Debates of 11 Mar 2009

MADAM SPEAKER
PRAYERS 11:25 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 11:25 a.m.
PAPERS 11:25 a.m.
Madam Speaker 11:25 a.m.
The report has been laid and it is for distribution -- [Pause.]
Mr. John T. Akologu 11:25 a.m.
Madam Speaker, the Finance Committee is still meeting on these Bills. The reports are not ready yet, so you may stand it down in the meantime.
Madam Speaker 11:25 a.m.
We stand down the laying of the report in 4(b) and we move to item 5.
MOTIONS 11:25 a.m.
Prof. G. Y. Gyan-Baffour (NPP -- Wenchi) 11:35 a.m.
My name is Prof. Gyan- Baffour, Member of Parliament for Wenchi.
Madam Speaker, thank you for giving me the opportunity to contribute to this debate on the Budget Statement and Economic Policy of the Government of Ghana for the 2009 financial year.

May his soul rest in perfect peace.

Madam Speaker, the only difference that I see in substance is that it is bringing in a few things that are going to change the character of our Budget. The character of

our Budget is being changed because they are trying to link the Budget with changes in prices of certain essential commodities, precisely the prices of petroleum products, the prices of rice, the prices of flour, and in fact, the prices of edible oil. This is a trend that I think we should try and move away from.

It brings to mind things that were happening in the 1970s and 1980s where in anticipation of a Budget one would see people hoarding products and again one would see a lot of queues on the road side, people looking for petrol because they would be anticipating an increase in the price of petrol. This character has to change. We do not have to link our Budgets with prices, especially with the price of petroleum products.

Madam Speaker, having said that, let me now move on to look at the reduction in taxes that was presented to the House by the Hon Minister for Finance. Before I do that I think it is very clear for us to understand that governments are not, in fact, the authority that fix prices of petrol. Government's powers are limited to the changes of taxes associated with petrol. Therefore, if we try and arrogate to ourselves the power of reducing petroleum prices in this deregulated era we are going to have difficulties because very soon we would be out of taxes and we would not know what to do.

So my caution is that we should not as a government, either an NPP Government or an NDC Government, be trying to arrogate to ourselves the sole power of being able to change the prices of petroleum without really going in there to say that we are going to subsidise it. Therefore, I would give a caution. But after I have done that, let me now give the breakdown. Let me try and analyse what was done in the House last week and to show to the public that this change in taxes does not really

have much impact on the bottomline. Madam Speaker, the price of premium

before it was changed was GH¢3.69 per gallon. After the change it is going to go to GH¢3.51, a change of 18 pesewas. Kerosene -- from GH¢3.15 to GH¢2.99, a change of 16 pesewas. Gas oil -- GH¢4.00 to GH¢3.83; 17 pesewas. [Some Hon Members: Change.] Madam Speaker, this 18 pesewas, 15 pesewas reduction per gallon cannot convince the tro-tro driver to reduce the fare. Assuming that he can even reduce the fare, he is going to reduce it by 4.8 per cent of the tro-tro price. How much is that? Nothing.

Madam Speaker, this implies that the change that is being sought here would have no impact on people who sit in tro- tro, it would have no impact on those in the farms, it would have no impact on my people in the villages who use buses to come from Wenchi to Techiman and Techiman to Accra.
Mr. C. S. Hodogbey 11:35 a.m.
On a point of order. Madam Speaker, I really have a deep respect for Prof. Gyan-Baffour but what I want to tell him is that the taxation, the tax rate and the volume have a great effect, meaning the fact that he thinks there is a minimum tax -- [Interruption.] He thinks it is very insignificant. What I want to tell him is, the volume of petroleum product being bought by the consumers goes a long way to reduce whatever they put in. So I want to draw his attention to that.
Madam Speaker 11:35 a.m.
Hon Member, please, continue.
Mr. Osei Kyei-Mensah-Bonsu 11:35 a.m.
On a point of order. Madam Speaker, with respect, the Hon Member who just intervened, the Hon Hodogbey is carving

a niche for himself for interrupting Hon Members on points of disorder in this House. [Laughter.] Our rules and procedures are very clear on what we have been doing. Standing Order 92 which deals with interruption of Hon Members provides -- and for his elucidation and with your permission I would want to quote:

“No member shall interrupt any other Member except:

(a) by rising to a point of order, that is, where any of these Orders is alleged to have been infringed, whereupon the Member speaking shall resume his seat and the Member interrupting shall simply direct attention to the point which he desires to bring to notice and submit it to Mr. Speaker for decision.”

Madam Speaker, he often injects himself and starts arguing and debating matters that are on the floor. [An Hon Member: Troublemaker.] Clearly, he is in obvious breach of our rules and the Hon Member has been in this House for at least four years and I thought that he should know better. Every now and then we are drawing his attention to these obvious breaches. I am trying to cultivate some respect for my Hon Colleague but he is trying to depreciate my effort by his conduct.

So Madam Speaker, I would beg of him that the next time he is rising on a point of order he should indicate to us which Order is being breached and then you will give your ruling before he proceeds. [An Hon Member: He is from America.] This is very uncharitable to the House and I believe that he should no longer be tolerated in this regard.
Prof. Gyan-Baffour 11:35 a.m.
Madam Speaker, this change of 18 pesewas and 17 pesewas are all going on within the context of oil import prices which have fallen from $147 per barrel to lower than $50 per barrel. What I am saying here is that, that change that would go to the people in the rural communities and in the farms and in the villages will have no impact at all. The impact would be zero, it will be for only those of us who are in Accra, in Kumasi; you and I, who have got cars and who buy petrol will go to the pumps and get that change in our pockets.
Mr. Hodogbey 11:45 a.m.
Madam Speaker, I am rising on Order 92(b). The point of order relates to the Minority Leader mentioning my name -- [Interruptions] -- using an abusive language, which is very unparliamentary. The point is I did not get up without any reason; I got up to explain, to intervene, to tell Prof. Gyan- Baffour that he was deceiving the House by saying the tax proposed by H.E. the President which had been alluded to is incorrect -- [Interruptions.] The point I am trying to make is that, for him to have mentioned my name and used an abusive language, he must withdraw.
Madam Speaker 11:45 a.m.
Hon Member, what
exactly did he say that you did not like? Because I thought he drew attention to the rules and the Orders. But what did he say about you personally so that we can examine it in full?
Mr. Hodogbey 11:45 a.m.
All right, for saying I do not deserve some respect, or whatever he said, was very unparliamentary and abusive. That I do not deserve some respect and I have assumed a territory or a country for myself; that is what he said. That is very abusive and he has no respect for me. That was very abusive and he must withdraw that language.
Madam Speaker 11:45 a.m.
Hon Member, did
Mr. Kyei-Mensah-Bonsu 11:45 a.m.
Madam
Speaker, first of all, it is not the practice of this House to come on a point of order against a point of order and my Hon Colleague must learn this.
Secondly, Madam Speaker, what he is attributing to me, I did not say that. [Interruption.] If he did not hear, he should ask me what I said. I did not say what he said, that he does not deserve respect; I did not say that. Madam Speaker, with respect to him I do not want to say that, beyond what I said, which he did not hear, perhaps he needs a hearing aid. I do not want to say that. [Laughter.] But clearly he did not hear what I said.
Mr. Hodogbey 11:45 a.m.
Madam Speaker, I have deep respect for the Minority Leader. For him to say I need a hearing aid, is very insulting -- [An Hon Member: He said he did not want to say that.] But he just said it; it is very un-parliamentary; he has to withdraw that.
Madam Speaker 11:45 a.m.
That somebody needs a hearing aid is unparliamentary? I do not go with you. Maybe, a lot of people here need hearing aids and that is not unparliamentary. It is the earlier objection you took that he said that he had no respect for you that I am trying to examine. But he said he did not say that. I am trying to examine that and he said he did not say that, that he has great respect for you.
Mr. Hodogbey 11:45 a.m.
Madam Speaker, I do have a deep respect for the Minority Leader. But he is not a physician to tell me I need a hearing aid. For him to make that kind of statement is very derogatory and he has to withdraw it
Madam Speaker 11:45 a.m.
Well, I think I have to make my ruling on this matter. I thought you were complaining earlier that he had said that he had no respect for you, which

he had said he did not say. Now you are complaining about the fact that he said you may need a hearing aid. Honestly, that is not unparliamentary because I may need a hearing aid too -- [Interruption.] I do not think we can say that about people who use hearing aids. That is my ruling on that point. On the point that he said that he has no respect for you, he said he did not say that -- [Interruptions.]
Mr. Hodogbey 11:45 a.m.
Madam Speaker, it is too bad for certain people to arrogate to themselves certain positions and make derogatory statements against Members of this House. The point I am making is -- [Interruption.]
Madam Speaker 11:45 a.m.
Within the laws if he makes a statement against you which is unparliamentary then we would ask that he should withdraw. But I have ruled that, that somebody will need a hearing aid is not unparliamentary. What about people who use hearing aids? I do not know how many people use hearing aids here. But maybe, one day I will need to use a hearing aid and I do not think it is denigrating that somebody uses a hearing aid.
This is my ruling on that objection. So if you would accept from the Minority Leader that he did not say that he had no respect for you then we can drop the case. He said he never said that.
Mr. Hodogbey 11:45 a.m.
All right.
Madam Speaker 11:45 a.m.
Thank you, Hon Member. Can I have the Hon Member to continue?
Prof. Gyan-Baffour 11:45 a.m.
Madam Speaker, we are told by the Hon Minister for Finance that the reduction in these taxes would cost the nation about GH¢50 million. Madam Speaker, this GH¢50 million is not going to have any impact on those who need it most. It is going to be a

change that would go into the pockets of those in the cities and towns who would get changes of 18 GH pesewas here and there.
Mr. Avedzi 11:55 a.m.
Madam Speaker, I rise on Order 91(a). My Hon Colleague is misleading the House. Madam Speaker, the Hon Member said the GH¢50 reduction in petroleum taxes will not have any direct effect or benefit on the people of Ghana. That is not true, it is factually incorrect.

Madam Speaker, this is a tax reduction on petroleum products; this is a tax reduction on kerosene and the greater majority of Ghanaians in the rural areas buy kerosene so they are going to be direct beneficiaries of the tax reduction. So what he is saying that it would go into the pockets of very few people is never true.

Again, the petroleum product is bought by our trotro operators who are many in this country. They are going to benefit and also transfer this to the passenger. The greater proportion of Ghanaians are going to benefit from the tax reduction and therefore, what he said is incorrect.
Madam Speaker 11:55 a.m.
Hon Member, I think if he said that the reduction in petroleum taxes would not benefit people much, that is his point of view.
Mr. Avedzi 11:55 a.m.
Madam Speaker, exactly so. That is his point of view but it is factually incorrect, so I have to put him
right.
Madam Speaker 11:55 a.m.
I am not going to
call on him to elucidate what he said but I think he is entitled to his view. Can we carry on?
Mr. Ambrose P. Dery 11:55 a.m.
Madam Speaker, thank you for the opportunity. I think that we should respect the Standing Orders if we are to use the time here meaningfully. Madam Speaker, it is not for nothing that we sit here up to 2 o'clock and therefore these Standing Orders are supposed to assist us.
Madam Speaker, Order 91 only states as follows 11:55 a.m.
“Debates may be interrupted -
(a) by a point of order being raised.”
However, it does not give you a chance to interrupt a person except you come under Order 92, where Order 92(1) says that:
“No Member shall interrupt any other Member except:
(a) by rising to a point of order, that is, where any of these Orders is alleged to have been infringed, . . .”
Madam Speaker, when a Member has then raised that Order, the Member should pause for you, Madam Speaker, to rule as to whether it is a point of order before he goes on. [Interruption.] Madam Speaker, anytime Hon Members get up they just take off at their own tangent. Madam Speaker, (b) states that if you are going to ask for elucidation, you should state it and it should be subject to the Member speaking, giving you an opportunity to speak.
Madam Speaker, there is also another serious abuse in this House by the use of Order 93 (5). When Madam Speaker has
given a ruling, no Member can get up to challenge that except the Member comes by a substantive motion.
Madam Speaker, finally, Order 97 11:55 a.m.
None

“When Mr. Speaker rises to address the House any Member then standing shall immediately resume his seat, and Mr. Speaker shall be heard in silence.”

Madam Speaker, if we are to operate as a serious Parliament and not a circus, which I believe we are not, then these rules must be respected. When Hon Members get up and they want to give their own versions of what an Hon Member of Parliament is saying, that is an argument and you cannot graft your speech or address on another Member's speech.

Madam Speaker, I would plead that we comply strictly by this and that this nation has voted for us to come here to do serious business and not to come and be fooling around.
Mr. Moses Asaga 11:55 a.m.
Madam Speaker, I am rising up to actually support some of his views and to make sure that what Hon Dery is seeking should be strictly abided by both sides of the House. Madam Speaker, I believe that previous interventions that came from the Minority also had similar characteristics. Madam Speaker, he has made a good point and I would urge that we all abide by it so that this debate would be free-flowing. In so doing, I hope when it is our turn to also make our submissions, the same rules would be applied.
Madam Speaker 11:55 a.m.
Thank you, Hon Members. I do not know if you would

all agree with that. I have been trying to enforce these Orders. But when an Hon Member rises, he has to tell me why he is asking to be heard, and that is when the noise comes in and I do not even get the opportunity to hear. So I agree with what the Hon Members have said.

I hope we would all abide by the rules because I will abide by the rules if I am given the opportunity to hear why an Hon Member is making a point of order and then decide whether it is permitted. So I thank Hon Members and I hope we would abide by the rules.
Prof. Gyan-Baffour 11:55 a.m.
Madam Speaker, I know how we are all sensitive to these petroleum prices and that is why I started by saying that Government should not arrogate to itself the unconstraint power of reducing petroleum prices because the ex-factory price is not something that the Government has control over; it is only the taxes. So going out to actually promise can create a problem. That is why we are having this difficulty and that was why I gave the first caution. So Madam Speaker, on that note, I would shift from this and then look at macro-economic indicators that were discussed yesterday by my Hon Colleague on the other side.
Madam Speaker, 2008 was a very unique year just as 2000 was a unique year. Madam Speaker, both years were election years and in both years we had external shocks that this country did not have much control over. So comparing 2008 with 2007 is just like comparing apples and oranges; you would rather have to compare 2008 with 2000 and that is what I am going to do, Madam Speaker.
Madam Speaker, the GDP growth that was actually reported by the Minister for Finance was 6.2 per cent for 2008. Madam Speaker, in 2000, the GDP growth of this country was almost 3.7 per cent. Madam
Prof. Gyan-Baffour 12:05 p.m.
Speaker, inflation in 2008, as reported by the Minister for Finance, was 18.1 per cent and it was 40.5 per cent in 2000. Madam Speaker, the exchange rate depreciation, as at the end of December last year, was 20.6 per cent; that same figure was 49 per cent at the end of December, 2000.
Madam Speaker, interest rates on 91
days treasury bills -- 24.7 per cent in December 2008. That same month in 2000 it was 38 per cent. Madam Speaker, our reserves at the end of last year was for 1.8 months of import, that is almost two months, and it stood at about GH¢2 billion. In December 2000, it stood at three weeks of import. It was 0.8 and it was GH¢233 million. Madam Speaker, these figures actually show that when you compare 2008, which is more comparable with 2000, all the indicators were higher in 2008 than in 2000 as I just said.
Madam Speaker, when we say that an economy is resilient, what it means is that notwithstanding all these shocks, the economy grew. And this economy was growing at 6.2 per cent and even higher despite all the turmoil that was going around us and that is why we say that the economy is resilient.

No economy growing at 6.2 per cent can be described as an economy in shambles or an economy that is broke. A lot of these developed nations are growing much, much lower than 6.2 per cent. So how can you say that 6.2 per cent implies that the economy is broke? Madam Speaker, I think that statement needs to be looked at very carefully.

Madam Speaker, I am also looking at the targets that the Hon Minister for Finance has set for 2009. He said GDP growth rate would be at 5.9 per cent. Madam Speaker,

when we move from 2000 to 2001, from 3.7 per cent -- and these two years were comparable years; from 2000 to 2001 we grew from 3.7 per cent to 4.2 per cent. So for me, downgrading the economy from 6.2 per cent to 5.8 per cent is very, very conservative. We are ready and I think this country can grow faster than 5.8 per cent. So that rate is not a challenging one; I think that target is indeed, very, very conservative.

Madam Speaker, when we look at the reserve - 1.8 months of imports - and then we target two months for next year, knowing very well that the prices of these commodities, gold will go up, the prices of crude oil are down and then we are saying that our reserve can only be just two weeks in addition to what we have now, I think that also is very, very conservative and needs to be revised upwards.

Madam Speaker, let me move away from that and look at the medium-term frame-work which is on page 40 of the Budget Statement and with your indulgence let me just read. The Minister said:

“Madam Speaker, the broad policy objective of the NDC government is to lead this country into middle income status that registers in the lives, livelihoods and incomes of ordinary people by the year 2020.”

I thought we had all agreed that we want to become a middle-income economy by 2015. Maybe, students in the gallery would testify to this nationally-agreed target. So we are all working on a growth target of 7 per cent and above to enable us achieve this goal. Now, we are told that we are coming down to 5.9 per cent and that we are also delaying our entry into this second-class economic world by another five years.

Madam Speaker, are we going forward or we are going backwards? [Some Hon Members: Backwards!] [Interruptions.]

We are in trouble. Madam Speaker, let me just look also at the public debt without really coming back to the main figures. On page 53, paragraph 224 and with your indulgence I would also read this:

“Public debt is largely expected to be kept at sustainable levels, and consequently, total public debt to GDP ratio is expected to be below a targeted limit of 60 per cent in the medium-term.”

We are now at 8 million and we are weeping; we are talking as if it has never happened before. Madam Speaker, the nominal GDP by the year 2011 would be about 28.9 billion; 60 per cent of that would be about 17.3 billion. The implication here is that the target is to get our debt to 17.3 billion in three years. Madam Speaker, from 8 billion to 17 billion, I think we should put our seat belts on; we are going to see more of the borrowing.

Madam Speaker, on water and

sanitation. In fact, what is being said in paragraph 283 on page 1145 -- and Madam Speaker, with your indulgence I would like to read that also:

“The five per cent contribution to the cost of water projects funded by donors and Government by District Assemblies and communi-ties would be abolished . . .”

Madam Speaker, that is a very noble idea. But considering that resources are limited for these projects and considering the fact that local counterparts have been used to determine who gets what, now therefore, the question becomes, if you eliminate it, what is going to be the criteria for determining who should get what?

Therefore, I think we should look at it very carefully and make sure that decisions that are subjective are not used in deciding who gets water, because water is life.

Madam Speaker, I also want to make a point about the Members of Parliament (MPs) Development Fund which is also on page 285, paragraph 1153 and with your permission I read:

“. . . Government will establish the MPs Development Fund which would be financed from the District Assemblies Common Fund and other funds.”

Madam Speaker, that is also brilliant. But my concern here is that MPs, our role does not include initiating development projects. We are first and foremost legislators. But the problem is that the perception out there, in the public domain is that we are the ones who should start the development projects.

This Fund is going to legitimize that perception and therefore the problem is going to be even worse for us because the District Chief Executives (DCEs) who are there already, who have been pointing at certain things, will now go and tell them that, “Look, the development fund for this constituency is with the MP”. Therefore, they would have some arsenal during that period.
Mr. Akologu 12:05 p.m.
Madam Speaker, I rise on Order 91. Madam Speaker, the Hon Member is misleading the House and the general public.
What he is complaining about was actually created even before he entered or joined this House and then the previous
Government worsened the situation -- [Interruptions] -- [An Hon Member: This is no point of order.] I said he is misleading the general public. Portions of it were used to carry out development projects. The Ghana Education Trust Fund (GETFund), portions of it were used to support MPs to carry out development projects thereby making MPs already development agents. So he cannot be deceiving the House.
Prof. Gyan-Baffour 12:05 p.m.
Madam Speaker, I think the Hon Member and my friend should withdraw the word “deceived”; I am not in here to deceive anybody. So I want him to withdraw that and replace it with something else. Because I heard “deceive” and I am sure Madam Speaker also heard that. Please, he should withdraw it and replace it with something else.
Madam Speaker 12:05 p.m.
He says use another word instead of --
Mr. Akologu 12:15 p.m.
Madam Speaker, I had already done that. I said he was misleading, so I had already corrected myself. I do not need to withdraw anything. I said he was misleading the public, to think that somebody was now making MPs development agents. The situation was there and when he was at the Ministry of Finance, he contributed to it. That is all that I was saying; so it is not a new thing.
Prof. Gyan-Baffour 12:15 p.m.
Madam Speaker, I did not contribute to anything. I think this was a District Assembly Common Fund and the House agreed that part of it should go to MPs. So it was the MPs who contributed to that and not me as a Deputy Minister.
But Madam Speaker, honestly, I am
Prof. Gyan-Baffour 12:15 p.m.


not against the idea but what I am saying is that using the MPs Development Fund, that “development” there creates a problem and it is going to put something in the minds of the people. So it can be even an MPs Common Fund or something, without using that word “development”.

So Madam Speaker, on this note I thank you for giving me the opportunity to contribute to this debate. Thank you so much.
Mr. C. K. Humado (NDC -- Anlo) 12:15 p.m.
Madam Speaker, I thank you for giving me the opportunity to support the motion that this honourable House approves the Financial Policy of the Government of Ghana for the year ending 31st December,
2009.

I am also convinced that it is very different. Why do I say so? It is different because of the completeness of data that was presented. When we look at the performance of the 2008 Budget, the current Budget was able to provide data for the performance of the economy at the end of 2008. This was not the case of previous budgets that were presented to us. We had half figures, or three-quarter figures of the performance of the economy.

Madam Speaker, I also believe that this Budget is different because of presen- tation style. It is very simple and logical and in terms of content, the specific interventions that were proposed in the Budget, I think there is a change from what used to be. I would therefore want to take this opportunity to thank H.E. the President and the Hon Minister for Finance for presenting such a wonderful
Prof. S. K. Amoako 12:15 p.m.
On a point of order. Madam Speaker, Standing Order number 92 (b). The Hon Member made a point about half figures and three-quarter figures. I want an elucidation on that. I do not understand what is meant by a half- figure, a quarter-figure and three-quarter figures. He said this was related to the last Budget.
Mr. Humado 12:15 p.m.
Madam Speaker, what I meant was that the data were incomplete.
Madam Speaker 12:15 p.m.
Carry on, because
you said you are prepared to elucidate that point that he raised.
Mr. Humado 12:15 p.m.
Madam Speaker, I would like to touch on the macro economy. There is no doubt that the economic situation that was left for the NDC Government was not a comfortable one. Almost all the macro economic indicators have pointed to the fact that the targets that were set at the beginning of 2008, most of them were not achieved and specifically the Gross Domestic Product (GDP) growth rate, a target of 7 per cent was set, but what was realized at the end of 2008 was 6.2 per cent. They had targeted end of year inflation rate of 6 to 8 per cent, but we ended up with 18.1 per cent.
Madam Speaker, we had targeted an import cover of at least three months at the beginning of 2008, but we ended up with an equivalent of 1.8 months import cover. We also targeted a budget deficit including divestiture of 5.7 per cent, but at the end of the year, we ended up with 14.9 per cent. Clearly, we have missed most of the targets
Mr. Humado 12:25 p.m.


Madam Speaker, I would like to go to

another aspect, the most exciting aspect of the 2009 Budget. The most exciting aspect of the 2009 Budget is the reduction in the excise duty of Petroleum Products. [Uproar] -- [An Hon Member: Sakawa reduction.] There have been criticisms and various views that the reduction in excise duty is -- [An Hon Member: Sakawa] -- not likely to bring about any impact on the lives of Ghanaians. I beg to differ. I beg to differ because the reduction in tariff will immediately be felt --
Dr. Osei 12:25 p.m.
Madam Speaker, my very well respected friend and Hon Member was in the House when this Budget was read and he is saying that only excise taxes were reduced. He is grossly misleading this House. Excise taxes were reduced, the Debt Recovery Levy was reduced and the Social Impact Mitigating Levy was eliminated. He should just give us all the facts. So I think that maybe he just forgot; I will just ask him to just self correct so that we do not mislead the public that it was only one tax that was --
Madam Speaker 12:25 p.m.
I think the only
thing you can do under the Order is to ask him to elucidate on some matters he has raised which you think are not correct rather than the other side. That is my ruling on this.
Dr. Osei 12:25 p.m.
Madam Speaker, thank you.
Madam Speaker 12:25 p.m.
You have put to
your side that the correct side is this and that we will ask you to elucidate on it.
Mr. Humado 12:25 p.m.
Madam Speaker, that is additional information and it does not take from my earlier point; it is just an addition to what I was saying, so thank you.

But Madam Speaker, the reason why I beg to differ from his opinion is that the reduction in these tarrifs will have an immediate impact on millions of Ghanaians who are transport owners, be it private cars, be it motorcycles, be it mini-buses and trucks.

The amount of money that you spend on petroleum products, if you add it up on weekly basis and you add it up on monthly basis; five to ten per cent reduction cannot be said to be insignificant. I think five to ten per cent reduction in the prices of petroleum products in any competitive economy is significant. I therefore believe that this will have an immediate impact on majority of Ghanaians.

We have farmers out there who use tractors and they buy diesel, they will have an immediate reduction in the amount that they spend. We have rural dwellers who use kerosene daily. Rural houses that use kerosene daily and for them, this is an immediate relief.
Dr. Osei 12:25 p.m.
Madam Speaker, I come this time again under Order 92 (b) and I do not want to impute any motive on the part of my Senior Colleague that he might be misleading this House.
It is not true that there are one million transport owners in this country. I am informed reliably, that the number of vehicles are even not around one million, so how could there be one million show transport owners? So I think he meant to say that there might be some transport owners who might be favourably impacted so he should just leave out the one million so that the records do not tell us.
Mr. Humado 12:25 p.m.
Madam Speaker, what I said was over a million transport owners and I tried to explain the categorization
from motorcycles, private cars to trucks and all these people fall under transport owners. Yes.
Apart from that, we have millions
of urban households who use liquefied petroleum gas and these households that use liquefied petroleum gas also stand to have immediate benefits from this cost reduction. Madam Speaker, I therefore beg to differ from the views expressed by sections of the society and even on the floor of Parliament, that this will not have an immediate impact; I beg to differ because I believe that there will be an immediate impact on millions of Ghanaians throughout this country.
It is only when it comes to indirect benefits or trickle-down effects where a trucker buys fuel and we expect that he reduces transport fares; that is where the subject is contentious. But this is where again, we have regulatory bodies like the Ghana Private Road Transport Union (GPRTU) that we have to bring on board.
Papa Owusu-Ankomah 12:25 p.m.
Madam Speaker, this is a point of order based on Order 92 (a). The Hon Member is clearly misleading the House. If we look at the Addendum to the Budget Statement, the purpose of the reduction in the excise and other taxes on petroleum is clearly stated by the Minister for Finance and it says:
“Madam Speaker, when this is done we expect transport agencies to show good faith and reciprocate government's gesture by passing on the reductions on to the travelling public.”
So if we are to determine whether this has had any effect, then we have to ask ourselves, to what extent have these reductions been passed on to the travelling public? So far as he is talking about

[MD. OSEI] transport owners being bene-ficiaries of this reduction in taxes, that is not the purpose for which the Minister for Finance introduced the Bill.
Mr. Humado 12:25 p.m.
Madam Speaker, I think we are all saying the same thing except that we are couching it differently. The immediate beneficiaries, I have already outlined. They will benefit immediately but the second category, the trickle-down effect is what I am talking about. And that one, it is too early in the day to make any conclusions on that and I am saying that this is where we have regulatory bodies such as the GPRTU to whom we should appeal. We have to appeal to those bodies to do their work in order to help in the implementation of that aspect of the Budget.
His Excellency the President, in his State of the Nation Address also alluded to this. He is asking Ghanaians to help him to manage the economy and I think this is an example of what he was saying.
Madam Speaker, I would like to move on to some other aspects of the petroleum tax reduction. Just by having taxes reduced does not mean that all bottlenecks in the system will immediately vanish. Before the reduction we have problems of distribution --
Mr. Joseph Osei-Owusu 12:25 p.m.
Madam Speaker, the Hon Member on the floor is grossly misleading the House and I intervene on Order 92 (a). He had earlier on said over millions of drivers. His attention had been drawn to the fact that the number of vehicles registered in the country were less than one million but he came back to say that it is over a million because it includes motorcycles and all. I think that it is not in doubt that I am the immediate past Chief Executive of DVLA and I have in my bosom the records.
Mr. Joseph Osei-Owusu 12:25 p.m.


At the close of 2008, the number of registered vehicles, including motor- cycles, tractors, combine-harvesters, every one of them that has a number, were less than one million. In addition, several individuals have more than one vehicle including my goodself and the chunk of them belong to the Government of Ghana. So there cannot be millions of vehicle owners in Ghana. That is a misleading point and I wish that to be corrected.
Mr. Humado 12:35 p.m.
Madam Speaker, my
Hon Colleague has not been able to give me the exact figure of vehicles registered as at the end of -- [Interruption] -- He is also speculating that it could be lower than one million; so it is his words against mine. Therefore, I will continue.
Madam Speaker, I would like to talk about the distribution network of petroleum products. Even before taxes were reduced, we had problems of distribution of premix fuel and problems of distribution of kerosene. So I believe that the implementation of the excise duty reduction should also go along with improved distribution network so that these facilities, even though are now at affordable prices, can reach the various beneficiaries.
Madam Speaker, I would like to move
on to poverty reduction expenditures and the progress towards Millennium Development Goals (MDG).
Madam Speaker, we all know that the NDC is a socialist democratic party -- [Hear! Hear!] -- And therefore by nature, we are pro-poor. I have taken a very good look at the poverty reduction expenditures, and I have realized that in almost all the six components of the poverty expenditures, the 2009 Budget has made significant increases in budgetary allocations except for the component of pro-poor agriculture.
There are significant increases on all components, except for agriculture, and this is a clear testimony that the NDC Government is pro-poor and has the welfare of the masses at heart.
Madam Speaker, I am also delighted by the specific interventions that have been put in place in order to improve the poverty situation in the country; specific interventions such as the increase in capitation grant from GH¢3.0 to GH¢4.50 per head. I think it is significant, it is about 50 per cent increase, and that is in response to the ground situation, that the capitation grant is not adequate to cover most of the needs of pupils.
I also want to mention the supply of school uniforms and exercise books as one of the initiatives of the President's Budget, which will go a long way to improve the situation at the grass roots.
Just yesterday, I was watching a TV 3 documentary, and I saw primary school children sitting on the floor, with no exercise books, under thatched roofs. I do not think this is the best; we need to improve the situation, and I think this Budget has correctly identified that problem and is taking measures to improve that situation.
Madam Speaker, under that component is also a measure to increase the coverage of the school feeding programme from the 9 per cent; it has to be increased. I want to urge that this is a significant measure, and it would respond to the needs of the people on the ground.
Madam Speaker, various other interventions have been made in the water sector, in the primary health care sector, in the farm access tracks and feeder roads leading to market and producing areas. All these, I think are good initiatives that have been put under the pro-poor budget
expenditures.
Madam Speaker, I would like to conclude by talking about the need for greater citizens' involvement in the implementation of the national Budget. Madam Speaker, I recall, that His Excellency in his State of the Nation Address, said he needed the co-operation of Ghanaians to implement the Budget.
Madam Speaker, economic policies or financial policies and Budget Statements are only an expression of the wishes and desires of the citizenry. Where the citizenry do not understand the Budget, and are not committed to its objectives, the Budget becomes more of a punitive imposition rather than a facilitating tool to manage the economy on behalf of the people.
It is in this regard that I want to re- echo the statement of His Excellency, that Ghanaians should help him to manage the economy. By this there are various areas that Ghanaians can help.
The wind of change on which His Excellency came to power requires that Ghanaians must also change their attitudes; there must be attitudinal change. We must learn to dispose of our garbage appropriately and correctly so as to reduce the cost of District Assemblies in managing garbage.
We need to patronize made-in-Ghana goods so that the foreign exchange that is used for the importation of luxurious items will be reduced. It is when there is attitudinal change by Ghanaians that we can implement the Budget without any large deficits. We can implement the Budget in the interest of development and prosperity of this country.
Madam Speaker, it is in this regard
that I am urging all the information dissemination institutions, the Ministry of information, the National Commission for Civic Education (NCCE), the educa- tional institutions, Assembly members and Parliament, to take this call by His Excellency seriously and pass on the information to all and sundry in Ghana so that our attitudes and lifestyles can be contained within the budgetary estimates.
Madam Speaker, I also wish to say that just as we have international ratings such as Fitch and Standard Poors, we also have international rating for budgets, and presently Ghana is having 49 per cent on the International Partnership Open Budget; Botswana is having about 62 per cent, Uganda is having about 57 per cent and Kenya is having 51 per cent. I think we can do better, and one of the ways we can do better is by having a mid-year review of the performance of the economy and this is largely missing.
Anytime, we have a Budget, we do not have the opportunity during the year to review it, and to learn lessons and take appropriate corrective measures. I want to urge this House to consider this seriously, that we need a complete report from the Ministries, Departments and Agencies (MDAs) and the Executive, all on the performance of the economy which should be brought to the floor of Parliament where the various committees would also participate.
Madam Speaker, with these few comments and observations, I believe that the Budget Statement for 2009 is very realistic and very pragmatic, and I am sure that if it is successfully implemented, it will put us back on the road to recovery and lead us to a better Ghana.
Thank you very much.
Mr. Isaac Osei (NPP -- Subin) 12:45 p.m.
Thank you, Madam Speaker, for giving me this opportunity to contribute to the debate on the premier Budget of the new Administration. But Madam Speaker, permit me to preface my comments with a few remarks on the ideological basis for the Budget.
The Government tells us that this Budget is based on the tenets of social democracy. I believe this is against the liberal democratic philosophies of the New Patriotic Party (NPP) Government. Madam Speaker, however, if you come to the economic policy space you would find that the end result of both set of ideologies in this space, is the welfare of the people.
Whereas liberal democracy emphasizes the position of the individual and his freedom of choices, social democracy uses a form of collectivism to ensure that State power is used for common good.
Madam Speaker, permit me to say that the Budget is merely an instrument for action, it is a tool for the Government to govern. And in my contribution, I want to deal specifically with trade and industry as well as tourism. Clearly, the policy goals, the strategies and the action plans of Government are key to what goes into a Budget. And through our appro-priations and allocation of resources, the Budget may be given life.
We are also aware that governments, and the National Democratic Congress (NDC) Government is no exception, are faced with finite resources. Finite resources call for prioritization. Prioritization talks about choices which will generate the required outcomes that we ourselves have set in the Budget. If we look at page 81 of the Budget Statement, paragraph 351 and Madam Speaker, with your permission, I wish to read, because that is the overriding objective of the Ministry of Trade and Industry:
“Madam Speaker, the Ministry aims at developing a vibrant technology driven, competitive industrial sector that significantly contributes to economic growth and employment creation particularly involving mass mobilization of rural communities and other vulnerable groups including women.”
Madam Speaker, all of us know that the industrial sector in our country is largely urban based. It seems to me, very strangely, that the Ministry of Trade and Industry will partner an urban based industrial sector to mobilize en masse the rural people. I think this is quite strange.
Secondly, there is the talk about technology driven competitive industrial sector. Madam Speaker, I think this is very good. Technology driven implies that we are going to use modern state of the art technology for our industries in order that they can reduce the cost of doing business. I think this is very good and I commend the Government for it. However, since social democratic philosophies talk about employment creation, I cannot see how a technology-driven industrial sector can create employment.
We know in every country which is industrialized or industrializing; there is a definite trade off between labour and new machines or new machinery on new technology. Therefore, the objective of employment creation cannot be achieved through this route. Madam Speaker, permit me also to say that this particular objective is the very antithesis of social democracy.
Madam Speaker, normally in the Budget we have an envelope of resources from the Government of Ghana, from internally-generated funds and also from donors.
In this Budget, the President is telling us that 70 per cent of the resources of this Ministry will come from donors. But Madam Speaker, we have a responsibility to have an assurance as to the certainty of the resources that we are going to use for the Budget. But the Minister in giving the President's Budget on page 10, paragraph 36, I believe, and with your permission, Madam Speaker, I wish to refer to that paragraph -- The Minister is telling us that,
“. . . in addition, expected shortfalls in remittances, a slow down in donor support and private capital inflows as a result of the global recession are all likely to have negative impact on the Ghanaian economy. . .”
How can you, considering that last year only 51.7 per cent of resources were obtained from the donors, and at this time when it has been admitted in this Budget that donor support will not be available, we are now talking about a 70 per cent resource envelope coming out from the donors. I think that this particular area needs to be thought through again.
Madam Speaker, I also want to thank the President for acknowledging the work done by the previous Government and this Budget is replete with examples under the trade and industry section.
Mr. Abdul-Rashid Pelpuo 12:45 p.m.
Madam
Speaker, I am coming under Order 91 (a) to draw attention of my Hon Colleague to an inaccurate statement he just made. He said the Budget itself has acknowledged
that it will not get donor support this year. It is not true. On page 49 of the same Budget, paragraph 198 says:
“Total loans are estimated at GH¢1,029.2 million, equivalent to 4.8 per cent of GDP.”
Madam Speaker, it is to draw the attention of my Hon Colleague that his statement is inaccurate and he should take it aboard.
Mr. Osei 12:45 p.m.
Madam Speaker, I thank
my distinguished Hon Colleague on the other side. However, his intervention has assured me that perhaps not one person needs a set of hearing aids because I never said that there is no donor support. I indeed went further to quote from page 10, paragraph 36 in which the Minister for Finance himself said that there will be a show down in donor support. So my argument was that how can we move from 51.7 per cent and go to 70 per cent at a time when we are expecting reduced donor support. That is all. However, Madam Speaker, with your permission, I will continue.
With respect to developing capacity, I
think this is extremely important and it is important in the light of the multilateral trade negotiations which we have been engaged in since the Uruguay Round of Agreements. We need to develop capacity especially in the area of trade related intellectual property rights; we need to develop capacity, especially in the area of the new agreement with respect to trade in services. These are areas where our country is weak but I see nothing in the Budget to specify the areas where training will be given. I also believe that with respect to trade, there are many items of export interests to our country and indeed to countries such as ours.
And it is important that international co-operation in this area will enable us as a country to cover some of the areas which ordinarily, because of sheer numbers, we do not have people positioned in
Mr. Osei 12:55 p.m.


Geneva to do that kind of work within the framework of the international trade negotiations.

Madam Speaker, there are a number of things in this Budget which I believe may augur well for us if implemented and I believe that the Committee on Trade and Industry and Tourism, as well as the Committee on Government Assurances, should perhaps look more carefully at some of the outcomes which we expect from this Budget.

Number one, there is talk about the publishing of a quarterly trade statistics bullentin and I think we should hold the Government to that.

Secondly, the Government intends to put in place an industrial sector policy which complements the Trade Support Sector Policy (TSSP) which all of us know came out of the Ghana Trade Policy which was put in place by the NPP Government.

Thirdly, this Government is telling us through the Budget, that they will establish sheanut processing facilities in the three northern regions with a capacity of 50, 000 tonnes per annum. This is good and we will hold them to it.

Finally, I would like to say that there is also a promise to provide support for the establishment of an integrated sugar manufacturing plant in Savelugu/Nanton to produce sugar and ethanol. We are looking forward to that day when as a by-product of that facility we can also generate electricity.

But if we want to create a competitive industrial sector as we have said in this Budget, it is necessary, Madam Speaker,

for us to understand that competitiveness is a function of the environment in which businesses operate and the Budget must give us specifically targeted measures which will enable business to reduce the cost of doing business. Yesterday the Hon Joe Ghartey pointed out a few of the areas.

One thing which I would like to emphasise is that in the NPP manifesto, having already reduced company tax from 35 to 25, we made a commitment to decrease it further to 15 per cent. I challenge our Colleagues on the other side to convince Government to further reduce this because this is one way of further reducing the cost of doing business for our own industrial sector.

Madam Speaker, permit me to say that the stability of economic conditions are just as important as political stability. And I would like this Government to move to arrest the fall in the value of the cedi. You will recall that in 2000 the cedi exchanged at 7,200 cedis to the dollar.
Mr. Alfred K. Agbesi 12:55 p.m.
Madam Speaker, I rise on a point of order, Order 91 (a). Madam Speaker, my Colleague is saying that he is challenging us on this side that in their manifesto they promised to reduce by a certain percentage and we should also do same. Madam Speaker, the point is that in their manifesto they promised to do something, the people of this nation realized that their promise is not workable, it is not feasible, it is not maintainable -- [Hear! Hear!]
For that reason they chose our manifesto and voted for it. So he cannot be putting their manifesto on the floor of this House. It is our manifesto which is working. So he should take this on board whilst making his argument.
Mr. Osei 12:55 p.m.
Madam Speaker, with your
permission, I will just treat this with
benign neglect and continue.
Madam Speaker, I was talking about the foreign exchange value of the cedi. ¢7,200 at the beginning of 2001, and then ¢10,500 at the end of 2008. A reduction of 40 per cent. Today we are talking about a 1,400 to the dollar. Within two months the cedi has depreciated by 40 per cent, against 8 years of 40 per cent. That is what we have to compare.
Alhaji A. B. Sorogho 12:55 p.m.
Madam
Speaker, on a point of order. Order 91. Madam Speaker, my Brother at the other side has succeeded in misleading this whole House and I think he must check his figures and correct them.
Madam Speaker, my Brother just said that in 2000, the rate was ¢7,200. [Inter- ruptions.] He said December 2000, that was where he started. Madam Speaker, in January 2001, I was among those who took the Hajj Committee members to Mecca and the rate from the Bank of Ghana was ¢6,800 and not ¢7,200. He must check his records and correct them. He cannot stand here and manufacture figures which are not there.
The second is that he ended up by saying that when we were taking over, it was ¢10,200. Madam Speaker, it is also not true. He should check his records right. It was over ¢12,000 when we were taking over -- [Interruptions] -- And he cannot lie to the whole nation.
Mr. Isaac Osei 12:55 p.m.
Madam Speaker, I
thank the Hon Chairman of the Trade and Industry Committee. We have a situation where it is his word against mine. He talked about Bank of Ghana figures, I am referring to the figures which every Ghanaian goes to -- the areas where we go to, to change our money and these are
the forex bureaux -- [Laughter.] Madam Speaker, permit me to --
Alhaji Sorogho 12:55 p.m.
Madam Speaker, he
has also made --
Madam Speaker 12:55 p.m.
Hon Member, I
do not think you can reply. You have provided him with what you think is the correct figure. So let us leave it on the records otherwise you will be making an argument up and down. So you have corrected it, it is on record and I will ask the Hon Osei to carry on.
Mr. Isaac Osei 12:55 p.m.
Madam Speaker,
rose
Madam Speaker 12:55 p.m.
Hon Member, were
you going to raise another point or it is on the same point you just raised?
Alhaji Sorogho 12:55 p.m.
Rightly so, Madam Speaker. My Hon Brother said I was the Chairman for Trade and Industry. Madam Speaker, we do not have any committee in this House called Trade and Industry. I am the Chairman for the Committee on Trade, Industry and Tourism. [Interruptions.] Madam Speaker, he cannot say Trade and Industry. I am the Chairman and he knows that very well -- [Inter-ruptions] -- He is my Ranking Member. He should not mislead the House -- [Interruptions.]
Madam Speaker 12:55 p.m.
Order! Order!
Mr. Osei 1:05 p.m.
Madam Speaker, whereas
in his previous intervention I believe he
Mr. Osei 1:05 p.m.


was wrong, in this intervention I concede that he is right. Because he is right, I will continue and talk about tourism. Madam Speaker, this is a very important sector of the economy, perhaps the fourth largest contributor to our economy. As I indicated, the Budget has ten paragraphs on the 2008 performance and only five paragraphs on the outlook which also clearly shows the sort of commitment that the present Government is paying to that sector.

Madam Speaker, GH¢3.8 million, a

paltry GH¢3.8 million was allocated and this is evidence of what Government plans for the sector. It is sad, but somewhat true, that the Ferdinand Ayim Paragliding event, which has excited the imagination of Ghanaians and enlivened the Kwahu Scarp, they did not make the list of major events planned for 2009. And the Budget lists the major events.

Finally, Madam Speaker, I sometimes

worry about our persistent lack of attention to detail which we may, on the face of it appear to be encouraging. For example, when Dr. Kwabena Duffuor appeared before this august House, the letter which sent him here indicated that he was going to be the Minister for Finance. And I did raise on the floor of this House as to what we were going to do with the Economic Planning portfolio and it was supported by the Hon Minority Leader.

Today, the Budget is laid before this House and it says “Minister for Finance and Economic Planning”. I would like us to pay attention to detail.

Madam Speaker, you will recall also

that Shirley became Hanny Sherry, Rojo is now “Robert Joseph”, Official Report of 28th January, 2009 columns 181 183.
Mr. Agbesi 1:05 p.m.
Madam Speaker, I am
rising on a point of order and to say that we have before us the Budget Statement. Now, my Hon Colleague is going into an area which is not before us. Indeed, what he is doing is irrelevant, it is not necessary, he is misleading this House and must be called to order.
Madam Speaker, he is moving to areas which are not relevant at all, because there is no Hanny Sherry in this Budget; we are not talking about that matter. If he had the occasion to appear before or he is a member of the Appointments Committee, that is the knowledge he has gained from there. That issue is not here and he should speak to the point and as far as possible he should make relevant points for us to --
Madam Speaker, I thank you very much.
Mr. Isaac Osei 1:05 p.m.
Madam Speaker, I thank the Hon Member for Ashaiman. The fact of the matter is that this report was brought to this House and Dr. Duffuor's nomination was discussed in this House. What I am talking about is that if we make mistakes with small things in the management of the economy, then we have a problem in this country. That is what I am saying that all of us together, have a binding responsibility to ensure that we pay attention to detail.
Madam Speaker, on that note, I wish to
thank you for giving me this opportunity to say a few words on this Budget.
Mr. Abdul-Rashid Pelpuo (NDC - Wa Central) 1:05 p.m.
Madam Speaker, I rise to contribute to the motion to approve the Budget Statement that was presented to this House as the Financial Policy of the Government of Ghana for the year ending 31st December, 2009.
Madam Speaker, I am supporting the motion on several grounds but the most critical and important ground for which I support the motion is the fact that it is presented to represent our total vision for this country; a vision that is representing the social democratic principle of the NDC Administration and which is human centered and which is pro-poor and which eventually is going to set a certain standard for this country for us to move forward in the right direction. It is therefore, founded on social equity and on a sound economic principle.
Madam Speaker, we agree that this Budget Statement is proposing a growth rate of 5.9 per cent that has been criticized by some of my Hon Friends opposite here. It is not out of nothing that this proposal is made. It is because we have inherited an economic system beclouded by a more challenging international economic order. And besides that, we all know about the situation in which we all find ourselves. We are inheriting a debt which ratio to the Gross Domestic Product (GDP) is 14.9 per cent.
rose
Mr. Pelpuo 1:05 p.m.
Madam Speaker, sorry we are inheriting an economy that has left a deficit of 14.9 per cent to the GDP and Madam Speaker, that is a challenge enough for us to agree -- [Interruption.]
Dr. A.A. Osei 1:05 p.m.
Madam Speaker, I need to be guided -- [Interruptions.] Order 92 (b) -- He has just made two statements. First, he said, the debt GDP is 14.9 per
cent and then he went further and said the deficit GDP is 14.9 per cent. Could he tell this House which ratio he is talking about? The two are not the same.
Mr. Pelpuo 1:15 p.m.
Madam Speaker, I talked about debt but I actually meant “deficit” so I went back and indicated the deficit. I am saying that because of the huge deficit that we have inherited, it is not possible for anybody to overlook these two important things: One being the present economic circumstances we find ourselves in, and two, the difficulty everybody faces in the global economy.
In the present circumstance, any responsible Finance Minister will take into account these very, very important indicators and do an economy that would be modest enough to say that we would grow at the end of the year by 5.9 per cent which, indeed, is very realistic and very commendable; and I want to commend the Hon Minister for his foresight and for his commitment to that.
Madam Speaker, I appreciate very
much the fact that we are presenting a certain vision and the vision, with your permission, if I may quote from page 39 under the macro-economic framework.
Madam Speaker, the vision is 1:15 p.m.
“to adopt carefully designed policies and programmes that would stimulate and develop the immense talents and resourcefulness of Ghanaians and make them the main drivers and beneficiaries of the national development agenda with special emphasis on the rural and urban poor.”
That is what we expect of this Government and that is the heart of the principles we are espousing.

It is important for us to understand that we can no longer at all times from now on, begin to do policies without particularly focusing the policy on a certain vision. We are the bearers of this vision and we want to support this financial policy and I will call on my Hon Colleagues in Parliament to come forth and equally support the policy statement by the Hon Finance Minister.

Madam Speaker, it is important to also

note how we want to achieve that. First of all, we are talking about implementing policies and programmes that will ensure that eventually we develop a framework that will prop up enterprises in this country, that will ensure that enterprise is founded on technology and science and that will ensure that enterprises are more productive than we meet them in this country.

Beyond that, is the fact that we want to ensure that there is a good partnership between Government and business. This is very, very important. For a very long time, what we do in this country is to prop up businesses that are not Ghanaian, give them jobs that are so big that if they were Ghanaian companies we would not be crying for external investment.

This one that we want to project will ensure there is a good partnership between businesses, business and Government and that partnership will ensure that we have domestic enterprises rising up in this country and taking the challenge of ensuring that we have a developed economy in this country. But greatest of them is the fact that we want to modernise agriculture.

Agriculture, we all know, is the backbone of this country. If you do not have a strong agricultural base, it is difficult for you to achieve any significant

economic development in this country because the bulk of our population is in that sector. So the proposal by the Budget to modernise this sector of the economy is so crucial that we cannot, but all of us come out to support the Budget Statement and to ensure that we carry it out to its logical conclusion.

Madam Speaker, it is important also to note that in carrying out our ideas and vision and ensuring that we are making the Ghanaian the centre of the Budget and the centre of our development, we have tried very hard to focus policy, to make policy respond to some needs of this country, especially to make policy respond to the challenge of poverty which we have been struggling hard to fight in this country.

Indeed, the idea is to reduce it, but the bigger idea is to eliminate it and I think that, first of all, we need to commend the Government for the Savannah Accelerated Development Authority the Government would set up to challenge the poverty in the North and other areas that are also challenged by poverty.

Madam Speaker, it is also important that we look at the decision made which is also manifested in this Budget to ensure that water and sanitation become a cornerstone in fighting diseases and ensuring that people live worthy lives. I want to also say that the Hon Member for Wenchi who indicated that the 5 per cent withdrawal is a minus, it is a disadvantage, I challenge him to say that it is not the case.

The 5 per cent deduction for commu- nity water and sanitation project is to ensure that community people are not bogged down by paying 5 per cent which normally they fail to do before they can get a borehole. Nobody pays an advance amount of money before water is provided in the big cities. We only pay for water to be extended to us but they pay for even the water to be installed in the community

before they go in to pay for the water they collect.

So after viewing all this, it is important to look at it very closely and this Budget is proposing that that 5 per cent which was not even part of the payment for the total payment of the water source should be withdrawn; and I think it is logical and it is acceptable and we want to stand by it and we would want to thank the Government and encourage them to even do more in this regard.

Madam Speaker, sanitation issues are also taken care of and I think also that it is important for us to prop up the sanitation companies in the country. We already have one, Zoomlion, which is already taking the lead and I remember an Hon Member here, an Hon Member from this side of the House tried to politicise the idea that Zoomlion came because of their good policies. I think that Zoomlion came because of an enterprising young man who wanted to show a difference.

So we want to encourage more and more of such people who would come onto the scene and support and ensure that this country is clean of filth, we do not have places like Odaw river which is smelly and very dirty, we do not have our lagoons being the source of dumping of human waste, et cetera.

Madam Speaker, this is a Budget that is going to have a closer look at all these and ensure that we step up our sanitation so that we can have a clean country and make it more competitive as we change the last gear to get into the middle income status in the year 2015 when we will still be in power.

Madam Speaker, I also believe that one of the things that the Budget has proposed which is also commendable is the fact that
Dr. A. A. Osei 1:15 p.m.
On a point of order. Madam Speaker, unless I am hearing something very different. My Hon Colleague has mentioned some huhudious year which is not known to his manifesto. He said, and with your permission, I beg to quote:
“to be a middle income economy by 2015.”
Madam Speaker, with your permission, let me quote from their manifesto 1:15 p.m.
“It is the objective of the next NDC Government to lead Ghana into the status of a middle income economy that registers in the livelihood and income of ordinary people by the year 2020.”
Madam Speaker, i t is the NPP Government which is aiming for the middle income status by 2015, so unless he has come to the NPP which we do not know about, we are not willing to accept him.
Mr. Pelpuo 1:25 p.m.
Madam Speaker, I simply propose, not from the Budget, not from our vision that by 2015, with the speed we are moving -- [Interruptions] and with the promises we are putting on the ground, we would get there.
So it is important for us also to understand that when we talk about middle income status, it is not just a point you get up to, there are several notches before -- We have a lower middle income and a higher middle income. I hope that by 2015, we would get to the lower middle. [Interruptions.] By 2020, we would be at the upper middle. Madam Speaker, I am saying that -- [Interruption.]
Madam Speaker 1:25 p.m.
He is clarifying that; that is his view.
Dr. A.A. Osei 1:25 p.m.
But he has even misled the House; talking about “with the speed they are going”. Madam Speaker, if this year's Gross Domestic Product (GDP) is 6.2 and your speed is 5.9, Madam Speaker, 6.2, as far as my little knowledge is concerned, is higher than 5.9, so how can you talk about speed? Regressions, then you say “with the speed we are going”.
Madam Speaker, I do not know if this reverse speed is the new way of moving forward. [Laughter] Because the Head of State clearly is in charge of this manifesto. H.E. Professor J. E. A. Mills and his vision is to get there in 2020. You represent him and you come to this House to object or intend to object to what your Head of State -- [Interruptions.] I just want to seek clarification. Is he challenging the Head of State?
This Budget is read on the authority of His Excellency J.E. A. Mills, so on what authority are you challenging him? [Interruptions.] Madam Speaker, I am really confused. An Hon Member of the National Democratic Congress (NDC) Government, his Minister for Finance presents it on the authority of His Excellency, J. E. A. Mills and he comes here and says I am afraid that it should be 2015.
He is grossly misleading this House because we are debating this Budget. As a Minister of State-designate whose nomination is about to come to this House Madam Speaker, I think he should withdraw.
Madam Speaker 1:25 p.m.
I will rule now, I
Mr. Pelpuo 1:25 p.m.
Madam Speaker, I am surprised the Hon Member is belabouring to say something that does not exist at all. I am not contradicting what our policy is, it is still there, it is documented, we all approved it. I am projecting a view and I am saying that I even expect that with the policy we have put in place, with the speed we are ready to move, we will even get there before the time.
Madam Speaker, besides that, he is talking about the fact that we are saying that we would grow at 5.9 per cent and that it is not speed enough. It is speed enough if he understands the present circumstances the world faces. If he understands the projections by the World Bank, that the growth rate in Africa is going to be less than 3.5 per cent and Ghana has decided to fix at 5.9 far beyond the 3.5 average proposed for Africa.
Yesterday Madam Speaker, on BBC the World Bank is saying that that 3.5 per cent, the possibility is that Africa is going to grow lower than that. So if Ghana is placing its growth at 5.9 per cent, it is good enough Madam Speaker and I think that it is speed enough, and I believe that we are going to get there.
Madam Speaker, I am saying that the greatest thing that we want to do for this country is to provide a kind of economic management which has not been known for several years. The management of this economy is in safe hands and we are streamlining all expenditure, we are cutting away all wastes, we are cutting away ostentation, we are cutting away expenditure, and we are ensuring that the money we earn will be used for the purpose of development and to ensure that Ghana is better off, and that is what
the Budget is all about.
Madam Speaker, one may even ask the question, how are we going to do it? If you look at the projections in domestic revenue mobilization, our total revenue mobilization this year is going to be higher than 2008 by 2.7 per cent. It could have been higher if you were not to take into consideration the fact that in last year's Budget they benefited from a lot of divestiture receipts and other inflows. This year, with all that, we are moving total revenue collection to 2.7 per cent. That is not even as much as when we come to the domestic revenue collection.
Madam Speaker, that one is going to be 23.6 per cent of the year's revenue. This is what we are looking for and that is what we are looking for in ensuring that Ghana would want to move. We should move towards the direction where we would generate more of the income we use in developing the country from within the country not dependent on loans.
That is why the statement made by the Hon Minister for Finance about slow inflows is not a disturbing phenomenon. In fact, it is telling us that one day, we would even wean ourselves away from begging for money and looking for money to develop this country.
Madam Speaker, the last thing I would like to say is about inflation. We are bogged down by inflation; the economy is often retrogressing because of poor management of inflation in this country. This year the Budget is proposing that by the end of the year we would have an inflation rate of 12.5 per cent and by the end of 2010 it would go down to 10 per cent and by the end of 2011 inflation rate will be a single digit figure.
A single digit figure inflation is what we are heading for, and we are proposing by this Budget that subsequent to the inflation rate by the end of this year which will be 12.5per cent we are going to hit 8 per cent inflation.
This is the reason why we are calling on everybody to put hands on deck to ensure that this Budget is not just a National Democratic Congress (NDC) policy statement but it is a national policy statement. We are moving towards a situation when the Budget cannot be differentiated because of party colours and it is a plus and not a minus.
I have heard several Hon Members on the other side of the House who jeer at us and say,
“It is the same thing we did the last time, you are doing the same thing.”
Madam Speaker, that tells you that it is the difference we are making in this country. The past Administrations that would abandon projects or would abandon good policies by other Administrations and then go and pick on new ones and eventually fall by the way side is not what we want to see happen here.
Madam Speaker, we want to see a situation where all policies that are projected by this Government will be seen as policies that would be supported by a future Government and that is how we see national unity and that is how we want to move this nation forward.
Therefore, we believe that at the end of this Budget year, we would have set a standard that nobody can challenge. The standard would be so admirable that we would continue it year after year to infinitum.
Thank you Madam Speaker for the opportunity.
Mr. Pelpuo 1:45 p.m.


Prof. Christopher Ameyaw-Akumfi

(NPP -- Techiman North): Thank you, Madam Speaker, for this unique oppor- tunity to have a scientist contribute to the debate on the Budget presented on behalf of His Excellency. Madam Speaker, Jesus Christ once said he was going to demolish a system and in three days get it back. I am talking about structures and therefore bringing back the Ministry of Environment, Science and Technology is reconstructing those which were demolished, and in thermodynamics terms we are balancing the equation and so nothing is new.

Madam Speaker, noting that the Minister for Finance was reading a Budget on behalf of His Excellency and recalling that His Excellency gave us his vision based on the NDC manifesto, I would beg to make references to the manifesto, to His Excellency's Address and the Budget Statement. References to the Budget would be from page 137 and this is on the Ministry of Environment, Science and Technology.

Madam Speaker, the NDC manifesto

noted that the use of science and technology, I beg to quote:

“is central to progress in all fields of national endeavour”.

And I believe based on this, we have noted in the Budget Statement, some references made to what we are going to do in the area of science and technology as well as the environment.

But Madam Speaker, let me quickly note two points of some concern; the first was complete absence of any mention of science and technology, except for the training phase in His Excellency's Address. He did say that everything was going to be done to improve on

the teaching and learning of science in schools, to the extent where some of the science resource centres were going to be revamped.

I am saying, there is some disappoint- ment because I was expecting some direction from his vision on what it is that science and technology are going to do to the development of this country.

Indeed, if you take the highlights of

the Budget Statement, again, let us always recognise that whilst the bigger version is not so accessible, the highlights which are in a pamphlet form are normally accessible and these are the copies which are often looked at. And again in the highlights, very little indication is given as to precisely how science and technology are going to be handled. But my emphasis is going to be on the Budget Statement. And in this, for the first paragraph of page 137, we have the mission statement of the Ministry of Environment, Science and Technology and Madam Speaker, I beg to quote:

“The Ministry of Environment, Science and Technology (MEST) exists to establish a strong and vibrant scientific and technological base for accelerated and sustainable development, to enhance the quality of life for all through the development and promotion of appropriate technologies, safe and sound environmental practices and regulated human settlements.”

Madam Speaker, I believe we are talking about the Ministry that did exist and if you look at the output or the performance in 2008, when we did not even have a whole Ministry, a number of activities were engaged in by the various agencies, and you begin to wonder, Madam Speaker, whether we are not reading a list that did exist about three

years ago and whether this is a list that is as current as the Budget Statement that we have.

I believe that the intention here is to possibly draw our attention to the number of things that are being done in the area of science and technology and assure us that there is going to be a follow-up. Indeed, when you look at the manifesto of the NDC in the area of science, they hope to use science and technology like what all of us do, to resuscitate the rice industry, to triple the production of roots and tubers, to double the output of cocoa, reduce post- harvest losses from 25 per cent to 10 per cent and so on.

Madam Speaker, the burden of this is that, these are activities that have been engaged in by the various agencies in the Ministry of Science and Technology. If you take the Centre for Scientific and Industrial Research (CSIR), as many as twenty new crops were developed; these include rice, sorghum, cocoyam, plantain and so on.

The Food Research Institute (FRI) is one of the few institutes in this area of the world where there has been an international accreditation, they are International Standards Organization (ISO) qualified, which means that their standards are recognised the world over. Industrial research has developed activated charcoal which would help us stay away from pollution of beverages and food.

Madam Speaker, the point I am making is that these institutions have succeeded in doing a number of things that we propose to do right now and at the end of the presentation, the burden would be, what do we do to take it forward? I suppose that should be what we should be aiming at and not come up with what appears to

be new ideas which are indeed old ideas.

Madam Speaker, if you go to the Ghana Atomic Energy Commission, you will again realise some radiation researches that have been conducted, aimed at helping us reduce post-harvest losses. And then we have Environmental Protection Agency (EPA) which is trying to reduce noise level and His Excellency refers to an 8 per cent increase in vehicular volumes, which clearly would pose problems if emissions are not checked, and EPA is already doing that.

Then in looking at the outlook for 2009, and this is where my worry is, if you have these institutions that are engaged in all these activities earnestly doing their job, I think what we have to do is to give them maximum support. There are certain areas which were highlighted by the manifesto and again which have been highlighted in the outlook for 2009.

This will include an organisation of

annual science congress; agencies in other Ministries are to collaborate with the scientific world to bring about more rapid development; they have to be supported to engage themselves in international meetings where they share ideas. This I know is going to be opposed vehemently by the Castle that intends to cut down on workshops and so on, but for the scientist, this is very, very essential.

When we talk of the environment, Madam Speaker, a lot is being done and our support here will also be required. There are laws which ought to be passed, there are policies, programmes which ought to be supported from the centre all the way to our districts and municipalities. Collaborative work is always important, working with other Ministries, I see a list of Ministries here -- but if you go to page 142 -- I would suggest that we
Mr. David Assumeng 1:45 p.m.
Madam Speaker, Order 93 (2). Madam Speaker, the Hon Member just said that the Budget is paying a lip-service to science and technology. I want to inform the Hon Member that during the time of the New Patriotic Party (NPP), the Ministry of Science and Environment was scrapped and the hardworking Minister at that time was sacked. And so by reintroducing that Ministry now shows the commitment of the National Democratic Congress (NDC). So please, to say that it is a lip-service is totally misleading and he should withdraw and apologise to us.
Mr. Joe Ghartey 1:45 p.m.
Madam Speaker, we
keep on coming back to this point. The Hon Member said he was coming under
Order 93 (2) which says and with your permission I quote:
“It shall be out of order to use offensive, abusive, insulting, blasphemous or unbecoming words or to impute improper motives to any other Member or to make personal allusions.”
Madam Speaker, with the greatest respect to the Hon Member, we have said it time and time again that one does not object for the sake of objecting and there is no relevance to what he said to Order 93 (2). And so it is totally improper. I am at a loss because if it is said for the purpose of objecting, the Hon Member has just been objecting the whole day; everybody can behave the same way and no business would go on in this House.
Madam Speaker 1:45 p.m.
Hon Member, you came under Order 92?
Mr. Assumeng 1:45 p.m.
Order 93(2) and the paragraph that says that to use words or to impute improper motive to any other Member is where I am coming from -- [Interruptions.] In any case, Madam Speaker, I think I made a point and it lies on you to rule on me. I do not think that the former Attorney-General still thinks that he is still in that capacity and can interpret the Standing Orders.
It does not lie in his hands to interpret. If anything, I think it is Madam Speaker, who is to rule me out of order or on order. For him, a former Attorney-General, to think that he is still in that position to rule on the Standing Orders is misleading.
Madam Speaker 1:45 p.m.
I will rule, Hon Member; that is all right. What is the offensive, abusive, insulting, blas- phemous, unbecoming words, or to impute improper motive that was used? Then I
will rule on it, because I do not see any of these -- [Hear! Hear!] Shall we move on? There is nothing wrong with raising a point of order which turns out not to be correct. That is why we are here.
Prof. Ameyaw-Akumfi 1:45 p.m.
Madam Speaker, I think sometimes the intention is to intimidate some of us first-years, but I will not be intimidated. I would seek to prove my point and I am going to do so coming from the brotherhood of scientists and just make a passionate appeal through the House that we need to get some more support for the community; that is the point I am going to make.
Madam Speaker, I was on Town and Country Planning Department. Some- times I wonder whether it is lack of real support for the department or some deliberate attempt to overlook good planning. I think this is an area which may not require a lot of budgetary support since these are services that are going to be provided. The services should be able to provide some support for the work that is being done. So it is an area which I believe that Parliament ought to look at very carefully to find out precisely why planning has completely broken down.
Madam Speaker, I would just wish to go into my conclusions and the major one is the way that we are handling the whole area of science and technology, the environment included. If you take a look at the budgetary allocation, you have a total of over GH¢113 million. Out of this, GH¢68.7 million is coming from our development partners. That constitutes 60.8 per cent --
Madam Speaker 1:45 p.m.
Hon Member, I will probably halt you at this stage and say that having regard to the Business of the House, I direct that Sitting be held outside the prescribed period.
Prof. Ameyaw-Akumfi 1:45 p.m.
Madam Speaker, I am concluding. Personal Emoluments (PE) is 30+ per cent. If you look at the Government of Ghana (GoG) contribution, 75 per cent of that goes into PE. Indeed, that leaves very little for Services and Investment and indeed without support from our development partners, the entire organization is going to grind to a halt.
This is where I am making a passionate appeal, that if we all believe that the basis for rational development is science and technology then this House should make a special appeal to His Excellency through the Ministry of Finance to give maximum support for our scientists and tech-nologists.
With this I thank you, Madam Speaker, for allowing me to contribute.
Madam Speaker 1:45 p.m.
Hon Members, now we will move to item No. 19 on the Order Paper and call upon the Chairman of the Committee to move his motion.
Mr. E. K. D. Adjaho 1:55 p.m.
Madam Speaker, before we move to item 19, I move the procedural motion on item 18.
Suspension of Standing Order 80 (1)
Chairman of the Committee (Mr. E. K. D. Adjaho) 1:55 p.m.
Madam Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80 (1) which require that no motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the motion is given and the date on which the motion is moved, the motion for the adoption of the eighth Report of the Appointments Committee on the President's nominations for Ministerial and Deputy Ministerial appointments may be moved today.

I beg to move.
Mr. Kyei-Mensah-Bonsu 1:55 p.m.
Madam Speaker, I rise to second the motion.
Madam Speaker 1:55 p.m.
Hon Members, the motion has been moved and seconded --
Mr. A. R. Adiyia 1:55 p.m.
Madam Speaker,
some of us do not have the Report so it is going to be impossible for us to look at the Report. [Interruption.] I was not late.
Madam Speaker 1:55 p.m.
Where are the Reports for Hon Members?
Mr. John T. Akologu 1:55 p.m.
Madam Speaker, the Hon Member has a point but the practice has been -- and because of the time that we have - They are distributing them so he will soon get his copy. By the time the first person would have finished contributing, he would have had his copy. At least, the Hon Member should bear with the House. He would get his copy very soon.
Madam Speaker 1:55 p.m.
Some Hon Members do not have the Report. What do you say to that; can we move on despite that?
Mr. Kyei-Mensah-Bonsu 1:55 p.m.
Madam Speaker, if Hon Members do not have, then maybe. If we were only going to suspend the debate on the Budget I believe we could go on for some short while and allow those of them who are complaining that they have not seen the Report to be served and then we go on thereafter.
Mr. Adjaho 1:55 p.m.
Madam Speaker, I want to plead that we start. My information was that they have distributed it, that is why I came to move it. So I want to suggest that we move the motion and then the Reports would be made available.
Mr. Kyei-Mensah-Bonsu 1:55 p.m.
Madam
Speaker, I ordinarily would not have had much against what my Hon Colleague has said, except when I turned and looked back I saw that there are many of them including my own Chief Whip who is complaining that he does not have a copy of the Report. So since we are only suspending the debate on the motion to approve of the financial policy, I would plead that we re-enter that arena and allow the debate to continue with one or two more contributions and then the others would be served accordingly.
They will have time to read, then we come back to it. But certainly, we must strive to do it before we rise today. I know it is 2 o'clock but the Speaker has sounded us that she is indulging us to have an extended Sitting so we will do that. I will plead with my Hon Colleagues that we re-enter the arena to continue the debate on the financial policy.
Madam Speaker 1:55 p.m.
Hon Members, the Leaders and the Chairman of the Committee have asked that we continue and that you are being served. I have my Report, I think some of them have their Reports and this is approval by consensus. That is not to say that you are not entitled to debate it or to make contributions. But since it is a consensus one, if we can start it. I do not want to put a Question which will be answered in the negative. So if we agree - [Inter-ruption.]
Mr. Akologu 1:55 p.m.
Madam Speaker, I indicated that every Hon Member will be given a copy of the Report but the process is a bit slow. Now, as I speak, there are enough copies to go round all the Hon Members. So I think that we can proceed on this motion. There are enough copies.
Mrs. Gifty E. Kusi 1:55 p.m.
Madam Speaker, we are prepared to listen to our Leaders but more often than not when there is an extended Sitting it goes with certain issues but it is becoming too much, extended
Dr. Osei 1:55 p.m.
Madam Speaker, just a point of information. Madam Speaker, during part of the debate, the Deputy Majority Leader informed me, and I think it is a mistake that I did not inform my Leadership, that appropriate arrange- ments have been made today to ensure that Hon Members are provided the right incentives to provide them energy to be able to continue the debate. So we have been assured by the Deputy Majority Leader. I suggest that on that assurance we -- [Interruption.]
Madam Speaker 1:55 p.m.
Hon Akologu, can we hear it from your own mouth.
Mr. Akologu 1:55 p.m.
Madam Speaker, I wish
to confirm what my Hon Colleague, Dr. Osei has just stated. Indeed, these are issues that are not normally or usually just thrown out on the floor like this, so I called him aside and told him to inform his Hon Colleagues on the other side. But if due to one or two problems he could not do it, we are sorry for that. But everything is in place to take care of us.
Madam Speaker 1:55 p.m.
In view of this, Hon Members, I think we can carry on and your Reports would be served to you as we sit here. Is that in order? Hon Minority Leader, my ruling is that we carry on. The Reports are being distributed and that their concerns would be taken care of.
Mr. Kyei-Mensah-Bonsu 2:05 p.m.
Madam Speaker, since you have quoted the language of ruling and even if I do not
agree I cannot challenge you and so I would, as a mortal, want to live with your ruling for now.
Madam Speaker 2:05 p.m.
I thank you, Honourable; so you have moved the motion and it has been seconded.
Mr. Adjaho 2:05 p.m.
Madam Speaker, I have moved the motion -- Item 18, page 4 on the Order Paper and it has been seconded by the Hon Minority Leader.
Question put and motion agreed to.
Resolved accordingly.
MOTIONS -- 2:05 p.m.
Chairman of the Committee (Mr. E. K. D. Adjaho) 2:05 p.m.
Mr. Speaker, I beg to move, that this Honourable House adopts the Eighth Report of the Appointments Committee on the President's nomina-tions for Ministerial and Deputy Ministerial appointments.
1.0 Introduction
His Excellency President J. E. A. Mills communicated to Parliament for prior approval of the nomination of the following persons for appointment as Ministers of State and Deputy Ministers pursuant to articles 78 (1) and 79 (1) of the 1992 Constitution of the Republic of Ghana:
1. Hon Abdul-Rashid Pelpuo -- Minister of State-designate
2. Hon Amadu Seidu (Alhaji) --
Minister of State-designate
3. Hon Likpalimor, Kwajo Tawiah -- Minister of State-designate
4. Mr. Seth Tekper --
Chairman of the Committee (Mr. E. K. D. Adjaho) 2:05 p.m.


Deputy Minister-designate for Finance.

In accordance with Order 172 (2) of the Standing Orders of the House, Madam Speaker, on Tuesday, 24th February, 2009 referred the nominations to the Appointments Committee for con- sideration and report.

The Committee subsequently met to determine modalities for the vetting of the nominees. The names of the nominees were published in the media in accordance with Order 172 (3) and memoranda were invited from the public on the suitability, conduct, experience and capability of the nominees.

Background checks were carried out on the nominees to ensure that they satisfy, among others, the requirements of article 94 of the Constitution.

2.0 Reference Documents

The following documents served as reference documents to the Committee during deliberations and vetting of the nominees:

1. The 1992 Constitution of the Republic of Ghana

2. Standing Orders of the Parliament of Ghana

3. Curricula Vitae of nominees

4. Reports from security agencies

5. Evidence from Internal Revenue Service (IRS).

3.0 Procedure

On appearing before the Committee, nominees took the oath of a witness and answered questions on issues relating to their records of office, the positions to which they have been nominated and

issues of general national concern.

4.0 Observations and Recommendations

4.1 Hon Abdul-Rashid Pelpuo -- Minister of State-designate

Background

Hon Abdul-Rashid Pelpuo was born on 5th May, 1964. He obtained his Diploma in Economics from University of Cape Coast in 1994 and went on to obtain a Bachelor's Degree in Education (Psychology). He further holds a Master of Arts degree in International Affairs. He is a Member of Parliament for Wa Central Constituency and served as a Deputy Ranking Member for the Select Committee on Youth, Sports and Culture.

From 1994 to 1999, he was a Director at the Youth Leadership Training Institute, Upper West Region and the Director of Administration and Finance at the National Youth Council, Accra from 1999 to 2002.

Definition/Measurement of Poverty in the Country

Hon Pelpuo informed the Committee that there is no one way of measuring poverty and that in an exercise conducted on poverty in some communities, poverty levels were determined by the perception of the communities in question. He indicated that there are World Bank and UNDP definitions of poverty.

He acknowledged that certain in- dicators used in measuring poverty are not exhaustive as some poor areas could be wrongly graded.

Poverty in Ghana

On the poverty situation in Ghana, the

nominee indicated that poverty situation in the country has declined as currently the level is about 28 per cent compared with 48 per cent a decade ago. To him, this is a significant achievement in relation to the Millennium Development Goal (MDG) target as far as poverty reduction is concerned.

He, however, stated that the country's poverty reduction achievements cannot be said of the Upper West Region as the level of poverty in that region has increased from 8.0 to 8.7 per 10 people (the highest in the country).

Youth Policy and Empowerment

On the issue of the youth, the nominee stated that it is important to fashion out a youth policy that would address their specific needs.

He was of the view that laudable policies targeting the youth and the vulnerable such as school dropouts should be revived and improved upon. Furthermore, the youth should be equipped and resourced in the areas of education and skill training in order to empower them. He further advised the youth to engage in useful activities, adding that the devil finds work for idle hands.

Budget and Poverty

The nominee stated that in his view, this year's Budget is a pro-poor budget as it seeks to address the issues of poverty in the country. He said the Budget has made provision to address the poverty levels in the three northern regions, Central Region and some parts of Volta Region.

He was of the hope that if this initiative is properly implemented, the total national average level of poverty will reduce drastically in the next four years.

Recommendation

The Committee, by a unanimous decision, recommends that the House approves of Hon Abdul-Rashid Pelpuo as a Minister of State.

4 .2 Hon Seidu Amadu (Alhaji) - Minister of State-designate

Background

Hon Seidu Amadu was born on 9th March, 1954 at Damango. He had his primary education in Mpaha and Kpembe L/C Primary Schools. He further proceeded to Business Secondary School, Tamale and Sunyani Secondary School for his GCE ‘O' and ‘A' Levels respectively. In 1982 he graduated with a Bachelor of Arts (Hons.) degree in Sociology from the University of Ghana.

Hon Seidu Amadu was once a District Co-ordinator of the Akuafo Cheque Monitoring Unit of the Ghana Cocoa Board and an Assistant Economic Planning Officer of the Kassena/Nankani District Assembly. He was a member of the Consultative Assembly and is a five- time Member of Parliament representing the Yapei-Kusawgu Constituency.

Hon Seidu Amadu was a Deputy Minister for Roads and Highways and Works and Housing, consecutively between 1993 and 2001.

Disagreement with President's Position

Hon Seidu Amadu informed the Committee that as a Minister of State at the Presidency, his schedule of duties would be defined by the President and he would act within this responsibility. He stated that his duty is to complement the work of the President and therefore does not foresee any situation of disagreement. He however, indicated that where he feels strongly about an issue, he would convey his views to the President in a memo but

the ultimate decision would depend on the President. He stated that he would not work to undermine His Excellency the President, or perform functions outside his mandate.

Award of Contracts to Local Contractors

The nominee informed the Committee that the award of road contracts is in two forms. The local competitive bidding opened to the local contractors and the international competitive bidding which usually include member countries of the World Bank.

He explained that to qualify as an international contractor, one has to attain a category “A” licence or licence ‘B'. In the case of category ‘A' licence, one has the necessary resources including the equipment and competent personnel to construct structures up to that of an airport and very few Ghanaians have this capacity.

Affordable Housing

The nominee informed the Committee that if the country wants to help the tenants in this country, then it is important that government gets involved in the provision of housing. The private sector such as the Ghana Real Estates Developers Association (GREDA) is mainly in the business of housing for profit. It would therefore be difficult for the country to achieve the objective of providing affordable rental units to the citizens/ residents if the country is to rely solely on private initiatives. He would therefore advise government to directly invest in the provision of affordable housing units for the people.

Sea Erosion

The nominee indicated that sea erosion is a major challenge facing this country.

He stated that most of the resources used to fight this problem, apart from the Keta Sea Defence project, are mainly from local sources and this is not enough. The damage to the country's coastline is very extensive as it stretches the entire length of the country's coast.

He suggested that funding be sought from other sources to help fight the menace of the sea to save the country's coastline and its inhabitants. Works Department of MMDAs Sand Public Works Department (PWD)

Hon Seidu Amadu informed the Committee that the Public Works Department (PWD) is a department that is entrusted with maintaining State property, especially government bungalows since colonial days. He said that over the years, PWD has gained a lot of experience and capacity. Unfortunately, government support has not been sufficient for them.

Hon Seidu Amadu agreed to the suggestion that the works department of Metropolitan, Municipal and District Assemblies (MMDAs) should be strengthened and PWD be made its driving force. This he believed would help address the problem of maintenance, planning, infrastructure development, among others.

Recommendation

The Committee, by a unanimous decision, recommends that the House approves of Hon Alhaji Seidu Amadu as a Minister of State.

4.3 Hon Likpalimor Kwajo Tawiah -- Minister of State-designate

Background

Born on 9th September, 1960, Hon Likpalimor Kwajo Tawiah holds an Executive Masters in Governance and Leadership from the Ghana Institute of

Management and Public Administration (GIMPA) and a Bachelor of Education in English from University of Education, Winneba.

Hon Likpalimor has been the Member of Parliament for Kpandai Constituency since 1993. He was a Member of the ECOWAS Parliament between 2001 and

2005.

First Language of Instruction of the Child

The nominee indicated that the child should first be taught in his/her mother tongue before a second language is introduced to him/her later in school.

Advocate for Teachers

Hon Likpalimor stated that if given the chance, he would advocate for better conditions of service for teachers and also encourage the youth to get professional teacher training rather than going into “pupil teacher” jobs.

Professional Practice Aside Parliament

The nominee informed the Committee that he does not practise any other profession in addition to his Parliamentary work except that he is into yam cultivation (farming).

Development of Parliament

The nominee opined that Parliament has come a long way since its inception in 1993. He however called for expansion in facilities and provision of office accommodat ion for Members of Parliament in order to enhance the work of the Legislature. Recommendation

The Committee, by a unanimous decision, recommends that the House approves of the nomination of Hon Likpalimor Kwajo Tawiah as a Minister of State.

4.4 Mr. Seth Emmanuel Tekper -- Deputy Minister-designate for Finance

Background

Mr. Seth Emmanuel Tekper was born on 5th July, 1957 at Somanya in the Eastern Region. He is a product of the Havard University where he had Masters in Public Administration (MPA) and Certificate in Taxation. He also holds an MBA from Strayer University in the USA and a Bachelors of Commerce Degree from the University of Cape Coast, Ghana.

Mr. Tekper is a Chartered Accountant and has also participated in several short courses. He has held several key positions in African Development Bank, Ministry of Finance and Economic Planning and VAT Secretariat. He has also consulted for the IMF, Harvard Institute for International Development, African Development Bank among others.

Job With IMF

The nominee informed the Committee that he has resigned from his job with the International Monetary Fund (IMF) with effect from February 24, 2009.

VAT Introduction

Mr. Tekper indicated to the Committee that he was involved in the introduction of value added tax (VAT) in the Country and that it marked a significant moment in the history of Ghana.

He said he has learnt from experience that value added tax should not be administered as a stand-alone tax but should be integrated in the income tax system of the country. This will help avoid duplication of documents and also help strengthen tax administration.
Mrs. Gifty E. Kusi (NPP -- Tarkwa- Nsuaem) 2:05 p.m.
Madam Speaker, thank you for the opportunity to contribute to the motion on floor. I want to add my voice to that of the Hon Member who moved the motion to urge this Honourable House to approve of these nominations.
The first three nominees are really known to me as friends and they have performed very well in this Parliament. The fourth one, even though I do not know him personally, I do not have anything against him.
But Madam Speaker, I just want to place on record that we would have wished that in that Ministry of Finance, the three, the Minister and the two Deputies, at least one of them should have been a Member of Parliament. Last Session and last two Sessions we had Members of Parliament in the Ministry and most of the issues that pertained to this House were really understood easily because they were also in the First Parliament, in the Second Parliament too; Hon Moses Asaga was a Member of Parliament and at the Ministry of Finance.

Apart from this comment I think we should approve them and I have no problem.

Thank you, Madam Speaker.
Dr. A. A. Osei (NPP -- Old Tafo) 2:05 p.m.
Madam Speaker, I thank you for giving me an opportunity to contribute to the motion to adopt the 8th Report of the Appointments Committee. I also happen to know all the nominees but earlier on today I was getting a bit disturbed about my good Friend, Hon Abdul-Rashid Pelpuo. I thought that he was trying to contradict his President in terms of the vision but since he conceded that it was not his intention I think I will allow that to pass.
Alhaji Seidu Amadu, I have known
Dr. A. A. Osei (NPP -- Old Tafo) 2:15 p.m.
at least in Parliament and from what my Senior Colleagues have told me, he is a veteran of this House and in particular even though he is being sent to the Office of the President, I think that his skills and capacity might belong to a different Ministry. And I suspect that if it is not too late we may advise His Excellency the President that in the area of works and housing and building, such area, I think he is very good.
Yesterday I heard Hon Kwajo Tawiah, I think he is a very congenial person and again from what my Senior Colleagues have told me, he is a veteran of this House since 1993 and I believe that we should approve of his nomination.

Let me tell you why I am saying that. I think that there is a perception out there that he is sending a lot of Ministers of State to the Office of the Presidency and as of date it is not very clear what they are going to be doing. So for the sake of transparency, accountability and good governance we wish that in the future date we will be informed accordingly what these nice people -- they are all very competent people and we know they will do a good job.

Madam Speaker, on the fourth nominee, I have known Mr. Seth Tekper for a while when he was in the VAT Secretariat and again when he was in the International Monetary Fund. I have had a personal relationship with him for a while. Everytime we visit Washington he made

sure that he came to advise government delegation even though he was not a member of the New Patriotic Party (NPP). When he visited Ghana, he made sure he visited the Ministry of Finance to discuss with us the various issues in his area of expertise.

I think all the Members of the Appointments Committee will agree with me that his performance at the Appointments Committee was par excellence, very cool, congenial, level headed and in fact, at one time --

But I think that His Excellency the President has done this Government a very good service by appointing our good friend Seth Tekper to work under Dr. Kwabena Duffuor. I think that he will be an excellent asset to the Ministry, particularly in the area of revenue administration; not that he does not have any expertise in the other areas but his expertise in that area, and I am sure Dr. Duffuor would find in him a person who will contribute greatly to uplifting the already, I hope, good image that is coming from the Ministry of Finance.

Madam Speaker, with these few words, I wish to urge all my Hon Colleagues to support all these fine Hon Members of this House.
Mr. Ambrose P. Dery (NPP -- Lawra/ Nandom) 2:15 p.m.
Madam Speaker, I rise to support the motion and just to add that all these four gentlemen acquitted themselves creditably before the Appointments Committee.
Madam Speaker, I wanted to support the position of my Hon Colleague (Mrs. Gifty Eugenia Kusi) in respect of recommending that a Member of Parliament be considered to be a Minister or a Minister of State in the Ministry of Finance. My Hon Colleague did not give reasons; but I
want to say clearly that if you look at the Constitution, and especially in respect of Bills, you realize that most of the Bills which come to Parliament have financial implications.
In fact, one of the reasons why Private Bills have not been possible is because it is difficult for one to find an area where Bills can be introduced without any financial implications. That being so, and making of laws being the major function of Parliament, it is going to facilitate the work of both Parliament and the Ministry of Finance if we have a Member of Parliament there.
The Member of Parliament understands better the functions of Parliament. I just wanted to make this clear, lest, we will think that Members of Parliament want a Member of Parliament there for other reasons but these are germane, official and constitutional reasons, and therefore, we will recommend.
Madam Speaker, furthermore, we want to consider what the Constitution says, without prejudice to the arguments about whether Ministers should be Members of Parliament or not. But as long as there are Members of Parliament, and the Constitution recommends that over 50 per cent be made Ministers, we must ensure that in the compliance, the spirit is also complied with.
You could comply with the letter of the Constitution without complying with the spirit. What does it suggest? Is it the intention that these Members of Parliament should be sent to, for want of better term, in my words, peripheral Ministries or they need to be sent to core Ministries?
By the submission that I have made so far, the Ministry of Finance is a core Ministry in relation to the work of the
legislation, and therefore, I believe it is also in the spirit to have one person there, and not just to have Ministries.
If we add the Deputy Ministers, we can expect a situation that if we are not careful, the Executive would one day make all the Hon Members of Parliament Deputy Ministers, and in the peripherals. Madam Speaker, I think that this is the point that we want to get to the Executive as suggestion and proposal.
Madam Speaker, with these words, I support that these fine gentlemen be made Ministers.
Mr. M. K. Ntow (NDC -- Aowin) 2:15 p.m.
Madam Speaker, first, there is something that this House has almost forgotten to do, and that is members of the nominations committee, people who sit down for hours on end, to scrutinize, in other words, to analyze the backgrounds of nominees. I think that they are doing a very good job that they need to be commended.
So whilst we have people with knowledge and understanding in issues pertaining to the nominations or the nominees, when they have painstakingly taken the trouble to look at issues pertaining to these people, this House without any prejudice, should accept and then support the Report on the nominees that have been put before us.
Madam Speaker, so in conclusion, I would urge all Hon Members of the House to accept the report and then we go ahead with the Business of the House.
Mr. S. K. B. Manu (NPP - Ahafo Ano South) 2:15 p.m.
Madam Speaker, I also rise to contribute to the motion on the floor. And in doing so, I would like to look at Hon Kwajo Tawiah Likpalimor, Minister of Statedesignate. Madam Speaker, before
Mr. Hammond 2:25 p.m.
On a point of order. Madam Speaker, the Hon Member is misleading the House. Madam Speaker, apart from the fact that teachers may have their reward in heaven, if he says that a group like lawyers, judges, I do not know much about judges but I do know, Madam Speaker, that lawyers also expect their reward to be awaiting them in heaven because they do work called pro bono and that pro bono is not paid for on earth, it is paid for in heaven and that is for those of us who definitely are going to heaven.
I do not know about those who are going to purgatory but those of us going to heaven, we expect to get our money over there. So he has misled the House.
Mr. Manu 2:25 p.m.
Thank you, Madam Speaker; no comment on that. Madam Speaker, if he takes seriously --
Madam Speaker 2:25 p.m.
Hon Member, I
think what he is really referring to is that everybody must get his or her reward here, not in heaven.
Mr. Manu 2:25 p.m.
As we speak, we do not know the currency that heaven uses, whether it will be the dollar or the cedi and whether the cedi will appreciate against the dollar in heaven. [Laughter.]
So we want the reward here and now for teachers. If Hon Members will recollect, once the leader of National Association of Graduate Teachers (NAGRAT), Mr. Kwame Alorvi said that “if teachers were not well motivated they will teach according to their conscience.”
That is why I am saying that teachers should be well motivated so that they would, out of their hearts, teach our children so that they will pass and pass well, to climb higher on the education ladder to take after us when we would be gone.
Lastly, Madam Speaker, the Hon Minister-designate told us, according to the Report, that in addition to his Parliamentary work he is also into yam production. This tells us that this is an industrious Member of Parliament who combines the parliamentary work with farming and if we have such a Minister then I believe that he will not forget about the well-being of farmers in this country.
Coming from Kpandai where they cultivate a lot of yam for this country, I think if he is made a Minister of State, it will augur well for farmers and our food security and employment will be assured and more money will come into the pockets of those farmers.
Finally, Madam Speaker, he also talked about expansion in facilities and provision of office accommodation for Members of Parliament. This really tells us that the Hon Member who has done sixteen years in Parliament really knows what he is talking about. He is one of the eight pioneers of this Parliament and I want to believe that he has hit the nail right on the head. Parliament is growing and we must desist from sitting in the corridors to hold meetings. I am glad that the Minister for Finance is here. This is not a good
image we are carving for our Parliament, should visitors come from outside to see us hold serious parliamentary meetings in corridors with people going to and fro.
I think that as we are giving dignity to the Presidency by our approval for the Jubilee House, it is time the Executive turned attention to this branch of governance which is the Legislature. We should not pay lip service to the Legis- lature and democracy. The Legislature is the epitome of democracy because in times of coups d'etat when soldiers have toppled governments, there has been always in place some sort of Executive.
There has also been in place some sort of the Judiciary. What we lack in such times is the Legislature. When the Legislature is absent we say there is no democracy. And therefore, governments, as we trumpet our liking for democracy, our adoration for democracy and everything, we must be seen to be walking our talk. We should not only be paying lip-service to our liking for democracy when we turn a blind eye to the Lgislature, that is Parliament which democracy represents.
Madam Speaker, I do not know if the
Hon Deputy Majority Leader wants to contest this fact. And if he does so, I really wonder if he really wants to be the Deputy Majority Leader. When we are talking about the welfare of Parliament and he needs to sit down and listen to be able to advise the Executive, he gets up. I do not know what he wants to say.
In any case, I thank you for the opportunity and I want to say, once again that Parliament must be given its deserving place in Government and must be respected and provided with the facilities and other things that will make - and when I say other things he understands -- Parliamentarians work and work very well as I have advocated for teachers because teachers, if they are not well motivated will teach according to
Mr. Akologu 2:25 p.m.
Madam Speaker, thank you very much. Even though the Hon Colleague has finished, he has made some factual mistakes and I wish to correct them. He said that Hon Likpalimor was among eight pioneers of this Fourth Republican Parliament. I think there were two hundred pioneers of this Parliament in the first place. And then Hon Likpalimor is among five surviving Members of that group in this House today. That is what I want to correct, Madam Speaker, for the record.
Mr. Manu 2:25 p.m.
Thank you for that but you know that he is older than you in Parliament -- [Laughter.]
Madam Speaker 2:25 p.m.
Hon Member, I think the debate is on -- [Interruptions.]
Mr. Akologu 2:25 p.m.
Madam Speaker, that is also wrong. I took the Oath of a Member of Parliament on 7th January, 1993 at the same time as Hon Likpalimor -- [Inter- ruptions.]
Mr. Manu 2:25 p.m.
So you are “Talensi Mugabe” -- [Laughter.]
Mr. Osei Kyei-Mensah-Bonsu 2:35 p.m.
Madam Speaker, I thank you for the opportunity to associate myself with the
motion. First of all, in respect of the Hon Abdul-Rashid Pelpuo, Minister of State- designate.
Madam Speaker, a second time Member of Parliament, he has indeed distinguished himself as one of the emerging stars on the NDC Bench and I do know that for some other con-siderations, including regional, religious, ethnic matters, the Hon Member would have well fitted into areas where I believe he would have really been in a position to exhibit his talents and let this nation profit all the more from his own experience and background. That notwithstanding, I believe that wherever he finds himself he will be able to distinguish himself.
In respect of Hon Kwajo Tawiah Likpalimor, as has been said, a veteran of this House, a fifth-term Member of the House, described by some colleagues as one of the surviving “Mugabes” in this House, we want to believe that he would let the experience that he has gathered and garnered in this House guide him at his new destination.
Madam Speaker, Mr. Seth Tekper, a technical person, we believe, is going to complement the effort of Dr. Kwabena Duffuor at the Ministry of Finance. The nominee demonstrated considerable brilliance and intelligence before the Appointments Committee and he exhibited his calmness and coolness of head even under pressure.
Madam Speaker, we believe that it is such a person that the Ministry of Finance needs, not a person who will demonstrate hot headedness, belligerence and bellicosity - [Hear! Hear!] - Madam Speaker, such a person is clearly not needed at such a Ministry and that is why I am glad that Mr. Seth Tekper is going to the Ministry of Finance.
Madam Speaker, the point has
been made about having a Member of Parliament to serve at the Ministry of Finance. Madam Speaker, apart from the issues raised by my Hon Colleagues, the Member of Parliament who will be there will be piloting Bills and will be keeping track of those loan agreements which come to Parliament.
Indeed, the Member of Parliament who serves at the Ministry will be in charge of the Parliamentary leg of the Ministry and that is why it is important to have a Member of Parliament at the Ministry. Oftentimes, when it comes to laying loan agreements before the House, the Minister himself may be inundated so much that he will need somebody to be keeping track of the leg of the Ministry in Parliament and it is not for anybody to get up and maybe bow to indicate that a Paper has been laid whereas a person may not know the facts or the principles underpinning a loan agreement that comes before Parliament.
It is very, very critical that we have a Member of Parliament serving at the Ministry. So we believe that the Minister will now be in a position to advise His Excellency the President to reconsider this and let us have a Member of Parliament -- Once people have been sworn into office, there could be a reshuffle and the Constitution allows for that. So the President may well take a cue and in the envisaged reshuffle, have a Member of Parliament, a Deputy Minister, go to the Ministry of Finance to complement the efforts of Dr. Duffuor.
Madam Speaker, in respect of Hon Amadu Seidu, he is a man of great competence and talent and I would have thought that his talent will not be allowed to go fallow at the Presidency without any defined portfolio. However, who knows; maybe, if he exhibits such brilliance at the
Presidency, the President may assign him special responsibilities and in that case the Hon Seidu would be of greater profit to the country than being allowed to be put into fallow land.
Madam Speaker, with these few words, I beg to support the motion on the floor of Parliament.
Mr. Adjaho 2:35 p.m.
Madam Speaker, I am grateful for the comments Hon Members from both sides of the House have made on the Committee's Report. There is a strong feeling from both sides of the House that, there is the need for at least one of the Deputy Ministers to come from this honourable House -- [Some Hon Members: Osaga, Osaga]. I think that it is a position I share myself. [Hear! Hear!] He has a historical antecedent. Madam Speaker, I was not a member of the Consultative Assembly but when the framers of our Constitution decided that we should have a hybrid, I believe they were informed by what happened in the Third Republican Parliament when President Limann's Budget was rejected -- [Interruptions.]
So they thought that we should get the hybrid so that there is a kind of relationship between this House and the Executive so that as much as possible understandings, frictions antagonisms -- and all those things -- can be brought to the bearest minimum. If that was one of the main considerations that went into the thinking of the framers of our Constitution including this provision, then it is important and very imperative that in addressing that mischief, we have at least one of the Deputy Ministers from the Ministry of Finance being a Member of this august House.
Fortunately for us, the Hon Minister himself is here and I believe that he will carry the sentiments of this Honourable
Mr. Adjaho 2:35 p.m.


Madam Speaker, with these few comments, I thank you very much.

Question put and motion agreed to.

Resolved accordingly.
Madam Speaker 2:45 p.m.
Hon Members, the House has accordingly approved the following nominees as Ministers of State in accordance with article 78 (1). And they are: Mr. Emmanuel Seth Tekper, Deputy Minister for Finance; Mr. Kwajo Likpalimor, Minister of State; Mr. Abdul- Rashid Pelpuo, Minister of State; Alhaji Seidu Amadu, Minister of State.

May I take this opportunity to congratulate all those who have received Parliamentary approval, especially the Members of this House.

At this stage, unless the Leaders have something to say -- Do you have anything to say before I adjourn Sitting?
Mr. Akologu 2:45 p.m.
Madam Speaker, whilst we are waiting for the Finance Committee to bring their Report, the debate on the Motion to approve the Government's Financial Policy should continue.
Madam Speaker 2:45 p.m.
Hon Member, you are suggesting that we suspend Sitting till when? We have no indications from the Leadership about when to suspend Sitting. It is already getting to 3 o'clock and I
believe you have provided something for them. [Pause.] It is almost 3 o'clock and there is no indication as to when the House should be suspended.
Mr. Kyei-Mensah-Bonsu 2:45 p.m.
Madam Speaker, I thought that the initial agreement was to continue with the debate after going through the motion on the Report of the Appointments Committee.
Madam Speaker 2:45 p.m.
Yes, but if I suspend Sitting, to when? Should I just suspend and then we go? Hon Members should know when to come back. Can you give us an indication?
Mr. Kyei-Mensah-Bonsu 2:45 p.m.
Well, Madam Speaker, if we have to suspend then -- [Interruption.]
Madam Speaker 2:45 p.m.
That is why I called on you. If you think I should just suspend Sitting without stating the time to reconvene -- [Pause.]
Mr. Kyei-Mensah-Bonsu 2:45 p.m.
Well, if we have to suspend then up to one hour.
Mr. Akologu 2:45 p.m.
Madam Speaker, I think that will be in order. By that time the Finance Committee's Report will be ready and we can take them.
Madam Speaker 2:45 p.m.
Within one hour?
Mr. Akologu 2:45 p.m.
Yes, within one hour.
Madam Speaker 5:40 p.m.
Hon Members, the House is suspended for one hour and we will reconvene after one hour.
The Sitting was suspended at 2.49 p.m.

Sitting resumed.
Madam Speaker 5:40 p.m.
Hon Members, we
go to item 4 (b) on the Order Paper.
PAPERS 5:40 p.m.
Mr. Akologu 5:40 p.m.
Madam Speaker, the reports have been distributed to Hon Members so we can proceed.
Suspension of Standing Order 80 (1)
Minister for Finance (Dr. Kwabena Duffuor) 5:40 p.m.
Madam Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80 (1) which require that no motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the motion is given and the date on which the motion is moved, the motion for the Second Reading of the Airport Tax (Amendment) Bill, 2009 may be moved today.
Mr. J. K. Avedzi 5:40 p.m.
Madam Speaker, I beg to second the motion. [Interruption.]
Mr. Frederick Opare-Ansah 5:40 p.m.
On a point of order. Madam Speaker, I come under Order 91 (c) with particular reference to Order 109. It is not just the absence of a quorum for debating that worries me but the Bills we are about to consider are of very significant importance to the nation. Not only do we not have the quorum to even continue with the debate, but as Order 109 (1) clearly states, if we are going to take these decisions we need to have, at least, one-half of all the
Hon Members of Parliament taking the decision.
Unfortunately, looking around at this time I cannot count even the basic quorum required for debate to continue and it is my contention that, indeed, we will not be able to get the same number within ten minutes. So I would want to beg that we adjourn Sitting and suspend this particular motion, probably till tomorrow when we have a much bigger House to continue with this.
Mr. Akologu 5:40 p.m.
Madam Speaker, whilst I will concede that the Hon Member has a point, the practice and convention in the House, which I think had been strongly articulated by the Minority Leader when he was on this side, and in the spirit of consensus and in the interest of the nation, we have done business in this House considering the nature of the issues. As much as I know that he is within the limits, by convention we have done even worse, with a few people sitting here.
We have to also understand that in the morning when we looked at this, the Committee was mandated to go and come and report to us about the urgency of the nature of the Bills. We have not even reached that stage and besides he has also applied himself to the rules by saying that we have to wait for ten minutes to see whether the numbers would be made.
So I would crave your indulgence that we continue with the business and then if after the said ten minutes, as stipulated in the rules, we do not make the numbers, then we will advise ourselves.
Madam Speaker 5:40 p.m.
I think the quorum has to be one-third. It is the decision on Order 109 that has to be half, is it not? So, have we not got a quorum? We are ringing the bell and we keep ringing the bell.
Mr. Opare-Ansah 5:40 p.m.
Madam Speaker, if I may add, the point I sought to make is not that we do not have conventions. Indeed,
Mr. Opare-Ansah 5:40 p.m.


we have all been in the Chamber when sometimes we have seen just a handful of people and business continues. I drew particular attention to the fact that the two items that we wish to consider are seeking to make laws to amend certain taxes and these are very important matters and that is why I am raising this matter.
Madam Speaker 5:40 p.m.
Have you looked at Order 48 (2)?
“If at the time of sitting a Member takes notice or objection that there are present in the House, besides the person presiding, less than one-third of the number of all the Members of Parliament, and after an interval of ten minutes . . .”
We have not had ten minutes yet since you raised that the quorum is not present. So since you raised it, let us have ten minutes, ringing the bell and see because we are permitted ten minutes. Meanwhile, can we not start with business? Because we have ten minutes to be ringing the bell.
Mr. Opare-Ansah 5:40 p.m.
Madam Speaker, are we starting the counting from now or when the issue was raised?
Madam Speaker 5:50 p.m.
I think after the decision has been taken; from now on-- So five past six, if they are not here you can raise it again -- [Pause.] Reading Orders 48 and 109 together, it seems we can start it within 10 minutes from now. [Pause.] So shall we continue until the 10 minutes?
Mr. Akologu 5:50 p.m.
Madam Speaker, I also want to draw the attention of Hon Members to the fact that some committees are sitting, especially the Appointments Committee, and it would only mean that if we have to call everybody to come into the Chamber, then work there would also be stalled. If that is what is preferred then we would do that.
I think that we have often said here that all Hon Members who come here and are engaged in committee work I understand that this is the floor but I am saying that if we are going to apply the rules strictly then we would be disrupting work in other committees and it would affect the business of the House. The convention that I referred to that we have even done business with fewer Hon Members than we have now, if it is new news, fine; we would know what to do.
Madam Speaker 5:50 p.m.
We can keep ringing the bell and after 10 minutes if we do not get them, then we would adjourn according to the Orders.
Question put and motion agreed to.
Resolved accordingly.
BILLS -- SECOND READING 5:50 p.m.
Minister for Finance (Dr. Kwabena Duffuor) 5:50 p.m.
Madam Speaker, I beg to move, that the Airport Tax (Amendment) Bill, 2009 be now read a Second time.
Madam Speaker, the object of the Bill is to increase the Airport Tax from US$50 (fifty United States dollars) to US$75 (seventy-five United States dollars) for a passenger departing by aircraft to a destination outside West Africa.
Madam Speaker, Airport Tax is needed to support improvement in basic amenities like, comfortable and secured resting places and decent places of convenience, which consumers demand and deserve to have.
Madam Speaker, moreover, much has changed in airport security since the last increase in 2001. In the post 9/11 era, increased airport security requires additional security personnel and improved technology to ensure the safety of the travelling public.
Madam Speaker, i t is common international practice for governments to impose the tax for these facilities through additional airport charges. This is what the Bill seeks to achieve.
Madam Speaker, I beg to move.
Chairman of the Committee (Mr. J. K. Avedzi) 5:50 p.m.
Madam Speaker, I rise to present the Report of the Committee.
1.0 Introduction
The Airport Tax (Amendment) Bill, 2009 was presented and read the First time in the House on Tuesday, 10th March, 2009 and referred to the Finance Committee for consideration and report. The Committee was also tasked to consider whether the Bill is of urgent nature pursuant to Order 119 of the Standing Orders of the House.
This followed the presentation of the Financial Policy of the Government of Ghana for the year ending 31st December, 2009 by the Minister for Finance, Hon Dr. Kwabena Duffuor on Thursday, March
05, 2009.
The Committee met and considered the Bill with the Minister for Finance, Hon Dr. Kwabena Duffuor, Minister for Transport, Hon Mike Hammah, and officials from the Ministries of Finance and Transport, the Customs, Excise and Preventive Service (CEPS), the Internal Revenue Service (IRS) as well as officials from Ghana Civil Aviation Authority (GCAA) and hereby presents this Report.
2.0 Reference Documents
In considering the Bill, the Committee was guided by the following documents:
a. 1992 Constitution of the Republic of Ghana
b. Standing Orders of the House
c. Airport Tax Act, 1963 (Act 209)
d. The Budget Statement and Economic Policy of the Government of Ghana for the 2009 Financial Year.
3.0 Background
Hon Members would recall that in the presentation of the Financial Policy of the Government of Ghana for the year ending 31st December, 2009, the Minister for Finance, Hon Dr. Kwabena Duffuor indicated to the House, Government's proposal to increase Airport Tax on international passengers to help raise the needed revenue to support improvement in basic amenities which travellers demand and deserve to have.

This Bill is introduced to give effect to that measure.

4.0 Object of the Bill

The object of the Bill is to amend the Airport Tax Act, 1963 (Act 209) by raising the Airport Tax from fifty United States dollars (US$50) to seventy-five United States dollars (US$75) for passengers departing by aircraft to a destination outside of West Africa.

5.0 Contents of the Bill

The Bill contains one clause.

Clause 1 seeks to amend Subsection 1 of Section 1 of the Airport Tax Act, 1963 (Act 209) to increase the tax on passengers travelling to destinations outside West Africa to US$75.

6.0 Observations

The Committee observed that the Bill is aimed at increasing the Airport Tax on passengers travelling by aircraft to international destinations outside of West Africa and that the tax on domestic passengers and passengers travelling to West African destinations remain the same.

The Committee further observed that the Airport Tax is needed to support improvement in the amenities at the airport. These amenities include comfortable and secured resting places, a better environment for those in transit and decent places of convenience.

The Committee was informed that in the post “September Eleventh (9/11)” era, there has arisen an unprecedented need to improve airport facilities and beef up safety and security.

It was noted that with our existing laws,

Airport Tax revenue is shared at the ratio of 60:40 between the Consolidated Fund and the Ghana Civil Aviation Authority (GCAA) respectively.

Some Members opined that the provisions of the existing law with regard to the ratio may have to be reviewed in view of the International Civil Aviation Organization (ICAO) regulations which require that the entire proceeds of such tax be used exclusively on the development and maintenance of the airport facility.

The Committee, however, agreed that the raising of tax should be approved so that at a later date, the Minister comes to the House to explain how the proceeds are being used.

Members advised Government to take note of the general context of the desire to make Ghana a cheaper and competitive tourist destination in analyzing the impact of the Airport Tax increment.

The Minister for Transport, Hon Mike Allen Hammah, however, explained to the Committee that internationally, Ghana is still competitive.

Urgency

The Committee agreed that the Bill is of urgent nature and therefore should be taken under “a certificate of urgency”.

Amendment Proposed

The Committee respectfully proposes the following amendment to the Bill:

i. Add a new clause to the Bill as follows:

Act 596 Repealed:

“2. The Airport Tax (Amend- ment) Act, 2001 (Act 596) is

repealed”.

7.0 Conclusion

The Committee has critically examined the Bill and is of the opinion that the Bill will help the country raise additional revenue for the development of the airport in particular and the country as a whole.

The Committee therefore recommends to the House to adopt this Report.

Respectfully submitted.
Madam Speaker 6 p.m.
Hon Members, should I hear Leadership?
Mr. J. A. Akologu 6 p.m.
Madam Speaker, I know that it is about ten minutes to time when our attention was drawn to the issue about quorum. But we have consulted and agreed and the Appointments Committee members have been asked to come back; all other committee members who are there are on their way here and we would want to take this one at least and then consider the other one tomorrow.
I have talked to the other side and I guess and hope that at least, for the sake of the nation, this consensus for today is in the interest of all of us. I think we can take this one and then rather stand the other one for tomorrow. We have invited, as I said, members of the Appointments Committee and others who are outside to join us to take this decision.
Mr. Frederick Opare-Ansah 6 p.m.
Madam Speaker, indeed my Hon Colleague the Deputy Majority Leader, myself and other Hon Colleagues consulted and we feel that having regard to the fact that the Minister for Finance has sat with us since morning and suffered with us the hunger that we

We know he is now appreciating how hard we are working to help him move forward in the direction that he has chosen. In fact, we are in agreement to do the first item. However, it is still our conviction that the other Bill which is affecting a lot of Ghanaians should be stood down and taken tomorrow.

Question proposed.
Mr. Joe Baidoe-Ansah (NPP -- Effia Kwesimintsim) 6 p.m.
Madam Speaker, I am rising to oppose the motion. I am doing this because as a country, we have to be interested in making our country a cheaper destination for tourism and also a place for doing good business.
Madam Speaker, by increasing Airport
Tax to $75, it is too high and it would affect business at all the areas that they attract tourism, that is, places that attract tourists and also a lot of our service industry.
Madam Speaker, already as we stand now, with Airport Tax at $50, Ghana which is supposed to be a gateway to West Africa is not attracting any airline from Togo and Benin because it is easier and cheaper for people to drive to this country to do business than to use the airplane. So as we talk here, no plane arrives in the country from Togo or Benin because it is too expensive to land in this country.
If we are interested in creating jobs, this is not the time to increase airport taxes, in fact, it is the time to reduce them. This is the time to reduce airport taxes to enable aircrafts to land in our country and to attract tourists and investors into our country. Nobody invests in any country where the cost of doing business is expensive.
Mr. Joe Baidoe-Ansah (NPP -- Effia Kwesimintsim) 6:10 p.m.
But this tax is driving them out of the industry. In fact, if we do not take care the tourism industry in our country will collapse.

Madam Speaker, we have a problem; a very big problem. The problem is that Government is only interested in raising taxes and Government is not interested in attracting people to invest in our country, attracting people to come on holiday in our country, attracting people to come to conferences in our country so that people in our country would benefit.

Madam Speaker, what is interesting is that by decreasing this tax people would come and at least the iced water seller in Ghana would benefit. Whoever comes to our country and buys iced water would make somebody who sells iced water take at least a penny home. This Bill is preventing those people from taking a penny to their homes.

Madam Speaker, what is going on today in this House is very disheartening, especially for a Government that has been voted to create jobs for our people; for a Government that has been voted to ensure that people in our country become happy. Madam Speaker, I do not know whether any of the people who voted for the National Democratic Congress (NDC) Government voted for them to come and do this; to drive people out of jobs.

Madam Speaker, the implication of this

is that people would drive from Benin to Ghana for their holiday. It has an effect on our roads, it has an effect in ensuring that people come here safely and go home safely.

Madam Speaker, Ghana is supposed to be the gateway to West Africa; we have tooted it. Vision 2020 as presented by the NDC before the New Patriotic Party (NPP) Government came which was ably described by Hon J. H. Mensah as having a glaucoma eye, today it stands out that it is true that there is a glaucoma eye. The problem now is that the vision that they ascribe to our country is dying.

Madam Speaker, I want to give you a few statistics of the cost of doing business in West Africa.
rose
Madam Speaker 6:10 p.m.
Hon Member, if you
are raising a point of order, what Order are you coming on?
Mr. Hammah 6:10 p.m.
Madam Speaker, I
just wanted to help my Hon Friend -- [Interruptions.] Point of information, Madam Speaker. I just want to give a voluntary information --
Madam Speaker 6:10 p.m.
You can only
challenge if he has said something which is not right.
Mr. Baidoe-Ansah 6:10 p.m.
Madam Speaker, I am not yielding.
Madam Speaker 6:10 p.m.
If I hear him then I
would know what he wants to do. Has he said something that you need a correction?
Mr. Hammah 6:10 p.m.
Madam Speaker,
he was talking about Ghana being uncompetitive if we increase the airport taxes to $75. But I just wanted to remind him that when the Airport Tax was
amended in 2001 when his government was in power, it was increased to $50 and at that time, if you compare that rate to what we had pertaining, it was still relatively high. So I just wanted -- [Interruptions.] It is a point of correction to let him understand that talking about relative comparative -- [Interruptions.]
Mr. Baidoe-Ansah 6:10 p.m.
Madam Speaker, after the taxes were increased to this level no one expected that very soon taxes would be increased again. After that we have had the stock of our hotels increased to the extent that for the first time in the history of our country we have had a major United Nations (UN) conference in our country; that is the United Nations Conference on Trade and Development (UNCTAD) conference that attracted 4,000 people in our country.
Madam Speaker, this has never happened in Ghana before; because the last Government created an enabling environment for people to come into our country for conferences and to enjoy themselves.
Madam Speaker, since the time of Dr. Kwame Nkrumah there has never been an occasion where United Nations has held a conference that has attracted more than 4,000 people into our country. It happened in UNCTAD 12. More than 4,000 people came into this country; nobody saw congestion, nobody saw anything, but people were in the country and this country was hailed as a place for doing good business and a place that is a cheaper destination.
In fact, the reason for bringing UNCTAD into this country was the fact that they compared the cost of doing business, the cost of hotels in other places and UNCTAD, the United Nations chose Ghana as the destination. Madam
Speaker, we would not sit here to allow them, people we have voted for to come to power to come and destroy the record that we already have.
Madam Speaker, let me give you the statistics. In Cameroon, Airport Tax is $40.60, in la Cote d'Voire it is $62, in Nigeria it is $35, in Senegal, $38.70, Kenya is $40, South Africa is $14.30. Madam Speaker, as at the time we are speaking, we would not allow people -- [Interruptions] --We, myself and my constituents; I represent my constituents in this Parliament.
Madam Speaker, we are not going to allow them to go round deceiving people on the streets just to come to this House to increase taxes. If it is taxes that are going to put people on the street -- people who work in hotels, people who work in beach resorts, people who work in bars, people who sell iced water on the street -- We on this side will never allow them to put people on the street. Already, there are people on the streets and the task for the Government is to put people out of the streets to go and work. Madam Speaker,
I -- 6:10 p.m.
Mr. A. K. Agbesi 6:10 p.m.
Madam Speaker, for about one hour now our Hon Colleague has been speaking and the issue is that we have to take this motion -- [Interruptions.] Madam Speaker, I am rising on Order 91(e). Madam Speaker, I heard my Hon Colleague say that they would not allow us to go and deceive people and come to the floor here and increase prices. That is what he said. Madam Speaker, that is a very, very serious statement. We of the NDC did not deceive anybody.
Indeed, our policies, our programmes are acceptable and are good for the people of this country and they voted for us. It is so misleading for him to say that we deceive people and come to the floor here to increase prices. Madam Speaker,

that is a statement which is not true, it is not factual and I want him to withdraw that statement. It is not true; NDC did not deceive anybody. Madam Speaker, his constituency is different from other constituencies. For that reason he cannot come here and make a general statement to embody everybody. I am saying that his submission should be relevant to the issue we are discussing; he should speak to the motion.
Madam Speaker 6:20 p.m.
Can I rule on this? I take it you were referring to Standing Order 93 (2).
Mr. Agbesi 6:20 p.m.
No, Madam Speaker, I referred to --
Madam Speaker 6:20 p.m.
Standing Order 91 was your point of order but after what you have said I see that you are really referring to Order 93 (2) that --
“It shall be out of order to use offensive, abusive, insulting, blas- phemous or unbecoming words or to impute improper motives to any other Member . . .” It says “to any other Member”.
So which Member was he referring to?
Mr. Agbesi 6:20 p.m.
Madam Speaker, he was
making offensive statement against the NDC and the NDC Members who are in this House. NDC Members are in this House. He is making offensive statements against us in this House.
Madam Speaker 6:20 p.m.
Well, he did not
spell out to which Hon Member; that is why I was asking you. He did not say to NDC Members. You are assuming, is it? [Interruptions.] Order!
Mr. Baidoe-Ansah 6:20 p.m.
Madam Speaker,
the English language is a very interesting
language. It is not our language but it is interesting. Madam Speaker, all what I am saying is in reference to Members to advise Government to take note of the general context of the desire to make Ghana a cheaper and competitive tourist destination.
Madam Speaker, the issue goes beyond
tourists' destination. The issue is a destination for business. This tax, would it help our country to be a cheaper destination in making business or in doing business; or would it make our country a very expensive destination?
Madam Speaker, I just gave the details of the cost of doing business in terms of flying into other countries and I said that in Cameroon, 40 dollars, 60 cents is how much they charge for people to come into their country. In la Cote d'Ivoire 62 dollars, in Nigeria 35 dollars; in Senegal 38 dollars 70 cents; in Kenya 40 dollars and in South Africa 14 dollars 30 cents.
Madam Speaker, this country is part of the global economy. We are competing with South Africa. What we should be doing is to ask ourselves what it is that South Africa is doing that we have an advantage. What is it that Senegal is doing that we have an advantage? Madam Speaker, if we take airport tax, we have no advantage.
The advantage we have is even complicated by people going on the streets to stop nice vehicles and asking whether they belong to Government -- [Laughter.] It is even worse, Madam Speaker -- which they are not doing in South Africa. If we talk about a country, why people want to do business in - [Interruption.]
Mr. G. K. B. Gbediameh 6:20 p.m.
On a point
of order. Madam Speaker, Standing Order 93 (4), and with your permission, I quote:
“The speech of a Member must have reference to the subject matter under
discussion.”
Stoppage of cars on the road has nothing to do with airport tax and Madam Speaker, you have to draw his attention to the time he has been on his feet because we are constrained by time.
Mr. Baidoe-Ansah 6:20 p.m.
Madam Speaker,
I am saying this because my constituency is Effia Kwesimintsim Constituency in Takoradi. A friend of mine came to the airport, picked up a Land Cruiser, a hiring vehicle and was stopped on the street, a potential investor in the oil industry.
What I am saying here is that after increasing the cost of business if people would go on the streets to stop these guys just to ask them whether the vehicle they are sitting in belongs to Government or not, portrays a very bad image of our country. I am saying that apart from the cost of doing business we have other added costs, other image problems -
Madam Speaker 6:20 p.m.
Shall I rule on the
objection he took.
Mr. Baidoe-Ansah 6:20 p.m.
Madam Speaker,
do.
Madam Speaker 6:20 p.m.
His objection was that it is not relevant to the motion that we adopt the Airport Tax (Amendment) Bill -- that is, the car business. The other thing about things affecting tourism is relevant but as to the car thing I do not think it is relevant, so shall we move on.
Mr. Baidoe-Ansah 6:20 p.m.
Madam Speaker,
what I am saying is that it affects the cost of doing business in our country. In this country what is important is for us all to know that we are competing with other countries. Ghana today is a country that has tourism as the fourth foreign exchange earner and people would have to take a decision whether they will come to Ghana for their holiday or they will go to South
Africa.
Madam Speaker 6:20 p.m.
Hon Member, I think you are belabouring that point. We have got it. Can you move on quickly to another point?
Mr. Baidoe-Ansah 6:20 p.m.
Madam Speaker,
also, in my opposition, I would want to point out that currently the 50 dollars that we are receiving from Airport Tax is still a disincentive to people who come to this country. It is still putting people away. If one goes to England one would see that a Travel and Tours Company, they tell you that it costs 300 pounds to go to the Caribbean for a week holiday, it includes hotel and everything including airport tax. Seventy-five dollars means about one-third of the cost is airport tax, nobody would come into this country.
Madam Speaker, I am saying that if we want to even take money it should be used for the improvement of our airports. Madam Speaker, if you go to Kotoka International Airport we have really improved it.
For the last 30 years since Ghana was born, there had never been an occasion in the history of our country that an international flight had landed anywhere in our country apart from Kotoka International Airport but during our time, the last 8 years, Confederation of African Nations (CAN) 2008, South African Airline landed in Tamale Airport. Tamale Airport today is an international airport. [Interruption.] Since our country was born -- Tamale Airport is an international airport. [Interruption.]
Mr. I. A. B. Fuseini 6:20 p.m.
On a point of order. Madam Speaker, the Hon Member is misleading this House. Indeed, in 1974 the first international aircraft landed at the Tamale International Airport and ferried pilgrims from Tamale to the Kingdom of
Mr. I. A. B. Fuseini 6:30 p.m.
South Africa.

Indeed, that was long before the attempted elongation of the runway. And that aircraft was brought into this Republic by a company known and called Bestworld; so it is not true. It is not true that since this country was born the only time that an international aircraft has landed in this country, in the northern part of Ghana is when the NPP was in power; it is not true so he should take that on board.
Madam Speaker 6:30 p.m.
All r igh t ,
Honourable carry on.
Mr. Baidoe- Ansah 6:30 p.m.
Madam Speaker,
this is the first time I have known that there is a pilgrimage in the Republic of South Africa. [Laughter.] Madam Speaker, we are learning.
Madam Speaker 6:30 p.m.
Are you challenging
it or just commenting that this is the first time?
Mr. Baidoe-Ansah 6:30 p.m.
No, Madam
Speaker, I am going ahead but I am acknowledging that I have learnt that for the first time South Africa is the Kingdom of South Africa where they have landed in Tamale to pick pilgrims to that place.
rose
Madam Speaker 6:30 p.m.
Honourable, all he
is saying is that this is the first time he has heard it. It does not mean that the correct -- [Interruptions.] What other objection?
Mr. Fuseini 6:30 p.m.
Madam Speaker, well
if I said South Africa then it was a slip of tongue. But the crux of the matter is the palpable falsehood contained in that statement. It is a palpable demonstrable
falsehood that the first time an international aircraft had landed in this country at the Tamale International Airport was when NPP was in power. I am demonstrating to him that an aircraft brought into this country in 1974 by a company known as Bestworld ferried pilgrims from the northern part of Ghana and specifically at the Tamale Inter-national Airport to the Kingdom of Saudi Arabia. [Laughter.] Madam Speaker, to the Kingdom of Saudi Arabia.
Madam Speaker 6:30 p.m.
Order! Order!
Mr. Fuseini 6:30 p.m.
Madam Speaker, to the Kingdom of Saudi Arabia for the purposes of performing pilgrimage. And I am saying that that aircraft when it was coming back to Ghana did not land at Kotoka International Airport, it landed at the Tamale International Airport from the Kingdom of Saudi Arabia; so it is not true, it is a falsehood.
Madam Speaker 6:30 p.m.
He is hearing this for the first time. He is not challenging it. He said he is hearing it for the first time so you have corrected it.
Mr. Baidoe-Ansah 6:30 p.m.
Madam Speaker, if this thing happened at the time of General Acheampong then I think Gen. Acheampong deserves a monument more than Captain Sankara because after Gen. Acheampong, nothing of that nature has happened in the North. If this thing really happened during Acheampong's rule then this country has done a great disservice to Gen. Acheampong by executing him.
One other thing I want to bring to
the notice of this House is the fact that this Bill seeks to appropriate 40 per cent of the revenue to be accrued to Ghana Civil Aviation Authority and 60 per cent to Government to use as Government revenue or as budgetary support. If this House agrees and allows that to go through then the memorandum that was just read
by the Minister for Finance is deceiving this House, is misleading this House. You cannot come to this august House and tell this House that you are going to use revenue for a particular thing for the House to give you a mandate and for it to be used for another thing.
The memorandum accompanying this Bill is very clear about whatever revenues that come into the kitty, that is this airport tax kitty; mine is that it should be the 50 per cent. Whatever it is, it should go to the development of the airport as said by the Minister for Finance. Madam Speaker, I do not see why any memorandum accompanying a Bill to this House telling us exactly what it is going to use the money for, just for it to be taken back for other uses. The memorandum says that this money is going to be used to improve our airports.
Madam Speaker 6:30 p.m.
But Honourable,
if you are referring to the Report which I have here, is it not in the Report? Page 6.
Mr. Baidoe-Ansah 6:30 p.m.
Madam Speaker,
yes, it is in the Report. Page 3, paragraph 3. It says: “It is noted that our existing laws --”
Madam Speaker 6:30 p.m.
No, no, the
Committee further observed. I thought you were referring to the Report.
Mr. Baidoe-Ansah 6:30 p.m.
Madam Speaker,
yes paragraph 3 of our Report.
Madam Speaker 6:30 p.m.
“Observations”
Mr. Baidoe-Ansah 6:30 p.m.
Madam Speaker,
“Observations”, paragraph 3.
Madam Speaker 6:30 p.m.
No, let us say
paragraph 2.
Mr. Baidoe-Ansah 6:30 p.m.
All right. Madam Speaker, it says:
“The Committee further observes that the airport tax is needed to support improvement in the amenities at the airport. These amenities include comfortable and secured resting places, a better environment for those in transit and decent places of convenience.”
The Committee was informed that in the post-September 11 era there has risen an unprecedented need to improve airport facilities and beef up safety and security. And it went further --
Madam Speaker 6:30 p.m.
I only refer to this
because of the observations you were making.
Mr. Baidoe-Ansah 6:30 p.m.
Madam Speaker,
Madam Speaker 6:30 p.m.
Hon Members, let him finish. Let him finish, you will have your turn. Honourable, you have taken quite a long time.
Mr. Baidoe-Ansah 6:30 p.m.
Madam Speaker,
thank you very much. I am so grateful; the people of Ghana are very grateful to you. Thank you.
Minister for Transport (Mr. Mike A.
Hammah): Madam Speaker, thank you very much for giving me the opportunity to contribute to the motion on the floor.
Madam Speaker, the Ministry of Transport's strategy of making Ghana the aviation hub in the sub-region requires that our international and domestic airports are improved to meet international standards. If we had to improve our domestic and international airports to meet international
Mr. Baidoe-Ansah 6:40 p.m.


standards, it requires that the physical infrastructure and the air navigational functions are improved to improve on safety oversights in this country because nobody will come to Ghana if Ghana is not a safe place to fly in.

Madam Speaker, it is also important to notice that the oil find in the Western Region poses a lot of enormous responsibilities on us to improve on our airport facilities. Madam Speaker, not only in the aviation sector; all the infrastructure support systems that we have in this country have to be improved but especially in the aviation because the oil find would induce the demand for air travel.

A lot of investors would come into the country, and a lot of people who will be involved in the oil exploration; most of them will come from outside and they will use our airports. And it is even more important as the oil find is in the Western Region.
rose
Madam Speaker 6:40 p.m.
Hon Member, he
says “you know” -- Is that what you are objecting?
Mr. Baidoe-Ansah 6:40 p.m.
Madam Speaker,
I come from a village known as Asakae, I do not come from Takoradi. Madam Speaker, what I also want to tell my Hon Brother is that when he used to be the
Deputy Minister for Transportation, the airport that he saw was different from the airport that he is going to see now. The Takoradi Airport now is an airport where international airlines land; it is different from the airport that he is talking about.
Madam Speaker, I think my Hon Brother would have to take a tour of the place with me, including the Hon Minister for Finance, for him to really acclimatize, to appreciate what the last Government did. What he is talking about is not the situation now.
Madam Speaker, at the moment, as we speak now, the last Parliament - [Interruption] -- He was not in Parliament, it is unfortunate. He was not in Parliament at that time. The last Parliament passed a Bill on a loan agreement, over $100 million to make sure that the Takoradi Airport becomes an airport for the oil industry. So this is not what we are talking about now.
Madam Speaker 6:40 p.m.
I gave the Hon
Member the floor just to -- [Inter- ruption.] Yes, because you mentioned that he knows.
Mr. Hammah 6:40 p.m.
Madam Speaker, it
looks like my Hon Colleague, having just left the office of the Ministry of Aviation, has a feeling that he is still on top of what is happening. I do not remember the last time he went to Takoradi Airport. Madam Speaker, because, as I speak to you now, we are considering improving
the facilities at the Takoradi Airport; the air navigation facilities are non-existent. Currently, we are even thinking of putting up a new terminal because we are having difficulty trying to convince the military, because it is still a military airport; it is not a civil airport. So we are still talking to the military, at least, so that we can use the facilities - the terminal.
But in view of the fact that we expect that the oil find would induce the demand for more air travel, currently, they believe that they can give us the opportunity to build even another terminal opposite the existing one so that they can continue to use it.
Madam Speaker, I am saying this because as I said, the oil find in the Western Region, he knows, puts a lot of challenge on us to improve on our airport facility. Otherwise, we will only be paying lip-service to the idea that we want to become an aviation hub. It takes more than paying lip-service to become a hub. You have to move beyond that in making sure that you put in place the necessary infrastructure and services to support that strategy.
Madam Speaker, it is in the light of this because the Fantes say 6:40 p.m.
“Nkwankyen adze yee few, ye dze sika na eye.” And it is in the light of this that I, the Minister for Transport fully endorse and support the motion being moved by my Hon Colleague, the Hon Minister for Finance -- [Hear! Hear!] Because obviously almost 40 per cent of that amount of money will be given to the Ghana Civil Aviation Authority and the Ghana Airport Company Limited to improve on the physical facilities at the airports -- both at the international airport and at the regional airports, and then again on air navigational services. Because as we speak now, we intend to reclaim our position on the Federation
Aviation Authority (FAA) category 1, and it is important that we improve on safety oversight responsibilities.
Madam Speaker, all these require a lot of money; otherwise, we only say that we want to become an aviation hub and somebody becomes an aviation destination.
Madam Speaker, on this note, I

Question put and motion agreed to.

The Airport Tax (Amendment) Bill was accordingly read a Second time.

Suspension of Standing Order 128 (1)

Minister for Finance (Dr. Kwabena

Duffuor): Madam Speaker, I beg to move, that notwithstanding the provisions of Standing Order 128 (1) which require that when a Bill has been read a Second time it shall pass through a Consideration Stage which shall not be taken until at least forty-eight hours have elapsed, the Consideration Stage of the Airport Tax (Amendment) Bill, 2009 may be taken today.

Mr. James Klutse Avedzi (NDC --

Ketu North): Madam Speaker, I beg to second the motion.

Question put and motion agreed to.

Resolved accordingly.
BILLS -- CONSIDERATION 6:50 p.m.
STAGE 6:50 p.m.
Mr. Joe Baidoe-Ansah 6:50 p.m.
Thank you,
Madam Speaker. Madam Speaker, I have a problem with it. My problem is, what is being discussed here before us?
Madam Speaker 6:50 p.m.
He is adding a new clause 2, which he has read to repeal a former Act.
Mr. Baidoe-Ansah 6:50 p.m.
Madam Speaker,
what is happening here is that, we have a situation where I advocated for something; I said one hundred per cent should go into the improvement of the airport and what is before us is quite misleading, I do not understand it.
Madam Speaker 6:50 p.m.
If you want to
move for an amendment, you do so and we would see if it is accepted.
Mr. Akologu 6:50 p.m.
Madam Speaker, the Hon Member says he is not clear about something. The issue is that there is an existing law which according to the Chairman of the Committee and the Committee, is of no relevance now. So in
passing this Bill into an Act that one does not apply to this thing again. So we are just repealing it consequentially.
The other thing that he is worried about, Madam Speaker, on page 3 of the Report under “Observations”, the last paragraph, and with your permissions, I quote:
“The Committee however, agreed that the raising of tax be approved so that at a later date, the Minister comes to the House to explain how the proceeds are being used.”
So that will take care of his concern. We are dealing with the problem now and when the law is in operation, how the proceeds would be used, the Minister will come here and we will look at it. So I do not think there is any difficulty on it.
Madam Speaker 6:50 p.m.
Hon Member,
what we are doing at this stage is that the Committee has proposed that we add clause 2 which I will read in a minute.
The amendment proposes that we add a new clause as follows:
“The Airport Tax (Amendment) Act, 2001, (Act 596) is repealed”.
It did not repeal the former Act. This new Act did not repeal the former Act and it has been proposed that we add it as clause 2. So that is the reading of it that the Airport Tax (Amendment) Act, 2001, Act 596 is repealed.
I will put the Question on that and if you have any amendments yourself, you can after this suggest it. Do you now see where we have reached?
Mr. Baidoe-Ansah 6:50 p.m.
Madam Speaker, my problem is that there is a proposal to repeal the former Act and what we have before us now is repealing it. What we have before us now we do not have the new Bill. My problem is that if we do not have the new Bill, it would be difficult for
some of us to propose amendments to the new Bill. I do not know whether from here we could go and look at the new Bill because if you repeal --
Madam Speaker 6:50 p.m.
You can make -
Mr. Baidoe-Ansah 6:50 p.m.
We do not have it.
Madam Speaker 6:50 p.m.
You do not have
it? Turn to the back of the Report of the Finance Committee, it reads “The Airport Tax (Amendment) Bill, 2009, the Act has been printed there at the back of it. Is it not in your copy?
Mr. Baidoe-Ansah 6:50 p.m.
It is not.
Madam Speaker 6:50 p.m.
Has somebody got
it to show?
Dr. Richard W. Anane 7 p.m.
Madam
Speaker, I do not have it but I think what he is trying to refer to is that he is assuming it should be a Bill, an Act or a document to be looked at so we would be looking at the clauses. But the reference is about the repeal of the Act 596.
Madam Speaker, I just wanted to draw
attention to what he is saying because it is recognized that, at the end of the day, when this Bill is approved, there is also the existing law that about 60 per cent of the amount that is accrued should go to the Consolidated Fund and 40 per cent to the Ghana Civil Aviation Authority (GCAA).
Madam Speaker, my little problem is that, currently we have the Ghana Civil Aviation Act, which so to speak, dichotomizes the regulatory functions of the Ghana Civil Aviation Authority and the development function of an Airport Company. It is the Airport Company that is tasked to develop the airport. I do appreciate that as a regulator, the Ghana Civil Aviation Authority may also have to do a little, with respect to financing
some of the facilities that they use. But in the main, it is the Airport Company that is to take care of the development of our airports.

So if we are going to see to the division of this money between the Consolidated Fund and the Ghana Civil Aviation Authority, which amount I think currently is about -- maybe, the passenger troupe at the airport, may be just under a million and I want to believe that about 25 per cent may be from the sub-region but about 75 per cent may be from outside the sub- region that are not going to be affected by this.

And if we are going to look at it from that standpoint, and all this money is going to go to the Ghana Civil Aviation Authority, then the Airport Company, which is supposed to be the developer of our airports may be short-changed. That is what I wanted to draw attention to so that in our use of the money we could take care of that and make sure that the Ghana Civil Aviation Authority, yes, may be given some amount to do what little things that they do, but the Airport company is given some chunk of the money to continue with the development of our airports.

Thank you Madam Speaker.
Madam Speaker 7 p.m.
Hon Dr. Anane, right now we have before us a Bill and if you want to suggest amendments yourself about what you have spoken about, you could suggest it and then we vote on it. That is how it is done; and if the Ayes have it or if it is rejected, we leave it. But that we are going through the Bill now at this stage and what you are suggesting, if maybe we finish this subclause (2), which we have started, we have not come to consider the whole Bill then you can come in and make a suggestion which will be put on the floor
Mr. P. W. Pepera 7 p.m.
Madam Speaker,
thank you very much for allowing me the chance to comment on this Bill.
In the clause, it says West Africa. When we are making laws, I think we have got to be very precise. As far as I know, West Africa has not been defined. It is a geographical area -- fine. But I think we have to define it in terms of the political boundaries. I think it would be more precise to mention ECOWAS countries. Because if you say West Africa, then it could be confusing as to, for instance, Cape Verde -- [Interruptions] -- When we say West Africa it is geography -- Is Mauritania for instance, part of West Africa?
So to be more precise, I would propose that we actually mention something like ECOWAS member States or something like that.
Thank you, Madam Speaker.
Madam Speaker 7 p.m.
Hon Pepera, I think
subclause 1 (c ) captures it. You were referring to clause 1 (b) -- West Africa and (c ) says to a destination outside. So it covers all other countries. Is that not the point you were making?
Mr. Pepera 7 p.m.
Madam Speaker, whereas
the Bill which is being repealed is a general US$50 wherever you are going, because this one specifically refers to within and outside West Africa, we have to define what we mean by West Africa, from a legal point of view. From a legal point of view there is no actual legal definition of West Africa - there is ECOWAS and non- ECOWAS. But there is no general definition of what is West Africa. For instance, I asked a question, is Mauritania part of West Africa? Yes, or no? Where
does West Africa end for example?
Madam Speaker 7 p.m.
Hon Pepera, I think
I had already put the Question on clause 1 and that is why I moved to clause 2. So that is what we are doing at this stage. I think when we get to the Third Reading, if you want to take us back, you can do so. But right now, I have finished, put the Question on clause 1 which has been adopted as part of the Bill. The introduction of clause 2 is what we are doing now and I had already read the amendment that was proposed. So the next stage is putting the Question.
Mr. Baidoe-Ansah 7 p.m.
Mr. Speaker, I
think the problem we are having here is that we do not have the copies of the Bill -- [Interruptions] -- That is why I came in -- because you have not put the Question -- [Interruptions.] Madam Speaker, my issue is on the US$50 dollars for West Africa.
Madam Speaker 7 p.m.
I had put the Question.
Mr. Baidoe-Ansah 7 p.m.
Madam Speaker,
why I came in here --
Madam Speaker 7 p.m.
I had put the
Question on clause 1. It has been decided already and the ‘Ayes' had it. You can come back when we get to the Third Reading and take us back to this Consideration Stage, that is what I am saying.
Mr. Baidoe-Ansah 7 p.m.
Thank you, Madam Speaker.
Madam Speaker 7 p.m.
Hon Members, I
will put the Question again. I had already read the new amendment to you.
Question put and amendment agreed to
New clause ordered to stand part of the Bill.
Madam Speaker 7 p.m.
Hon Members, the Long Title.
Has anybody got something to say at this stage?
rose
Madam Speaker 7 p.m.
Hon Member, are
you standing on the Long Title? We have reached the Long Title stage.
Mr. Baidoe-Ansah 7 p.m.
Madam Speaker,
my problem --
Madam Speaker 7 p.m.
Your problem will
come when we get to the Third Reading.
Mr. Baidoe-Ansah 7 p.m.
Very well, Madam
Speaker.
Madam Speaker 7:10 p.m.
Because you
missed the boat when I read clause 1.
Long Title ordered to stand part of the Bill.

Suspension of Standing Order 131(1)

Minister for Finance (Dr. K.

Duffour): Madam Speaker, I beg to move, that notwithstanding the provisions of Standing Order 131(1) which require that when a Bill has passed through the Consideration Stage, the Third Reading thereof shall not be taken until at least twenty-four hours have elapsed, the motion for the Third Reading of the Airport Tax (Amendment) Bill, 2009 may be moved today.

Alhaji Sumani Abukari (NDC --

Tamale North): Madam Speaker, I beg to second the motion.
Dr. Richard Anane 7:10 p.m.
Madam Speaker,
I am just moving that in spite of the motion moved by the Hon Minister that the House be taken through a second Consideration
Stage -- [Interruption] -- that the House be taken through the Consideration Stage once again --
Madam Speaker 7:10 p.m.
It has been moved,
so we will put the Question and see whether we adopt it or not.
Question put and motion agreed to.
Resolved accordingly.
Dr. Richard Anane 7:10 p.m.
Madam Speaker, I crave the indulgence of Madam Speaker to let us move back to the Consideration Stage once again -- [Interruption.] A second Consideration stage.
Mr. Opare-Ansah 7:10 p.m.
I rise to second the motion.
Madam Speaker 7:10 p.m.
It has been moved
that the Airport Tax (Amendment) Bill do pass through a Second Consideration Stage in respect of clause (1), that is what is moved by Dr. Anane. So I will put the Question.
Alhaji Abukari 7:10 p.m.
Madam Speaker, I wish to suggest that we listen to my Hon Friend and Brother Hon Dr. Anane, maybe, he has something very important in his amendment so that -- [Interruptions.]
Madam Speaker 7:10 p.m.
I think Dr. Anane is very grateful to you but we have already put it to the vote and he lost -- [Interruption.] Shall I move on to motion 13? [Pause.]
I put the Question on Hon Dr. Anane's motion, and the Noes had it. The question is that his motion was disagreed to in which case I will move on to the Third Reading.
BILLS -- THIRD READING 7:10 p.m.
Mr. Akologu 7:10 p.m.
Madam Speaker, I
want to take this opportunity to thank my Hon Colleagues, especially those on the opposite side for their cooperation in this matter.
And I think that what the House has done this evening is victory for Ghana and is victory for democracy - [Hear! Hear!] - And we will look forward to such cooperation in the future. And that the consensus building is very, very important for this nation's development.
Madam Speaker, with these few words, I will return to you to apply the rules accordingly.
ADJOuRNMENT
THE HOuSE WAS ADJOuRNED
AT 7.23 P.M. TILL 12TH MARCH,
2009 AT 10 O'CLOCk.