Debates of 15 Jul 2009

MR. FIRST DEPUTY SPEAKER
PRAYERS 10:25 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:25 a.m.
Mr. First Deputy Speaker 10:25 a.m.
Hon Members, Correction of Votes and Proceedings -- Page 1?
\Prof. (Emeritus) S. K. Amoako: Mr. Speaker, item number 1, I am not very happy about the way it is captured there. It begins:
“The House met at Twenty minutes after ten o'clock in the forenoon. Prayers were read. The First Deputy Speaker took the Chair.”
I think we are all aware that, normally, the Speaker would take the Chair before the Prayers are said. So I am not very happy with the chronological sequence of events. The Speaker takes his Chair before Prayers are read. I need to be advised on this.
Mr. First Deputy Speaker 10:25 a.m.
Very well, I need advice from the Clerks as to whether it is a parliamentary way of putting it. But I agree with you that it is not chronological. I agree with you.
Mr. Emmanuel Owusu-Ansah 10:25 a.m.
Mr. Speaker, I am glad that this matter has been brought to the fore again. I remember I made a similar observation before, but it

was quietly washed away and nothing was done about it. I think it is about time now we did the right thing.
Mr. First Deputy Speaker 10:25 a.m.
We will take note --
Mr. J. T. Akologu 10:25 a.m.
Mr. Speaker, I am not trying to offer a solution, but I would have thought that it is after Prayers when proceedings begin, the Speaker would have taken the Chair to let proceedings of the House begin; that is why it is captured that way. But we would go back and visit it and see which is the practice. I thought that, that is the thing.
When the Speaker takes the Chair, then the proceedings of the House begin, that is why - They said after Prayers, the Speaker took the Chair. They are thinking that the Speaker takes the Chair before Prayers but I do not know. We will look at it again.
Mr. First Deputy Speaker 10:25 a.m.
Page 2?
Mr. A. U. Abdul-Razaq 10:25 a.m.
Mr. Speaker, I just want to go back to page 1. I was present yesterday and I have been marked absent.
Mr. First Deputy Speaker 10:25 a.m.
Have you been marked absent at page 1? You have to wait and when we get to where Hon Members are marked “absent” or “absent with permission” then you can do the necessary correction.
Pages 2, 3 . . . .6?
Mr. Abdul-Razaq 10:25 a.m.
Mr. Speaker, I was present yesterday and I have been marked absent at page 6.
Mr. First Deputy Speaker 10:25 a.m.
Which number?
Mr. Abdul-Razaq 10:25 a.m.
On page 6, item 4, where it is written “The following Hon Members were absent” and I am number 1.
Mr. First Deputy Speaker 10:25 a.m.
Very well.
Pages 7 and 8?
Mr. Akologu 10:25 a.m.
Mr. Speaker, on page 8, item 8, second paragraph, it reads:
“Moved by the Chairman of the Public Accounts Committee, Mr. Albert Kan-Dapaah and Seconded by the Deputy Majority Leader . . . ”
They should add “and Ranking Member of the Public Accounts Committee (PAC).”
Mr. First Deputy Speaker 10:35 a.m.
Very well.
Pages 9, 10 . . . .15.
The Votes and Proceedings of Tuesday, 14th July, 2009 as corrected is adopted as the true record of proceedings.

The Official Report of Saturday, 11th July, 2009 is adopted as the true record of proceedings.

Hon Members, Question time --

Question No. 121 -- Yes, Honourable.
Mr. Akologu 10:35 a.m.
Mr. Speaker, the Hon Minister for Energy is outside the country and has asked his Deputy to stand in for him. So I want to seek your permission and the indulgence of the House to allow the Deputy Minister for Energy to stand in for his Minister and answer the Questions.
Mr. First Deputy Speaker 10:35 a.m.
Hon
Minority Leader?
Mr. Osei Kyei-Mensah-Bonsu 10:35 a.m.
Mr.
Speaker, I have nothing against that, it is acceptable.
Mr. First Deputy Speaker 10:35 a.m.
Very well -- Hon Deputy Minister?
ORAL ANSWERS TO QUESTIONS 10:35 a.m.
MINISTRY OF ENERGY 10:35 a.m.
Mr. First Deputy Speaker 10:35 a.m.
Yes, Hon Member?
Mr. Boakye 10:35 a.m.
Mr. Speaker, we can
Mr. First Deputy Speaker 10:35 a.m.
Come
again?
Mr. Boakye 10:35 a.m.
Mr. Speaker, I am saying
that I am all right with the Answer, so we can move on to the second Question.
Mr. First Deputy Speaker 10:35 a.m.
Very
well. Question No. 122.
Service Wires to Kamirekrom, Adomakokrom, Mfrekrom, et cetera
(Provision)
Q. 122. Mr. George Boakye asked the Minister for Energy when service wires would be provided for the following communities:
(i) Kamirekrom
(ii) Adomakokrom
(iii) Mfrekrom
(iv) Anwiam
(v) Camp No. 1
(vi) Asempaneye
(vii) Denyase 1
(viii) Abuom.
Mr. Buah 10:35 a.m.
Mr. Speaker, the Ministry
of Energy has completed the electrification project at Mfrekrom under the ongoing US$90 million project package being executed by China Inter-national Water and Electric Corporation (CWE).
Installation works for High Voltage (HV), Low Voltage (LV) and substation works have been completed at Anwiam and customer service connections are on- going under the SHEP-4 Project.
HV and LV substation works have
been completed at Abuom and Camp No.1 under the SHEP-4 Phase-1 Project. Service connections will commence soon in these two communities as it is expected that all electrification projects under this package should be completed by the end of the year.
HV and LV works have also been
completed at Denyasi 1 under the SHEP-4. The outstanding works in this community is the installation of a transformer and service connections, which should be completed before the end of the year.
The electrification of Adomakokrom
and Kamirekrom is being undertaken solely by the Asunafo South District Assembly, without any technical and/or financial recourse to the Ministry.
Asempaneye has been earmarked to
benefit under the SHEP-4 but does not form part of the ongoing SHEP-4 Phase-1 Project currently being undertaken by the Ministry. The community will be considered under the subsequent phases of the SHEP-4.
Mr. Boakye 10:35 a.m.
Mr. Speaker, it is true
that the electrification at Adomakokrom and Kamirekrom was undertaken by the Asunafo South District Assembly. But a letter was written to the Ministry of Energy for support in the area of customer service connection. I want to know from the Minister whether this promise still holds good.
Mr. Buah 10:35 a.m.
Mr. Speaker, the Ministry
undertakes the electrification project under two programmes -- the National Electrification Scheme and the Self-Help Electrification Project (SHEP). Under the SHEP, communities within 20 kilometres of the national grid and can provide the low voltage poles would then be connected to the national grid. I would kindly assist
my Hon Colleague, if the community has met this criterion.
Mr. Boakye 10:35 a.m.
Mr. Speaker, as at
now all low voltage works have been completed, all high voltage works have been completed and the substation is also completed. What is left are the customer service connections. And as I have already indicated, a letter was written to the Ministry and the Ministry promised giving us service wires and this is what I want to know from the Minister whether this promise still holds good.
Mr. Buah 10:35 a.m.
Mr. Speaker, I have taken
due note of the information provided and I will follow up and due consideration would be given to the district.
Mr. Boakye 10:35 a.m.
Mr. Speaker, this issue of
service wire connections, if you go round the whole country, especially in the Brong Ahafo Region, a lot of projects have been completed. What is left are service wires. I want to know what is actually happening. Is there a shortage of service wires, and if there is, what is the cause?
Mr. Buah 10:35 a.m.
Mr. Speaker, I stated that
the Ministry is undertaking electrification project and the plan is to complete electrification in the entire country by 2020. And we are also undertaking another project through the SHEP programme. Now, if the district has met the criterion for SHEP, then the Ministry will assist, and under the circumstance that has been described, it sounds to me that the district has provided or met the criterion. I would be happy to look into that and ensure that the district is connected.
Mr. C. S. Hodogbey 10:35 a.m.
Mr. Speaker,
talking about regional distribution of electricity, does the Ministry have any particular quota for each region or any region which is able to provide low
voltage poles, that can take as much electricity into their communities? Or do they have any particular way where the electrification distribution is given to all different regions?
Mr. First Deputy Speaker 10:35 a.m.
Hon
Deputy Minister, if you can, please answer it.
Mr. Buah 10:35 a.m.
Mr. Speaker, the Ministry
has recently undertaken a comprehensive review of communities that have received electricity in each region. We currently have the percentages of each region. The programmes that would be implemented, all these things would be taken into account in terms of the regional coverage, the accessibility in each region and those regions that are behind will then be considered in the electrification programme in the coming phases that we are going to do.
Mr. J. B. Aidoo 10:45 a.m.
Mr. Speaker, in the Hon Deputy Minister's Answer, he indicated that the community would be considered under the subsequent phases of SHEP-4. Could the Hon Deputy Minister tell us how many phases we have under SHEP-4 and when the first of these subsequent phases is going to start?
Mr. Buah 10:45 a.m.
Mr. Speaker, as I stated here, the Ministry started the National Electrification Scheme and the plan was to complete electrification in the entire country in 30 years, that is 2020. But because of the clamour for electrification in various communities, the Self-Help Electrification Programme was introduced. It began with the SHEP-1. The SHEP-1 began in 1991/1992. We then moved to SHEP-2 from 1992 to 1994. Then we went to SHEP-3. And the SHEP-3 was divided into three phases. It took about 1,400 communities. We are currently in

the SHEP-4 phase. The SHEP-4 phase is still ongoing. We still have communities that are being implemented under SHEP-4.

We are considering the current packages that we have. And once those reviews are done, they would then be part of the SHEP-4 Phase-2.
Mr. First Deputy Speaker 10:45 a.m.
Question number 123.
National Electricity Grid to Boya, Daakoho, Mahinso, et cetera
(Connection)
Q. 123. Mr. Frank Boakye Agyen asked the Deputy Minister for Energy when the following towns would be connected to the national electricity grid:
(i) Boya
(ii) Daakoho
(iii) Mahinso
(iv) Adurom
(v) Anunya
(vi) Naama
(vii) Bimma No.1 and 2
(viii) Akokoaso
(ix) Ahensan (x) Obaapaninkrom
(xi) Attakrom
(xii) Putuom
(xiii) Awaham
(xiv) Brofoyedru
Mr. Buah 10:45 a.m.
Mr. Speaker, the Akokoaso, Ahensan, Awaham, Brofoyedru, Nkwan- kwaanua and Attakrom communities form part of the Ministry's ongoing elec-trification projects. The Ministry is presently providing HV poles to these project areas.
Obaapaninkrom, Putuom, Adurom, Anunya, Naama, Boya, Daakoho and Mahinso have been earmarked to benefit under the SHEP-4 but do not form part of the ongoing SHEP-4 Phase-1 Project. These communities will be considered under the subsequent phases of the
SHEP-4.
The Temaate and Bimma No.1 and 2 communities have been earmarked to benefit under the subsequent phases of the National Electrification Programme. On the other hand, these communities can apply for consideration under the SHEP.
Mr. Agyen 10:45 a.m.
Mr. Speaker, I want to draw the Hon Deputy Minister's attention to a document which emanated from the Ministry, which listed all the towns mentioned, and in particular narrowed on five towns -- Ahensan, Akokoaso, Anunya, Brofoyedru, Nkwankwaanua and Attakrom as towns ready and must be prepared to receive supply. May I know from the Hon Deputy Minister what has happened to that programme as of now?
Mr. Buah 10:45 a.m.
Mr. Speaker, as I stated, the SHEP-4 programme is ongoing - the electrification is ongoing. Those communities that currently have not received the supplies will be considered when the time comes.
Mr. Agyen 10:45 a.m.
Mr. Speaker, I want an assurance, because in the financial statement, that is the Budget for 2009, paragraph 426 of page 97, emphasis
was laid on certain communities that are earmarked to receive electricity supply as indicated by the Hon Deputy Minister. And the Hon Deputy Minister indicated that “soon”. How soon is that “soon” because the year is about ending? When exactly are these towns going to benefit from the supply of electricity?
Mr. Buah 10:45 a.m.
Mr. Speaker, those communities that are currently under the US$90 million China International Water and Electric Corporation are earmarked to be completed by the end of 2009.
Mr. K. S. Acheampong 10:45 a.m.
Mr. Speaker, I want to know from the Hon Deputy Minister - in his Answers, he mentioned high voltage and low voltage. I do not know the value of the voltage; is it thousand or million? Can the Hon Deputy Minister help me understand? I see high voltage in there, in all the Answers. I do not know the value of the voltage. Can he help me with the value of the voltage?
Mr. Buah 10:45 a.m.
Mr. Speaker, I am not sure of the import of the question. Is he asking for the meaning of the “high voltage” and “low voltage”? [Pause.] Is it specific of service wires?
What was the question again?
Mr. Acheampong 10:45 a.m.
Mr. Speaker, going through the Answers, I see “high voltage” and “low voltage”, and I am trying to get the subject very well. I am trying to find out from the Hon Deputy Minister what is the value of the voltage. Is it thousand voltage or one million voltage or whatever? That is what I really want to know. [Laughter.]
Mr. First Deputy Speaker 10:45 a.m.
Order! Order!
Hon Deputy Minister, what is the difference between “high voltage”

and “low voltage”, because you have mentioned them in your Answer? What is the difference between the two?
Mr. Buah 10:45 a.m.
Mr. Speaker, I would be happy to provide the exact answer to the Hon Member. But the “high voltage”, as the description is, to the layman, is high and “low voltage” is low. [Laughter.]
Mr. R. A. Tawiah 10:45 a.m.
Mr. Speaker, I would like to ask the Hon Deputy Minister when areas in my constituency like Azza, Boti, Abrewamkor and the other areas will be provided with electricity.
Mr. First Deputy Speaker 10:45 a.m.
You are out of order. That is a substantive Question.
Question number 124.
Petroleum Products (Price Build-up)
Mr. Buah 10:45 a.m.
Thank you, Mr. Speaker -- [Interruptions.]
Mr. First Deputy Speaker 10:45 a.m.
Excuse me.
Hon Members, the background noise is too much. Let us listen to one another.
Mr. Buah 10:55 a.m.
Mr. Speaker, the National Petroleum Authority (NPA) was established by Act 691, 2005 as an independent body to regulate, oversee and monitor activities in the petroleum downstream industry. The Act empowers NPA to publish ex-refinery prices and ex-pump prices of petroleum products
Mr. Buah 10:55 a.m.


based on the prescribed petroleum pricing formula.

The NPA's pricing formula for the ex- pump prices of petroleum products is as follows:

Ex-Pump Price = Import Parity Landed Price + Gov't Taxes and Levies + Distribution Margin.

The petroleum price review of June 6th conducted by the NPA that resulted in an average of 30 per cent increase was informed by the upward movement of the price of landed petroleum products during the review period.

It is important to note that there was no change in taxes and levies during this review period. There was also no change in the Integrated Distribution Margin.
Mr. Twumasi 10:55 a.m.
Mr. Speaker, the second paragraph gives us the formula for the pricing of the petroleum products. But to enable Hon Members and the whole country appreciate the Answer, will the Hon Deputy Minister tell us the figures and items involved in the formula? [Hear! Hear!]
Mr. Buah 10:55 a.m.
Mr. Speaker, I must state that the Ministry and the Government are clearly aware of the impact of the increase and the challenges that were involved. The Ministry's responsibility here today is to provide the basis for the increase and I would be happy to provide the detailed numbers to the Hon Member at a later time.
Mr. Twumasi 10:55 a.m.
Mr. Speaker, I am sorry the Hon Deputy Minister is unable to give an answer to this simple question. The question I asked demanded that we got this information to enable everybody appreciate the 30 per cent increase in the prices of petroleum products. But if he is telling us that he has only given us the
formula and would want to come back later, then it means that the Question has not been answered. May I, therefore, suggest that he comes back appropriately to answer this Question?
Mr. First Deputy Speaker 10:55 a.m.
Hon Member, you have laid a certain foundation, kindly ask the question based on that foundation which you have laid.
Mr. Twumasi 10:55 a.m.
Mr. Speaker, will the Hon Deputy Minister inform us - [Pause] -- give us the figures involved in the formula given in his Answer?
Mr. Buah 10:55 a.m.
Mr. Speaker, the NPA's mandate since 2005 has not changed. The NPA's mandate is to set petroleum prices and Mr. Speaker, I am here today to give the Honourable House the basis on which the NPA set the prices. I would be very happy to get the NPA to meet with the Committee to provide the detailed numbers, if that is needed. [Uproar!]
Mr. Twumasi 10:55 a.m.
Mr. Speaker, will the Hon Deputy Minister inform this House what the components of the import parity landed price are? [Pause.]
Mr. Buah 10:55 a.m.
Mr. Speaker, the com- ponents of the import parity landed price have to do with the Free On Board (FOB) cost, the insurance, the freight and other related charges.
Mr. First Deputy Speaker 10:55 a.m.
Hon Member, you have exhausted your supplementaries. [Uproar!] You have asked three, but -- [Interruptions.] Hon Members, he has asked three questions, but I will allow him to ask the last supplementary question.
Mr. Twumasi 10:55 a.m.
Mr. Speaker, thank you
very much for allowing me to ask this one.

But my last question is, how much of the ex-refinery deferential is placed on each of the petroleum products?
Mr. First Deputy Speaker 10:55 a.m.
Hon Member, let me hear the question again. Hon Members, order!
Mr. First Deputy Speaker 10:55 a.m.
Hon Deputy Minister?
Mr. Buah 10:55 a.m.
Mr. Speaker, with all due respect, my intent was to provide genuine answers to Hon Members as much as possible. But in practical terms, as I said, price build-up at the time, as we all know, was that -- [Interruptions] - the crude prices -- [Interruptions.]
rose
Mr. First Deputy Speaker 10:55 a.m.
Hon
Majority Leader?
Mr. Bagbin 11:05 a.m.
Mr. Speaker, I am up on my feet to assist you to maintain some order. [Interruptions.] It is the duty of Leadership to assist the Speaker to maintain order. You will learn from me; learn from me.
It is important that the Hon Deputy Minister be allowed to answer the question. So when you make one statement and then
Hon Members shout in chorus, it is not -- The Hon Member for Adansi Asokwa [Mr. K. T. Hammond] just left the Ministry. He is telling us today that he does not know the price build-up. [Interruptions.] He is saying it today. [Interruptions.]

The Hon Deputy Minister is going to answer the question and the details; if he wants the percentages, the Hon Deputy Minister is prepared to give him. But the Hon Deputy Minister is not prepared to say untruths. If he has not got the data here, he will tell him to give him time. He will bring him the total data. So please, he should allow the Hon Deputy Minister to give him the details that he has. The shouting will not answer his question.
Mr. First Deputy Speaker 11:05 a.m.
Hon Minority Leader, you know the noise at the background and interjections, what do you say to that?
Mr. Kyei-Mensah-Bonsu 11:05 a.m.
Mr. Speaker, I believe as is the tradition in the House, some amount of heckling is allowed, particularly if a Minister is being rather circuitous in the answers that he is providing. So I guess that we may have some direction from you. If the Hon Deputy Minister does not know, he may say that he does not know, and that he would want to come back. But if he knows, he should go straight to the point without being circuitous and without indulging in any exercise of prevarication.
May I Mr. Speaker, say that the noise is coming from both sides of the House. It is getting rather high, so you may direct that we have some decorum in the House to allow the Hon Deputy Minister, at least, to hear the questions that are posed to him.
I thank you.
Mr. First Deputy Speaker 11:05 a.m.
Hon Members, the issue of noise on the floor of the House has come to the attention of
Mr. Buah 11:05 a.m.
Mr. Speaker, I believe that the intent of the question is to make sure that Hon Members have enough information on the price build-up for reference purposes. Because of that I intend to make sure I give Hon Members the comprehensive record. So for their record, I will make sure I provide that information. It is a very lengthy process and I believe that this will not be the forum to go through each of the tabulations. So I will be happy to provide the information to each Hon Member.
Mr. First Deputy Speaker 11:05 a.m.
Do you want to place it on the Table? Then you should lay it. You should put it on the Table to be distributed to Hon Members so that they can get the details.
Mr. Buah 11:05 a.m.
Mr. Speaker, yes.
Mr. First Deputy Speaker 11:05 a.m.
Very well.
Mr. Joseph Kofi Adda 11:05 a.m.
Mr. Speaker, in the Hon Deputy Minister's Answer, paragraph 3, he stated that the 30 per cent
Mr. Buah 11:05 a.m.
Mr. Speaker, the formula
for reaching the 30 per cent is a formula that has been universally accepted. The NPA has the mandate of this House to do exactly what it has done. I would be happy to provide all that information to the Hon Member.
Mr. Adda 11:05 a.m.
Mr. Speaker, I asked specifically, one question. The TOR debt was cited as a major reason why the prices of petroleum products were increased by 30 per cent. In the formula, I do not see that. Is he telling this Honourable House and the entire country that the 30 per cent price increase in petroleum products has nothing to do with the TOR debt? And also the 25 per cent differential, what accounts for that and what is going to be done with that?
Mr. First Deputy Speaker 11:05 a.m.
Hon Member, was that statement given on the floor? The TOR debt as the basis for the increase, was it given on the floor? If it was given on the floor, then I will let the Hon Deputy Minister answer the question, but if it was not given on the floor, I will not let him answer the question.
Mr. Adda 11:05 a.m.
Mr. Speaker, the sub-
stantive Minister gave that in this House.
Mr. First Deputy Speaker 11:05 a.m.
Order! Hon Members, the practice is that the Hon Deputy Minister must be held responsible for the answers that he provides to this Honourable House, that is why I am asking whether the TOR debt information was given on the floor of the House. [Inter- ruption.] When was it given? I need some guidance. When was that given?
Mr. Adda 11:05 a.m.
Mr. Speaker, when he came here to talk about the TOR debt matter.
Mr. First Deputy Speaker 11:05 a.m.
Hon Ranking Member, can you ask another question?
Mr. Adda 11:05 a.m.
Mr. Speaker, there is no better question than telling this whole country that the TOR debt is not an issue. We need to know. There is no better question than that question.
Mr. First Deputy Speaker 11:05 a.m.
Hon Ranking Member, I must be very clear in my mind in making my rulings. We know, as the Hon Minority Leader rightly pointed out, some level of heckling is allowed but there are limits to heckling. So I needed guidance from you that on so and so date when “X” Minister appeared before the House, that was the information he had provided and I will allow the Hon Deputy Minister to answer the question.
That is all that I am saying because that information you are providing is not in his Answer. So if you are telling me that the Official Report of this day -- that was what the Hon Minister said, I will allow the question. That is all that I am saying, otherwise, I will be in difficulty to allow that question because the Hon Deputy Minister did not say that and it is also not

in his Answer which he has provided to this Honourable House. That is the point that I am making.
Mr. Adda 11:05 a.m.
Mr. Speaker, I think the day that the Hon Minister came here to explain the TOR debt, questions were asked about the price increase and I think you were here. I cannot remember the exact date. But that answer was given in this House.
Mr. Speaker, the question really is, should the whole nation know that the TOR debt is not part of the price build-up formula? It was just an increase based on the global increase in the prices of petroleum products, therefore, nobody should talk about TOR debt anymore. We need to know from him.
Mr. First Deputy Speaker 11:15 a.m.
Hon Deputy Minister, you have given us the formula, but the TOR debt is not in it and that is why he is asking questions. Answer the question. [Laughter.]
Mr. Buah 11:15 a.m.
Mr. Speaker, I want to put

Yes, the TOR Recovery Levy is part of

it. So far, the Government has collected thirty million and that money is going to be used to pay the debt. The Government has so far paid one hundred and sixty-one million of the outstanding debt to the oil marketing companies so that they will be in a position to have letters of credit to import.
Mr. E. M. Ennin 11:15 a.m.
Mr. Speaker, I would like to ask the Minister this question. Will the payment of the debt be completed before any reduction is made,
Mr. First Deputy Speaker 11:15 a.m.
I did not hear the question.
Mr. Ennin 11:15 a.m.
Mr. Speaker, will the payment of the debt be completed before any reduction is made, given that global prices are falling?
Mr. Buah 11:15 a.m.
Mr. Speaker, the NPA is mandated by this House to review the pricing of petroleum products. The NPA meets bi-weekly to review that and I am sure that by the time the NPA makes that decision, we will be in a position to comment on that. [Interruptions.]
Mr. Kyei-Mensah-Bonsu 11:15 a.m.
Mr. Speaker, I have some difficulty. Given the instance in the subject matter, I plead with you to allow the Hon Member for Adansi Asokwa to ask, even if it is one question before I come with mine.
Mr. First Deputy Speaker 11:15 a.m.
All right, we agreed to take three from both sides and the list has been submitted to me from the Minority side, and that was the reason why I was calling the Minority Leader. So Hon K. T. Hammond.
Mr. K. T. Hammond 11:15 a.m.
Mr. Speaker, the Question as identified at page 2 on the Order Paper demanded some sort of answers in terms of figures.
I have got a letter signed by Mr. Alex Mould, the Acting Chief Executive of the National Petroleum Authority. He seemed to provide answers that the Hon Deputy Minister is struggling to provide to this House.
I want to ask the Hon Deputy Minister whether he is aware that what he describes as Import Landed Parity Price has an ex- refinery differential component in there.

And if he is aware, how much in Ghana cedis and pesewas is that in the document?
Mr. First Deputy Speaker 11:15 a.m.
Hon Deputy Minister, are you aware?
Mr. K. T. Hammond 11:15 a.m.
Mr. Speaker, if he is not aware, he should tell us.
Mr. First Deputy Speaker 11:15 a.m.
Hon Deputy Minister, go and answer the question.
Mr. Buah 11:15 a.m.
Mr. Speaker, I am not aware. But the Hon Member has access to the Chairman of the NPA and I am sure that I will work with him so that he can get all the information he needs.
Mr. Kyei-Mensah-Bonsu 11:15 a.m.
Mr. Speaker, the specific question is to ask the Minister responsible for Energy what price build- up informs the recent 30 per cent increase in petroleum products. The Minister in his Answer has said, that is the last paragraph:
“The petroleum price review of June 6th conducted by the NPA that resulted in an average of 30 per cent increase in the price of petroleum products was informed by the upward movement of the price of landed petroleum products during the review period.”
Mr. First Deputy Speaker 11:15 a.m.
Hon
Minority Leader, kindly continue.
Mr. Kyei-Mensah-Bonsu 11:15 a.m.
Mr. Speaker, given the fact that the price increase was 30 per cent and that the changes in government taxes were zero, levies zero, margins zero, how does the Deputy Minister justify the 30 per cent increase in the ex-pump price?
Mr. Buah 11:25 a.m.
Mr. Speaker, the point I was making was that for the purpose of the Hon Leader's, I would like to clarify that. Government taxes and levies before the reduction on March 9th was 27.76 Ghana pesewas per litre. It was 15.92 pesewas per litre on June 6th and that did not change. The distribution margin was 15 Ghana pesewas and that also did not change.

Mr. Speaker, clearly, all Hon Members are aware that within the review period, there was a jump from $40.00 a barrel of crude oil to $70.00 [Interruptions.] $40.00 and then also -- Mr. Speaker, that is exactly why I have been unwilling to get into the numbers game. I would be very happy to make sure that I get the exact data and that is why I am providing these figures. So the Hon Member should kindly accept these numbers.

I do not want us to debate numbers here. But the change was obviously necessitated by the increase in crude prices and other factors. That is what I am saying; I will provide the numbers for him.
Mr. First Deputy Speaker 11:25 a.m.
Hon
Members, Question No. 125.
Mr. Kyei-Mensah-Bonsu 11:25 a.m.
Mr.
Speaker, with respect, I believe that for purposes of the Question in issue, that is Question 124, it is important that we lay the document which the Hon K. T.
Hammond mentioned; I think it is very important so that we are sure in our minds that nobody is misleading anybody. Of course, if the Minister gets to know and has to reconcile the figures and the answers, he may then do so. So we would lay that Paper.
If an Hon Member refers to a
document, it could be laid on the floor. [Interruptions.] On whose instructions? It is the Majority Leader, certainly not on your instructions.
Mr. First Deputy Speaker 11:25 a.m.
Hon
Minority Leader, it is good that this House is duly informed. If an Hon Member says that he has a certain information, he should make it available so that we can also see it -- As for laying, I am not too sure whether that is the proper procedure but be as it may, make that information available to Hon Members so that the House can look at it at the appropriate time and reconcile.
Mr. Hammond 11:25 a.m.
Mr. Speaker, can
I hand it over to the Clerk's desk? That seems to answer the question that the Deputy Minister could not handle.
Mr. First Deputy Speaker 11:25 a.m.
Hon Members --
Mr. Hammond 11:25 a.m.
The Clerk - the
answer is here, the ex-differential is here, the 30 per cent is explained and the 10,000 cedis that they have hidden in there are all here.
Mr. First Deputy Speaker 11:25 a.m.
Hon K.
T. Hammond, you cannot lay it because you are not the author of the document. You cannot. You can make it available as a source of information in reconciling it. If you are the author of the document, that would have been a different matter. I am sure somebody else signed it, yes, so the Hon Minority Leader made the suggestion but let us get the document that the Hon Deputy Minister has laid in his official capacity, then we will reconcile it. You do not need to lay it.
Mr. Hammond 11:25 a.m.
Mr. Speaker, you said
we should make it available to the House; are you ruling that we should keep it, we should not make it available to the House?
Mr. First Deputy Speaker 11:25 a.m.
There
is what we call “usual channels of communication”. We shall use both usual channels of communication to get the document.
Mr. Hammond 11:25 a.m.
Then those channels
do not include handing them over to the Clerks in the Chamber.
Mr. First Deputy Speaker 11:25 a.m.
Hon
Members, Question No. 125.
rose
Mr. First Deputy Speaker 11:25 a.m.
The Hon

Hon Members, just as you can also heckle, the Speaker also has certain powers. [Interruptions.] Hon Members, let us listen to him.
Mr. Ambrose P. Dery 11:25 a.m.
Mr. Speaker,
now that you have given me the chance, I can be heard.
Mr. Speaker, it is the duty of Leadership to make certain vital corrections that this House will not be misled. The Deputy Minister, in answering the last question, if you call it an answer, did say that fuel prices rose from $40.00 to $70.00 per barrel and I think that that was totally inadequate. The highest was $68.00 and it did not start from $40.00 within that week. So I want to put that on record and I think that it is in the interest of the whole House that I should do so.
Mr. Bagbin 11:25 a.m.
Mr. Speaker, the Deputy Minister did say that it rose from $40.00 to about $70.00. [Interruptions.] $68.00 is about $70.00. [Interruptions.] Please, $68.00 and $69.00 are about $70.00. I do not see any untruth about this. “About $70.00” does not mean $70.00. [Interruptions.] I think that we should move away -- we have gone to the next Question, do not take us backward.
My Colleague, the Deputy Minority Leader had the chance because he is part of Leadership and Mr. Speaker should always recognize the essential role of Leadership -- and he got the bite. We have finished with that bite, let us go to the next Question, there are other Questions.
Again, it is important for Hon Members to make sure that they catch the eye of the Speaker. But when we are talking about heckling in the House, it is heckling of Hon Members of Parliament not of the Speaker. You do not heckle the Speaker. That is why -- [Interruptions.] Well, you are entitled to heckle me but you are not entitled to heckle the Speaker and I am drawing your attention--[Inter-ruptions.] That is why in the Standing Orders, you can only challenge the ruling of the Speaker by a substantive motion. That is stipulated in our Standing Orders.
My last point -- heckling does not mean shouting. [Interruptions.] And Hon K. T. Hammond knows very well as an experienced Parliamentarian that when you have to move from that seat, which is occupied by the Minority Leader and go round, you have to bow and you did not. [Interruptions.] He rather on the way shouted “Shame”. I do not know whether that “Shame” was to the Speaker or to me.
Mr. First Deputy Speaker 11:25 a.m.
Hon
Members, we have a very tall Order today as you can see from the Order Paper. I want everybody to ask his or her Question as stated on the Order Paper; I do not want

the situation where I will order that the Answers to the remaining Questions be printed in the Hansard. So let us move on to Question No. 125.

National Electricity Grid to towns in Amansie West District

(Connection)

Q. 125. Ms. Grace Addo asked the Minister for Energy when the following towns in the Amansie West District would be connected to the National Electricity Grid:

(i) Nipankyeremia

(ii) Nyamebekyere

(iii) Banko

(iv) Pakyi Keniago

(v) Kwahu

(vi) Domi Beposo.
Mr. Buah 11:25 a.m.
Mr. Speaker, Nipankyere- mia, Nyamebekyere, Banko, Pakyi- Keniago, Kwahu and Domi Beposo, although earmarked to benefit under the SHEP-4, do not form part of the ongoing SHEP-4 Phase-1 Project. These commu-nities will be considered under the subsequent phases of the SHEP-4.
Ms. Addo 11:35 a.m.
Mr. Speaker, as an Hon Member of Parliament representing a constituency, I have to be very factual. But the Deputy Minister's Answer provided here has not given me the exact phase that the communities will also benefit from. Will he please tell me when exactly the communities will be considered under the SHEP-4 Project?
Mr. Buah 11:35 a.m.
Mr. Speaker, the Ministry
Prof. (Emeritus) Samuel Kwadwo Amoako 11:35 a.m.
Mr. Speaker, in almost all the answers given by the Deputy Minister, he mentioned SHEP-4 Phase-1 and so on, and an Hon Member asked him how many phases we do have in each SHEP. They are now up to SHEP-4. How many phases do we have in SHEP-4?
Mr. Buah 11:35 a.m.
Mr. Speaker, as I stated, we started from SHEP-I, SHEP-2, SHEP-3 Phase 1, Phase II and Phase III. We are on SHEP-4 Phase 1, and we are going to go to Phase II, Phase III and possibly Phase V. For example, in the SHEP-3, we undertook electrification for 1,400 communities. On SHEP-2, we did it for 400 communities. The consideration is always based on the amount we have and how many communities that we can cover. This classification is determined by the amount we get as we go forward. But we are currently on SHEP-4 Phase 1.
Some Hon Members 11:35 a.m.
How many?
Mr. Buah 11:35 a.m.
I think I have explained that the intent is to go on with the phases until we ensure that the entire country has electricity.
Mr. Speaker 11:35 a.m.
Question number 126.
National Electricity Grid to Nabore, Lingbensi and Busunu
(Connection)
Q. 126. Mr. Sammy Bavug Wusah asked the Deputy Minister for Energy
Mr. Buah 11:35 a.m.
Mr. Speaker, the Nabore, Lingbensi and Busunu communities do not form part of the ongoing electrification projects currently being undertaken by the Ministry. These communities will be considered under the subsequent phases of the National Electrification Programme when funds are available.
Mr. Wusah 11:35 a.m.
Mr. Speaker, can the Hon
Deputy Minister tell us when funds for this project would be available?
Mr. Buah 11:35 a.m.
Mr. Speaker, I am happy to report that we are currently reviewing the US$170 million China Exim Bank facility. We are also looking at the US$350 million US Exim Bank facility and these facilities will be used to continue with the projects.
I think as I stated, a comprehensive review has been done and we have actually identified regions and districts that are completely behind in terms of accessibility and those regions which are behind would be brought up to make sure that there is fairness in the electrification process.
Mr. First Deputy Speaker 11:35 a.m.
Hon Members, that brings us to the end of Question time.
Mr. First Deputy Speaker 11:35 a.m.
Hon Deputy Minister, we are grateful for attending upon the House to answer Members' Questions.
Hon Majority Leader, are we taking the

Statement or we will take it tomorrow? I need your guidance.
Mr. Bagbin 11:35 a.m.
Mr. Speaker, I propose that we take the Statement tomorrow. We will take the Statement tomorrow to thank His Excellency President Barack Obama for his address to the House. So we will do that tomorrow.
Mr. First Deputy Speaker 11:35 a.m.
Very well. Item 5 -- At the Commencement of Public Business - Presentation and First Reading of Bills.
Mr. Bagbin 11:35 a.m.
Mr. Speaker, I will want to plead that we take item 6 first -- Laying of Papers while we wait for some further instructions on Item 5.
Mr. First Deputy Speaker 11:35 a.m.
Very well. Item 5 deferred - Laying of Papers, by the Minister for Finance and Economic Planning.
Mr. Bagbin 11:35 a.m.
Mr. Speaker, may I kindly request your permission and the indulgence of Colleague Hon Members of Parliament to allow the Deputy Minister for Finance and Economic Planning to lay the itemized Papers under (6) (a) on behalf of the Minister for Finance and Economic Planning.
The Minister for Finance and Economic Planning is at present engaged in some discussions at the President's Office and that is why he is not yet in the House to do so. So I am craving the indulgence of my Colleagues to allow the Deputy Minister to do that on his behalf.
Mr. First Deputy Speaker 11:35 a.m.
Very well.
PAPERS 11:35 a.m.
Dr. A. A. Osei 11:35 a.m.
Mr. Speaker, I need to be guided. We met yesterday to look at these issues. As a Ranking Member, I have not sighted the Report at all. I am surprised that as a -- [Interruption.] I want to state this for the record. The Agreement is that at least, the Chairman and Ranking Member will look at it. It is the working agreement standing so that we have no problems with the Papers. At least, you have to see it before it is laid.
And I think that committees should not be operating that way at all. It is not good for this House.
Mr. First Deputy Speaker 11:35 a.m.
Hon Majority Leader, I was going to find out from the Ranking Member whether he is insisting or we should go ahead but not repeat it in future.
Hon Dr. Osei, are you insisting so that it does not happen in the future?
Dr. Osei 11:45 a.m.
Mr. Speaker, it is because I
do not know what is being laid. At least, since there are no problems with it, I do not see why I should not see it before it is laid. But if the choice is not for me to see it before it is laid, then I resist. The minimum -- let me see it before it is laid. It is only prudent.
Mr. J. K. Avedzi 11:45 a.m.
Mr. Speaker, this
is an arrangement between the two of us, we have been doing that. This is outside what happens on the floor of the House. But this morning, I was actually caught up somewhere, that is why -- So I will make it available to him.
Dr. Osei 11:45 a.m.
Mr. Speaker, since the Hon
Chairman concedes that the protocol was not observed, we can go ahead, with liberty to come back if I have some problems.
By the Chairman of the Finance Committee
-- 11:45 a.m.
Mr. Hackman Owusu-Agyemang 11:45 a.m.
Mr. Speaker, I have always had difficulties with the way the referrals are made in this House. I believe that the Finance Committee takes care of the, if you like, banking and financial aspects of the whole transaction. There must be the technical committee which will also assess it. I made this point in the last Session and I thought that it would be taken on board.
It could be appropriate that these
referrals are made to joint committees because the technical input -- You want to talk about the three water systems and then the Committee on Water Resources, Works and Housing is not there. It is not the Finance Committee which is supposed to know everything in this country. So I think that we should systematically be minded to include the technical committee there.
The Finance Committee will advise the technical committee as to its acceptability, the terms and what have you. But when it comes to whether you are doing Konongo water or Kumawu water or whatever, or the methodology being used -- Because that would itself determine the amount that should be - For example, if you take the water from the mountains in Kwahu, some people are suggesting it goes overhead, others are suggesting it goes under-ground and all these will determine the price.
I do not see how we consistently keep
referring all these things to only the Finance Committee. It is completely out of order; it is not proper and I do not think we get the full benefit of the technical select committees in this instance.
I sincerely believe that you would have to really revisit that issue and make sure that the technical committees are involved in the appraisal. It is an appraisal, an appraisal of all the things that come here. I do not honestly believe that we are doing justice to what we must be doing.
The point that I got up earlier on but which maybe, I did not catch your eye on was the fact that we have so many Questions for a day but we are not allowed to do justice to them. So again, I think you may have to consider that.
But the most important today for me, is on the issue of referral to the Finance Committees. It becomes “a know it all committee” and I do not think this is what our Standing Orders stipulate and this is what the country needs. I think we must do it better and refer it to joint committees and let them meet and that brings better interaction on all issues.
So really, it has been done. But I think from now on, we should address all these things to joint committees except when it is purely financial, like the World Bank for multi-donor budget support and what have you. But all others, I think, should go to joint committees.
Mr. Avedzi 11:45 a.m.
Mr. Speaker, I want to refer you to Standing Order 169 and with your permission, I beg to quote:
“The Committee on Finance shall be composed of twenty-five Members, to which shall be referred Bills, inquiries and other matters
Mr. First Deputy Speaker 11:45 a.m.
Hon Members, we should not prolong this matter. There is a point in what he is saying. We normally do it at times but I have also been advised that with the loan agreements, we are more interested in the terms and conditions and that is why we should refer them to the Finance Committee. That is the advice the Speaker's Office has received on this matter.
But I also know that in the past, we had referred some of these things to joint committees. So if it is the decision of the House that in future we go back to the former practice, I do not have any objection. But let us discuss this matter with the Leadership of the House, and then we get the subject matter committees in addition to the Finance Committee. I think that it will not undermine the work of the House.
Hon Members, thank you very much.
Hon Deputy Majority Leader, are we
taking item 7 on the Order Paper?
Mr. J. T. Akologu 11:45 a.m.
Yes, Mr. Speaker.
Mr. First Deputy Speaker 11:45 a.m.
Very
well. Chairman, Hon Members, item 7 on the Order Paper.
MOTIONS 11:45 a.m.
Dr. A. A. Osei 11:45 a.m.
Mr. Speaker, before I
second the motion, I want to reiterate my earlier submission that this is exactly the reason why, at least, one should get a copy of the Report so that - for the earlier ones, 6 (b) (i), (ii), (iii) and (iv) but I second the motion.
Question put and motion agreed to.
Resolved accordingly.
GOG/IDA Credit Agreement to Finance the Transport Sector Project
Chairman of the Finance Committee
(Mr. J. K. Avedzi): Mr. Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Credit Agreement between the Government of the Republic of Ghana and the International Development Association (IDA) for an amount of SDR150.5 million (US$225.0 million equivalent) to finance the Transport Sector Project.

In doing so, I wish to present the Report of your Committee.

1.0 Introduction

The Credit Agreement between the Government of the Republic of Ghana and the International Development Associa- tion (IDA) for an amount of SDR150.5 million (US$225.0 million equivalent) to finance the Transport Sector Project was laid in the House on Monday, 6th July, 2009 in accordance with article 181 of the 1992 Constitution of the Republic of Ghana.

Pursuant to article 103 and Order 171 (1) of the Standing Orders of the House, the Agreement was referred to the Finance Committee for consideration and report.

The Committee subsequently met and considered the Agreement with the Minister for Roads and Highways, Hon Joe K. Gidisu, Deputy Minister for Finance and Economic Planning, Hon Fifi Kwetey, officials from the Ministries of Finance and Economic Planning (MOFEP) and Roads and Highways and hereby presents this Report.

2.0 Background

The size of Ghana's economy would need to be doubled in order to achieve the country's vision of achieving a middle-income status by the year 2015 within a democratic and decentralized environment. The vision of middle- income status requires that gross domestic product (GDP) grows by six to eight per cent (6%-8%) per annum and per capita income rises from around US$400 to US$1,000 by 2015.

One of the major building blocks for achieving growth and poverty reduction is transport infrastructure. The transport

sector is critical in providing access to jobs and markets and plays a strategic role in the economy of Ghana, accounting for about five per cent (5%) of GDP and generating a significant share of government revenue.

The transport sector also serves and facilitates other sectors. It is evident internationally that there is a strong positive correlation between road investment (on one hand) and growth and poverty reduction (on the other hand).

An assessment of impact of investment in road infrastructure in Ghana conducted over the period 2005-2008 revealed that there is a direct positive correlation between the incidence of poverty and road condition in Ghana, even though this correlation does not suggest a casual relationship.

The Road Sector Development Programme (RSDP) was commenced by the then Ministry of Roads and Transport in 2001 with a total cost of US$1.2 billion, out of which 75 per cent was contributed by the Development Partners and the balance of 25 per cent funded by the Government of Ghana. The International Development Association (IDA) has already supported the Road Sector Development Project (RSDP) with a credit of two hundred and twenty million dollars (US$220.0 million) which closed in June 2008.

The estimated cost of the Transport Sector Development Project is US$4.8 billion, of which US$255 million is for the aviation sub-sector, US$1.4 billion for maritime and railways sub-sector, and US$3.1 billion for roads sub-sector. The Government has secured funding for

US$2.4 billion and is looking at options to finance the funding gap.

The Transport Sector Project (TSP) is a component of the TSDP which the International Development Association (IDA) is funding with this credit facility of US$225.0 million (thus, SDR150.5 million).

3.0 Purpose of the Loan

The purpose of the facility is to finance the Transport Sector Project with the objective to improve mobility of goods and passengers through reduction in travel time and vehicle operating cost, and to improve road safety standards.

4.0 Terms and Conditions

The terms and conditions of the facility are as follows:

Interest Rate : Nil

Service Charge : ¾ of 1 per cent (or 0.75%) on withdrawn credit balance

Commitment Charge : maximum of one half of one per cent (0.5%) per annum on unwithdrawn Financing

balance

Grace Period : 10 years

Repayment Period : 25 yea r s exc lud ing g race pe r iod (January 1 and July 1 of each repayment year)

Payment Currency : United States Dollars.

5.0 Observations

The Committee observed that the objectives of the Transport Sector Development Project would be achieved through strengthening the capacity of transport institutions in planning, regulation, operations and maintenance and through investment in infrastructure.

The Committee noted that repayment of the principal would commence on July 1, 2019 at the rate of 1.25 per cent up until January 1, 2029 and thereafter at the rate of 2.25 per cent up until January 1, 2044.

The Committee observed that major achievements of the Road Sector Development Project include the following:

·

Improvement in the quality of road network from 29 per cent good, 27 per cent fair and 44 per cent poor (in 2002) to 39 per cent good, 29 per cent fair and 32 per cent poor in 2007 with a recorded 40 per cent increase in the road length.

·
Dr. A. A. Osei (NPP - Old Tafo) 12:05 p.m.
Mr. Speaker, I rise to support the motion numbered 8 and to make a contribution. I want to urge all Hon Members of this House to adopt the Report of the Finance Committee.
Mr. Speaker, my contribution will be very short and simple. First of all, we need to understand that this part of $525 million facility that the Government of

Ghana is contracting from the World Bank -- We have already looked at the first $300 million.

But we ought to know that because there is a ceiling of $450 billion per year to Ghana, once we access the $300 million, then the maximum this year that we can access on all World Bank projects will be $150 including this Transport Sector Programme.

What I suggest is that it is not likely that a lot of it will come this year. But Mr. Speaker, I want to urge the Hon Minister for Roads and Highways to while keeping this in mind remember that for effective implementation of these projects, the pre- implementation plans ought to be ready this year.

Unfortunately, there is a record of very slow implementation of transport projects and we have a lot of money locked up in the World Bank portfolio, currently, over $600 million, because of slow imple- mentation.

In particular, I am concerned about the issues that are surrounding the Bus Rapid Transport (BRT) Programme. We are aware that some people who are not completely informed about the projects, particularly the Ghana Private Road Transport Union (GPRTU), because they have not been fairly educated about it, are already trying to raise issues with it. This particular programme has been in the planning for over two years.

It will be unfortunate that the stakeholders who are supposed to be benefiting from it are now clamouring against it. And as I indicated to the Hon Minister yesterday, for me in particular, this is one area that I would ask him to do -- and this is the Hon Minister for Roads

and Highways -- a lot of education so that this particular project can be executed successfully.

Mr. Speaker, it is good if we look at the components going to the transport sector. But let me go to page three of the Report; Mr. Speaker, coming from page two we are told that the Transport Sector Project (TSP) needs $4.8 billion and out of that, on page three it says, “the Government has secured funding for $2.4 billion”.

Mr. Speaker, it will be important to assure ourselves that this is in actual fact true. Because if we have not secured the $2.4 billion, then there would be some funding gaps and consequently, we will not be able to implement this project. So I hope the Hon Ministers of Finance and Economic Planning and Roads and Highways can assure this House of the sources of this $2.4 billion. This is because as one can see, we are only approving about $225 million. I am aware that other partners, particularly the European Union may be coming on board. But such statements, if found to be incorrect, can lead to severe funding gaps and hence serious implementation problems.

Mr. Speaker, the $50.5 million that is going to the feeder roads in all ten regions of the country, I hope the distribution will be done in such a way that it will not be political. [Interruptions.] I hope the Hon Minister is hearing me that all Ghanaians would benefit equally from these projects. The former Minister for Roads and Highways is sitting on my right hand side; that was the policy he was implementing and I hope his successor will continue with that implementation.

Mr. Speaker, having said that, in spite of this US$225 million, there is an urgency to source a lot more funding for the road

infrastructure programme. As you recall, last year, the Hon Minister brought some facility that we could not execute, but I want to urge the Hon Ministers for Finance and Economic Planning and Roads and Highways to move very quickly to secure more funding. This is because if the requirements are, as we are told, 4.8 billion, I am quite aware that we have not secured close to 1 billion. So we need to move very fast.

Mr. Speaker, with these few words, I want to urge all Hon Members of this House, particularly since the terms of the loan are quite favourable to the Government of Ghana -- I thank you for allowing me to contribute.

Question proposed.
Mr. Moses Aduko Asaga (NDC -- Nabdam) 12:05 p.m.
Mr. Speaker, I think the Chairman and the Ranking Member have all alluded to the fact that this is a very good facility for Ghana, especially where the benefits would go to meet the Millennium Development Goal targets.
Mr. Speaker, we all know that urban roads are very, very important and we hope when this loan facility is effected, in the construction of the urban roads, especially in Accra and other cities, we would take into consideration their durability and stability to withstand the pressures of rainy seasons.
We know that recently some of the urban roads that were constructed, when there were torrential rains in Accra, some of the asphalts were removed and that surprised everybody; how could roads that were constructed recently break down with these torrential rains? So the Hon Minister for Roads and Highways or the
Hon Minister for Transport should take note of these comments, that we are not just getting money, or it is not just value- for-money but the construction should stand the test of our weather in Ghana.
Again, I want to say that this particular
loan is also targeted at feeder roads and we know what feeder roads mean to the rural communities. We need to open up some of the rural areas to be able to move foodstuffs, to be able to commercialise the communities, to make sure that transportation is available for the carting of foodstuffs and cash crops such as cocoa. So again, this is very, very important.
Regarding its cross-cutting nature, we know that the Ministry of Transport which deals with ports, railways and harbours, there is also a facility for them. We would entreat that this facility is used to improve the railway system so that we would be able to cart mineral ore to our ports efficiently, and we would be able to cart cocoa instead of using haulage trucks which go further to destroy our roads.
But most importantly, still under ports and railways, is the fact that Ghana would soon be producing first oil in 2010 and we need to improve the Takoradi Harbour so that we can use it as a facility and a terminal for the oil and gas business.
On this note, I would ask my fellow Hon Colleagues that we should support this loan facility and it should be adopted without much debate.
Dr. Osei 12:05 p.m.
Mr. Speaker, on a point of
Dr. Osei 12:05 p.m.


order. Dr. Akoto is not in the House right now, so I do not know which Dr. Akoto he is referring to. Dr. Owusu Afriyie Akoto has not made a contribution, so by referring to Dr. Akoto making a contri- bution, he is misleading the House.
Mr. Asaga 12:05 p.m.
So it is not you?
Mr. First Deputy Speaker 12:05 p.m.
Hon Akoto Osei.
Mr. Asaga 12:05 p.m.
Mr. Speaker, Hon Akoto Osei was cautioning that we have up to US$600 million of World Bank support for the road section which had not been effected as a result of difficulty in project implementation. I think this is true; when I was in the transition team -- [Interruptions.] This came to my notice through the World Bank and therefore the Government has taken note of it and would be accelerating the disbursement of these facilities. [Interruption.] Some people were saying when I was where -- [Laughter.]
Mr. First Deputy Speaker 12:05 p.m.
Address the Chair?
Mr. Asaga 12:05 p.m.
So Mr. Speaker, I know
that my good uncle and also from the same church, Christ the King Church is eager to contribute. So I will stop here and ask Hon Members to approve this loan.
Mr. Hackman Owusu-Agyemang (NPP - New Juaben North) 12:05 p.m.
Mr. Speaker, I thank my Hon Brother. Mr. Speaker, in fact, most of the things that I wanted to underscore, he has done so; so without spending much time, I would say I concur with everything; he said it for all of us.
But I believe that the Transport Sector Project (TSP) is a programme that we know and it would not be out of place for
the Hon Minister for Roads and Highways and the Ministry of Finance and Economic Planning to give us a list of those roads that are to benefit from this, hence my insistence that the Select Committee on Transport and Com-munication be part of the review process.
Mr. Speaker, it is most important that we know what the roads are to be used for. But I cannot over-emphasise what was said by the Hon Member for Nabdam (Mr. Moses Asaga) that the quality of roads is what is at stake here. And I believe that we are being short-changed whatever it is, whoever it is. And our technical people need to really wake up to the quality because they must - Eventually, this thing is put on the Members of Parliament (MPs), Ministers and what have you, but the Minister and the MP would not know whether technically all the criteria have been met to the extent that after one rain everything is washed away.
And I believe that we need to do that
because the cost of constructing roads in Ghana is very high. Indeed, in 1997, I picked up a piece from Nigeria where the cost of construction of roads in Nigeria was half the cost of constructing roads in Ghana; that a kilometre of asphalt road in Nigeria was half the price of Ghana's; and the terrain is the same, Mr. Speaker. So really, we need to look at the cost and the benefit as well as the quality of what we have got.
This business of short-changing us, I think, should be a subject matter of another consumer protection kind of debate. But I believe that we need to know also where the Hon Minister intends to spend all these moneys.
The quantum of money is very big by our own standards and I think that I would want to humbly request, Mr. Speaker, that he makes this available to us as a matter of an official request, where the money is
to be spent and on which roads, so that we would know and can tell our constituents that these are the roads that are to be constructed.
I do not think it would be very difficult because they have the TSP and the TSP has all the details that are available. But most importantly, again, the quality is what is important in this instance.
Thank you very much and I would like to say that I support wholeheartedly the acquisition of the fund for the road transport programme.
Mr. C. S. Hodogbey (NDC - North Tongu) 12:05 p.m.
Mr. Speaker, I think most of the things that I wanted to say have already been said. But I would like to -- [Interruptions.]
Some Hon Members 12:05 p.m.
Then sit down.
Mr. Hodogbey 12:05 p.m.
But I would like to make a little comment.
As people have already talked about the quality of our roads, if you go to some other jurisdictions, when they are constructing a bridge, even the foundation for the road, the material is taken to the road department to analyse and to see whether it stands the test of what has been built in the contract.
rose
Mr. First Deputy Speaker 12:15 p.m.
Yes, Hon Asiamah, do you have a point of order?
Mr. I. K. Asiamah 12:15 p.m.
Yes, Mr. Speaker. The Hon Colleague opposite did say that he is not aware whether what he is complaining about happens in Ghana here. May I know whether he is a Member of Parliament of Ghana or a Member of Parliament of somewhere else? Indeed, is he a Ghanaian or he has come from somewhere else to this House? An Hon Member -- He is coming from Nyinahin; he is from Nyinahini -- [Laughter.] I want to know where he is coming from, whether he is part of us.
Mr. First Deputy Speaker 12:15 p.m.
You are out of order. Hon Member, continue.
Mr. Hodogbey 12:15 p.m.
Thank you, Mr. Speaker. When you go to other jurisdictions and if you look at our roads, the urban roads, Mr. Speaker, we do not have any shoulder check. So you see the road wearing down as these trotro drivers ply by, breaking the road until when it gets so small in the middle before a fix is done.
Dr. Osei 12:15 p.m.
On a point of order. Mr. Speaker, as my Hon Colleague knows, if one is going to accuse anybody of doing anything wrong, one would need to have the evidence to bring to this House. He is saying that in Ghana here he does not know what is happening and in the same breadth he is accusing trotro drivers of driving through the shoulder.
How can he not know what is happening and accuse the trotro drivers? Mr. Speaker, he is misleading this House. Those of us who ply the trotro, we do not want him
Dr. Osei 12:15 p.m.


to be making that accusation. If he does not have the evidence, I think he should withdraw lest the trotro drivers come and pickle this House; we do not want that.
Mr. Hodogbey 12:15 p.m.
Mr. Speaker, in addition, there is the need to resource our contractors. Most of these loans that we normally get go to the foreign contractors instead of resourcing or taking charge of our own development. I wish to appeal to the Ministry of Roads and Highways that if it is because of failure to have the right equipment, we should resource our own people so that we can take charge of our own development. We cannot continue to be a developing country when people have to come from outside to build our own country for us.
Finally, Mr. Speaker, I would like to say that we should deviate from building single roads and start building dual- carriage roads. These would reduce head-on collision so that motor accidents on the roads would be minimized. Every time one drives from say Accra to any of these regional capitals, because they are not dual-carriage roads, one would see a number of accidents. But I believe with dual-carriage roads, this would be minimized. Therefore, I wish everybody would support this loan agreement.
Mr. First Deputy Speaker 12:15 p.m.
Hon Member for Bekwai, and after that I will ask the Chairman to wind up.
Mr. Joseph Osei-Owusu (IND -- Bekwai) 12:15 p.m.
Thank you, Mr. Speaker, for the opportunity to contribute to this debate. Mr. Speaker, I must say that from the outset, I support the motion and wish to urge all Hon Members to support same.
However, some of the component parts that the loan is intended to be applied to give cause for concern. I am looking at page 4, and we are looking at “Capacity Building.” One institution that comes to
mind straightaway is Driver and Vehicle Licensing Authority (DVLA).
Mr. Speaker, in the year 2002 to 2008 there was a programme called the Road Sector Development Programme, (RSDP). Under that programme, for eight years certain institutions including DVLA were supported to improve their capacity.
Have we done an evaluation to determine whether they have sufficient capacity to be on their own? Does DVLA need further capacity building? With all due respect, Mr. Speaker, I think that is not the case. Indeed, DVLA built its capacity to the level that as at the close of 2008 it could on its own buy $1 million worth of head office. It could build on its own a 3.5 billion cedi worth of residence for the Chief Executive.
It could build from its own resources three brand new district head offices without coming to the central government. Does DVLA need a loan to come back to build its capacity? If we put that together in a year, there is sufficient money for that institution to stand on its own. I think it is time we evaluated the programmes that have preceded us to determine whether we need further support.
DVLA, in my view, has sufficient resources to stand on its own as at today and if we generate the money - if we take the loan, we should rather invest it in the infrastructure area and support organizations and institutions like DVLA to continue to build on where they have reached and generate enough resources to be on its own.
Mr. Speaker, with this observation I support the motion.
Mrs. C. A. Afeku (NPP - Evalue Gwira) 12:15 p.m.
Mr. Speaker, I rise to support this motion to approve SDR150.5 million to finance the Transport Sector Project. In so
doing, Mr. Speaker, I also wish to draw the attention of the Finance Committee that it would have been appropriate if they did, indeed, collaborate with the Committee on Roads and Transport, so we could have shared our views and make this a holistic approach.
Secondly, I also had a point on page 5. I see a whopping 8.3 million to be given for co-ordination,administration, moni- toring and evaluation of the project and in most cases, these kinds of revenues do not actually come to local content. My concern is, are these being redirected to expatriates who are coming in under the guise of consultants to monitor and evaluate our road projects? So we should look into it.
Mr. Speaker, if we could actually boost the capacity of local content so this loan that we are approving will actually be redirected within the economy so that our local engineers, our local contractors who have the expertise would also be seen as rebuilding our road network and also monitoring what we are going to use in our country.
Mr. Speaker, the other concern that I have is on the feeder roads allocation. There is a direct correlation, according to our Report, that poverty reduction and road infrastructure would actually end a lot of the suffering we see on our roads. Women tend to ply the roads with goods and services and it does empower them when the roads are actually in good condition.
It would be appropriate if a little re-adjustment would be done. With SDR150.5 million going to minor improvements or rehabilitation of feeder roads, it could be looked into if the Hon Minister could maybe, augment that --
because there are more roads in the rural areas that would need spot improvement that would actually augur well for rural infrastructural development so that our mothers and sisters who ply the roads with their goods would be able to go to the market and sell it and in the end feed the families of the nation.
With these few words, I wholeheartedly support the motion and urge the Hon Minister to hopefully get to Evalue Gwira with the minor rehabilitation of the feeder roads so that our place would be covered as well.
Mr. J. K. Gidisu 12:25 p.m.
Mr. Speaker, I would want to thank Hon Members for the very rich ideas and comments they have made on the motion.
Mr. Speaker, the loan cuts across all
the various sectors of the road industry. When one talks about the trunk roads, the loan is to rehabilitate the Ayamfuri- Asawinso trunk road. And this is a major road network which, for a very long time now, has been crying for attention.
Equally very important is the allocation of US$78 million which will, among other things, lead to the rehabilitation of the Burma Camp and the Giffard Roads in Accra as a way of easing the congestion of traffic in the urban areas as well as promoting the Bus Rapid Transport (BRT), which one of the Hon Members noted. The tension that is brewing within the GPRTU in terms of the implementation of the BRT service is part of this scheme.
Mr. Speaker, I would want to assure
Hon Members that educational pro- grammes are being put in place to ease the frustration of the GPRTU and the re-servation they have on the imple- mentation of the BRT programme under the Project.
Mr. Addai-Nimoh 12:25 p.m.
On a point of
Mr. First Deputy Speaker 12:25 p.m.
Hon
Minister, this is a motion that both sides of the House have supported. And I think that you should veer away from any comments that will turn the House into a partisan stance.
Mr. J. K. Gidisu 12:25 p.m.
Thank you, Mr.
Speaker. Mr. Speaker, I was just trying to allay the fears of the Hon Member for Old Tafo (Dr. A. A. Osei), who was intimating that the identification and spread of such feeder roads should cut across board and I am assuring him that that would not be skewed along any partisan political lines. Mr. Speaker, this is the point I am making.
Dr. Osei 12:25 p.m.
Mr. Speaker, I wish what he said would have allayed my fears. But I think he was going to dangerous territories. I just want to remind him that there is a Resolution following this debate, if he is not aware.
Mr. First Deputy Speaker 12:25 p.m.
I think
that I have already advised that the Hon Minister should not pursue that path -- [Some Hon Members: He should withdraw.] -- Hon Members, I think that his explanation that he was responding to the fears expressed by the Hon Ranking Member of the Finance Committee, the way he put it the second time is far better than the way he put it the first time. To be very honest, he is an Hon Minister. So let us proceed. Let us take the last one to be what he actually meant to say.
Mr. Kyei-Mensah-Bonsu 12:25 p.m.
Mr.

Mr. Speaker, this statement cannot be

swept under the carpet. The second time he came around, as you said, was better but he has not withdrawn what he said. The premise is what we are talking about. And it is a very serious statement that he makes that it will not be done unlike in the past. [Interruptions.] [An Hon Member: He did not say that.] He said so. If you did not hear then do not say he did not say that. Mr. Speaker, so, it is a very serious statement.
Mr. First Deputy Speaker 12:25 p.m.
Hon
Minister, for the avoidance of doubt, what exactly did you want to say?
Mr. J. K. Gidisu 12:25 p.m.
Mr. Speaker, I do

Mr. Speaker, I think this is not a

contentious motion and by withdrawing, I want to sum up by urging Hon Colleagues to overwhelmingly support the motion through their votes.

Mr. Speaker, I thank you.
Mr. First Deputy Speaker 12:25 p.m.
Thank you,
Hon Minister for Roads and Highways. I would now put the Question.
Question put and motion agreed to.
Let us take item 9 -- Consequential
Resolution.
Mr. J. T. Akologu 12:25 p.m.
Mr. Speaker, I want
to seek your permission and the indulgence of the House to allow the Hon Deputy Minister for Finance and Economic Planning to move the Resolution.
Mr. First Deputy Speaker 12:25 p.m.
Very well.
RESOLUTIONS 12:25 p.m.
THIS HONOURABLE HOUSE 12:25 p.m.
H E R E B Y R E S O LV E S A S 12:25 p.m.
Mr. J. K. Avedzi 12:25 p.m.
Mr. Speaker, I beg
to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Mr. First Deputy Speaker 12:25 p.m.
Yes, Hon Deputy Majority Leader?
Mr. Akologu 12:25 p.m.
Mr. Speaker, in consulta- tion with the Hon Chairman of the Finance Committee and the Hon Minister for Finance and Economic Planning, items 10 to 18, which are all their businesses, should be deferred.
Mr. Akologu 12:25 p.m.


So we should take items 19, 20 and 21.
Mr. First Deputy Speaker 12:25 p.m.
Item 19?
Suspension of Standing Order 80 (1)
Chairman of the Finance Committee (Mr. J. K. Avedzi) 12:25 p.m.
Mr. Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80 (1) which require that no motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the motion is given and the date on which the motion is moved, the motion for the adoption of the Report of the Finance Committee on the request for waiver or tax/duty exemptions on equipment and materials to be imported or purchased locally amounting to €2,414,790.00 in respect of the Mixed Credit Facility between the Government of the Republic of Ghana and the Government of The Netherlands/Fortis Bank for the construction and equipping of the Winneba District Hospital may be moved today.
Dr. A. A. Osei 12:25 p.m.
Mr. Speaker, I beg to second the motion.
Question proposed.
Mr. Joseph Osei-Owusu (IND -- Bekwai) 12:35 p.m.
Mr. Speaker, I do not have any objection to the content of the motion, but I have a problem with the motion [Pause]-- I am only six months old or a little over in this House, but virtually every motion that has been moved in this House has been in respect of “Notwithstanding Order 80 (1)”. It does appear to me that Order 80 (1) is a fetter; it constraints the work of the House because though it exists we all say:
“Disregard it and do it the other
way.”
If the House considers that, that specific Order impedes its work, the appropriate thing, I suppose, is for us to repeal that. But we cannot continue in this House always saying: “Notwith-standing Order 80(1).” If we go through all the motions that have been moved, not less than 80 per cent have been moved as per. “Notwithstanding Order 80(1)”.

Minister for Local Government and

Rural Development (Mr. Joseph Y. Chireh): Mr. Speaker, we all need to be educated on our own Standing Orders. But this provision is important because under normal circumstances we are to be given sufficient time to go through documents over and at least 48 hours, later we would be sufficiently equipped to be able to discuss or debate.

But in the peculiar circumstances, in making any law, in making any rule, we must always have exceptions and this is why this Order is there. In fact, it is not one of the Orders that is under review at all. It is necessary and we should keep it and it should continue to guide us. But there are occasions, as one may notice, when it is being evoked and one has strong reservations and thinks that we are not sufficiently informed about the resolution, we cannot debate it. People could also say, “No”, and it is procedural in a sense, but one can say “No” to it.

So I think that it is not something we should tamper with; it should not be a matter that we should deal with. We must have that exception; it serves a good

purpose.

Thank you.
Minority Leader (Mr. Kyei-Mensah- Bonsu) 12:35 p.m.
Mr. Speaker, I was going to raise the issue raised by the Hon Member for Wa West (Mr. Joseph Yieleh Chireh). Indeed, Parliament is required to be very diligent in scrutinizing Bills, Agreements that come before us. Unfortunately, there are many Bills and Agreements which come to us for which we are required to treat them under a certificate of urgency.
For those Bills and Agreements, the resort is to Order 80 (1). I guess the issue being raised by the Hon Member for Bekwai (Mr. Osei-Owusu) is the repeated use of Order 80 (1) to deal with Bills, Loans, and Loan Agreements and so on, that come before us. I guess we should in the circumstance be advising government to come early to the House with the Bills and Agreements before it is too late.
Oftentimes, it is at the dusk of a Meeting before Bills and Agreements are rushed to Parliament. One concedes the fact that Cabinet itself must be very diligent in processing the Bills and other Loan Agreements that come through it to Parliament. It is important that they themselves do very due diligence before they come with these things to Parliament.
However, the point that ought to be stressed is that during the recess -- and we are going to be on recess for about two- and-a-half, three months-- Cabinet itself could be doing their own homework when Parliament is not Sitting or in Session such that when we resume they would come timeously with many of these Bills and Agreements.
Unfortunately, for whatever reason
they often pussy foot and dilly dally -- and I use these words advisedly. Mr. Speaker, so we need to entreat the Executive to be very prompt and timeous with respect to sending Bills, Agreements to Parliament to enable us do proper diligence on these documents before we approve of them. Otherwise, certain naughty points could escape the scrutiny of Parliament and that would not be good for this country. So it is important that we stress that we do not abuse the resort to Order 80 (1).
I agree entirely with my Hon Colleague that we should appeal to the Executive to come promptly to Parliament. However, when they are not able to do that, in order not to impede the work of the Executive, if we have to facilitate it, then of course, we have to leave that provision in the rules of procedure.
Thank you.
Deputy Majority Leader (Mr. J. T. Akologu): Mr. Speaker, I agree with all that has been observed in this particular direction. But I want to add that this problem has been with the House since its inception in 1993. But the other contributory factor to this situation is the work of the committees.
In fact, sometimes when referrals are made to the committees, they either do not sit on them early or they lack the resources or logistics to take the issues up earlier and report to the House. So at times our own work in this House via the committees' work has also contributed to this situation. So as it is being observed, we have to look at it holistically and critically to see how best we can address it. But the Executive should take note of this and then advise itself. The House too should do the same.
Mr. Speaker, I thank you for this opportunity.
Mr. First Deputy Speaker 12:35 p.m.
I think the
Mr. First Deputy Speaker 12:35 p.m.


sentiments expressed by the Hon Member is genuine. I am aware that Standing Order 3 allows the suspension of any part of the Standing Orders. But it should be observed -- It should be an exception rather than the rule.

Now, it is becoming the rule. As the Hon Deputy Majority Leader said, that has been the practice right from the inception of this House and I think that this House should not be encouraging it; we need more time to scrutinize documents and be very, very sure that what we are approving is the proper thing and it is in the national interest.

Thank you very much.

Hon Members, the motion for the suspension of the Standing Order has been moved; I would put the Question.

Question put and motion agreed to.

Resolved accordingly.
MOTIONS 12:35 p.m.
Chairman of the Committee (Mr. James K. Avedzi) 12:35 p.m.
Mr. Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the request for waiver or tax/duty exemptions on equipment and materials to be imported or purchased locally amounting to €2,414,790.00 in respect of the Mixed Credit Facility between the Government of the Republic of Ghana and the Government of The Netherlands/Fortis Bank for the construction and equipping of the Winneba Hospital.
Mr. Speaker, in doing so, I present your
Committee's Report.
1.0 Introduction
The request for waiver or tax/duty exemptions on equipment and materials to be imported or purchased locally amounting to €2,414,790.00 in respect of the Mixed Credit Facility between the Government of the Republic of Ghana and the Government of The Netherlands/Fortis Bank for the construction and equipping of the Winneba District Hospital was laid in the House on Monday, 6th July, 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 con- sideration and report pursuant to Order 169 of the Standing Orders of the House.
The Committee met and considered the request with the Deputy Minister for Finance and Economic Planning, Hon Fifi Kwetey and technical teams from the Ministries of Finance and Economic Planning (MOFEP) and Health (MoH) and hereby submits this Report.
Background
Over the last decade, health status indicators have been plateauing. These indicators include maternal and child health, nutrition, coverage of clinical services, public health and reproductive health services. Non-communicable diseases, including road traffic accidents are also becoming major causes of
morbidity and mortality in the country.
Winneba occupies a strategic location along the major trans-West Africa Highway (Aflao-Accra-Cape Coast-Takoradi-Elubo corridor) which is a route prone to road traffic accidents. Besides, the current hospital in Winneba has outlived its size and space due to the rapid population growth of Winneba as a municipality and surrounding commu-nities.
Due to the spatial difficulty in expanding the hospital at the existing site, it has become increasingly critical to construct a new district hospital for Winneba to respond to the emerging health needs of the people including handling accident and trauma cases.
To this end, Government in 2008 contracted a Mixed Credit Facility from the Government of The Netherland/ Fortis Bank to construct and equip a new Winneba District Hospital.
This tax exemption currently before the House is therefore in respect of materials and equipment needed to implement the project.
3.0 Approval of the Grant and Loan Agreement
Parliament on 21st July, 2008 approved the Mixed Credit Facility between the Government of the Republic of Ghana and
the Government of The Netherlands/Fortis Bank for the construction and equipping of the Winneba District Hospital in the sum of €18,774,596.00; comprising a Loan of €11,669,596 and a Grant of €7,105,000.
4.0 Required Waiver
The amounts of tax waiver required is two million, four hundred and fourteen thousand, seven hundred and ninety euros
(€2,414,790.00).
Attachment
Please find attached APPENDIX assessments conducted by the Customs, Excise and Preventive Service (CEPS) on the tax liability required to be waived.
5.0 Observations
The Committee observed that pursuant to article 7 of the Grant Agreement signed between the Government of Ghana and the ORET of The Netherlands, all taxes, import duties and other levies of Ghana related to the activities financed by the Grant and Loan shall be borne in full by the Government of Ghana. It is, therefore, necessary to waive the applicable taxes so as to ensure that Government does not borrow further to pay taxes to itself.
It was noted that benefits to be derived from the successful completion of the project include quality health care to the people of Winneba and its environs to ensure healthy living standards and enhanced productivity.
The hospital is also expected to cater
Chairman of the Committee (Mr. James K. Avedzi) 12:35 p.m.


for accident victims on the road network of Winneba in linking the Eastern and Western Corridor of the country as the road network has proved to be prone to road accidents.

6.0 Conclusion

The Committee has carefully con- sidered the request and found that the tax waiver is consequential to the Loan and Grant Agreement between the Govern- ments of Ghana and The Netherlands approved by the House on 21st July 2008 and a necessary condition for the smooth implementation of the project to construct and equip a new Winneba District Hospital.

The Committee, therefore, recommends to the House to adopt this Report and approve by Resolution, the waiver or tax/duty exemptions on equipment and materials to be imported or purchased locally amounting to two million, four hundred and fourteen thousand, seven hundred and ninety euros (€2,414,790.00) in respect of the Mixed Credit Facility between the Government of the Republic of Ghana and the Government of The Netherlands/Fortis Bank for the construction and equipping of a new Winneba District Hospital in accordance with article 174 (2) of the Constitution and Standing Orders of the House.

Respectfully submitted.
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.
Mr. Speaker, I thank you for the opportunity to second the motion on the floor of the House, that this Honourable House adopts the Report of the Finance Committee for the tax/duty exemptions on equipment and materials to be imported or purchased locally, amounting to €2,414,790.00 in respect of the Mixed Credit Facility between the Government of the Republic of Ghana and the Government of The Netherlands/ Fortis Bank.
Mr. Speaker, the Report clearly indicates that this loan was contracted and passed by Parliament on the 21st of July 2008 under the Presidency of His Excellency John Agyekum Kufuor, that is very important.
Mr. Speaker, let me say and appeal to the Committee members that, if we look at the attachment, which is the Appendix Assessment conducted by Customs, Excise and Preventive Service (CEPS), you will see items that include about 84,000 bags of cement, you will see items that include quarry, sand --
You will see items that include quarry dust and sand. It is because in the original loan, like the Committee observed, the Grant Agreement signed between the Government of Ghana and the RAET of The Netherlands, all taxes, import duties and other levies of Ghana related to the activities and financed by the Government shall be borne in full by the Government of Ghana. So clearly, we cannot use any part of this loan to pay taxes. That is why you have cement; you have sand; you have any other thing being there. So I appeal to Hon Members to accept it and let us pass it.
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.


Attachment 1
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.


Attachment 2
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.


Attachment 3
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.


Attachment 4
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.


Attachment 5
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.


Attachment 6
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.


Attachment 7
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.


Attachment 8
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.


Attachment 9
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.


Attachment 10
Mr. D. B. A. Nitiwul (NPP -- Bimbilla) 12:45 p.m.


Attachment 11

Mr. Speaker, health was one aspect of our human life recognized by the past Government and like the Committee observed, Winneba and the people around Winneba serve as a strategic point for the past Government and that is why it was important that the road linking Accra to Elubo had a very good hospital and so the people of Winneba deserve that hospital and for that matter, they put it there and I am glad that the hospital is functioning and running very well.

Mr. Speaker, issues of health, issues of water, issues of education are very basic to the human fundamentals and very basic to the human being and so I will expect every government to focus its attention on those key areas and make sure that if we have to spur growth, we must give our people very good health and give them well equipped hospitals such that they will live longer.

I read an article about a comparison between South Korea and Ghana. I have said it before, that the people of South Korea look very thin and look very fit, you come to Ghana -- the difference is a reality. Our life expectancy is below 60 but in many countries, life expectancy is above 70 years. We must strive to give our people good medical attention such that our life expectancy will move forward.

Mr. Speaker, there are so many things

when it comes to tax waiving that we really have to look at and make sure that we do not give what is not due. But when it comes to health, education and water, anything that the Government of Ghana, President Atta Mills' Government will do or the NDC Government will do to give the people of Ghana good health, we should support it but it must be done and done well.

As we stand today, the Government is contracting loans to support the Budget. I will urge the Government to focus

more on the health sector. I will urge the Government to focus more on strategic areas like health, education and growth for the family so that the people of Ghana will benefit and benefit well. Like I said before, whatever loan we are taking, we should make it project specific, like hospitals, like schools, like roads so that the people of Ghana will see the benefit of whatever we are going to do.

Mr. Speaker, we all know that if loans are taken and they are not project specific, it could go to other areas.

Mr. Speaker, the Committee observed and I want to conclude that the tax waiver is consequential to the loan -- [Interruption.] Mr. Speaker, like I said, in conclusion, the Committee found out that the tax waiver is consequential to the loan and the grant element agreed between the two. But what strikes me Mr. Speaker, is that there was a grant element -- [Inter- ruption.]
Mr. Akologu 12:45 p.m.
On a point of order. Mr. Speaker, I just want further clarification from my Hon Colleague opposite. He just stated that if loans are taken and care is not taken or they are not properly monitored, they will go to other areas. I just wanted him to be specific, which areas? Because it is a big indictment on those who have just handed over to us.
Mr. Nitiwul 12:45 p.m.
Mr. Speaker, I said other areas. It could be agencies; it could be departments; it could be all Ministries, Departments and Agencies (MDAs). If he wants to hear something, I will not repeat it.
Mr. First Deputy Speaker 12:45 p.m.
Hon Member, kindly wind up.
Mr. Nitiwul 12:45 p.m.
Mr. Speaker, I said what struck me was the fact that out of the
Mr. J. Y. Chireh 12:45 p.m.
On a point of order. Mr. Speaker, the Hon Member who just spoke is misleading the House. I know that President Kufuor appointed Hon Ministers in charge of various sectors and they negotiated. Now, the man is saying that President Kufuor was the one negotiating the loans. That is misleading the House. It is not correct.
Mr. First Deputy Speaker 12:45 p.m.
Hon Member, kindly wind up. I think you have had enough time.
Mr. Nitiwul 12:55 p.m.
Mr. Speaker, when a loan is negotiated, it is negotiated on behalf of the President and the people of Ghana and he knows that.
Mr. Speaker, what I said was that the grant element was almost 40 per cent of the loan and I was urging that people who negotiate loans for us, people in charge of moving to the International Monetary Fund (IMF), moving to the World Bank; going to the international market, going to the capital market and going for bilateral loans should negotiate in such a way that the grant elements would be good for the people of Ghana. Mr. Speaker, we are capable of doing it, we are strategic, the world loves us and we can take advantage of that to do that.
I thank you, Mr. Speaker, and I urge Hon Members of this House to support this motion.
Question proposed.

Minister for Communications (Mr.

Haruna Iddrisu): Mr. Speaker, thank you very much for the opportunity to associate myself with the motion for the approval of the request for waiver or tax/duty exemptions on equipment and materials to be imported or purchased locally, amounting to €2,414,790.00 in respect of the Mixed Credit Facility Agreement between the Government of the Republic of Ghana and that of The Netherlands.

In doing so, may I particularly refer you to paragraph 2 and specifically on paragraph 2.0 and with your indulgence, I quote:

“Over the last decade, health status indicators have been plateauing. These indicators include maternal and child health, nutrition, coverage of clinical services, public health and reproductive health services.”

Mr. Speaker, His Excellency President John Evans Attah Mills prior to the approval of the submission of the Budget Estimates to this august House, hinted of justifiable continuity and I believe that this is done in pursuit of that phrase -- “of justifiable continuity” -- a worthy initiative of the previous Administration but justifiable because one of the major themes on which President Mills and the NDC campaigned was “investing in people”. And significant to that campaign of “investing in people” is to invest in education and invest in healthcare.

Therefore, it is the commitment of government to extend health delivery services to every part of Ghana. Indeed, there is a blueprint that if it is possible government can marshal the needed resources, each district capital of Ghana should be bequeathed with an excellent
Mr. Nitiwul 12:55 p.m.


edifice of a district hospital to improve access to healthcare in order to deal with the deteriorating health statistics of our country. Maternal mortality is on the increase and infant mortality is on the increase, these are all exemplified even in the UNDP Report.

But I had the opportunity to visit this particular hospital prior to the December Elections and I think that it is commendable that government is implementing this particular project in ensuring that the Winneba District Hospital enjoys some massive and rapid renovation or we are told that a new district hospital entirely is being considered for Winneba to respond to the emerging health needs of the people of Winneba. And I think that the justification for the tax waiver as we are told is consequential to the loan agreement which this Honourable House looked at on 21st July, 2008.

One notes with satisfaction that the Customs, Excise and Preventive Service has carefully done the tax assessment and has officially approved it on 26th May,

2009.

With this, I urge Hon Members to massively vote for this motion and ensure that there is an improvement in the healthcare delivery for the people of Winneba. The hospital will not just serve Winneba and its environs but any other person who is a Ghanaian can avail himself of that service.

With these comments, I associate myself with the motion.
Mr. J. B. Aidoo (NPP -- Amenfi East) 12:55 p.m.
Mr. Speaker, I am just going to be very brief. The importance and significance of the Winneba Government Hospital cannot be overemphasized and the call on this House to waive taxes
on projects relating to the hospital is important.
But I just want to draw the attention of the House to an issue which bothers me. The Hon Member for Bimbilla tried to explain. My concern is about tax exemption on quarry dust and sand.
Mr. First Deputy Speaker 12:55 p.m.
Hon Member, have you seen the motion that we are debating? Look at the motion -- “or purchased locally” -- “materials purchased locally” --
Mr. J. B. Aidoo 12:55 p.m.
Mr. Speaker, I agree with you. But the point is that if you look at the assessment form, the assessment is not on just materials to be purchased locally. We know what sand is and where it comes from, we know where quarry dust could be purchased but the most important thing is that the assessment is indicating import duty on quarry dust, ECOWAS levy on sand and the volume has been indicated.
If you take sand, two thousand, three hundred cubic metres, quarry dust, a hundred cubic metres and that is my worry, because these items are not going to be imported, so why should they be included in the assessment form, that is my only worry? So if some light could be thrown
on it. I have no problem with this motion and I will urge Members to support it.
Mr. First Deputy Speaker 12:55 p.m.
Before I call you, Chairman of the Committee, I think the Hon Member has raised a very important point. Can you clarify that position before you --
Mr. Avedzi 12:55 p.m.
Mr. Speaker, the portion he is referring to, talks about the quarry dust, sand, hand drier, wall mirror and water heater. All these items put together -- so it is not clear that the ECOWAS levy is on quarry dust as he is taking it. Because water heater will definitely be imported, wall mirror, hand drier, those too could be imported, so it is not clear what he is saying.
Minister for Local Government and Rural Development (Mr. Joseph Yieleh Chireh) 12:55 p.m.
Mr. Speaker, I think that at the time that we approved these loans, we made room for exemptions. It is because the Constitution requires that only Parliament can levy taxes or exempt taxes from being paid. But I would also now want us to look at it in a different light.
rose
Mr. First Deputy Speaker 1:05 p.m.
Is it a point of order?
Mr. Asaga 1:05 p.m.
Yes, I think the Hon Minister is misleading the House -
Mr. First Deputy Speaker 1:05 p.m.
Hon Member for Nabdam, what is your point of order?
Mr. Asaga 1:05 p.m.
My point of order is that, what he is proposing is not something that can be practised because it increases the administrative costs to be able to collect dust. So he should not even go into that line at all. He is the Hon Minister for Local Government and Rural Development, he should stick to that. He should stay there and stop burdening the Hon Minister for Finance and Economic Planning.
Mr. First Deputy Speaker 1:05 p.m.
That is not a point of order. Hon Minister, continue.
Mr. Chireh 1:05 p.m.
Thank you very much. At the time you are approving this - I will just ignore him, I will ignore him because this is not a matter - it is a matter for Members of Parliament and Members of Parliament do not have to be finance biased otherwise, we will ask only accountants and financial experts to come and approve this waiver.
What I want to explain is that, first of all, at the time we are approving these things, we do not know the actual duties, the things that are going to be brought in and at what costs, that is a little difficult. Now the issue that the previous Member who spoke raised about quarry dust and other items not be imported -- Indeed, this makes it important for us to review what we are doing. What is it that we are exempting the tax on?
Are they things that are being imported or even things that are procured locally? Are they taxes that we should have removed? What are we removing the
Mr. First Deputy Speaker 1:05 p.m.
Hon Chairman of the Committee, if quarry dust is not one that those levies and import duties are waived,why should it even be in the assessment form?
Mr. Avedzi 1:05 p.m.
Mr. Speaker, I think I
explained that aspect that it was not only quarry dust that was -
Mr. First Deputy Speaker 1:05 p.m.
Why should it be there if we are not going to pay anything at all? Why should it even be on the assessment form in the first place?
Mr. Avedzi 1:05 p.m.
Mr. Speaker, because the assessment that he is talking about has ECOWAS levy and VAT component on it. Therefore, we put that one there because definitely, that will be affected by VAT. That is why they put it there. If they want to bring every item, we will have a big document which will be difficult for us to review, that was why they grouped all of them together.
So those that ECOWAS levy will affect will attract that levy and those that VAT will affect will attract that levy. But I think it is good they review it later and bring the proper thing for us to do.
Mr. First Deputy Speaker 1:05 p.m.
I have not called you; I just want your guidance;
you will come in later because this point is something that I want to clarify, that is why I called you as the Chairman of the Committee.
Ranking Member?
Dr. Osei 1:05 p.m.
Mr. Speaker, with respect, I think this is a matter that we should defer and come back to it. It is a practice for the Internal Revenue Service (IRS) to be writing a description of all items. Maybe, this Parliament ought to direct them that we want the specific items that they are exempting but it is a practice that they get the list and they write all the goods that they see on the list. It is a practice; this is not the right way to do it and I think we should find an appropriate way to direct the IRS to do the proper thing. That will solve the problem for us.
Dr. Matthew Opoku Prempeh (NPP -- Manhyia) 1:05 p.m.
Mr. Speaker, in rising to support this lovely Agreement and motion, I will want to bring the House's attention to - [Interruption.] The policy my Hon Friend, the Hon Minister for Communications talked about. A very good policy this Government is conti- nuing; the blueprint and all the corridors in this country should have well catered for district hospitals where accident victims can be well attended to.
Mr. Speaker, I want to draw the House's attention for the Finance Committee Chairman to look into. A couple of years ago, this House passed the National Insurance Commission Law and part of it, the moneys that were accruing from the National Insurance Commission were supposed to be given to the National Health Insurance Fund for accident victims. Because it is very, very important that when you have a good hospital and you have an excellent road and an accident occurs on the road, the patient should be transported in the best capable way for the successful treatment to be done.
So I will like the Chairman of the Committee to investigate why up till now none of the moneys that had accrued to the National Insurance Commission had not gone to the National Health Insurance Fund for the catering of accident victims and ambulances to be effected.
What is a good hospital to a patient when an accident happens and he cannot be carried through? So in supporting this motion or this Agreement, I will crave the indulgence that the brilliant policy should be followed to the letter and that not only the hospitals and the roads are important but carrying of accident victims are done and done successfully.
Again, we support this motion and we believe that whatever good that the New Patriotic Party (NPP) did, whether it is, cocoa spraying or anything, my Hon Friends will continue.
Ms. Beatrice B. Boateng (NPP -- New Juaben South) 1:15 p.m.
Thank you, Mr. Speaker, for the opportunity to associate myself with this motion.
Mr. Speaker, as much as possible, educat ion issues cannot be over emphasized. I believe that this waiver that we are calling for is most important because it affects human life and we all know that the development of every nation depends on its human resource. And if this is going to help the health of human beings, I think it is in order.
My problem is that, the second paragraph of the Paper indicates that this should be approved because Winneba is prone to road traffic accidents. This is where my problem is. Are we saying that because it is prone to road traffic accidents we should provide a hospital? Are we not going to do anything to solve such a problem? Again, that is not the only road which is prone to accidents.

So I think that even before thinking
Mr. A. S. K. Bagbin 1:15 p.m.
Thank you
very much Mr. Speaker. Mr. Speaker, I believe the Hon Member wanted to talk about the route the route that is prone to accidents and not Winneba and because she mentioned Winneba prone to accidents but the paragraph is talking about the route. The route that is prone to accidents, not Winneba.
Ms. Boateng 1:15 p.m.
Mr. Speaker, that is all
right. What I am saying is that, yes, there are several of such routes which also fall into the same category. So my plea is that we should identify such routes and do something to make them accident free routes, so that we will not cite this as a major indicator or a major justification for such things.
I believe that once it is coming to help the health of people who eventually will contribute to the development of the nation, I want to urge all Hon Members to help by supporting this motion.
Thank you very much.
Mr. First Deputy Speaker 1:15 p.m.
I will take the last one from here and then I will put the Question.
Mr. Moses Asaga (NDC -- Nabdam) 1:15 p.m.
Mr. Speaker, my comment for the tax waiver. I think that we have all agreed that the tax waiver should be given to this project. But I think that of late, the Finance Committee, we are really not sure of the standard for the waiver, and as proposed, I think the Finance Committee needs to sit down with the revenue agencies so that we will dialogue and come out with a standard format and also the classific-ations of the goods and services that we should give tax waiver.
I think this is very very important because it looks like for every single project, there is a different format and then members of the Committee cannot really get to the bottom of the assessment that was made.
Regarding the contribution from the Hon Minister for Local Government and Rural Development, I think that the reason why we do the assessment upfront is that there is a huge administrative cost to be able to go in for the tax. So it is simpler and cost effective to rather do the tax waiver and deduct at source rather than go to chase the project to be collecting the taxes.
But as I have said, we the Finance Committee members with the leadership and the Chairman of the Committee need to meet the revenue agencies so that we will come out with a standard format for reporting the tax waiver.
With this Mr. Speaker, I urge the House to approve the tax waiver.
Thank you very much.
Question put and motion agreed to
Mr. Asaga 1:15 p.m.
I thought Mr. Speaker will
then give us the mandate so that we can report back to the House because this is a very important issue.
Mr. First Deputy Speaker 1:15 p.m.
Were
you on the floor of the House when the Hon Minority Leader raised some points that when you have oversight, at times you can do some of those things without necessarily referring to them? I know as a matter of fact that committees have been meeting their various MDAs that they have oversight responsibility without any referral from the Chair. Item 21.
Mr. Asaga 1:15 p.m.
Mr. Speaker, with all
reverence to you, I think three days ago, you asked that the Committees for Energy and the State Enterprises should be able to go into the ECG affairs and because that was captured in the Hansard, we took it as a serious directive from you. That is why I thought in this important issue, we needed that kind of ‘firm assurance' to borrow the words of the Hon Leader in Parliament “firm instructions”.
Mr. First Deputy Speaker 1:15 p.m.
Well, I am
not in a position to do the referral today, with the greatest respect.
Mr. Avedzi 1:15 p.m.
Thank you Mr. Speaker. I
think what the Hon Member is asking for, we have been doing that. It falls within our domain. We will carry on with that. So assurance from you is not necessary. We will do that.
Mr. First Deputy Speaker 1:15 p.m.
Very well.
Consequential Resolution -- Deputy Minister for Finance and Economic Planning. They have taken permission for him earlier.
RESOLUTIONS 1:15 p.m.
Mr. Avedzi 1:15 p.m.
Mr. Speaker, I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Mr. A. S. K. Bagbin 1:15 p.m.
Mr. Speaker, I
think we will have to take an adjournment to enable the House have the Committee of the Whole, to discuss very important pending issues. In the circumstances, I beg to move, that this House do adjourn till tomorrow at 10.00 o' clock in the forenoon when we shall reconvene to continue with business. I beg to move.
Mr. Kyei-Mensah-Bonsu 1:15 p.m.
Mr.
Speaker, I rise to second the motion.
Question put and motion agreed to
ADJOURNMENT 1:15 p.m.