Debates of 9 Jun 2009

MADAM SPEAKER
PRAYERS 10:25 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:25 a.m.
Madam Speaker 10:25 a.m.
Hon Members, Correction of Votes and Proceedings dated Friday, 5th June, 2009. Pages 1-- 11? [Pause]
In the absence of any corrections, the Votes and Proceedings of Friday, 5th June, 2009 are adopted as the true record of proceedings.

Hon Members, in the absence of any

corrections, the Official Report of Friday, 5th June, 2009 is hereby adopted as the true record of proceedings.

We move to item 3 on the Order Paper - Questions. And there is a Question standing in the name of Hon Nana Yaw Ofori-Kuragu, Member of Parliament for Bosome-Freho. Hon Member, can you ask your Question?
rose
Madam Speaker 10:25 a.m.
Yes, Hon Deputy Majority Leader?
Mr. Akologu 10:25 a.m.
Madam Speaker, the Hon Minister for Health is on an
ORAL ANSWERS TO QUESTIONS 10:25 a.m.
MINISTRY OF HEALTH 10:25 a.m.
rose
Madam Speaker 10:25 a.m.
Yes, Hon Minority Leader?
Mr. Kyei-Mensah-Bonsu 10:35 a.m.
Madam Speaker, a very humble request was made through you by the Deputy Majority Leader, subject to the indulgence of the House, and we were all ears, we wanted to hear your direction. Unfortunately, we do not appear to have had any direction from your goodself as from the Chair. So we are caught in the lurch, not knowing how to proceed; may we, Madam Speaker, with respect to the Chair, hear from you what your indulgence is in this matter?
Madam Speaker 10:35 a.m.
About the Hon
Deputy Minister standing in for the Minister for Health?
Mr. Kyei-Mensah-Bonsu 10:35 a.m.
The Hon Deputy Minister standing in for the substantive Minister.
Madam Speaker 10:35 a.m.
Yes, I think the last time we ruled on this matter; it was that it would be permitted with permission
from the Speaker and no doubt from the House. I did not have any problem with that unless you do, sir.
Mr. Kyei-Mensah-Bonsu 10:35 a.m.
Madam Speaker, I just wanted a clear direction from you because we did not hear any; that is why I sought to know. Now that we have heard from you, I believe the House will now be persuaded to allow the Hon Deputy Minister to answer the Question. I believe we are pleased with our former distinguished Colleague, not yet expired. So we would allow him to answer the Question.
Madam Speaker 10:35 a.m.
I think even we are blessed that we have the Hon Deputy Minister for Health to do it for us.
Mr. Hackman Owusu-Agyemang 10:35 a.m.
Madam Speaker, some clarification. My understanding of your ruling last time was that it was on a case by case basis. Or is it a blanket approval? Because you did say that -- Last time we discussed it, but I think what we are seeking to do is on a case by case basis. So we need to clarify that and then we can move forward.
I think it should be on a case by case basis because sometimes one would have evidenced that some Ministers -- and it happened in our Government -- did not want to come to Parliament and the whole essence is to make sure that Hon Ministers, when they are available, come to Parliament. And so it must be on a case by case basis, it cannot be a blanket -- with the utmost of respect to your ruling.
So I want to know whether it is on a case by case basis, because some of my Hon Colleagues did not want to come to Parliament when we were on the other side and that is why I want to know whether my understanding is in the right direction or not.
Madam Speaker 10:35 a.m.
Yes, the mere fact that permission sought -- It is on a case by
case basis -- because if good reason is not given, the permission will not be granted. I think it is on a case by case basis.
Mr. Andrews Adjei-Yeboah 10:35 a.m.
Madam Speaker, I heard you say that we are blessed to have the Hon Deputy Minister here and I want to know whether he is an ordained Rev'd Minister with a cup full of blessings to come and bless us or his presence will invoke some blessing to this House.
Madam Speaker 10:35 a.m.
Hon Member, by that I meant that since he is the Deputy Minister for Health and the Question should have gone to his Minister, he would be in a better position to answer supplementary questions. I think that is why I said we are blessed. But I think he is blessed by just looking at him.
Mr. Haruna Iddrisu 10:35 a.m.
Madam Speaker, the Hon Member for New Juaben North, Mr. Hackman Owusu-Agyemang, in his submission made reference to Ministers as part of their Government who were unwilling to appear before this Honourable House. Madam Speaker, unless he has evidence to support it, I do not see the basis of such a statement. I am aware that -- [Interruption] -- and the Hansard is there -- almost every other Minister had the occasion to appear before this Honourable House.
So if he can provide this House with evidence of the run-away Ministers -- [Laughter] -- who were not willing to be subjected to parliamentary scrutiny, he should say so. If he is unable to do that, then he may wish to withdraw this particular statement.
Mr. Owusu-Agyemang 10:35 a.m.
Madam Speaker, my little nephew does have a point because -- But if he recollects, and he was part of the last Meeting that we always had situations where we had a lot of difficulties with Ministers who maybe were not -- [Interruptions.] Madam
Dr. A. A. Osei 10:35 a.m.
Madam Speaker, he referred to the Hon Member for Tamale South as “my little nephew”. This House, we have our own rules. He cannot refer to anybody by his or her name -- [Inter- ruption.]
Mr. Owusu-Agyemang 10:35 a.m.
I am not yielding. He should sit down. [Inter- ruptions.]
Dr. Osei 10:35 a.m.
Point of order. He is in violation of the House's rules; he said “my little nephew”. Nobody here is called “my little nephew”; he is an Hon Member from Tamale -- [Laughter.] So he should say so; and he is a Minister.
Madam Speaker 10:35 a.m.
Hon Member, nobody is little here -- [Laughter.]
Mr. Owusu-Agyemang 10:35 a.m.
Madam Speaker, this is not the first time I have referred to Hon Colleagues -- [Interruptions.] I believe that the word “little” in this instance does not belittle his constituency or his Ministerial appointment. He happens to be an adopted nephew that this -- [Laughter] --The former Hon Minister cannot change that one. The Hon Member for Old Tafo, Dr. Osei cannot change the fact that there is a relationship between the two of us; that is a fact --[Hear! Hear!] He cannot change that one. So he should not try. [Laughter.]
Madam Speaker 10:35 a.m.
I will hear the Hon Minister.
Mr. Owusu-Agyemang 10:35 a.m.
Madam Speaker, on a substantive issue -- [Interruption.]
Alhaj i Mohammed-Mubarak Muntaka: Madam Speaker, I think there is so much confusion at the Minority side. They need to be called to order because there seems to be too many comments
Mr. Owusu-Agyemang 10:35 a.m.
Madam
Speaker, sincerely, I do not think that we are discussing Ministry of Youth and Sports and its problems in this House. [Laughter.] We are not. The confusion is in his camp and not our camp. Madam Speaker, that is the beauty of parlia- mentary democracy, when we can agree with our own selves. So I want the Hon Minister to understand, if he is fairly new here, that this is it; it was my privilege, if it was information, to either yield or not to yield. I think he needs to have some tutorials which we will give in due course, especially on how to run a Ministry. [Interruptions.]
Madam Speaker 10:35 a.m.
Order! Order!
Mr. Owusu-Agyemang 10:35 a.m.
Madam
Speaker, I believe that the point of order that was raised has been adequately answered. I did not intend to belittle the distinguished Hon Minister for Communications. Sometimes we need a bit of relief in this House and that is what I was referring to; just as I could have also referred to the Deputy Minister, Dr. Kunbuor as my nephew because he calls me his uncle. This is the situation in this House.
Madam Speaker 10:35 a.m.
Hon Hackman, we should not push age here; no age here; we are all Honourables. One is Rt. Hon and all of you are Honourables. [Hear! Hear!]
Mr. Kyei-Mensah-Bonsu 10:45 a.m.
Madam Speaker, I believe our Orders are very clear and so waxing lyrical in these matters do not help us much. Madam Speaker, Standing Order 86 (3) is very unambiguous.
It states without equivocation that Ministers shall be referred to by their Ministerial titles. Ministers shall be referred to by their Ministerial titles and whether or not they are blood relations, or relations are courted or adopted or coerced, Madam Speaker, a Minister is a Minister and shall so be referred to and that is as per Standing Order 86 (3). And so whether he is a senior nephew, or a junior nephew or a little nephew, a son, or a daughter, Madam Speaker, it will have no relevance in this House.
Thank you very much.
Madam Speaker 10:45 a.m.
Yes, I hope in future Ministers should be referred to by their Ministerial titles.
Mr. Akologu 10:45 a.m.
Madam Speaker, I just want to urge my Hon Colleague, Mr. Hackman Owusu-Agyemang to take -- [Interruption] -- Hon Member of Parliament for New Juaben North to just take advantage of his position, being so close to the former Majority Leader and Minister for -- who is very conversant with the rules of this House on how we should identify each other here so that he would just accept that he has made a mistake and then go on. He should take lessons from him.
Thank you.
Mr. Owusu-Agyemang 10:45 a.m.
Madam Speaker, I would like to assure the Deputy
Majority Leader that symbiosis is not taking place here, if he understands what that means. Being close to somebody does not mean that - symbiosis is not taking place in this place. So I just want him to understand that. We are in control through this. My attention has been drawn to the fact that this House, despite all the fun that we have must also sometimes - It is well taken. But I believe that it is in good spirit that I do that. But I can assure him that there is no symbiosis here. I can assure him that.
Madam Speaker 10:45 a.m.
The Question has been asked. Has it?
Nana Yaw Ofori-Kuragu 10:45 a.m.
Madam Speaker, I will ask the Question again.
I rise to ask the Hon Minister when a district hospital would be provided for the Bosome-Freho District.
Deputy Minister for Health (Dr. Benjamin Kunbuor) (on behalf of the
Minister for Health) 10:45 a.m.
Madam Speaker, Bosome-Freho District is one of the newly established districts in the Ashanti Region that has been earmarked to have a new district hospital, which would be sited at Asiwa, the district capital.
In all, six (6) district hospitals have been planned for the region and Bosome- Freho District is the second in order of priority after Adansi North, that is Fomena.
Fomena is being developed as a training site for middle level health personnel. Currently, it has the requisite infrastructure to train middle level personnel for the health service and it is envisaged that the provision of a district hospital at Fomena will complement the training.
The provision of these hospitals is, however, subject to the availability of
funds and the plan would be implemented as and when funds are provided by the Government.
Nana Ofori-Kuragu 10:45 a.m.
Madam Speaker, the emphasis on the Question was “when” and I would like a precise Answer as to when exactly this is going to happen.
Last week I was at the constituency ferrying sick people and dead bodies to mortuaries 80 kilometres away from Asiwa. I would therefore like the Hon Deputy Minister to respond to this Question and also fix the three health centres that are not operational in the constituency.
Madam Speaker 10:45 a.m.
Hon Member, your question again. Your supplementary question, what is it?
Nana Ofori-Kuragu 10:45 a.m.
Madam Speaker, I would like to know when exactly this project, that is, the district hospital is going to commence at Asiwa and when the three health centres that have been shut down are going to be repaired and reopened.
Dr. Kunbuor 10:45 a.m.
Madam Speaker, the idea of having a district hospital is an automatic one when a district is created and we know as at now that there is rehabilitation that is taking place in relation to the Bosome Health Post and it is being upgraded to the status of a district hospital. So work, indeed, has commenced and we believe that when additional funds are made available, we can characterize it as a district hospital.
Nana Ofori-Kuragu 10:45 a.m.
Madam
Speaker, work has not commenced at the health post at Asiwa. I would rather ask the Hon Deputy Minister to check his facts and report back to the House.
Madam Speaker 10:45 a.m.
It is not a question but it will pass.
Any other questions?
Mr. Kwame Osei-Prempeh 10:45 a.m.
Madam Speaker, since the Hon Deputy Minister has found his way from Asiwa to Fomena, let me ask him, what facilities are available for Community Health Nurses who are being trained at Fomena now in the absence of a district hospital at Fomena?
Dr. Kunbuor 10:45 a.m.
Madam Speaker, when health personnel are trained, normally they will be put into the health delivery system and whatever facilities exist there, they will make use of them. But we are particularly clear that the Community Health-Based Planning Services (CHPS) compounds, that is a priority of Govern- ment, are being developed and intensified and most of these Community Health Nurses will become what we know as community health workers and they will be administering the CHPS compounds.
The CHPS compounds entail a number of activities which if the Hon Member is interested, we can make a Statement on, on the floor of the House.
Ms. Beatrice B. Boateng 10:45 a.m.
Madam Speaker, I just want us to refresh our minds that Koforidua, my constituency has a regional hospital but taking the towns and villages around, we see it to be choked as at now. I just want to find out what provision is being made for the regional hospital which caters for the entire region.
Dr. Kunbuor 10:45 a.m.
Madam Speaker, this is a question that will need some notice. This is because the Koforidua Regional Hospital is a very complex issue and we will need notice to respond to the Hon Member.
Mr. I. K. Asiamah 10:45 a.m.
Madam Speaker,
I believe that, at least, this House should be taken more serious. Madam Speaker, the issue of “as soon as possible”, “it is in the pipeline”, “it is ongoing” - these are not Answers this House should demand from Hon Ministers. We should demand exactness, concrete, measurable time lines. This issue of “as soon possible”, “it is in the pipeline”, “it is on-going”, Madam Speaker -- this House should not accept this kind of Answers from Hon Ministers who are supposed to be in charge of our economy.
The question is that I am not satisfied with the response to the Question and that he should come forward and answer the Question again.
Madam Speaker 10:45 a.m.
Hon Member, ask a question.
Mr. D. B. A. Nitiwul 10:45 a.m.
Madam Speaker,
as an appendix to the Question my Hon Friend asked, when will the President fulfil the promise of providing hospitals for every district, particularly the new ones?
Dr. Kunbuor 10:55 a.m.
Madam Speaker, I
guess this is yet another question that we need notice of.
Dr. Osei 10:55 a.m.
Madam Speaker, in
answering the Question, the Hon Deputy
Minister said 10:55 a.m.
“Subject to the availability of funds and when funds are provided by Government . . .”
Can the Hon Deputy Minister tell us whether it is this year or next year since in this year's Budget, we do not know about it? [Interruption.] It appears that since they have not come with the supple-
Dr. Kunbuor 10:55 a.m.
Madam Speaker, if my
memory serves me right, the Hon Finance and Economic Planning Minister has served notice in the presentation of the 2009 Budget that a supplementary budget, indeed, will be brought to this House for approval and that actually explains the shortfalls in the Appropriations that we had in the main Budget.
But for sure, there are a number of facilities available to the health sector that we use for these types of interventions. Some of them are donor related, so it is not only tied to the Government of Ghana component. And I am aware that there are a number of initiatives that are in place; some of them were already in the pipeline for implementation of programmes of this nature.
Thank you.
Dr. Osei 10:55 a.m.
Madam Speaker, as a former
Chairman of the Finance Committee, I am sure the Hon Deputy Minister is fully aware that even donor funds must come before this House for us to approve them. And all I am saying is that as of now and looking in the Budget, I have not identified any donor or Government of Ghana sources for this year.
So is he saying that as of now we shall assume that it is next year? Because the Finance and Economic Planning Minister did not say he had requested to come with the supplementary review and if you check with the Hansard, he had not catego-rically said that he would come with a supplementary budget, at least, as far as the Hansard is concerned. So is he saying that now the Minister for Finance and Economic Planning has categorically
declared that he is coming back to this House with the supplementary budget?
Dr. Kunbuor 10:55 a.m.
Madam Speaker, the
former Minister of State at the Ministry of Finance and Economic Planning is quite aware that a number of initiatives were initiated by the previous Government in which all district hospitals were automatically supposed to be rehabilitated and then upgraded. That policy has not changed in any fundamental way; if it did not find expression in the Budget, it is because it would have been ongoing. That is why when the Hon Member indicated that no work had actually commenced, I can assure him that the upgrading had actually commenced some years back.
Mr. Isaac Osei 10:55 a.m.
Madam Speaker, since
the Hon Deputy Minister is unable to give us specific times when the district hospital at Asesewa will commence, would he perhaps use contingent funds to ensure the rehabilitation of the three health centres the Hon Member asked about? I believe these are the health centres at Dunkwa, Nsuta and Tebeso - the three health centres so that at least the people in that district will have access to some facilities.
Dr. Kunbuor 10:55 a.m.
Madam Speaker, I
guess this is quite an idea that we will give consideration to.
Dr. Matthew O. Prempeh 10:55 a.m.
Madam
Speaker, could the Hon Deputy Minister for Health tell me and my constituents and Asawase constituents if these six district hospitals in the Ashanti Region include the Manhyia Urban Health Centre or Manhyia Polyclinic; and if not, why not because it is in this year's budget?
Dr. Kunbuor 10:55 a.m.
Madam Speaker, the
Answer referred to six new district
Mr. Kyei-Mensah-Bonsu 10:55 a.m.
Madam
Speaker, the last paragraph of the
Minister's Answer 10:55 a.m.
“The provision of these hospitals is, however, subject to the availability of funds and the plan would be implemented as and when funds are provided by the Government.”
Madam Speaker, the Deputy Minister
holding fort for the Hon Minister knows that this Answer is typically and characteristically an Edward Salia's response. [Laughter.] Everything -- “subject to the availability of funds”.
Madam Speaker 10:55 a.m.
Is the question
coming?
Mr. Kyei-Mensah-Bonsu 10:55 a.m.
Madam
Speaker, the question is, can the Hon Deputy Minister give a firm indication -- because he is not speaking about if funds are available -- Can he give a firm indication as to when the additional funds shall be available to commence the project? When?
Dr. Kunbuor 10:55 a.m.
Madam Speaker, some
of these phrases are used just for the abundance of caution. I guess it is safer not to give a very specific period on these matters than to attempt to mislead this Honourable House.
We know that one of the scarcest resources we have, has to do with funds in an economy of this nature. And so, we will need to be very candid with this House by
giving a period that this will be done. And this period, at the end of the day, is when a contingent or when funds are available and that is sufficiently a relevant time frame.
Mr. Kyei-Mensah-Bonsu 10:55 a.m.
Madam
Speaker, the Hon Deputy Minister as the immediate past Chairman of the Finance Committee knows that our Standing Orders provide -- Order 170:
“Whenever the Committee on Finance is satisfied that there has arisen an urgent or unforeseen need for expenditure for which no other provision exists it shall authorize advances from the Contingency Fund to meet the need and report to Parliament.”
Madam Speaker, he admits that the
Bosome-Freho District is the second in order of priority after Adansi North, Fomena for the provision of this facility. And given the priority attached to the project, would he state to this House exactly when -- because the time frame is unlimited and in that case, it amounts to nothing? Would he tell us a reasonable time frame -- and I believe the Hon Deputy Majority Leader is not a good coach in this. Would he respond to this - when the reasonable time frame is?
Madam Speaker 10:55 a.m.
Let us try again for
the last time.
Dr. Kunbuor 11:05 a.m.
Madam Speaker, the
question seems to be two. I understood the Hon Minority Leader to be asking whether funds can be taken out of the Contingency Fund because of the importance. I would like to draw my Hon Colleague's attention to the fact which the former Minister of State at the Ministry of Finance and Economic Planning can attest to, that
Mr. E .T. Mensah 11:05 a.m.
Madam Speaker,
I just want to correct this for the record. When the Hon Minority Leader was addressing the Hon Deputy Minister, he indicated that the Hon Deputy Minister was the immediate past Chairman of the Finance Committee, that is not correct. He was the immediate past Ranking Member of the Finance Committee, for the record.
Madam Speaker, thank you.
Prof. S. K. Amoako 11:05 a.m.
Madam Speaker,
I believe the Hon Member for Bosome- Freho's Question is geared towards improving health services for his district. May I know from the Hon Deputy Minister, in order to improve health services generally in the country, when will ambulances be provided for district hospitals?
Dr. Kunbuor 11:05 a.m.
Madam Speaker, thank
you. I will need notice for this particular question.
Papa Owusu-Ankomah 11:05 a.m.
Madam
Speaker, I refer the Hon Deputy Minister to the last paragraph, and with your
permission, I read:
“The provision of these hospitals is, however, subject to the availability of funds and the plan would be implemented as and when funds are provided by the Government.”
Madam Speaker, what I would want to know from the Hon Deputy Minister is whether in the programme of the Ministry of Health under the NDC Administration, construction of these hospitals is within the short, medium or long-term - short, meaning, within a year; medium, between two and three years; long-term, beyond four years.
Dr. Kunbuor 11:05 a.m.
Madam Speaker, we still
have even tertiary level teaching hospitals that are still undergoing the process of development. Yes, the period can be immediate, depending on the require- ments; it can be medium, depending on the level of technology; it can be long-run, depending on the policy direction for the future. So both particular time frames are relevant.
Madam Speaker, what I want to register is that the Question requested us to indicate when a district hospital would be provided. By a Ministerial directive, we can provide for a hospital; but a hospital takes more than just a name, there are a lot of things that need to be put in place to really entitle that hospital to be categorized as a district hospital.
Mrs. Catherine A. Afeku 11:05 a.m.
Madam
Speaker, I would like to ask the Hon Deputy Minister, since he is having trouble telling us when funds will be available, would he consider mobile clinics because according to the Hon Member for Bosome-Freho, the hospital or the clinic in question is 80 kilometres from where he was picking sick people to
Dr. Kunbuor 11:05 a.m.
Madam Speaker, with
the greatest respect to the Hon Member, the Minister has no difficulty indicating -- The commitment to the project is on, and immediately funds are available, the project will be implemented. The Question requested specifically for the provision of a district hospital, so if she wants any information on policy direction on mobile clinics, we will need notice of that, and we will accordingly respond.
Dr. Osei 11:05 a.m.
Madam Speaker, in his
Answer, the Hon Deputy Minister, in his last line indicates that when funds are provided by the Government of Ghana. Is he saying that if donor funds -- [Interruption] -- Is he saying that if the funds do not come from Government of Ghana, they will not be willing to implement the plan? Or did he mean to say government funds and other sources?
Dr. Kunbuor 11:05 a.m.
Madam Speaker, thank
you. Perhaps, I should have used the word “public funds”, and I am always sure that donor funds and Government of Ghana funds are public funds.
Madam Speaker 11:05 a.m.
Thank you, Hon Deputy Minister for Health for coming to answer our Questions.
We will move to the Commencement
of Public Business - Laying of Papers -
PAPERS 11:05 a.m.
Madam Speaker 11:05 a.m.
Now, (5) (b) - Minister for Lands and Natural Resources.
By the Minister for Lands and Natural Resources --
Annual Report of the Office of the Administrator of Stool Lands for the year ended 31st December 2005.
Referred to the Committee on Lands and
Forestry.
Madam Speaker 11:05 a.m.
(b) (ii) Minister for Lands and Natural Resources.
By the Minister for Lands and Natural Resources --
Annual Report of the Office of the Administrator of Stool Lands for the year ended 31st December 2006.
Referred to the Committee on Lands and Forestry.
By the Minister for Lands and Forestry --
Annual Report of the Forestry Commission for the year 2006.
Referred to the Committee on Lands and Forestry.
By the Deputy Majority Leader (Mr. John Tia Akologu)p (on behalf of the Leader of the House) --
Report of the Auditor-General on the Public Accounts of Ghana Pre- University Educational Institutions for the Four-Year Period ending 31st December 2004.
Referred to the Public Accounts Committee.
By the Deputy Majority Leader (Mr. John Tia Akologu) (on behalf of the Majority Leader) --
Performance Audit Report of the Auditor-General on Business Registration in Ghana.
Referred to the Public Accounts Committee.
By the Deputy Majority Leader (Mr. John Tia Akologu) (on behalf of the Majority

Leader) --

Report of the Auditor-General on the Public Accounts of Ghana (Public Boards, Corporations and Other Statutory Institutions) for the period ended 31st December 2004.

Referred to the Public Accounts Committee.

By the Deputy Majority Leader (Mr. John Tia Akologu) (on behalf of the Majority Leader) --

Performance Audit Report of the Auditor-General on the Accountabi- lity Arrangements in Solid Waste Management.

Referred to Public Accounts Committee.

By the Deputy Majority Leader (Mr. John Tia Akologu) (on behalf of the Leader of the House)

Performance Audit Report of the Auditor-General on the Manage- ment of Human Resources for the Effective Primary Health Care Delivery by the Ghana Health Service.

Referred to the Public Accounts Committee.

By the Deputy Majority Leader (Mr. John Tia Akologu) (on behalf of the Leader of the House)

Performance Audit Report of the Auditor-General on the Public Servants Housing Loan Scheme.

Referred to the Public Accounts Committee.
Madam Speaker 11:05 a.m.
Now we move to - item 6 -- motions - Chairman of the
Committee?
MOTIONS 11:05 a.m.
Chairman of the Committee (Mr. James Klutse Avedzi) 11:05 a.m.
Madam Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Waiver of tax liability on equipment/materials to be imported or purchased locally, corporate and expatriate taxes amounting to €12,676,140.50, US$4,207,213.60 and GH¢4,998,849.27 in respect of Accra Tema Municipal Area (ATMA) Rural Water Supply Expansion (South and North Kpong) Project.
Madam Speaker, in doing so, I wish to present your Committee's Report.
Introduction
The request for the waiver of taxes and duties on equipment, materials to be imported or purchased locally, corporate and expatriate taxes in respect of Accra Tema Matropolitan Area (ATMA) Rural Water Supply Expansion (South and North Kpong) Project was laid in the House on Tuesday, 26th May, 2009 in accordance with article 174 (2) of the 1992 Constitution of the Republic of Ghana.
The request was subsequently referred to the Finance Committee for consideration and report pursuant to Order 169 of the Standing Orders of the House.
The Committee met and considered the request with the Deputy Ministers for Finance and Economic Planning, Hon Seth Tekper and Hon Fiifi Kwetey and technical teams from the Ministry of Finance and
Economic Planning and Ghana Water Company Limited and hereby submits this Report.
2.1 Background
The Kpong Water Treatment Plant serves all communities along the following routes: Akosombo-Kpong-Tema main road including the Accra Plains Area, the coastal areas east of Tema and the Kpong- Akuse area in the Eastern Region. The plant also serves the Akwapim Ridge in the Eastern Region and Dodowa area in the Greater Accra Region. It further serves the Manya and Yilo Krobo areas of Odumase and Somanya in the Eastern Region.
The plant was last rehabilitated and expanded to the current level in the year 1996. But since that rehabilitation, the number of inhabitants of the project area and its environs has increased significantly, thus necessitating an expansion of the plant to meet the increasing demand. 3.1 Approval of the Grant and Loan Agreement
Parliament on 25th March, 2008 approved the Grant and Loan Agreements in the sum of €41,029,976.00 and US$19,698,558.00 between the Govern- ment of the Republic of Ghana and the Government of Netherlands/ING Bank and Bank of Hapoalim of Israel to secure the necessary funds for the execution of the ATMA Rural Water Supply Expansion (South and North Kpong) Project.
4.1 Required Waiver
The amounts of tax waiver required
are as follows:
ATMA Rurals Project (South of Kpong)
Imports €12,676,140.50 Corporate GH¢770,300.02 Expatriate
GH¢2,766,765.12
ATMA Rurals Project (North of Kpong)
Imports US$4,207,213.60 Corporate GH¢430,709.57 Expatriate GH¢1,031,074.56
Attachment: Please, find attached as APPENDIX assessments conducted by the Customs, Excise and Preventive Service (CEPS) and the Internal Revenue Service (IRS) on the tax liability required to be waived.
5.1 Observations
The Committee observed that the Credit Agreement approved by Parliament in March 2008 for the execution of the project requires that all equipment and materials for the project as well as the corporate and expatriate incomes of the contractors be waived from the payment of all taxes and duties.
The Committee noted that beneficiary towns of the project in Greater-Accra Region include the following:
Dawa, Nyibenya, Dawhenya Camp, Afienya, Kpone, Prampram, Old Ningo, New Ningo, Anhwiam, Mangohonya, Ayitepa Kponguro, O m a n k o p e , L e k p o n g u r o , Luchubwe, Lekponya, Akplabanya, Menyum, Dodowa, Adam, Bula,
Mr. Ignatius Baffour Awuah (NPP - Sunyani West) 11:25 a.m.
Madam Speaker, I rise to second the motion on the floor but in doing so, I want to say that, indeed, water they say, is life and the people around Kpong deserve good drinking water. It is for this reason that the New Patriotic Party (NPP) Government in 2008 sought for this credit to facilitate the project that we are talking about.
Madam Speaker, in supporting the motion on the floor, I want to draw our attention to one or two things. First, the Cabinet Secretary in May 2008, in a letter to the Hon Minister for Finance and Economic Planning and indeed, copied to
SPACE FOR APPENDIX 11:25 a.m.
Mr. P. C. Appiah 11:25 a.m.
None

Asikuma/Odoben/Brakwa): Madam Speaker, unfortunately, I rise to oppose the adoption of the motion because the amount to be approved should be higher than what has been reported in the Finance Committee's Report. In terms of the dollar and the euro component, there is nothing wrong but in terms of the cedi component, there is something wrong.

This matter went to Government when we were in office and the computation of the tax component was done by the Internal Revenue Service (IRS) in October, 2008. At that time, the exchange rate used was what was used here. The exchange rates used to translate the euro and dollar components were as what has been used here. That is, in the case of the euro, it was GH¢1.5 and in the case of the dollar, it was GH¢1.1.

As at the time the Finance Committee sat and as even at today, the euro exchanges at GH¢2 to a euro or 20,000 old cedis to a euro. And in the case of the dollar, it is now GH¢1.1, in other words, 11,000 old cedis to a dollar.

So Madam Speaker, if we are now being called upon to waive tax of GH¢4.9 million based on GH¢1.1 and based on €1.45, the amount here is far less. If we use the current exchange rate, at the time we are speaking today and the time the Finance Committee sat, the euro was exchanged at GH¢2 and ¢1.455 to a dollar.
Madam Speaker 11:25 a.m.
Yes, what do we
do?
Mr. Appiah-Ofori 11:35 a.m.
Madam Speaker, what should be done is this; this is tax based on profit and it is only when the accounts have been prepared, the sales figure has been known. Cost of sales has been known, we now arrive at what has been known as gross profit, then all administrative expenses recovered; then we arrive at what is known as net profit.
It is only when we do this, that we know the true profit which must be taxed. Then the rate which has been suggested by the Internal Revenue Service (IRS) which is 25 per cent will now be used to determine the amount we have to waive.
So I suggest that, where you may probably give a tentative approval for the waiver, that we have no objection,
the amount to be waived; we should wait until the accounts have been prepared so that we know the true figure which must be waived, other than that we are making a mistake. So this is what I am saying.
Thank you very much.
Dr. A. Akoto Osei (NPP -- Old
Tafo): Thank you Madam Speaker, for giving me permission to contribute to the debate on the motion on the floor. Under normal circumstances, I would have been completely disagreeing with my Hon Member for Asikuma/Odoben/Brakwa but what he is saying has some merits.
What we could do, if we choose to approve it today, is to convert it at today's exchange rate so that at least, we would have captured any changes from October to today and if in the future there is any change, they will have to come back. But we can only approve it as of today then that exchange rate is what we can use to approve it, otherwise, the issue he is raising will become much bigger. But we can at least, protect ourselves by using the exchange rate as of today -- the mid rates to do the conversion and the amounts will change appropriately.
As to the tax rate, as long as the Hon Minister has not signalled his intention to change the tax rate, we should not worry about it. If and when he decides to change the tax rate and brings it here then we will account for it. But the issue about exchange rate since October and now - because the deferential is quite big but I will urge Hon Members that if we want to approve it, then we should make it converted at today's exchange rate and the numbers will be reflected adequately.
With those few comments, I support the motion.
Mr. Appiah-Ofori 11:35 a.m.
Madam Speaker,
please look at the motion. The House is
being called upon to waive tax amounting to GH¢4,998,849.27 as contained in the Report. And if he does agree with me, the exchange used in October 2008 is no more valid and that we should use the current exchange rate. Why is he opposing my position? [Interruptions.] So in the circumstance, they should go back and do the whole thing. Period!
Madam Speaker 11:35 a.m.
He has agreed
with that.
Dr. Osei 11:35 a.m.
Madam Speaker, I am
very shocked. I do not know if the Hon Member is going deaf or not. [Laughter.] I started by saying I completely agree with him. I said, “under normal circumstances” - [Interruption.]
Madam Speaker 11:35 a.m.
We did not talk
about ‘deaf', we said he needs a hearing aid. That is the last time -- [Interruptions] not ‘deaf'.
Dr. Osei 11:35 a.m.
Thank you for correcting me, but I was just supporting his arguments. I said under normal circumstances, I would have opposed him but this time he is on the right track and will want to commend him for being on the right track for once. [Laughter.]
Madam Speaker 11:35 a.m.
Yes, can we hear
from the Chairman of the Committee? All right, Hon E. T. Mensah, let us hear from you then we will go to the Chairman of the Committee.
Mr. E. T. Mensah (NDC 11:35 a.m.
None

Prampram): Thank you Madam Speaker, for the opportunity to speak to the Report before us.

Madam Speaker, provision of water to the towns mentioned in the Greater Accra Region is long over due. Indeed, if one has been to any of these towns, he would have known the problems that the residents have been through. During the dry season, they struggle with the animals,

the cattle and what have you out there. So this is a welcome news and I invite all my Hon Colleagues here to vote for this.

Madam Speaker, I want to appeal to the Ministry of Water Resources, Works and Housing to underwrite the contributions that we are demanding from the communities; they have been arguing that when you are providing water in any of the cities, nobody in the city contributes anything and yet in the villages where they are very poor, where resources are difficult to come by, we go and ask the them to contribute what we call counterpart funding for provision of water.

I want to suggest that the Ministry of Water Resources, Works and Housing takes over that portion of the contribution that we have been demanding from the communities.

With these few words, I support the Report ably presented by the Chairman of the Committee.
Madam Speaker 11:35 a.m.
I thought the
Hon Minister for Finance and Economic Planning first before the Chairman.
Minister for Finance and Economic
Planning (Dr. Kwabena Duffuor): Madam Speaker, I was trying to make an intervention. I was going to support Hon Dr. Anthony Akoto Osei that approval can be made based on the current exchange (mid-rate) of today. I support his position and that is how we should go about it and that is the convention.
Madam Speaker 11:35 a.m.
Hon Member, the
Question is -- it was based on 2008 rates, was that not it? And that was the objection that Hon P. C. Appiah-Ofori was making, that at the time of payment, it would vary from the approval we give today.
Dr. Duffuor 11:35 a.m.
Madam Speaker, the
waiver will be based on the current exchange rate. So we do not have to
go back, that is why I am saying I am supporting Hon Dr. Osei's position that, that is the convention and that is what we should stand by.
rose
Madam Speaker 11:35 a.m.
I will come to you
after Honourable, after the Chairman of the Committee.
Mr. Avedzi 11:35 a.m.
Madam Speaker, the
Committee actually worked based on the figure provided by the tax authorities. The IRS gave us the figure but if you look at the date on the letter from the Commissioner, it was dated November 2008 and from November to date the performance of the cedi has changed. So in that vein, we will have to approve this using the current rates but not the rates as they are in the 2008 figure.
So I also agree with Dr. Anthony Akoto Osei, my Ranking Member that we go ahead and approve subject to the amendment of the figure to read ‘the current exchange rate', which we do not have right here to convert the figure -- [Interruptions.] If you know, you are not the authority to provide it, so anything coming from you will not be accepted.
Mr. Kyei-Mensah-Bonsu 11:45 a.m.
Madam
Speaker, while agreeing with the principle established by the Ranking Member and agreed on by the Hon Minister for Finance and Economic Planning, I believe we need to be very exact because it concerns money that we are giving approval to.
So we cannot give any blanket approval.
We must be exact and the figure that we are talking about today, as we do know, in earlier times, we had relative stability in exchange rate and so we could do that. Today, it is not possible to do that. So let us have the exact figure, if it has to be adjusted upward, then subsequently, they
will come back. But for now, yes, we are approving of it subject to amending this to read the exchange rate as pertains today. But what is the exchange rate?

The Chairman of the Committee cannot tell us, I am not too sure that the Hon Minister can from the top of his head give the figure to us now. And so, I think the better thing to do is not to give this blanket approval, let us have the exact figure and we will deal with it and give approval. This is a good project; we all believe that it should be approved and we are eager to approve of it, but it is important to have the figure and give approval to that effect. Otherwise, to say that let it be contingent upon the current rate, which Parliament now does not have. So if the Hon Deputy Majority Leader is asked how much did he approve, what is he going to tell his constituents if he leaves here? [Interruptions.] I will go to the source.

He has to go to the source. Madam Speaker, that is the difficulty we are having, where we have supposed leaders of government business who are not leaders, who are disabled, who cannot tell us what pertains in government circles, that is where the problem emanates.

Madam Speaker, this is serious

business, I believe in principle, all of us agreed to this, both the Majority and Minority, we all agree to this. But let us have a firm indication of what it is and then we approve of it.

Madam Speaker, I am done for the time being.
Dr. Osei 11:45 a.m.
Madam Speaker, if it pleases
the House, I want to make a recommen- dation that getting today's exchange rate
does not take a long time. So if my Hon Colleagues on the other side of the House would let us stand this down for a few minutes, the Hon Minister can just call the staff members or if he can provide it, then all the better, so that we can do the conversion.
We are all trying to save government money and we need it on record. So we are trying to assist the procedures of this House. I think that will be the appropriate way to go.
Mr. Akologu 11:45 a.m.
Madam Speaker, the
Minority Leader used a word to describe me or Leadership here and I am taking objection to it. He said that “some supposed leaders of government business who do not know what is happening and so on.”[Interruptions.] I do not know, he is not part of this side and my Government endorsed my position knowing my competence, my Party endorsed my position knowing my competence -- [Interruptions.]
So it goes for all leaders on this side. I do not know what yardstick the Minority Leader is using to describe us as “supposed”. We are the authentic leaders of this side and of government business. I want him to know that, he cannot take it away from us. And besides, Madam Speaker, we are all citizens of this country, we are Hon Members of this House and we know how the work of this House goes on.
The Hon Dr. Akoto Osei was the Hon Minister of State at the Ministry of Finance and Economic Planning just about seven months ago. Madam Speaker, if the former Minister of State, who was with the Ministry of Finance and Economic Planning was not convinced about the possibility of this arrangement that he suggested and then knowing that there is an institution which determines the exchange rate each day and that institution
Mr. Akologu 11:45 a.m.


cannot be misconstrued and doubted, and that it is authentic and whatever it brings out, we can use its figures, he would not have made that suggestion.

I know that everyday the Bank of Ghana provides the exchange rate, and once it is provided, it is not changed for that day, it is changed maybe, the next day.
rose
Madam Speaker 11:45 a.m.
Can I hear from Hon
Dr. Osei 11:45 a.m.
Madam Speaker, I think
it is a solvable problem, it will take a few minutes. There are quite a few computations I can see, it will take a few minutes for the Hon Minister to get the information from the Bank of Ghana and get the staff to do it for us while we go on to other business. Within that period, he can come back with the right numbers, so at least, we will have it on record before we rise.
He can do that in a short time so that at least, we would have it on record. I think that is all that my Leader is asking for, that those numbers ought to be known before we pass it and with that, the Hon Minister for Finance and Economic Planning will
need to get somebody to do some quick computations and then he can come back and give us the corrected numbers so that we will have it on record. I think that is what he is asking and I think it is a fair thing to do. It is only a few minutes, it will not take too long.
rose rose
Madam Speaker 11:45 a.m.
Hon Minority
L e a d e r , w e r e y o u c o m i n g i n ? [Interruptions.] Hon Member for Sekondi, can I hear you?
Papa Owusu-Ankomah 11:45 a.m.
I thank the Minority Leader for giving me the floor to speak.
Madam Speaker, I believe that the issue that the Hon Member for Asikuma/ Odoben/Brakwa (Mr. P. C. Appiah-Ofori) has raised, it goes beyond this. This is because, Madam Speaker, we are also dealing with expatriate income tax, tax payable is ‘pay as you earn'.
The salaries will not be paid to them today for the next three years, it may be paid month after month. So if we go by the argument proffered by the Hon Member, what it means is that, this month, if they are paid their salaries, the rate may be different, next month, it may be different and that also raises substantial problems.
Originally, this House was waiving
tax carte blanche without stating the figure and then we took a decision that because we needed to waive the tax with arithmetic particularity, there was the need for calculation.
Now, if the Hon Member for Asikuma/ Odoben/Brakwa is saying that exchange rate changes, then it means that, the salary -- for an expatriate today, if it is $1,500 will be different next month, it will be different next two months and throughout the duration of the contract. So what it
means is that, then we should, as it were, exempt payment of some moneys that would be coming in futuro.
So as a House, while I agree to the suggestion made by the Hon Member for Old Tafo and the Ranking Member of the Committee on Finance, I just want the House to know that the matter raised by the Hon Member for Asikuma/Odoben/ Brakwa goes beyond this and so we also need to consider it in that line. That is my humble suggestion.
Thank you, Madam Speaker.
Madam Speaker 11:45 a.m.
Yes, but then what
is your final suggestion? You have made your point, so what do you suggest?
Papa Owusu-Ankomah 11:55 a.m.
Madam Speaker, the Hon Minister for Finance and Economic Planning needs to meet the Committee and in their discussion bear this in mind. That is all.
Madam Speaker 11:55 a.m.
Thank you, Hon
Member.
Mr. K. O. Agyapong (NPP -- Assin
North): Madam Speaker, I would like to propose that we base this argument on the percentages because my Hon Member also made an interesting point. Therefore, what I believe in is that, since the tax is based on percentage, if today, or this month, the rate is GH¢1.5, we are still going to use the percentage and calculate the tax that should be deducted. If next month the rate goes up to say GH¢1.6, the percentage is fixed and therefore, we use the same percentage to calculate GH¢1.6, and that will solve the problem --
Dr. Osei 11:55 a.m.
Madam Speaker, with respect
to my good Friend, I think he was trying to make a point on the tax rate and on that basis, I will agree with him. But you cannot use the same logic for the exchange rate.
My Senior Colleague from Sekondi
(Papa Owusu-Ankomah) was talking about income in futuro. I am not a legal brain, so I am not sure what he means. I am assuming he meant income to come in the future. But if it is 25 per cent of that income then it will be 25 per cent of whatever income comes in the future, so that will not matter.
It will not matter because Internal Revenue Service (IRS) will use that particular income at that time to do it. The problem is the exchange rate which unfortunately has fluctuated a bit and that is why we want to be cautious that at least, we do not have too much a differential from October till now.
We have seen a substantial change. So I still think that, as I suggested, the Hon Minister -- we could stand it down for a few minutes to allow those simple computations and when they come back at least, they will be reflective of the current exchange rate that the Bank of Ghana has already issued out at 8.00 o'clock this morning.
Mr. Avedzi 11:55 a.m.
Madam Speaker, I
have listened to the views from the Hon Members. But I think there is one basic issue that we are not looking at; that is that, the original loan agreement requires that the expatriate income tax is waived. Now that tax, whether we use 1.1 to calculate the rate or we use 2.3 to calculate, it must be waived. That is a fact.
So once the expatriate income tax must be waived, which is a condition of the loan, the rate does not come in. We can use 2.0 and the figure will look big, we are waiving it. We can use 1.2 and the rate will be low, we are waiving it. But the fact remains that the tax must be waived.
So I think what we are doing here is a lesson but I do not think it is something
Mr. Avedzi 11:55 a.m.


that we should drag too long because it is a condition for us to waive the expatriate income tax, whether the figure is big or small we have to waive it.

Madam Speaker, I think with this, we should go ahead and then approve the Agreement by Resolution.

Mr. J. B. Aidoo ( NPP -- Amenfi

East): Madam Speaker, the issue being raised, that is bordering on figures is in the motion. We are here to approve of a motion for which we are not sure of what figures are being accepted by the Ministry.

My humble submission is that, in view of the fact that we are not sure of the right figures that should be contained in the motion, this Report must be withdrawn for the time being - [Interruption.] It should be stood down for the time being for the Committee and then the Minister to sit and then do the necessary correction for us to know exactly what is going to be contained in the motion, because we cannot approve of a motion for which we are not sure of what it is talking about.

Mr. Joe Ghartey (NPP -- Esikadu/

Ketan): Madam Speaker, I think the debate, with the greatest respect to my Colleagues on both sides, is with respect, much ado about nothing. I agree with the Chairman of the Committee. The reason why I agree is that, the reason why we are arguing is that, the Constitution has given Parliament the power to do this.

Madam Speaker, we are approving of an Agreement which will continue to, I think, 2011. The figures can change at any time. It is the principle we are approving and not the figures. So the Report -- The fact that we have been doing it from time out of mind, does not mean that -- [Interruptions] -- Let me finish, let me finish. Madam Speaker, the fact that we have been doing it from time out of mind

does not mean it is correct.

What we are approving is the principle and the principle is that, we are waiving tax -- The figure can change today, it can change tomorrow, it is not only exchange rate. Madam Speaker, what happens if the rate of tax changes?

Do we always come back to Parliament to change the figure? I am of the view that what we are approving is the principle and the principle we are approving is that, tax for expatriates should be waived. The Report should not reflect figures, what we are approving is the principle.

So we should stand down the Report, and we should take away the figures and just deal with the principle that we are waiving tax for expatriates. We can never find them.
Madam Speaker 11:55 a.m.
I will take one
last contribution and then give my ruling -- from Hon Asaga.
Mr. Moses Asaga (NDC -- Nabdam) 11:55 a.m.
Madam Speaker, I think the Chairman of the Committee's position is very, very relevant for today's Report. Whether it is a “y” or an “x”, we are still going to waive it. So actual figures and specificity in terms of timing is not important, it is the rate that is important. So if the rate of tax is (y) and the answer is (a), it is that (a) we are going to waive.
So I do not understand why we should say we should be very, very specific because the principle of this House is to waive the tax by government and that is the authority we are giving to the Minister for Finance and Economic Planning and this is the convention.
Dr. Akoto Osei knows that down the line he is not going to call Internal Revenue Service (IRS) and ask them that how much have you finally waived the
tax because of a change in exchange rate.
For me, I think the exercise that we are doing is more theoretical and we should go by the practical convention because whether it is (y) or (z), government at the end of the day will waive it. So maybe, what we must suggest is that in future -- [Interruptions.] I am coming --
Several Hon Members -- rose --
Mr. Asaga 12:05 p.m.
The reason -- we used to

So Madam Speaker, the background for us now, which is capturing figures was because certain members in the previous Finance Committee said that they wanted to know how large the amount was because - [Interruptions.] I am coming, why?

So that was the principle behind us quoting the figures and we were quoting the figures on the assumption that, immediately we quote the figures, the next day or two, we approve the Report. It is not the making of this House that this was in October and we are approving it today.

So this is a singular issue that has occurred and that should not now be binding and changing our principles.

Madam Speaker, I think that we should go ahead and approve this Report, because whether it is “y” or “z”, at the end of the day, we will waive those taxes.

Thank you, Madam Speaker.
rose
Madam Speaker 12:05 p.m.
Hon Dr. Osei, I want us to finish this matter quickly.
Dr. Osei 12:05 p.m.
Madam Speaker, I see the argument of the former Minister for Justice and Attorney-General. But unfortunately, the Report we have relates to numbers, so we cannot approve this Report in this current form. If we want to approve the principles, we should withdraw it, bring a report that reflects the principles and the language can change to reflect current tax rates and prevailing exchange rates. But this Report, unfortunately, gives numbers.
So his argument, in fact, is true. But the Report is what we are looking at and the Report has specific numbers, so we cannot have it both ways.
There is the need to -- if we agree on the principles, and I think we agree to bring a new report, that will be general enough to capture our intention. But not this Report because this Report makes reference to specific numbers and we cannot approve it in this form. That is why I am suggesting that, let us withdraw as a Committee, accept the principles and write a report that reflects what we all agree on, then the numbers will disappear.
Mr. Kyei-Mensah-Bonsu 12:05 p.m.
Madam Speaker, we find ourselves in this limbo because whereas we were dealing with principles in earlier times, the previous Parliament, there was this insistence and I am afraid it was occasioned by the Hon Member for Nabdam. He at the time was the Hon Ranking Member for Finance and he was one of those who insisted that we should deal with figures. Before then, we were concerned with the principles.
He was one of the people who insisted that we should deal with figures because Parliament could not give a blanket agreement. But today, he makes a U-turn to say that let us agree with principles.
Madam Speaker, we agree that the principle is all right. But indeed, if we
Mr. Kyei-Mensah-Bonsu 12:05 p.m.


have to deal with figures, all that we are requesting is that in that case, we use the exchange rate for today and then move on. I believe that we could, in the circumstance, stand down what we are doing and then deal with motions 8 and 10. That will give some room for the Hon Minister to do the necessary consul-tations and if he gets it right, then we can come back to it.

Madam Speaker, again, I believe we also have to look at the countries which we have the double taxation agreement with. I am informed that we do not have the agreement with The Netherlands. If, indeed, that is the situation, we should be careful about that. We should crosscheck, and if we do not have double taxation agreement with The Netherlands, then we should be careful about that.

But Madam Speaker, to respond to the earlier issues raised by my Colleague, the Hon Deputy Majority Leader. Madam Speaker, I believe that when we talk about the Leadership of this House, Leadership is elected as per our Standing Orders by the Parties in Parliament not by Government. It is not done by Government. [Interruptions.] Yes, it is done by the Parties in Parliament. And that is why, the definition of Majority Leaders states in Order 7 as follows:

‘“Majority Leader” ‘means a Member of Parliament designated by the Party or Parties holding majority of seats in the House. . .' that is in Parliament ‘. . . as their recognised Leader in the House;”'

Madam Speaker, ordinarily, the

Majority Leader is supposed to be the Leader of Government Business. But the import of what I said, which unfortunately was lost on my Colleague is that, the

Leader of Government Business is one who will sit in Cabinet and who is a member of the Executive. In this case, he is not. And that is the import of what I said.

So for him to say that my Government had agreed that we were reconstituting the Leadership, I am not taking anything away from him. I am not taking anything away from him except that the convention and practice are that Leadership is constituted by the Parties in Parliament and not by Government whatsoever and howsoever it is designated.

Madam Speaker, thank you.
Madam Speaker 12:05 p.m.
Hon Minority Leader, the only thing that he was quarrelling about, from my understanding, was the word “supposed”.
So he says he gives it to you, you are the Leaders of the House. I think that should be the end of the matter.
Mr. Akologu 12:05 p.m.
Madam Speaker, I have no problem at all because I think my Hon Colleague has arrogated some kind of powers and sensibilities to himself that none of us here can comprehend.
Madam Speaker, in spoken language, when you make a statement and you think that it is not proper and you change it, it does not constitute any harm, it is no problem at all. So, do not just say that because I said Government and changed it to Party, I am sticking to Government. No, please, with spoken language, you can do anything.
That is why “is” “was” and these things come on -- [Interruptions] -- You see. So I have no problem with him at all. No, when you are on radio, when you are on television, when you are on a platform, anywhere, spoken language is not edited
at all. So I have no problem with him.
But Madam Speaker, my Hon Colleague should know that as for knowledge, wisdom and all those things, we all have them. All of us, in different degrees and so on, privileged to be in a certain position does not give you the right to be assessing - [Interruption] you have not assessed yourself. Should I assess you? If I have to assess you, I will not rate you properly at all.
So Madam Speaker, I have no problem
at all if he says that it is not Government. I am aware that it is not Government. But I was talking about my Party and my Party has formed the Government. So if I was carried away and I said that, I know. But he certainly did not take part in deciding who should be in Leadership here. That is what I was also trying to say. So he should not describe us as “supposed leaders.” That is what I referred to.
Madam Speaker 12:05 p.m.
Thank you, Hon Member.
I am minded to stand this matter down because I think you are being asked to support some figures and not only the principle. So if it is only the principle, that will be easy.
rose
Madam Speaker 12:05 p.m.
Yes, Hon Minister for Finance and Economic Planning -- I call upon you because I think you will be of help to me.
Dr. Duffuor 12:05 p.m.
Madam Speaker, we have been asked to provide data. Madam Speaker, in all transactions, business, banking and so on, we use what we call a mid-rate. The exchange rates, we have buying and selling, and for such transactions, we use what we call mid-rate, which Hon Dr. A. A. Osei mentioned. I do
support him because he was right.
The mid-rate for today, Madam
Madam Speaker 12:05 p.m.
Well, I want to stand this motion down for you to agree and come back.
Hon Chairman of the Committee, I will stand this down. We will carry on with work and come to it before we close. So this motion is stood down. So we will move to item 7.
Item 7 also then is stood down and we move to item 8.
Hon Chairman of the Committee, move the motion numbered 8.
MOTIONS 12:15 p.m.
Dr. Owusu Afriyie Akoto (NPP -- Kwadaso) 12:25 p.m.
Madam Speaker, I rise to second the motion on the floor.
I second the motion on the basis that Ghana has been one of the original members of this Agreement since its inception in 1960. In 1960, there were not many independent countries although coffee was playing a major role especially in economies in East Africa and then our own la Cote d'Ivoire next door.
Ghana participated actively in Rome for the first Agreement which came in 1962 and has been a very strong member of this organization. So this motion is only a request to continue with the very rich tradition that we have in this Agreement.
Madam Speaker, there are many benefits that the International Coffee Agreement gives to its members. Unfortunately for Ghana, we have not been able to take advantage of these benefits; especially in the late 1970s and 1980s, when the economic clauses of the Agreement were in bane, I was one of the team of international experts who executed the economic clauses globally and I seem to
remember that anytime Ghana was given an export quota, we could not even fulfil it while the other members were crying for a bigger quota. This was because locally, our production was low.
The information which was given to us Madam Speaker, at the Finance Committee strongly indicates that the very long-term downward trend of coffee production in this country continues unabated; and I would like to take this opportunity to urge the Government to take the initiative in order that we can revive coffee production in this country.
Since the 1960s, coffee has been a candidate for diversifying our agricultural economy and it has not come to pass, which is a shame because la Cote d'Ivoire next door, where coffee traditionally has been a backbone of the economy, producing over 300,000 metric tonnes of coffee at the peak about 20 years ago and they are still around 250 to 300,000 metric tonnes. What is Ghana producing? Less than 15,000 metric tonnes at the peak. Now from the figures that were supplied, we are doing barely 3,000 metric tonnes a year and it means that our potential has been wasted.

Madam Speaker, I would appeal to the relevant authorities to make sure that, at least, we start somewhere. The budget which was read by the Hon Minister for Finance and Economic Planning does not give much inspiration. On page 72 of the Budget Statement, paragraph 313 only mentioned coffee without any funds being made available for the revival of that industry. I am glad that the Minister for Finance and Economic Planning is here and I hope that the necessary measures will be taken that next time, adequate resources

will be made available for us to be able to re-organize the coffee sector so that it can take its rightful place in the economy of this country.

With that, Madam Speaker, I support the motion and strongly recommend this House to approve it.

Question proposed.
Mr. C.K. Humado (NDC -- Anlo) 12:25 p.m.
Madam Speaker, I thank you for the opportunity to support the motion that the Honourable House approves and ratifies the International Coffee Agreement.
Madam Speaker, while I also see the need to ratify the Agreement, I have some comments and observations to make.
The basic question I asked myself when I read the Report is, what are the costs and what are the benefits of ratifying this Agreement? In terms of cost, we are told that the annual subscription is about 6,660 pounds, no other figures have been disclosed.
We are also aware that this year, in November, the Hon Minister for Finance and Economic Planning is going to host the 49th Session of the Inter-African Cocoa Organization and I believe that also comes with costs. However, it is when it comes to the benefits that I have a problem because on the benefit side, as has been said by my other Hon Colleague, the foreign exchange value of our exports to date has been declining. For example, in the year 2005, Ghana produced 439 metric tonnes of robuster coffee which is valued at US$256,250.
Again, in the year 2006, Ghana produced and exported 214 metric tonnes of robuster coffee valued at only US$ 133,270. Madam Speaker, these figures are very paltry, I do not think that justifying the need for ratifying and approving this Agreement -- However, notwithstanding
Mr. C.K. Humado (NDC -- Anlo) 12:25 p.m.


my comments, I believe that the way to go is to ratify and then we try to see how we can increase the benefits stream.

I think that is what we need to do. In this regard therefore, I understand there is a national steering committee in the Ministry of Finance and Economic Planning that has been tasked to produce a strategic paper on coffee production. I would urge your Committee on Food and Agriculture and Cocoa Affairs to demand this strategic paper which will be brought to the House so that we can look at it and make our inputs. I believe that if we increase coffee production, at least, to a level that can justify our continued participation in this Agreement, I think that is the way we have to go.

Madam Speaker, I will therefore also urge that, probably, next time, such Agreements may not only be referred to the Committee on Finance but also to a Joint Committee of Finance, Food and Agriculture and Cocoa Affairs so that the Food and Agriculture Committee can also work on the benefits stream which will justify our continued participation in this Agreement --
Madam Speaker 12:25 p.m.
Hon Member, did the Order say it should be a joint committee or it is a suggestion you are making?
Mr. Humado 12:25 p.m.
Madam Speaker, it is just a suggestion I am making.
Madam Speaker 12:25 p.m.
All right. Thank
you.
Mr. E. A. Debrah (NPP -- Tano North) 12:25 p.m.
Thank you Madam Speaker, for the opportunity to contribute to this debate.
First of all, l wish to draw Hon
Members' attention to the fact that, the first President of the Republic of Ghana, Dr. Kwame Nkrumah was one of the prime movers for the formation of this Coffee Agreement. It is very sad that when we have led in the formation of this Agreement, Ghana has now fallen so low with regard to production of coffee in the world.
Madam Speaker, these commodity agreements come with benefits as we have already been told. These benefits are normally in the form of enhanced prices to member countries, sharing of research findings and co-operation and consul-tation with regard to best practices in the industry.
In short, to fully benefit from these agreements, one must improve or increase the production levels of the commodity. And if we look at Ghana right now, our production is nothing to be talked about. In fact, Ghana has never produced more than 15,000 metric tonnes of coffee since the inception of this Agreement. As we have been told, la Cote d'Ivoire at a certain point in time even produced 350,000 metric tonnes.
So while I support this motion, Madam Speaker, I think to maximize our benefits for this Agreement, we need as a matter of policy, to look at ways of enhancing coffee production in Ghana and I am happy that the Minister for Finance and Economic Planning is in the House this morning. COCOBOD is under his Ministry and COCOBOD is in charge of coffee and sheanuts as well and I think he should take it up as a matter of policy, to bring in initiations and other policies that will increase the level of production of coffee in Ghana.
In fact, by introduction of technology into the cocoa sector, we have been able to move from the 350,000 metric tonnes
a year to about 700,000 metric tonnes a year in a period of only eight years and I think if we give some emphasis to coffee, we can increase our level of production so that we can maximize our benefits from the Agreement.
Having said that, I will urge Hon Members to support the motion.
Madam Speaker, one last point. This Committee deliberated on this Agreement with the full participation of members of the agricultural sector but when the Report was coming, I think they never mentioned that the agricultural sector committee fully participated at this Committee meeting to arrive at these decisions and I want that to be noted on the floor of the House.
Mr. Kwaku Agyeman-Manu (NPP -- Dormaa West) 12:35 p.m.
Madam Speaker, I rise to urge my Hon Colleagues to support the motion on the floor. But in doing so, I would want to talk about our growth strategies and try to identify whether coffee by policy, seems to be one of the strategic commodities that we can use to grow our economy.
Madam Speaker, coffee has not been doing so well in our country, if we look at the volumes that we produce year-on-year and the former Agriculture Minister was talking about not more than 15,000 tons per annum. My Hon Colleague who spoke before the former Agriculture Minister, I do not know his constituency, was talking about turnover in terms of dollars close to about 200,000; 300,000 and 100,000.
These are the types of volumes either in terms of money or in terms of quantities that we are looking at and seeing from coffee; one would question, is it even worth at all that we devote Ghana's time to look at something that is not bringing in very significant contribution to our growth
and our growth agenda? These are things we have to look at.
I will urge our policy makers and government to try to look at circumstances within which we find ourselves, such that we are not giving so much attention to coffee either by virtue of its price situation, either by virtue of its difficulty to even grow. What is the reason why farmers are not voluntarily picking coffee as they do for cocoa and other commodities? These are things that we have to look at to try to actually do a very serious cost benefit analysis as to whether even government should begin to put investments into enhancing production of coffee in our country.

Madam Speaker, I would want to believe that, the strategic commodities that we may try to pick, as those planning the economy would be faced actually with poverty and when we are talking about poverty alleviation, we are looking at what yields we can get from a single acre or put in a particular crop, what research or what facilitation that we can do to help the farmer raise his income to reduce poverty. These are all things that we have to take into consideration when we are looking at some of these things.

I want to believe strongly that coffee might not be a commodity that we may need to continue to put investments into, with a view to enhancing its productivity as a way of reducing poverty or growing our economy.

I thank you very much for this opportunity.
Dr. Ahmed Yakubu Alhassan (NDC -- Mion) 12:35 p.m.
Madam Speaker, thank you very much, except to say that I also support the motion and to add that for the purposes of emphasis, I agree that your Committee on Food, Agriculture and
Dr. Ahmed Yakubu Alhassan (NDC -- Mion) 12:35 p.m.


Cocoa Affairs should join the Finance Committee in discussing this particular Agreement.

What I would like to say is that, I believe that there are other similar orphan crops that are under the ambit of the COCOBOD which seem to be suffering because cocoa is climbing very high and it is time that as a country, we devoted some time and some resources to these orphan crops so that we can pick up the benefits in the international commodity market in respect of these commodities.

I believe that with coffee, a strategic plan has been submitted to Government, it is time such plans were implemented and the starting points, I believe is to have some emphasis and very good research system to back the production of coffee and other orphan crops such as sheanut and cotton.

I emphasise this because there is no commodity that has made it in the international scene in terms of volumes of production without a very strong research foundation. I think that any overhaul of the coffee industry and coffee as a crop, must start with a very strong research base as it is also being spelt out in the benefits that will come in the International Coffee Agreement. If this emphasis is made on research, I believe we can have more home grown solutions and technologies that will uplift the crop for the benefit of mother Ghana.

With these few words, I support the motion.
Madam Speaker 12:35 p.m.
We conclude the debate now.
Question put and motion agreed to.
Madam Speaker 12:35 p.m.
Item 9.
RESOLUTION 12:35 p.m.
Mr. E. T. Mensah 12:35 p.m.
Madam Speaker, I rise to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Madam Speaker 12:35 p.m.
Item 10 -- Chairman of the Committee, you lead motion 10 on the Order Paper.
Mr. Gershon K. B. Gbediame 12:35 p.m.
Madam Speaker, may I crave your indulgence to make a slight correction
on the motion and then I will present the Report. The motion will read:
“That this Honourable House adopts the Report of the Committee on Lands and Forestry on the Voluntary Partnership Agreement (VPA) on Timber Trade with the European Union.”
M a d a m S p e a k e r, t h o u g h t h e Development Cooperation is implied in the Report, in order that it will agree with the document that we are actually ratifying, we want to beg, delete that portion “and Development Cooperation”. Having done that, all the heading on the Report should also go accordingly.
MOTIONS 12:35 p.m.
Chairman of the Committee (Mr. G. K. B. Gbediame) 12:35 p.m.
Madam Speaker, I beg to move, that this Honourable House adopts the Report of the Committee on Lands and Forestry on the Voluntary Partnership Agreement (VPA) on Timber Trade with the European Union.
Madam Speaker, I crave your indulgence to present the Committee's Report.
1.0 Introduction
1.1 Ghana signed up to The Voluntary Partnership Agreement (VPA) on Timber Trade with the European Union (EU) on 3rd September 2008 after two (2) years of negotiations. The VPA was subsequently laid before the House on Tuesday, 26th May, 2009 and referred to the Committee on Lands and Forestry for consideration and report in pursuance of Order 177 of the Standing Orders of the House.
Chairman of the Committee (Mr. G. K. B. Gbediame) 12:35 p.m.


1.2 The Committee met with the Hon Minister for Lands and Natural Resources and his officials to deliberate on the VPA and expresses gratitude to them for their input.

2.0 Reference

2.1 The Committee referred to the following documents during its deliberations:

i. The 1992 Constitution

ii. The Standing Orders

iii. The Timber Resources Management Act, 1997 (Act 547)

iv. The Timber Resources Management (Amendment) Act, 2002 (Act 617)

v. The Timber Resources Management Regulations, 1998 (L.I. 1649)

vi The Timber Resources Management (Amendment) Regulations, 2003

(L.I. 1721)

3.0 Background

3.1 Due to high rate of environmental degradation and deforestation arising from illegal logging, the EU has come under intense scrutiny and pressure from Environmental NGOs and the Civil Society to ensure that timber and its related products are harvested from legal and sustainable sources.

3.2 Considering the cost burden of illegal logging on member countries and the international market, the EU initiated the Forest Law Enforcement, Governance and Trade (FLEGT). A strand of this initiative is the African Forest Law Enforcement and Governance (AFLEG) signed in Yaoundé, Cameroon by Ghana

and other timber producing countries in Africa in October 2003.

3. As part of the implementation of the FLEGT, the EU is entering into a VPA with producer countries aimed at ensuring that timber and its related products exported to the EU market and used locally comply with the forest laws of the signatory countries.

3.4 Owing to the developments discussed above, Ghana formalized its negotiations on the VPA with the EU in December 2006. During the negotiation period, there were stakeholder consultations with Parliament, the Ministries of Finance and Economic Planning, Trade and Industry, Presidential Special Initiative (PSI) and Presidential Special Directive (PSD), Civil Society Organisations and the National House of Chiefs.

4.0 Objective of the Agreement

4.1 The objective of the Agreement is to ensure that Ghana continues to maintain its access to the EU market for timber and its related products.

5.0 Main Features of the Agreement

5.1 Some of the key features of the Agreement include the following:

i. Identification of country specific legal s tandards with which compliance can be measured

ii. Development of a chain of custody to enable assessors/verifiers trace harvesting sources

ii i . Issuance of certif icates as confirmation of compliance with the identified standards

iv. Appointment of an independent body to periodically audit or

monitor the compliance system

6.0 Observations

6.1a The Committee noted with great concern that access to the EU market with timber and its related products is increasingly becoming difficult to producers who are unable to demonstrate the legality and origin of their products.

6.1b In Ghana, earnings from the Timber Sector constitutes about 10 per cent of the country's foreign exchange. The Sector also employs over one hundred thousand (100,000) people directly and two million, five hundred thousand (2,500,000) people indirectly. There is therefore, the need to ratify this Agreement to ensure Ghana's continued/unimpeded access to the EU as any action contrary, would adversely affect the economy.

6.2 The Committee observed that illegal logging in Ghana and the world over, floods the world market suppressing timber prices and hence lowering the returns of legal producers. Therefore, signing up to the VPA by all producer countries including Ghana would curb distortions in world timber prices so that local industries would be encouraged to sustain production to bolster the economy and the numerous benefits accruing thereof.

6.3 The Committee noted that both the initial and running cost for the placement of technical systems and development of the requisite capacities for the smooth implementation of the VPA over a five-year period has been estimated to be forty-seven million United States dollars (US$47,000,000.00). The Committee was informed that the amount would not be borne by Ghana, as its development partners including the EU, the Department for International Development (DFID), and the World Bank have made commitments under

the Natural Resource and Environmental Governance Programme (NREG) to provide development assistance through budgetary support over the five (5) year period.

6.4 The Committee also observed that the VPA is only a trade agreement and does not include resources for timber plantation development but was assured of such provision under the NREG.

7.0 Conclusion

7.1 Considering the enormous benefits that the country would derive from the VPA on Timber Trade with the EU, the Committee appeals to this Honourable House for its ratification.

Respectfully submitted.
Mr. Andrews Adjei-Yeboah (NPP - Tano South) 12:45 p.m.
Madam Speaker, I rise to second the motion as stated on the Order Paper on page 10 and in doing so, I would like to make a few remarks and comments on the Agreement.
Madam Speaker, I am very happy this afternoon to see this particular Agreement come before Parliament for ratification. It is one single job that I did when I went to the Ministry as a junior Minister in the then Ministry of Lands and Forestry from its inception from the House of Commons through Brussels until it was finally initialled in Ghana in September, 2008. I strongly believe that it is a very important document that will enhance and encourage legality in the country and therefore, urge Hon Members to support it.
Madam Speaker, originally, when we were entering into this negotiation, it was the time that the Economic Partnership Agreement (EPA) negotiation had started and the apprehension of a lot people were
very rife.
But we were so much convinced of the fact that it was not anything new that the Europeans wanted the country to actually enter into; rather it was the governance issue that we as a country wanted to actually apply and subject ourselves to the very dictates of the laws that we have as a country covering the harvesting and processing of timber in our country, which in itself was going to put Ghana at a level where the product that we are producing in our country could win a lot of respect on the international market.
I believe as a country, we ultimately became the first country to enter into negotiations with the EU, and Ghana became a star for other countries, as it were, to emulate.
Madam Speaker, even as I speak now,
the European Parliament is in the process -- I am sure by this election, they will be actually going in to ratify it; and in the whole world, we as a country will be the first to ratify our Voluntary Partnership Agreement (VPA). And I really urge my Hon Colleagues to support it because of the numerous benefits that we will have as a country.
One major concern that we had was how we were going to address the issue of the domestic market.
Madam Speaker, there are lots of timber products on the market which sources are very doubtful. By this arrangement and this Agreement, the Ministry is being supported and encouraged to make sure that the timber that are coming on the domestic markets do respect all the laws that we have.
I was happy when last week I saw the Hon Minister chasing chainsaw operators in a forest reserve very near to my constituency - [Interruption] - Yes, on television. He was shown collecting chainsaw -- [Interruption] -- So Madam
Mr. David Oppon-Kusi (NPP -- Ayirebi/Ofoase) 12:45 p.m.
Madam Speaker, I thank you for the opportunity. Madam Speaker, I rise to support the motion on the floor.
At this moment, it is ironic that the very people who over the centuries have exploited our natural resources are the very people who have come round today to support us in trying to find a solution to the degradation of our forest. Madam Speaker, I am heartened.
But in the conclusion, we were told that there is going to be enormous benefits to us; that is a moot point. However, I am glad that at least, there is an Instrument that is going to help us to manage our forest resources.
My problem, however, is on the local industry and on the local scene. We do know that even in our forest areas, we find it very difficult to get timber that is legal. We all seem to depend on illegal sources of timber, and I do hope that this Agreement will have a local component that will make sure that it does not turn into something that will make timber more expensive in the local market while facilitating the export of timber to the outside world.
I urge the Hon Minister for Lands and Natural Resources, whom we saw collecting chainsaw machines, to come up with measures because we also need timber to consume locally. We are building structures; and we need timber so we should have a policy that will make sure that if we export 50 per cent of timber, we should make sure that we have enough legal timber on our market before we continue exporting.
I think the balance is always in favour of exports as against local use. We are an expanding economy, so we should pay attention to our local needs and then be sure that even as we take legal timber outside, the bulk of the timber we use does not become illegal, otherwise, it will defeat the aim of degradation. Even as we speak, our forests are being heavily depleted, so we urge all of us to support it and ensure that at least, our resources, especially our natural resources, are used for the betterment of this nation.
Madam Speaker, with this I support the motion.
Mr. Kojo Adu-Asare (NDC -- Adenta) 12:55 p.m.
Madam Speaker, the issue of timber in this country seems to hit my
heart a lot because I find myself in that industry.
Other Hon Members who spoke have already mentioned, it has become very difficult for most furniture makers in this country to get legal wood to buy because the laws have not supported this industry very well. In my area where I live, there were so many furniture companies that I knew about, about ten years ago. Go there today; a lot of them have folded up because they cannot find timber to work with.
Those we can find are the worse or the worst in terms of quality because the best part of it is always exported outside. The fact that these chainsaw operators have been banned but at the same time, they are the ones who have for the past ten years supplied furniture to our industry or furniture industry in this country -- It is gratifying to note that today an issue like this has come to this floor and I will entreat my Hon Colleagues to ratify this issue because it will help to create jobs.
I am a furniture person -- if you want to call me a carpenter, I will not hesitate to agree with you. And this is an industry that I think can generate a lot of employment in this country. Unfor-tunately, because of the kind of laws we have, we are not able to exploit the benefits of this industry.
With these few words, I want to support the motion on the floor and also entreat my Hon Colleagues to do same.
Thank you, Madam Speaker.
Mr. J. B. Aidoo (NPP -- Amenfi East) 12:55 p.m.
Madam Speaker, thank you for giving me this opportunity to contribute in supporting the Report of the Committee on Lands and Forestry.
Madam Speaker, this initiative is one of the sound initiatives that the previous Administration left in the hands of the new Administration, that is, the National Democratic Congress (NDC) Government. And Madam Speaker, it is imperative to note that what we are looking at is an Agreement between Ghana and then the European countries, that is, our partners in the European Union.
Madam Speaker, the Agreement is informed by a number of arrangements. It is informed by the Rio de Janeiro Declaration; it is also informed by the Cotonou Accord. The Rio Declaration touches on sustainable forest manage- ment and the Cotonou arrangement also deals with partnership with African countries.
Madam Speaker, so all that this Agreement is indicating is that there should be mechanisms to govern the management of forest resources and also for timber and timber products that enter the European Union market ought to be legal. So if we take the Agreement itself, the various principles, one of them touches on legal definition and that is based on the laws of the country.
So in this particular instance, it is not laws that are imposed on Ghana but then the laws that we are to comply with are laws that are made, that is, home-made, made here in Ghana. And then what the Agreement is seeking to do is for this country to ensure that our own country laws in the forest sector are complied with.
Madam Speaker, it also seeks to bring about a system of verification which goes with a chain of custody so that every product through the supply chain down to its origin ought to be well verified and then based on that the product would be licensed before it leaves for the European market.
Mr. J. B. Aidoo (NPP -- Amenfi East) 1:05 p.m.
Madam Speaker, what is happening in the whole world is that people are increasingly becoming aware of the degradation of forests and forest resources. Therefore, in the European Community, there is now an increasing agitation for responsible purchasing and responsible consumption of timber and timber related products. And that is what actually informed the coming into force of this Agreement.
Madam Speaker, the Agreement is coming under what is called the Forest Law Enforcement and Governance Trade (FLEGT) Initiative of the European Union. And under this Initiative, that is the FLEGT Initiative. Madam Speaker, it is illegal to transport or bring into the European market any products that had not been certified by the FLEGT licence.
Because the awakening, that is the awareness for responsible consumption of timber products took place in the European community among the private sector -- Madam Speaker, it was the private sector that drove this awareness. What we are concerned with, that is, what some members of this Committee are concerned with, is what we are going to do domestically here in Ghana because in their case, it was the private sector that actually initiated this whole idea of FLEGT. But then when you come to Ghana -- [Interruption.] It is not time for changing.
This is a very important matter that we have to look at. When you come to Ghana -- [Interruption.] Because you were making some signs, so I have to react to your sign. Madam Speaker, when you come to Ghana, the main concern is, what will happen to our domestic market? Because if one looks at the general provisions one requires that we must also comply with the legality in Ghana, that domestically we must comply.
We must ensure that every product we use in this country is certified to be legal. Madam Speaker, when you go round even with public procurement and then public projects, the schools that are being constructed, you go there and you realize that chainsaw materials are being used. How are we going to comply with this provision?

That is one concern which the members of this Committee raised when we met the Hon Minister. It will require that there have to be procurement policies put in place not only for public procurement but also for private use. For instance, if you are going to put up your private house, there is the need for you to get legal timber or timber related products before you can undertake such activity. But Madam Speaker, it is not going to be easy because for us -- Maybe, in Europe people will insist that they get legal timber to use in their homes.

In Ghana, the story might be different because in the matter which has been mentioned a number of times here where the Minister for Lands and Natural Resources arrested somebody who had gone to cut timber illegally, the Minister was heard saying that he even had pity for the person because the person was a novice. Of course, it takes an experienced teacher to know that a culprit is a novice in such an exercise.

Madam Speaker, the benefits are enormous but our main concern should relate to what the Government is going to do in terms of our own local procurement policies and that is where the emphasis should be because eventually, we may be brought to account for that provision in the Agreement.

Originally, when this whole thing started, we were made to believe that the European Union would not put any emphasis on this aspect, but Madam Speaker, when the final Agreement came, this provision had been inserted, meaning that there is going to be an obligation on Ghana to ensure that every timber and related products that are used in this country are legal.

Madam Speaker, on that note, we are placing a huge responsibility on the Minister to as soon as possible come out with the necessary policies and regulations to ensure that while we are ensuring that timber products or consignments that go to the European market are legal domestically, too, we have legal timber being used both for public ventures as well as private domestic ventures.

On that note, I am asking Hon Colleagues of this House to support this Report, which is very, very important for this country and we must all agree to approve of it.

With that I thank you, Madam Speaker.
Madam Speaker 1:05 p.m.
Thank you, Hon Member. Debate time is over.
Question put and motion agreed to.
Now, we move to item 11 and I call on the Hon Minister for Lands and Natural Resources -- you may now move for the adoption of the Resolution.
Alhaji Collins Dauda 1:05 p.m.
Madam Speaker, I beg to correct Resolution 11 as the Chairman of the Committee did before moving the motion because it is consequential.
RESOLUTIONS 1:05 p.m.
Madam Speaker 1:05 p.m.
Who will second the motion for adoption?
Dr. A. A. Osei 1:05 p.m.
Madam Speaker, I was rising to second the motion for adoption but I need some clarification from the Hon Member for Asutifi. In reading the motion, he reminded us categorically and I quote:
“ . . . the votes of more than one half of all the Hon Members of Parliament”.
Dr. A. A. Osei 1:05 p.m.


On that note, I rise to second the motion.

Question put and motion agreed to.

Resolved accordingly.
Madam Speaker 1:05 p.m.
Now, we move back to item 6 -- the Chairman of the Committee?
Mr. J. K. Avedzi 1:05 p.m.
Thank you, Madam Speaker. We had consultations and we agreed that we amend the motion to take account of the exchange rate that is prevailing now. So I will ask the Hon Minister to just amend the motion to take account of the exchange rate that is prevailing and we move the motion.
Madam Speaker 1:05 p.m.
The motion is item 6 on the Order Paper.
Mr. Avedzi 1:05 p.m.
Yes, Madam Speaker.
MOTIONS 1:05 p.m.
Chairman of the Committee (Mr. J. K. Avedzi) 1:15 p.m.
Madam Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Waiver of tax liability on equipment/materials to be imported or purchased locally, corporate and expatriate taxes amounting to €12,676,140.50, US$4,207,213.60 and Euro 510,001 -- [Pause.]
We are amending the motion to read in foreign currency and then apply the
exchange rate that is prevailing. That is why I am quoting that figure. That figure is in the Report , what has been submitted by Internal Revenue Service to the Committee. So I have picked that euro 510,001 from the 2009 corporate tax, 2010 corporate tax, 2011 corporate tax put together and then the expatriates income also put together.

We will not convert it because we are not using the exchange rate as they used in converting the figure. But we will leave it open that the tax and the exchange rate prevailing should be applied in determining the tax for the expatriates to pay and then the corporate tax as well. So we are not converting it but we are only using the prevailing exchange rate.
Madam Speaker 1:15 p.m.
So how do we capture the motion now?
Mr. Avedzi 1:15 p.m.
Madam Speaker, the motion reads as follows:
That this Honourable House adopts the Report of the Finance Committee on the Waiver of tax liability on equipment/materials to be imported or purchased locally, corporate and expatriate taxes amounting to €12,676,140.50, US$4,207,213.60 and€510,001,000 at the prevailing tax and exchange rate in respect of Accra Tema Municipal Area (ATMA) Rural Water Supply Expansion (South and North Kpong) Project.
Madam Speaker, I beg to move.
Dr. A. A. Osei 1:15 p.m.
Madam Speaker,

I know. But whatever it is, 510 euros times 10 will give us five million. So we are saying that the exchange rate is 115. That is where the -- [Interruption.] I would have preferred leaving out the euro amount and stating the cedi equivalent of corporate and expatriate taxes prevailing at the current tax and exchange rate, which for today is as an example -- then they have the example without stating the euro amount.
Mr. Appiah-Ofori 1:15 p.m.
Madam Speaker, it is better the Finance Committee sits down and looks at it critically. The corporate tax, the account is going to be prepared in cedis, not euros. So we cannot determine the corporate tax in dollars or in euros and then give the cedi equivalent; it is wrong. If we are translating foreign currency into cedis, fine. But this account is going to be prepared in Ghana and it is going to be in cedis. What are we doing? So they should go and sit down and do it properly and come tomorrow so we approve it. It is simple.
Dr. Osei 1:15 p.m.
Madam Speaker, as is the case, I would have loved to agree with him but the IRS itself which has an attachment first does the estimation in foreign exchange and does the conversion. So it is not true that they immediately gave the cedi amount. They themselves have handed to us the foreign exchange equivalent and that is why they had to use the exchange rate because the corporate earnings, those expatriates earn foreign exchange, not cedis, and which has to be converted. So if you know the exchange rate, the conversion is not going to be difficult.
As to whether or not he wants the Finance Committee to meet, that is an opinion but he should not tell us that the IRS does this thing in cedis.
Mr. Appiah-Ofori 1:15 p.m.
Madam Speaker, whatever we do here is for the sake of Ghana's interest. Sometimes we overlook things and one day we may sell Ghana for one penny - [Interruptions.] Yes, we do not look at it properly and when one talks about it they say Appiah-Ofori, opposes this and that. What is that? The account is going to be prepared in cedis, not in dollars. [Interruption.] Madam Speaker, let them do whatever they like.
Madam Speaker 1:15 p.m.
Hon P.C., you are entitled to tell us. At the end of it, I will put the Question. If they accept what you are saying, then we will not--
Mr. Appiah-Ofori 1:15 p.m.
Madam Speaker, the expenditures here, what we are -- [Interruption.] Madam Speaker, look at 15 -- [Interruption.]
Papa Owusu-Ankomah 1:15 p.m.
Madam Speaker, I believe that -- [Interruption.]
Mr. Appiah-Ofori 1:15 p.m.
Madam Speaker, can anybody stand up and speak without your approval? Have you given him the green light to speak?
Papa Owusu-Ankomah 1:15 p.m.
Madam Speaker, I believe that the Hon Member in his presentation was imputing unparliamentary and unnationalistic motives to Hon Members of this House who were holding different opinions from him. I do not think it is right to say that we must think of the national interest, otherwise, we are going to sell Ghana for a penny. It presumes that he has the exclusive preserve of national interest and that is not right.
As you rightly said, Madam Speaker, he is entitled to his opinion but he must not by any stretch of imagination impute that those who hold an opinion contrary from his are unnationalistic; it is most unacceptable and I am urging Madam Speaker to invite the Hon Member to
Papa Owusu-Ankomah 1:15 p.m.


withdraw those expressions and apologise to the entire House; it is most unacceptable.

I respect his opinion but that is why we are here and it is the majority view that prevails. He cannot just foist on this House his opinion and give the impression that if we do not accept his opinion we are being unnationalistic and then if we are not careful we will sell Ghana for a penny; that is most unacceptable.
Dr. Osei 1:15 p.m.
Madam Speaker, I was just trying to clarify my amendment to the Finance --[Interruption.]
Madam Speaker 1:15 p.m.
Hon Member, the point at this stage is that you were said to have said that --
Mr. Appiah-Ofori 1:15 p.m.
Madam Speaker, I withdraw it and apologise.
Madam Speaker 1:15 p.m.
Thank you. It is withdrawn so - [Laughter.]
Mr. Appiah-Ofori 1:25 p.m.
Madam Speaker, let us look at this Report before us. We have three items - the imports, the amount which is stated in euros because it should be in euros. When the items come here, the invoice supporting the imports will be in euros and therefore, there is nothing wrong.
But when you come to corporate tax, it is going to be based on accounts prepared in Ghana in cedis, except for the tax component, the whole thing must be in cedis.

We cannot put it in foreign currency and say “prevailing rates”. So as they did it, they translated the dollar and euro components and determined into cedis the corporate tax. This is what we have to do
Madam Speaker 1:25 p.m.
Hon Member,
wind up.
Mr. Appiah-Ofori 1:25 p.m.
Madam Speaker, the whole amount must be in cedis, the two items in cedis but not in dollars or euros and then we say “the prevailing rates”. It is wrong.
Madam Speaker 1:25 p.m.
Hon Member, are
you saying that if you say cedis, it cannot be translated into euros and dollars and vice versa?
Mr. Appiah-Ofori 1:25 p.m.
Madam Speaker,
no, in Ghana when we file our returns with the IRS, it is in cedis, so we are trying to evade tax liabilities in cedis. So why did we state the amount in dollars and euros? The whole thing must be converted into cedis so that we know the actual amount in cedis to be waived.
Madam Speaker 1:25 p.m.
Hon P. C. Appiah-
Ofori, we are waiving it anyway, it is being waived, it will not be paid. Is that not it?
Mr. Appiah-Ofori 1:25 p.m.
So this is what
I am saying that we know the amount in cedis we are waiving. [Interruptions.] It is not in euros or dollars.
Mr. David Oppon-Kusi 1:25 p.m.
Madam Speaker, I think our Hon Friend will help us move forward because I am a little confused. If as he claims, tax returns are calculated in cedis then what is the need for rate of exchange? If it is already calculated in cedis then it means that we do not even need the rate of exchange.
We do not need the rate of exchange because we are converting from one currency to the other. He tells us that
we calculate corporate taxes in cedis. Then why straightaway do we not pay in cedis? Then we do not need the rate of exchange. He should help us clarify this. He is getting us confused. If it is calculated in cedis, we do not know the rate of exchange. I am sure we need this because it is calculated in dollars but then it is paid in cedis. So he should clarify it so that we can move forward.
Mr. E. K. D. Adjaho (NDC -- Avenor/
Ave): Madam Speaker, I want to be very careful not to take this Honorable House back. But I think that the problem we are encountering now -- we have all along been encountering this problem.
But part of the problem is that Parliament is exercising its powers not specifically because it is based on a certain assumption. In other words, the point being made is that it is not a simple matter to say that because after all, we are not paying it, so it will be waived anyway. I totally disagree and I want this to be on record. This must be on record because how do we perform our oversight function at the end of the day?
If it is 10,000, 000 that we are waiving, we should know that it is 10,000,000 that this House is waiving. So that if somebody leaves this House and goes and makes it 20,000,000 as waiver, we will know.
We have a history of people abusing this system, so it is not a simple matter of waiver; we must know the exact amount that we are waiving. The problem with this one is that, we are not exact with the corporate tax. That is the difficulty that we are facing. We do not know whether to use the current exchange rate.
I totally want to say that I share some of the sentiments being raised by Hon P. C. Appiah-Ofori, at least, on this occasion. [Laughter.] And I think that in order for
this House to discharge its oversight responsibility over the Ministries, Departments and Agencies (MDAs), it is very, very important at the end of the day to ask ourselves how much tax have we waived for this particular project.
At the end of the day, we are working on assumptions; we do not know, nobody can answer that question. So if somebody goes to change the figure, how does this House know? How then do we perform our oversight responsibility? I think that the proper thing to do, with the greatest respect, let the Finance Committee go back -- This is a very important project, we agree that we are going to waive this amount; both sides of the House agree that we are going to waive it, let us give a figure which is legitimate and specific then we can approve it for them at anytime.
Madam Speaker 1:25 p.m.
I think we have
heard enough on this matter and the last Hon Member who spoke suggested that the Finance Committee must go and come back with something which will be acceptable. We are going to approve some money and we must all agree. What if I put the Question and it is turned down? Then what do we do?
Mr. Avedzi 1:25 p.m.
Madam Speaker, I think
the issue is not about the figure; it is not that we do not have the figure that we are waiving here. We have the figures. The issue now is whether those figures would be converted to cedi or not. That is the issue. And that was why initially Hon P. C Appiah-Ofori raised the issue about the rates at which we convert the figure. Because the company is going to operate in Ghana and for that matter the tax should be in cedis; we are saying that the cedi equivalent of the dollar amount and the prevailing rates -- so we have the figure, the figure is in the Report -- the cedi equivalence and the prevailing rates.
Mr. Avedzi 1:25 p.m.


For instance, today's exchange rates for the dollar is 1.4471; that is the exchange rate for the dollar, and for the euro, it is 2.0009. So the rate that is prevailing at the point in time is the rate that will be used in determining or converting from the euro or dollar to the cedi. So we have the figure, it is not the issue that we do not have the figure, the figure is there, it is the exchange rate that we are talking about. We are approving it based on the prevailing exchange rates. For instance, if tomorrow our tax rate changes, what happens? We will use tomorrow's rate.

That is why we are saying ‘the prevailing exchange' and tax rate. So I think it is not something that we should drag too long, we have gone far, we should go ahead and approve it.
Dr. Osei 1:25 p.m.
Madam Speaker, I was
trying earlier to contribute to his motion by making an amendment which I think he is agreeing to and if we can capture it carefully, we need to specify the imports on local taxes as the amount of €12,676,140.50 but when it comes to the corporate and expatriate taxes, that is where we need to mention the cedi equivalent of corporate and expatriate taxes at the prevailing exchange and tax rates at the time of computation.
If the IRS can be made to inform Parliament appropriately, then it is specific so that even if they do it, we would be informed. Because if we are looking into the future, we do not know the future exchange rate, so we will never have that exact figure and I thought in principle, we agreed to move away from figures but we need to make sure that it is the corporate and expatriate cedi equivalent to be calculated at the prevailing tax and exchange rate at the time of computation to be reported to Parliament at the appropriate time.
Madam Speaker 1:25 p.m.
Hon Member, let
us capture this properly before I put the Question.
Mr. Avedzi 1:25 p.m.
Madam Speaker, I beg to
move, that this Honorable House adopts the Report of the Finance Committee on the Waiver of tax liability on equipment/ materials to be purchased locally, corporate and expatriate taxes amounting to €12,676,140.50, US$4,207,213.60 and the cedi equivalent of corporate and expatriate taxes prevailing at the point of computation --
rose
Madam Speaker 1:25 p.m.
Hon Member, you
do not agree with the new amendment?
Mr. Kyei-Mensah-Bonsu 1:25 p.m.
Madam
Speaker, I agree and that is why I asked the Ranking Member of Finance Committee to propose the variation and we will accept it except to further amend what the Chairman of the Finance Committee read in respect of the third line. ‘That this Honourable adopts the Report of the Finance Committee on the waiver of tax liability on equipment/materials to be imported “and purchased” not “or purchased” It is not an ‘either' ‘or' situation. It is to be imported and purchased locally.
Madam Speaker 1:35 p.m.
I think we have reached the point where I could close the debate and put the Question to the new amendment.
Question put and motion agreed to.
RESOLUTIONS 1:35 p.m.
Minister for Finance and Economic Planning (Dr. Kwabena Duffuor) 1:35 p.m.
Madam Speaker, I beg to move,
WHEREAS by the provisions of article 174 (2) of the Constitution, Parliament is empowered to confer power on any person or authority to waive or vary a tax imposed by an Act of Parliament;
THE EXERCISE of any power conferred on any person or authority to waive or vary a tax in favour of any person or authority is by the said provisions made subject to the prior approval of Parliament by resolution;
By the combined operation of the provisions of section 26 (2) of the Customs, Excise and Preventive Service (Management) Law, 1993 (PNDCL 330), then Export and Import Act, 1995 (Act 503), the Export Development and Investment Fund Act, 2000 (Act 582), the Value Added Tax Act, 1998(Act 546), the Value Added Tax (Amendment) Act 2000 (Act 579) and other existing Laws and Regulations applicable to the collection of Customs duties and other taxes on the importation of goods into Ghana, the Minister for Finance and Economic Planning may exempt any statutory corporation, institution or individual from the payment of duties and taxes otherwise payable under the said Laws and Regulations or waive or vary the requirement of such statutory corporation, institution or individual to pay such duties and taxes;
IN ACCORDANCE with the
provisions of the Constitution and at the request of the Government of Ghana acting through the Minister responsible for Finance and Economic Planning, there has been laid before Parliament a request by the Minister for Finance and Economic Planning for the prior approval of Parliament to the exercise by him of his power under the Laws and Regulations relating to the importation of equipment and other materials amounting to
€12,676,140.50, US$4,207,213.60
and GH¢4,998,849.27 into Ghana in respect of the Accra Tema Municipal Area (ATMA) Rural Water Supply Expansion (South and North Kpong) Project.
N O W T H E R E F O R E , t h i s Honourable House hereby approves the exercise by the Minister responsible for Finance and Economic Planning of the power granted to him by Parliament by Statute to waive such taxes and duties or to exempt the payment of such taxes and duties on equipment/materials to be imported and purchased locally, corporate and expatriate taxes amounting to
€12,676,140.50, US$4,207,213.60
and GH¢4,998,849.27 into Ghana in respect of the Accra Tema Municipal Area (ATMA) Rural Water Supply Expansion (South and North Kpong) Project.
Mr. E. T. Mensah 1:35 p.m.
Madam Speaker, I rise to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Madam Speaker 1:35 p.m.
Hon Members, the House has accordingly approved the waiver of taxes and duties on equipment and materials to be imported and purchased locally -- I have not got down -- Clerk, yes what was captured in the motion? … To be imported and purchased locally, corporate and expatriate taxes amounting
Madam Speaker 1:35 p.m.


to €12,676,140.50, and US$4,207,213.60 and the cedi equivalent of corporate and --
Dr. Osei 1:35 p.m.
Madam Speaker, in the first
part of your rendition, you need to delete the corporate and the expatriate so that the first two should refer to the imported and purchased locally in the amount of €12,676,140.50 and US$4,207,213.20 and the cedi equivalent of corporate and expatriate taxes at the prevailing tax rate and exchange rate.
Madam Speaker 1:35 p.m.
At the prevailing
rate?
Dr. Osei 1:35 p.m.
Tax rate and exchange rate.
Madam Speaker 1:35 p.m.
Hon Chairman, if
you had brought us an amended copy, it would have helped. Nevertheless, I will read what I have got down.
This House has accordingly approved the waiver of taxes on the equipment and materials to be imported and purchased locally -- [Interruption.] And a cedi equivalent of corporate and expatriate taxes at the prevailing tax rate and exchange rate.
I hope that has been captured.
So Hon Members, we have adopted it and we have only to now, call upon the Deputy Majority Leader to inform us --
Mr. J. T. Akologu 1:35 p.m.
Madam Speaker, we have come to the end of the business on the Order Paper, except committee sittings which we can only do after adjournment. I, therefore, move that this House do now adjourn till tomorrow at 10.00 in the forenoon.
Mr. Kyei-Mensah-Bonsu 1:35 p.m.
Madam
Speaker, in rising to second the motion for adjournment, I want to indicate, that in my contribution earlier on, I never said I was assessing anybody in Leadership. I
think the statement was very clear; I never intended to assess anybody in Leadership and I think it should be for the record.
Madam Speaker, I second the motion for adjournment.
Question put and motion agreed to.
ADJOURNMENT 1:35 p.m.