Debates of 23 Nov 2010

MR FIRST DEPUTY SPEAKER
PRAYERS 10:20 a.m.
Mr First Deputy Speaker 10:20 a.m.
Hon Members, Correction of Votes and Proceedings of Monday, 22nd November,
2010.
Page 1…11 -
Dr Anthony A. Osei 10:20 a.m.
I am sorry for drawing you back, Mr Speaker.
On page 7, I need your guidance. The Hon Deputy Minister moved the Motion on behalf of the Hon Minister, should that not be captured properly?
Mr First Deputy Speaker 10:20 a.m.
Very well. He moved it because it is the Hon Minister for Finance and Economic Planning that was advertised on the Order Paper?
Dr A. A. Osei 10:20 a.m.
Exactly.
Mr First Deputy Speaker 10:20 a.m.
Very well. The Table Office will take note of it.
Mr Samuel K. Obodai 10:20 a.m.
Mr Speaker, the Committee on Roads and Transport met the Nigerian delegation but it was not captured.
Mr First Deputy Speaker 10:20 a.m.
I think they have not submitted their Report to the Table Office. So, if that is done, it will be captured. [Pause.]

Hon Members , the Votes and Proceedings of Monday, 22nd November, 2010 as corrected is hereby adopted as the true record of proceedings.

Hon Members, I have admitted one Statement. The Statement is from the Hon Isaac Osei, Member of Parliament for Subin.
STATEMENTS 10:20 a.m.
Mr Isaac Osei (NPP - Subin) 10:20 a.m.
Mr Speaker, thank you for admitting my Statement on “Supporting Ghanaian Manufacturing Industries”.
Ghanaian manufacturing industries play a key role in the economic development of Ghana as major contributors to Gross Domestic Product (GDP) foreign exchange earnings, government revenue and employment. This role is increasingly threatened by the influx of foreign goods which enter our markets at prices which have a tendency to cause material and perhaps mortal injury to our industries.
Mr Speaker, during the 2010 Budget debate, I lamented the absence of an Industrial Policy which would complement the Trade Policy developed from the Trade Sector Support Programme, initiated by the past New Patriotic Party (NPP) Government (ref: Official Report, Col. 1748 of 26th November, 2009).
Happily, the Hon Minister for Trade and Industries was reported in the Accra Daily Mail of August 18, 2010 to have announced that Cabinet had approved the new Industrial Policy and what was left was an Industrial Sector Support Programme to kick-start implementation. This is a positive sign but the problems of our manufacturing industries cannot wait. Among the challenges are infrastructural
bottlenecks, particularly in energy and water, as well as human resource capacity development constraints.
Mr Speaker, it is, however, the massive importation of foreign products from pins and, these days, perhaps, to houses which is the major concern of my Statement today. The net effect of all this, is the transfer of jobs from Ghana to other countries with payment being made by Ghana. Permit me, Mr Speaker, to use as an example, of one of our industries to illustrate what could and probably, should be done.
First, let us consider the case of the aluminium industry in Ghana. This is an industry which Government plans to integrate fully from the raw material, bauxite through the intermediate product, alumina to the final product, aluminium. Yet the only mill in this country, Aluworks Limited is haemorrhaging in the face of unfair trade pratices from Chinese exporters. Trade practices are classified as unfair if the exporting country introduces a product into the importing country at less than its normal value. This is technically known as “dumping” under World Trade Organisation (WTO) rules.
Mr Speaker, it is not necessary for a WTO member to enact specific anti- dumping legislation but Ghana needs to have the technical and legal capacities to establish dumping and its extent, show that dumping has caused material injury; and demonstrate a causal link between the dumped products and the local industry.
There are other requirements on notifications and investigations which the WTO Anti-Dumping Agreement covers. The basic law for interested Hon Mmbers can be found in Article VI of General Agreement on Tariffs and Trade
(GATT) 1944.
Mr Speaker, many countries have used the Anti-Dumping Agreement to good
effect. In a ten -year period from 1955, India imposed 279 anti-dumping measures and the United States of America (USA) imposed 211 such measures to protect their domestic industries from unfair trade.
Aluworks Limited is a manufacturer of flat rolled aluminium products which are required by the construction industry and inputs for the household industry. The company supplies both the Ghanaian and sub-regional markets. The company can progress to supply foils for the pharmaceutical and household industries and extrusions for the construction and furniture industries. It relies on unwrought, unalloyed aluminium as its basic raw material, and it obtains this in molten form from Volta Aluminium Company (VALCO) or as ingots from other sources.
Aluworks has to import its raw materials now because VALCO is not operating and the company has to pay a concessionary tariff of 5 per cent. Finished aluminium products attract a tariff of 20 per cent but for manufacturers of corrugated roofing sheets, they pay 5 per cent. The London Metal Exchange (LME) price for aluminium is currently US$2,450 per tonne.
After the payment of duties and charges, as well as their conversion costs, Aluworks should probably be selling their finished coils at US$3,650 per tonne and not at the current price of US$3,448. Chinese average costs for producing coils is US$3,016 per tonne, yet they sell to Ghanaian coil importers at US$2,650/ per tonne. It is obvious that Chinese exporters enjoy export subsidies or rebates.
In fact, Ghanaian-importers of finished aluminium products from China after accounting for all charges and profit, sell at less than US$3,050 per tonne. The net effect of this is that, unless we protect this iconic Ghanaian-owned company from unfair competition, Aluworks will simply close down with the loss of Ghanaian
Mr Isaac Osei (NPP - Subin) 10:30 a.m.


jobs and Ghana will continue to slide to a nadir where we make nothing and buy everything from elsewhere and the goal of Government to have an integrated aluminium industry in Ghana, will simply be a pipe dream.

In 2009 and 2010, Canada imposed a tariff of 179 per cent on Chinese aluminium products, the US added 59.3 per cent and Australia and India, an additional 10 per cent and 12 per cent respectively.

Mr Speaker, at a recent trade sector retreat organized by the Ministry of Trade and Industries at Akosombo which I was privileged to attend, the Ghana Printers and Paper Converters Association (PRINPAC) argued that imported textbooks are brought into Ghana duty free while imported inputs for the printing of textbooks locally are dutiable. This situation needs to be reconsidered.

Mr Speaker, the story of the collapse of our textiles industries is very well known. In the production of cement, we have a situation where a bagging facility which imports finished bulk Portland cement pays the same tariff as the manufacturers who import clinker and use local limestone to make cement. Most of our domestic furniture manufacturers are no longer in business and one can recount the problems of local pharmaceutical manufacturers as they face under priced products from India and China. Competition is good but it is only useful if it is fair.

Mr Speaker, I could go on and on. The problems of manufacturing industries are well known and I am sure members on both sides would want this august House to do something about it.

Permit me, Mr Speaker and Hon

Members, to make a few suggestions on the way forward. Aluworks has already petitioned the appropriate authorities of the land. Thus, this has to be brought before the Tariff Advisory Board(TAB) for hearings, investigations and action. TAB is made up of seasoned professionals but after a year in existence, not even a single case has been handled by the Board.

Second, the (AGI) must encourage its members to improve their in-house documentation and enhance their knowledge of the international business environment in which they operate.

Third, it is important to review our tariff

structure in a way that will distinguish between raw materials, intermediate products and finished products so that full process manufacturers are not placed at a disadvantage. The concession regime within the harmonized tariff code should be re-examined immediately.

Fourth, the TAB cannot remain a referral and advisory body. It has to become a full-fledged International Trade Commission with the flexibility to impose countervailing duties in the case of subsidies, anti-dumping measures where dumping is established.

Fifth, the Ministry of Trade and Industry must provide timelines or a road map for the establishment of the Ghana International Trade Commission.

Finally, Mr Speaker, we have to decide as a country, whether we want to have a manufacturing sector at all and actively support that sector to play its role. We cannot simply leave it to the private sector. The policy framework must inform us as we look into the future.

Thank you, Madam Speaker.
Mr First Deputy Speaker 10:30 a.m.
Thank
you very much.
Hon Members, I will take two
comments, very brief ones from each side of the House.
Mr Clement K. Humado (NDC - Anlo) 10:30 a.m.
Thank you, Mr Speaker, for giving me the opportunity to support the Statement that has been ably made by the Hon Member for Subin.
Indeed, his Statement could not have come at a better time, because a cursory look at the performance of the industrial sector in Ghana over the past few years, shows very clearly that the share of GDP by industry has been declining over the years and this is a cause for concern for Government and the entire country.
Indeed, the declining performance of industry is also having its effects on joblessness in those towns, particularly, in Tema which is dependent upon industrial work. Most youth and workers are now jobless in Tema and it is a very pathetic sight.
Indeed, the Hon Member rightly put the finger at the right place, that is, we have World Trade Organisation (WTO) rules for dumping and anti-dumping but before a country can enforce these rules, we need the technical and the legal capacity to do it.
So far, it appears to me that we have just been talking about dumping and anti dumping practices without taking adequate measures to develop the capacity to deal with the issue. It is in this regard that I support the Statement made by the Hon Member that we need to develop the legal and the technical capacity to deal with this issue once and for all. All the trade policies and all that would not work unless we tactically deal with this situation.
Mr Speaker, alongside this is also the issue of intellectual property rights which must go hand-in-hand to support industry. Some of our industrial sectors like the textile subsector are losing out because they are not able to patent the designs that
they have come out with. As a result, these are easily copied by foreign countries; for example, China duplicated and sent them back to our own markets.
I believe that before we can enforce our anti-dumping rules, we also need to work on the intellectual property rights in the areas of patent rights and the copyrights ,so as to reinforce Ghana's position for the industrial sector to become very competitive. It is not only the cost element that determines competitiveness but unfair practices all over the world, such as dumping, which is also a cause for this phenomena.
I, therefore, would like to take this opportunity to call on the Hon Minister for Trade and Industry and the Government to do something practically to ensure that we develop our legal and technical capacities to enforce our anti- dumping rules.
With these few words, Mr Speaker, I support the Statement made by the Hon Member.
Nana Yaw E. Ofori-Kuragu (IND. - Bosome-Freho) 10:30 a.m.
Thank you, Mr Speaker, for giving me the opportunity to contribute to the Statement so ably made by Hon Isaac Osei.
Mr Speaker, it comes as a great surprise to me, that since its inception, the TAB has not been able to sit on a single case. Mr Speaker, even the 2011 Budget , reviewing the performance of last year, says clearly that the TAB is fully operational and that it is addressing the inadequacies in the tariffs system.
Mr Speaker, it has not sat on one single case, so where has it been doing its work? It comes as great surprise, Mr Speaker, that the manufacturing industry is in such shambles.
I commend the Hon Member who made the Statement, and advise the
Nana Yaw E. Ofori-Kuragu (IND. - Bosome-Freho) 10:40 a.m.


Government to take the advice of setting up an international trade commission, a commission that can take up these cases and take on duties in the cases of goods coming to this country that have been heavily subsidized, so that we can put in place adequate measures to prevent dumping. We need to impose duties on goods as they are flooding our markets and making our industry not competitive.

Mr Speaker, as we all know, cost of production is very important to the manufacturing industry. Currently, with the increase in tariffs on our electricity, most of the companies have decided not to work even though some of them have huge stockpiles of raw materials. Mr Speaker, the story has been that the gas pipeline is going to be fully operational and the gas is going to flow the industry, but there is no sign of this gas which will bring electricity prices down.

Mr Speaker, our manufacturing industry is in great trouble. Most of our people who work in these industries are at home. No future have we got for the youth. There are companies in Kumasi, for example, Sammex Toilet Rolls Limited, all the manufacturing equipment are there, and because of the influx of toilet rolls into this country, Mr Speaker, they cannot operate.

I will be brief on this, Mr Speaker, not to waste too much time but only to say, if we have indeed, spent valuable time in setting up the TAB, then we should investigate why it is not operational.

Thank you for these few words.

Mr Charles S. Hodogbey (NDC -

North Tongu): Mr Speaker, I take this opportunity to thank the Hon Member for Subin who made the Statement.

Truly, Ghana has become a dumping ground for all kinds of imported goods, ranging from medical, furniture, wood products, building materials and others. Mr Speaker, today, if you go to the streets of Ghana, especially in the cities, you will see all kinds of medical products entering the country, some not certified at all and causing some degenerating diseases to our people, which we do not know.

Besides that, Mr Speaker, our furniture industry, if you go to every store now, the best furniture that you will find is imported and it is killing our wood industry so much. The question is - it is just about our finishing which is little under standard. Why can the Government or the Ministry of Trade and Industry not import those equipment that make foreign furniture more attractive to Ghanaians so that people can even go in and rent them and make good furniture for us?

Our building industry, Mr Speaker, we import almost everything except sand, stone, cement and some other few things. For our industry to grow, Mr Speaker, we need to build our own industries to manufacture these things. The Hon Member who made the Statement has already said that if we could stop importing these things, the aluminium works and all those things, we can create more jobs for our people whereby the unemployment, which exists now could be reduced.

Furthermore, Mr Speaker, I want to say because of this importation, a lot of jobs are being lost. We only create jobs for the areas that these imported goods are coming from; we create jobs for them. Besides, we need to establish at least, Mr Speaker, a simple steel industry. For any country to move forward, you need a steel industry to propel everything. We cannot continue to be listening to the WTO

proposals and killing ourselves because in 1974 the WTO made a proposal to ensure that there is an open market for most goods, especially textile products and today, we are suffering for it.

I thank you, Mr Speaker.

Dr Matthew Opoku Prempeh (NPP

- Manhyia): Mr Speaker, I would like to congratulate the Hon Member of Parliament for Subin who made the Statement for bringing to the fore and championing the difficulties in which Ghanaian enterprises and companies find themselves.

Mr Speaker, there is not a single country that had escaped the throes of poverty that did not support its local industries. Mainland China, even as we speak, encourages indigenous industry to flourish and export. We stay in this country and put in measures that are making it difficult for our local industry to even stand on its feet before it can even think about exporting.

South Korea, where we gleefully go and borrow money lately, supported and picked and chose ten local companies and told them that “I want you to become world pacesetters” and now what do we have, South Korea is a developed country.

Mr Speaker, not only by our actions are we stifling local industries but even more importantly, by our utterances, we are chasing investors away from the country. Mr Speaker, I would like to highlight two or three. One of the most hard-working Ministers I have found lately, Mr Speaker, is the Minister for Trade and Industry. We all recall a specific statement she made that made capital leave this country and she acknowledged that such talk was not good. Mr Speaker, I commend her because since she assumed duty, she has been working relentlessly for local Ghanaian businessmen.

Mr Speaker, this Budget that has just been presented to this House, more than 100 paragraphs speak about private sector encouragement or support to the private sector. There are eight paragraphs for support of private sector competitiveness. There are about two or three paragraphs for private-public policy or partnerships.

Mr Speaker, Government is intending to build flyovers in Accra through Private- Public Policy (PPP) for the Ministry of Roads and Highways. But what do we find when such a government policy has been brought to this House and we care coming to talk and support it, we have serious people, high-minded people in Government going round and saying that this Government is a socialist Government? Mr Speaker, there is not a single -
Mr First Deputy Speaker 10:40 a.m.
Hon
Member, we are not debating.
Dr Prempeh 10:40 a.m.
Thank you, Mr Speaker.
Mr Joe K. Gidisu 10:40 a.m.
On a point of order.
Mr Speaker, my very good Brother knows that a policy initiative like what he is talking about cannot be fully captured in the Budget Statement of the type that he is talking about and I want to assure him that at the appropriate time, the House would be updated on those policies and legal framework for the private participation in the economy.
Dr Prempeh 10:40 a.m.
Mr Speaker, precisely so. I was commending the Minister for Roads and Highways; he was not listening. I was commending him for the fact that he has been able to show a paragraph in this Budget that talks about -- paragraph 989 -- that talks about --
Mr First Deputy Speaker 10:40 a.m.
Hon
Member, this is a very important Statement made by the Hon Member for Subin and we are not debating.
Dr Prempeh 10:40 a.m.
I am not debating, I am
supporting.
Mr First Deputy Speaker 10:40 a.m.
So a brief
comment. Conclude.
Dr Prempeh 10:40 a.m.
All right. Mr Speaker,
if you will let me, I would have finished by now.
Mr First Deputy Speaker 10:40 a.m.
Conclude.
Dr Prempeh 10:40 a.m.
I am just saying that
a whole Budget has been presented by the Government that is supporting and encouraging private business. Let the reality be seen; let those who are in responsible positions back their Government and stop making pronouncements that would lead to capital flight.
Mr Speaker, before I conclude, not only should the TAD have teeth, we should have a competitive commission in this country because dumping is also anti- trade and before we can tackle the issue of dumping, we must have a competition commissioner in place. Not only that the standards and the regulatory agencies should be up and doing; not everything should be accepted willingly in this country.
In so speaking, Mr Speaker, I would like to support the Hon Member for Subin for making such a brilliant Statement.
Mr First Deputy Speaker 10:40 a.m.
Hon Members, I will give the last opportunity to Hon Member for Sekondi, he is a former Leader of this House.
Papa Owusu 10:50 a.m.
None

Sekondi): Thank you very much, Mr Speaker, for giving me the opportunity -- and I was the Minister for Trade and Industry in the previous Administration. I

commend the Hon Member for Subin for the Statement he has made.

Mr Speaker, the TAB has been “worked

in progress” and I recall that during my time, I proposed nominations for the establishment of this Board. But Mr Speaker, the problems that we have in this country, many of them are systemic. Mr Speaker, when we talk about tariffs, it is Parliament that imposes tariffs and levies through a proposal from the Ministry of Finance and Economic Planning and experience has shown that there is no nexus, synergies between the Minister for Finance and Economic Planning and the Minister for Trade and Industry.

While the Minister for Finance and Economic Planning is interested in raising revenue, the Ministry of Trade and Industry is also interested in putting in place a framework that promotes local industries; they do not work together. That is why you would find situations where proposals for taxes and levies are made on the floor of the House, and you would find that the Ministry of Trade and Industry silently, would be complaining about it. And Mr Speaker, if we want to promote local industries, we need to have a local content enactment.

Mr Speaker, I recall, when a foreign company purchased the shoe factory in Kumasi and when the firm came to me as the Minister for the Interior, they said that, indeed, if they had regular orders from the security agencies, they would be able to sustain the industry. Mr Speaker, you can imagine the problems that I as the Minister went through even to get the security agencies as a whole, as a matter of policy, to purchase this. It took a memorandum to Cabinet, and even there, issues were raised: “We have to promote competition”; “we have to ensure that it is good quality”.

But the fact is that, a country like

India, a country like Malaysia, they are producing vehicles. Tata was not like this some years ago. But at a certain point in time there was a policy, that “look, you are going to purchase locally manufactured vehicles however bad they may be”. Now, we see Tata, it is competing. It is the same even with toilet rolls issue.

The proposal was that , let al l Government Ministries, Departments and Agencies purchase local toilet rolls, it became a problem. So until we put in place a local content policy, which I know a draft was put before the Ministry of Finance and Economic Planning before the previous Administration left office, a lot of these things, we would not make much progress.

But we ought to recognize that indeed, there is no country that does not protect her industries. Even the United States of America (USA) faces stiff competition from China, it is protecting its local industries. It becomes an issue for elections. But in our country, we do not seem to be interested. We must actively promote local industries, and I say that in some of these things, we need to take a national view so that we create entrepreneurs who can be giants in the West African sub-region. We also ought to recognize that whether a person has this colour or that colour, when the person makes money, he invests in this country, he employs Ghanaians. I am happy that recently, there was a statement made that we should be, as it were, looking at political colours when it comes to promoting Ghanaian entrepreneurship; it is important.

One thing I am happy about with this country is that we are learning very fast. Why? Because of alternation of political power. At this stage, let us in some matters have a national view, so that in respect of this matter, it is not subject to unnecessary partisanship. That is the only

way forward, and let us have institutions in our systems working with the common end in view to promote Ghana and Ghanaians.

I thank you, Mr Speaker.
Mr First Deputy Speaker 10:50 a.m.
Hon Members, that brings us to the end of Statements.
At the Commencement of Public Business - Presentation of Papers.
Mr Cletus A Avoka 10:50 a.m.
Mr Speaker, item (4) (a) on the Order Paper, the Hon Minister for Finance and Economic Planning is supposed to have been here to lay the Paper. But due to other commitments, the Hon Deputy Minister who has been doing it on his behalf is in Parliament today to lay the Paper.
I am craving your indulgence and that of my Hon Colleagues, to permit the Hon Deputy Minister for Finance and Economic Planning to lay the Paper on behalf of the substantive Minister.
Mr Ambrose P. Dery 10:50 a.m.
Mr Speaker, very well.
PAPERS 10:50 a.m.
Mr First Deputy Speaker 10:50 a.m.
Item (4) (b), by the Majority Leader.
Mr Avoka 10:50 a.m.
Mr Speaker, before I do so, may I crave your indulgence and draw your attention to the fact that (4) (b) (iii)
Mr First Deputy Speaker 10:50 a.m.
So you lay (i)?
By the Majority Leader --
Annual Budget Estimates of the Judicial Service for the year 2010.
Referred to the Judiciary Committee
Annual Budget Estimates of the Audit Service for the year 2010.
Referred to the Special Budget Committee.
Mr Osei Kyei-Mensah-Bonsu 10:50 a.m.
Mr Speaker, the Majority Leader, in explaining why Paper listed as (4) (b) (iii) cannot be laid, has drawn our attention to some mathematical error as he has indicated. I think the second thing that we should consider is the designation of Parliament and the Parliamentary Service.
Mr Speaker, I think Parliament is Parliament; either Parliament House or Parliament. It cannot be Parliament and the Parliamentary Service. I notice that once again in the Budget, the Minister referred to Parliament as Office of Parliament.
The Hon Deputy Minister should communicate same to the Minister, Parliament as an arm of Government is not just an office; Parliament is not an Office of Parliament; it is an institution; it is one arm of Government. If you have a template that suggests to you that you should describe Parliament as an Office of Parliament, from now on, banish that
Mr First Deputy Speaker 10:50 a.m.
Hon Minority Leader, that Paper has not been laid. But we would look at what should be laid - Parliament of Ghana - actually, it is Parliament. Since we are not laying it, we would consult here with your Colleague so that the proper thing is done.
Mr Kyei-Mensah-Bonsu 11 a.m.
Mr Speaker, that is so. But in the Budget document, and I refer to page 164, Parliament is described as Office of Parliament; that is what I am drawing his attention to and the attention of his Ministry, that it should be corrected. I am only acting proactively.
Mr Speaker, I would have prayed the Hon Majority Leader, in view of what we have discovered relating to Parliament, to have even, maybe, had some interaction with the Judicial Service and the Audit Service since their estimates also go directly to the President for consideration and onward transmission to Parliament, for us to have reconciled before laying.
As it is, if there is a problem, it becomes difficult for us. So with respect, I do not know what can be done in the circumstance, now that he has already done so. But I thought that relating to our own problem that we have discovered, maybe, we should have allowed him some time to have had further consultations with these two offices - the Audit Service and the Judicial Service to enable us know that we are on the right track. Otherwise, we may create problems for them.
Mr First Deputy Speaker 11 a.m.
Well, you have a point there but since we are not taking these estimates until sometime next week, I believe that between now and the time that the estimates would be taken, I think that the Hon Majority Leader can start some consultations.
Mr Kyei-Mensah-Bonsu 11 a.m.
Mr Speaker, the principle is understood except that now that it has been laid, what is before us would be what has been captured in the Budget; that is my problem. But we

still have space and maybe, if it has to be withdrawn-- If anything goes wrong, maybe, we should prepare our minds for that. I do not hope that we get there anyway, but it is just a caution.
Mr First Deputy Speaker 11 a.m.
Very well, very well.
Hon Majority Leader -
Mr Avoka 11 a.m.
Mr Speaker, we will take item No. 5 on the Order Paper.
MOTIONS 11 a.m.
Chairman of the Committee (Mr Kwame Osei-Prempeh) 11 a.m.
Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80 (1) which require that no Motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the Motion is given and the date on which the Motion is moved, the Motion for the adoption of the Report of the Committee on Subsidiary Legislation on the Local Government (Creation of New District Electoral Areas and Designation of Units) Instrument, 2010 (L.I. 1983) may be moved today.
Mr Dominic A. Azumah 11 a.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
Committee on Subsidiary Legislation Report on the Local Government
(Creation of New District Electoral Areas and Designation of Units)
Instrument, 2010 (L. I. 1983)
Mr Kwame Osei-Prempeh 11 a.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Committee on Subsidiary Legislation on the Local Government (Creation of New District Electoral Areas and Designation of Units) Instrument, 2010
(L.I. 1983).
Mr Speaker, in doing so, I present the
Committee's Report.
1.0 Introduction
The Local Government (Creation of New District District Electoral Areas and Designation of Units) Instrument, 2010 (L.I. 1983) was laid before the House on Tuesday, 19th October, 2010 in accordance with article 11 (7) of the Constitution.
The Instrument was subsequently referred to the Committee on Subsidiary Legislation for consideration and report pursuant to Orders 77 (a) and 166 of the Standing Orders of the House.
2.0 Delibrations
The Committee met with the Minister for Local Government and Rural Development, Hon Joseph Yieleh Chireh and his technical team and discussed the Instrument. In attendance at the instance of the Committee were the Deputy Electoral Commissioner (Operations), Mr Sarfo Kantanka and other officials from the Electoral Commission. Also in attendance was an official from the Drafting Division of Ministry of Justice and Attorney- General's Department.
The Committee received a total of seventy (70) petitions from Hon Members of Parliament, Metropolitan/Municipal/ District Assemblies, Traditional Councils, Citizen Associations among others.
3.0 Reference Documents
The Committee referred to the under- listed documents during its deliberations:
i. The 1992 Constitution;
ii. T h e S t a n d i n g O r d e r s o f Parliament; and
iii. The Local Government Act, 1993 (Act 462).
4.0 Background Information
The electoral areas and units currently in use for district level elections in the country were demarcated in 1988 at a time that the country had one hundred and ten
Mr Kwame Osei-Prempeh 11 a.m.


(110) districts. However, the structures over the two decades have changed significantly in terms of population, size and other factors. With the increase of the districts from one hundred and ten (110) to the current one hundred and seventy (170) Metropolitan/Municipal/Districts, it is imperative that the electoral areas are increased and boundaries realigned in consonance with the new creations.

It is in this regard that the Ministry of Local Government and Rural Development, in conjunction with the Electoral Commission in 2002 held stakeholders' fora across the country to collect and collate views on public perception on sub-district structures. It became clear at the fora that there was the urgent need to take a fresh look at the electoral areas and units. The decisions arrived at the fora had culminated in the re-demarcation and alignment of electoral areas and hence, the introduction of L.I. 1983 to Parliament.

The Local Government (Creation of New District Electoral Areas and Designation of Units) Instrument, 2010 (L.I. 1983) seeks to create new electoral

areas for the conduct of district level elections in the country. It also seeks to break up existing large electoral areas and merge contiguous small areas.

As a result of this exercise, the current number of electoral areas would go up from four thousand, eight hundred and twenty-nine (4,829) to six thousand, one hundred and thirty-five (6,135).

Following from this, the regional summary of old and new electoral areas would be as follows:

5.0 Observations

5.1 The Committee observed that the proposed expansion of the existing electoral areas will go a long way to further deepen decentralization in the country. This will also make the sub- district structures work effectively, leading to enhancement of local level democracy.

5.2 The Committee also observed that the coming into effect of the Instrument would eliminate some of the challenges encountered during the implementation of the existing electoral areas for district level

elections. Challenges such as long distances to voting centres, separation of ethnically- bonded communities and separation by physical barriers have been taken into account in the

proposed electoral areas in the Instrument. This will therefore improve participation in local level elections.

6.0 Recommendation and Conclusion

The Committee, having had a thorough discussion of the Instrument, recommends to the House to adopt its Report and allow the Local Government (Creation of New District Electoral Areas and Designation of Units) Instrument, 2010 (L.I. 1983) to come into force in accordance with article 11 (7) of the Constitution.

Respectfully submitted.
Mr Emmanuel K. Bandua (NDC - Biakoye) 11 a.m.
Mr Speaker, I beg to second the Motion and to add that indeed, when the Committee met to consider this Legislative Instrument, we were inundated with several petitions. I believe that the problem was that the consultations were not sufficient and wide enough, so I will urge the Electoral Commission that anytime such an L.I. is being considered, they should do a lot of consultations. Particularly Members of Parliament were not involved in many instances and this has created a lot of problems for the Committee. So I urge the Electoral Commissioner to take note of these and at any time before an Instrument is brought before us, there should be sufficient consultations so that many of these minor problems would be ironed out before the Instrument is brought up before the House.
With these few words, Mr Speaker, I beg to second the Motion.
Question proposed.
Dr Anthony A. Osei 11 a.m.
Mr Speaker,
11.00a.m. Page 4 -- Table

I thought my Senior Colleague was the Ranking Member of the Committee but he was saying that apparently not enough consultation was done. But in their own Report, with respect, let me quote:

“It is in this regard that the Ministry of Local Government and Rural Development, in conjunction with the Electoral Commission in 2002 held stakeholders' fora across the country. . .”
Mr Bandua 11 a.m.
I think he misunderstood the statement I made -
Dr A. A. Osei 11 a.m.
Then make yourself clear.
Mr Bandua 11 a.m.
By wider consultations - I mean that individual Members of Parliament for instance and chiefs and individual persons should have been consulted before the final document was prepared. That is the point I am making.
Dr A. A. Osei 11 a.m.
That is why the Committee's Report is misleading. It should be amended to say that not enough consultation was held with stakeholders. Because when I read it, I got the impression that Parliament being a stakeholder, enough consultations had been held. Because there is no observation in here that tells me what he is saying. I thought the Committee would go on record to make that observation but it is not in the Report --
Mr First Deputy Speaker 11 a.m.
Chairman of the Committee.
Mr Osei-Prempeh 11:10 a.m.
Mr Speaker, the Report can never be misleading. In fact, the process started in 2002. I believe what the Hon Ranking Member was driving at was that, at the time it was being brought to the House, when they did the final things, they ought to have sought the views of at least, Hon Members of Parliament who are politicians on the ground and know the electoral boundaries and know the areas far better. That, they did not do finally before they brought it.
But that does not negate the fact that they did the nationwide consultation but sometimes, the fault is ours. Even when it was laid in this House, an announcement was made in this House that Hon Members should look at it and if they had any concerns, submit them. Most Hon Members did not care to do so. Even this morning, I have had about ten Hon Members telling me that they did not see it; they never heard about it and they did not look at it. But it was distributed to Hon Members. They threw it away and never cared to look at it. That includes Hon Akoto Osei. [Interruption.] Just this morning, he was referring me to something in his constituency but he never bothered to check the document when it was given to him. Perhaps, he threw it in his car boot and forgot about it.
Mr First Deputy Speaker 11:10 a.m.
Hon Member for Old Tafo, if you want to contribute, I will allow you to contribute now.
Dr Anthony A. Osei (NPP - Old
Tafo): Mr Speaker, I think the Hon Chairman and the Ranking Member have made a very important observation. But my only concern is that, because it is such an important observation, their Report should have reflected it so that in the future, we have it on record. As it is, it is

not there --
Mr First Deputy Speaker 11:10 a.m.
But is it
Dr A. A. Osei 11:10 a.m.
Mr Speaker, it is

Mr Speaker, I have my copies of the

L.I. I did go through and noticed some corrections that had been made. I was in touch with the Electoral Commission in my constituency and they asked me to send my observations to the Chairman.
Mr Osei-Prempeh 11:10 a.m.
Mr Speaker, I was
to correct him because there is a moral issue here. He is trying to impute that we had a private conversation and I am saying it on the floor of the House.
He consulted me in my capacity as Chairman of the Committee and drew my attention to an anomaly in his constituency. He did not consult me as a friend Osei-Prempeh. Therefore, if he says that he had a private conversation with me and I am saying it in public, I believe it is unfortunate and he must withdraw that
and apologise to me.
Mr First Deputy Speaker 11:10 a.m.
Hon
Member, I think the Chairman has a point.
Dr A. A. Osei 11:10 a.m.
Mr Speaker, when I called him, I did not call him as the Chairman of the Committee I said, “Hon Prempeh”. [Laughter.] He can attest to that. I said, “Hon Prempeh”, can I talk to you -
Mr First Deputy Speaker 11:10 a.m.
You
spoke to him because you knew that he was handling a certain business and that business has something to do with this current matter before us and that is why you went to discuss it with him.
Dr A. A. Osei 11:10 a.m.
Hon Prempeh is a
good Friend of mine, I had not seen the Report yet but some information had been conveyed to me last night. He is a long- standing Hon Member of this House. He has experience. So I called him as “Hon Osei-Prempeh”, not as the Chairman of the Committee even before I read the Report. But if he wants me to withdraw, I would gladly withdraw. It is no harm.
Mr Speaker, I think what the Electoral
Commission did is a very good thing. In my constituency, four additional electoral areas have been created. I am sure other Hon Members see the need for this and I think it is a good thing they are doing. It is more rational and I think we should all help it to take place.
Mr James K. Avedzi (NDC - Ketu
North): Mr Speaker, I rise to support the Motion and want to thank the committee for a very good work done.
Mr Speaker, when the Bill was laid and referred to the Committee and copies were given to Hon Members, I noticed some corrections in my district, so I did appear before the committee and those corrections were done, so I want to thank
the Committee very well.
Mr Speaker, I want to comment on one of the observations made by the Committee, that is observation number
5.2 --
“The Committee also observed that the coming into force of the Instrument would eliminate some of the challenges encountered during the implementation of the existing electoral areas for the district level elections”.
Challenges such as long distances to voting centres. Mr Speaker, I want to comment on the challenges. The creation of the new electoral areas will not completely eliminate the challenges of long distances in voting centres. But when we do that, it would lead to the creation of additional or more polling centres. So I would want to urge the Ministry and the Electoral Commission to create more polling centres so that we can eliminate this challenge of long distance to voting centres by the electorate because these alone would not eliminate that completely.
Mr Speaker, with these few words, I
commend that we all approve this Report so that the L.I. can come into effect.
Mrs Gifty E. Kusi (NPP - Tarkwa
Nsuaem): Thank you, Mr. Speaker, for the opportunity to contribute to the Motion to adopt the Report of the Committee on Subsidiary Legislation on the creation of new electoral areas.
Mr Speaker, point 1, page 1, that is
paragraph 1, says and I quote:
‘“The Local Government' creation of new electoral areas was laid before the House on Tuesday, 19th October.”
Mr Speaker, I would want to find out from the Hon Minister if he gets up to wind up, why we came to this House on the 19th of October when elections were
Dr A. A. Osei 11:10 a.m.
supposed to have been held in August. I do not know what happened. It has given undue advantage to some of the candidates and everybody has been waiting for this because this has not been done.
Mr Speaker, what I am saying is that,
we have to take these District Assembly Elections very, very seriously. If we have to delay this for almost three months because of this, I do not think that whoever is in-charge of this should not repeat this the next time round. That is because if it is going to happen like the 2008 Elections; if we have to delay it because of some legal issues, it would not go well for the whole country.
So Mr Speaker, the Hon Minister and whoever is in-charge of these things should be up and doing; they should sit down and plan very well, so that nobody will delay the country for these number of days because of not laying Papers or waiting for Sitting days or something. We have to work as we are supposed to. Mr Speaker, I do not want anybody to come and tell us that things are going to delay in 2010 Elections because of legal issues. People should be up and doing; people should do their work.
I thank you, Mr Speaker.
Mr Dominic A. Azumah (NDC -
Garu/Tempane): Mr Speaker, I thank you so much.
Mr Speaker, I rise to support the Motion on the floor and to say that the passage of the L.I. is very, very important. The 2010 District Level Elections, the delay as we were informed, was basically because of the large number of consultations that were going on that did not allow them to come up very early with this draft. Nevertheless, finally it got to us.
The passage is to address very critical
concerns and one concern that comes to mind is a Municipal Assembly like

Adenta. Mr Speaker, you cannot believe that Adenta is a Municipal Assembly with four Assembly members with two government appointees constituting a District Assembly. Indeed, this was a very serious mishap that happened during the creation of this Assembly. When we made a visit to hold a meeting with the whole Assembly, we were all surprised to see that only six members appeared on the floor and that constituted a whole Municipal Assembly.

So this L.I. has now proposed raising them from the number of four to close to 18. That is the real situation that should have happened.

Again, it is supposed to make it easier for Assembly members to perform. As the Report states, if you have an Assembly member who has to travel almost 10 to 15 kilometres radius to manage a community, the bottom line is that he would need resources. He would need something that would encourage him to be able to perform. But if it is a bit compact, a bit smaller, it makes it easier to bring people together. He is supposed to be in a District Assembly meeting and transmit whatever transpired in the Assembly back to the electoral area and so, creating these as smaller units would go a long way in addressing some of these challenges.

Mr Speaker, it is important that we note - the current figure given is 6,100 plus electoral areas. This might not even be sufficient for the whole country. I am aware there are still a number of people who have concerns of their electoral areas but were not captured here. But that might not be the last issue to be done.

After the passage of this Bill, certainly, at the appropriate time, the Ministry of Local Government and Rural Development would have to come out with individual L.I.s for the District Assemblies spelling out the composition of the Assembly and the electoral areas attached to each L.I. with its number. But for now, for the

purpose of the elections for 2010, we have to let this go.

Mr Speaker, I believe that the Committee did a good job, most concerns were taken, if not all, but nonetheless, it is better and I am trying to urge the Electoral Commission once this L.I passes through, they should fast track all the processes of the 2010 Elections. People want to hear what is going to happen and we hope that with the passage, it will pave the way for a very successful District Level Elections.

Again, it might help the Ministry into considering whether it is possible to pay some kind of allowances or meaningful allowances to Assembly members, now that the figure has been identified. That can encourage Assembly members to be able to deliver on their performances.

On that note, I thank you so much.
Mr Yaw Baah (NPP - Kumawu) 11:20 a.m.
Thank you, Mr Speaker, for giving me the opportunity to contribute to this very important Motion. But before I do so, I have one major observation which I want Hon Members to address their minds to.
The issue is more of a constitutional nature. As a nation, we do not have to wait to be overtaken by events before we start addressing them. I am bringing this to the floor for Hon Members in respect of this very fundamental issue, because we all knew that the term of the office of Assembly at the local level was supposed to have ended officially on the 31st October, 2010.
The sponsor of this very legislation, my Hon Yieleh Chireh, who is one of the hard-working, meticulous - he has got all the adjectives but for the first time, he had the whole matter wrong. That is because from 31st of October 2010 until the time we would be conducting the elections, there was going to be a constitutional lacuna. That is, the term of the office of
the Assembly had ended, so he was faced with the question, what was the option?
Among these, the first was to look, take the greatest book of the land, that is, the Constitution, if he could be able to extend or where he has any inherent or derivative power arising from the Constitution.
From article 1 to 299, there is nowhere that the Hon Minister, that is, the sectoral Minister for Local Government and Rural Development has any inherent power to have come or to have given directives. With regard to what is operating today, that is, the various Metropolitan, Municipal Chiefs and District Chief Executives to be running Assemblies with the Co- ordinating Directors.
Mr Speaker, with your indulgence, I just want to refer to the Constitution, that is, dissolution of Parliament, which, based on that, the Hon Minister could have extended the ambit of the law to cover that of the local elections. And I refer to article 113, reading (2) in tandem with (3) and with your respect, I want to read:
(2)At any time when Ghana is actually engaged in war, Parliament may, from time to time by resolution supported by the votes of not less than two-thirds of all the Members of Parliament, extend the period of four years specified in clause (1) of this article for not more than twelve months at a time, except that the life of Parliament shall not be extended under this clause for more than four years.”
Mr Speaker, with the (3), that is the Presidential powers coming under - with regard to extension:
(3) Where, after a dissolution of Parliament but before the holding of a general election, the President is satisfied that owing to the existence of a state of war or of a state of public emergency in Ghana or
Mr First Deputy Speaker 11:20 a.m.
Hon
Member, if the framers of our Constitution had wanted to extend that provision to the District Assemblies, would they not have done - they have limited to Parliament. If the framers of the Constitution wanted to extend what you are quoting, would they not have put it in the Constitution?
Mr Yaw Baah 11:20 a.m.
Mr Speaker, all that I
am trying to do is just to draw the attention of the House and for us to address our minds -- because this is a grey area which was not captured under the Constitution but we are trying to omit. After all, per decision of the Supreme Court, it says “Parliament are masters of their own actions.” Therefore, if a period would
have arisen, there would have been the precedence for it for the sectoral Minister to extend the ambit of the law so that the -
Mr Haruna Iddrisu 11:20 a.m.
On a point of
Order. I strongly believe that my senior in the Law, the Hon Yaw Baah would have taken a clue from your very generous advice and quoting appropriate provisions of the Constitution.
I am compelled to rise because a certain impression is being created by the reference he is making in particular to article 113 (2) of the Constitution. This country is not at war, therefore, he should not create a context saying that we should exercise powers under 113 (2) as if Ghana was at war; it is completely misplaced and he should be guided by that.
Mr Yaw Baah 11:20 a.m.
Mr Speaker, I do not want to be engaging my junior Brother on this matter but I just brought it to the attention of the House because we all know that Ghana has not been at war.
The framers of the Constitution visualized that if the need arises, then that would be what Parliament is supposed to do. That issue has never cropped up. So if it had taken place, then the ambit of the law could have extended to that of the district level but unfortunately, Ghana has not undergone such an exercise.
Left with what the Hon Minister was faced with, any other Minister worth his status would have done the same because we need to be filling this constitutional lacuna which was never envisaged under the Constitution, which we have, envisaged by the framers of our Constitution. And like we said, we need to make progress out of this by regarding the directives. It is a precedence which should never be followed. That is all that I am asking Hon Members to address their minds to, that given our circumstance, that is the best option.
However, it has not become an issue because no one has gone to the courts to challenge the constitutionality with regard to the directive by the sector Minister because he has no inherent power nor derivative power, even not His Excellency, captured under the Constitution of which I am just drawing Hon Members, attention.
Mr Speaker, now, on the substantive matter, that is the L.I. before us. I do crave the indulgence of Members for us to adopt this Motion -
Mr First Deputy Speaker 11:30 a.m.
Hon Member, kindly wind up.
Mr Yaw Baah 11:30 a.m.
That is because
being the first of its kind - because the previous L.I. we had, came into effect at a time when we had not undertaken this current political dispensation, we were all then under military regime. But even then, progress has been made and we do congratulate the sponsor of this very L.I., the sector Minister and the DCE for bringing this to us.
On this note, I call on Hon Members to vote massively on this issue.
Mr First Deputy Speaker 11:30 a.m.
Hon Members, I will take one each because it appears there is no general disagreement to the Motion before us. I will take one contribution each from both sides of the House. A lot of people have put their names down to contribute to the Bill before us, so that we can quickly move to that Bill.
Mr Sampson Ahi (NDC - Juabeso) 11:30 a.m.
Thank you very much, Mr Speaker, for the opportunity to contribute to the Motion.
Mr Speaker, I believe the Committee needs to be commended for the work done. Approving this Report and for that matter, the Motion is going to help to deepen decentralization at the district level.

When you go to the rural districts, you will find out that a particular Assembly member is in-charge of about ten to fifteen communities that have been scattered all over and we all know that the various Assembly members lack resources in administering their official duties. They do not have motorbikes, not to talk about other means of transport but these people are expected to go round their electoral areas, educate and then speak their views on pertinent issues at the various District Assemblies. So I believe, dividing some of these large electoral areas, is going to help those Hon Members concerned to be very efficient in performing their duties as representatives of the various local assemblies.

This Report also seeks to reduce the number for the unit committees to five; this is also going to help those people to perform creditably because most of the time, you would realize that you have more than eleven unit committee members and when you go to the various levels, their activities, their works are not actually found and so I believe this is going to go a long way to ensure that there is effective work done at the various District Assemblies.

So that at the end of the day, the essence of decentralization would be achieved at the various local levels. It is on this note that I want to call on all Hon Members including the Hon Member of Parliament for Manhyia (Dr Matthew Prempeh) who is talking, to support this Motion so that the demarcation of new electoral areas can be approved to facilitate the work at the various District Assemblies.

I thank you very much Mr Speaker for the opportunity.
Ms Shirley Ayorkor Botchway (NPP - Weija) 11:30 a.m.
Thank you, Mr Speaker, for giving me the opportunity to support the Motion on the floor. I am extremely happy because this Report when adopted and when the L.I. with the new demarcations
Ms Shirley Ayorkor Botchway (NPP - Weija) 11:40 a.m.


come into force, would be of great benefit to me as a Member of Parliament and also to the people in my constituency.

Zeroing in on the Weija area, we have four electoral areas right now and thank God it is being increased to twenty-two. There is one electoral area which is the Mallam Electoral Area which has ninety- eight polling stations and over a hundred

thousand registered voters and it makes work very, very difficult for the Assembly member and he seems to be inefficient just because of the size of his electoral area.

I am extremely happy that that particular electoral area has been increased from one to thirteen. It will mean that people in the various electoral areas will have efficient and very effective service from their Dstrict Assemblies and also specifically from the Assembly members.

I hope that the Hon Minister together with the Electoral Commission, will also look at creating new polling stations. Being a developing area, at the time that this whole thing was done in 1988, there were not too many people living there. Today, Weija is the largest in terms of population in the whole country and in terms of voter population and therefore, there is the need to create more polling stations so that people do not walk long distances to vote.

Also, I believe that as this process is going on, it will lead to the redemarcation or the splitting up eventually by the Electoral Commission of the constituency which is too large, compared to the others.

One other thing that I hope the Ministry will do with the District Assemblies is that they should educate the public on the new electoral areas that have been created so that people, when it comes to the time of voting during the District Assembly Elections, we will know where exactly they are supposed to vote and

which polling stations fall under specific electoral areas.

With these few words, I would like to urge all Members to adopt the Report and eventually for the L.I. to come into force.

I thank you, Mr Speaker, for the opportunity.

Question put and Motion agreed to.

Resolved accordingly.
MOTIONS 11:40 a.m.
Chairman of the Committee (Mr Kwame Osei-Prempeh) 11:40 a.m.
Mr Speaker, I beg to move, that not withstanding the provisions of Standing Order 80 (1), which require that no Motion shall be debated until at least, forty-eight hours have elapsed between the date on which notice of the Motion is given and the date on which the Motion is moved, the Motion for the adoption of the Report of the Committee on Subsidiary Legislation on the Unit Committee Regulations, 2010 (C.I. 68) may be moved today.
Mr Emmanuel K. Bandua 11:40 a.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
Committee on Subsidiary Legislation Report of Unit Committee
Regulations, 2010 (C.I. 68)
Chairman of the Committee (Mr Kwame Osei-Prempeh) 11:40 a.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Committee on Subsidiary Legislation on the Unit Committee Regulation, 2010 (C.I. 68).
Mr Speaker, in doing so, I beg to present your Report.
1.0 Introduction
On Tuesday, 19 th October, 2010, the Unit Committee Regulations, 2010 (C.I. 68) was laid before the House in accordance with article 11(7) of the Constitution.
The Instrument was subsequently referred to the Committee on Subsidiary Legislation for consideration and report pursuant to Orders 77 (a) and 166 of the Standing Orders of the House.
2.0 Deliberations
The Committee met with the Deputy Electoral Commissioner (Operations), Mr Sarfo Kantanka and other officials from the Commission to discuss the Instrument. In attendance at the instance of the Committee were Hon Joseph Yieleh Chireh, Minister for Local Government and Rural Development and his technical team from the Ministry. Also in attendance was an official from the Drafting Division of the Ministry of Justice and Attorney- General's Department.
3.0 Reference Documents
The Committee referred to the following documents during its deliberations:
i. The 1992 Constitution;
ii. T h e S t a n d i n g O r d e r s o f Parliament;
iii. The Public Elections (Unit Committees) Regulations, 1995 (C.I. 18); and
iv. The District Assembly Elections (Amendment) Act, 2010 (Act
801).
4.0 Background Information The Public Elections (Unit Committees)
Regulations, 1995 (C.I. 18) is the Instrument regulating unit committee elections in the country currently. However, the passage of two laws in recent past has made some provisions under C.I. 18 inconsistent with the laws on District Level Elections in the country.
The first of the laws is the Local Government (Urban, Zonal and Town Counci l s and Uni t Commit tees) (Establishment) Instrument, 2010 (L.I. 1967) which requires a unit committee to be coterminous with an electoral area.
The other law is the District Assembly Elections (Amendment) Act, 2010 (Act 801). This law allows candidates to mount their own platforms in addition to the Electoral Commission's platforms. It also allows an organization, other than a political party, to place at the disposal of the Commission, resources for the purpose of mounting platforms for the common use by candidates.
It is for the purpose of ensuring consistency and conformity with the laws on unit committee elections in the country that this Instrument was laid in the House.
The Instrument, apart from reducing the membership of unit committees from fifteen to five, also seeks to liberalize the mounting of election platforms.
5.0 Observations
5.1 The Committee noted that there had been complaints by contestants of unit committee elections over the years with respect to mounting of platforms. The concern had been that the Electoral Commission had not been able to offer adequate platforms to candidates to communicate their messages to the electorate. The liberalization of platforms would therefore, create a healthy competition necessary for the deepening
Mr Emmanuel K. Bandua (NDC - Biakoye) 11:40 a.m.
Mr Speaker, I beg to second the Motion and to add that indeed, one of the best things that have happened in this L.I. is that the membership of the unit committee shall be reduced from 15 to 5. I believe that with this reduction in the membership of the unit committees, they will be better resourced and encouraged and motivated in several ways to enable them perform their duties efficiently.
With these few words, Mr Speaker, I urge all Hon Members to support the Motion.
Question proposed.
Mr Dominic A. Azumah (NDC - Garu/Tempane) 11:40 a.m.
Mr Speaker, the passage of this L.I. by reducing the unit committee members from 15 to
5 is very important. Indeed, records available indicate that in the course of the last District Level Elections, most unit committee members failed to file to contest to become members of the unit committees. There were some units which did not even have the committees existing in those areas and it was simply because so many people thought that the unit committees were not relevant. With the reduction to 5 members, for which they are going to be virtually consulting the Assembly member of the area for the development of their unit areas, it is key to success.
I think that once we have now set in motion, it might be difficult for Government to be able to find the resources. But it is important that if we want to make this organisation work and work effectively, the resources are found one way or the other to motivate members who offer themselves to be able to deliver services to the communities, to be able to help develop the communities. Unit committee members and Assembly members, I think it is time the State took a critical look at and saw how best they could motivate them to be able to give of their best.
Indeed, in development, it is a bottom- down approach - a bottom up approach- and you can see that those at the grassroots, they know what is key to them, they know what they need. It is not for anybody at the district level to come down to that level and propose certain things to them. So, I believe that with the establishment of the unit committees by reducing members to 5, it will make them very effective and they will at least, be able to deliver.
Mr Speaker, on that note, I urge this
House to adopt the Report and to allow the unit committee elections, which are also to come along with the District Level Elections to come on board.
I thank you, Mr Speaker.
Mr Joseph B. Aidoo (NPP - Amenfi East) 11:40 a.m.
Mr Speaker, thank you for giving me this opportunity. Before I make my own submission, I just want to draw attention to my Hon Chairman, for saying that “development is a bottom down- approach” - [Laughter.]
Mr First Deputy Speaker 11:40 a.m.
It is a slip. He corrected and said “bottom-up”. [Laughter.]
Mr J. B. Aidoo 11:40 a.m.
Mr Speaker, in fact, the reform that has taken place is very significant, especially where the unit committee is now coterminous with the electoral area. But I have some little concern in respect of that, where you have an electoral area made up of, let us say, three or four towns, the selection of the unit committee then becomes a bit of a problem.
I wish that the Electoral Commission paid particular attention to that aspect when it comes to the elections. Because I have even a feeling that when elections have taken place, that is, after the elections, it is likely that some places could be marginalised.
For instance, if you have bigger communi t ies wi th smal ler o ther communities forming an electoral area, it is likely that most of the members can come from the bigger communities, and where the operations of the unit commander, the new unit committees are not effective, some communities could be marginalised. Therefore, I wish the Electoral Commission paid attention to this particular aspect.
However, I urge Hon Members to support the Motion.
Thank you.
Mr Alfred K. Agbesi (NDC - Ashaiman) 11:40 a.m.
Mr Speaker, I also rise to support this Motion and to urge other
Members to support it. Mr Speaker, I totally agree with my
Colleague, Member of Parliament (MP) for Garu/Tempane (Mr Dominic K. Azumah) that the time has come for us to look at the situation of the unit committee members and even the Assembly members.
Mr Speaker, these are the people who do the real work at the grass-roots. They spend money in printing posters, and they go from house to house to be able to win their positions. Mr Speaker, but at the end of the day, not much remuneration is given to them.
I want to urge and support the position that the time has come for us to see whether these people cannot be paid. The number has been reduced from 15 to 5 and it is only appropriate that for all the work that they are going to do, the expenses that they will incur, they need to be paid.
Mr Speaker, with these few words, I support the motion.
Question put and Motion agreed to.
Resolved accordingly.
BILLS - SECOND READING 11:40 a.m.
  • [ R e s u m p t i o n o f d e b a t e f ro m 22/11/2010]
    • Prof. George Y. Gyan-Baffour (NPP -- Wenchi) 11:40 a.m.
    Mr Speaker, the idea that a law is being enacted to govern the sharing and utilisation of revenues from the oil production in Ghana and not to treat those revenues as ordinary source of revenue to the Government, is welcomed.
    Mr Speaker, this is because of the nature of oil and how oil revenue utilisation has made and unmade nations that have oil. As has been said over and over again, oil and gas resource deplete over time and are not renewable. The resource is very scarce
    Mr First Deputy Speaker 11:50 a.m.
    Hon
    Members, I have about 20 names before me today, so I have to manage the time for this debate.
    Prof. Gyan-Baffour 11:50 a.m.
    Mr Speaker, I
    understand that you have to manage time but I think we have to make the points clear too.
    Mr Avoka 11:50 a.m.
    Mr Speaker, I want to
    appeal to you and my Hon Colleagues, if you can limit it to 10 minutes per an Hon Member so that, at least, the 20 Hon Members will be able to make their submissions, except that in the case of a Ranking Member or a Chairman, he might be given 15 minutes; but other Hon Members should be given 10 minutes. So we should time ourselves.
    Mr First Deputy Speaker 11:50 a.m.
    Hon
    Member for Wenchi, please, continue.
    Prof. Gyan-Baffour 11:50 a.m.
    I am a Ranking Member, so if the Hon Speaker has agreed to that, then I have about 15 to 20 minutes
    -- 11:50 a.m.
    Mr First Deputy Speaker 11:50 a.m.
    Hon
    Members, let us work with about 10 minutes and see how it goes.
    Prof. Gyan-Baffour 11:50 a.m.
    Mr Speaker,
    what I was saying was that, the intrinsic value of this resource actually tries to overshadow the resource mobilisation effort of Government and at times citizens are also enticed away from various sectors in order to move into those sectors. And of course, as we all know, this has been referred to in the literature as the “Dutch
    disease”, where Government forgets about the other sectors, like agriculture, like traditional export sectors and focus all its attention on oil. This is why we need to look at this resource in a very dispassionate manner and try to come out with a law that will enable us get the positive aspect of it and minimize its negative impact.
    Mr Speaker, because of this renewable nature and the final nature of oil revenues emanating from oil discovery, the resources should not be used for frivolous investments. The revenue should be used, in my view, for investments that will ensure that when the wealth dries up, a new industry can help maintain the level of development that we would have reached in a sustainable manner.
    This means that the revenues, in my view, should be used to support a process of transforming the economy of this country from one that is reliant on agriculture to an economy that is actually industrial based, an industrial economy that does not need to survive under the mercy of the weather or under the influence of commodity markets outside the country.
    We must therefore, use our oil revenue to support and develop this industrial base for the production of light industrial goods so that our economy will no longer be under the constant threat of shocks from nature, such as droughts, and from commodity markets such as falling prices of cocoa and minerals. In my view, it is only in this way that we can have this commodity as a blessing for the country.
    I am therefore, Mr Speaker, not in agreement with using the revenue in support of the Budget as per clauses 19 and 22 and the concerns raised by the Hon Minister for Finance and Economic

    Planning last week.

    Indeed, Mr Speaker, I liked the Minister

    for Finance and Economic Planning's attempt in lowering the expectations of Ghanaians by saying that the amount available is paltry, but I do not think we should buy his implied plea that the amount is so small, so we should allow him to use it to support the Budget.

    We must not allow the resource to be put in the Budget and more importantly, to be spread thinly over about 22 sectors of the economy. In fact, in that Bill, you see about 11 sectors but, indeed, they are about 22 subsectors which these resources are going to be used for.

    I think that is going to be a big mistake if we do that because we will come back here 20 years from now and we will have nothing to show. This is because if you look at even the GH¢580 million that is available in this Budget, if you spread it over 22 sectors, you are going to get about GH¢2.5 million for each sector and it is not going to do anything. So we will repeat this over and over again, come back here 20 years from now and we will have nothing to show.

    Mr Speaker, because of that I think we should really look at this resource and focus on a very narrow area to transform the economy. We should actually focus on, maybe, four other sectors like, education, health, roads - [Interruption Friend's area - roads and transportation so that these can actually help in that transformation effort. But to spread it over, everywhere -- everybody wants it-- we will come back here and we will have to go back and see that there is nothing that we have actually taken out from that.

    Mr Speaker, I agree that the oil revenue should be put in a separate account at the

    Bank of Ghana and that is in clause 2. But what I will urge is that the account be used to create a separate fund outside the Consolidated Fund and this fund should be used for that industrial transformation. Otherwise, we will co-mingle these funds with the revenue from other sources and before we know it, the resources would be gone and nothing can be shown for that.

    Mr Speaker, if you have seen the wisdom in treating this revenue differently by enacting a law to govern its use, then the money for the Petroleum Account should not be co-mingled with revenues from the traditional revenue resources.

    Mr Speaker, this new fund outside the Consolidated Fund should be managed by eminent citizens of this country irrespective of their political persuasion, rather than giving it to the Budget to be implemented by faceless individuals who implement them -- Accountants, accounts clerks, Directors, Chief Directors and all host of people who, indeed, we cannot hold accountable for anything.

    You all know very well that when you look at what the Public Accounts Committee is doing -- At times the public thinks the Hon Minister for Finance and Economic Planning or an Hon Minister somewhere is the one who manages these resources but what is coming out shows that the people who are managing the resources are actually faceless people.

    So if you put this money into that Budget, what we are going to see is that these same faceless people are going to spend the money and we will come back here and say that we have not got anything out of that.

    Mr Speaker, I think with this fund, there has to be a national investment plan, that is approved by this House, that this resource will be used to effect and that plan should be accompanied by a budget for its execution and that budget should also be approved by this Parliament besides the traditional budget that we bring here.
    Prof. Gyan-Baffour noon
    Mr Speaker, my take is that, the fund should be used, as I said, to increase capital assets to Government itself and to the private sector. It has to be used to provide the necessary education, the necessary infrastructure in roads, railways, waterways, energy and what are to facilitate our efforts towards industrial transformation and to provide quality education and train our people at affordable cost, to facilitate the transformation. This is the way I think this resource will become a blessing to this country.
    Mr Speaker, I also have seen in the Bill that there is clause 11 that says that we should have a Heritage Fund. That is a very brilliant idea, but I think it is premature. At this time when our roads are bad, at this time where our power systems are precarious, at this time where we do not have water to drink, at this time where our people cannot be taken to hospital and get effective treatment, I think we should postpone the establishment of this fund for, at least, five years and in the interim, use these resources to really make sure that we have all these things fixed before we think about savings in the future.
    Mr Speaker, our children would be better off if we actually bequeath to them good roads, good healthcare, good education and good water to drink rather than put money in an account somewhere in the United States of America or in the United Kingdom which, probably, they may not even come to meet anyway. When there is a crash in the market, this money disappears.
    Mr Speaker, I think it is wrong, but if even we have to do it, I think we have to postpone it for at least, five years or even ten years.

    Mr Speaker, my other concern is about the timing of this Bill. We all heard from the Hon Minister for Finance and Economic Planning that about GH¢584 million of the expected revenue has already been put into the Budget. And here we are today trying to pass a law that will govern the supposed use of that fund; I think that is wrong.

    Mr Speaker, there is a pattern that is

    evolving in this House, which seems, in my view, to be and with due respect, an assault on the utility of logical sequencing. We approve the use of resources before we pass a law that governs the use. We approved the law on how to manage the resources before we consider the Bill that governs the production of the resources. And last week, we began passing tax laws that are supposed to emanate from a budget which we had not even seen.

    Mr Speaker, these are not trivial matters. We seem to have boxed the House in a logic capsule and we are moving in a reverse order, from “Z” to “A” instead of from “A” to “Z”. I think this is an indictment on the House and we should try and move away from that.

    Again, Mr Speaker, what is very

    intriguing is that this Budget is going to give about GH¢262 million out of the GH¢580 million to the Ghana National Petroleum Corporation (GNPC). GNPC is supposed to be an exploration and production unit; we do not have a law that has even established it. We have already given that money to that institution, per the Hon Minister for Finance and Economic Planning, maybe, wishing it away with one sentence in the Budget-- “This amount has been earmarked …” and I am sure, my Hon Friend does not like the word “earmarked” but it is in the Budget. “ . . .earmarked for GNPC”. And I am referring to Hon Moses Asaga.

    This amount has been earmarked for the GNPC and this is the problem that I am referring to.

    This is the beginning of the kind of things you will see if you allow the oil money to be used to support the Budget. Now, as we sit here, nobody knows what that money is going to be used for, except that the Hon Minister for Finance and Economic Planning has just said he is going to earmark it for GNPC. That is a very dangerous move.

    Mr Speaker, on the Western Region,

    that is my last contribution here. The Western Region is asking for 10 per cent, which is about GH¢50 million if it is what is coming from the Budget. But GH¢80 million, if it is actually what is all coming to Government and people are in arms. Meanwhile, GH¢262 million is going to GNPC and we do not know what it is going to be used for. I think where it will land is the guess of any one of us. And I think, we have always been saying that the best comes from the West and for God's sake and for the first time ever, let us find something good to go to the West.
    Mr Moses A. Asaga (NDC - Nabdam) noon
    Mr Speaker, I am the Hon Co-Chairman for the joint Committee, so I am sure I am for twenty minutes.
    Mr First Deputy Speaker noon
    Hon
    Member, I would not give you twenty minutes. You continue.
    Mr Asaga noon
    Mr Speaker, I think
    that this particular Petroleum Revenue Management Bill, 2010 has come at the right time. If you look at the purpose of the Bill, it tells us that it is for the efficient collection, allocation and management of the oil revenue. I think that Ghana, as a
    nascent oil producing country, probably, has set a record that even before our first oil, we are able to come out with a Petroleum Revenue Management Bill.
    We know that most of the best countries that we have been talking about, including even Norway - It took Norway 19 years after its first oil before they came with a Petroleum Revenue Law and I think that the Government must be commended for this very bold initiative.
    Mr Speaker, again, on the substance of the Bill, I think there is a lot of transparency and accountability clauses. These are very stringent, including the fact that the Extractive Industry Transparency Initiative (EITI) would also be governing the management of this petroleum revenue.
    I am very happy that in the Petroleum
    Revenue Management Bill, we have decided that we should establish the Heritage Fund and the Stablisation Fund. I think we must commend the initiators of this particular Bill and, especially, the joint Committee on Finance, Mines and Energy for their hard work and for us having a consensus on the fact that we must have a Heritage Fund and a Stablisation Fund.
    Mr Speaker, I know that a lot has
    been said about some on the clauses. But I believe that there are two important clauses, one of which is clause 5, which talks about the collateralisation of oil revenue or reserves for development. I think that and I support the fact that oil revenue should be used to collaterise for borrowing to develop our nation. Resources are meant to be used to be able to enhance our welfare and development, and I think that money that is brought upfront is always better utilised at a lower cost than keeping the money into the future when you do not know what the future is likely to be.

    Mr Speaker, in the case of clause 5, I am so much for it that there will be amendments which I will be supporting and I would be urging Hon Members of the House to support these amendments. This is because it is very, very important for the Government and for all of us that we borrow against our oil revenue.

    In fact, borrowing against oil revenue is a less critical one than borrowing against reserves. You go to other countries and they borrow against reserves but we are here to borrow against the oil revenue, which I think, is the best way to approach it. Therefore, clause 5:

    “In order to meet the country's infrastructural development needs, Government may borrow against its share of petroleum revenue exclusively for the infrastructural development needs of the Republic for a period of ten years after the commencement of this Act.”

    I think this particular clause will really transform the development of Ghana and to move us, not just into a middle-class income country but also into an upper middle-class income country.

    Mr Speaker, we always make noise
    Mr First Deputy Speaker noon
    Hon
    Members, the background noise is too much. Let us listen to the Hon Member on the floor.
    Mr Asaga 12:10 p.m.
    Mr Speaker, as I have already just mentioned, I support the collaterisation of the oil revenues, and I would just want to give an example of an extreme collaterisation and where reserves are being used. We are just talking about revenue which is known.
    For example, Brazil has discovered new fields. The fields are called Pre-Salt Fields and these Pre-Salt Fields are under very harsh conditions. The water depth in Brazil is almost seven kilometres and the wells that are to be drilled are almost about 3,000 metres. But the Brazilian Government, with the support of the National Oil Company, were able, on the back of proven reserves, to raise almost $67 billion just six months ago. And out of this US$67 billion, US$45 billion is going to the nation to support development.
    I think that this should be an excellent case study for us Ghanaians not to be too anxious about the fact that we could use our oil revenue for borrowing money from the capital market.
    Dr A. A. Osei 12:10 p.m.
    On a point of order. Mr Speaker, I thought we were debating the policies and principles and the Report.
    Mr Speaker, according to the Memorandum on this Bill, and clause (5), the heading is “Prohibited use of the Petroleum Account”-- That was submitted by the Executive as a policy and principle, not by anybody, so, I am surprised that he is saying that people are arguing against the use. It is the policy that was given to this Parliament by the Executive. And he is questioning the Executive for bringing this -
    Mr First Deputy Speaker 12:10 p.m.
    Hon Member, once a policy comes here, or a Bill comes here, you can decide to agree or disagree.
    Dr A. A. Osei 12:10 p.m.
    So he is disagreeing with the Executive?
    Mr First Deputy Speaker 12:10 p.m.
    You heard him right. That is what he is saying.
    Dr A. A. Osei 12:10 p.m.
    I hope that is what he is doing.
    Mr First Deputy Speaker 12:10 p.m.
    Yes, he is disagreeing with it; he is disagreeing with the provisions in the Bill.
    Mr Asaga 12:10 p.m.
    Mr Speaker, I believe
    that as hard-working Hon Members of Parliament, even when your Government is not bringing the right policy and you think it is right, you have to stand and say it - [Hear! Hear!] So, I am still emphasizing that on clause (5), I will try and convince all Hon Members of Parliament to support the use of it.
    Mr Kwame A. Twumasi 12:10 p.m.
    On a point of order. Mr Speaker, I appreciate that the Hon Chairman of my Committee is very hard-working and very diligent; very intelligent too. Is he by his contribution saying that he finds something wrong with the policy his Government has brought to this House?
    Mr First Deputy Speaker 12:10 p.m.
    Hon Member, he is expressing a contrary opinion from what is in the Bill, and I ruled on the matter that any Hon Member is entitled either to agree or disagree. That is how Parliament helps to shape policies.
    Mr Asaga 12:10 p.m.
    Mr Speaker, in the short- term, we want to move the standard of living of Ghanaians. We want to move Ghana into a high middle income country,
    where most Ghanaians would own decent accommodation, good means of transport, good education, good healthcare and then overall, a prosperous nation.
    Mr Joseph K. Adda 12:10 p.m.
    On a point of order. Mr Speaker, I heard my Hon Colleague opposite advocate for borrowing against oil revenues.
    Indeed, the Committee was not against using resources as collateral, and a proportion of the revenues from the sale of petroleum products would eventually go into the budget. Once those revenues are in the budget, they constitute the total resource envelop available to Government. And therefore, that would improve our debt service ratios. That gives us the chance to be able to borrow.
    What some of us are against is amending the clause (5) to isolate the oil revenues alone and using that as collateral; that is what we are against. And he is talking about experience in the past. I do not know where that experience is coming from, that has never happened in Ghana.
    Now, I do believe, Mr Speaker, that this would become the beginning of the curse of our oil discovery in this country.
    Mr Asaga 12:10 p.m.
    Mr Speaker, yesterday when he was making his submission, even though there were a number of loopholes, I respected him and sat quietly, so I thought he would have given me the same reverence today.
    Mr Speaker, as I said, I am very

    passionate about the reserves and the oil revenue because I have a very strong case from Brazil and because of that I think that we would be able to make it.
    Dr A. A. Osei 12:10 p.m.
    On a point of Order. Mr Speaker, my Hon good Friend is misleading the House. He is creating the impression that all of us in the joint Committee were all in Norway. That is palpably false. The Chairman was there, others were there, but not all of us were in Norway. So he should withdraw that submission.
    Mr First Deputy Speaker 12:10 p.m.
    Dr Akoto Osei, were you in Norway?
    Dr A. A. Osei 12:10 p.m.
    No, sir, Mr Speaker. I was not in Norway. So to create the impression I was in Norway, is wrong.
    Mr Asaga 12:10 p.m.
    Mr Speaker, I think that when the leadership of a committee represents the Committee, in effect, it is the Committee. [Interruptions.] That is -
    Mr First Deputy Speaker 12:10 p.m.
    Hon Member for Nabdam, you know that the joint Committee as a whole did not go to Norwa, neither did they call a meeting of the joint Committee where we gave you our mandate. It is the leadership which took a decision to represent the Committee there.
    H o n M e m b e r, c o n t i n u e y o u r submission.
    Mr Asaga 12:10 p.m.
    Indeed, Hon Dr Akoto Osei was supposed to be on the team. I worked so hard to put him on the team and he decided to give it to his Hon Ranking Member, so he should not just say - [Interruption] -- To the Hon Deputy Ranking Member -- yes. [Interruption.]
    Dr A. A. Osei 12:10 p.m.
    Mr Speaker, it is dangerous for any Chairman of any committee to be thinking that he is doing somebody a favour when we are travelling for the Committee. It is not his discretion to send a delegation to any place. That is the responsibility of the Leadership of this House including your goodself. I see he is trying to take the authority from the Leadership of this House, and you must advise him that he cannot do me a personal favour, even though he is a good Friend of mine.
    Mr First Deputy Speaker 12:10 p.m.
    Is it true that you asked your Deputy Ranking Member to represent you?
    Dr A. A. Osei 12:10 p.m.
    Mr Speaker --
    Mr First Deputy Speaker 12:10 p.m.
    I am only asking.
    Dr A. A. Osei 12:10 p.m.
    No, it is not true.
    Mr First Deputy Speaker 12:10 p.m.
    Very well.
    Dr A. A. Osei 12:10 p.m.
    Mr Speaker, I do not have the authority to ask my Deputy to go.
    Mr First Deputy Speaker 12:10 p.m.
    Very well.
    Hon Asaga.
    Mr Asaga 12:10 p.m.
    Mr Speaker, still on the National Oil Company. I think that I was very happy at the Committee level that we were going to maintain clause (7) where we were talking of the payment into the Petroleum Account, which should be net of the Republic's Equity Financing Cost and the Book Barrels of the National Oil Company as recommended by the Hon Minister and approved by Parliament.
    I think this clause would really resource the National Oil Company -- and even though people sometimes think that the National Oil Company is not up to scratch to be able to be given such kind of resources, I believe that the National Oil Company -- GNPC has proven especially, in the discovery of the oil, that yes, we have a National Oil Company that partnered with international companies. Hon Albert Kan-Dapaah (Member for Afigya-Sekyere West) knows and has worked with the National Oil Company, especially with the top management, and he knows how competent they are.
    I think that we must continue to use the National Oil Company so that when a budget has approved about GH¢200 million - The GH¢200 million which the Hon Professor was talking about is not for exploration and production. It is the exploration levy that we give to them.
    But right now, they are representing the carried interest of 10 per cent; they are representing the additional equity that we have taken and once you reach development stage, production stage, there are normally cash calls that you must bring onto the table, and that is what this money is supposed to support GNPC. It is not meant for recurrent expenditure as people are trying to -
    Prof. Gyan-Baffour 12:20 p.m.
    On a point of Order. Mr Speaker, what I said here was
    that, we do not know what that money is for and the Hon Minister for Finance and Economic Planning never told anybody. He just by a sentence said that; “I am going to give GH¢262 million out of GH¢500 million”, half the amount. That is the point; not what you know, but what is in the Budget.
    Mr Asaga 12:20 p.m.
    Yes, so I am giving him the additional information -- [Interruption.]
    Prof. Gyan-Baffour 12:20 p.m.
    Mr Speaker, no. The Hon Minister for Finance and Economic Planning should do that, not him - [Interruption.]
    Papa Owusu-Ankomah 12:20 p.m.
    On a point of Order. Mr Speaker, it is on a matter of relevance. We know that the Committee has proposed amendments. The Hon Member, through his contributions, is seeking to justify amendments. I am sure when we come to the Consideration Stage of the Bill, we will deal with that. He refers to clause 7 and he has read something; that is not clause 7 of the Bill. Probably, it is a proposed amendment; it is a notice of intention. He should not anticipate a debate; he should debate the principles and let us get on with it. We know that he has worked with GNPC and he is more comfortable there than even in Parliament --
    Mr First Deputy Speaker 12:20 p.m.
    Hon Members, as much as possible, in line with Standing Order 95 (2), we should not try to anticipate the debate on the Budget Statement. So, as much as possible, let us limit ourselves to what is before us.
    Mr Asaga 12:20 p.m.
    Mr Speaker, to continue with GNPC's role and which we all know, it represents the commercial interest of the State. Therefore, if the State has equity stake or interest in any oil fields, it is GNPC that has the capacity to represent the State. I have already alluded to the fact that Hon Kan-Dapaah and Hon K.
    Mr K. T. Hammond 12:20 p.m.
    On a point of order. Mr Speaker, I can concede; I know how efficient GNPC, the staff and everybody else are out there. I also do know that COSMOS, EO Group and all of them are very efficient in their work to discover oil for Ghana.
    Mr Speaker, I think the point that he is belabouring is not so much about any difficulty with the fact that the GNPC or the National Oil Company should be given some money. It is, how did the Hon Minister come up with the GH¢262 million that is stated in the Budget? That seems to me to be the issue that we will be dealing with --
    Mr First Deputy Speaker 12:20 p.m.
    Hon K. T. Hammond, you know as much as I do that I do not intend to cut Hon Members because this debate is very tempting without making reference to the Budget. But if you look at Standing Order 95 (2):
    “(2) It shall be out of order to anticipate a Bill or a Motion by discussion of an amendment to it.
    (3) In determining whether a discussion is out of order on the

    ground of anticipation regard shall be had by the Mr Speaker to the probability of the matter in anticipation being brought before the House within a reasonable time.”

    We are going to debate the Budget only next week and the issues of these figures and all these things would have to crop up and maybe, Hon Members may raise issues about those allocations and all those things. So, as much as possible, let us limit ourselves to the Bill which is before us.

    Hon Member, you have two minutes to -
    Mr Hammond 12:20 p.m.
    One second, Mr Speaker.
    With respect, my Hon Colleague is not out of order. He was talking about -- Mr Speaker, look at clause 7 (2), “The company may make its claim for . . .” whatever. So he is right. I do not know why they think he is out of order. The point has been made here, so the Hon Minister for Finance and Economic Planning goes on to allocate so much money.
    Mr First Deputy Speaker 12:20 p.m.
    But the GH¢262 that you are talking about is not here.
    Mr Hammond 12:20 p.m.
    Mr Speaker, the figure is not here.
    Mr First Deputy Speaker 12:20 p.m.
    Absolutely, the figure is not here.
    Mr Hammond 12:20 p.m.
    All right. Mr Speaker, I want to tell Hon Moses Asaga that we will deal with it when we come to it. [Interruptions.]
    Mr First Deputy Speaker 12:20 p.m.
    I told him to wind up; I have already informed him, so start winding up; wind up. I have taken into account the points of order and the small hecklings and those things.
    Mr Asaga 12:20 p.m.
    So Mr Speaker --
    Mr First Deputy Speaker 12:20 p.m.
    I thought you were going to respond when he made reference to you.
    Mr Asaga 12:20 p.m.
    Mr Speaker, I am very happy that the technical competence of GNPC has not been doubted; I am very happy that there is a lot of support for the fact that GNPC should get more resources, and I think that once there is this general consensus, I am quite elated.
    Mr Speaker, to conclude, I would just want to support the claims of the Western Region for more development. When we were in Stavanger, I felt sad that we did not bring Nana Nketia along with us because he would have seen how local content can develop an oil producing region even without recourse to Government.
    I would want to entreat the Hon Minister for Energy that we need to take about three chiefs from the Western Regional House of Chiefs to Stavanger; it would do us a lot of good.
    Mr Kyei-Mensah-Bonsu 12:20 p.m.
    On a point of order. Mr Speaker, this is not to interrupt my Hon Colleague who is making very useful points. I believe that it is in recognition of that that you have given him ample space to do this articulation and I believe that when others get up to also make very useful contributions, you
    would grant them equal space.
    Mr First Deputy Speaker 12:20 p.m.
    Hon Minority Leader, you know when the Hon Member for Wenchi was on the floor, I did not intervene - [Interruption] - It is not forty minutes. He started after 12 -- No. I have my time here.
    The reason was that I took into account the number of points of order and all those things. As much as possible, let us minimize the points of order so that the debate can be very smooth from both sides.
    Mr Asaga 12:20 p.m.
    In conclusion, the oil revenue as has already been alluded to - Hon Prof. Gyan-Baffour was saying that he is even against the Heritage Fund - [Interruption.]
    rose
    Mr First Deputy Speaker 12:20 p.m.
    Oh, did you say that?
    Mr Asaga 12:20 p.m.
    Oh, please - [Interruption] - I was supporting him -
    Prof. Gyan-Baffour 12:20 p.m.
    Mr Speaker, I never said that I was against the Heritage Fund. I said it was a brilliant idea but it should be postponed for five years.
    Mr Asaga 12:20 p.m.
    Yes, so I am supporting his postponement --
    Mr First Deputy Speaker 12:30 p.m.
    I am
    Mr Asaga 12:30 p.m.
    Mr Speaker, yes, because
    we need to support our country. That is why certain Hon Members were opting that as a compromise, we should put 70 per cent of the total oil revenue into the Consolidated Fund so that only 30 per cent will then be divided into 30:70 in favour
    Mr First Deputy Speaker 12:30 p.m.
    Hon
    Member, you have finished with your --
    Mr Asaga 12:30 p.m.
    Mr Speaker, on that note,
    I urge every Hon Member to support the Report.--
    Mr First Deputy Speaker 12:30 p.m.
    It is not in the Report. I think that he is speaking for himself and not for the Committee.
    Dr A. A. Osei 12:30 p.m.
    Mr Speaker, he said it was in the Report.
    Mr First Deputy Speaker 12:30 p.m.
    No, it is not in the Report.
    Papa Owusu-Ankomah (NPP - Sekondi) 12:30 p.m.
    Mr Speaker, I thank you for giving me this opportunity to contribute to this Motion.
    Mr Speaker, I believe that this Bill
    exemplifies the way or the best practice that we should be encouraging when it comes to enactment of Bills.
    We take note that before this Bill came before the House from the Executive, there was wide public consultations and town hall meetings. So, it can be said that even though the Bill as laid before this House is the work of the Executive, it is more or less the work of the entirety of this nation and captures the effects of what Ghanaians would want the revenues accruing from oil to be utilized for.
    Furthermore, the Committees of the
    House to which this Bill was referred to also engaged in wide consultations. As has been indicated by the Hon Member for
    Nabdam (Mr Asaga), some of them even had the opportunity of going to Norway. I am sure there was even Nigeria involved and even within Ghana. I personally attended certain workshops and seminars in which we had international gurus on the management of revenues addressing us. So, in my opinion, this Bill and its outcome should represent the best that Ghana can offer when it comes to revenue management.
    But Mr Speaker, I am urging Hon Members to read the Memorandum of the Bill closely. It encompasses the principles of the Bill and then reflects the sentiments of Ghanaians. So, where we have proposals for amendments as a Committee, the House would note that sometimes it just has to do with fine-tuning and not introducing new matters that may be contrary to the principles of this Bill.
    Mr Speaker, one of the major decisions
    that we have had to take or every country has been faced with, is the spending and saving division, whether we should spend 70 per cent, spend 30 per cent, put 20 per cent to Heritage Fund, and I am sure that the Bill tries to maintain a balance. However, it did not come out of the air because when you read the Ministry of Finance and Economic Planning's public consultations and the statements that were made, they were informed by our past experiences.
    Mr Speaker, one would want to ask, the divestiture receipts from 1980 something to today, if we are asked, to what use were they put, can we point to anything definite? I was even asking myself, the previous administration of which I was a member divested the shares of Ghana Telecom, we had close to 900 million, what happened to it?
    That is what has informed this savings and spending decision that people are so much apprehensive about because the fear of the Ghanaian is that if we are not

    careful, the resources from oil will go the way of all the resources that for the past we have been using. It will just go to support the Budget and you cannot really be able to point out specifically what this receipt was used for.

    Mr Speaker, I believe that as a House, despite international best practices, despite the experiences of other countries, that has to assist us in arriving at a decision. We must take a decision based on our own experiences as a nation.

    Mr Speaker, talk about mineral

    resources, gold, et cetera. One might be asking, what have we got to show for it and furthermore, we know the problems we have had with fiscal discipline in this country and every government is confronted with the issue?

    Mr Speaker, you are a veteran in this House. One of the pioneers, I know you know the expression, “waste and corruption”. Always, every government comes, waste and corruption, waste and corruption. So for all these years, why do we continue repeating this expression because it is a problem we have with our public financial management? And of course, over the past few years too, we have had the additional challenge of militant foot soldier activism - [Hear! Hear!] - Where we have foot soldiers of political parties and that one -
    Mr First Deputy Speaker 12:30 p.m.
    Who is a foot soldier?
    Papa Owusu -Ankomah 12:30 p.m.
    Mr Speaker,
    a foot soldier is one who believes that if you enter into the political war, it was through his blood and sweat that you won the war. That is the political foot soldier. There is so much pressure being exerted on political leadership.
    Mr Speaker, we all agree that sometimes, you take a decision based on short -term political expediency rather than long- term national interest. So when we are confronted with such a situation,
    we should make haste slowly. It is good. Why not put all the 100 per cent; do the infrastructure and everything? What is the guarantee that it will be different from what has been happening?
    In my opinion, we should be able to have some earmarking, not earmarking in the sense of putting money somewhere. We have budget lines just like the HIPC which those days, Mr Speaker, you were always urging that there should be details in the Budget to know how it is distributed, to what purpose it is used --
    Mr First Deputy Speaker 12:30 p.m.
    I was only quoting the provisions of the Constitution.
    Papa Owusu-Ankomah 12:30 p.m.
    Mr Speaker,
    precisely. I am reiterating the point you have made. That is why sometimes people were making jokes: “Oh! Highly Indebted Poor Country (HIPC) Toilet; HIPC School”. Why? Because to get the electorate on board, the citizenry on board, it is sometimes important that they see what has been done through a certain process.
    So, I will be happy to see oil road, the northern corridor from Nkwanta to the Northern Region and that this road was made with oil money. And I believe that it is in that spirit that we should see this Bill.
    Mr Speaker, Public Interest Committee.

    Mr Kwaku Agyeman-Manu -- rose
    - 12:30 p.m.
    Mr First Deputy Speaker 12:30 p.m.
    Hon
    Member, do you have a point of order?
    Mr Agyeman-Manu 12:30 p.m.
    Yes.
    Mr First Deputy Speaker 12:30 p.m.
    What order?
    Mr Agyeman-Manu 12:40 p.m.
    Mr Speaker,
    Mr Agyeman-Manu 12:40 p.m.


    point of elucidation.
    Mr First Deputy Speaker 12:40 p.m.
    My
    Friend, Hon Member for Sekondi, are you yielding to him?
    Papa Owusu-Ankomah 12:40 p.m.
    I thought it
    was a point of order. I plead with him to wait for me to finish since I do not have too much time --
    Mr First Deputy Speaker 12:40 p.m.
    Because
    you are left with one minute.
    Papa Owusu-Ankomah 12:40 p.m.
    Oh! Mr
    Mr First Deputy Speaker 12:40 p.m.
    Very well, continue.
    Papa Owusu-Ankomah 12:40 p.m.
    Mr Speaker,
    this Public Interest Accountability Committee, that is not a clause which the Executive introduced just because the Executive felt that it should be introduced. It was in response to the concerns of Ghanaians and it is important.
    Yes, people have said, “Oh! Yes, Parliament, we are here, Auditor-General is here but please, let us be realistic. With all the reports that have been coming, have we not always been complaining?” There is the need to take our citizens on board on this enterprise and increasingly, there is crisis of confidence in political leadership in this country.
    I am sure Hon Members, each of you will go to your constituency and then they will say, “Oh! Yes, you are enjoying in Accra, we are suffering and you are not” -- It may not be true but there is the need for people who may not necessarily be politicians to come on board so that they will appreciate the issues. And for this, I support this Public Interest Committee.
    Western Region, I will tell you, Mr Speaker, there is a group that calls itself
    “Cape Militants”, Cape Militia, that has been formed in the Western Region. Nobody knows its membership. A journalist was asking one of the chiefs that he wanted to meet the head of the Cape Militia. He said “why are you asking me as a chief?” In the Western Region, increasingly on the air, leadership, both political and traditional have been accused of not putting the interest of the Western Region before Central Government.
    I do not really think that it is the problem of any government, but the structure of the management of this country is such that the sort of development that Western Region needs, it can never get it. You put an ordinary road, tar macadam in the Western Region, in the northern part, it is not going to last because timber trucks are going to use it, articulated trucks carrying cocoa and timber -- now, the Tarkwa road, bauxite and manganese are being continually carted to the Takoradi harbour and in no time, that road would deteriorate. If you are using the standards of the asphalt roads in Accra, it will never be met.
    Mr Speaker, if you look at the rainfall pattern in the northern part of the Western Region, you need the technical skills of those who put up roads in the Amazon Forest in Brazil. That is why Western Region needs special attention and that special attention is not going to benefit the individuals, it will benefit the nation.
    I am telling you this year, you will realize that most of the cocoa will get rotten in the Hon Member for Juabeso's constituency and Bia. When the road deteriorates, sometimes, the timber trucks can have access, the poor woman who is in labour cannot have transport because no public transport runs and it is in that spirit that we should understand the request by the Western Regional House of Chiefs.
    It did not really come out of the air. I know there are very, very committed
    nationalists in the Western Region, even among the chiefs, very nationalistic but in this matter, we are saying that please, Ghana, put your money where your mouth is so that you can get more resources from the Western Region. My appeal to the people of the Western Region is that they should stay calm. Once their concerns have been brought to the attention of this House and this House has recognized that there is the need for an accelerated development agenda for the Western Region, I am sure together, we will be able to meet the concerns even though it cannot be achieved overnight.
    But my final point - You see, that is why we should intensify the decentralization process. My experience in government has demonstrated to me that the more centralized a government, the more waste you have. Let the people feel that they are contributing to their own destiny, they have their own destiny in their own hands. And I remember when I was Minister for Education -- I have got diverse experiences; let me share this with you.
    Schools under trees, it was introduced under my watch and when I said District Chief Executives and District Directors of Education should come to Accra so that we meet and then they go and award the contracts, it was hue and cry. They lacked the capacity, they could not do it -- Why? No, no, these people -- I said no, let us put monitoring teams in Accra to go round. So these schools under trees is nothing new. I introduced it. It was my initiative.
    Mr Speaker, I say all these things because the dynamics of this country have changed. Can you imagine now having a DCE in a certain district who does not hail from the district? Or a Regional Minister who does not hail from the Western Region being a Regional Minister? Because of the way the country is going, people are becoming more and more inward-looking in the sense that they say that look, “there is something at the centre, we should also
    get our share”.
    However, when we effectively devolve political and economic power to the districts, I am sure that you would have more accommodating citizens of this country.
    Having said this, I want to urge this House to support this Bill and note that wherever there is no consensus, it means that no amendment is coming from the Committee in respect of the clause in respect of which we did not arrive at a consensus.
    I thank you very much, Mr Speaker.
    Minister for Roads and Highways (Mr Joe K. Gidisu) (MP) 12:50 p.m.
    Thank you, Mr Speaker, for the opportunity to associate myself with the Motion on the floor.
    Mr Speaker, in doing so, I want to thank the Committee for coming up with such a Report, which is now the centre of debate. I would want to -- because of time, be very brief in addressing three major areas as contained in your Committee's Report.
    But before coming to the major issues, I want to raise, it is, indeed, very interesting to listen to Colleagues who, with the least opportunity, will take Government on with any lucid policy directives that they may initiate. But for the first time, this time round, they now want to be apostles of spearheading whatever was the initial objective of Government in the Memorandum to Parliament on the Bill.
    Mr Speaker, there is the need for us as a House to be circumspect with the fact that as a Government, at a point in time, it will be possible at the appropriate time to come up with the needed amendment through the various levels that will be followed up later. However, in addressing the substance of the Bill, Mr Speaker, it
    Mr Hammond 12:50 p.m.
    Mr Speaker, two
    matters on a point of order.
    Number one, he says when it comes to the collateralization, people are apprehensive, which I think means people are afraid. Afraid of what? He does not state it, he just said people are afraid. So
    it probably deals with that. And then he talks about collateralization of cocoa; now cocoa with the Bui Dam. Mr Speaker, they are fundamentally [Interruption] please, Hon Minister, get to grapple with the issue -
    Mr First Deputy Speaker 12:50 p.m.
    Hon
    Member, this is not a point of order. If he says something that you do not agree with, when you get your turn, you clarify the position. He has not breached any rule.
    Mr Hammond 12:50 p.m.
    I accept that. Mr.
    Speaker, kindly deal with the apprehension; those who are afraid of what, he should deal with that.
    Dr A. A. Osei 12:50 p.m.
    Mr Speaker, I need
    your guidance, a point of relevance. I do not know whether he is reading from the Committee's Report or the policies and programmes here. If he is like Hon Asaga, he is going against the policy here; he should make it clear because there is nothing here about collateralization. So, if he does not clarify it, we do not see where he is coming from; it is neither in the Report nor here.
    Now, clause 5 does not talk about - he said “prohibited use of petroleum account” - there is nothing about collateral there. So where is he getting it from. If he wants to say that he is against the government's intention, he should make that clear so we can follow where he is going.
    Mr J. K. Gidisu 12:50 p.m.
    Mr Speaker, I am
    indeed surprised that my Colleagues are jumping to their feet on issues of this nature. I am saying that, yes, I sympathize with the apprehension of our country men and women for the use of collaterization of our natural resources of one type or the other. I want to say that, it is in your Committee's Report as one of the areas of disagreement. Mr Speaker, I am not speaking out of turn, I am speaking to your Committee's Report.
    I want to say that yes, when our people

    are apprehensive about the use of our natural resources as collaterization, I do agree that it is as a result of historical experience that they are sharing that apprehension and I am noting that in 2005, this country used spectrum fees to get a facility from the Standard Chartered Bank.

    So also is the use of cocoa as a collateral but the fundamental point of difference is the need for political commitment and resilience in the use of those resources. For now, Mr Speaker, it is agreed that our revenue sources, locally, are not adequate to support the infrastructural development and for that matter, the overall development of the country.

    So there is the need for a guarantee of a sort, hence the need for the petroleum revenue to be looked at appropriately in supporting the generation of any external resources for the development of the country.

    Mr Speaker, another area is the support of the Annual Budget Funding Amount that is needed. Unfortunately Mr Speaker, some people are looking at such a support across board for all the sectors in the country. But we should know that at a particular time, in a particular year, the Budget addresses critical areas and for this year for example, the 2011 Budget which is before the House has identified seven critical areas when we have more than those seven sectors in the country.

    So I just want to assure my Colleagues and the nation generally, that the Government in the saddle of affairs of this country at this time is very sensitive, very resolute, very focused and for that matter, will make sure that whatever are the resources at our disposal, will go into the judicious and overall development of this country --
    Mr First Deputy Speaker 12:50 p.m.
    Hon
    Member, you have one minute more.
    Dr A. A. Osei 12:50 p.m.
    Mr Speaker, I want clarification, the clause that is in this Bill covers everything that is under the Directive Principles of State Policy, that is the clause here. [Interruption.] What he is saying is that he is debating -
    Mr First Deputy Speaker 12:50 p.m.
    Which
    clause are you talking about?
    Dr A. A. Osei 12:50 p.m.
    Clause 22 in the
    Mr First Deputy Speaker 12:50 p.m.
    Hon
    Member, we are at the Second Reading of the Bill where the principles are actually debated and a person may agree or disagree with whatever is in the memorandum, whatever is in the Committee's Report and whatever is in the thing. In fact, article106 says that at the Second Reading, we refer to three main documents, the Bill, the Memorandum and then the Committee's Report.
    If you look at the Committee's Report, an amendment has been filed to the clause 22 that you referred to, and he is also expressing his opinion on that matter.
    Dr A. A. Osei 1 p.m.
    Mr Speaker, that is the clarification I wanted him to - you may understand him but I wanted him to clarify it so that we can follow where he is going. Because Mr Speaker, it is your interpretation, but since he is speaking, it
    would be good for this House if he himself clarifies it.
    Mr J. K. Gidisu 1 p.m.
    Mr Speaker, my Brother understands the point I am making, so he should accept it in that way.
    Mr Speaker, I want to, for the sake of time, say that the petition from the Western Regional House of Chiefs is in a very good spirit when one looks at the totality of the development in that region. Mr Speaker, I would want to share experiences which I was confronted with in the last two weeks in that region. I could not believe that that is the road network on which -[Interruption] -- a lot of the resources of this country move through.
    Mr First Deputy Speaker 1 p.m.
    Hon Members, I have ruled that we should not anticipate the debate on the Budget. It is against Standing Order 95 (2).
    Mr J. K. Gidisu 1 p.m.
    Mr Speaker, the point I am making is that we are not waiting as a Government for the roll-on of the oil money before identifying the Western Region as a priority area. For
    rose rose
    Mr First Deputy Speaker 1 p.m.
    Hon Minister, I refer the House to Standing Order 95 (2) and say that we should not anticipate the debate on the Budget. Because this debate is coming within a reasonable time and that reasonable time is only next week.
    Mr J. K. Gidisu 1 p.m.
    Mr Speaker, I am only giving indications as to the commitment for the Western Region. The Western Region, Mr Speaker, is an issue in this debate, and that is the more reason we should allay the fears of our chiefs and people in that region.
    I am saying that we are not waiting for the roll-on of the oil money before identifying the focal needs of the region. And I can only assure them that not only in the road sector but in the energy sector also, the region is receiving its greatest share in terms of the electrification of that region. And also, I am very much aware that the transport sector - [Interruption] -- the railway is equally being developed and the gas industry is going to roll-on.
    So, Mr Speaker, as much as we would want to focus on the Western Region, the political commitment as I had early on indicated, is very, very vital, and this Government, you can rely on it and leadership will not disappoint the people of that region.
    With these comments, Mr Speaker, I thank you for the opportunity.
    Prof. Mike A. Oquaye (NPP - Dome/ Kwabenya) 1 p.m.
    Thank you very much, Mr
    Prof. Mike A. Oquaye (NPP - Dome/ Kwabenya) 1:10 p.m.


    Speaker, for the opportunity to contribute to this very, very important debate. Mr Speaker, as people from the Committee that went round, from the words of our people, from the general spirit of this House and what is generally captured in the very essence of what is before us, it is quite clear that we all see oil as different from all commodities. It may be a windfall, it may be seen as a special blessing or visitation but Mr Speaker, we all know that oil can be a curse and not a blessing, depending on how oil affairs are managed.

    Mr Speaker, this is why we have got the good examples and the bad ones and some of the models that we all know so much about, that is why we got things like the Santiago Principles, how oil should best be managed. That is why the World Bank has brought very crucial benchmarks, that is why the best practices have been so much expounded in a number of international conferences and just as good governance became the order of the day, we all know basic principles for the good management of oil affairs so as to benefit the people.

    Mr Speaker, before I make a few comments, I would like us to have it very clear in this Honourable House, our people are never going to be saved by the intentions of some good men. No matter how good any particular President, no matter what party may be in power at any given time, our people are looking onto us as this Honourable House to pass laws that will strengthen the proper and judicious management of affairs, and that is the essence of the rule of law and not the rule of man.

    If we get this principle well, I believe it will help us at all times, no matter who or what party is in power, and when we go about that, then we will be able to discuss certain fundamental issues in our nation dispassionately.

    Mr Speaker, if we talk about some of the areas of contention, such as clause 5, it is important for us to ask ourselves, should we have a government at any given time, not any particular government or party, and I want to speak as politically as possible.

    Should we have a government's hands unfettered as to how it commits a people to oil funds in the future? In other words, a government, which is elected for four years, should it be able to commit funds limitlessly for, say, 50 years and tie the hands of future generations? Mr Speaker, I think we should not start on such a note.

    We should definitely have a time frame beyond -- which any government whatsoever cannot commit oil funds by way of security or borrowing. So that future generations would not be limitlessly fettered in the application of oil affairs.

    So, Mr Speaker, if 50 years is not reasonable, what should be? The collective wisdom of this House should think of a formula for example, whereby we would say, a government elected for four years will not be in a position to mortgage oil funds against the future beyond, let us say, five years or 10 years. But Mr Speaker, I believe we should be able, in our collective wisdom, to come to a certain period in this connection for example, so that it is not limitless.

    Mr Speaker, another angle that appears to my mind is putting aside some money or managing affairs of oil funds separate from the Consolidated Fund. Mr Speaker, it is very, very important for us to be advised by the obvious examples of history, and we know the difficulties that accrue with regard to the broad mass of government funds.

    I believe we have a formula whereby oil funds are separate, clearly identifiable, managed differently so that they do not fall into the quagmire of the Consolidated Fund.

    Mr Speaker, one area which is also

    very, very important for us to look at is the Public Interest and Accountability Committee (PIAC). Mr Speaker, this matter did not just come; it came as a result of a whole range of consultations by a body set by our Government. The Government found it necessary to include it in the proposals before us at this moment.

    Mr Speaker, I believe we should not depart from it. It is very, very important to note that our people would want to know what exactly is happening and the involvement of civil society as a whole, has become one of the most important tenets of good governance throughout the world.

    Mr Speaker, some argument was raised that responsibility and accountability rest with Members of Parliament. Mr Speaker, this will not take our powers; it will help us to effectively perform the functions we know we should be performing. It will also mean that our people as a whole, will know what is happening at any given time.

    Mr Speaker, oil has brought conflicts in many nations and some of the reasons are very clear to us and they can be cleverly anticipated and provided for by this particular PIAC. Mr Speaker, one such thing is false expectations. If we carry knowledge within the parameters of ourselves only and people have all manner of false expectations about oil money and oil going to change their lives overnight, if that does not happen, they will think something is amiss.

    Mr Speaker, if we broaden the parameter and civil society is involved and we all know the truth of the matter and it is public knowledge, then of course, they will even discuss it in the churches at various fora and people will not have unnecessarily wild expectations. That itself is good for good governance and

    it will be very good for the Government because people will know exactly what is happening and their expectations will not be false, their expectations will be realistic because they themselves are involved in the management of oil affairs.

    Mr Speaker, we cannot deny the fact that in this country today, there is distrust of politicians. This is the truth, both sides of the House agree. Why do people distrust politicians? Why should we not take steps to correct this distrust? Mr Speaker, I know as a fact that this distrust of politicians is in most cases baseless. We are not corrupt people here, we are not making money here. But people think otherwise.

    Mr Speaker, open the doors that they too can see. Open the doors for the public through this public accountability mechanism, through this, bringing everything to the knowledge of our people. They themselves will tell them what the realities of oil management are.

    Mr Speaker, I will say, let us not close the door to this particular Committee, let us even open the door wider because it will be good for our people, it will be good for politicians, it will bring openness, it will bring up transparency, it will involve participation and it will bring nothing but the truth. Mr Speaker, looking at what I am talking about -
    Mr First Deputy Speaker 1:10 p.m.
    Hon Second Deputy Speaker, kindly start winding up. As the Second Deputy Speaker, I have protected you; I did not want to take any point of order against you.
    Prof. Oquaye 1:10 p.m.
    Mr Speaker, I am being very, very factual and I think this matter is a matter of grave importance.
    Mr First Deputy Speaker 1:10 p.m.
    Hon Second Deputy Speaker, I saw some people on their feet but I refused to call them because I want to protect you as the
    Prof. Oquaye 1:10 p.m.
    Mr Speaker, I would like to share a very important - [Interruptions.] Mr Speaker, I was of the opinion that Ranking and allied Members have a certain number of minutes. Mr Speaker, I will respectfully ask that it be extended to me --
    Mr First Deputy Speaker 1:10 p.m.
    Which ones are the Allied Members? [Laughter.] I like the “Allied”, I admire the “Allied”.
    Prof. Oquaye 1:10 p.m.
    Mr Speaker, I did not want to be too specific with regard to my office.
    Mr Speaker, it is very, very important to us to be mindful of a very important statement made by the Managing Director of the World Bank, Okonjo Ngozi- Iweala, and I respectfully quote with your permission:
    “Transparency works both ways and it is for the company as well as the countries . . .”
    That is the oil companies and the countries in which they are --
    “. . .their people need to know and the more they know what is being done for their even benefits, the more they will be supportive.”
    Mr Speaker, they must know and that is
    all that this is asking for and I think Hon Members must maintain this.
    Mr Speaker, talking about this important body, the Advisory Committee, I would want to make a few comments that go to the principle of the matter.
    Mr Speaker, it must not be appointed by Government, it must not be appointed by
    the Minister, there should be institutional representation. Mr Speaker, the principle of institutional representation is well catered for in this Constitution. The principle of institutional representation helps us a lot to ensure that things go well.
    For example, we have the Institute of Bankers, the Ghana Bar Association, the Institution of Engineers, the Trades Union Congress and then the National Council on Women and Development. Mr Speaker, if these institutions bring one person each, it becomes a better civil society body [Interruptions.] -- that will help to do justice to our people.
    Mr Speaker, may I respectfully refer to the very principles that were captured by the memorandum to Parliament by the Hon Minister for Finance and Economic Planning. Mr Speaker, it speaks for itself and it is admirable in many ways.
    Mr Speaker, that is from page 10 1:10 p.m.
    “. . .many oil exporting countries have frequently ended up in debt because they tend to borrow more than 100 per cent of their increased revenues.”
    The overall objective of the Bill is to develop a management framework that will ensure that the additional physical support to the Budget is used effectively. It goes on, “there are at least four reasons for developing a revenue management law”. It goes on among others to say, “oil revenue is different from other sources of revenue.”
    When we are making comparison, let us make it judiciously. Even this Bill itself recognizes that oil is not cocoa, oil is exhaustible, in fact, cocoa is virtually inexhaustible, so long as there is soil and as long as you continue to plant I have worked on cocoa farms before. And so when oil comes, Mr Speaker, when you are talking about oil matter, if you look at Ogoni, if you look at so many things, do not please compare it with just any other
    Mr Speaker, that is from page 10 1:20 p.m.


    It says they are different -- Please - [Interruptions.] The last paragraph of page 10 out of 24, they are different from conventional tax revenues. That is the basic principle. They are different from conventional tax revenues and it is a truism. So what do you do? You say it and just leave it like that? That is why these mechanisms are there and it should be protected. It says clearly and I agree, they are subject to wide variations over time.

    Mr Speaker, what this means inter alia is that, if for example, you are not careful and you simply take loans or facilities against oil that will run about fifty years, the variations in the price can really collapse your entire economy in five years because you never know what happens to the oil price.

    Today, it is US$50 a barrel; in no time, it is US$140 a barrel and so on and so forth. And in fact, putting it so much ahead and being so futuristic is so dangerous that it may even tie your hands from having the full benefits of some of the exigencies and vagaries of that industry. Is that what we want for ourselves? So Mr Speaker, it requires that these matters must be treated with the seriousness and the peculiarities that are incidental to oil as oil.

    Mr Speaker, the issue of the Western Region must be understood in a certain different perspective. Mr Speaker, it is not just a matter of some people saying we want more of something because it has been found in our region. Mr Speaker, there are environmental consequences
    -- 1:20 p.m.
    Mr First Deputy Speaker 1:20 p.m.
    Hon Second Deputy Speaker, how many minutes more -
    Prof. Oquaye 1:20 p.m.
    Mr Speaker, I will wind up.
    These environmental peculiarities may affect the fishing industry and means of livelihood of the area. It has atmospheric consequences that may not affect other regions. The sea and its texture and the monocles and other factors are subject to being affected. How do you compensate for this with these within those parameters?
    The increase in land value may involve the people in the region seriously being deprived of land if they also do not have an increase in their revenue. And they also have to be prepared - [Interruptions.] Mr Speaker, I pray that you protect me so that I conclude --
    Mr First Deputy Speaker 1:20 p.m.
    I have all along protected you.
    Prof. Oquaye 1:20 p.m.
    Mr Speaker, for the people in the region to become serious players in the local content issue that will emanate, what do we do? We also have to give them extra money so that we prepare technical schools, so that we prepare so many things that will make them better able to cope with that new environment.
    Mr Speaker, if we do not do that, even the people in the West because of the monies, because of the attractions, the foreigners who will come, if we do not take care, we will expose even the young girls unnecessarily to prostitution. [Interruptions.] And Mr Speaker, these things have been statistically prove in other countries, research has shown it. So when oil is coming to a region, let us sit and give them a special consideration. The Western Region deserves this. Any other region where oil comes will also deserve it. [Hear! Hear!] When the Volta Basin oil comes, it will deserve it. It is a matter
    of being judicious and being mindful and knowledgeable about what oil implies and connotes.
    I thank you, Mr Speaker.
    Minister for Communications (Mr Haruna Iddrisu) (MP) 1:20 p.m.
    Mr Speaker, thank you very much for the opportunity to associate myself with the Motion for this august House to pass the Petroleum Revenue Management Bill, 2010.
    Mr Speaker, in doing so, let me refer you to the second page of the Memorandum and in particular paragraph 2 and with your indulgence, I quote:
    “The effective management of petroleum revenue is critical for the development of the nation. The Bill envisages that a long-term national development plan will be in place and be implemented through successive medium-term expenditure frameworks aligned with national budget.”
    Mr Speaker, the President of the Republic made a pledge to the people of Ghana that he can guarantee and ensure judicious and efficient use of petroleum resources. Consistent with that pledge, he has accordingly submitted to this House for its perusal and consideration a Petroleum Revenue Management Bill.
    Mr Speaker, I must admit that I have enjoyed very many aspects of the debate and in particular that of Prof. Gyan- Baffour even though I beg to disagree with some of the submissions that he made.
    Mr Speaker, I am well aware that the National Development Planning Commission (NDPC) has completed a medium-term development strategy which will be submitted to this House and it will guide what alignment and investment should be done. But Mr Speaker, whether or not petroleum revenue should be specifically aligned into national budget,

    is a matter for us to take a position on.

    But Mr Speaker, I agree with the Hon Member for Sekondi (Hon Papa Owusu- Ankomah) that given our experience of Highly Indebted Poor Countries (HIPC) , multi-lateral debt relief, we may not be able to point into concrete issues of what the investments were directed at. Therefore, this House has a unique opportunity to recommend how petroleum revenue should be used.

    Mr Speaker, let me refer again to the Memorandum. It says that the money is to be used for the development of the nation. And if you read the Committee's Report, specific reference is made to infrastructural development over a ten- year period. What we may disagree on is whether the items listed under clause 22 are not too exhaustive if we want to have concrete results.

    I believe that when we get to the Consideration Stage of the Bill, we have every opportunity to guide Government in narrowing to specific four or five subject areas in particular, not to abandon the agricultural sector as an alternative because of the revenues that are likely to be derived from this particular sector.

    But Mr Speaker, the Hon Prof. Gyan- Baffour raised a very important issue when he said that we need roads, we needed water, improved healthcare, quality education, that is precisely why I am sure in the Committee's wisdom -- let me refer you to page 8 of your Committee's Report in particular paragraph 1. And Mr Speaker, I do know that we will soon get to the Consideration Stage of the Bill and the particular issue which as engaged the attention of this House, is the prohibited use of petroleum account.

    Mr Speaker, al l the petroleum agreements, and I am happy one of the contributors acknowledged it is to loosen the expectations of the Ghanaian people.
    Minister for Communications (Mr Haruna Iddrisu) (MP) 1:30 p.m.
    We tend to create an impression as if the Government of Ghana was 100 per cent bona fide owner even of the oil resources, forgetting that the commitments that this House has made, invariably, has been 90 per cent to the contractor, 10 per cent to the Government with the possibility of an additional 15 per cent of carried interest.
    So whatever is the stake of the Republic of Ghana will reflect between the 10 and 15 per cent; even as we move into production of these resources -- [Interruptions.] I say this House, whether it was KOSMOS, it was Tullow, we made commitments, and our commitment was that Government will have a carried interest plus a participating interest, and depending upon what contribution we will make, we could adjust it upward. That cannot be disputed as a factual statement. Absolutely. Hon K. T. Hammond knows that. I am on the Committee with him.
    But Mr Speaker, let me refer you to page 6 of the Bill and in particular, a heading -- there are senior lawyers here so that we will engage our attention more.
    “5 (1)The assets of the Petroleum Account shall not be used:
    to provide credit to the government, public enterprises, private sector entities or any other person or entity.”
    Mr Speaker, my interest is in private sector entities. KOSMOS has an agreement with the Government of Ghana; Tullow has an agreement with the Government of Ghana. Maybe, Ameradaheds have an agreement with the Government of Ghana. Are we by this suggesting that they cannot borrow on the basis of the Agreement that they have concluded with the Government of Ghana? That is why we must take a second look at this particular provision because I know, for sure, that many of these oil companies, on the basis of their discoveries, have already even gone onto the international market to borrow. That is why we must take a second look at this
    particular provision because they qualify to be described as private entities. Are we saying that they cannot borrow on the basis of this particular issue?

    Mr Speaker, I know this is a matter for the Consideration Stage of the Bill but I still will refer you to the second paragraph of page 8, and with your indulgence, I quote:

    “Other Members however argued that the savings should not be used as collateral against government borrowing or a guarantee for any entity. However, it is the view of these Members that the Annual Budget Funding Amount is a part of the Consolidated Fund and therefore, Government should be permitted to determine its use subject to the approval of Parliament.”

    Mr Speaker, clearly, I would associate myself with this portion of the Committee's Report. That the Government of Ghana be given a free hand to be able to borrow against its petroleum revenue to deal with the very infrastructural deficits that the Hon Prof. Gyan-Baffour referred to. That we need quality health- care, we need to improve access to potable water and we need to improve access to medical care and therefore, we cannot postpone this development under the altar of savings.

    That is why, precisely in the Bill, Mr Speaker, specific provisions have been made for the development of the Heritage Fund and that is where I again, want to disagree with the respected Professor. The essence of the Heritage Fund is to assure future generations, precisely, because this resource is exhaustive that those generations can be guaranteed, that

    at the point that the resources were being produced and utilised, some provision was made to take care of their future needs. And that is why I think that we should support the establishment of the Heritage Fund.

    Now, Stabilisation Fund, we have also
    rose
    Mr First Deputy Speaker 1:30 p.m.
    Do you
    have a point of order? It should be a strictly point of order.
    An Hon Member 1:30 p.m.
    Order number?
    Mr First Deputy Speaker 1:30 p.m.
    Hon Member for Manhyia?
    Dr Prempeh 1:30 p.m.
    Mr Speaker, the Hon Minister for Communications makes a fact and quotes that to provide credit to the Government, public and private sector entities -- Mr Speaker, it is precisely under Prohibited Use of Petroleum Account, which these private sector companies, he alledged, which are partners in the oil field exploration and commercial enterprises are not subject to. So, he is misleading the House in thinking that this refers to the Tullows and the KOSMOS of this world. This provision has got nothing to do with that. And it is a misleading statement to the House.
    Mr H. Iddrisu 1:30 p.m.
    Mr Speaker, even not just same oil, I would urge the Hon Napo to read further clause 5 (2) of the Bill and with your indulgence, I quote:

    “In order to preserve revenue streams from petroleum and ensure the object of this Act, there shall not be any borrowing against the Petroleum Reserves.”

    You have committed some contractual relations with these private sector entities against the reserves, therefore, in my honest view, it is legally untenable to tie their hands that they cannot borrow against it. That is my argument.
    Dr A. A. Osei 1:30 p.m.
    Mr Speaker, I think the
    Hon Member who just spoke was going on a path -- on the Stabilisation Fund. I agree with him, but he said it was put there to protect Government against all shocks. It is not all shocks, it is a specific shock, so, he has to be careful. It has to be in the petroleum sector for it to be active. If he says “against shocks”, people may think that if it is gold shock, you can go there. So, I just want him to be careful.
    Mr H. Iddrisu 1:30 p.m.
    Mr Speaker, I accept his qualified “shocks” in so long as he shares the principle that there must be a Stabilisation Fund to which some of the revenue to be derived from this must be used for.
    Mr Speaker, may I refer you to pages
    22 and 23 of the Bill. It is not for nothing, there is a specific heading -- clause 51: “Transparency as a fundamental principle” and matters of the appointment of the Public Interest and Accountability Committee and to assure this House that that is why precisely specific provision has been made for this. Because the thrust of the President's promise to the people was transparency in the management of the oil resources.
    So, to the extent that the Public Interest
    Mr H. Iddrisu 1:30 p.m.
    and Accountability Committee is to assist Government, including Parliament and the Office of the Auditor-General to hold us accountable to the utilisation of petroleum resources, we are all for it. But the problem has been that, in defining civil society, we hope that this House will be better guided because of the diffused nature of that political constituency that everybody is well represented and we are not going to duplicate functions.
    Mr Speaker, finally, let me make a

    Mr Speaker, we particularly encouraged and, let me commend the Committee - [An Hon Member: That they should give us a national award] - The Hon Co-Chairman wants a national award - for recommending - Mr Speaker, the people of Western Region deserve better. And their contribution to our national economy can never be overemphasised or belittled by any person. They have made tremendous sacrifices to the development of our economy, whether in the area of mineral resources or in the area of cocoa.

    I am aware that some commitments are being done that at least, over US$100 million will be spent by Government to fix the road network in the cocoa growing areas of the Western Region - [Hear! Hear!] Some commitment is being made by Government. Mr Speaker, I am aware that concerns have been raised, whether it was allocation to the Savannah

    Accelerated Development Authority (SADA) or allocation to the Central Regional Development Commission (CEDECOM), the figure I have mentioned can only double the allocations that are made to those specific constituencies.
    Dr A. A. Osei 1:30 p.m.
    On a point of order. Mr
    Speaker, I think you have ruled today, that we should not anticipate either the Budget or something that is not before us.
    He said he was aware that a commitment had been made; we are not aware. He cannot anticipate. Because then, he is veering to an area that is bringing unnecessary debate. He should wait till it is before us so that we -
    Mr H. Iddrisu 1:30 p.m.
    Mr Speaker, I am

    Mr Speaker, finally, let me just refer to article 257 -
    Dr A. A. Osei 1:30 p.m.
    Mr Speaker, this is precisely why I said he had to be careful. Today, I heard him on television mentioning US$200 million. He comes here and says US$100 million. He said that on television today. So, he should avoid -
    Mr First Deputy Speaker 1:30 p.m.
    Hon Member, you know the constitutional role this House performs when it comes to expenditure and so -
    Mr H. Iddrisu 1:30 p.m.
    Mr Speaker, I am assuring this House that, higher authority has taken a decision to address the concerns of the people of the Western Region - [Interruptions.]
    Mr Speaker, finally -
    Mr Hammond 1:30 p.m.
    Mr Speaker, on his own admission, there are two figures; one is US$200 million, the other is -
    Mr First Deputy Speaker 1:30 p.m.
    Hon K. T. Hammond, you know you are out of order?
    Mr Hammond 1:30 p.m.
    Yes, Mr Speaker.
    Mr First Deputy Speaker 1:40 p.m.
    Whether US$100 or US$200, that matter is not before us. We are the ones who authorize Government to spend. Once the final statement, he says there is a commitment, he should leave it at that; he cannot mention any figure because as far as we are concerned, no figure has been brought to this House, neither have we approved any figure. He should leave it at the commitment level, not beyond the commitment level.
    Mr Hammond 1:40 p.m.
    Mr Speaker, the point
    we are trying to bring to his attention is that he is a Minister of State; he has given two statements on record. One on television to the people of Ghana, one in this House to the people of Ghana. Two contradictory -
    Mr First Deputy Speaker 1:40 p.m.
    Well, I am not aware of the other one; the one I am aware of is the US$100 million, which he has mentioned on the floor of this House. And when the point has been raised as far as this House is concerned, we have not authorized any US$100 million. If he wants to leave it -- as a certain commitment has been made by
    Government, he should leave it at that level.
    Mr H. Iddrisu 1:40 p.m.
    Mr Speaker, I know I am speaking before the august House and I respect the authority of this House and I maintain my integrity and honour as a member of Government, that this commitment would be honoured.
    Mr Kyei-Mensah-Bonsu 1:40 p.m.
    Mr Speaker, I think we have a very clear and unequivocal position on this. You have advised that the Hon Minister limits himself to commitments that he may be aware of and not mention figures. Is he by implication telling us or giving a firm indication that he has withdrawn the figure that he has put on it; the US$100 million?
    Mr First Deputy Speaker 1:40 p.m.
    Hon Members, there is only one figure before us here and that is what the Hon Minority Leader is talking about. There are no two figures. He did not mention two figures; he only mentioned one figure today in this House.
    Mr Kyei-Mensah-Bonsu 1:40 p.m.
    Mr Speaker, the point at issue is the US$100 million; you have said that he better remains -
    Mr First Deputy Speaker 1:40 p.m.
    I have got your point; he is going to respond to it.
    M r K y e i - M e n s a h - B o n s u : Appropriately.
    Mr H. Iddrisu 1:40 p.m.
    Mr Speaker, I have made a commitment that over US$100 million will be -- that higher authority has made a commitment to invest over US$100 million to fix the road infrastructure of the Western Region and I maintain it. As and when the specific details would be given, it would be brought to this House. I have been party to a discussion and I know what I am talking about, Mr Speaker. They should wait and see whether Government will attend to the development needs of the Western Region or not.
    Dr A. A. Osei 1:40 p.m.
    Mr Speaker, you directed that he should limit himself to commitment. He is disobeying your orders -
    Mr H. Iddrisu 1:40 p.m.
    And I have limited myself to commitments.
    Dr A. A. Osei 1:40 p.m.
    He says, do not mention a number. Mr Speaker directed that limit yourself to commitments and Mr Speaker, he is repeating what you asked him not to do.
    Mr H. Iddrisu 1:40 p.m.
    There is a commitment to develop the Western Region and a commitment to fix the road infrastructure of the Western Region. As and when discussions are conclusive, I am sure this Honourable House would be brought on Board.
    Finally, Mr Speaker, let me just refer to clause 257 (6) of the Constitution and end my contribution to this debate. Mr Speaker, with your permission, I quote:
    “Every mineral in its natural state in, under or upon any land in Ghana, rivers, streams water courses throughout Ghana, the exclusive economic zone and any area covered by the territorial sea or continental shelf is the property of the Republic of Ghana and shall be vested in the President on behalf of, and in trust for the people of Ghana.”
    And that all of us in contributing to this debate would appreciate the provisions of the Constitution to jettison our partisan, regional and other considerations and trust that the President would oversee and shepherd an efficient and judicious utilization of our petroleum resources.
    I thank you for the opportunity.
    Mr Albert Kan 1:40 p.m.
    None

    Afigya-Sekyere West): Thank you, Mr Speaker.
    rose
    Mr First Deputy Speaker 1:40 p.m.
    Hon Asaga, do you have a point of order?
    Mr Asaga 1:40 p.m.
    My point of order is that I thought this credit should have been extended to other Ministers for Energy. Because if anything it was discovered in 2006 when he was no longer the Minister for Energy. So I expected that people like Hon Kofi Adda and -- Tsatsu and the rest should all be commended. [Laughter.]
    Mr First Deputy Speaker 1:40 p.m.
    Hon Member, you know that is not a point of order.
    Mr Kan-Dapaah 1:40 p.m.
    Mr Speaker, I would also like to congratulate those who have contributed in crafting this Bill. This again, Mr Speaker, was an exercise that started under the Kufuor Government and have been brought to finality under the Mills Government and I am indeed, most impressed about the wide public consultations that did take place and indeed also, the extensive participation of civil society in crafting this Bill. Mr Speaker --
    Mr First Deputy Speaker 1:45 p.m.
    Hon Members, having regard to the state of Business of the House, I direct that Sitting be held outside the prescribed period.
    Mr Kan-Dapaah 1:45 p.m.
    Mr Speaker, we need a Petroleum Revenue Management Bill, such as we have the Forestry Bill and I believe the memorandum to the Bill has done a very good job in detailing why we need this legislation. There is one justification which excites me, Mr Speaker, and it reads and with your permission, I read:
    “If Ghana is to avoid -
    The fourth paragraph of the first page, states and Mr Speaker, with your permission, I quote:
    “Petroleum revenue management legislation is necessary if Ghana is to avoid the costs associated with the alternative options of leaving the revenue to be collected and accounted for as part of conventional revenue, or in the hands of the national oil company.”
    Mr Speaker, I like that particular justification because I believe it says the truth. But Mr Speaker, even though I am excited about this Bill, I must say I have some disappointments in some areas.
    To begin with, it is, in my view unfortunate that we have to discuss the Petroleum Revenue Management Bill before we have had the opportunity to approve the Exploration and Production Bill. I think we need to learn to do the right things at all times.
    Mr Speaker, “B” must always follow “A”. It is wrong if you have “A” following “B” and the right thing that
    Mr Asaga 1:45 p.m.
    On a point of order. I think that my Hon Colleague was going very well. But this analogy of “A” and “B” is neither here nor there because there is an Exploration and Production Act. So it is not anything about -- this is a new Bill; we already had a law that guided exploration and production and that was the law that he used in approving all the petroleum agreements and that law is still relevant. But it is just the wisdom of the Executive that we must add a few clauses to it and that does not negate the revenue coming into place. So I do not think his “A” and “B” really fit into this context.
    Mr Kan-Dapaah 1:45 p.m.
    Mr Speaker, the Hon Chairman himself has come to this House to say to us that that Act he is referring to has outlived its purpose. Everybody -
    Mr First Deputy Speaker 1:45 p.m.
    Which Chairman are you referring to?
    Mr Kan-Dapaah 1:45 p.m.
    The Chairman of the Committee on Energy came here and laid-- there was a Bill which sought to replace that one, which everybody, including Hon Asaga knows, has outlived its usefulness. So I am surprised that he is trying to say that now and I think it would be better for him if he takes his seat and listens to me.
    Mr Asaga 1:50 p.m.
    Mr Speaker, I have never said that Exploration and Production (E & P) Law 1984, PNDCL, has outlived its usefulness. I have always said it is sustainable but because of the post- discovery, we needed to make a few amendments, so not that it has outlived its usefulness. Not even the Constitution of
    Mr Kan-Dapaah 1:50 p.m.
    Well, Mr Speaker, all he is saying is that, he agrees that the existing Act needs to be revised and I do not understand why he is trying to make this point. So I believe, and I think it is the belief of most Ghanaians, that we should have had the new E & P Act in place. Because this Bill must respond to that particular Act. So we have to put in place a Petroleum Revenue Management Bill when we do not have that Act in place. I think that is a disappointment that could have been avoided.
    Mr First Deputy Speaker 1:50 p.m.
    Hon Kan- Dapaah, the point being made is that as for Petroleum Revenue Management issue, there is no law at all but there is a law, that is, PNDC Law 84, which is in existence even though it needs an amendment. But with regard to revenue management of petroleum, there is nothing at all. But at least, when you were the Hon Minister for Energy, there was some law in place and that because of the discovery now, we have to look at a law which is consistent with the whole discovery regime and amendments have to be made. That is the point that he is making. So let us continue. You have made your point.
    Mr Kan-Dapaah 1:50 p.m.
    Mr Speaker, I think it would help if you stop with the interventions. Mr Speaker, again, I think you are trying to contribute to the debate from the Chair, with all due respect.
    Mr Speaker, following the oil discovery in Ghana, it is generally accepted that that particular Act has outlived its usefulness; everybody knows that. So I do not understand why he is trying to challenge and why Mr Speaker, you are trying to lend some credibility to the statements that he is making --
    Mr First Deputy Speaker 1:50 p.m.
    Hon Member, that is precisely what they are
    disputing. That is what they are disputing and that is why anytime you make that statement, they get on their feet even though I try to avoid them. But each time you make that statement, they get on their feet and I try to summarize that; you are telling me that I am contributing to the debate. And what I wanted to do was to summarize the point that they are making so that they do not come back to intervene.
    But once you make the statement and they disagree with you and they are on their feet, I will also be tempted at a point to call them. But I want the debate to flow and to be very smooth.
    Mr Kan-Dapaah 1:50 p.m.
    Mr Speaker, you know interventions of Hon Asaga when I am on the floor are normally not to be taken seriously. He takes delight in making those kinds of interventions.
    But Mr Speaker, I repeat that it would have been useful if we did have that Act in place before we go to the Revenue Management Bill.
    Mr Speaker, another disappointment is that because we do not have that E & P Act, we still do not have that commission, that Petroleum Commission which is a requirement of the Constitution and which should have been here to help us to co- ordinate the policies in that sector.
    1.55 p.m. -- MR SECOND DEPUTY SPEAKER
    Mr Kan-Dapaah 1:50 p.m.
    I believe, Mr Speaker, these are lapses that could have been prevented and I hope that in future, we will learn from it.
    Mr Speaker, I did say that I was excited about one of the justifications listed in the memorandum and I quoted it. I think that is relevant, because financial accountability in this country has been very, very awful. The accounting module in our public financial management system is obviously not working and indeed, it has never worked for a very long time.
    Most people would even argue that there is probably no such module.
    The result is that the various MDAs as of today, are not even able to record revenues and expenditures that they deal with. And the result is that the MDAs have consistently been unable to produce year- end financial statements.
    Mr Speaker, we need to revamp G o v e r n m e n t 's m e c h a n i s m s f o r accountability. I have listened intently to the need for a second layer of accountability as proposed in this Bill. Mr Speaker, as has been said, this is not a demand of the drafters; I do not even think this is a demand of Government. It is a demand of the general public out there. Eighty- three (83) per cent of the people who were surveyed said that they demanded that sort of second layer accountability and this is a serious indictment, I believe, Mr Speaker, of our political class. The paradox here seems to be that while we hail the victory of democracy in our country, Parliament, which is the central institution of democracy, has a serious crisis of credibility. And I think we should not just ignore this; I think this is a warning to us in Parliament and we must learn from it.
    Democratic Parliaments, Mr Speaker, I believe, must answer to certain key characteristics, notably - you must be seen to be transparent, you must be seen to be accountable and above all, we must always demonstrate that we love the nation more than our political parties. That is not the perception out there and I am not surprised that the public is demanding that we have another layer of accountability.
    Mr Speaker, I think it would be dangerous to fight against this. I think we should accept it and rather learn from it and make sure that we improve upon our credibility.

    Mr Speaker, again, given the state of our economic infrastructure and the huge Budget deficits, do we have to reserve something for the future generations? Again, Mr Speaker, the question has been posed, would the future generations not rather want more University of Ghana (Legon), more Kwame Nkrumah University of Science and Technology (KNUST), more economic infrastructure; would they not need this more than cash in a foreign bank account?
    Mr Second Deputy Speaker 1:50 p.m.
    Order! Order!
    Mr Kan-Dapaah 2 p.m.
    Mr Speaker, as we debate this important Bill, I want to advise that Nigeria is too close to us to ignore their experiences. For this reason, I strongly urge the House to find a way to accommodate the demand of the Western Region. As they say “a word to the wise is enough.”
    Yesterday, we were informed in the newspapers about the activities of men in Nigeria. We should avoid a similar situation and I am encouraged by the assurances that are being given that Government would find a way to accommodate the demands of our brothers in the Western Region.
    Mr Speaker, what is this talk about allowing Government to use future revenue as collateral for Government's borrowing? I think this must be discouraged and please, let us avoid the temptation of comparing this with cocoa revenue. Because I heard it said that, yes, but we have used cocoa revenues before as collateral, so why can
    Mr Speaker, if I can quote him as he puts it 2 p.m.
    “The primary development objective for the Ghanaian economy must be that single, minded focus on its structural transformation. The economic importance of this oil-find is that it must help in a structural transformation and get us to move
    away from the production of yet another raw material which is oil.”
    Mr Speaker, it is in my opinion, a
    matter of great regret that in spite of the statement in the memorandum which recognizes the need for us to use the oil revenue to transform our economy, and in spite of the advice that we have received from several quarters, there is nothing in the body of the Bill to give effect to the need for us to use our oil revenue to transform our economy. I think during the Consideration Stage, it would be useful for us to craft certain amendments which would try to cure this particular defect because I think we need to live up to the promises in the memorandum and see how best we can use our oil revenues to transform our economy.
    Mr Speaker, I want to thank you for the opportunity to make these few remarks.
    Alhaj i Mohammed-Mubarak
    Muntaka (NDC - Asawase): Mr Speaker, I rise to associate myself with the Motion before the House and take this opportunity to thank the joint Committee on Finance and Mines and Energy for a very brilliant work done even though they had some areas they could not agree but by and large I believe everyone who reads this Report will definitely attest to the fact that a lot of work has gone into it.
    Mr Speaker, I would want to talk on
    three main issues but even before I do that, I want to sound this caution. Mr Speaker, if we look at the Bank of Ghana Act, 2004 and 2005, the Bank of Ghana is supposed to report to this House on its activities annually. This has never been done. If we look at the Committee's Report, we are emphasizing that and Mr Speaker, with your indulgence, I quote page 4, paragraph 4:
    “Reporting obligations are placed

    on the Bank of Ghana to produce quarterly performance reports on the Ghana Petroleum Funds. The Bank is also required to publish the semi-annual reports on its website.”

    Mr Speaker, I would want us, when we

    get to the Consideration Stage, to find a way of making it mandatory -- having this credibility gap with what we have already done and the way they are responding to issues with regard to this House.

    Mr Speaker, the second other thing that

    I would want us to lay very much emphasis on is the issue of payment of this money directly into a separate account at the Bank of Ghana and this can be found on page 3, paragraph 2, the last line:

    “Provides for petroleum revenue due the Republic to be paid directly into the Petroleum Account. This is to ensure transparency and ease of tracking. The capital and operational expenditure of the National Oil Company are to be incorporated into the National Budget for scrutiny and approval by Parliament. Quarterly publication of the petroleum receipts into the Petroleum Account and the deduction of management expenses by the Bank of Ghana are also covered under these clauses.”

    Mr Speaker, we have another example.

    Under Act 650, the National Health Insurance.

    Mr Speaker, consistently, the Ministry
    rose
    Mr Second Deputy Speaker 2 p.m.
    Hon
    Dr Akoto Osei, do you have a point of correction?
    Dr A. A. Osei 2 p.m.
    Yes.
    Mr Second Deputy Speaker 2 p.m.
    Is it a
    factual point of correction?
    Dr A. A. Osei 2 p.m.
    It is a factual point of
    correction.
    Mr Second Deputy Speaker 2 p.m.
    Please, go ahead.
    Dr A. A. Osei 2:10 p.m.
    Mr Speaker, a point of correction. Mr Speaker, I appreciate the point he is making. If Parliament wanted to create a separate fund as per article 175 of the Constitution, they should have done so with the National Health Insurance Scheme (NHIS). Unfortunately, there is a defect. If you are taking your money out of taxes, it must go to the Consolidated Fund first.
    This Bill is going to create another fund, not through the Consolidated Fund, and therefore, it is different from what he is talking about. The NHIS took it through the Consolidated Fund, that is why there is that problem. You can always go and check it more.
    Mr Second Deputy Speaker 2:10 p.m.
    Thank
    you very much, Doctor, your point is very much appreciated.
    Alhaji Muntaka 2:10 p.m.
    Mr Speaker, the
    emphasis is here. By the Act, it says that it should be put into the Fund. Now, you try to use the Constitution to say that it must go through the Ministry of Finance and Economic Planning and you then decide to determine when to put it into the Fund.
    One important argument that has gone through this House for and against since yesterday is the issue of the Public Interest Committee. I am very happy the penultimate Hon Member who spoke mentioned that this - If you look at the public opinion, it is an indictment or it is showing the credibility that the public has - the mistrust or the distrust that they have in Parliament.
    All I am saying is that if that is why we think that the public are saying that there should be a Public Interest Committee, I am saying that it is equally same with the Judiciary; it is same with Police and it is even same as earlier mentioned by your goodself Mr Speaker, that all politicians -- Are we going to say that there should be an alternative to the Police, an alternative to the Judiciary, simply because people have a perceived mistrust about these institutions? I believe that the challenge is for us -
    Mr Second Deputy Speaker 2:10 p.m.
    Hon Member, by way of obvious correction, this is not an alternative; it is an addition, so that you do not mislead us. It is very clear on the face of the document.
    Alhaji Muntaka 2:10 p.m.
    Mr Speaker, the oversight responsibility for public funds are in this House. If you claim that another committee that is not elected can pretend to be representing the people of this country better than us, I see it as an indictment on you and I. They are clearly saying that you and me, they do not have confidence in us to be able to manage this.
    Mr Second Deputy Speaker 2:10 p.m.
    Hon
    Members, please, let us be very careful in the use of words. There are some well- meaning country men and women who have also expressed their views by way of the Christian Council and others. I would not want us to say that such people would want to pretend to be the representatives
    of the people.
    Please, I would wish that we do not use words that will dabble into these confrontational areas. Nobody is pretending to be a true representative of the people. I would not ask for withdrawal but I would say that let us be careful in the use of words; let us proceed.
    Alhaji Muntaka 2:10 p.m.
    Mr Speaker, I am very happy that you said that you are not asking me to withdraw. That is my view. I represent a constituency and I think that this Committee is just trying clearly to say that you and me, who have been legitimately elected by our people cannot represent them in the oversight which has been mandatorily made our duty. That is my view, Mr Speaker. I am sorry that is my view. I may be wrong but that is how I see it.
    What are they going to do differently? If you look at what the Committee is proposing and even the Bill itself is stipulating as their function, are they going to be involved at the drilling point? Are they going to be involved in internal auditing? What else will they be doing that is not being done by this House? If there are issues of capacity and deficiencies in the way our Select Committees work, let us look at them and address them. If we think that there are issues and deficiencies in the way the Auditor-General works, let us look at them and address them.
    We have the Integrated Social Development Centre (ISODEC); we have so and so civil societies which talk from water to electricity, and what have you. They keep talking as civil societies and keep giving all of us, sometimes, very vital information to help our work. Why are we going to put this Committee at the expense of the public purse that they should be paid and even paid allowances? Please.
    The other thing that we need to be careful about in composing this Committee is who represents the public interest? This study was done in Sunyani to represent the northern side; it was done in Takoradi and Accra. Now, we are saying that 83 per cent of the sample. What is the sample size? When it comes to the composition of this Committee, if we are not careful, that is where - Even the paramountcies in the Western Region alone -- If all the paramountcies want representation on this Committee, that is where it will be the beginning of big confusion for us.
    We are the representatives of the people. If there are things that we need to do to strengthen the way we will play our oversight roles, let us do it. If this Committee is going to be formed and not put under the public purse, so be it, so that it will be an independent body; whatever it does, just as ISODEC and what have you, could be a comment that could help Parliament to strengthen its oversight role but not to place this Committee, that it is going to ensure public interest.
    I think this is our role and we must guard it. Just as the Judiciary will guard its work, the Police will guard its work and the Executive will guard their work; we as representatives of the people must guard against our turf. That is why Parliament has grown weaker and weaker. Each time our turf is being encroached upon, we sit and we use, unfortunately, partisan lines and allow it to be encroached and at the end of the day, we all say Parliament is weak.
    When is Parliament going to be strong? The only time Parliament will be strong is when we begin telling people that “Please, this is our terrain, please, stay off”, just as the Judiciary does and the Police does.
    Mr Speaker, another thing which is very, very important to me is, if you look at the Bill talking about 70 per cent
    Mr Second Deputy Speaker 2:10 p.m.
    Hon
    Member, you will be winding up.
    Alhaji Muntaka 2:20 p.m.
    Mr Speaker, the
    items are too many. I think we should restrict ourselves to not more than four areas where we will spend this money and it will make the maximum impact so that generations to come will have confidence
    in politicians.
    It is these things that we do -- thinly spreading and the impact is not seen. That is what is making the people lose confidence in us. Let us restrict it to a few things which are done very well. If it is roads, we make sure that all our districts are linked up. All our basic infrastructure for transportation are linked up, so that by the time the oil finishes, we can say that, “Oh, as for transport, we do not have a problem with transportation.” If it is about health, if it is about education -- let us restrict ourselves to a very narrow area so that we can make maximum impact.
    Mr Speaker, the last thing that I want to talk about, with your greatest indulgence, is the issue of using the money whether for collateral or for security or what have you. Mr Speaker, show me one business that anticipates that next year, it will get this amount of money, yet it will wait till it gets that money to go and use that money. Then that company will collapse before that money comes. Almost every good enterprise anticipates its revenue before going in for a bank loan or whatever facility to enable it to use that money to pay off.
    Mr Speaker, you and I in this very House, did we not mortgage our salaries for means of transport? Many of us had mortgaged even our exgratia against houses. Why? You could wait until the money comes before you go and buy. But the thing is that you cannot - Because it is a guaranteed source of income, you want to use it in anticipation of it.
    Why are we in our individual lives ready to do this but when it comes to our country, we say that “Oh, no, let us allow the trickling, it will just trickle till the bucket gets full before you go and bath,” when you are sure that as it trickles, will the bucket be full? The best is to go in for a bucket of water, go and take your bath and when the bucket gets full, you use it to replace the used one. That is the best way
    to man a country. We do not run a country as if it is, with the greatest respect, some demon or some complex thing.
    Just as we manage our l ives individually everyday, our company everyday, that is the way we should be looking at our country because these moneys are guaranteed. If every year, we can get 100 million, why do we not do use it because now people know that you have specific inflows over a certain period? If you are going to use it, you can get ready money, you invest and then you use those moneys that will be trickling in every year to settle the debt. That is how businesses run. Why are we trying to prevent ourselves?
    I believe that, let us leave it open. With the genuineness that we in this House have, each time those things come, we will look at the relevance of whatever is being sourced, and make sure that it is going to be within the items that we have identified.
    Mr Speaker, knowing very well that other Colleagues will want to contribute, I want to say in just two sentences -
    Mr Second Deputy Speaker 2:20 p.m.
    Hon Member, please, wind up.
    Alhaji Muntaka 2:20 p.m.
    Mr Speaker, I thank you very much for the opportunity.
    Mr Second Deputy Speaker 2:20 p.m.
    Hon Members, I think we have to agree on something, if we want to have a list of ten other Hon Members who want to contribute to go through and so in view of that and since it is agreed that we are closing at 3.00 p.m., let us have five (5) each, so that I do not appear to be the person interrupting anybody. I want the principle to be very, very clear.
    Mr Joe Baidoe-Ansah (NPP - Effia Kwesimintsim) 2:20 p.m.
    Thank you, Mr Speaker, for allowing me to have a say on this Motion.
    Mr Speaker, I would want to say that on the issue of borrowing against the proceeds of oil, listening to arguments whether we should borrow or not, it sounds as if development is no more a process but is an event. If we agree that development is a process and money will trickle in, why should we use what we have to borrow at a cost of an interest?
    Development is a process and it is not an event and so we should behave as such whenever we have resources or revenue coming into our country; we need to ensure that benefits the society.
    It should benefit society at a lower cost than a higher cost. It should not benefit society at a higher cost where interests are involved. That is how I believe we should look at the issue of borrowing and not borrowing against resources.
    Mr Speaker, my other issue has something to do with the Western Region issue. I am very surprised and also very disappointed that we are discussing the Western Region issue, not as a result of a Bill that has been brought by the Executive but as a result of an input petition made by the chiefs of the Western Region. I am saying that I am disappointed because it was a campaign promise by this Government which never found its way into the Bill that the Executive presented to this House. The Executive has really, really disappointed the people of the Western Region.
    Mr Speaker, when politicians want power, what they go round telling people for power, they should deliver when they get power. For us from the Western Region, we feel very naked by the act
    Mr Second Deputy Speaker 2:20 p.m.
    Hon Member, you have two minutes. Please, continue and conclude.
    Mr Avoka 2:20 p.m.
    On a point of order. Mr Speaker, with the greatest respect, I think that the Hon Member is misleading the House. He does not appreciate the essence and the functions of this august House. I stand to correction but experience shows we have rewritten Bills in this House. So if the Executive brings a Bill that we think, in our collective wisdom, we can amend from clause 1 to the end, that is our authority.
    But for him to get up and spend the whole time indicting the Executive as if we have no authority and right to amend the Bill, it means he does not know the
    functions of the august House. He is misleading the House. He is playing politics unnecessarily and should be stopped.
    Mr Baidoe-Ansah 2:20 p.m.
    Mr Speaker, I would wish that it was this House that inserted in our previous Budget that we would provide school uniforms. I wish it came from the Hon Majority Leader and not from the Executive.
    What I am saying is that, when you have a government that goes or people who go out there and campaign and promise people, they have to deliver. That is what this Government had done to the people of the Western Region. They have to delivery. They have made all of us politicians look vulnerable.
    At the moment, we are getting into a realm where people accuse politicians of lying for power and it is as a result of such behaviours, the behaviour that our Executive adopted when they were in Opposition, to promise people that they will deliver to you this or that and at the same forum, when they were promising the Western Region -
    Mr Second Deputy Speaker 2:20 p.m.
    Hon Member, I think at this stage, you will proceed to conclude other than letting us take time over this debate. I do not want this to turn into a debate on that line, so please, conclude.
    Mr Baidoe-Ansah 2:20 p.m.
    Mr Speaker, I would want to put on record this issue in the Tuesday, September 2nd ,2008 issue of The Ghanaian Times. I want to put it on record to end this part of the Executive's promise.
    Mr Speaker, with your permission, let me read just the first part . It was written by Godfred K. Nuanney from Takoradi:
    “The National Democratic Congress running mate for the December polls, John Dramani Mahama, has commenced a campaign tour of the Western Region with a promise to use 10 per cent of the oil revenue to develop the region.”
    Mr Speaker, this is public record and I will give it to the Table Office to keep it as public record.
    Mr Speaker, I will want to ask why --
    rose
    Mr Second Deputy Speaker 2:20 p.m.
    There is a point of order. Hon Member, in view of the line you are pursuing, it is important that if there is a rebuttal or point of order, it is taken.
    Mr James K. Avedzi 2:20 p.m.
    On a point of order. Mr Speaker, the Hon Member is going to an angle that should not be encouraged.
    Mr Speaker, he is actually misleading the House. What he just read did not say that 10 per cent will be ceded to a region, 10 per cent will not be ceded to a region. That is not what he read. Ten per cent will be dedicated for the development of the region.
    Mr Second Deputy Speaker 2:30 p.m.
    Order!
    Mr Baidoe-Ansah 2:30 p.m.
    Mr Speaker, it seems we have not looked at the reasons the chiefs and people of the Western Region are demanding the 10 per cent. The current paradigm of development that we are using, has failed all the areas where
    we produce mineral and resources, That is why we would have people like chiefs leaving their tools behind and coming to Parliament to make an input into this very important Bill.
    Unfortunately, in considering what the chiefs brought to this place, we have decided to make the same mistakes that have led to the chiefs coming to this place to ask us to give 10 per cent to them. What has happened is that, for a long time in this country, since we started extracting minerals or other natural resources -
    Mr Second Deputy Speaker 2:30 p.m.
    Hon Member, I think you can help the House better if you would simply respond to the clear objection made. There are ten regions, a person promises 10 per cent, so that is what he meant. What is your response to that? Say that in one minute and we close.
    Mr Baidoe-Ansah 2:30 p.m.
    Mr Speaker, my response to that is, for a long time, we have been putting all these moneys in one kitty and distributing, and this is what we are still insisting we should go ahead and do; I am saying that that paradigm has failed. The paradigm of development of putting all the moneys in one kitty and asking some people to come and share has failed, it has not worked.
    Why are we not ready? Why are we not prepared as a country to change the paradigm? Because in our own selfish ways -
    Mr Second Deputy Speaker 2:30 p.m.
    So, Hon Member, in conclusion?
    Mr Baidoe-Ansah 2:30 p.m.
    Mr Speaker, in conclusion, I am saying that what the Western Region is asking for is important, we should let them have it, and we should ensure the development of the Western
    Mr Baidoe-Ansah 2:30 p.m.


    Thank you very much, Mr Speaker.

    Dr Ahmed Y. Alhassan (NDC -

    Mion): Thank you very much, Mr Speaker, for the opportunity to support the Motion on the floor.

    I believe that it is a good thing to have the Petroleum Revenue Management Bill and I also believe it tries to set out the principles under which petroleum resources will be spent in the nation's development. I also think that the investment that would be done with the petroleum resources must be carefully done so as to respond to difficulties that the economy has faced in the past.

    I would have thought that at the end of the period, some of the distortions that have visited our economy would be corrected, using the petroleum resources that we are fortunate to have. The investment pattern must not result in further deepening the distortions either spatial or sector wise, in our economy. That is why I think that the petroleum resources that we will be getting should put emphasis on sectors that have been orphaned up to today. And some of the sectors that have been orphaned in terms of resource starvation, I believe, are agriculture, science and technology development.

    Mr Speaker, I can say without fear of any contradiction that no economy will be sustained without being backed by science and technology. So, if we have petroleum resources that we are going to use in investing in our nation and it does

    not take care of science and technology development, I am afraid to say that we may be building all sorts of infrastructure but at the end, our economy will not be sustainable.

    Every strong economy in the world globally is only strong because it is science and technology-base. We have had complaints about weak infrastructure, bad healthcare, roads, housing, agriculture; if all these are not backed by appropriate technology, I am afraid that the systems will not be sustainable. That is why I think that if we have any petroleum resources, some of them must be used to develop an efficient and workable science and technology infrastructure so that the development that we are going to get will be sustainable in the long-run.

    For instance, there is a long-term thinking of having to get electricity from nuclear power. Why are we not thinking about using some of the petroleum resources to invest in research and technology development such that some day, we can take electricity generation from nuclear energy for granted? Currently, all the systems of generating electricity are exhaustible and not sustainable. I believe that some thinking must go into appropriating some of the resources to developing our nuclear energy system for electricity generation in future. I am saying this because there are serious demands on our infrastructure.

    Recently, there have been complaints about Bagri Dam being spilled and the water running without it being harnessed. Why are we not going to use some of our petroleum resources to develop infrastructure that will act as collection points for such water to be held for agricultural purposes into the future? We are not able to do so now because it involves huge financial outlay and if we have money coming from petroleum resources, then definitely, we should use

    that money to build infrastructure to keep such water for the future.

    I put so much emphasis on science and technology because we have had some opportunity that we have missed to help science and technology in this country. We had the Highly Indebted Poor Coutries (HIPC) funds that came in the last couple of years; science hardly had a look into allocation from HIPC funds. We currently have the GETFund that is also being used and there are all sorts of discussions, trying to get science and technology to have an allocation from the GETFund. If we have petroleum resources coming, we should act quickly enough to ensure that science and technology development is taken care of in the use of our petroleum resources.

    There are international best practices that I believe we can copy; Saudi Arabia is one example, Iran, Nigeria, Iraq -- all these countries were weak in terms of science and technology but they used their petroleum resources to the extent that they can even raise a finger against the powers that be when it comes to nuclear energy and other forms of technology development globally.

    I believe that if we are going to use petroleum resources to invest in our nation, science and technology must be adequately taken care of.

    Mr Speaker, my last point that I want

    to raise is that, as I listened to most of the contributions since yesterday, I realised that we have to be careful so that the cost of managing the petroleum resources should be kept as low as possible. There should not be a situation where because we have petroleum resources, we create all manner of institutions to come along and in the process, most of the money is used just to manage the resources, whereas the investment itself is not taken care of

    adequately.

    With these few words, I support the Motion and we should support it as well.

    I thank you very much.
    Mr Kwame A. Twumasi (NPP - Nkoranza South) 2:40 p.m.
    Thank you very much. Mr Speaker, for the opportunity to contribute to the debate on the floor.
    There is no doubt, Mr Speaker, that a lot of energy has been expended in the preparation of the Bill and the Report from your committees. I have had the opportunity of serving on one of the committees and therefore, attending the fora and roundtable conferences on this important Bill.
    Mr Speaker, Ghana is fortunate to have the discovery at this time, to learn from best practices and bad experiences from oil producing countries. It is, therefore, the hope of everybody that Ghana can derive the maximum benefits from the find at this time.
    Mr Speaker, it is not by sheer coincidence or accident that your Committee's Report registers appreciation to individuals and institutions which have supported the Committee in coming out with this important Report. In all these fora and conferences, Ghanaians, and as a matter of fact, outsiders, wished the country well in the path that we are charting for our nation.
    Mr Speaker, the enthusiasm and interest that Ghanaians have exhibited and their involvement in the preparation of the Bill and the Report are overwhelming. This serves as a challenge to the potential implementers and executioners of this Bill which will eventually become an Act to ensure that the proper thing is done

    and what we all crave for, that this find becomes a blessing and not a curse, is realized.

    Mr Speaker, I will want to restrict myself to three areas in the Bill. Clause 7 (2) talks about National Oil Company. In our interactions, Ghanaians want to get the maximum of this natural resource. This can be registered through our local involvement, and there can never be a better way of ensuring that we have maximum local content in this industry without Ghana having a National Oil Company that will take up blocks, that will do exploration, that will do production and do development of the find.

    It is therefore important that we take a second look at our National Oil Company, which is the Ghana National Petroleum Corporation (GNPC). There is the need to structure it if that will call for an amendment of the PNDC Law 64, 1983, that we will provide the needed resources, build the capacity of this company, so that it will be able to rob shoulders with the giants in the oil industry.

    Mr Speaker, if this is done, then Ghanaians can be assured that our own company, like others in Tunisia, Angola, Brazil, China and India, will not only be restricting its operations to the sheers of Ghana but can even venture into the territories of other countries. That is why it is important that, like what was done in 2003 by Hon Kan-Dapaah when he was the Minister in the Ministry of Energy, the re-tooling and re-focusing of the GNPC to restrict its operations to the core assignment given to it, is given a serious consideration.

    Mr Speaker, I will also want to touch

    on the request from the chiefs and people from the Western Region. So much has been said about the 10 per cent demand that they make of the oil revenue. But seriously, the request from the region transcends 10 per cent; they talked about very pertinent issues. They talked about representation on two important committees recommended in the Bill. They also talked about representation on the expected Commission on oil and gas. These need to be given serious consideration and I hope that the Ministries concerned will take these on board.

    Mr Speaker, equally important, they talked about the environment and environmental pollution. The risk to the environment in the oil industry is very common place. It is good that the chiefs have raised this. And in our deliberations as Committee members, the environmental issues kept cropping up and I give credit to the Hon Ranking Member for the Environment, Science and Technology Committee, Prof. Ameyaw- Akumfi, who is knowledgeable in that area and I think we need in the consideration of this Bill, to look at that area as well. This can be dovetailed into my third area of consideration.

    Mr Speaker, there is a silent 51 per cent of the Ghanaian population who needs to be considered in this area. Fortunately, your Committee on Gender and Children had an interface with the women group only last week and they made important submissions to the Committee. They are thinking of mainstreaming gender issues into the Bill. Unfortunately, Mr Speaker, this appears a little belated but I think that as a House, when it comes to the Consideration Stage, we may have to look at which ‘areas' we can factor the concerns of this 51 per cent of the population.

    I am saying this because, Mr Speaker, if you look at our womenfolk, anything negative associated -
    Mr Second Deputy Speaker 2:40 p.m.
    Hon Member, you will be concluding because of the time.
    Mr Twumasi 2:40 p.m.
    In concluding, Mr Speaker, anything negative impacts more seriously on our womenfolk and children than on the males. Equally, when it comes to employment, Ghana must set a pace in the training and equipping of our womenfolk to be engaged and employed in this male dominated and industry -
    Mr Second Deputy Speaker 2:40 p.m.
    In conclusion -
    Mr Twumasi 2:40 p.m.
    In conclusion, thank you, Mr Speaker.
    Mr Haruna H. Bayirga (PNC - Sissala West) 2:50 p.m.
    Thank you, Mr Speaker, for giving me this opportunity to contribute to the management of the Oil Revenue Bill.
    Mr Speaker, I want to refer to the Western Region's demand and to say that as Ghanaians, we must be very, very careful. It seems too much hope is being put on the oil revenue and if we are not careful, somewhere along the line, we would be disappointed. It is also very, very true that when you look at the least developed areas in the country, the Western Region is one of them. So definitely, the Western Region has a special case.
    But what I would want to say is that if their demand of 10 per cent should be yielded to and something happens and oil does not flow, what happens to the development of the Western Region? I am of the view that, the Executive has to come out strongly with something to help the Western Region. The Executive,
    Mr Second Deputy Speaker 2:50 p.m.
    And in conclusion --
    Mr Bayirga 2:50 p.m.
    Mr Speaker, I will conclude now. I want to say that if there is some fund that would be allocated to a region, they must make sure that the money is there and they should release that money to develop that area. About the Executive and Parliament -- We also have to put our oversight responsibility and force the Executive to release the moneys. It seems we are always sitting down because -- [Interruption.] They will sack who?
    Mr Second Deputy Speaker 2:50 p.m.
    Order! Let the Hon Member conclude.
    Mr Bayirga 2:50 p.m.
    Mr Speaker, I think with this, I am done.
    Mr Second Deputy Speaker 2:50 p.m.
    Thank you very much. Hon K. T. Hammond; and you are reminded it is five minutes.
    Mr Kobina T. Hammond (NPP -- Adansi-Asokwa) 2:50 p.m.
    Mr Speaker, my Colleague just suggested -
    Mr Second Deputy Speaker 2:50 p.m.
    Hon K. T. Hammond, just go on and address me.
    Mr Hammond 2:50 p.m.
    Mr Speaker, I will negotiate with you for tomorrow if it is possible.
    Mr Second Deputy Speaker 2:50 p.m.
    Hon K. T. Hammond, you will address me.
    Mr Hammond 2:50 p.m.
    Mr Speaker, I am happy to also contribute to this Motion.
    Now, let me make a point. Once upon a time, when on this very floor, an announcement was made that there had been discovery of oil in commercial quantities, a group of people then Sitting here suggested that it was dirty oil from Suame. [Laughter.] Mr Speaker, some of the people are now Sitting on that side of the House, and now pontificating to us -
    Mr Second Deputy Speaker 2:50 p.m.
    Hon K. T. Hammond, you mean Hon Members of this Honourable House, not some people?
    Mr Hammond 2:50 p.m.
    I think I erred in that respect. Yes, the Hon Members, now on that side of the House and telling us what to make of the dirty oil. But Mr Speaker, as I said, that was once upon a time.
    Mr Second Deputy Speaker 2:50 p.m.
    Order! Order!
    Mr Hammond 2:50 p.m.
    Revenue, revenue, revenue; we do know that there is a serious matter of some US$5 million relating to the Floating Production Storage Programme (FPSO). Mr Speaker, the FPSO is what is going to contain all the oil that we are talking about. There is this World Bank thing that has suspended work on the FPSO. Where are we going to put this drilled oil? Is this whole production thing on course or it is not on course? So what is all this business of money, money,
    Mr Second Deputy Speaker 2:50 p.m.
    Hon K. T. Hammond, there is a point of order and a point of order would be admitted once arguments veer to certain areas.
    rose
    Mr Second Deputy Speaker 2:50 p.m.
    Hon Member, do you stand on a point of order?
    Some Hon Members 2:50 p.m.
    No, no, no, no.
    Mr James K. Avedzi 2:50 p.m.
    Thank you, Mr Speaker.
    Mr Speaker, the Hon Member made a statement earlier that some Members of Parliament said that it was dirty oil and I stood on a point of order and I wanted to say that in fact, I have not seen crude oil before. And if there is no difference between crude oil and dirty oil and something was in a bottle and brought to this House, definitely, I would conclude that it is dirty oil --
    Mr Second Deputy Speaker 2:50 p.m.
    Hon Member, you cannot conclude that when -- the bottle did not just appear; it came
    with a Statement and the Statement was that it was oil. So, please, let us continue seriously.
    Hon K. T. Hammond, you may continue.
    Mr Hammond 2:50 p.m.
    Mr Speaker, that is the point. If you do not know -
    Mr Second Deputy Speaker 2:50 p.m.
    Hon K. T. Hammond, continue with your argument.
    Mr Hammond 3 p.m.
    I will continue, Mr Speaker. Next time when you show your oil, do not tell me it is --
    Mr Speaker, there is also this argument about development, development, development with the oil money. Mr Speaker, if you look at the Bill, and the Bill conspicuously by clause 22 (3) it says specifically
    “Unless otherwise directed by the national development plan --”
    Mr Speaker, we do not have a national development plan and yet we have all these indications of what we are going to do with the money. I am very concerned about where we are heading towards; that is why there was so much argument about whether we suspend this and wait for all the incidentals to be completed before we go on. It has not been agreed and we are doing something that we should have done to start with, Mr Speaker and I find some very, very serious difficulties with where we are starting from.
    But let met develop a few points. I would deal first with the Advisory Committee that they want to set up. The Advisory Committee, the oversight one, the clauses 53, 54 (1). Mr Speaker, we should look at it carefully. Hon Muntaka made quite a lot of interesting points. Mr Speaker, I think we should listen carefully. But what is even serious, Mr Speaker, in that context -- what is here is this, that there is going to be an 11-member

    committee.

    Now, out of the 11, there should be a quorum of seven and of the quorum of seven, the decision of the majority, which is by implication four, is binding on the whole of Ghana. Four people going to decide for the whole of the country with respect to this particular distribution of money? Mr Speaker, I find that pretty disturbing. I know Mr Speaker's view about it; Mr Speaker's intervention when Hon Muntaka made his point. But that is the way that I see it. I find it extremely disturbing.

    On the question of clause 5, Mr

    Speaker, I would not today make my points on the collaterisation. I would hold my fire because, as it is, we do not seem to have any amendment. What is here is that there is certain extent to which oil money is prohibited from being used. That is here. I said that I support it as it is captured here. Any attempt by anybody to change clause 5, will draw considerable cataclysmic fire in this House.
    Mr Second Deputy Speaker 3 p.m.
    Thank
    you very much, Hon Member, for your contribution.
    Mr Hammond 3 p.m.
    Na menwie e. Me
    Mr Second Deputy Speaker 3 p.m.
    Thank
    you, very much, Hon K. T. Hammond.
    The next contributor is Hon Bandua.
    Mr Emmanuel K. Bandua (NDC -
    Biakoye): Mr Speaker, thank you for the opportunity to add a few words to this Bill.
    Indeed, a lot of things have been said but I would say that this is generally a very good Bill with sufficient safeguards to ensure that the moneys that we will reap out of this oil revenue are properly utilised. But my main concern is with clause 23, which seems to be too over-protective of the oil revenue. Indeed, I think that -
    Mr First Deputy Speaker 3 p.m.
    Too over protective?
    Mr Bandua 3 p.m.
    Yes, of the oil revenue.
    Mr Second Deputy Speaker 3 p.m.
    I see.
    Mr Bandua 3 p.m.
    I think it should be
    sufficiently flexible to allow us to use the revenue, particularly during this initial stages to be able to invest in other areas to enable us generate more money for the present and for the future generations. That is my main problem. Otherwise, I think that sufficient provisions have been made in the Bill to ensure that there is money that will be left even after the oil is exhausted, so that future generations will not be deprived of the benefits of this oil revenue that we have discovered.
    I also urge that indeed, part of this
    revenue should be invested in other sectors. We should not concentrate too much on the oil revenue. And we should be wary of raising the expectation of people too high. Because if you raise expectations too high, we may end up being disappointed.
    We should also ensure that we invest in other areas, particularly in agriculture. In fact, the mainstay of the economy has been agriculture. And I do not think that with the discovery of oil, we should downgrade investment in agriculture and other areas to second positions. We should handle them all as equally important to ensure that, at least, as we look at the oil revenue, other sectors would also come up to support the oil revenue.
    A lot of the money, I believe, should be invested in agriculture. In this connection, we should look at other areas like Takoradi, where they have a lot problems with infrastructure. I believe that if a lot of the money is earmarked in the Budget, where part of the oil revenue would go to support and provision is made sufficiently for other areas, which are deprived, like the Western Region, and if they are assured that in the Budget, provision will be made for them to enable them develop their infrastructure, to develop the roads that are so bad in
    those areas, I do not think they will be too anxious in getting a portion of the money earmarked for them. I think their fear is that, if this money is earned, they will not be sufficiently catered for.
    I believe that a lot has been said, I do not want to bore the House with other things which have been said over and over again. So, with these few words, I thank Mr Speaker for the opportunity to make this short contribution to the Motion.
    Thank you very much, Mr Speaker.
    Mr Second Deputy Speaker 3 p.m.
    Thank you, Hon Member.
    The last contribution will come from Hon Beatrice B. Boateng.
    Ms Beatrice B. Boateng (NPP - New Juaben South) 3 p.m.
    Mr Speaker, thank you for the opportunity for me to add my voice to the Motion on the floor.
    Mr Speaker, I believe that this discussion has gone on for some time. I think it is very necessary because people who already have oil in their countries have been described variously, at times, as a curse and at times as a blessing. And for the fact that we would not want ours to be addressed as a curse, because it is not good enough, hence, we are taking time to go through all these processes.
    Mr Speaker, I was going through some of the documents on this issue, and I read through the report of the public forum and I realised that there was a good introduction to why the public forum was conducted. And I beg to read a bit of it.
    “Introduction - The discovery of oil often brings about dreams and high expectations of wealth and prosperity, especially for developing countries. However, in all too many cases, these discoveries have often
    become a source of great waste, corruption, conflicts and setbacks. This is the phenomenon of the resource curse. Best international practice is that, disciplined, well- planned and transparent use and management of the revenues should guard against this curse.”
    I think it is for this reason and others, that the public forum was organised. I also believe that we are the representatives of the public, but it does not mean that our wisdom and our views about everything take conginisance of that of the entire public out there. If this is why we had the public forum, then I think it is perfect.
    Again, if you go to the memorandum to the Petroleum Revenue Management Bill, clause 5, this is where I want to base my discussion on: “Prohibited use of Petroleum Account”. I think it has been stated and I quote:
    “The assets of the Petroleum Accounts shall not be used --
    (a) t o p rov ide c red i t t o the government, public enterprises, private sector entities or any other person or entity; and
    (b) as collateral for debts, guarantees, commitments or other liabilities of any other entity.”
    I believe that we have these in our minds. Then again, in the public forum, something was also said and I believe these are all fresh in our minds. But then as much as I want to congratulate the joint Committee on what they have done, I read something that makes me sound a bit of caution that on management of the fund, this is what the public also said, and I quote:
    “Between 70 and 80 per cent of correspondents prefer the government refrains from borrowing against future oil revenue streams or
    Ms Beatrice B. Boateng (NPP - New Juaben South) 3:10 p.m.
    We all know, from our mathematics, that 70 and 80 per cent are the majority and that we should listen to them. As a result, I think with the joint Committee's Report, I have read very good things. But there is a clause that worries me and I want to caution that pending what the public has said and what we have in our memorandum, there is this thing, let me quote:
    “Some Members also argued that given the infrastructural deficit of the country, government should be permitted to use petroleum revenue as collateral against government borrowing for a period of ten years, subject to review as done with cocoa.”

    Mr Speaker, this is where I have a problem. The question is, what contains in here, how did it come? What the public said, how did that come? And how come that we have gone round to say this time given an impression that that thing should be amended? I think we should take a cue and do the right thing. I believe that is going to help us.

    Mr Speaker, I want to also talk about the public interest in accountability. I think that also is explicitly raised here in the memorandum, likewise that of the public. But when you come to that of the joint Committee, there is something that they have said. I think their only problem is with a sentence. Let me read page (9), paragraph (4) -
    Mr Second Deputy Speaker 3:10 p.m.
    Hon Member, you would be concluding.
    Ms Boateng 3:10 p.m.
    Yes, Mr Speaker.
    The third school of thought, however,
    held the view that the Public Interest and Accountability Committee (PIAC) is necessary but its mandate should only be advisory and that their decisions should not be binding. If this is the worry, we do not have too much qualms about it. It could be deleted. But the establishment of the PIAC is very important because the public forms the bulk of the majority and they should be allowed to have a say in whatever we are going to do about this oil, so that it does not turn out to be a curse onto us.
    Finally, Mr Speaker, let me also talk about the gender aspect of it. I think that not much has been said in this Report, but as my Hon Colleague said early on, when it comes to the Consideration Stage, I would want to plead that we should have time and think of the gender aspect of the oil, because men here would agree that the inclusion of women in Parliament is making a big headway.
    Likewise, in the oil, if we are brought in, it would as well make a big headway. So I believe that we would take this into consideration and then do something about it. If it is taken, we would make further contributions toward that.
    Thank you, Mr Speaker, for the honour given me.
    Mr Second Deputy Speaker 3:10 p.m.
    Thank you very much Hon Member.
    This actually brings the debate to a close for today and then we would continue with it tomorrow, from indications I have from Leadership. And if Leadership has anything else to say, they may do so at this stage, otherwise, I will adjourn the House.
    Hon Majority Leader, your pleasure.
    Mr Avoka 3:10 p.m.
    Mr Speaker, before you adjourn the House, I want to inform Hon Colleagues that those of us who are minded to file amendments in respect of this Bill, should give their amendments to the Clerks-at-the-Table so that they can appear on the Order Paper. Those of
    us who are minded to file amendments should do so now and then give a copy to the Chairman of the Committee, so that they would know whether they can synchronize with their amendments or not. And I want to inform further that tomorrow afternoon, the winnowing committee would commence work on the amendments filed so far.
    Indeed, Mr Speaker, about hundred amendments have been filed by the Committee and that calls for a lot of work to be done and it is our expectation that by Friday, we should have the Third Reading of this Bill, so that on Monday we would take the Budget unfettered. So it is important that we keep to time on the agenda.
    Mr Second Deputy Speaker 3:10 p.m.
    Thank you very much, Hon Majority Leader.
    Hon Minority Leader?
    Mr Kyei-Mensah-Bonsu 3:10 p.m.
    Mr Speaker, I think the Majority Leader has said it all. Because of the limited space that we have, we would entreat Hon Colleagues who may be proposing amendments to make them ready and possibly even submit them to the Table Office this evening. So tomorrow, when we conclude the debate, not long thereafter, we can step out and start the winnowing, because there are so many of them. I understand about 96 from the Committee itself. My information is that the Hon Boafo already has 37. That added to it, we are hitting the range of about 150 amendments. The Hon K. T. Hammond indicates to me that he has about seven already. So Mr Speaker, it would be a tall order.
    So we entreat Hon Members, those of them who have their amendments ready to submit them, so that tomorrow when we
    start with the winnowing, we can begin to do the reconciliation to enable us, latesst by Thursday, start with the Consideration Stage. And of course, that may mean that Thursday would involve a lot of work - Thursday, Friday.
    Mr Speaker, so, as I said, I fully support what the Majority Leader has said.
    Mr Second Deputy Speaker 3:10 p.m.
    Thank you very much.
    Hon Members, in the circumstances, the House would stand adjourned till tomorrow at 10.00 o'clock in the forenoon.
    ADJOURNMENT 3:10 p.m.
  • The House was adjourned at 2.16 p.m. till Wednesday, 24th November, 2010 at 10.00 a.m.