Debates of 10 Feb 2010

MADAM SPEAKER
PRAYERS 10:35 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:35 a.m.
Madam Speaker 10:35 a.m.
Hon Members, Correction of Votes and Proceedings of Tuesday 9th February, 2010.
Pages 1 - 9.
Yes, Hon Member, any corrections?
Prof. (Emeritus) S. K. Amoako 10:35 a.m.
Madam Speaker, at page 9, under item 1, I believe the date is wrong. The Committee met on Saturday, 6th February, 2010, it is not 2009 - 2010. And Madam Speaker, if I may crave your indulgence, the same thing is replicated on page 11, also under item 1 -- 2010.
Dr. Ahmed Yakubu Alhassan 10:35 a.m.
Madam Speaker, on page 10, number xxiii, the spelling of the last name of Dr. Augustine Langyintuo, the last alphabet of the last name is not “w” but “o”; it is “tuo”. And Madam Speaker, it is the same case on page 12.
Madam Speaker 10:35 a.m.
Yes, thank you.
So, we will now move on to pages
11 - 16.
Hajia Mary Salifu Boforo: Madam
Speaker, I am sorry to take you back to page 9. I was at the meeting at Elmina but my name is not recorded as being present -- page 9, column 2, paragraph 2.
Madam Speaker 10:35 a.m.
So your name is among? Hon Member, I think it is

Hajia Boforo: Madam Speaker, my

name is Hajia Mary Salifu Boforo.
Madam Speaker 10:35 a.m.
Thank you.

Hon Members , the Votes and Proceedings of Tuesday, 9th February, 2010 as corrected is adopted as the true record of proceedings.

We now move on to the Official Report of 4th February, 2010.

Any corrections?
Prof. (Emeritus) S. K. Amoako 10:35 a.m.
Madam Speaker, column 440 under Mr. Nitiwul, the second one and attributed to
Mr. Nitiwul 10:35 a.m.
“Madam Speaker, I said he did not answer my question. What I said was whether the training was limited to the existing once” -- “ones”, not “once”.
Thank you.
Madam Speaker 10:35 a.m.
I still have not got it.
Prof. (Emeritus) Amoako 10:35 a.m.
Madam Speaker, column 440, paragraph 5, under
Mr. Nitiwul, line 4 10:35 a.m.
“. . . the training was limited to the existing once that existed before . . .” The “once” should be “ones”.
Thank you.
Mr. Ambrose P. Dery 10:35 a.m.
Madam
Speaker, column 450, paragraph 4, under the contribution by Mr. Ambrose P. Dery, starting from line 7, we have the Hon Deputy Minister for Justice -- There is a typographical spelling error of “Justice” without an “i” and it should also be Deputy
Attorney-General. So these are the two corrections that I want effected in that part of the contribution.
Thank you for the opportunity.
Madam Speaker 10:45 a.m.
Any o the r corrections? [Pause.]
Hon Members, the Official Report of 4th February, 2010 as corrected represents the true record of proceedings.
Yes, we move on to Questions -- Question time.

The first Question to the Hon Minister stands in the name of Hon Joseph Ampomah Bosompem, Member of Parliament for Akim Swedru.
Mr. Joseph Ampomah Bosompem 10:45 a.m.
Madam Speaker, thank you very much. Before I put the Question, a slight comment.
Madam Speaker, with your permission, the Answers provided to the three Questions indicate that -- [Interruptions.] Madam Speaker, it is a short comment. [Interruption.] The Answers given -- [Interruptions.]
Madam Speaker 10:45 a.m.
Hon Member, let us follow procedure. Ask your Question -- [Interruption] -- then when the Hon Minister --[Interruption.] It will be corrected by him or whatever. We did not send this reply. The Hon Minister will deal with it. So I think if you put your Question and then he answers, then you can clarify with him. I think that will be proper.
Mr. Osei Kyei-Mensah-Bonsu 10:45 a.m.
Madam Speaker, just two observations. The issue that my Hon Colleague is raising
relates to the time the Question was filed. He is saying that he filed the Question in June last year. Now, as we do know, the rules of procedure permit the Hon Minister to respond within a certain time frame and to that extent, maybe, some aspects of the Answers provided may be irrelevant.
But we still encourage the Hon Minister to answer the Questions for whatever they are now worth. I guess Parliament will be guided in future regarding when Questions are asked and when Answers are supposed to be provided. That is the first observation.
Madam Speaker, the second one relates to the Answers that have been provided. I believe the Hon Minister is competent enough to respond to questions that may be asked subsequent to the main Questions. What we notice today, Madam Speaker, is that three Answers have been provided for the three Questions.
The first time when the Questions were slated to be answered, that was Friday, two weeks ago, three Answers were provided to the three Questions. They could unfortunately not be answered because the Hon Minister was not with us. And because it was a Friday and we had to close early, we deferred the Questions to the following Tuesday.
Madam Speaker, on Tuesday, when we came, there was only one Answer for the three Questions and there had been significant alterations. We then asked that because the Questions related to policy issues, the Hon Minister will be the better person to respond to them. I think that generated some heat which some of us felt was absolutely unnecessary. In the event, we stood the Questions down and your goodself counselled that we stepped the Question down.
Today, the Hon Minister has come
rose
Madam Speaker 10:45 a.m.
Yes, Hon Tia?
Mr Akologu 10:45 a.m.
Madam Speaker, I just wanted to commend the Hon Minority Leader for the explanation he has given. But I said that the practice has been that if these observations that he has made were discussed with Madam Speaker,
Mr. Hackman Owusu-Agyemang 10:45 a.m.
Madam Speaker, I want to comment on the comments by the outgoing Deputy Majority Leader.
Madam Speaker, one of the fundamental principles of parliamentary democracy is that we are masters of our own rules. The Supreme Court has said so. So when we make a decision here, which is especially endorsed by Madam Speaker, I do not expect anybody, nobody to go criticizing us and talking about us. The young man should be advised to go kpele, kpele -- slowly, slowly -- and stop always commenting on what Parliament decides. What Parliament decides is our prerogative. If he wants to be a Member of Parliament, he should go and fight for a seat and should not come here and when we make decisions, he goes talking about them.
So I am counsel l ing the Hon Deputy Majority Leader as well as the Majority Chief Whip to talk to him -- [Interruptions] -- and to tell him that next time he comes here, he must come with a lot of decorum and when a decision is taken, he must live with it because we all live with decisions that are not entirely what we expect. So next time, we do not
expect him to make all those comments. It is not necessary, it drops everybody on the wrong side.
Mr. Ambrose P. Dery 10:55 a.m.
Madam Speaker, I think that all interventions so far have been well articulated except to say that the principle remains the same, that by our Orders, it is the Ministers who have the right to come here and that Parliament would appropriately extend the privilege. So let nobody have illusions -- [Interruptions.]
Madam Speaker 10:55 a.m.
Order! This is only a repetition of what we had done here before, that it is the Minister who comes and that with your consent, the Deputy Minister could come. So he was only reiterating the principle.
ORAL ANSWERS TO QUESTIONS 10:55 a.m.
MINISTRY OF FINANCE AND 10:55 a.m.
ECONOMIC PLANNING 10:55 a.m.
Madam Speaker 10:55 a.m.
Order! Let us hear the Answer from the Hon Minister.
Minister for Finance and Economic Planning (Dr. Kwabena Duffuor) 10:55 a.m.
Thank you, Madam Speaker, for this opportunity. I also thank Hon Members of the Minority for allowing me to respond to these Questions.
Madam Speaker, Government is aware
Minister for Finance and Economic Planning (Dr. Kwabena Duffuor) 10:55 a.m.
at the end of December 2008, to less than 10 per cent at the end of December 2009. The chronic fiscal imbalances of the earlier years were the root cause of the persistent inflation. Bringing the fiscal deficit down or under control, was therefore, essential to the success of counter-inflationary policy and to the macroeconomic stability that we are currently enjoying.
The fiscal adjustment undertaken thus far has permitted a significant reduction in the debt burden, and reduced the risk premium on debts which has helped to restore confidence in the macroeconomic policy. Indeed, the success in this area means Government will no longer be competing with the private sector in the money market for credit. Consequently, businesses will no more be faced with the “crowding out” problem we have had in the past.
Madam Speaker, there has generally been a precipitous decline in interest rates on the auction market from December, 2009 to date, with the short-end of the money market recording the sharpest declines. The benchmark average interest rates on the 91-day Treasury Bills reduced from 24.9 per cent recorded on December 4, 2009 to around 17.8 per cent on February 5, this year. This is a clear indication that policies are working and the economy is entering into a cycle of declining interest rates. We expect the banks to take a cue from these favourable developments and adjust accordingly.
Similarly, interest rates on the 182- day Treasury Bill dropped from 27.96 per cent as at December 4, 2009 to 19.4 per cent on February 5, this year, while the 1-year Treasury Bill Note recorded a downward movement from 25.5 per cent as at December 4, 2009 to 18.5 per cent as at February 5, 2010. To the extent that

rates are falling, the private sector can now borrow at relatively low rates to improve upon their operations. This could lead to increases in profits and job creation, among others. Obviously, this will lead to increases in productivity and general economic growth.

Gross foreign reserves have shot up to about US$3 billion, equivalent to over 2.5 months of import cover for goods and services as at the end of December 2009, compared with the US$2.0 billion equivalent to 1.7 months of import cover recorded at the end of December 2008. This will further provide cushion or strengthen our cedi and enhance its competitiveness with a view to making Ghana attractive to foreign investors.

Madam Speaker, you would agree with me that the macroeconomic stability achieved so far, has brought about some certainty which will enable the private sector to plan. We have seen six successive months of sustained appreciation in the value of our domestic currency against the dollar. This is expected to have a calming effect on inflationary pressures in our economy.

Infrastructure

Madam Speaker, as you are aware, Government believes infrastructure to be the physical capital that underpins all economic and social interactions. Accordingly, in the Budget and Economic Policy Document for 2010 which was read in November, 2009, various measures aimed at increasing productivity and economic growth were announced.

In the area of agriculture, Government has put in place, measures to improve productivity in the selected food security commodities, small remnants and fisheries subsector. Government is enhancing the

adoption of improved technologies by smallholder farmers, providing block farming for the adoption of technologies; and instituting the fertilizer subsidy programme this year. A Buffer Stock Management Agency is being constituted with the responsibility of holding food security buffer stocks and intervening in the markets to ensure that competitive prices are paid to farmers at all times.

A mechanization centre with full complement of equipment is being established in each of the remaining 90 districts in addition to the 80 already established. Individual farmers and agro- processors are also being assisted to own machinery/equipment nationwide.

Various policies have been put in place to support the efficient and effective management of the mining resources and to improve the capacity and operations of the mining sector.
Madam Speaker 11:05 a.m.
Yes, Hon Member, your three questions?
Mr. Bosompem 11:05 a.m.
Madam Speaker, with your permission, I refer Hon Members to page 15, paragraph two of the Order Paper and with your permission, I read:
“Madam Speaker, there has generally been a precipitous decline in interest rates on the auction market from December 2009 to date, with the short-end of the money market recording the sharpest declines. The benchmark average interest rates on the 91-day Treasury Bills reduced from 24.9 per cent recorded on December 4, 2009 to around 17.8 per cent on February 5, this year. This is a clear indication that policies are working and the economy is entering into a
cycle of declining interest rates.”
Madam Speaker, it is commendable that we have recorded inflation at 15.97 per cent -- [Interruptions] -- Government Treasury Bill rate at 17.8 per cent, prime rate around 18 per cent -- these economic statistics are available to us. [Interruptions.] You realize that borrowing rates from banks, including Amalbank that I heard four days ago on television, quoted interest rate at 36 per cent.

Can the Hon Minister, please, explain to the House why interest rate charged by the banks -- that is where we source our money? Interest rate is more than twice the inflationary rate recorded.
Madam Speaker 11:05 a.m.
Hon Minister, it is a question for you; I think the word is “why”?
Dr. Duffuor 11:05 a.m.
Madam Speaker, the Hon Member for Akim Swedru has made a point. If he heard me, I stated that the 91-day Treasury Bill rate which was 24.9 per cent in December has dropped to 17.8 per cent. It means that Government is borrowing at 17.8 per cent. Obviously, we are not happy about the banks lending to the private sector at 30 plus per cent. [Interruptions.] So we have called all the banks -- [Interruption.]
Madam Speaker 11:05 a.m.
Order! Can we listen to the Hon Minister?
Dr. Duffuor 11:05 a.m.
We have called all the
Madam Speaker 11:05 a.m.
Hon Member, have you got another supplementary question?
Mr. Bosompem 11:05 a.m.
Madam Speaker, the Hon Minister is the manager of the economy. In what capacity is he calling the banks and persuading them to reduce the interest rate? [Uproar.]
Dr. Duffuor 11:05 a.m.
Madam Speaker, in my Answer, I said “we”; I did not say “I”. By saying “we”, the Governor and myself invited the banks and spoke to them. So I said “we” and not “I”.
Madam Speaker 11:05 a.m.
Yes, Hon Member,
your third question?
Mr. Bosompem 11:05 a.m.
Madam Speaker, with your permission, page 15, paragraph 3 and I read:
“Similarly, interest rates on the 182-day Treasury Bill dropped from 27.96 per cent as at December 4, 2009 to 19.4 per cent on February 5, this year, while the 1-year Treasury Note also recorded a downward movement from 25.5 per cent as at December 4, 2009 to 18.5 per cent as at February 5, 2010. To the extent that rates are falling, the private sector can now borrow at relatively low rates to improve upon their operations.”
Can the Hon Minister indicate to the people of Ghana the rate at which the private sector can access credit by the end of 2010?
Dr. Duffuor 11:05 a.m.
Madam Speaker, the Hon Member will recall that the economic indicators have been changing. Inflation which stood around 20.7 per cent in June, by December, was 15.9 per cent. I expect inflation to go down below 15 per cent as at the end of January. I understand the way the figures are going, therefore, we will not be surprised to hear that inflation for January is below 15 per cent. As the indicators start falling, obviously, the others will follow.
The interest rates -- if you want me to
Mr. C. S. Hodogbey 11:15 a.m.
Madam Speaker, I would like to know from the Hon Minister whether in collating data for economic growth and productivity, they take into consideration manufacturers index, purchasing orders and construction industry index. If so, the interest rate at Burkina Faso is about 10 per cent, the interest rate in Ghana is from 20 to 35 per cent. How do we try to compete with industries in Burkina Faso?
Dr. Duffour 11:15 a.m.
Madam Speaker, as a
Minister, I do not say that I am happy about the interest rate in the market; I have never said so. I am saying that as managers of the economy, we are working towards lower rates. We are getting inflation down; we got the cedi stabilized; all indicators are pointing downwards and therefore, I am saying that we should expect the bank rates to also follow suit.
I have mentioned in my Answer that the banks should take cue from what we are
doing as government. If we are borrowing at 17.8 per cent, why would they lend at 30 per cent? I have mentioned that.
So my Hon Colleague, yes, we are working as managers of the economy and we hope we would be able to bring the rates down so that we would be very competitive.
Dr. A. A. Osei 11:15 a.m.
Madam Speaker,
I thank the Hon Minister for making the effort to answer the Questions that have been posed to him. Before I pose my question, however, I want to advise my senior Colleague that he may have inadvertently made a comment which I hope he would take note and withdraw. This is because a Minister for Finance and Economic Planning and the Governor of the Bank of Ghana cannot direct -- I do not think he meant to say that --
But I want him to take note that in this
Madam Speaker 11:15 a.m.
Ask him whether
they can; ask him the question.
Dr. A. A. Osei 11:15 a.m.
Madam Speaker,
Madam Speaker 11:15 a.m.
Order! Order!
Yes, Hon Minister?
Dr. Duffour 11:15 a.m.
Madam Speaker, my
Hon Colleague knows that Ministers for Finance do not give instructions. He knows that when the Governor and the Minister meet banks, they talk about moral association. I said they should take cue from what we are doing as government.
rose
Mr. J. K. Avedzi 11:15 a.m.
Thank you very
Mr. Kyei-Mensah-Bonsu 11:15 a.m.
Madam
Madam Speaker 11:15 a.m.
Yes, Hon Members, let me listen.
Mr. Kyei-Mensah-Bonsu 11:15 a.m.
I guess
you would recognize that I am not Dr. Akoto and I cannot be Dr. Akoto. Indeed, the person who even asked the question now is not Dr. Akoto, so maybe, they are a bit confused.
Madam Speaker 11:15 a.m.
Yes, let us hear
Mr. Kyei-Mensah-Bonsu 11:15 a.m.
But
Madam Speaker, the question that he wanted to ask has not been asked. This was for a clarification, so if you may allow him to ask the supplymentary question.
Madam Speaker 11:15 a.m.
I agree, I agree. Yes, Hon Member?
Dr. A. A. Osei 11:15 a.m.
Thank you very
much. Madam Speaker, on page 15 of the Order Paper, the Hon Minister, in his Answer made this statement and with your permission, I want to quote:
“The fiscal adjustment undertaken thus far has permitted a significant reduction in the debt burden . . .”
Madam Speaker, how does the Hon Minister reconcile that with the following fact? On page 340 of the Budget that he presented to us - the Budget projected that
Madam Speaker 11:15 a.m.
Yes, that is a
question for him. Yes, Hon Minister?
Dr. Duffour 11:15 a.m.
Madam Speaker, the
answer is very simple. I am saying that we are not borrowing as much as we used to do now. It is that which has led to the drop in the interest rate. If you have a problem with financing, you would go and look for money. We are saying that the pressure has gone down, so we are not borrowing as much as we used to do, that is why the rates are going down -- [Interruptions.] No, he referred to the past, we have paid so much -- [Interruption.]
Madam Speaker 11:15 a.m.
Can he answer the question? Can we allow the Hon Minister to answer the question?
Dr. Duffour 11:15 a.m.
He is referring to last year, we paid more than we had even projected as you are saying. We came here for a supplementary budget that enabled us to pay what we paid last year. I am saying that, as we are speaking now, look at what has happened between December and now. December, the 91-day Bill was 24.9 per cent; now, it is 17.8 per cent within two months -- it is less than two months. We are seeing a real change, that is what I am talking about.
Mr. J. Y. Chireh 11:15 a.m.
Madam Speaker,
I am rising on a point of order. When a Question is asked of a Minister or a Member, the one who asked the Question is given the opportunity to ask three supplementary questions. Now, we have other people being given more than one supplementary question, and some of them are going against the Standing Orders again by arguing with the Hon Minister.
Madam Speaker, I think that we should stick to the Standing Orders and ensure that Hon Ministers are given the opportunity to give explanations to Hon Members rather than argue with the Hon Minister, and nobody should be allowed one more question apart from one supplementary question.
Mr. Kyei-Mensah-Bonsu 11:15 a.m.
Madam
Speaker, just so that the Hon Minister for Local Government and Rural Development does not mislead this House. There is no provision in our Standing Orders restricting Hon Members who ask subsequent questions to ask just one question. There is no provision -- let him tell us, where is the provision? -- [Interruptions] -- There is absolutely no provision in the Standing Orders. Show us.
Madam Speaker 11:15 a.m.
Hon Member, is it not a convention that I met here, that the questions after the three supplementary questions from the questioner will go to Members and that is one question at a time? I know it is not written down how many questions but that is the convention I met here.
Mr. Kyei-Mensah-Bonsu 11:25 a.m.
Madam Speaker, with respect, the Hon Minister pretended to be reading from the Standing Orders. He held high the Standing Orders and said that “it is here” -- [Points at
the Standing Order]. He even got up on a point of order, which meant that the Orders were being breached. And clearly, there is no such provision.
Madam Speaker, I agree with you that
generally, we have allowed that. Except that in certain instances, Hon Members asking subsidiary questions are allowed by the Chair just so that the trend may be followed to ask more than one question.
Madam Speaker, that has been the
Madam Speaker 11:25 a.m.
I am glad that
this is happening, because the Hon Deputy Majority Leader is with other Hon Members actively looking at the matters. And these are some of the matters that you should look at when it comes to the crunch of the matter. Even though it is not there, like I said, there was this convention and I must say that it has been followed where other questions have been permitted to follow the trend.
So, I think that was what the Hon
Minister was referring to, not in the general --
Yes, the last question came from the Minority side.
Hon Member for Ketu North (Mr. J. K. Avedzi).
Mr. Avedzi 11:25 a.m.
Thank you, Madam

S o m e H o n M e m b e r s : T h e

backbenchers.
Madam Speaker 11:25 a.m.
Hon Members, I try
to alternate. So, let us take one from here.
Mr. Avedzi 11:25 a.m.
Madam Speaker, thank
you very much for the opportunity.
Madam Speaker, I would like to find
out from the Hon Minister about asking the banks to reduce interest rates and inflation to the general public. Apart from asking the banks to do this, if they fail to do that, what will the Ministry do to ensure that the banks actually listen to them and adhere to that direction?
Madam Speaker 11:25 a.m.
Hon Member, I
Mr. Avedzi 11:25 a.m.
Madam Speaker, I am saying this because we need to put the policy in place to ensure that -- [Interruption.]
Madam Speaker 11:25 a.m.
Well, ask your question?
Mr. Avedzi 11:25 a.m.
What policy will he put in place to ensure that once the inflation goes down, the interest rate for the bank also follows suit?
Madam Speaker 11:25 a.m.
Yes, Hon, make
your suggestion and put your question?
Dr. Duffuor 11:25 a.m.
Madam Speaker, in a
situation like this, the first step will be using the moral suasion. Where that does not work, you come back with other policies.
I am not here to apply the policies because we have not exhausted the moral suasion option yet. If they are not able, if they do not, I would come here with the measures we are putting in place to let them fall in line.

Thank you, Madam Speaker.
Some Hon Members 11:25 a.m.
Backbench.
Madam Speaker 11:25 a.m.
Yes, backbench -- [Hear! Hear!]
Mr. Augustine Collins Ntim 11:25 a.m.
Thank you, Madam Speaker.
The Hon Minister has this morning given a vivid account of the economic performance of the country, both theoretical and all that. The fundamental question is, where is the money in Ghanaians' pockets? Where is the money? Teachers are crying. Doctors are crying. And all Ghanaians' are crying. So, the fundamental question is -- [Inter- ruptions.] -- where is the money?
Madam Speaker 11:25 a.m.
Order! Order! Hon Minister, the question is, where is the money?
Dr. Duffuor 11:25 a.m.
Madam Speaker, the Question is about practical measures we are taking. If the Question had been “where is the money”, I would have prepared for that. But that is not the Question.
Thank you.
Prof. G. Y. Gyan Baffour 11:25 a.m.
Madam Speaker, the Hon Minister for Finance and Economic Planning really knows that moral suasion does not work. I pushed that on him, to his bank, to reduce inflation and interest rate but he could not do it. So, moral suasion is out.
But my question is, Madam Speaker, the whole world that is in recession is actually increasing productivity by spending more money. America and everywhere, they are actually spending more money to spur their economic growth.
Can the Hon Minister tell us what economic principle supports the view that
Madam Speaker 11:25 a.m.
Hon Member, put your question.
Prof. G. Y. Gyan-Baffour 11:25 a.m.
Madam Speaker, countries that are in recession, all over the world, are spending more to spur economic growth. In this country, what we are told is that we should reduce spending. Can the Hon Minister tell us what economic principle supports the view that when you reduce spending, you can increase economic growth? [Hear! Hear!]
Mr. I. A. B. Fuseini 11:25 a.m.
Madam Speaker, I rise to -- [Interruption.]
Madam Speaker 11:25 a.m.
Is it a point of order?
Mr. Fuseini 11:25 a.m.
Madam Speaker, I rise to invite you to disallow the question because it grossly infringes our Standing Orders.
Some Hon Members 11:25 a.m.
It is there.
Mr. Fuseini 11:25 a.m.
So, Madam Speaker, my invitation to you is to disallow this question, because if you allow a supplementary question to be asked on matters that are not contained in the Answer given in this House, you will be opening the Pandora's box for Hon
Members to ask questions not connected to the substantive Answer and that must be disallowed in this House.
Some Hon Members 11:25 a.m.
Yes! -- [Interruptions.]
Madam Speaker 11:25 a.m.
A point of order has been raised. Let us rule on it.
Mr. Kyei-Mensah-Bonsu 11:35 a.m.
Madam Speaker, with respect to my Hon Colleague, I believe that he is completely misinforming and misleading this House. Madam Speaker, he said that he should “refer to matters contained in the Answer”, it does not say so. He should please read the Standing Order again, it does not say so.
Madam Speaker, what our Standing Orders say, and may I read for his elucidation? Madam Speaker, he referred to Order 69. Order 69 says:
“As soon as a Question is answered in the House any Member beginning with the Member who asked the Question may, without notice, ask a supplementary Question for the further elucidation of any matter of fact regarding which the answer has been given, . . .”
Madam Speaker 11:35 a.m.
Order! Let us listen to the Hon Member.
Mr. Kyei-Mensah-Bonsu 11:35 a.m.
Madam Speaker, clearly, my Hon Colleague
misunderstands the import of Standing Order 69. He does not understand it and he has quoted it to mislead himself and this House. He clearly does not understand it. [Interruptions.] Madam Speaker, it says, a member may ask:
“. . .for the further elucidation of any matter of fact regarding which the answer has been given, . . .”
Madam Speaker 11:35 a.m.
Order! Order, please! I do not need any other intervention; I will give my ruling, please. -- [Interruptions.] Order!
Hon Members, we are dealing with a point of order which has been taken. We have to rule on it.
I have heard from both sides and I do not need any other apart from hearing from the Minority Leader which I have.
Any other?
Mr. Kyei-Mensah-Bonsu 11:35 a.m.
Gracious to you, Madam Speaker. Madam Speaker, just so that my Hon Colleagues should understand the point I made. It says that

Madam Speaker, it is “in the Original Question” not Answer. They do not understand. It says “in the Original Question” not the original Answer; they do not understand it. There is a world of difference between a Question and an Answer. Do you not understand this? [Interruptions.] Madam Speaker, the issue is, Question not Answer.
Madam Speaker 11:35 a.m.
Now Hon Members,
Madam Speaker 11:35 a.m.


Hon Member, put your question. Hon Minister, can you answer the question for us?
Mr. G. K. Gbediame 11:35 a.m.
Madam Speaker, the Hon Minister would like the Hon Member to repeat the question to his hearing.
Madam Speaker 11:35 a.m.
Yes, that is what I said. I said “the Hon Member put your question ”but you were too busy talking. So can you put your question again?
Mr. Kyei-Mensah-Bonsu 11:35 a.m.
Madam Speaker, before he asks the question, any time a question is being asked, the Hon Minister is being distracted by the Hon Colleagues sitting close to him. Would they allow him to listen so that we are spared this ordeal of repeating questions -- Hon Asaga, please, leave the Minister alone.
Madam Speaker 11:35 a.m.
Hon Members, I think the Hon Minister is entitled to be briefed. So as for that point, the Hon Minister should take briefing but Hon Member, please, make your question snappy. We have a lot of Questions for the Hon Minister, all bothering on the same thing.
Prof. Gyan-Baffour 11:35 a.m.
Madam Speaker, this is the third time that I am repeating it but what I said was this, that all countries that have actually been facing recession, for example, the Americans, the Europeans, and countries all over the world, they are spending to get themselves out of that recession; that is, to grow the economy. In Ghana, what we are being told, and the Hon Minister is just saying it right here, that they are reducing the deficit, which means that they are reducing spending.
My question is, what economic principle supports the argument that he is making that when they reduce spending,
Madam Speaker 11:35 a.m.
Hon Members, let us listen to our very able Minister for Finance and Economic Planning.
Dr. Duffuor 11:35 a.m.
Madam Speaker, my Hon Friend, who asked the question, knows that he is wrong. Though we have one economics, yet we have many recipes. There is nothing like one recipe in managing an economy. When your debts jump from 7.5 per cent to 15 per cent in a year, when your currency is depreciating at a very fast rate and when inflation is going up, how do you expect the private sector to grow? What you need to do, is to stabilize the economy.
Madam Speaker 11:45 a.m.
Hon Members, I think we have a lot of Questions, shall we move on? Hon Members, let us move on. Hon Members, I think we must defer to this.
Let us move to the second Question. It stands in the same name of Hon Joseph Ampomah Bosompem, on the same more or less issue.
Can you put your Question?

Private Sector Productivity (Unemployed Youth)

Q. 179. Mr. J. A. Bosompem asked the Minister for Finance and Economic Planning what measures the Ministry was putting in place to reinvigorate the private sector to absorb the teeming unemployed youth, with the freeze on employment in the public sector.
Madam Speaker 11:45 a.m.
Yes, Hon Minister, that is a Question for you.
Planning and are currently filling their existing vacancies.
In 2009 alone, Government provided financial clearance for the employment of over 26,529 new officers into the public sector. Out of this number, 14,206 were recruited into the education sector, 14,714 for the health sector and 609 for the remaining MDAs.
Madam Speaker, as you can see, there is nothing like “freeze on employment”.
Mr. Bosompem 11:45 a.m.
Madam Speaker,
my Question talked about what practical measures the Government is putting in place to reinvigorate the private sector to absorb the teeming unemployed youth. That was the Question. It is not the public. Incidentally, the Answer provided showed what is being done in the public sector. Can the Hon Minister do us a favour by telling us the practical measures that he and the Government have put in place to reinvigorate the private sector to help absorb the youth on the street?
Dr. Duffuor 11:45 a.m.
Madam Speaker, in my Answer, I referred to my earlier Answer. My earlier Answer talks of all the practical measures we are putting in place to move the private sector. But the Hon Member's second Question said, “With the freeze on employment in the public sector”. And I am saying that, we are taking all the practical measures to move the private sector but there is nothing like “freeze” and that in the public sector, last year, 2009, over 26,000 people were engaged.
So I am telling the Hon Member that there is nothing like freeze on employment in the public sector. It is wrong and my aim was to correct that impression. There is nothing like freeze in the public sector in this country at all.
Madam Speaker 11:45 a.m.
Hon Minister, I think he just said you did not answer part of the private sector. That point had been well made and taken. His Question was that, “what about activating the private sector?” Was that the Question? [Interruption.] Yes.
Dr. Duffuor 11:45 a.m.
Madam Speaker, the
Dr. Duffuor 11:45 a.m.
Madam Speaker, as I explained in my previous Answer, several practical measures are being put in place to stimulate productivity and growth, which will definitely offer jobs to the teeming youth in the country.
Madam Speaker, one of the objectives of the Public Sector Reforms is to determine the optimal number of employees needed to efficiently and effectively deliver public services. This Public Sector Reforms have become critical because of the heavy burden of the Wage Bill on Government resources. For instance, between 2002 and 2008, wage absorbed over 44 per cent of total tax revenues. This number is expected to rise above 53 per cent by end 2010.
Madam Speaker, to control the growing Wage Bill, government, in May, 2007, issued guidelines on Public Sector Reforms and Pay Roll Management Policy. This policy adopted by government is on what is termed “Selective Hiring Freeze” under which new recruits are employed to replace those who leave the public service.
Madam Speaker, the policy on Selective Hiring Freeze simply means that the MDAs which have reached their establishment limits cannot employ new staff, but can only replace outgoing staff. In fact, under the Selective Hiring Freeze Policy, the MDAs are required to obtain financial clearance from the Ministry of Finance and Economic Planning before new appointments are made.
I must, however, add that the Selective Hiring Freeze Policy does not affect the Ministry of Education and the Ministry of Health. I would like to reiterate that the policy has been in operation in this country for several years now, and all MDAs which have not reached their establishment limits are still employing.
Madam Speaker, it would interest you to know that the following MDAs which have not reached their establishment limits have received financial clearance from the Ministry of Finance and Economic
Madam Speaker 11:45 a.m.
Well, Hon Minister, he asks “where will the other people go?” I do not know whether it is an opinion that he is seeking. I do not really know. But if it is his opinion, if it is facts, he can give them. If it is his opinion, you make sure that you do not hold it against him later on. So make it point blank if there are any programmes to absorb them. But if this is meant to be his opinion, then we cannot put it to him. Can we?
Mr. Bosompem 11:55 a.m.
Thank you, Madam
Speaker. It is not an opinion.
Madam Speaker 11:55 a.m.
All right.
Mr. Bosompem 11:55 a.m.
Madam Speaker, I think the Government is managing this economy, and I think the Constitution requires the Government in power to make sure that people do work in this country. -- [Interruption.]
Madam Speaker 11:55 a.m.
So you are saying what are the plans?
Mr. Bosompem 11:55 a.m.
Madam Speaker, and I know that we have about 300,000 graduates coming from our tertiary inst i tut ions annual ly; and i f the Government is able to take 30,000 for the specialized Ministries, where within the economy will the excess go?
Madam Speaker 11:55 a.m.
Yes, Hon Minister, any plans?
Dr. Duffuor 11:55 a.m.
Madam Speaker, I think
we are always referring to the private sector as the engine of growth. We should all work hard and ensure that the private sector grows to absorb the remaining people. It is between the public and the private. The public has taken so much; the private sector being the engine of growth should take the remaining.
Thank you.
answer is yes. With the measures we have put in place, the private sector is going to grow to absorb the teeming youth.
Mr. Owusu-Agyemang 11:55 a.m.
Madam Speaker, in the Hon Minister's Answer, which he referred to, the previous one says that:
“To the extent that rates are falling, the private sector can now borrow at relatively low rates to improve upon their operations.”
Madam Speaker, the private sector is the engine of growth. Only three days ago, the President of the Association of Ghana Industry (AGI) was on television virtually crying his heart out on the lack of government support to the private sector. And most importantly, the interest rate. Comparing our 32 per cent to 10 per cent in the neighbouring countries and while the textiles industry is collapsing, the poultry industry is collapsing -- most of the industries are collapsing.

Can he say, that interest rates are falling? And if interest rates are not falling, the question we ask him is, what is he doing -- that is, why we introduced the question of the Financial Services Regulatory Authority -- [Interruption] -- what is he doing to move that because interest rates are not falling -- [Interruption] -- so the Hon Minister cannot say that. If they are falling, why have we not -- [Interruption] -- interest rates are not falling.

Question was that

“What measures the Ministry is putting in place to reinvigorate the private sector to absorb the teeming unemployed youth with the freeze on employment in the public sector?”
Madam Speaker 11:55 a.m.
You have answered that part. He said you have answered that there is no freeze and he says that what are you doing? Or are you saying it is related?
Dr. Duffuor 11:55 a.m.
Madam Speaker, in my Answer, I said as I explained in my earlier Answer, several practical measures are being taken. [Interruption.] Read my first Answer. They are all here.
Madam Speaker 11:55 a.m.
I think the Hon Minister has answered the Question.
Your next Question.

Who says he has not answered the Question? Which Member of Parliament is challenging the ruling here? He has answered the Question.

Can you ask your next question?
Mr. Bosompem 11:55 a.m.
Madam Speaker, personally, I am not convinced with that Answer but I will go forward.
Madam Speaker 11:55 a.m.
Hon Member, you may not be convinced. You need not be convinced. The rules say you do not go arguing. You may go for clarification but I do not expect you to be convinced. Your next question? Let us follow the rules.
What is your next question?
Mr. Bosompem 11:55 a.m.
Thank you, Madam Speaker.
Madam Speaker 11:55 a.m.
Thank you, Hon Member. Your next question?
Mr. Bosompem 11:55 a.m.
Madam Speaker, can
Madam Speaker 11:55 a.m.
Yes, your last
question; have you had your three questions?
Mr. Bosompem 11:55 a.m.
Madam Speaker, I cede my privilege to other Hon Members to ask.
rose
Madam Speaker 11:55 a.m.
Is somebody
standing up there? No, I will come to you. Yes, Hon Avedzi.
Mr. J. K. Avedzi 11:55 a.m.
Madam Speaker, in an Answer to the Hon Member's Question, the Hon Minister explained that practical measures were being put in place to stimulate productivity and growth. I want to find out from him, will the growth in the private sector absorb the teeming youth in this country? Is that the position that the Hon Minister has taken?
Madam Speaker 11:55 a.m.
Is it a question or an objection? [Pause.] All right, Hon Hackman Owusu-Agyemang.
Mr. Hackman Owusu-Agyemang 11:55 a.m.
Madam Speaker -- [Interruption.]
rose
Madam Speaker 11:55 a.m.
Yes, Hon Hackman
Owusu-Agyemang, have you got a question for the Hon Minister?
Mr. Owusu-Agyemang 11:55 a.m.
Hon Minister
for Finance and Economic Planning -- sit down, she has called me. [Interruption.] The Speaker called me. [Interruption.]
Madam Speaker 11:55 a.m.
Hon Avedzi, was it a question you asked or it was a comment?
Mr. Avedzi 11:55 a.m.
Madam Speaker, my question was that in the Hon Minister's Answer, he said that measures were in place to stimulate productivity and growth. I want to find out, is the growth that the Hon Minister is talking about, is the private sector going to absorb the teeming youth of this country?
Dr. Duffuor 11:55 a.m.
Madam Speaker, my
Madam Speaker 11:55 a.m.
Yes, Hon Minister, have you got the figures? Can you tell?
Dr. Duffuor 11:55 a.m.
No, Madam Speaker. I need notice. [Laughter.]
Mrs. Osei-Opare 11:55 a.m.
Madam Speaker, I
will give the notice.
Madam Speaker 11:55 a.m.
All right.
Yes, Hon Kan-Dapaah, last question.
Mr. Kan-Dapaah 12:05 p.m.
Madam Speaker, according to the Answer that the Minister has given, headlined inflation has dropped, benchmark average interest rates on 91- day Treasury Bills have dropped very significantly, 182-day Treasury Bill rates have dropped and very significantly. There is macroeconomic stability”.
Mr. James K. Avedzi 12:05 p.m.
On a point of order. Madam Speaker, the answer that the Hon Member is referring to is the Answer to the previous Question. In this particular Question, there is nothing like that, so he is taking the whole House back.
will be running to respond to them. The banks are not responding, there must be a hidden reason which is what I am trying to find from the Hon Minister.
Madam Speaker 12:05 p.m.
Yes, that is all right. Hon Minister, he said with all that you have said, how come the banks are not taking the cue. I think you are entitled to ask -- [Interruption.]
Dr. Duffuor 12:05 p.m.
Madam Speaker, I will advise him to look at the bank rates over the past one month and he will realize that the rates are falling but not at a very -- [Interruption] -- no, we are seeing the base rates of the banks coming down but not as rapid as we would like them to do. So if you want to say they are not coming down at all, it is not true. They are not falling rapidly as I would have liked them to do but to say that it is not falling at all, is not correct. They are, look at the rates again.
Mr. Kan-Dapaah rose —
Madam Speaker 12:05 p.m.
Well, I cannot have three questions from the Honourable.
Mr. Kan-Dapaah 12:05 p.m.
Madam Speaker, but this is to correct -- [Uproar.]
Madam Speaker 12:05 p.m.
Honourable, if we do that, we will be debating the Answer and yet our rules say when they come -- So he has clarified it with a second question. Honourables, we have four more Questions.
I thank you.
Shall we move to the next Question. The third Question stands in the name of the same Hon Joseph Ampomah Bosompem.
Hon Bosompem, put your Question now?
Private Sector Productivity (Stimulation)
Dr. Duffuor 12:05 p.m.
Madam Speaker, I think all that my Hon Friend is asking for is an assurance that interest rates will fall. They will fall because on December 4, I mentioned that the Treasury Bill (TB) rate was 24.9 per cent, now, it is 17.8 per cent; so they are falling. And because the auction rates are falling, we expect that the -- [Interruption] -- no, they will -- [Interruption] -- no, please, look at the base rates, they are falling.
I want to assure Hon Members that they will fall to a level that the private sector will be comfortable with. We are now in February, Hon Members will see the trend going down because as inflation goes down, as the cedi keeps on stabilizing and even appreciating, as we control the deficit very well, there is no reason any bank can keep its rate at a very high rate. It will go down, I want to assure Hon Members.
Thank you.
Mr. C. S. Hodogbey 12:05 p.m.
Madam Speaker,
Dr. Duffuor 12:05 p.m.
Madam Speaker, the
answer is no, but we will compile the data, and if I am asked to present it here, I will be here.
Mrs. Akosua Frema Osei-Opare 12:05 p.m.
Madam Speaker, in the Written Answer on page 18, the Hon Minister indicated that new officers have been recruited into the health and education sectors, and gave figures. Would the Hon Minister tell us how many officers left these sectors as a
Madam Speaker 12:05 p.m.
But it is an issue. It does not have to be in black and white and that it is written. If it arises from it, it is an issue, so I think the question is in order. [Hear! Hear!] [Interruptions.] I think the Minister is entitled to take briefing, is it not? [Laughter.]
Dr. Duffuor 12:05 p.m.
Madam Speaker, I can only assure this House that the interest rates will fall. We have been experiencing it in this country for years now. It did not start last year or this year. If one looks at our data, the deposit rates and the lending rates for years, the spread has been quite wide. We are trying to persuade them through moral suasion to come down, and we are in a very strong position because the other indicators are dropping. Hon Members only have to believe what I am saying, that it will happen. Therefore, between now and December, just as we have shown that inflation is going to get down to ten or even below, the bank rates will also drop.
Mr. Kan-Dapaah 12:05 p.m.
Madam Speaker, I asked a specific question, which has not been answered.
Madam Speaker 12:05 p.m.
Well, he says the answer to the specific question, is that the bank rate will fall.
Mr. Kan-Dapaah 12:05 p.m.
Madam Speaker, that much I accept but I asked a specific question.
Madam Speaker 12:05 p.m.
Last question. What was that?
Mr. Kan-Dapaah 12:05 p.m.
Madam Speaker, how come the banks are refusing to respond to all these positive trends which he quoted -- [Interruption.]
Madam Speaker 12:05 p.m.
Why?
Mr. Kan-Dapaah 12:05 p.m.
Madam Speaker, if things are as glossy as we have been made to believe this morning, then the banks
Mr. Bosompem 12:15 p.m.
Madam Speaker, in conclusion, the Hon Minister stated that AGI is very optimistic in the coming year, this year, 2010. Can he, please, brief the House, the basis of this AGI optimism?
Dr. Duffuor 12:15 p.m.
Madam Speaker, any
survey is based on statistics and I will urge my Colleague to look for a copy of the survey report and understand why they
Speaker. I want to know from the Minister if the private sector is the engine of growth of this country.
Dr. Duffuor 12:15 p.m.
Madam Speaker, yes,
we all believe that the private sector is the engine of growth.
Thank you.
Mr. Dominic B. A. Nitiwul 12:15 p.m.
Madam
Speaker, the Minister says that the Government's policy will enhance the capacity of the private sector and that will spur growth and lead to employment.
Madam Speaker, page 46 of the NDC
manifesto says and I quote --
“Employment opportunities for all those who are willing and able to work.”

Thank you, Madam Speaker.
Madam Speaker 12:15 p.m.
I think the question is a recurring one but Hon Minister, what plans are there to get employment, I think that is -- you may go back and repeat yourself. It does not matter.
Dr. Duffuor 12:15 p.m.
Madam Speaker, I

Q.180. Mr. Joseph Ampomah Bosompem asked the Minister for Finance and Economic Planning, in view of current trends, what practical measures the Government was putting in place to stimulate private sector productivity.
Dr. Duffuor 12:15 p.m.
Madam Speaker, Government will develop and implement training programmes for key decision- makers and policy formulators in Government on the role of private sector in the country. This will enhance the capacity of the public sector to make effective pro-private sector and pro- market decisions to support private sector development.
Madam Speaker, Government will continue to undertake initiatives to enhance competence and capacity at the firm level. This will include the provision of business support and training, extension of micro-credit, venture capital and export credit facilities to small, medium and micro-businesses.
Madam Speaker, Government is implementing policies aimed at ensuring that the environment in which the private sector operates will facilitate sound decision-making. We believe that through macro-economic stability and sound judgment, we will be able to improve the productivity of firms which will lead to overall economic growth.
Madam Speaker, for instance, on the wage front, the personal income tax threshold which has remained unchanged since 2006 has now changed. Government has now increased this threshold from GH¢240 to GH¢1,008, making the current minimum wage “Tax Exempt”. This means, an increase in the disposable income which would lead to an increase in consumption, and finally, lead to an increase in aggregate demand which
came to that conclusion.
I agree with them, the indications are positive, they are all dropping and therefore, if they said that, I will not be surprised but if he doubts it, he should get a copy and he will come to that conclusion also.
Thank you, Madam Speaker.
Mr. Bosompem 12:15 p.m.
Madam Speaker, at
this point, I will cede my privilege to Hon Nitiwul to take my place.
Several Hon Members -- rose --
Madam Speaker 12:15 p.m.
Hon Members, we
Mr. Bosompem 12:15 p.m.
Madam Speaker, I think, as the Hon Member who asked the Question, I had the privilege of asking three questions.
Madam Speaker 12:15 p.m.
It lies with you.
That privilege lies with the person who asked the Question, not with the caucus of the House. Is it not?
Mr. Bosompem 12:15 p.m.
Then I cede it to the Minority. [Interruptions.]
Madam Speaker 12:15 p.m.
Well, I do not like the ceding aspect. I will call people as they stand up but to say that you cede it, you have finished your questions. You have finished your supplementary questions and I will definitely come to him when he stands. But I will only do that after I open the floor for the Members and I alternate. So I will call Hon Nitiwul later but not because you ceded it, it is because he wants to make a contribution.
Mr. David T. Assumeng 12:15 p.m.
Madam
Madam Speaker, with respect, article 174, clause (2) states 12:15 p.m.
“Where an Act, enacted in accordance with clause (1) of this article, confers power on any person or authority to waive or vary a tax imposed by that Act, the exercise of the power of waiver or variation, in favour of any person or authority, shall be subject to the prior approval of Parliament by resolution.”
Mr. Moses Asaga 12:15 p.m.
What is your
question?
Dr. A. A. Osei 12:15 p.m.
Madam Speaker, can
Dr. Duffuor 12:15 p.m.
Madam Speaker, my
Madam Speaker 12:15 p.m.
Well, Hon Akoto, you have your answer. He says he is coming to this House.
Dr. A. A. Osei 12:15 p.m.
Madam Speaker, Hon
Akoto is not here.
Madam Speaker 12:15 p.m.
I am referring to you, forgive me. He says he is coming to take the appropriate authority.
the policy has changed but we have not implemented it.
Dr. A. A. Osei 12:15 p.m.
Madam Speaker, the article is very clear.
Madam Speaker 12:15 p.m.
Yes, Hon Member, your question was good and he has explained that it is not effective yet. It is a policy. So before it becomes effective, he will come here, so he has explained it.
Hon Minister, I think he has drawn your attention to a legal requirement. Before you implement it, it must come here. It is a good --
We come here at Question time to discuss Government policy, to help ourselves on, and he has explained that -- what he says is, “the policy has changed.”
Dr. A. A. Osei 12:15 p.m.
Madam Speaker, with respect, the Answer did not talk about the policy.
“The personal income tax threshold which has remained unchanged since 2006 has now changed. Government has now increased its threshold from GH¢240 to
GH¢1008.”
Madam Speaker 12:15 p.m.
When he said that, he explained that the policy; he said “the policy.”
Dr. A. A. Osei 12:15 p.m.
Madam Speaker, “. . . making the current minimum wage, tax exempt.”
Madam Speaker 12:15 p.m.
No, he did not put it down but when you asked the question, he said he was referring to the policy. Is that not an answer for you?
Dr. A. A. Osei 12:15 p.m.
Madam Speaker, “. . . making the current minimum wage tax exempt.” The article is very clear.
Madam Speaker 12:15 p.m.
But the policy -- he can have any policy or desire or intention and is it effective yet? If it is effective, then you have a good point there,
Madam Speaker 12:15 p.m.
Hon Members, let
us hear the Minister.
Dr. Duffuor 12:15 p.m.
An example is, two weeks
Madam Speaker 12:15 p.m.
Do not argue when the Minister is answering a question.
Dr. Duffuor 12:15 p.m.
An example is that two weeks ago, the President went to a certain region and set up this greening programme, which is going to recruit about 50,000 youth over there. We have put in place a school uniform -- [Interruptions] -- no, ours was different. We made sure that ours was sewn in Ghana and private tailors and seamstresses did the sewing. Ours is different from yours -- everywhere.
So the private sector is growing through our initiatives and look at all those interventions we have talked about in the Budget. A few weeks ago, we paid contractors -- the arrears which were destroying them -- We have paid all of them. Go round, drive on the Achimota- Ofanko road, you will see a lot of workers now working -- [Interruptions] -- it is true. The contractor was with me yesterday. He has recruited one hundred workers over the past two weeks. Go and ask.
Dr. A. A. Osei 12:15 p.m.
Madam Speaker, in his
answer, the Minister made the following statement and with your permission, I quote:
Dr. A. A. Osei 12:25 p.m.
Madam Speaker, this is categorical. He said, “has changed . . .” He did not say “will be changing”.
Madam Speaker 12:25 p.m.
Do you know if it is effective yet?
Dr. A. A. Osei 12:25 p.m.
Madam Speaker, this is a serious constitutional matter.
Madam Speaker 12:25 p.m.
No, no. I think you need to find out if it is effective first.
Dr. A. A. Osei 12:25 p.m.
Madam Speaker, it has not come here, so what he would need to do is to amend his Answer. He cannot say “has changed.” This is a serious constitutional matter. If he had said, “We would be changing…” I would not have had any problem. As an Hon Member of Parliament, he said he had changed but this House has not passed any Resolution. So please, either he amends his Answer or maybe -- [Interruption.]
Madam Speaker 12:25 p.m.
Well, he can easily amend his Answer. Yes, put it to him.
Mr. Frederick Opare-Ansah -- rose
-- 12:25 p.m.
Madam Speaker 12:25 p.m.
Hon Member, let us finish with this issue. Honourable, he said your wording there was not quite correct and that are you going to change that wording because -- otherwise, they would bind you.
Dr. Duffuor 12:25 p.m.
Madam Speaker, I am not saying that we have implemented. The policy has changed.
Madam Speaker 12:25 p.m.
Well, he said the policy.
Dr. Duffuor 12:25 p.m.
Maybe, you should educate me on that. We are saying that
Dr. A. A. Osei 12:25 p.m.
Madam Speaker, the statement he is making here says, “making the current minimum wage tax exempt”. He did not say “it would become. . .”
Madam Speaker 12:25 p.m.
That is why he has explained it. Has he not? That is why he has explained that. [Interruptions.]
Dr. A. A. Osei 12:25 p.m.
Madam Speaker, I see where he is coming from. He signalled the intention to come to this House but he has not come yet and he is saying he has changed it and that is my worry.
Madam Speaker 12:25 p.m.
He says he will come.
Dr. A. A. Osei 12:25 p.m.
Madam Speaker, we agreed with him when he signalled his intent but we have not made a Resolution, then he comes to us today, he says, “I have changed it.” That is my difficulty.
Madam Speaker 12:25 p.m.
Well, your input is very important and that, if he is going to forget, he should not forget that he should come here.
Dr. A. A. Osei 12:25 p.m.
So is he saying that he intends to vary the tax? Is that what he is saying now?
Madam Speaker 12:25 p.m.
No, no. Yes, he intends. [Laughter.]
Dr. A. A. Osei 12:25 p.m.
He did not say it. If he says that, I will not have any difficulty. He did not say that, so if he says that he intends to make his tax exempt, I will not have any difficulty.
Madam Speaker 12:25 p.m.
All right. So put the question to him.
Dr. A. A. Osei 12:25 p.m.
Madam Speaker, can
the Hon Minister tell us that this statement here that he has changed, his intention is to change and not that he has changed?
Madam Speaker 12:25 p.m.
Yes. Hon Minister, he has put the question. Not that you have changed? He said the question for you is, not that you have changed but you intend to change because you have not got the legal requirement in place. Hon Minister, that is the question for you. It cannot be effective. It is the use of the word.
Dr. Duffuor 12:25 p.m.
Madam Speaker, I mentioned that it is a policy which will come to the House. It is a policy, it is not implemented yet.
Madam Speaker 12:25 p.m.
Hon Dr. Osei, I think you have got your answer. He says it is a policy; it would come to the House.
Dr. A. A. Osei 12:25 p.m.
Madam Speaker, that policy came here. It is on page 300 of the 2010 Budget Statement. With respect, let me read:
“To achieve the goal of fair and equitable taxation, the Government will revise …..”
That came already. Now, he has come back, he did not say “will revise” but “has changed.”
Madam Speaker 12:25 p.m.
No, you have got him to say that it is going to change.
Dr. A. A. Osei 12:25 p.m.
No, he did not say that. My worry is that, Madam Speaker, on the Order Paper, it is -- [Interruption.]
Madam Speaker 12:25 p.m.
I know, and that is why he is here. This is not a strictly binding legal thing that would bind him to every word he says. No, that is why you ask him questions; that is why you get explanations and that is what you are doing. You are asking him to explain himself and I think he has explained himself, has he not? It is a good thing that you are drawing his attention to be careful
of the words he uses. He says yes. It is a policy. Intention? They will come here. I think if we carry on with this, we will be debating the Hon Minister.
So I thank you very much, Hon Dr. Akoto Osei for drawing the Hon Minister's attention. We are here to interact with each other.
I think that we should move to the
next Question. [Pause.] Hon Members, we have four more Questions. The Hon Minister has been here all day -- different Minister -- and I have no doubt that the Chief Whip will agree with me that it is time to move on.
Hon Minister, thank you for coming here. This is really what we want from an Hon Minister -- explain policies, take our ideas back and act on them. Thank you for coming. We hope you would come next time.
The next Question stands in the name of Hon George Boakye. He is going to ask the Hon Minister for Food and Agriculture.
Honourable, is the Hon Minister here? Yes, Hon Minister, can you take your seat, please?
Hon George Boakye, can you ask your Question?
MINISTRY OF FOOD AND 12:25 p.m.
AGRICULTURE 12:25 p.m.
Minister for Food and Agriculture (Mr. Kwesi Ahwoi) 12:25 p.m.
Madam Speaker, the Nobekaw Irrigation Scheme is one of the eight schemes under the Small Farms Irrigation Project II being implemented by
Madam Speaker 12:25 p.m.
The Question has been asked and you have three more questions. But if I may come in here; we wanted the Hon Minister for Finance and Economic Planning to come in here to brief us on a few matters. He has been here all day; before moving on to this Question, I should have completed that with him.
So can we just wait for your next questions and get the Hon Minister for Finance and Economic Planning to brief us on what we asked him to come and brief us on.
Hon Minister, we wanted to know times and things; what have you got for us so we could release you to go and do “our money” work for us.
Minister for Finance and Economic Planning (Dr. Kwabena Duffuor) 12:25 p.m.
Madam Speaker, the Ministry has been
informed that next week the First Deputy Managing Director of the International Monitory Fund (IMF) will visit Ghana and he would like to address this august House; if he will be permitted to do so.
Madam Speaker 12:25 p.m.
Hon Minister, how long are you going to take? I thought you had a brochure you were going to share. Are you going to go through the brochure?
Dr. Duffuor 12:25 p.m.
I did circulate this yesterday and it is that he would like to be here -- [Interruption.]
Madam Speaker 12:25 p.m.
Yes, I thought you could summarize for us.
Dr. Duffuor 12:25 p.m.
He would like to be here to address the House -- [Interruption.]
Madam Speaker 12:25 p.m.
Address the House for how long? We are in the middle of a Question, I thought you were going to -- [Interruption.]
Dr. Duffuor 12:25 p.m.
I do not know the number of hours or questions he would like to take from the House.
Madam Speaker 12:25 p.m.
Oh, was it the interaction with them?
Dr. Duffuor 12:25 p.m.
Interaction with them.
Madam Speaker 12:25 p.m.
Well it has to come after we have closed then; because I do not know how long -- we have Question time and we are still in the middle of Question time. But I thought you were going to make an announcement, but if you are going to interact and get questions answered then -- [Interruption.]
Dr. Duffuor 12:25 p.m.
No. I am talking about what he would like to come and do here; to address the House. I do not know what
Mr. Frederick Opare-Ansah 12:25 p.m.
Madam Speaker, I believe, as the Minister is here currently, he gets a feeling of what the House wants. The Business Committee sits tomorrow morning; so I will advise that he provides as much information about the expected meeting to the Committee by tomorrow morning. So that by Friday, when the Business Committee is bringing its statement to the House, it will have adequate information on the programme.
Madam Speaker 12:25 p.m.
Hon Minister, I thought that was all that we need to do and the time you will take. If you meet them, it will be communicated to the House.
Thank you very much.
Hon Member, sorry for interrupting, can we have your three questions if any?
ORAL ANSWERS TO QUESTIONS 12:25 p.m.
Mr. K. Anyimadu-Antwi 12:25 p.m.
Madam Speaker, I am satisfied with the Answer given by the Hon Minister, except that I want the Hon Minister to tell me exactly when the valuation report will be sent to BADEA for final approval. I will be glad if the Hon Minister avoids the simple answer “very soon”.
Mr. K. Ahwoi 12:25 p.m.
Madam Speaker,
any moment from now, we will send it to BADEA for the no objection.
Mr. Anyimadu-Antwi 12:25 p.m.
Madam Speaker, thank you.
Mr. Frederick Opare-Ansah 12:25 p.m.
Madam Speaker, in the Hon Minister's Answer, you will notice a very detailed briefing is given until a certain point when suddenly the contract was terminated. It is clear that the contractor faced major challenges; flooding, land disputes and so clearly, they could not have met the target. Could the Hon Minister tell this House, apart from these factors, what were the other considerations which the evaluators
he is coming to talk about. That is all.
Madam Speaker 12:25 p.m.
Hon Members, I
thought when we said he should brief us, a leaflet came which was distributed to you and that I thought he was going to take a minute or two to tell us that they are there.
Hon Minister, if you are going to tell them that they are in their pigeon holes and the time; but, if it is going to take too long, then like I said, I cannot interrupt Question time and have an interaction; what do you say?
Dr. A. A. Osei 12:25 p.m.
Madam Speaker, actually, I was surprised because Leadership had assured us that they will give us some information -- [Interruption.]
Madam Speaker 12:25 p.m.
And they have.
Dr. A. A. Osei 12:25 p.m.
That is not enough. They were supposed to liaise with the Minister for Finance and Economic Planning so that he could tell us he was going to be here for an hour or two and these are terms. So we thought that that was what he was going to discuss. Because, we for example, requested the Hon Minister to brief us on the status of the IMF programme and that is not yet ready. So I think that Leadership as was required, should do the proper thing, liaise with the Hon Minister and come back and inform us, not during this time. This information is not all that we requested.
Mr. G. K. B. Gbediame 12:25 p.m.
Madam Speaker, it was agreed the other time that we will need to be sufficiently briefed before we meet the Deputy Managing Director. I thought the Hon Minister being here wanted to take advantage of his presence to just give us highlights. But the detailed information that is being required, we will liaise with the Hon Minister and make Hon Members apprised with all the information that they require.
Madam Speaker 12:25 p.m.
Hon Member,
you did not even allow me time to get the question. While he was speaking, you were on your feet, I did not get the question and to judge whether the question related to the issue or the matter in hand - so before I could, can you ask your question again?
Mr. Hodogbey 12:25 p.m.
Madam Speaker,
honestly, I would not have asked this specific question if the question did not state one of the 8 schemes under the Small Farm Irrigation Project -- I would not have asked my personal question. So I am asking if these irrigation projects I mentioned formed part of the 8 schemes. If they do, my question is, will the Ministry see to completing these irrigation projects before every budget we bring in new irrigation projects to be done.
Madam Speaker 12:25 p.m.
Hon Member, is
the area in your area -- [Laughter]-- The area which affects the question.
Mr. Hodogbey 12:25 p.m.
Madam Speaker, I believe strongly the 8 irrigation schemes -- my area forms part of that small farms irrigation scheme.
Dr. A. A. Osei 12:25 p.m.
Madam Speaker, in the
Minister's Answer, he talks about Asunafo South District in the Brong Ahafo Region. This man is talking about something in the Volta Region.
Madam Speaker 12:25 p.m.
That is why I want

based their judgment on in determining that the contractor could not meet the set targets and so terminated the contract?
Mr. Ahwoi 12:25 p.m.
Madam Speaker, under normal circumstances with contractors, we give them benchmarks to meet and we evaluate them against those benchmarks and this particular contractor had fallen behind those benchmarks. And giving the fact that what had happened in the past was not his doing, we could not keep the programme hanging on any longer.
In fact, he is not the only contractor whom we have terminated. I think at a later time, I may have the opportunity to address this House on the issue of incompetent contractors who come for contracts and leave this country hanging on because they cannot perform.
Madam Speaker 12:25 p.m.
Let me take a question from the other side of the House.
Mr. C. S. Hodogbey 12:25 p.m.
Madam Speaker, I am in a constituency where we have about three irrigation projects. Aveyime Irrigation Project, Kolor Irrigation Project at Afoado and Agorveme Irrigation Project at Agorveme Dofor; all these have been started the past eight years. None has been finished. I would like to know from the Hon Minister if his Ministry will see to completing these uncompleted irrigation projects before a new one is started -- [Interruption.]
Mr. H. Iddrisu 12:45 p.m.
Madam Speaker,
I rise on a point of order. Madam Speaker, I believe that if you do not stop my Colleague, Hon Hodogbey, he will violently mislead this House. Madam Speaker, once you have admitted a Question, you allow at your indulgence, supplementary questions. The question he is asking, he ought to serve appropriate
Dr. A. A. Osei 12:45 p.m.
Unless they are all in
Ghana.
Mr. Hodogbey 12:45 p.m.
Madam Speaker, the Answer says:
“The Nobekaw Irrigation Scheme is one of the eight schemes under the Small Farms Irrigation Project II being implemented by Ghana Irrigation Development Authority.”
Madam Speaker 12:45 p.m.
Yes, but was your
area in one of them?
Mr. Hodogbey 12:45 p.m.
Madam Speaker,
my question is, are the eight irrigation schemes all in Nobekaw District? If not, then my irrigation scheme forms part of the eight.
Madam Speaker 12:45 p.m.
Yes, then you have
to rephrase the question.
Mr. Hodogbey 12:45 p.m.
Madam Speaker, I
will rephrase. I would like to know from the
Minister when his Ministry will complete uncompleted irrigation projects before pursuing new ones.
Madam Speaker 12:45 p.m.
I thought your question should have been whether your area fell within the 8 areas that the question covers.
Mr. Hodogbey 12:45 p.m.
Madam Speaker, because it has been stated by the earlier answer from the Hon Minister for Communications, Mr. Haruna Iddrisu, that this is a specific question and therefore, I should come properly, and for that matter, I am trying to rephrase to ask of the 8 uncompleted irrigation projects --
Madam Speaker 12:45 p.m.
Yes, that is an
appropriate question.
Mr. Hodogbey 12:45 p.m.
When will his
Ministry complete those ones before initiating a new programme?
Madam Speaker 12:45 p.m.
Hon Minister, he
says the 8 areas, when will you finish, then you can move on to other areas, that
is the question?
Mr. Ahwoi 12:45 p.m.
Madam Speaker, I want
to beg the Hon Member who asked the question to give me time to bring a specific response to the question that he is asking for because these projects are in different stages of construction and therefore, we cannot put a time frame on when all of them will be finished. They will be finished each according to the time frame that has been given them.
Prof. (Emeritus) S. K. Amoako 12:45 p.m.
Madam Speaker, the Minister's Answer appears very detailed and very impressive. What is missing in the Answer though is the total contract sum and how much was paid to the contractor before the contract was terminated and how much it would cost the new contractor whoever will get it to complete the project. There are no figures -- [Interruption.]
Madam Speaker 12:45 p.m.
Then ask the
question, if it is not there and it is relevant. The Question did not ask for details of what you are saying but you can ask these things.
Prof. (Emeritus) Amoako 12:45 p.m.
Hon
Minister, would you tell this House how much the contract sum for the project was, how much has been paid to the contractor who has been terminated and how much it will cost to complete the contract?
Mr. Ahwoi 12:45 p.m.
Madam Speaker, once
again, I would plead time to present these specific answers. I do not have them at the moment.
rose
Madam Speaker 12:45 p.m.
Can we move to the next Question or - maybe, we will have a last quick question. Our time - now, we have taken two hours over Question time, but please, put your last question and then we will move on. We have three more Questions.
Mr. Ahwoi 12:45 p.m.
Madam Speaker, for
now, we have not charged the contractor for causing financial loss. What we have done is to accuse him of non-performance and therefore, according to the rules of engagement, terminated his contract. Maybe, subsequently, we would look at the other aspects of the case, whether he can be charged appropriately.
Madam Speaker 12:45 p.m.
The next Question
stands in the name of Hon Gabriel Kodwo Essilfie (Shama). Is he here?
Mr. Fritz F. Baffour 12:45 p.m.
No, he is not.
He has asked for permission to be away for a while and has asked me to stand in for him to ask his Question.
Madam Speaker 12:45 p.m.
Put your Question
now?
L.I. for Enforcement of Ban on Light, D.D.T., et cetera for Fishing
Q. 350. Mr. F. F. Baffour (on behalf
of Mr. Gabriel Kodwo Essilfie) asked the Minister for Food and Agriculture when the Legislative Instrument for the enforcement of the ban on the use of light, carbide, DDT, dynamite and other explosive for fishing in our territorial waters would be laid before Parliament.
Mr. Ahwoi 12:45 p.m.
Madam Speaker, Members of the House will recall that the draft Fisheries Regulation was first laid in Parliament in early 2008 but was
rejected because there was no Fisheries Commission at that time to give its consent as provided in the statutes. In August 2008, the Fisheries Commission was commissioned but could not complete the review of the L.I. before it was dissolved in early 2009. The current Commission came into office in September 2009 and had done most of the work.
However, we had to wait for the World
Bank's comments as stakeholders, and which were received in December 2009.
The Fisheries Commission is, therefore, organizing a three (3) day participatory meeting by all stakeholders on the draft L.I. - 2010 from 9th to 11th February to validate its contents.
After the workshop, the Commission will submit the document with its amendments for Cabinet approval before it is laid in Parliament.
Madam Speaker, in the new draft Regulations are the prohibition of fishing methods like what the Hon Member is asking about:
use of light attraction for fishing;
use of explosives and chemicals; and
pair-trawling among others.
Mr. Baffour 12:45 p.m.
Madam Speaker, I would like to further ask the Hon Minister whether when he mentions “stakeholders”, the fishing communities, the affected communities have been included as stakeholders and that their participation in the said discussions is ensured.
Mr. Ahwoi 12:55 p.m.
Madam Speaker, the answer is yes. The fishing community has been involved through their associations,
the community based fishing organisations among others. I do not have the list here. But I have a list of participants at the workshop in the office.
Mr. Baffour 12:55 p.m.
Madam Speaker, I am
satisfied with the answer.
Thank you.
Mr. J. K. Adda 12:55 p.m.
Madam Speaker,
I would like to ask the Hon Minister whether the ban on DDT as an insecticide in spraying vegetables is in force in Ghana. And if it is not in force, does he have any plans to ban it in the country?
rose
Madam Speaker 12:55 p.m.
Yes, Hon Deputy
Majority Whip?
Mr. Gbediame 12:55 p.m.
Madam Speaker, we
are talking about the use of chemicals in fishing. And I do not see the relation between using DDT in spraying crops, as pertained in the Question. So, I think he should come in a proper way and ask a substantive Question.
Madam Speaker 12:55 p.m.
Well, I do not think
the question is too far off the mark; if he can help us whether DDT could also be sprayed on crops. If he can -- If he needs time to come -- but I do not think it is too far out of the mark. So, I think we would allow it.
I thank you, though, for the intervention.
Yes, Hon Minister?
Mr. Ahwoi 12:55 p.m.
Madam Speaker, the issue
of DDT is a very debatable one, in that it is ongoing -- the issue whether it can be used or not be used on food items. I would take your advice and go and prepare the responsive notes on this one. There is one side of the argument that says DDT can be used; and sometimes it is allowed
to be used. There is the other side that says we should not use DDT. So, there is some controversy on this particular subject. I would bring back the responses appropriately.
Mr. John Gyetuah 12:55 p.m.
Madam Speaker,
the Hon Minister has admitted that the L.I. is in the process. In the meantime, until the L.I. comes into play, what interim measures is he putting in place to ensure that these nefarious activities are curbed?
Mr. Ahwoi 12:55 p.m.
The law as it stands now, Madam Speaker, is inept to take action on offenders. Because the law does not specify exactly what the offences are and that is what the regulations are supposed to be working on so that they can give effect to the law. In the interim, we are educating the fisherfolk. In the interim, we are asking the Ghana Navy to be extra vigilant.
But we have had cases where we have effected arrests, have gone to the courts and the courts have set the culprits free. And it makes it very difficult in that sense to continue that exercise. But the education on the fishermen front is ongoing through their various associations to try very hard and stay away from what will eventually kill the whole industry.
Madam Speaker, that is what we are doing at the moment.
Ms. Cecilia Abena Dapaah 12:55 p.m.
Madam
Speaker, I want to find out from the Hon Minister why the Fisheries Commission which was so badly needed for the laying of the Fisheries Regulations was dissolved a few months after it was set up. Was it because the Commission had members who were not doing their work well or there were other reasons?
Mr. Ahwoi 12:55 p.m.
Madam Speaker, the
Fisheries Commission that the Hon Member is talking about, I think, never sat. They never performed. And therefore, when the new Government came into
Madam Speaker 12:55 p.m.
Yes, can we move to the next Question, which stands in the name of the Hon Member for Agona East (Mr. John Agyabeng).
Yes, Hon Member, put your Question, please?
Increased Food Production for 201 (Measures)
Q. 351. Mr. John Agyabeng asked the Minister for Food and Agriculture what measures were being put in place to ensure an increased food production in 2010.
Mr. Ahwoi 12:55 p.m.
Madam Speaker, this is a mouthful of a Question. Eventually, he is asking for the whole strategy -- agricultural strategy as contained in the Budget.
In line with the Food and Agriculture Sector Development Policy (FASDEP II) and Medium-Term Agric Investment Plan (2009-2015), a number of guidelines and policy strategies have production for 2010 and beyond.
Among these strategies include:
1 . F o o d S e c u r i t y a n d Emergency Preparedness
The broad strategy for the attainment of food security is to focus on the National and Agro-ecological Zones for the development of five staple crops (maize, yam, cassava, rice, and cowpea).
MOFA will support in the following areas:
introduce high yielding and short duration crops;
distribute improved and high- yielding root and tuber varieties through the Root and Tuber Improvement and Marketing Programme (RTIMP) and supply farmers with improved seeds for cultivation; and
facilitate commodity value chain approach.
We shall also continue the Youth in Agriculture Development Programme, particularly called the Block Farming Programme. The Ministry will facilitate the establishment of block farms and agri- businesses. For 2010, we have set targets to cover all the regions.
Hon Members of the House will recall that in 2009, we covered only six regions. In 2010, we are expanding it to cover all the ten regions. We are planning a total of 150,000 hectares of various crops to be cultivated as shown in the table below. And we hope that in all, about 450,000 youth will be employed in the scheme.
Madam Speaker, in addition to these targets, we hope to improve the extension services by training and equipping 100 award winners - the Best Farmer Award Winners - to serve as conduits for extension training.
We have sought permission from the Ministry of Finance and Economic Planning and the Head of the Civil Service to recruit 5,000 agricultural extension agents who will mostly come from the agricultural colleges and the universities.
We also intend equipping the extension agents with motor cycles that are already in the system and other needed accoutrements.
Fertilizer Subsidy Programme, Madam Speaker, will also be implored to increase food productivity. And this time, we want
warehouses and silos and establish private-public partnership in the marketing of these targeted crops.
There is the idea to link smallholder farmers to warehousing system in the grain supply chain; and to improve market information.
We shall also identify selected road network for improvement to enhance food distribution.
Under irrigation, it is our programme to rehabilitate the existing dams to increase their capacities to support dry season farming especially for vegetables and rice.
Madam Speaker, thank you very much.
Madam Speaker 1:05 p.m.
Any supplementary question?
Mr. Agyabeng 1:05 p.m.
Madam Speaker, the Hon Minister's Answer -- Under irrigation, the Hon Minister is saying that the Ministry is going to rehabilitate the existing dams to increase their capacities. The Hon Minister is aware that the
to cover all farmers, Madam Speaker, under the fertilizer subsidy programme.
Under Agricultural Mechanization, we intend to establish at least, one mechanization centre in each district to provide diversified services to all types of farmers and agro-processors. We are in the process of continuous training of agricultural mechanization technicians, and operators. We want to train more tractor and combined harvester operators.
Buffer Stock Programme -- Madam
Speaker, available data shows that there is about 35 per cent of maize and 34 per cent of cassava produce are lost along the chain every year. This is a major loss and potential cause of food insecurity. Some strategies mapped up to curb these occurrences include:
The facilitation of the establishment of a regulated warehousing system that we call the Buffer Stock Management Agency.
The rehabilitation of existing
TABLE HERE 1:05 p.m.
Mr. Ahwoi 12:55 p.m.
Madam Speaker, there are quite a sizeable number of irrigation projects in this country, they number more than 92. All of these are in various stages of repair. Only about 10 per cent of these schemes are working as at now. Indeed, in the southern sector, the Hon Member would recall that in the Greater-Accra Region, we have the Dawhenya and Akuse Irrigation Schemes. In the Central Region, we have the Okyereko Irrigation Scheme, so it is not absolutely true that we do not have any such schemes in the southern part of the country.
But as I am saying, most of these schemes have all come to a halt and we need major resources to revamp them and get them working. And that is what the Ministry is working seriously on rather than take on new schemes, because these schemes, if made to work, will solve the problems that we are talking about. We think that we should look at these existing schemes rather than take on new schemes. But of course, the Accra Plains Irrigation Project is on the line, the studies have been completed. We are talking about 150,000 hectares of land to be irrigated if the scheme comes into fruition, which should cover Volta Region, Greater-Accra and parts of Central Region.
Thank you very much.
Mr. Agyabeng 12:55 p.m.
Madam Speaker, the Hon Minister's Answer is assuring all farmers in Ghana that they are going to benefit from the subsidized fertilizer project, all farmers are going to benefit from this year. I want the Hon Minister to tell us what measures he is going to put in place to ensure that every farmer who wants to have access to the subsidized fertilizer will get it.
Mr. Ahwoi 12:55 p.m.
Madam Speaker, the
earlier fertilizer subsidy programme targeted only small-scale farmers in food crop production. In other words, small- scale farmers in non-food crop production were not to benefit from subsidized fertilizer. That excluded cotton farmers; that excluded oil palm farmers, coconut farmers, vegetable farmers -- just name it.
In the course of administering this kind of arrangement, it has proved very, very difficult and unwieldy because the other farmers who need the fertilizer somehow manage to convince the beneficiary group to sell the fertilizer to them, in other words, breaking the whole system. Medium and large-scale farmers do not benefit from this scheme because they are supposed to be capable to buy from the market at the market price.
We have had to police this system; and policing means that we physically have to make sure that the targeted beneficiaries are those who receive this subsidized fertilizer. It has been very difficult. So we have come up with an idea and we have talked to the Ministry of Finance and Economic Planning and we have talked to the financiers, the World Bank Farmer 2008 fertilizer subsidy and they have promised to finance 2009 fertilizer subsidy. We have got part of the money; we have not got it all.
In 2010, we have made the case that this particular scheme, the way it is
designed does not serve the purpose. What Ghana needs is quantum jump in our food production and fertilizer is basic to agricultural expansion and food increases and therefore, to limit the fertilizer subsidy to only the small-scale food producers is to leave out the rest of farmers who also contribute to food increases. We have therefore, suggested that we make this open to all farmers; but the issue will be who is going to bear the cost of the subsidy? This is going to be a huge cost.
We believe that if we can bring the cost of fertilizer down to a reasonable level and every farmer can buy that on the open market, we could do away with the subsidy, because the price would have been reasonably low for every farmer to access that subsidy. And that is what we are working on now. We are working with the fertilizer companies. Others who are interested are also coming on board.
Let me put the mathematics this way, the market price is GH¢56.00 per 50 kg bag of NPK. The subsidy is 50 per cent. So the farmer ends up buying at 26 per cent. And at that price, the peasant farmers, the small-scale farmers are buying. If we can bring prices down to even close to 26, 30, 40, we would have reduced that subsidy element substantially. And we believe that the fertilizer companies, given the world prices on oil, given the position to look at this suggestion and take away the coupon system -- The coupon itself is fraud with all forms of malfeasance and the cost of the coupon alone, printing the coupon itself is enormous for the budget. So any scheme that we can bring about to reduce this aspect will go a long way to satisfy the purpose for which fertilizer is meant to be used in this country.
Thank you very much.
Mr. Agyabeng 12:55 p.m.
Madam Speaker, the Hon Minister also assured us that 500 extension agents are going to be recruited this year, which is equivalent to pay for each district in Ghana. I want to find out from the Hon Minister whether these new extension agents who are going to be recruited are going to be officials or workers of the Ministry of Food and Agriculture or they are going to have a different role in the agricultural extension work. If it is so then -- [Interruption.]
Madam Speaker 1:15 p.m.
Hon Member, please, ask one question at a time. What is your question.
Mr. Agyabeng 1:15 p.m.
Madam Speaker, I want the Hon Minister to differentiate between the 500 extension agents who are going to be recruited by the Ministry and the existing extension officers who are working with them?
Mr. Ahwoi 1:15 p.m.
Madam Speaker, currently, there is a shortfall of extension agents in the system. The ratio of farmer to extension agents is something like 1: 8,000 or 1:5,000 and we believe that one extension agent should ideally be handling about 500 farmers in his given area of jurisdiction and therefore, it is that shortfall that we have made a case to fill. The 500 extension agents that we are applying to recruit would therefore, complement the Ministry of Food and Agriculture's extension agents that we need for the efficient dispatch of our duties.
Madam Speaker 1:15 p.m.
Has the Hon Member finished with the three questions? [Pause.]
Mr. T. A. Ibrahim 1:15 p.m.
Madam Speaker, in the Hon Minister's Answer, on page
Mr. T. A. Ibrahim 1:15 p.m.


23, he indicated under the Buffer Stock Programme and with your permission, I quote:

“Available data shows up to 35 per cent of maize and 34 per cent of cassava produced are lost along the chain. This is a major loss and potential cause of food insecurity. Some strategies mapped up to curb these occurrences include: . . .”

If we go further, there are strategies that are mapped up to take care of these two crops. What about rice?
Madam Speaker 1:15 p.m.
Hon Minister, you did not talk about rice but he is asking, is there any problem with rice?
Mr. Ahwoi 1:15 p.m.
Madam Speaker, the answer is yes. But we just used cassava and maize as examples of the post-harvest losses that we incur and 30 per cent of the output is lost. If we can save that 30 per cent, we have already increased our agricultural output substantially and therefore, the measures that we are talking about are supposed to mitigate that loss that we have been incurring and we believe that it covers all the crops -- rice, maize, soyabean, cassava and all of that.
Mr. B.A. Banda 1:15 p.m.
Madam Speaker, under agricultural mechanization, the Hon Minister listed certain programmes which the Ministry intends to undertake. Can he give us some time lines within which these programmes will be implemented for the actualization of the agricultural mechanization?
Mr. Ahwoi 1:15 p.m.
Madam Speaker, the
establishment of the mechanization centres is ongoing. As we reported the last time through the Budget and through the Ministry of Finance and Economic Planning's presentation this morning, we have established 85 such centres in
85 districts. We are going on with the others as and when the equipment become available.
Currently, there is no more equipment. We are now going to negotiate the next tranche of equipment, hopefully, from Brazil. We have had initial discussions with the Brazilian Government when we met the President and there are plans to go to Brazil any moment from now to pursue this matter.
In terms of the training of the operators, it is ongoing. The tractors that are in the system and the combine harvesters are being used to train the operators of the companies and the farmers who have currently procured these equipment. [Pause.] I guess that is about the answer that we have.
Mr. M. K. Ntow 1:15 p.m.
Madam Speaker, I think I have to promote myself and come a little forward because it is sometimes difficult for me to be caught by your eyes.
Madam Speaker, I want to know from the Hon Minister, in terms of food security, if he is aware of the conditions of the road that leads to where the farmers do their work.
What is he doing in collaboration with the Ministry of Roads and Highways about the deplorable conditions of the roads where the foodstuffs are produced so that they could get to the marketing centres so that the farmers do not suffer loss after they have toiled to produce foodstuffs for this country?
Mr. Haruna Iddrisu 1:15 p.m.
Madam Speaker, I will crave your indulgence to ask my Hon Colleague to come properly with notice. It is not within the limit of the Hon Minister for Food and Agriculture to be responding to questions on motorable roads. He may have the Answer but I think that he should direct the question properly and give adequate notice for the question
what we are looking at and we are putting the figures together. But if I was to put a very rough figure, I will say we are looking at about 2,000 tractors.
Mr. Frederick Opare-Ansah 1:15 p.m.
Madam
Speaker, when we take a critical look at the Question, it is very specific. The Question is asking about ensuring increased food production in 2010. If we relate the Question to the Hon Minister's Answer under agricultural mechanization and with your permission, I quote:
, 1:15 p.m.
Mr. Ahwoi 1:15 p.m.
Madam Speaker, that is
the plan, that in 2010 every district must have at least one mechanization centre. But of course, it should be subject to availability of the tractors and all. In the event that the tractors do not come at the time that we need them, we hope to make use of the existing facility in the system. We said that we already have about 85 districts covered. What it means is that we have to work these tractors around the clock. I hope that answers the question?
Madam Speaker 1:25 p.m.
Yes, the last
Question stands in the name of Hon Alidu Iddrisu Zakaria, Member of Parliament for Walewale.
Mr. Abdul-Rauf Tanko Ibrahim 1:25 p.m.
Madam Speaker, Hon Iddrisu Alidu Zakari is absent with permission. He has
to be answered.
Madam Speaker 1:25 p.m.
Well, I think this time the Hon Member is right. This deals with roads and it is a problem for Roads. So this Question also dealt with food and even though they cross, I think he would need time.
Hon Minister, I will not ask you to try to answer the Question because it is not in your domain.
Madam Speaker 1:25 p.m.
Hon Member, do you have another question because we are -
Mr. Ntow 1:25 p.m.
Madam Speaker, I was going to say that the Hon Minister is talking about food security in the country and food security goes with trans-portation of the food produced -- [Interruption.]
Madam Speaker 1:25 p.m.
Hon Member, I
have ruled. I say your question is not allowed. Any last question?
Dr. Owusu Afriyie Akoto 1:25 p.m.
Madam
Speaker, the Hon Minister is talking about discussions with the Brazilian Government to bring in tractors and machinery into this country. Could he please tell the House how many tractors and combine harvesters are being negotiated with the Brazilian Government for import for the coming season?
Mr. Ahwoi 1:25 p.m.
Madam Speaker, the subject is under discussion. We have not put the figures together yet. First, we need to secure a loan from the Brazilian Government. These equipment will come under a loan facility which would have to come to the House to be passed and then we will put in the total request that we are talking about. So for now, very roughly, we are talking about not just tractors, combine harvesters, planters and all the equipment that are needed in agriculture is
Madam Speaker 1:25 p.m.
Yes, permission
granted.
Nasia Irrigation Farms (Rehabilitation)
Q. 442. Mr. Tanko Abdul-Rauf
Ibrahim (on behalf of Mr. Iddrisu Zakari Alidu) asked the Minister for Food and Agriculture when the irrigation farms at Nasia would be operational.
Mr. Ahwoi 1:25 p.m.
Madam Speaker, the Nasia Irrigation Scheme was developed with assistance from the Japanese Government under the Ministry of Agriculture as pilot phase of the White Volta Irrigation Project in the mid-seventies --
The scheme is owned by Nasia Farmers and Fishermen Association (NAFAFA) and comprises two main mobile-wheeled pumps, a wooden pump storage house, a low capacity transformer, 3,000 cubic metre capacity night storage reservoir and network of canals and drains.
The irrigable area of the scheme is 40 hectres out of a potential area of 810 hectres.
The scheme has nine (9) fishponds in addition to the irrigable areas.
It is an existing pump irrigation scheme, which was in operation until the late 1990s when the obsolete transformer was removed and replaced with a low capacity transformer by the West Mamprusi District Assembly without the knowledge of the Nasia Farmers and Fishermen Association
(NAFAFA).
However, the scheme was being managed until the following problems brought it to a stop:
excessive seepage of the night storage reservoir, which makes it impossible to use;
broken canal sections; and
non-functioning fishponds.
Madam Speaker, I am happy to announce that the scheme is currently being studied for rehabilitation under the agriculture project of the Millennium Development Authority (MiDA). We are in constant touch with them. The studies are expected to be completed this year and hopefully, rehabilitation works would be completed late this year or early 2011.
Mr. A. T. Ibrahim 1:25 p.m.
Madam Speaker,
in the Hon Minister's Answer, he indicated on page 24 that it is an existing pump irrigation which was in operation until the late nineties when the obsolete transformer was removed and replaced with a low capacity transformer by the West Mamprusi District Assembly without the knowledge of the Nasia Farmers and Fishermen Association.
Madam Speaker, if you read carefully, this Answer tells me that there is a low capacity transformer at the irrigation site at Nasia. Madam Speaker, but as I speak now, there is no transformer at the site; I would want the Hon Minister to confirm or deny that. And if it is not there, then he should tell us where the transformer is.
Mr. Ahwoi 1:25 p.m.
Madam Speaker,
admittedly, I have not been to the site to see whether the transformer is there. But I will take his advice. If he has been there and it is not there, let us know and then we will establish exactly who has removed it, where it is being kept. But the fact is
Madam Speaker 1:25 p.m.
Thank you, Hon
Members.
rose
Madam Speaker 1:25 p.m.
Hon Member, there
will be no Statements today.
Mr. Gbediame 1:25 p.m.
Madam Speaker, I
think that you have not discharged the Hon Minister for Food and Agriculture.
Madam Speaker 1:25 p.m.
Yes, when we take
so long it disrupts --
Yes, Hon Minister, thank you very much for coming to answer our Questions.
Thank you very much.
Mr. Gbediame 1:25 p.m.
Madam Speaker, may
I seek your permission and the indulgence of the House to allow the Hon Deputy Minister for Justice and Deputy Attorney- General to lay the Papers on behalf of the Hon Minister who is unavoidably absent from the Chamber.
Mr. Opare-Ansah 1:25 p.m.
Madam Speaker,
we have no objection.
BILLS -- FIRST READING 1:25 p.m.
PAPERS 1:25 p.m.
Mr. Gbediame 1:25 p.m.
Madam Speaker,
may I seek your permission and crave the indulgence of the House to allow the Hon Deputy Minister for Justice and Deputy Attorney-General to lay this Paper on behalf of the Minister for Trade and Industry.
Mr. Opare-Ansah 1:25 p.m.
Madam Speaker, the Hon Second Deputy Majority Whip does not tell us where the Minister responsible for Trade and Industry is. And he knows that she is the person properly seized with the facts about the readiness of this particular Paper that he is seeking the House's indulgence for somebody else to lay on her behalf. So if he will agree with me, we will rather stand that down and get hold of the Minister responsible for Trade and Industry or at least, know her whereabouts, or an indication of the readiness of that Paper.
Mr. Gbediame 1:25 p.m.
Madam Speaker, thank you. I appreciate the concerns of my Hon Colleague. I would say that the Minister for Trade and Industry is currently at the Accra International Conference Centre (AICC) holding a Commonwealth Business Forum, and that is why she is not here. I think that since we are just laying this Paper, she will be here during the Second Reading and when subsequent motions are moved. I want to give him every assurance that she will be here.

did not come to my notice and therefore, we are at your discretion.
Madam Speaker 1:25 p.m.
But all I wanted to know is, beforehand I did tell the Leaders. Did you not get the message? Because now, instead of telling us that we have to defer it, you are now putting it on me to say that I am deferring it. I thought the reasons have been articulated to you that I have to get up after four and a half hours and that we defer it. The Hon Deputy Speakers are all otherwise engaged in certain -- [Interruption.]
Mr. Gbediame 1:25 p.m.
Madam Speaker, thank you. I think that we will go along with you.
Madam Speaker 1:25 p.m.
So we defer this
one?
Mr. Gbediame 1:25 p.m.
Madam Speaker, this
motion will therefore, be deferred and then laid later.
Mr. H. Iddrisu 1:25 p.m.
Madam Speaker, we can understand but one would have wished that you could allow the motion to be moved and then we can start debate tomorrow.
Madam Speaker 1:25 p.m.
Hon Member, I had ruled that we are moving on and we defer this motion. I did come back to consider this thing but unless you move a substantive motion challenging this decision. If you are not prepared, then I have ruled and the rule states that when I rule on the matter, it stops there. There is no Deputy Speaker here to take the Chair after me; I do not stay for more than five hours. They are otherwise -- so I have asked them - [Interruption.]
Mr. Gbediame 1:25 p.m.
Madam Speaker, we appreciate the situation and taking a cue from the Chair, I, therefore, beg to move, that this House stands adjourned till tomorrow, ten o'clock in the forenoon.
Respectively moved.
Madam Speaker 1:25 p.m.
You have moved,
any seconder?
Mr. Opare-Ansah 1:25 p.m.
Madam Speaker,
I rise to second the motion.
Question put and motion agreed to.
ADJOURNMENT 1:25 p.m.
Madam Speaker 1:25 p.m.
I th ink the permission will be granted.
Mr. Opare-Ansah 1:25 p.m.
Madam Speaker, yes, with the assurance coming from the Hon Second Deputy Majority Whip.
Madam Speaker 1:25 p.m.
Yes, Hon Deputy Minister for Justice and Deputy Attorney- General, can you lay the Paper.
By the Deputy Minister for Justice and Deputy Attorney-General (Mr. Ebo Barton-Odro (on behalf of the Minister for Trade and Industry) -
Free Zone (Tax Concession) Regulations, 2010 (L. I. 1963)
Referred to the Committee on Subsidiary Legislation.
Mr. Gbediame 1:25 p.m.
Madam Speaker, item 7. Madam Speaker, a while ago, the Hon Minister for Finance and Economic Planning was in this Chamber to answer Questions; he was ready to move this motion when he had an urgent call to meet the President. Subsequently, he has delegated one of his Deputy Ministers, in the person of Hon Seth Terkpeh to move this motion on his behalf. It is upon this note that I wish to take permission from the Chair and also to crave the indulgence of Hon Members to allow the Hon Deputy Minister for Finance and Economic Planning to move this motion.
Madam Speaker 1:35 p.m.
Hon Member, I thought there was a discussion that we would not go on with this because I have to rise and the other two Deputy Speakers are out of the House. Were you not told?
Mr. Gbediame 1:35 p.m.
Madam Speaker, it