own Question which you have asked, it cannot be.
Mr. Lee Ocran 10:20 a.m.
Mr. Speaker, I would
Mr. Speaker 10:20 a.m.
That cannot be a
Mr. Mahama Ayariga 10:20 a.m.
Mr. Speaker,
I want to know from the hon. Minister what efforts he has made to get the Attorney-General to expedite action on this matter and how long it might take him to get advice on this matter.
Mr. Kan-Dapaah 10:20 a.m.
Mr. Speaker, I have been advised by the hon. Attorney- General and Minister for Justice that he is working very hard on this matter and that
he would advise me as soon as he is in a position to do so.
Prisons Barracks at Cantonments/Labone Area
(Rehabilitation)
Q. 860. Nii Amasah Namoale asked
the Minister for the Interior when the Prisons barracks in the Cantonments/ Labone area in the Dade Kotopon constituency would be rehabilitated.
Mr. Kan-Dapaah 10:20 a.m.
Mr. Speaker, the
rehabilitation of the Cantonments Prisons barracks located in the Labone area and in the Dade Kotopon constituency is being done in phases. So far, the old windows, the doors and frames have been replaced together with the electrical system. Sanitation facilities for all the block of flats have been provided. Rehabilitation works in the blocks are planned to be undertaken in the coming years.
Indeed, Mr. Speaker, in the 2007 Budget, provision has been made for a major rehabilitation of one of the block of flats, specifically Flat D.
Mr. C. S. Hodogbey 10:20 a.m.
Mr. Speaker,
in the Answer by the hon. Minister, he said provision has been made for a major rehabilitation of Flat D. I would like to know how much money has been allocated for this rehabilitation.
Mr. Kan-Dapaah 10:20 a.m.
Mr. Speaker,
given the need to be accurate with such figures, I would want to be given notice to be able to give the exact figure.
Mr. A. W. G. Abayateye 10:20 a.m.
Mr.
Speaker, in the Minister's Answer he said “Rehabilitation works in the blocks are planned to be undertaken in the coming years”. If he could please elaborate on that -- “in the coming years”.
Mr. Kan-Dapaah 10:20 a.m.
Mr. Speaker, the
block of flats in the Labone area need massive rehabilitation, as pointed out by my hon. Friend who asked the Question. Obviously, for budgetary reasons it is not possible for us to do all of it at a go, and we have decided to phase it out in the coming years. We have started Flat D this year and I am hoping that next year we will be able to do another one or two or three flats.
But it is not possible to give the exact number of years that we will need to complete it; it will depend upon the budgetary allocation that is made to us by the Ministry of Finance and Economic Planning.
Asesewa District Police Station, Otrokpe Police Station and Sekesua
Police Station (Rehabilitation)
Q. 862. Mr. Stephen Amoanor Kwao asked the Minister for the Interior when the following police stations in the Upper Manya constituency would be rehabilitated: (i) Asesewa District police station; (ii) Otrokpe police station and (iii) Sekesua police station.
Mr. Kan-Dapaah 10:20 a.m.
Mr. Speaker, the
Police Administration is confronted with significant challenges relating to the provision and rehabilitation of offices and residential accommodation. The rehabi- litation of Asesewa District police station, Otrokpe police station and Sekesua police station will be given the required attention as soon as funds are available.
Mr. Kwao 10:20 a.m.
Mr. Speaker, may I find out from the hon. Minister whether his Ministry is aware that the police personnel at all the three police stations mentioned are living in dilapidated premises.
Mr. Kan-Dapaah 10:30 a.m.
Mr. Speaker, that unfortunately is the case. Indeed, it is the case in many, many other areas; which is why we are working so hard to obtain this

major funding to address this particular challenge, which I must repeat is a major challenge to the Police Administration and which we need to be able to solve.

I am very much hopeful that when the arrangements are through and the loan facility is brought to the House, hon. Members would support us in procuring this facility to provide decent accommodation for the Ghana Police Service.
Mr. Kwao 10:30 a.m.
Mr. Speaker, I believe the hon. Minister is aware that the first Police Commissioner, in the person of Mr. E. R. T. Madjitey, hailed from the Manya Krobo District under which there is the Upper Manya constituency. May I know why his Ministry has allowed all the police stations he established in his area to collapse?
Mr. Kan-Dapaah 10:30 a.m.
Mr. Speaker, Mr. E. R. T. Madjitey, of course, is held in very, very high esteem, not only by the Ghana Police Administration and by policemen in general but also by all Ghanaians. I can assure my hon. Friend that it is not deliberate that we are running down police stations that he established in his constituency.
It obviously must be a matter of coincidence, but I can assure my hon. Friend that the Police Administration and indeed all policemen continue to hold Mr. E. R. T. Madjitey in very, very high esteem.
Mr. George Kuntu-Blankson 10:30 a.m.
Mr. Speaker, judging from the questions emanating from the floor, accommodation for Ghana Police Service is a general one. I would like to know from the hon. Minister what holistic plan his Ministry has for alleviating this plight of the Ghana Police Service.
Mr. Speaker 10:30 a.m.
Hon. Member, this is a

general question; it is not a supplementary question at all. Hon. Minister for the Interior, thank you very much for appearing to answer these Questions. You are discharged.
BILLS -- FIRST READING 10:30 a.m.
PAPERS 10:30 a.m.
MOTIONS 10:30 a.m.
Chairman of the Finance Committee (Nii Adu Daku Mante) 10:40 a.m.
Mr. Speaker, I beg to move, that this honourable House adopts the Report of the Finance Committee on the Loan Agreement between the Government of Ghana and Commerzbank AG, Belgium for an amount of Euro 14,417,425.00 (fourteen million, four hundred and seventeen thousand, four hundred and twenty-five euros) for the supply of the second batch of 75 VDL Jonckheere Buses, Spare Parts
and cost of Insurance Premium.
Mr. Speaker, may I now present the Report of the Committee. Mr. Speaker, in doing so, may I crave your indulgence to read the “Background, Project Financing and the Conclusion” thereof.
1.0 Introduction
The Loan Agreement between the Government of Ghana and Commerzbank AG, Belgium was laid in the House on Friday, 9th March 2007 and referred to the Finance Committee for consideration and report in accordance with article 181 of the 1992 Constitution and the Standing Orders of the House.
To discuss this document, the Committee met with the two Deputy Ministers for Finance and Economic Planning, hon. Prof. G. Y. . Gyan-Baffour, hon. Dr. A. Akoto Osei, Deputy Minister for Transportation, hon. Magnus Opare- Asamoah and officials from the Ministries of Finance and Economic Planning and Road Transportation and reports as follows:
2.0 Background
As part of the actualization of mass transportation in the country and to boost the operations of the Metro Mass Transit (MMT), the Government of Ghana had entered into a commercial agreement with the VDL Jonckheere Bus & Coach N.V. of Belgium for the supply of 150 commuter Buses and spare parts to the Metro Mass Transit Limited (MMT) with an export subsidy from the Belgium Government.
This Agreement was laid in the House on 31st October 2006 and approved by this honourable House.
Due to the requirements of the Belgium Government and its yearly budgetary constraints with regard to the granting of export subsidies, the financing of the one
hundred and fifty (150) buses had to be spread over two fiscal years, that is 2006 and 2007.
On 31st October 2006, a loan agreement amounting to €14,417,425.00 from Commerzbank AG, Brussels Branch, Belgium plus a credit insurance premium for the importation of the first 75 buses was also approved by the House to augment the fleet of buses of the MMT.
The second batch of 75 buses and spare parts is to be financed with an export Credit arrangement from Commerzbank AG, Brussels Branch, Belgium with an interest subsidy from the Belgium Government for the sum of €14,417,425.00 which is before this august House.
3.0 Project Financing
The first batch of the seventy-five (75) buses plus the credit insurance premium was financed through a soft Loan Agreement for the sum of €14,417,425.00 which was ratified by the House in November 2006.
The second batch of the seventy-five (75) buses and spare parts would be financed with a soft loan under Export Credit arrangement from Commerzbank AG, Brussels Branch, Belgium with an interest subsidy from the Belgium Government. 4.0 Terms and Conditions
The terms and conditions of the loan are as follows:
(i) Amount -- Euro 14,417,425.00 Export Credit

from Commerzbank AG, Brussels Branch, Belgium representing 100 per cent of the cost of 75 buses and spare parts (being €12,725,000.00 p l u s credit insurance premium of €1,692,- 425.00) from the office national Du Ducroire.

(ii) Interest Rate -- 0 per cent (zero per cent) per annum. (Article

4.2).

(iii) Repayment Period -- 15 years by 30 semi-annual instalment (Article 7).

(iv) Moratorium Period -- 10 months after effective date of the Contract.

(v) Grant Element -- 44.08 per cent. 5.0 Observations

The Committee observed that these buses will help transport workers to their various offices early thereby reducing lateness at work and thereby increasing productivity. It

will also help in the transportation of the public there by further improving public transportation system in the urban centres.

The Committee further observed that the operations of the metro buses are gradually boosting public confidence in public transport.

It is anticipated that this will reduce the number of vehicles plying roads, reduce traffic jams, thereby improving the overall traffic situation in the cities.

The Committee noted that the additional buses would be effectively deployed to augment the current fleet of the Metro Mass Transit in order to enhance the operations of the Company in the country.

The technical team explained to the Committee that the Government of Ghana has entered into a Commercial Contract with the Belgium Government for the supply of (150) Jonckheere buses. Due to the requirements of the Belgium Government and its yearly budgetary constraints with regard to the granting of export subsidies, the financing of the 150 buses will be spread over two fiscal years (2006 and 2007).

The Committee observed that the first 75 buses will be delivered during the fourth quarter of 2007 and the first quarter of 2008 and the second batch would be delivered in the second and third quarters of 2008.

The Committee was informed that all taxes, levies, fees and similar costs arising at present or future outside the Kingdom of Belgium in connection with this Loan Agreement shall be borne by the Borrower.

The Committee noted that the loan facility has a grant element of 44.08 per cent and therefore is concessionary.

6.0 Conclusion

Considering the concessionality of the facility and the anticipated gains to be derived from the Metro Mass Transportation as a result of the supply of the buses, the Committee respectfully invites the House to approve by resolution the supply of the second batch of 75 VDL Jonckheere buses and spare parts, and cost of insurance premium amounting to fourteen million, four hundred and seventeen thousand, four hundred and twenty-five Euro (€14,417,425.00) under Belgium Govern-ment concessionary financing for the Metro Mass Transit Limited (MMT) in accordance with article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335).

Respectfully submitted.

Deputy Minister for Finance and Economic Planning (Prof. G. Y. Gyan- Baffour): Mr. Speaker, I beg to second the motion.

Question proposed.
Mr. Haruna Iddrisu (NDC -- Tamale South) 10:40 a.m.
Mr. Speaker, I cherish the opportunity to be associated with this motion which is intended to improve public transport system in our country. There is no doubt that in the last few years there has been some improvement in terms of people's access to public transport, including school children.
Mr. Speaker, I first of all would want to know, this House in November 2006 -- and I would like to refer to paragraph 2, item 3.0 of the Committee's Report, the first paragraph. I would want to know the status of the first 75 buses that this House approved of, whether they have arrived or they are still on the high seas. We would want to know before we proceed to do an

approval for the second phase of it.

We are told they were supposed to come in two tranches. We had to pay 14 million euros for the first tranche of 75 and then come back. What is the status of the first batch?

Mr. Speaker, the other issue I would like to raise is that this House is interested in the operations of the Metro Mass Transit and therefore we would want a report, in particular an audit report of the activities of the Metro Mass Transit since it was established, so that this Parliament can monitor how far many of these vehicles which have been allocated to them are being put into good use.

My fear is that many of the vehicles, as I drive pass their headquarters, have broken down and it means that there are still problems of maintenance as far as those vehicles are concerned.

Earlier on, we had raised the issue of the equitable distribution of those buses and for me it is refreshing. I am now aware that there are some of those old buses plying the streets in Wa, in the Upper West Region. A few were also sent to the Volta Region and I just hope that we can extend this to all the 138 districts of our country and not narrow it only to the major cities.

Then, Mr. Speaker, if one travels outside the country, they do have what is called “rush hours”. In Ghana, I think that the Metro Mass Transit must be encouraged because when it is past 5.00 p.m. one can see the labouring masses of our country, our workers struggling to get home. We should be able to design a system where from 6.00 a.m. to 8.30 a.m. those vehicles are available in order to cart workers. I hope that the Ministry for Public Sector Reforms would be interested

in this particular issue.

I support the motion but would want the hon. Minister to assure this House that an audit report of the activities of the Metro Mass Transit would be made available to this House.

Acting Minister for Transportation (Mr. F. K. Owusu-Adjapong): Mr. Speaker, here, I speak mainly as the Acting Minister for Transportation so that I can give some assurances to my hon. Colleague.

Mr. Speaker, the background to this loan is this -- When we wanted to have the 150 buses, we wanted all of them in one tranche but we were told that the Belgium Government which was going to give us the grant element said its budget could only cover 75; that is why we broke it into two.

I was trying to check up on the status of the first batch but I want to assure my hon. Colleague that the assurance that we would try and be fair to all areas is one of the things I am personally interested in. Because not coming from a major district centre but from a semi-rural area, I am also interested in ensuring that these buses go to every constituency.

So the assurance in fact starts from my own constituency, just like his. So we would be working on this. But the question is how to get more of these buses, and that is why I am happy he ended up by saying that we should try and get more of such facilities.

As regards the running schedule, I believe the problem is the question of the availability of the buses because when one does not have enough, one is not able to get it increased at the peak period; but these are useful pieces of information.
Mr. Haruna Iddrisu (NDC -- Tamale South) 10:40 a.m.


As regards the performance of the organization, I think we are entitled to have such performance brought up for consideration by hon. Members, so I will liaise with the Committee on Road Transport so that we get some report from the body for all of us to look at.

I wish to urge hon. Members that we should give support to this second batch and hope that the Ministry would continue to source additional funds so that we can increase the quantum of buses, not only for the Metro Mass Transit but also for even the State Transport Company and other such bodies.

I urge all hon. Members to endorse this recommendation from the Committee.
rose
Mr. Speaker 10:40 a.m.
Hon. Member for Ahafo Ano South?
Mr. Manu 10:40 a.m.
Thank you, Mr. Speaker --
Mr. Speaker 10:40 a.m.
But I thought the Leader was winding up.
Mr. Manu 10:40 a.m.
Mr. Speaker, that is why I thought you should have called me first before the winding up.
Question put and motion agreed to.
RESOLUTION 10:40 a.m.
THIS HONOURABLE HOUSE 10:40 a.m.
H E R E B Y R E S O LV E S A S 10:40 a.m.
Mr. Haruna Iddrisu 10:40 a.m.
Mr. Speaker, I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Mr. Speaker 10:40 a.m.
Item 9.
Finance Committee Report on the Request for Exemption of Tax Liability on Equipment/Materials

Motion:

That this honourable House adopts the Report of the Finance Committee on the request for Exemption of tax liability on equipment/materials to be imported or purchased locally, corporate and expatriate tax totalling €7,329,361.16 in respect of Koforidua Water Supply Expansion Project in the Eastern Region.
Chairman of the Committee (Nii Adu Daku Mante) 10:50 a.m.
Mr Speaker may recall that this particular motion was earlier moved, the Committee's Report presented and debated. It was during the debate that an hon. Member raised an objection to a particular item of the loan agreement. Mr. Speaker, as of now, I do not know the position of the hon. Member; whether he still maintains his stance or he has withdrawn it.
Mr. Speaker 10:50 a.m.
I thought you had resolved this matter behind the scenes.
Nii Adu Mante: That is so; we have done so. The hon. Member is the Member for Upper West Akim.
Mr. Samuel Sallas-Mensah (NDC -- Upper West Akim) 10:50 a.m.
Mr. Speaker, it has been resolved but with a caveat from the hon. Minister for Finance and Economic
Mr. Samuel Sallas-Mensah (NDC -- Upper West Akim) 10:50 a.m.


Planning that in future, government officials signing these agreements should be very careful with the income tax clauses in such agreements. For indirect taxes, we do not mind giving them up, but for corporate taxes, as much as possible, we should avoid exemptions on those things.

Mr. Speaker, with that I think the matter has been resolved.

Question put and motion agreed to.
RESOLUTION 10:50 a.m.
Prof. G. Y. Gyan-Baffour 10:50 a.m.
Mr. Speaker, I beg to move, that
WHEREAS by the provisions of article 174 (2) of the Constitution, Parliament is empowered to confer power on any person or authority to waive or vary a tax imposed by an Act of Parliament;
THE exercise of any power conferred on any person or authority to waive or vary a tax in favour of any person or authority is by the said provisions made subject to the prior approval of Parliament by resolution;
BY THE combined operation of the provisions of section 26 (2) of the Customs, Excise and Preventive Service (Management) Law, 1993 (PNDCL 330), the Export and Import Act, 1995 (Act 503), the Export Development and Investment Fund Act, 2000 (Act 582), the Value Added Tax Act, 1998 (Act 546), the Value Added Tax (Amendment) Act, 2000 (Act 579) and other existing Laws and Regulations
applicable to the collection of customs duties and other taxes on the importation of goods into Ghana, the Minister for Finance and Economic Planning may exempt any statutory corporation, institution or individual from the payment of duties and taxes otherwise payable under the said Laws and Regulations or waive or vary the requirement of such statutory corporation, institution or individual to pay such duties and taxes.
IN ACCORDANCE with the provisions of the Constitution and at the request of the Government of Ghana acting through the Minister responsible for Finance and Economic Planning, there has been laid before Parliament a request by the Minister for Finance and Economic Planning for the prior approval of Parliament to the exercise by him of his power under the Laws and Regulations relating to exemption of tax liability on equipment and materials to be imported or purchased locally, corporate and expatriate tax totalling €7,329,361.16 in respect of Koforidua Water Supply Expansion Project in the Eastern Region.
N O W T H E R E F O R E , t h i s honourable House hereby approves the exercise by the Minister responsible for Finance of the power granted to him by Parliament by Statute to waive such tax liability on equipment and materials to be imported or purchased locally, corporate and expatriate tax totalling €7,329,361.16 in respect of Koforidua Water Supply Expansion Project in the Eastern Region.
Nii Adu Daku Mante: Mr Speaker, I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.
BILLS -- SECOND READING 10:50 a.m.
Chairman of Committees (Nii Adu Daku Mante) 10:50 a.m.
Mr Speaker, I beg to present the Committee's Report.
1.0 Introduction
The National Reconstruction Levy (Repeal) Bill was laid in the House on Thursday, 8th March 2007 and referred to the Finance Committee for consideration and report in accordance with the 1992 Constitution and the Standing Orders of the House.
To consider the Bill, the Committee met with the two Deputy Ministers for Finance and Economic Planning, hon. Dr. Anthony Akoto Osei and hon. Prof. George Y. Gyan-Baffour and officials from the Internal Revenue Service and Ministry of Finance and Economic Planning and reports as follows:
2.0 Reference Documents
The Committee referred to the following documents:
(i) The 1992 Constitution of the Republic of Ghana;
(ii) The National Reconstruction Levy Act, 2001 (Act 597);
(iii) 2007 Budget Statement. 3.0 Background
It would be recalled that in 2001, when the Government introduced the National Reconstruction Levy as a form of tax on the profits before tax of certain specified companies at various differential rates, it was announced that the levy would not be a permanent feature of the Ghana tax system and that eventually, it would be repealed.
4.0 Object of the Bill
The object of the Bill is to repeal the National Reconstruction Levy Act, 2001 (Act 597).
5.0 Observations
The Committee observed that it has been the intention of Government to abolish the National Reconstruction Levy by 2007 in the 2005 Budget Statement because of the problems it has been posing to the private sector. This was repealed in the 2007 Budget Statement and this Bill seeks to give it a legal effect.
The Committee was informed that the business community has been expressing a lot of concerns about the levy and how it has been impacting negatively on their businesses. The Association of Ghana Industries, the Chamber of Commerce and the financial community have also made representations appealing to the Government to repeal the National Reconstruction Levy Act, 2001 to financial institutions, insurance companies and other companies.
The Committee noted with satisfaction the intention of the Bill to repeal the Law was in the right direction as this will make available to businesses additional resources to enable them grow. 6.0 Conclusion
The Committee after carefully examining the Bill and finding it to be in the right direction respectfully recommends to the House to adopt its report and pass the National Reconstruction Levy (Repeal) Bill.
Respectfully submitted.
Question proposed.
Mr. Haruna Iddrisu (NDC -- Tamale South) 10:50 a.m.
Mr. Speaker, I rise to support the motion. And at least, the Government has demonstrated in one breath good faith that what it pledged in the Budget Statement is now being given meaning, in wanting to
Mr. Haruna Iddrisu (NDC -- Tamale South) 10:50 a.m.


repeal the National Reconstruction Levy. Mr. Speaker, there is evidence that, it was hurting a lot of business organizations in the country, in particular our financial institutions, the banks and our insurance companies.

Mr. Speaker, even though I support this move in principle, I would want to refer you to Act 60, the Venture Capital Trust Fund of 2004 and in particular section 3 -- “Sources of Money for the Fund” -- and with your permission I quote:

“The sources of the money for the Trust Fund are an amount of money equivalent to twenty-five per cent of the proceeds of the National Reconstruction Levy with effect from the 2003 financial year.”

Mr. Speaker, even as Government moves to repeal the law, it means that there is no longer a National Reconstruction Levy. But we all agree in principle that the Venture Capital Fund is important in order to bring up the middle-level business entities in our country. I will support this but I need an assurance from the hon. Minister for Finance and Economic Planning.

What policy by way of intervention -- how are they going to source the hitherto twenty-five per cent, which came from the National Reconstruction Levy and fed into the Venture Capital Fund? It means that the funding regime of the Venture Capital Fund is going to be hurt with this policy decision.

Al ready, bus iness peop le a re complaining that even the minimum amount that they are able to source at the Venture Capital Fund is sometimes not sufficient in order to be able to prop

them up.

As I support this, I will need some explanation from the Ministry of Finance and Economic Planning as to what steps they will take to assure that the Venture Capital Fund will continue to receive adequate and sustainable funding sources, exclusive of the National Reconstruction Levy.

Mr. Speaker, I support the motion.
Mr. S. K. B. Manu (NPP -- Ahafo Ano South) 11 a.m.
Mr. Speaker, I rise to support the motion and in doing so, I would like to look at the observations in your Committee's Report.
Mr. Speaker, in the first paragraph of the ‘Observations', your Committee has stated that in 2005, the Government promised to abolish the National Reconstruction Levy and this was repeated in the 2007 Budget. And today, in 2007, we are seeing the abolition of this levy. This is an indication, a pragmatic indication, to Ghanaians that this Government is interested in the development of the private sector and that when it promises, it delivers.

Mr. Speaker, if you go to the second paragraph of the Report, you will realise that business people made represen-tations to Government to ask for the abolition of this Levy. Here, once again, Government has listened to them, an indication that the Government is indeed, and in fact, a listening one.

Mr. Speaker, but for the Government

being a listening one, it would have stuck to its guns since that was bringing in income to the Government, but as a listening Government that it promised to be to Ghanaians, it has lived up to

expectation and I thank Government for that.

Mr. Speaker, coming out of this is the free money that the business world is going to have; our businessmen are going to have money to expand their businesses because they will not be paying this levy.
Mr. Lee Ocran 11 a.m.
On a point of
Order. Mr. Speaker, the hon. Member is misleading this House. He is saying the free money that businesses are going to get - which free money? Who is giving them free money? He should say that the savings that they are going to make for not paying, and not free money.
Mr. Manu 11 a.m.
Mr. Speaker, I would
not waste my breath reacting to all interventions particularly when they are not germane to what I am saying.
Mr. Speaker, what I was saying is that
as the business people are not going to pay this levy, it is going to add to their income so that they can expand their businesses; and as their businesses get expanded, they will be employing more people in their businesses and in that way, we will be fighting the unemployment situation that we have in this country. I believe if that happens, the youth and the unemployed in this nation will be the beneficiaries.
I therefore commend the Government for taking this bold initiative which other Governments would have closed their eyes to. We therefore commend the Government and we believe that such measures will be taken in future to grow businesses in this country.
Mr. J. D. Mahama (NDC 11 a.m.
None

Bamboi): Mr. Speaker, a story is told of a hijacker who hijacked a plane and killed
Mr. J. D. Mahama (NDC 11 a.m.


the pilot and nobody knew how to fly the plane. Eventually, they had to connect him to the control tower and by giving him instructions, he safely landed the plane.

Mr. Speaker, you do not applaud this hijacker for safely landing the plane, because if he had not killed the pilot, he would not have had that crisis in the first place.

Mr. Speaker, it is this same Government w h i c h i n t r o d u c e d t h e N a t i o n a l Reconstruction Levy and said it was for three years; and we advised them at the time that it was going to affect businesses.

Mr. Speaker, in 2004, they extended it for another four years. It is only in 2007 that -- Businesses especially in the timber sector have collapsed and businesses in the textile sector have collapsed. What is the use of this repeal to those businesses that have collapsed now?
Mr. Kyei-Mensah-Bonsu 11 a.m.
On a point
of Order. Mr. Speaker, my Colleague is seriously misleading this House by attributing difficulties in the timber industry - [Interruptions] -- the collapse, that is even stronger - [Interruption] -- Mr. Speaker, that is even worse - the alleged collapse of the timber industry due to the National Reconstruction Levy.
Mr. Speaker, my Colleague does
not know the challenges facing the industry; he does not. He is totally wrong in attributing this to the National Reconstruction Levy.
Mr. Speaker 11 a.m.
Hon. Member for Bole-
Bamboi, you may continue.
Mr. Mahama 11 a.m.
Mr. Speaker, the hon.
Member might think that because I come from the Northern Region, I have no knowledge of the timber industry. But I want to tell him that the biggest sawmill
in Techiman that supplies timber to the whole of the Northern sector of this country belongs to my family. Now, it has collapsed and I know what made it collapse. The Reconstruction Levy was part of the reason why it collapsed.
Mr. Speaker, as far as I know, there are
Mr. Asamoah-Boateng 11 a.m.
On a point
of Order. Mr. Speaker, my colleague hon. Member is out of order and misleading the House. The National Reconstruction Levy had nothing to do with the timber industry and if his business or his family's business has collapsed, maybe, he must look at why it collapsed, maybe they could not manage the business properly. It had nothing to do with the timber industry.
Mr. Mahama 11 a.m.
Mr. Speaker, I advise the hon. Minister to go and read the Reconstruction Levy Act again. It affected all companies in this country; it is on profits and you paid it in advance. The levy was imposed even before the end of the financial year, when you had to declare your profits. It was taken upfront, on all companies operating in Ghana.
Mr. Speaker, he should go and refer to the Act again.
rose
Mr. Speaker 11 a.m.
Majority Chief Whip, do you have a point of Order to raise?
Mr. Kyei-Mensah-Bonsu 11 a.m.
Mr. Speaker, my Colleague keeps misleading this House. First of all, the Reconstruction Levy was not on all companies, clearly. Mr. Speaker, those companies were specified and indeed Mr. Speaker, if
he insists that it has contributed to the collapse of the timber industry, then ipso facto, all companies in the country should collapse.
By his reckoning, all companies were paying and so if the timber industry has collapsed because of it then -- Mr. Speaker, we have timber industry in Suame, he does not know about that. He traverses that route before he goes to Bole and he claims he knows the place. Mr. Speaker, that is very serious and my Friend should advise himself.
Mr. Mahama 11 a.m.
Mr. Speaker, I know that in 2002, the Timber Companies Association met with the Minister for Finance and Economic Planning and complained about the National Reconstruction Levy. This is a matter of public record. Mr. Speaker, I said that the Reconstruction Levy made Ghana a high cost point of doing business and it affected local industry, especially the timber industry, the textile industry and the banking industry. Mr. Speaker, that was what I said.

Mr. Speaker, we might be repealing the Reconstruction Levy but there are several other levies and taxes that are affecting local industries in terms of doing business.

Mr. Speaker, import levies are so high; if you import anything into this country,

you pay in excess of 30 per cent in taxes and duties alone, and these are all affecting the cost of doing business.
rose
Mr. Speaker 11 a.m.
Hon. Member for Ahafo Ano South, do you have a point of Order?
Mr. Manu 11:10 a.m.
A very good one, Mr. Speaker. The hon. Member has just misled this House by saying that because the Government imposed the levy and they talked about it and it is now removing it, it does not need to be commended. We have seen Heads of State in this country who would have said that Moreka no koraa, na me reye no more at public outcry on such issues. So if this Government has listened, it is better late than never and must be commended. So I once again commend the Government for listening.
Mr. Speaker 11:10 a.m.
Hon. Member for Bole- Bamboi, you may wish to conclude.
Mr. Mahama 11:10 a.m.
Mr. Speaker, it is you who determines which is a point of order and which is not, but in my opinion this is not a point of order. There can be no parallel between the two incidents that he is referring to.
I am saying that since this Bill was passed in 2001, every year in debating the Budget Statement, we have continuously said that this Levy is going to affect local industry and it has taken seven long years for Government to listen. And I am asking, on that basis what commendation do they want? They have been listening but not hearing.
I am saying that we might be taking the Reconstruction Levy away but the cost of doing business is still very high in this country. Import duties and taxes are
Mr. Mahama 11:10 a.m.


so high. For anything that you import, you pay almost in excess of 30 per cent in duties and levies.

Aside from that, over the last six years, electricity tariffs have gone so high and the electricity is not even available. Water has gone so high, fuel prices have gone so high and so it has made Ghana lose its competitiveness in terms of the West African subregion.

So we are saying that Government should not just pat its back for repealing the National Reconstruction Levy but must also progressively look at the other levies that are making the cost of doing business so high in Ghana. It is only when they have done a review with associations like the Association of Ghana Industries and other such bodies that we can come out with a regime that makes the business environment competitive and business friendly so that we can compete with other countries in the subregion.

I support the motion. It has come too little, too late but I think half a loaf is better than none.
Mr. Speaker 11:10 a.m.
Deputy Minister, you may wind up now.
Prof. Gyan-Baffuor 11:10 a.m.
Mr. Speaker, I would like to thank our Friends on both sides of the aisle -- [Interruption.]
Mr. Speaker 11:10 a.m.
Deputy Minister, before then, Minority Leader?
Minority Leader (Mr. A.S.K. Bagbin) 11:10 a.m.
Mr. Speaker, I was giving way for more contributions but since hon. Members are satisfied and are not ready to contribute, I just want to add my voice to the motion on the floor and to wholeheartedly support it. That has been our call for so many years and it is really belated. All the same, we need to
Minority Leader (Mr. A.S.K. Bagbin) 11:10 a.m.


support it.

Naturally, the thing had to be withdrawn and the Act repealed because it was not roping in anything any longer; a lot of the businesses had collapsed and this is a tax on profits. Apart from finance and insurance where some gains were coming in, the other sectors could not make profit for the levy to tax the profits. So I think that is the right thing to do, to repeal the Act and look at other areas of generating revenue to support venture capital and the rest.

It is important for us to emphasize to Government that the cost of doing business in Ghana -- we are not talking about the processes; the processes are being expedited -- is escalating and Ghana is now not attracting foreign direct investment. You can look at the accounts and you can look at the monies and you see that monies are flying to other countries and not to Ghana.

In spite of our democratic credentials, in spite of our efforts to restructure, reform the public sector, we are still seen as a very expensive country to do business in and I think that we have to look at other areas, not just the National Reconstruction Levy. We need to look at the issues of duties and other levies that we are imposing on business.
rose
Mr. Speaker 11:10 a.m.
Deputy Minister for Foreign Affairs, do you have a point of order to raise?
Mr. Osei-Adjei 11:10 a.m.
Mr. Speaker, the assertion by the hon. Minority Leader that Ghana is expensive and that is why direct foreign investment is not coming to Ghana is not right. He is trying to mislead the whole House and trying to mislead the
country as a whole. Energy prices the whole world over are escalating but what actually is happening here in this country is lack of technology.
That is the area that we have to look at to be able to acquire the necessary technology to reduce the cost of production. Because, if you say that the cost is escalating because of the energy crisis, because of water, it is wrong. It is wrong because water prices here in Ghana are lower than you have in Burkina Faso, in Niger and in all --
Then Mr. Speaker, the cost of energy in Ghana is cheaper than anywhere the whole of West Africa. Ghana's is cheaper so we cannot say that the cost is escalating despite the fact that there is good governance and others; no. Because, the major factor for foreign investment is not on the cost of production but rather it is the cost of security. The cost of governance of the state is the factor, not the cost of production, as he is saying. Because, if it is the cost of production, Ghana is cheaper than the whole of the West Africa zone.
Mr. Bagbin 11:10 a.m.
Mr. Speaker, I think my, hon. Colleague will need to go back and look at what we call the PPP (Purchasing Power Parity). When you are comparing the cost of doing business in one country to the other, when you are comparing the standard of living and the value of money, you are looking at the purchasing power parity. You are not looking at quantum and that is why I am saying that it is really very expensive to do business in Ghana. I still repeat it.
We were even advising Government not to increase the withholding tax which was pegged at five per cent. Government did increase it to seven and a half per cent. Government increased airport
tax; Government increased almost all the taxes and that made Ghana a very expensive country to do business in. Luckily, last year, we were able to reduce the withholding tax from seven and a half per cent back to five per cent. And then we are doing the same to the National Reconstruction Levy.
So it is important for our hon. Colleagues to accept these genuine criticisms because we meet the businessmen. Sometimes, they might not have the guts to tell you but they have the guts to tell us how they are suffering; and those who are in business are aware. So it is important for us in Government to listen to the voice of the private sector and take measures that can empower and encourage and support the private sector to really be the engine of growth. It is with this that I support the motion.
Prof. Gyan-Baffuour 11:10 a.m.
Mr. Speaker, I want to thank hon. Members from both sides of the aisle for supporting this motion and for contributing so interestingly to Government's move to abolish the National Reconstruction Levy. The National Reconstruction Levy even by name, nomenclature, means that it was actually needed to reconstruct the country at the time when we did not actually have any resources to run this country. That is why it is called National Reconstruction Levy.
Mr. Bagbin 11:10 a.m.
Mr. Speaker, our hon. Colleague is actually misleading the House. I thought he was going to summarize but
he is raising contentious issues. Have we finished constructing the nation and that is why it is being withdrawn? Also, in the era of our First Republic, this same levy was introduced and it was what they just copied. It is not just the case that you introduce it to reconstruct the nation. After all, the nation is not yet reconstructed but it is being withdrawn. So he should not, please, mislead us.
Mr. Speaker 11:10 a.m.
Deputy Minister, please wind up.
Prof. Gyan-Baffuor 11:20 a.m.
Mr. Speaker, we are still constructing the nation but we are not reconstructing it. [Laughter.]
Mr. Speaker, on the issue of venture capital, the idea was that we needed some money, as seed money, to actually kick- start the Fund and then allow the Fund itself as well as the companies that would evolve to actually leverage money from the private sector to use. They were not to rely constantly on money coming from Government but rather to be on their feet.
We think that at this point they have leveraged a lot of money and they can actually do the work beyond the National Reconstruction Levy. But, of course, we would also find other sources to support them.
On that note, Mr. Speaker, I thank all my hon. Colleagues for whatever they have actually contributed.
Question put and motion agreed to.
The National Reconstruction Levy (Repeal) Bill was accordingly read a Second time.
The 2006 Supplementary Appropriation Bill
Prof. Gyan-Baffuor 11:20 a.m.


Deputy Minister for Finance and Economic Planning (Prof. G. Y. Gyan- Baffour): Mr. Speaker, I beg to move, that the 2006 Supplementary Appropriation Bill be now read a Second time.

Mr. Speaker, during the presentation of the 2006 Budget Statement in November 2005, the modalities of the Multilateral Debt Relief Initiative had not been established. With the relief and other loan facilities established in the course of 2006, the Government decided to take advantage of the additional resources to be realized to enable the realization of the resource requirement needed to meet the Millennium Development Goals. It therefore became necessary in July 2006 to request parliamentary approval for a supplementary appropriation.

Mr. Speaker, article 179 (9) of the 1992 Constitution states and, with your permission I quote:

“Where, in the case of a financial year, a supplementary estimate has been approved by Parliament in accordance with clause (8) of this article, a supplementary Appro- priation Bill shall be introduced into Parliament in the financial year next following the financial year to which the estimate relates, providing for the appropriation of the sum so approved for the purpose specified in that estimate.”

Mr. Speaker, this Bill therefore is intended to meet this constitutional requirement.

Mr. Speaker, I beg to move.

Question proposed.
Chairman of the Committee (Nii Adu Daku Mante) 11:20 a.m.
Mr. Speaker, I rise to present to you your Committee's Report.
1.0 Introduction
The Supplementary Appropriation Bill for 2006 was laid in the House on Thursday, 8th March 2007 and referred to the Finance Committee for consideration and report in accordance with the Constitution and Standing orders of the House. This followed the presentation by the Minister for Finance and Economic Planning, hon. Kwadwo Baah-Wiredu of the Supplementary Budget for the 2006 fiscal year.
The Committee met with the two Deputy Ministers for Finance and Economic Planning, Prof. Gyan-Baffour and hon. Dr. A. Akoto Osei and officials from the Ministry of Finance and Economic Planning and reports as follows:
2.0 References
The Committee referred to the following:
The 1992 Constitution;
The Budget Statement and Economic Policy of the Government of Ghana for the 2006 Financial Year;
The Supplementary Budget Statement for 2006.
3.0 Background Information
During the presentation of the 2006 Budget Statement and Economic Policy in November, the modalities for the Multilateral Debt Relief Initiative had not been established.
As a result, this relief and other loan facilities that the country received during the year were not captured in the 2006 Budget.
For the country to take advantage of these additional resources to enable the realization of the resource requirement to meet the Millennium Development Goals, it became necessary for the Government to request for approval for a Supple-mentary Estimate which was laid before the House on 13th July 2006 pursuant to article 179 (8) and (9) of the Constitution.
Due to the above, the House approved by Resolution an additional amount of five trillion, six hundred and sixty-three billion cedis (¢5,663,000,000,000) in July, thus authorizing the withdrawal of monies from the Consolidated Fund and for the withdrawal from other funds for the running of the State during the 2006 financial year, ending 31st December 2006.
4.0 Object of the Bill
The Supplementary Appropriation Bill for 2006 is seeking to comply with article 179 (8) and (9). This Bill also sets out the supplementary appropriation approved by the House in July 2006.
5.0 Observations
The Committee observed that a total amount of ¢4,280,328,000,000.00 was used for the payment of various programmes and activities of Ministries, Departments and Agencies (MDAs). Domestic Investments amounted to ¢1,997.1 billion whilst Foreign Financed investments amounted to ¢1,810.9 billion.
The Committee further observed that a total of ¢805 billion was used for the payment of Tema Oil Refinery under recovery and a total of ¢577 billion was spent on discretionary payments.
Please find attached Schedule 1 showing the details of expenditure for the supplementary budget Estimates.
T h e C o m m i t t e e n o t e d t h e s e
expenditures incurred are in line with the purposes specified in the items under the supplementary Estimates that was approved by the House.
The Committee further noted that a total of US$20 million which was approved for Investment Activity for the Ghana @ 50 celebrations is captured under the Office of the Chief of Staff and Minister for Presidential Affairs.
6.0 Recommendation and Conclusion
After carefully considering the Bill, the Committee recommends to the House to adopt its report and pass the 2006 Supplementary Appropriation Bill to authorize the issue from the Consolidated Fund and other public funds the sum of ¢5,663,000,000,000.00 for the purposes of financing government operations during the financial year, ending 31st December 2006 pursuant to article 179 (8) and (9) of the 1992 Constitution and the Standing Orders of the House.
Respectfully submitted.
Minority Leader (Mr. A. S. K. Bagbin) 11:20 a.m.
Mr. Speaker, we approved the Supplementary Appropriation in July 2006. It is true that they had to introduce a Supplementary Appropriation Bill the next financial year, which is 2007; but this Bill came before the House on Thursday, 8th of March, 2007. I was wondering what our hon. Colleagues were doing all that time. In other words, I am saying that they have to sit up and be alert and come at the appropriate time. [Interruption.]
Dr. A. A. Osei 11:20 a.m.
On a point of order. Mr. Speaker, this Supplementary Appro- priation Bill was brought to the House before we rose last year. It was the wisdom of this august House that because the Constitution said “the following year” we should defer it till that time.
Dr. A. A. Osei 11:20 a.m.


So we sat up and we are just doing what you said we should do. I do not see why my hon. Senior Colleague is behaving as if the work has not been done. So he should withdraw; he is misleading this House.
Mr. Bagbin 11:20 a.m.
Mr. Speaker, I think my
hon. Colleague was looking at my mouth, not listening to me. I stated that yes, you are to bring it this year, 2007, but we have January, we have February and we have March; and it is in the Report of the Committee, the first paragraph --
“Introduction: The Supplementary Appropriation Bill for 2006 was laid in the House on Thursday, 8th March, 2007 and referred to the Finance Committee for consideration and report . . .”
Prof. Gyan-Baffour 11:20 a.m.
Mr. Speaker, this was brought to the House but was not laid based on the Committee's own advice, not ours. The Committee, including the Ranking Member actually told us that, “No, you cannot do it now; take it back”. That was where the whole thing started from and that was last year. So if it is now that it is coming, it is the Committee's making not the Ministry's.
Mr. Bagbin 11:20 a.m.
Mr. Speaker, the Ministry of Finance and Economic Planning was rightly advised not to lay the Supplementary Appropriation Bill last year. They were not advised not to lay it in January, not to lay it in February, but to lay it in March. That is what I am saying. I am saying that the proper thing was to have brought it early in the year for us to pass it. March 8 is not early enough; it should be in January and I am simply drawing their attention to it that next time they should do the right thing. Do not -- [Interruption.]
Mr. Kyei-Mensah-Bonsu 11:20 a.m.
On a point of order. Mr. Speaker, really, what my hon. Colleague the Minority Leader is labouring to establish is much ado about
nothing.
The Ministry brings this document in early December and this House in its own wisdom, via its Committee advices them to bring it this year; and the first quarter of this year cannot, under any circumstances, be described as a late period in the year.
So what he is labouring to establish is clearly neither here nor there. He is misleading this House and the entire nation by this kind of postulation.
Mr. Bagbin 11:20 a.m.
Mr. Speaker, my hon. Colleague is completely out of order. [Interruption.]
Mr. Speaker 11:20 a.m.
Chief Whip, you have not been called upon.
Mr. Bagbin 11:20 a.m.
Mr. Speaker, my hon. Colleague again is violently out of order. [Laughter.]
Dr. A. A. Osei 11:20 a.m.
On a point of order. Mr. Speaker, I object to the use of the language “the Ministry went tot sleep”. I am standing on my feet yet my hon. Senior Colleague is telling me that I went to sleep.
Mr. Speaker, he is lawyer; I am not a
Mr. Speaker 11:20 a.m.
Deputy Minister, are you the Ministry? [Laughter.]
11. 30 a.m.
Dr. A. A. Osei 11:20 a.m.
Mr. Speaker, I am part
of the leadership of the Ministry. Mr. Speaker, at this time in our life, we all work by the Constitution. I want to crave your indulgence to read the constitutional requirement in article 179 (9) and I quote:
“Where, in the case of a financial year, a supplementary estimate has been approved by Parliament in accordance with clause (8) of this article, a supplementary Appro- priation Bill shall be introduced into Parliament in the financial year next following the financial year to which the estimate relates . . .”
Mr. Speaker, there is nothing about month in the Constitution; it said “financial year”. We are in the financial year following when the estimates were presented, even in the first quarter.
Mr. Speaker, we are abiding by the Constitution so I am surprised my hon. senior Colleague who is an expert in the Constitution would try to mislead this House by saying that we have been sleeping. Those of us on this side, Mr. Speaker, would like to abide by the Constitution; no more, no less. So I think he is misleading this House and he should withdraw. We are not “booming” here; we are abiding by the Constitution.
Mr. Bagbin 11:20 a.m.
Mr. Speaker, when King Lear said “no more, no less”, he meant business. I think my hon. Colleague is now waking up. The fact that the constitutional provision says the financial year next, does not mean they can introduce it in December, in September. I am drawing their attention to the fact that, time is of essence and that next time they should bring the Bill earlier than this time. That is all I am drawing their attention to.
But Mr. Speaker, it is a constitutional duty we must perform and therefore we have to support the Bill, but I expect my
Mr. Bagbin 11:20 a.m.


hon. Colleagues who are manning the Ministry now to make sure that they act timely next time.
Mr. A. K. Zigah (NDC - Ketu South) 11:20 a.m.
Thank you, Mr. Speaker, for the opportunity. I would like to support the motion but before we approve of it, let me state that there is an issue that cropped up at the committee level and the hon. Deputy Minister for Finance and Economic Planning promised to provide the details of that. The issue that cropped up was that the supplementary appropriation of ¢5.6 trillion was allocated to investment activities and at the committee level there was the issue of whether an amount of ¢180 - [Interruption.]
Dr. A. A. Osei 11:20 a.m.
Mr. Speaker, my hon. Colleague and Friend, an esteemed hon. Member of the Committee, is grossly misleading this House. Mr. Speaker, if he would go back and look at the supplementary estimate, it did not say that the entire amount went to investments.
He has just told the House that ¢5.6 trillion went to investment which is a complete lie; it is a lie because he is stating that that was what we put there. I am sorry he is stating the wrong facts, Mr. Speaker, and he is a Member of the Committee.
Secondly, he is saying that the Deputy Minister promised but Mr. Speaker, I did not make any promises to the Committee. He asked a question relating to the vote for the Office of the President and the Office of Chief of Staff and the Committee agreed that at the appropriate time, he as an hon. Member should call that office to the Committee and ask those questions. But for him to come and stand on the floor of the House and completely mislead this House, I do not know his motive.
I think he should withdraw those two statements and go on to the appropriate matter.
Mr. Zigah 11:20 a.m.
Mr. Speaker, I think the hon. Deputy Minister is completely out of order. He should listen to the point that I am making and when I finish he would react to it.
The point I am making is that ¢731 billion was allocated to Government Machinery, under investment activities, and out of this figure, ¢182 billion was allocated to Ghana @50 Secretariat. The issue is that Ghana @50 Secretariat is using part of this money as recurrent expenditure and we are saying that if the whole amount was allocated to investment activities, why are they using part of that figure for recurrent expenditure?
He promised that they would provide the details later and this is what I am raising. I am not raising the total figure. The Secretariat should furnish the House with the portion of that ¢182 billion which they are using for recurrent expenditure.
Mr. Speaker 11:20 a.m.
Hon. Member, are you speaking to the motion?
Mr. Zigah 11:20 a.m.
Mr. Speaker, I am speaking to the motion. The motion is that we are approving a figure which was allocated to investment activities yet a portion of this is being used for recurrent expenditure and I want a clarification; that is what I am saying.
Dr. A. A. Osei 11:20 a.m.
Mr. Speaker, a point of correction. He continues to mislead this House and the records can prove it. In his first statement he quoted the sum of ¢5.663 and now he is quoting ¢731 -- Can he make up his mind which figure he want to use? Secondly, he is saying I promised. Mr. Speaker, that is not factual. I cannot speak for the Office of Chief of Staff and the Minister for Presidential Affairs so how could I make the promise?
Mr. J. D. Mahama 11:20 a.m.
Mr. Speaker, as the hon. Minority Leader said, this is a constitutional requirement and we have to support it so that it would be passed but certainly we can make a few comments and draw Government's attention where we think there are some lapses.
Mr. Speaker, in the Committee's Report it says that a total of ¢805 billion was made for payment of Tema Oil Refinery (TOR) under recovery in terms of the cost of petroleum products. Mr. Speaker, as far as I know, this Government has pursued a policy of full cost recovery in petroleum products.
I can understand when they say that money is used for TOR debts, but for under-recovery, I am surprised they would transfer the ¢5 billion when they have been pursuing a full-cost recovery policy in petroleum. We have been paying the full price and they have even been taxing us excessively in addition to the full-cost that we pay. So where this under -recovery comes from, I cannot understand.
Mr. Speaker, my second point is, this is a supplementary estimate that intro-duced the famous US$20 million for Ghana @ 50 into this House. I want to beg this House that we should never ever make that mistake again. We at that time insisted on a breakdown of what that money was going to be used for and we were assured that the money was needed urgently and so we should just pass it and that afterwards we would be given the breakdown.
Mr. Speaker, that breakdown was never presented to this House and when we insisted on accountability and were calling the officers involved to come and explain, they arrogantly snubbed this House. Mr. Speaker, they did not even
Mr. Kyei-Mensah-Bonsu 11:20 a.m.
Mr. Speaker, my hon. Colleague Member for Bole-Bamboi is misleading this House. Mr. Speaker, when he says that when officers were invited to give us a statement of account, they arrogantly snubbed this House is manifestly untrue, it is untrue.
rose
Mr. Speaker 11:40 a.m.
Minority Leader, I
have not called on you, I have not called you yet.
Mr. Kyei-Mensah-Bonsu 11:40 a.m.
Mr.
Speaker, this violent intrusion into my presentation by the Minority Leader is unacceptable. So my hon. Colleague cannot say that as a matter of fact the person, that official arrogantly snubbed this House.
Mr. Speaker, some of us believe that the Committee was wrong to have invited Dr. Wereko-Brobbey in the first place. Some
Mr. Kyei-Mensah-Bonsu 11:40 a.m.


of us have that opinion. Mr. Speaker, so if he is stating his opinion, he may state his opinion but that certainly cannot be the view of this House, it certainly cannot be the view of this House.
Mr. Speaker 11:40 a.m.
Hon. Member for Bole-
Bamboi, please continue.
Mr. Mahama 11:40 a.m.
Mr. Speaker, let us
not, on the altar of partisanship, whittle down the powers of this House. [Hear! Hear!] We shall not remain in government forever. Mr. Speaker, this House has been given powers and we must exercise those powers. A committee of this House represents this House and a committee of this House can summon any public officer who handles public money.
Mr. Speaker 11:40 a.m.
Chief Whip, I have not called you.
Mr. Mahama 11:40 a.m.
This House has the power to summon any public officer who handles public moneys to come and account. Mr. Speaker, that is my belief. But Mr. Speaker, I was drawing the attention of this House that we should never, ever make that mistake again.
Mr. Speaker, when that Supplementary Estimate was brought we were just given an omnibus sum of $20 million allocated to Ghana @ 50 Secretariat, under the Office of the President. When we raised the issue about what the money was going to be spent for and that we should be given a breakdown of the expenditure for that
amount, it was not given. And as I stand today, that breakdown in expenditure has not been brought to this House.
rose
Mr. Speaker 11:40 a.m.
Chief Whip, do you have
a point of order?
Mr. Kyei-Mensah-Bonsu 11:40 a.m.
Precisely, Mr. Speaker. Mr. Speaker, this House never allocated any money to Dr. Wereko- Brobbey -- never. So that is why we maintain that the letter was wrongly addressed. Mr. Speaker, so his view on this matter is totally incorrect.
Mr. Mahama 11:40 a.m.
Mr. Speaker, in this House when we allocate moneys in this House to the various sectors we allocate money, by programmes, to the Ministries. Mr. Speaker, at the end of it the Minister moves a motion for so many billions to be approved for the operations of that Ministry.
Mr. Speaker, part of those moneys go to sub-agencies and para-statals. For instance, if an omnibus figure of ¢1trillion is allocated to the Ministry of Communications, part of that ¢1 trillion -- Let us assume ¢100 billion -- goes to the Meteorological Services Department for its operations as an agency of the Ministry; and he is telling me that a committee of the House has no right to summon the Chief Executive of the Meteorological Agency to come and testify before it?
We approved that; it is true we did not approve it to Dr. Wereko-Brobbey but we approved it for the Office of the President. And under the Office of the President has been established a sub-secretariat called Ghana @ 50 Secretariat with a Chief Executive Officer handling and implementing programmes and spending government moneys; and he is telling me today that Parliament has no right to call the Chief Executive of that Secretariat.
Mr. Speaker 11:40 a.m.
Let us speak to the
motion; we should not drag this matter. Let us speak to the motion, please.
Mr. Mahama 11:40 a.m.
Mr. Speaker, I want to make progress; he keeps pulling me back. The point I was making was that we have a responsibility to the people of this country, and that in future when supplementary estimates are brought the Ministry must do its homework.
We do not want them to bring us omnibus figures without giving us a breakdown as to what the expenditure of those figures is going to be. That is what has brought us to this problem with this Ghana @ 50 Secretariat, and I hope that in future he will not humiliate this House the way it has happened in the past.
We must insist that the right thing is done at the right time so that tomorrow when we insist on accountability, people would not just come and tell us they used how many billions for cars, they used this for that; but what is the breakdown, they would not tell us. It is not proper.
Mr. Speaker 11:40 a.m.
Deputy Minister, please
wind up.
Prof. Gyan-Baffour 11:40 a.m.
Mr. Speaker, let
me thank hon. Members on both sides of the House for supporting this motion and for the advice and useful suggestions that they have given to us.
Mr. Speaker, next year the Auditor-
General's Report -- and hon. Sallas- Mensah is the Chairman; he is leaving -- will give us the breakdowns of all that Members are looking for and therefore, maybe, we have to wait for the Auditor- General's Report. He is the most qualified to actually audit the Budget.
Mr. Speaker, on that note, I will urge
all Members in the House to support
the motion and get this constitutional requirement met.
Question put and motion agreed to. The 2006 Supplementary Appro-
priation Bill was accordingly read a Second time.
Data Processing Control Board Decree (Repeal) Bill
Deputy Minister for Finance and
Economic Planning (Prof. G. Y. Gyan- Baffour) (on behalf of the Minister for Finance and Economic Planning): Mr. Speaker, I beg to move, that the Data Processing Control Board Decree (Repeal) Bill be now read a Second time.
Mr. Speaker, the purpose of the
Bill is to repeal the Data Processing Control Board Decree, 1976 (SMCD 19) which established the Central System Development Unit as part of the Civil Service and placed its control and operation under the Ministry of Finance and Economic Planning so that the Unit would be transferred to the Ministry of Communications.
Mr. Speaker, the Minis t ry of
Communications was established to oversee the local information and communication technology industry as a strategy of wealth creation to make the country the hub of Information, Communication and Technology (ICT) excellence in the subregion.
Mr. Speaker, in consequence of this, the functions, duties and programmes of the Central Systems Development Unit and its staff are transferred from the Ministry of Finance and Economic Planning to the Ministry of Communications, where they rightly belong.
Mr. Speaker, on that note I beg to move.
Question proposed. Chairman of the Finance Committee
(Nii Adu Daku Mante): Mr. Speaker, I rise to present your Committee's Report and crave your indulgence to read out the Observations of your Committee.
1.0 Introduction
The Data Processing Control Board Decree (Repeal) Bill was laid in the House on Wednesday, 5th July 2006 and referred to the Finance Committee for consideration and report in accordance with the 1992 Constitution and the Standing Orders of the House.
To consider the Bill, the Committee met with the two Deputy Ministers for Finance and Economic Planning, hon. Dr. Anthony Akoto Osei and hon. Prof. George Gyan- Baffour and officials from Ministry of Finance and Economic Planning and reports as follows:
2.0 Reference Documents
The Committee referred to the following documents:
(i) The 1992 Constitution of the Republic;
( i i ) T h e D a t a P r o c e s s i n g Control Board Decree, 1976
(SMCD 19).
3.0 Background
The Central System Development Unit was established under the Data Processing Control Board Decree (SMCD 19) in 1976 as part of the Civil Service and placed under the control of the Ministry for Finance and Economic Planning, Its primary role is to ensure the development and the general control of the supporting

skilled manpower and the co-ordination of computer work in the public sector.

The Communications Ministry was also established to superintend the local Information and Communications Technology (ICT) industry as a strategy of wealth-creation to make the country the hub of ICT excellence in the subregion.

However, the development of the Information Communication Policy and the National Telecom Policy for accelerated national development has required a review of the existing laws in the area of information technology.

In consequence of th is , there is the need to transfer the functions, duties and programmes of the Central Systems Development Unit and its staff from the Ministry of Finance and Economic Planning to the Ministry of Communications.

4.0 Object of the Bill

The Bill seeks to repeal the Data Processing Control Board Decree 1976 (SMCD. 19) which in section 2, established the Central Systems Development Unit as part of the Civil Service and places its control and operation under the Ministry of Finance and Economic Planning.

5.0 Contents of the Bill

Clause 1 of the Bill repeals the Data Processing Control Board Decree, 1976

(SMCD 19).

Clause 2 deals with transitional and savings provisions. Under this clause, the Central Systems Development Unit is transferred to the Ministry of Communications and the staff of the Unit to the Ministry established under the Civil

Service Law. Licences, approvals given by the Board

and other lawful acts done under the SMCD 19 are also saved in this clause.

6.0 Conclusion

The Committee after carefully

examining the Bill and finding it to be in the right direction respectfully recommends to the House to adopt its report and pass the Data Processing Control Board Decree (Repeal) Bill.

Mr. Speaker, I respectfully submit this

Report and entreat hon. Members of this House to approve of it.
Mr. Samuel Sallas-Mensah (NDC - Upper West Akim) 11:50 a.m.
Mr. Speaker, I rise to support the motion.
Mr. Speaker, any time we approve a Budget in this House, this Data Pro-cessing Control Board has always been under the Ministry of Finance and Economic Planning. So when the Bill was laid to repeal it and place it under the Ministry of Finance and Economic Planning again, some of us were wondering why they still wanted to place it under the Ministry of Finance and Economic Planning.
But it is now clear that it should be under the Ministry of Finance and Economic Planning formally. So what we are doing is actually repealing a Bill and formally placing it under the Ministry of Communications.
Mr. Speaker, it is now under the
Ministry of Communications. So Mr. Speaker, the Bill is in the right direction and must be supported.
Dr. A. A. Osei 11:50 a.m.
Mr. Speaker, just a
point of information. It is now under the Ministry of Finance and Economic Planning and we are repealing it so it can go to the Ministry of Communications.
Mr. Speaker 11:50 a.m.
Hon. Deputy Minister for Finance and Economic Planning, you may wish to wind up, if at all.
Prof. G.Y. Gyan-Baffour 11:50 a.m.
Mr.
Speaker, again, I would like to thank hon. Members for supporting this Bill and I crave their assistance to support the Bill overwhelmingly.
Question put and motion agreed to.
The Data Processing Control Board
Decree (Repeal) Bill was accordingly read a Second time.
Mr. Speaker 11:50 a.m.
Hon. Members, we
Mr. A. O. Aidooh 11:50 a.m.
Mr. Speaker, the
Chairman has proposed that we defer this matter till tomorrow. He tells me that they are in consultation and he prefers we step it down and have it taken tomorrow morning.
Mr. Speaker 11:50 a.m.
You want to defer it to
tomorrow?
Mr. A. O. Aidooh 11:50 a.m.
That is the
Chairman's plea.
Mr. Speaker 11:50 a.m.
All right. Item 15 -
Committee meetings.
Mr. A. O. Aidooh 11:50 a.m.
Mr. Speaker, I beg
to move, that the House do now adjourn to tomorrow the 16th of March, 2007 at
Mr. A. S. K. Bagbin 10 a.m.
Mr. Speaker, I
beg to second the motion.
Question put and motion agreed to.
ADJOURNMENT 10 a.m.