Debates of 21 Dec 2010

MADAM SPEAKER
PRAYERS 10:55 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:55 a.m.
Madam Speaker 10:55 a.m.
Hon Members, Correction of Votes and Proceedings of Monday, 20th December, 2010.
Page 1 . . . 18.
Mr Asamoah Ofosu 10:55 a.m.
Madam Speaker, yesterday, I was in the Chamber but I have been marked absent as number 27 on the Absent list; if it could be corrected.
Madam Speaker 10:55 a.m.
That is page 6, is it?
Mr Ofosu 10:55 a.m.
No, my name is on page 6 as being absent.
Madam Speaker 10:55 a.m.
Your name is not listed?
Mr Ofosu 10:55 a.m.
No, my name is not listed as present.
Madam Speaker 10:55 a.m.
The name is -
Mr Ofosu 10:55 a.m.
My name is Ofosu Asamoah, Member of Parliament for Kade, number 27.
Madam Speaker 10:55 a.m.
Noted.
Mr William O. Boafo 10:55 a.m.
Madam Speaker, page 13, paragraph 18, with regard to this particular clause, we have not been told what happened, whether the Question was proposed or the amendment

was withdrawn; we are not told.
Madam Speaker 10:55 a.m.
They did not state it?
What happened? Were you here?
Mr Boafo 10:55 a.m.
I was here, Madam Speaker. But I believe the Clerks would be in a better position to know.
Madam Speaker 10:55 a.m.
Was the Question put?
Mr Boafo 10:55 a.m.
Madam Speaker, I do not have my previous --
Madam Speaker 10:55 a.m.
All right, we will check this up then and correct it accordingly.
Mr Boafo 10:55 a.m.
Madam Speaker, page 18, paragraph (d), it should read “to be guided”.
Madam Speaker 10:55 a.m.
The Votes and Proceedings of Monday, 20th December, 2010 as corrected, is adopted as the true record of proceedings.
Hon Members, there is no Official Report today; no Statements. So we move on to item numbered 4, Commencement of Public Business.
PAPERS 11:05 a.m.
Madam Speaker 11:05 a.m.
Yes, Leader, we
have finished with item 4 now.
Mr Avoka 11:05 a.m.
Madam Speaker, we would have started with Motion numbered 7. Both the Minister for Finance and Economic Planning and his Deputy are in your Conference Room going through some reports. We would have sent to invite the Hon Minister to come, or his Deputy, so that we can take Motion numbers 7 and 8 but it appears that almost all the matters are of financial nature concerning the Minister for Finance and Economic Planning. So we sent to request them to come here from the Speaker's Conference Room - [Pause.]
Madam Speaker, I am sorry to say this. Yesterday, when the family of the late Clend Sowu called on your goodself and Leadership, the Hon Member of Parliament for the area presented a Statement through the First Deputy Speaker. It does not appear your attention has been drawn to it or you have read it. But I thought that we would have filled the vacuum by taking that Statement this morning, while we wait for the Minister for Finance and Economic Planning to come from your Conference Room.
Madam Speaker 11:05 a.m.
Yes, we could do that. Where is the Statement? I have not even seen it. If I can see the Statement?
Yes, Hon Humado, you may read.
STATEMENTS 11:05 a.m.
Mr Clement K. Humado (NDC -- Anlo) 11:05 a.m.
Thank you, Madam Speaker, for the opportunity to make a Statement in memory of the late Hon Sqn Ldr Clend Sowu.
Madam Speaker, indeed, Hon Clend Sowu was the first Member of Parliament for Anlo Constituency at the onset of the Fourth Republic after years of PNDC rule.

He served two terms in this very House from 1993 to 1996 and again from 1997 to 2000.

Madam Speaker, it is with extreme grief and sorrow that I make this Statement and tribute in memory of my predecessor and former Member of Parliament for Anlo Constituency, the late Hon Squadron Leader Clend Sowu (retd). He sadly passed away on Saturday, 4th December, 2010 at his residence in East Legon, Accra and was said to have died in his sleep following weeks of poor health.

Madam Speaker, the late Hon Clend Sowu was an engineer by profession. He began his educational career from Kumasi where he attended the Basel Primary School up to 1942. He then moved to Keta to attend the Roman Catholic Boarding School from 1943 to 1949.

While at Keta, he sat and passed his examinations and gained admission into Mfantsipim Secondary School at Cape Coast where he studied for his Ordinary Level Certificate from 1950 to 1955. From 1956 to 1958, he became a student apprentice at the Electrical Research Association in Leatherhead, Surrey in the United Kingdom. From 1958 to 1962, he attended the Battersea College of Technology, London University.

With an eye on becoming a plane pilot, he sat for and gained admission into the Cranfield College of Aeronautics, Bedfordshire in the UK from 1966 to 1968. He then pursued further education at the Harvard University, HIID at Massa- chusetts, USA where he graduated with a BSc. in Engineering in 1985.

Professional Life

Madam Speaker, the late Hon Member served his country well as a professional and a politician. He joined the Ghana

Armed Forces Air Force Division in 1962 and by dint of hardwork retired in 1973 at the rank of a Squadron Leader.

In 1973, he joined the Management Development and Productivity Institute (MDPI) as a Chief Consultant, responsible for Industrial Engineering and Produc- tivity as well as designing and running management development training courses. He was also a Board member of the Building and Road Research Institute (BRRI) of the Council for Scientific and Industrial Research (CSIR).

From 1982 to 1985, he was seconded from the MDPI to work with the Government of the Provisional National Defence Council (PNDC) in various capacities. He was made, the Managing Director of the State Farms, during which period he chaired the Committee on Ghana's Decentralisation and was also a member of the Economic Recovery Team.

Political Life

Madam Speaker, the late Hon Member started his political career in 1989 as an Assembly member and later became the Presiding member of the Keta District Assembly as it was known in those days. ln 1992, he ran on the ticket of the NDC Party and became the first Member of Parliament for Anlo Constituency in the Fourth Republic, a position he occupied for two terms up to the year 2000.

During his tenure of office, he was an outspoken Member of Parliament and occupied various positions on the committees of Parliament. He was the Chairman of the Environment, Science and Technology Select Committee from 1996 to 2000, a member of the Committee on Selection, a member of the Finance Standing Committee and a member of the Committee on Works and Housing.

Madam Speaker, we in the constituency know him as a strong, no nonsense man and he will be remembered by the

people of Anlo Constituency for his hardwork, forthrightness on issues, his great commitment and dedication to the Party despite several adversities.

Until his death at the age of 78, the former Hon Member was a staunch member of the ruling National Democratic Congress (NDC) Party, and a Board Chairman of the Electricity Company of Ghana.

During his tenure as a Member of Parliament, he was appointed Minister for Works and Housing under the Presidency of Flt-Lt Jerry John Rawlings, during which period, he assisted in the com- mencement of the Keta Sea Defence Project and the construction of tarred roads from Dabala to Keta.

He also assisted in the construction of the south-eastern water project with a treatment plant at Agordomi which now supplies drinking water to most communities in the Anlo and Keta constituencies.

The late Squadron Leader Sowu was someone who served his country very well. He was knowledgeable, forthright, fair and objective. He was also a social commentator and one who fought for what he believed in until the very end.

His character was distinct and fulfilled a role that the Maker had for him. He added to the diversity of human characters and left distinct footprints in the sands of time. He believed in what the ordinary Ghanaian would say “give and take” and ordinarily, he would always come round the next day at the slightest indication of reconciliation.

Madam Speaker, on behalf of the House, I wish the soul of Hon Clend Sowu a perfect rest in the arms of the Lord Almighty.

Madam Speaker, funeral arrangements have been planned for the 14th to 15th January, 2011 and Hon Members will be informed of the details in due course.

He left behind his lovely German wife, sons and daughters.

I wish to take this opportunity to invite all Members of Parliament and the entire Parliamentary Service to his funeral.

May his soul rest in perfect peace.

I thank you, Madam Speaker, for the opportunity.
Mr Albert Kan-Dapaah (NPP - Afigya-Sekyere West) 11:15 a.m.
Madam Speaker, we did not belong to the same political party and indeed, we had different political philosophies. But on a number of issues, I could agree with him and I believe and can say that the late Hon Brother was a good Friend of mine.
Madam Speaker, I had tremendous respect for him and his views. He had -- very strong views on a number of issues. But these were not views hastily formed; they were normally the result of a number of hours that he would have spent reflecting on these issues and also based on extensive research on the Internet and relevant literature. He had a very strong educational background as recounted by Hon Humado, although he would not normally boast with these educational achievements, and I am sure most Hon Members would have been surprised to hear all the qualifications that he had.
Madam Speaker, I was in Liberia when news of the sudden death of Hon Sowu reached us. I was with a number of Ghanaians at a hotel in Monrovia and the news came to us. Among us was, a lady who was a relative of the late Hon Friend of ours.
Mr Gershon K. B. Gbediame (NDC - Nkwanta South) 11:25 a.m.
Madam Speaker, I also rise to associate myself with the Statement and to use this opportunity to express our condolence to the bereaved family.
Madam Speaker, in 1997 when I joined Parliament, Hon Clend Sowu was then in his second term having started in 1993. As was said about him by the Hon Member who last spoke, some of us took inspiration and learnt a number of lessons from him.
Madam Speaker, when issues arose concerning the Constitution, he was bold to say he was a member of the Consultative Assembly and he gave the
background to how come that decision was arrived at because he took part in the debate resulting in the formulation of the Constitution.
Madam Speaker, I remember very well, when an issue of what we call today, the MPs' Common Fund came about. When we came to Parliament, that is, the Second Parliament of the Fourth Republic, there was nothing like the MPs' Common Fund. We were just to approve the formula and 10 per cent of the reserve fund, which is normally distributed to the District Assemblies by a formula was reserved for contingencies.
When we were approving this formula, at a point in time, he made a suggestion that it did not make sense for us to keep the 10 per cent Contingency Fund in Accra because when in our various consti- tuencies, there was any disaster, the MP would be the first point of call. He would be called upon to come to apply for it in Accra.
So he suggested that 50 per cent of that 10 per cent should be shared among the various MPs as the MPs' Common Fund, so that when there was any emergency, we could fall on that to address the situation. And when we debated on it, we all unanimously agreed that there was sense in what he said. That was the beginning of what we know today as the MPs' Common Fund.
I say this to his credit, though today he is no more with us. I think it is a very good legacy. It helps us to attend to the immediate contingencies in our constituencies.
Madam Speaker, as the maker of the Statement said, Hon Sowu was a man who always spoke his mind and anytime he got to contribute, the Majority Leader who was in-charge of business then was not very sure of the direction in which he was going because he could always speak
his mind even if it was to be against the Government's stand.
He was also a man who normally did a lot of research and spoke on authority because of the information he had gathered. Hon Sowu contributed his part to this democracy. I will at this point recommend to our new Members of Parliament to go through the Hansards and see some of his contributions - there is a lot we can learn from his contributions on this floor.
Madam Speaker, I know his role in the organization of party politics. He was a man who would input every data into his computer and come out with the result and he would give you the breakdown of the results from constituency to constituency and tell you how much - the votes you are losing, the percentage and try to adduce reasons for losing those votes. He was a man who actually was well respected even in our party circles. We have lost a great man. It is our prayer that the marks he has left behind would be examples for us to follow.
Madam Speaker, before I take my seat, let me just say that every morning, on “City FM”, there is a religious programme which I also enjoy listening to, that is, Bishop of the Airwaves by Yenusa Wengam and when I am listening to it, he would phone in and make his view known. He is a man who was well respected by his views even on this programme. For those of us who are listeners to that programme, we have lost somebody.
On this note, once again, I say our condolences to the bereaved family. They should rest assured that during the funeral, we shall be there to give them the necessary support.
Madam Speaker 11:25 a.m.
Thank you very much. I do not think we should spend too much time -
rose
Madam Speaker 11:25 a.m.
Yes, Leader, were you going to contribute? All right.
Mr Cletus A. Avoka 11:25 a.m.
I will make it short for that matter. Madam Speaker, with your kind indulgence, the Hon Member for Garu/Tempane and the Hon Minority Leader would want to say something and then even though officially, there is no winding up, I will then come in. I do not know. It is subject to your discretion.
Madam Speaker 11:25 a.m.
Yes, I beg your pardon.
Mr Avoka 11:25 a.m.
I was saying that one of the Senior Members of Parliament, he and me started with the late Hon Sowu, Hon Dominic Azumah and the Hon Minority Leader would want to say something. I do not know whether it is in order that they talk and I -
Madam Speaker 11:25 a.m.
So let us have five minutes because we have so much to do.
Mr Avoka 11:25 a.m.
For each of them? Very well.
Mr Dominic A. Azumah (NDC - Garu/Tempane) 11:35 a.m.
Madam Speaker, I rise to make a few comments in memory of Engineer Clend Sowu, whom I first met in the Consultative Assembly when we were drafting the 1992 Constitution.
Madam Speaker, Mr Clend Sowu, on meeting him anywhere, you would first have the impression, and rightly so, that he is a disciplined man. In 1992 and for all the period we were in this Consultative Assembly, never for a day did Clend Sowu miss Sitting or come in late. It was never recorded. He had some kind of military discipline in him. Indeed, in the Consultative
Assembly, if for today District Assemblies are benefitting from the Common Fund, it was through the initiative of the late Sowu and Hon Sallas- Mensah who initiated the move to introduce the District Assemblies Common Fund into our Constitution in 1992. I think that he deserves credit for that.
Sowu being a Member of Parliament and chairing committees in this House, Madam Speaker, was upright; no matter the situation Sowu would say it as it is. He will never compromise for the purpose of political convenience. He will say it and say it forcefully.
Sowu can be remembered for his calculations. In every bit of life, Sowu was always with his calculator and he wanted things done methodically that there was no way you could have a fault with what he was going to arrive at.
11.37 a.m. -- MR FIRST DEPUTY SPEAKER
Mr Azumah 11:35 a.m.
In the formulation of the District Assembies Common Fund formula, Sowu was the first fellow with Atto Ampiah to come out with the draft formula for us to take a look at. Indeed, he was a great man who we have lost. Sowu is a big loss to Parliament, a big loss to the NDC, a big loss to the family and for that matter, a big loss to the whole of this country, Ghana.
I can only say that may he rest in perfect peace.
Indeed, Sowu's funeral should be attended by all and all Members of this House when it is announced to us.
Once again, Mr Speaker, may the soul of Clend Sowu rest in perfect peace.
Thank you so much. Minority Leader (Mr Osei Kyei-
Mensah-Bonsu): Mr Speaker, I also rise to associate myself with the sentiment expressed by the Colleague who made the Statement in memory of our departed Colleague, the Hon Clend Sowu, Sqr. Leader (retd).
I met the late Hon Member in Parliament in 1997. In particular, I served on the same
committee, the Committee on Works and Housing with the Hon departed Colleague of ours. He himself had earlier in his life been a Secretary for Works and Housing in the PNDC regime. So, he came to the Committee with a wealth of knowledge and practical experience to share with members of the Committee.
Our departed Colleague, as we have been told was one who loved intelligent debates in the House. He was a very diligent Member of Parliament himself. He was very scrutinous and he was always very forthright, at least, to the best of his ability. His contributions, without doubt, expanded the horizon of our parliamentary democracy.
He was a man imbued with immense knowledge and profound native wisdom and that affected his contributions in the House. On many occasions, he dispersed his arguments with proverbs in his native language, which he was always on hand to translate to some of us who were very deficient in his own native language.
He was a man who had infectious sincerity and was very passionate and committed to any cause that he applied himself and to that extent when he lost his seat, in 2000, some of us thought it was a very unfortunate event.
The Colleague who we mourn today, had very retentive memory where he often dived to retrieve relevant information to serve the cause of this House. And he, himself was a clearing house of information.
When he lost his seat in Parliament, he never lost contact with Parliament. He called every now and then to offer suggestions to improve parliamentary business and indeed, parliamentary discourse. On the sidelines, he would call to critique one's contributions or to add a few spices to what wealth of information that a person had so as to further enrich dialogue in Parliament.
Mr Speaker, I believe Parliament and indeed, Ghana, has lost a man of immense talent. We console his family, in particular
the immediate family and hope that this Parliament may chance upon a person who measures up to the calibre of the great Hon Colleague that we mourn today.
May his soul rest in perfect peace.
Mr Speaker, I thank you.
Majority Leader (Mr Cletus A. Avoka) 11:35 a.m.
Mr Speaker, let me join my Colleagues in paying this tribute to the late Hon Squadron Leader, Engineer Clend Sowu. Those of us who knew him well, knew that he appreciated these titles: “Honourable”, the “Engineer” and “Squadron Leader” Sowu (retd). I got to know him in August 1991 when we were both in the Consultative Assembly. Given his background, he did a lot to shape the Constitution that we now use today.
Then in 1992, he contested elections and we met here in the First Parliament of the Fourth Republic of Ghana. Among the lot of us, he was one of the elite persons the then President J. J. Rawlings named as Minister for Works and Housing.
Mr Speaker, the late Sowu belonged to three disciplines or professions. He was a professional engineer, a professional soldier and an astute politician; three professions. Those of us who knew him very well, and who were quite close to him can say without contradiction that in these three professions that Sowu found himself or served, he exhibited competence, bravery, courage and incorruptibility.
He was forthright irrespective of the political divide in which the issue was being raised. He was committed to fair play and in these offices that Sowu found himself, anybody who came near him discovered that even though he had very strong views about various issues, he was humble, and he was somebody you could trust. If there was a matter that he even disagreed with you and you were able to
Majority Leader (Mr Cletus A. Avoka) 11:45 a.m.
convince him, he appreciated it.
Hon Kan-Dapaah said, that Sowu was a very good debater. I agree entirely with him. Not only was he a very good debater, he was an intelligent debater; he was resourceful, he did research, he was well informed and whatever he said, he had evidence to back it. So, it was difficult on the floor of this House to fault Sowu through points of order.
At the end of the day, you would realize that, in fact, you were rather out of order because he would go to the archives and bring the material to support or back what he said. So, he was a role model for some of us who were new in Parliament; he was a role model for those who were in the Executive as well. And if many Ghanaians can emulate the example of the late Sowu, his forthrightness, his honesty and at the end of the day, his humility, Ghana would be better of than we find ourselves.

Mr Speaker, he was a meticulous Member of Parliament and I am happy to note that as even far back as 1993, Sowu was IT compliant. Anytime that we were doing Budget Estimates, Sowu will have everything analysed in the computer and then come out with figures and details and correct everybody, yes. He was a resourceful person for this Parliament and he was somebody we could depend on even if he was alone on a subject matter. He was very upright.

But one good thing I liked about him was the fact that even though he left Parliament in 2000 -- he did not come back to the 200l Parliament -- Sowu still kept faith with this Parliament and Members of Parliament. He occasionally passed through to find out what we

were doing and anybody he met outside Parliament, he tried to find out what we were doing.

Sowu was a a contributor to FM station debates. Sometimes you will be in your house and by the time you may open your wireless, Sowu will be discussing an important matter or has called in to correct an impression being created about certain issues in the country. He was an asset to this country.

Sowu is no more and it is not only the people of Anlo who have lost him, it is not only the Volta Region that has lost him but mother Ghana and humanity have lost him. I know that the only good thing we can do to the legacy that Sowu has left behind, whatever legacy, so that Sowu can have eternal rest, is for us to say Ghana first and any other thing second. That was the commitment of Sowu.

He was hardworking, he was dedicated and very committed to national issues more than even his personal issues and no wonder he had a very graceful death. I understand that he even went for a function and came back and went to bed and the following day they found Sowu dead. Sowu did not go through the ordeal of suffering and I think that God rewarded him by having him have a peaceful death.

On behalf of this august House and all of us who are politicians, who are in this august House, I wish the family well; I pray that Sowu will have eternal rest and then I pray that those of us who are alive and in active politics, will emulate his example.

I thank you so much. Mr Hackman Owusu-Agyemang

(NPP -- New Juaben North): Mr Speaker, I thank you most sincerely for this exceptional grace to me, especially having spoken after the Leaders. I am sorry I sprained my legs and I had to go and see the doctor. But I would not have felt comfortable if I did not say anything about this great gentleman.

I first met him, Mr Speaker, when I was Ambassador of the United Nations (UN) in Zambia. He came there as Secretary for Works and Housing and we talked a lot about housing when he met the Ghanaian community and whatever question we put to him, he tried to answer. Where he could not answer, he said, “yes, this is something we must do but we have not got round to doing it”. Then I had the privilege of encountering him in Parliament here too.

Mr Speaker, one thing that I admired about this man was his tenacity of purpose but above all, his conviction that what was good for Ghana was what must be discussed. So quite a few times he had, at least, if not on the floor of this House, Mr Speaker, privately said that his side was wrong. I was a bit dismayed that due to the dribblings of politics, he was not able to make it again to the House. But that, as the Leader said, notwithstanding, he was always with us.

Mr Speaker, somebody like Clend was so much convinced of the need to preserve energy that as back as ten, fifteen years ago, his house in East Legon was powered by solar panels and he passionately advocated it. So I was quite happy when I heard that he had been made Chairman of the Board of the Electricity Company of Ghana (ECG) and I thought he would then have an input into the energy conservation programme or alternative energy in this country.

Mr Speaker, he was very principled and as was said, I want to re-emphasise that even in debates outside of the House, he always spoke about what he felt would help Ghana. Sometimes he could be as abrasive as I am myself but most times, he was also most accommodating. I am distressed that he was not able to make his full contribution to this country especially to the energy sector before the good Lord called him.

Mr Speaker, in sincerest condolences

to the family, to the NDC and to this nation for a man that I have come to respect tremendously, he was a model of a politician fiercely fighting for the NDC but still acknowledging when we on our side made valid points. I think that is how we should all be working for the good of mother Ghana irrespective of what political colouration that we have.

Mr Speaker, as Khalil Gibran said -- I hope that Clend Sowu will begin to dance when he left us frozen. He will begin to sing when his voice is no more but above all, he will have eternal rest in the bosom of his Maker.

Mr Speaker, I thank you very much. God Bless you.
Mr First Deputy Speaker 11:45 a.m.
Thank you very much. We can only conclude by quoting from the Byron verse to say that at the going down of the sun and in the morning, we will all remember Clend Sowu.
Thank you very much.
Mr Avoka 11:45 a.m.
Mr Speaker, the key programme that we have today concerns the Committee Finance and the Minister for Finance and Economic Planning. Unfortunately, they are engulfed in a committee programme in the Speaker's Conference Room. I have just spoken to the Chairman and he said that they would be done in the next 30 minutes or so. Whatever we have to do this morning, borders the Committee on Finance and the Ministry of Finance and Economic Planning.
In the circumstances, I will humbly pray that we suspend Sitting for one hour. The time now is 11.55 a.m. and we will reconvene at l.00 p.m. We expect that by that time Hon Members would have taken their lunch so that we will have another marathon Sitting like we had yesterday sometime in the evening.
Mr Speaker, I am very sorry because a lot of the matters are new or have been recently referred to the Committee on Finance; the volume of work before the
Mr Owusu-Agyemang 11:45 a.m.
Mr Speaker, I am sure the lunch is not ready. It does not come until 1.00 p.m. He should have checked before.
But Mr Speaker, why can we not lay the Papers? Why can he not go on for a few minutes, the laying of the Papers?
Mr First Deputy Speaker 11:45 a.m.
That has been done. Those Papers that were ready have been laid.
Mr Avoka 11:55 a.m.
Mr Speaker, for the information of the Hon Colleague, we have taken item 4. We deferred item 4 (a) (i) because of the consultation we are going to have. But items 4 (a) (ii), (iii) up to (xi) have been taken, and 4 (b) has also been taken. So, we have laid the relevant Papers for this morning.
Mr Kyei-Mensah-Bonsu 11:55 a.m.
Mr Speaker, if the Hon Members and indeed, the Hon Minister who are supposed to pilot us
through this stage are not here, the rest of us, the passengers, certainly, cannot take off. So, we have to await the pilots until when they are ready.
Mr First Deputy Speaker 11:55 a.m.
Hon Members, on that basis, the House is suspended for one hour. We will re- assemble at one o'clock to continue with proceedings.
11.56 a.m. -- Sitting suspended
1.50 p.m. -- Sitting resumed
Mr First Deputy Speaker 11:55 a.m.
Yes.
Mr Avoka 11:55 a.m.
Mr Speaker, as I indicated earlier in the morning, the matters are basically relating to the Finance Committee and my information from the Hon Chairman of the Committee is that some of the reports are ready.
Mr First Deputy Speaker 11:55 a.m.
Hon
Member, then you have to -
Mr Avoka 11:55 a.m.
We will start with item number 12, actually.
Mr First Deputy Speaker 11:55 a.m.
No, it has to start at item numbered 10. Why do you go straight to Consideration Stage without doing Second Reading? Hon Majority Leader, it is item 10.
Mr Avoka 11:55 a.m.
Mr Speaker, item 10 is different.
Mr First Deputy Speaker 11:55 a.m.
Item 12. It is item 12.
Mr Avoka 11:55 a.m.
Yes, Mr Speaker. We start at item 12 at page 4.
Mr First Deputy Speaker 11:55 a.m.
Hon Members, item 12 - Hon Minister for Finance and Economic Planning. -- [Pause.]

Hon Majority Leader?
Mr Avoka 11:55 a.m.
Mr Speaker, with your kind permission, I want the Hon Deputy Minister for Finance and Economic Planning to move the Motion while the Hon Minister attends to some urgent matter outside.
Mr First Deputy Speaker 11:55 a.m.
Hon Majority Leader, the Hon Minister is in the Chamber.
Mr Avoka 11:55 a.m.
Mr Speaker, that is not how to be in the Chamber. He is solving matters -
Mr First Deputy Speaker 11:55 a.m.
Hon Majority Leader, he can come and ask his Hon Deputy to hold the fort for him while he sees to some matters. It will be -
Mr Avoka 11:55 a.m.
Mr Speaker, I am grateful to you.
Dr Kwabena Duffuor 11:55 a.m.
Mr Speaker, I am attending to a very important Executive function so I want my Hon Deputy to stand in for me for a few minutes; I will be back.
Thank you.
Mr First Deputy Speaker 11:55 a.m.
Hon Minority Leader -- [Interruption.] -- “He should come back properly”. [Laughter] I am only quoting the Hon Member for Old-Tafo.
BILLS -- SECOND READING 11:55 a.m.
Chairman of the Committee on Finance (Mr James K. Avedzi) 11:55 a.m.
Mr Speaker, I support the Motion and in doing so, present your Committee's Report.
1.0 Introduction
The Customs and Excise (Duties and Other Taxes) (Amendment) Bill, 2010 was presented and read the First time in the House on Thursday, 18th November,
Mr First Deputy Speaker 11:55 a.m.
Hon Members, I will take two more and put the Question. This is just a two-clause Bill.
Mr Charles S. Hodogbey (NDC - North Tongu) 2 p.m.
Mr Speaker, thank you for giving me the opportunity to support this Bill.
Mr Speaker, it is good that they have reduced by a percentage duties on beer and others. What it is going to do is to encourage people rather to consume beer as a liquor.
On the issue of 20 per cent on the use of plastic products, Mr Speaker, if you go round the country today, plastic products are deteriorating this country; wherever
you go, you see plastic sachets all over. And these products, we all know, are biodegradable. Therefore, putting just 20 per cent tax on these plastic products to discourage their manufacture, is not enough.
We should rather find a way of controlling our environment like they have done in other jurisdictions whereby plastic products are banned in use for products which are drinkable.
But I encourage Hon Members of Parliament to support the tax reduction and increase.
Mr Paul C. Appiah-Ofori (NPP - Asikuma/Odoben/Brakwa) 2 p.m.
Mr Speaker, I do not think we are very serious with whatever we are doing here. Where is the Report we are discussing? Where is it? [Hon Members raise copies of the Report.]
All right, thank you.
Well, if the Report is here -- [Pause.] [Table Clerk gives him a copy] I support it, now that I have seen the Report.
Mr First Deputy Speaker 2 p.m.
Hon Members, normally, I listen to the Ranking Member based on what issues that are raised. Now that they have not raised anything that is controversial, I want to Put the Question.
rose
Mr First Deputy Speaker 2 p.m.
All right,
for purposes of gender, I will call the last person, Member for Ayawaso West Wuogon.
Mrs Akosua Frema Osei-Opare (NPP - Ayawaso West-Wuogon) 2 p.m.
Mr Speaker, no doubt we need taxes to run the economy. However, I have very serious concerns about the proposals made in this amendment.
It is my humble view, Mr Speaker, that taxes on water and malt drinks can be further reduced; whereas taxes on beer and wines can be increased.
The point that I am making is that, whereas we are reducing duties on waters
including mineral water by 2.5 per cent and also reducing sparkling wines and so on by 2.5 per cent, for the purpose of health, and for the ordinary person's benefit, it will be better to have maintained those taxes on the alcoholic drinks and rather reduce further the taxes on water and malt drink.
I am very happy with the tobacco increase; because I think if nothing at all, we should be moving towards complete ban since it does reduce the life expectancy of our citizens.
When it comes to polythene bags, I think we are overlooking some issues. There are a lot of plastic industries in Ghana giving jobs to our people, right from the factory level towards the retailer and even the vender on the market. How do we get even our morning porridge? Is it not bagged in plastic bags? How do we get ordinary water? Is it not sachet water or something called “pure water”? Plastic containers have replaced the leaves that we used to use for rapping our food. It has become a day-to-day product for everybody.
The solution does not lie in increasing taxes. Are we going to stop the production of that and reduce jobs? I do not think so; I believe sincerely, and with all seriousness, that we should not be looking at tax increase as a management tool.
We should rather task the Ministry of Environment, Science and Technology to work with the various District Assemblies to fashion out a better dispensable approach to handling plastic bags. But to increase -- what you are going to do is to increase the price of porridge [koko]. Even though you are not putting a price on koko, you are going to increase the price of pure water and that is not your intention.
Your intention is to manage the waste, how this is polluting our environment. So this tax increase will not serve the purpose. Mr Speaker, it will rather create a bottle- neck for the manufacturers, their cost of production will go high. What it means is that the vendors will also have to increase their prices and it is unnecessary.
rose
Mr First Deputy Speaker 2 p.m.
Hon Member for Manhyia, do you have a point of order?
Mrs Osei-Opare 2 p.m.
Is there a point of order?
Dr Prempeh 2 p.m.
Mr Speaker, I can understand why my Hon Friend, elder Sister and Aunty would want to canvass for the retention of the price. But will she consider that where she travels to, the tax is at the point of sale? That means, you use the plastic bag and you pay an extra for the plastic bag that will help ameliorate the situation. So that if you do not use the plastic bag, you are reconsidered. Will she consider that as a better option than a blanket 20 per cent tax?
Mr First Deputy Speaker 2 p.m.
Hon Member, that is not a point of order.
Mrs Osei-Opare 2 p.m.
Mr Speaker, I think that information is ill-timed and it is of no consequence to my argument.
My argument is that the plastic industry creates jobs both at the manufacturing level, at the distribution level and at the retail level. It touches every single individual in this country; right from rural
to urban, and also the poor and the rich, and the point is, the poor in Ghana --
Mr First Deputy Speaker 2 p.m.
Hon Member, wind up, conclude.
Mrs Osei-Opare 2:10 p.m.
So Mr Speaker, I will conclude by sincerely appealing to the Minister for Finance and Economic Planning to stop the reduction of taxes on beer and wines and further reduce the taxes on water and malt drinks, and not impose any tax on the plastic containers and plastic products that we know affect the lives of the poor in both rural and urban areas.
I thank you for the opportunity, Mr Speaker.
Mr First Deputy Speaker 2:10 p.m.
Hon Members, that brings us to the end of the -- Hon Minority Leader, you did not show any sign that you want to take part.
Mr Kyei-Mensah-Bonsu 2:10 p.m.
Mr Speaker, I do not want to take part. I just want some clarification.
Mr First Deputy Speaker 2:10 p.m.
Very well.
Mr Kyei-Mensah-Bonsu 2:10 p.m.
On page 3 of the Bill, the table item number 4, “waters table including mineral water of all descriptions” is not clear to me. What is the meaning of that?
Mr Terkpeh 2:10 p.m.
Mr Speaker, if you would recall, we went through this last year. In fact, anytime we have a Bill with respect to this particular item, we explain that this is the description that is used for what we normally call “minerals”; what we normally in general call “minerals”, Fanta and Coke. That is the tariff description for it. So it is a technical way of describing it. That is the way it is described technically in the tariff, in the HS Code.
Mr Kyei-Mensah-Bonsu 2:10 p.m.
You mean
the word “table” is a technical word? I want to be assured because it has just been written “waters” which is understandable, then “table including mineral water”. That is why I am asking because it is not very clear.
Mr First Deputy Speaker 2:10 p.m.
Hon Deputy Minister for Finance and Economic Planning, he is saying that you said that it is a technical word; so what is the ordinary meaning?
Mr Terkpeh 2:10 p.m.
Mr Speaker, that was why I explained that in other languages, we just refer to them as minerals and I gave examples, irrespective, as Coke, Fanta, whatever. But technically, that is the way they are described.
Dr Prempeh 2:10 p.m.
I think in the Bill that was brought to the House, the different categories are described in a tabular form, , that is what the reference is, not “waters table”.
Question put and Motion agreed to. The Customs and Excise (Duties an
Other Taxes) (Amendment) Bill, 2010 was accordingly read a Second time.
Suspension of Standing Order 128 (1)
Minister for Finance and Economic Planning (Dr Kwabena Duffuor) 2:10 p.m.
Mr Speaker, you advised me to come back properly; I have come back properly.
Mr First Deputy Speaker 2:10 p.m.
Properly, not quickly.
Dr Duffuor 2:10 p.m.
I have come back very well. So Members should be very happy.
Mr Speaker, I beg to move, that notwithstanding the provision of Standing Order 128 (1) which require that when a Bill has been read a Second time, it shall pass through a Consideration Stage, which
shall not be taken until at least, forty-eight hours have elapsed, the Consideration Stage of the Customs and Excise (Duties and Other Taxes) (Amendment) Bill, 2010 may be taken today.
Mr James K. Avedzi 2:10 p.m.
Mr Speaker, I beg to second the Motion.
Mr Kyei-Mensah-Bonsu 2:10 p.m.
Mr Speaker, before you put the Question, I think that having listened to the Minister, I remain very unconvinced about what he said relating to the point that I raised. Really, it should read “waters table”. That will then include “mineral water of all descriptions”. But to say that the table there is a technical description, clearly, is not it.
Mr First Deputy Speaker 2:10 p.m.
It is the “waters”, that is the technical description.
Mr Kyei-Mensah-Bonsu 2:10 p.m.
It is “waters table” and because it comes in the tabular form, it includes mineral water. But it is not “waters” table including mineral water of all description”. That is not how it should be.
Mr First Deputy Speaker 2:10 p.m.
Even the grammar is wrong.
Mr Kyei-Mensah-Bonsu 2:10 p.m.
Absolutely. So I thought that I wanted to have us do a Second Consideration just to effect that correction, so that everybody would be very clear.
Mr First Deputy Speaker 2:10 p.m.
We have not done the First Consideration, the original one. So before then, we can go for the Act that we are amending and see how it has been captured and then we can resolve that matter.
Mr Kyei-Mensah-Bonsu 2:10 p.m.
Maybe, I got a bit lost; I thought we were doing the Third Reading. I am sorry.
Mr First Deputy Speaker 2:10 p.m.
No, this is a procedural Motion to suspend the Standing Orders.
Mr Kyei-Mensah-Bonsu 2:10 p.m.
Right, I was not following you but I would want to suggest to the Chairman of the Committee and indeed, the Minister that they should effect the correction.
Mr First Deputy Speaker 2:10 p.m.
Hon Minister, where are your personnel from the Ghana Revenue Authority? Where are they?
Dr Duffuor 2:10 p.m.
They are on their way
coming. I have just called them.
Mr First Deputy Speaker 2:10 p.m.
Very well.
Question put and Motion agreed to.
Resolved accordingly.
BILLS -- CONSIDERATION 2:10 p.m.
STAGE 2:10 p.m.
Mr Boafo 2:10 p.m.
Mr Speaker, the Chairman is moving for clause 2 but -
Mr First Deputy Speaker 2:10 p.m.
We have not got there.
Mr Boafo 2:10 p.m.
I want us to make an observation under clause 1.
Mr First Deputy Speaker 2:10 p.m.
Very well, so wait for me to call the clause.
Clause 1 -- First Schedule of Act 512 amended.
Mr Boafo 2:10 p.m.
Mr Speaker, in the table, the second column, we have a reference
to the second line, “domestic and public lighting”. Mr Speaker, I am wondering whether if somebody has a private office that would be caught --
Mr First Deputy Speaker 2:10 p.m.
But look at the import duty, it is zero per cent.
Mr Boafo 2:10 p.m.
That is zero per cent domestic and public lighting but what about private?
Mr First Deputy Speaker 2:10 p.m.
Hon Member, we are at the Consideration Stage. So if you want to file an amend- ment -
Mr Boafo 2:10 p.m.
Mr Speaker, I am proposing an amendment --
Mr First Deputy Speaker 2:10 p.m.
So if you have the amendment to file, you can let me have your rendition and then you can move it. Let me have the rendition of your amendment and then we can get the Ministry of Finance and Economic Planning to respond and indeed, the Committee on Finance to respond to the amendment.
Mr Boafo 2:10 p.m.
Very well.
Mr First Deputy Speaker 2:20 p.m.
Hon Member for Akropong, I thought you wanted to move an amendment, or you wanted clarification?
Mr Boafo 2:20 p.m.
No, I wanted to move an amendment. Can I go ahead? I thought you said I should put it in writing for them to consider before -
Mr First Deputy Speaker 2:20 p.m.
No, I said after you move it -- I want to get the rendition while they are responding to it, so that we would be sure of the import of
your amendment.
Mr Boafo 2:20 p.m.
Very well. Mr Speaker, I beg to move, clause 1, insert after the word “domestic” in line (2), we insert the word “private”. So that it would read: “for domestic, private and public lighting”.
Mr First Deputy Speaker 2:20 p.m.
What is the import of the amendment?
Mr Boafo 2:20 p.m.
Mr Speaker, we have not had a definition of what is meant by “domestic”. But my appreciation is that “domestic” will refer to household use. But I have in mind the private offices where these bulbs would be used and I see that they are not covered.
Mr First Deputy Speaker 2:20 p.m.
Private offices are - if you look at what we have there, it is for “domestic”; it is not for “profit”. “Public lighting” too is also not for profit. But if you are talking about “private offices”, then it is for profit. If you look at what we have there, then you are bringing in a new thing. It should be a separate amendment altogether; it should not come under this.
Mr Boafo 2:20 p.m.
Mr Speaker, maybe, the example is too extreme. What about churches; they are not for profit. Are they? Churches are not for profit. But the strict interpretation would exclude churches and other charitable organizations.
Mr First Deputy Speaker 2:20 p.m.
Which church do you attend, Hon Member for Akropong?
Mr Boafo 2:20 p.m.
Mr Speaker, i t i s Presbyterian Church of Ghana.
Mr First Deputy Speaker 2:20 p.m.
Yes, but
Mr First Deputy Speaker 2:20 p.m.


you see, the example that you have given is also different from the amendment that you want to bring. You see, you are talking about private offices. These things -- we have to get technical advice because they are very technical. They are very technical matters based upon the term you use. They have tariff code. But a church could connote “public use”. A church is for the public, so it is in a way taking care of the Presbyterian Church of Ghana.

Question put and amendment negatived.

Clause 1 ordered to stand part of the Bill.

Clause 2 - Fifth Schedule of Act 512 amended.
Mr Avedzi 2:20 p.m.
Mr Speaker, I beg to move, clause 2, add the following new subclause:
“(b) for the avoidance of doubt, the import excise duty on excisable goods shall be imposed on Cost, Insurance and Freight (CIF) basis at the point of importation.”
Mr Speaker, the Bill was placing the excise duty on manufactured goods locally. So the new subclause is intended to have the same thing to be done on imported goods as well.
rose
Mr First Deputy Speaker 2:20 p.m.
Yes, Hon Minority Leader, there is an amendment to clause 2 of the Bill and that is what we are doing, and that is an amendment filed by the Committee which has been moved by the Chairman of the Committee.
Mr Kyei-Mensah-Bonsu 2:20 p.m.
Mr Speaker, I thought that the issues that I raised and -- [Pause.]
Mr First Deputy Speaker 2:20 p.m.
Today,
Mr Kyei-Mensah-Bonsu 2:20 p.m.
Divided attention.
Question put and amendment agreed to.
Mr First Deputy Speaker 2:20 p.m.
Hon Members, before I put the Question on the entire clause, let us try and sort out the point that the Minority Leader is raising.
Yes, Chairman?
Mr Avedzi 2:20 p.m.
Mr Speaker, by adding the new amendment for the imported goods, the Committee inadvertently omitted the Schedule for the description of the commodities that are affected by this. So, I want to move, that we include the Schedule as well - the Customs Tariffs Schedule.
Mr First Deputy Speaker 2:20 p.m.
But the clauses 1 and 2 of the Bill are Schedules. Yes, we are actually amending Schedules; clauses 1 and 2 are Schedules to the Bill. And so unless you are - I do not know exactly what you are asking the House to do. I am not getting it.
Mr Terkpeh 2:20 p.m.
Mr Speaker, excises are imposed on the same product irrespective of whether they are produced locally or they are imported. Mr Speaker, the Schedule in the Bill, that is before you, the original one, you would notice, refer to ex-factory price in the rate of duty column, in all the items, which implies that this is for domestic.
But the customs - so what we are adding, in the event that it is imported, then the basis is not ex-factory, the basis becomes Cost, Insurance and Freight or what is called the CIF, in which case, it would have to amend the Schedule to the Customs Management Act. So we placed
it before the Committee, the areas where the amendments are to take place.
Mr First Deputy Speaker 2:30 p.m.
There are problems, but let me clear the issue with the Hon Minority Leader first and then we come to this Schedule.
Yes, the “waters table”. Hon Minority Leader, we are trying to clarify this position.
Mr Terkpeh 2:30 p.m.
Mr Speaker, in relation to item (4), we are advised that the word “table” can actually be taken out now and it would make - the current descriptions which customs tariffs use does not include the word “table” and it is understandable. So it would be “waters including mineral water” --
Mr First Deputy Speaker 2:30 p.m.
Somebody should move the amendment to delete the “table”.
Mr Terkpeh 2:30 p.m.
Mr Speaker, I therefore
beg to move, that the word “table” be deleted in item (4) of the Fifth Schedule amendment that is being proposed.
Mr Kyei-Mensah-Bonsu 2:30 p.m.
Mr Speaker, I believe it is proper, because if you go to item (2) under (4), you would see “distilled”, then comma, “bottled water.” That means that distilled water including bottled water. I think that is what it meant and that is why what you have done is most appropriate.
So Mr Speaker, I support the amend- ment.
Question put and amended agreed to.
Mr First Deputy Speaker 2:30 p.m.
Hon Members, I have been given a Schedule; I do not know how. I would put the amendment.
Mr Owusu-Agyemang 2:30 p.m.
Mr Speaker,
one little question. I do not have my copy of it, but following what they said “still water”, and still water -
Mr First Deputy Speaker 2:30 p.m.
Distilled.
Mr Owusu-Agyemang 2:30 p.m.
All right.
Mr First Deputy Speaker 2:30 p.m.
Hon Deputy Minister for Finance and Economic Planning, how am I going to put this Question? Is it the whole thing? This is because there is a write-up attached to it. It is going to be a new sub -- It should be a new clause altogether. The way I am seeing it, it should be a new clause altogether. What I do not know is whether it should be in the form that you have presented to me, because there is some write-up attached to it. The opening part to the Schedule and then the concluding part of the Schedule, in my view, cannot be part of the Schedule. Look at it.
Hon Members, let me put the Question on clause 2 and then we will come back to this new clause.
Question put and amendment agreed to.
Clause 2 as amended ordered to stand part of the Bill.
Mr First Deputy Speaker 2:30 p.m.
Hon Deputy Minister for Finance and Economic Planning, you see, the clause 2 that you have, we have tariff number, tariff description, rate of duty. What we have here is H.S. Code; commodity description. So they cannot be part of clause 2; it should be a clause standing on its own.
Mr Terkpeh 2:30 p.m.
You are right, Mr Speaker, because even the reference is to a different Schedule. So it is a different clause on its own, because the domestic clause is the Fifth Schedule; this refers to, I believe, Schedule 1 of 2. So it should be a clause standing on its own.
Mr First Deputy Speaker 2:30 p.m.
Hon
Majority Leader, have you seen the new Schedule?
Mr Avoka 2:30 p.m.
I have not seen that one.
Mr First Deputy Speaker 2:30 p.m.
Well, Hon Members, I would defer this matter. I want the Committee and the Minister to have it sorted out and let me get the rendition properly and distribute it to Hon Members, so that we know exactly what we are doing. So we defer the consideration of this Bill to resolve this other matter.
Hon Deputy Minister for Finance and Economic Planning, you have to help the Chair so that we can facilitate business. This is because when we are going and then somewhere along the line, we meet some of these challenges and assistance is not coming, it creates problems.
Mr Terkpeh 2:30 p.m.
Mr Speaker, we actually discussed this at length in Committee and it was inadvertently left out. So once it is distributed - We actually discussed and we went through it with the Committee.
Mr First Deputy Speaker 2:30 p.m.
But it should not be -- Have you properly captured it? Because there should be another column for where the rate of duty would be 20 per cent. Because the write-up that you have here says that the following would attract 20 per cent excise duty. So we have the first column being H.S. Code; second column - commodity description and then the third column which would apply to all, then would become rate of duty. And the rate of duty of 20 per cent -- That is what you have done to clause (1); we have the H.S. Code, commodity description and rate of import duty.
Mr Terkpeh 2:30 p.m.
Mr Speaker, yes, when the amendment is taken and the H. S. Code has columns for import duty, for VAT, for National Health Insurance -- all the impositions at importation. So there will be a column and the 20 per cent would be inserted for each of the items in the
Mr First Deputy Speaker 2:30 p.m.
But what you have put here in your write-up is that, all of them, the following -- which means that all of them would all attract a 20 per cent -
Mr Terkpeh 2:30 p.m.
Each of them would attract the new rate of 20 per cent.
Mr First Deputy Speaker 2:30 p.m.
So get the Ranking Member and then the assistance of the Table Office to put it in an amendment form, properly captured, then I would put the Question when we come back to it.
So Hon Ranking Member -- Hon Majority Leader, we have
deferred the consideration of the Customs and Excise (Duties and Other Taxes) (Amendment) Bill, so which one do we take now?
  • [Resumption of debate at column 4280.]
    • Mr Avoka 2:30 p.m.
    Mr Speaker, with your kind permission, we would do Motion number (7) at page (3).
    BILLS - SECOND READING 2:40 p.m.
    Minister for Finance and Economic Planning (Dr Kwabena Duffuor) 2:40 p.m.
    Mr Speaker, I beg to move, that the Debt Recovery (Tema Oil Refinery Company) Fund (Amendment) Bill, 2010 be now read a Second time.
    Question proposed.
    Chairman of the Committee (Mr James K. Avedzi) 2:40 p.m.
    Mr Speaker, I rise
    to support the Motion moved by the Hon Minister and in doing so, I present your Committee's Report.
    1.0 Introduction
    The Debt Recovery (Tema Oil Refinery Company) Fund (Amendment) Bill, 2010 was presented and read the First time in the House on Thursday, 18th November, 2010 and subsequently referred to the Finance Committee for consideration and report in accordance with article 103 of the 1992 Constitution and Orders 125 and 169 of the Standing Orders of the House.
    The Committee met and considered the Bill with the Deputy Minister for Finance and Economic Planning, Hon Seth Terkpeh, officials of the Ghana Revenue Authority (GRA) and the Ministry of Finance and Economic Planning and hereby submit this Report pursuant to Order 126 of the Standing Orders of the House.
    2.0 Background
    In the year 2003, the Debt Recovery (Tema Oil Refinery Company) Fund Act was passed to establish a Debt Recovery Fund to finance Tema Oil Refinery Company's (TOR's) accumulated debt and to cater for the company's under-recovery. A debt recovery levy was imposed on specified petroleum products.
    TOR's debt burden, however, remains high and threatens the financial viability of the country's banking system. Government is, therefore, proposing an upward adjustment to the current Debt Recovery Levy to retire the TOR debt and to prevent continuous accumulation of debts in order to alleviate the effect of the debt on the banking system.
    3.0 Reference documents
    The Committee referred to and/or was guided by the following in its consi- deration of the Bill:
    1. Constitution of the Republic of
    Ghana, 1992;
    2. Debt Recovery (Tema Oil Refinery Company) Fund Act, 2003 (Act 642); and
    3. Standing Orders of the Parliament of Ghana.
    4.0 Purpose of the Bill
    The purpose of the Bill is to amend
    the Debt Recovery (Tema Oil Refinery Company) Fund Act, 2003 (Act 642) to replace the Schedule and increase the levy on specified petroleum products.
    5.0 Contents of the Bill
    The Bill contains a total of two clauses.
    Clause 1 seeks to replace the Schedule to Act 642 with a new one that specifies new levels of debt recovery levy on petroleum products as shown below:
    Clause 2 repeals the Debt Recovery (Tema Oil Refinery Company) Fund (Amendment) Act, 2006 (Act 713).
    6.0 Observations
    The Committee observed that the new increases would not affect kerosene, premix fuel and liquefied petroleum gas
    (LPG).
    The Bill, when passed, would increase the Debt Recovery Levy on the various petroleum products as follows:
    The Deputy Minister for Finance and Economic Planning, Hon Seth Terkpeh informed the Committee that the aim of the Bill is to relieve Tema Oil Refinery (TOR) of its debt overhang so as to firmly position the company to play a significant role in the emerging petroleum industry, especially in the downstream sector.
    It was observed that in the year 2010, Government refinanced about GH¢445

    million of TOR's debts as part of measures to stabilise the company.

    The Committee advised Government to come out clearly on exactly how much the TOR debt was at the end of 2008 and how much it is currently.

    SPACE FOR TABLE - 2.40

    P.M. - PAGE 3
    Mr Isaac Osei (NPP - Subin) 2:40 p.m.
    Mr Speaker, I also support the levy. However,
    I think the point made by the Hon Ranking Member for the Committee on Finance is extremely important. This is because if this is a debt recovery levy, then it means that levy must recover the debt. And therefore, the stock of debt is extremely important because we cannot place this levy ad infinitum. So we need to know the stock of debt and we need to know how long it would take for us to recover.
    rose
    Mr First Deputy Speaker 2:40 p.m.
    Hon
    Majority Leader, do you want to speak? I am taking the last two, except the Hon Minority Leader wants to speak. I am taking the Hon Ranking Member for Energy --
    Majority Leader (Mr Cletus A.
    Avoka): Mr Speaker, I just wanted to support the observation made by the Hon Member for Subin and the Hon Ranking Member of the Committee on Finance that in fairness to everybody, I think we even ought to have the debt recovery for every year beginning from the day that we started, so that at the end of this year, this was the outstanding amount, this was how much was released and then up to today. So that we would know how much the Refinery owes and how much we need to pay. Then we would be on solid grounds as to whether this levy we are talking about today is actually going to suffice or not.
    I appreciate what they have said but I have been well informed that the Hon Minister for Finance and Economic Planning has the information. But I just want to inform Hon Members that if that is the anxiety, the Hon Minister for Finance and Economic Planning will give the information and that will put the matter to rest.
    Mr First Deputy Speaker 2:40 p.m.
    Very well. I would take the Hon Ranking Member on Energy.
    Mr Joseph K. Adda (NPP - Navrongo Central) 2:40 p.m.
    Mr Speaker, indeed, I speak on the same point and wish to add that it would be very important for us to have
    SPACE FOR TABLE - 2.40
    P.M. - PAGE 4
    a repayment schedule. If we know that we are going to be able to raise about GH¢330 million and on page 5, under paragraph 7.0 - “Conclusion” - we are talking about speedy payment of TOR's debt. It would be important for us to know whether this amount would be wiping out the entire debt or would be paying over a period of time.
    Therefore, the information that the Hon Ranking Member is asking for should come along with the repayment schedule, then we break down the repayment over the years or months so that we know if the GH¢330 million would not be enough, whatever the balance is, we can anticipate if there is going to be any additional increase in the future or if that would be the end of it, then we go back to as it were, normal prices for petroleum products. As it is now, it means that we are just not sure what we are doing because we do not have the hard numbers and we do not know when we are finally going to wipe out this debt.
    So Mr Speaker, I just wanted to add my voice to the request being made by the Committee and to emphasize that it is important for us to have the details in terms of repayment schedule matching the revenues that we are raising for that purpose.
    Dr Matthew O. Prempeh (NPP - Manhyia) 2:50 p.m.
    Mr Speaker, I would want the Committee to tell us -- in last year's Budget, no allocation was made for a GH¢445 million government paying TOR debt; The whole year, nothing has come to this House from the Ministry of Finance and Economic Planning or the Presidency to tell us how this money was raised.
    But more importantly, I am beginning to suspect that the National Health Insurance Authority, that is owed money and the GETFund that is owed money, these are the monies that have been paid.
    The Minister for Finance and Economic Planning should come to us and tell us how he raised this money because in the Constitution, every money that has been raised has to be approved by the House. How he raised these monies to pay those debts.
    Mr Avedzi 2:50 p.m.
    Mr Speaker, the Hon Member has just levelled an allegation. If he cannot substantiate it, he should withdraw it. How does he know that the Health Insurance levy was used to do that? Can he prove? If he cannot prove, then he should withdraw it and apologize to the Hon Minister.
    Dr Prempeh 2:50 p.m.
    Mr Speaker, I thought this was an issue that we were all concerned about. I am not making an allegation. I said, in last year's Budget, no GH¢445 million was allocated as payment of debts. The whole of last year, from January to date, the Minister for Finance and Economic Planning has not produced any Bill here for us to give him the permission to raise this amount of money. So, where did the Hon Minister get the GH¢445 million from? And I am saying I suspect; I did not say it is a fact.
    Mr First Deputy Speaker 2:50 p.m.
    Hon Member for Manhyia, you made a categorical statement.
    Dr Prempeh 2:50 p.m.
    Mr Speaker, that?
    Mr First Deputy Speaker 2:50 p.m.
    That is why he is asking you.
    Dr Prempeh 2:50 p.m.
    Mr Speaker, all right, let me come -
    Mr First Deputy Speaker 2:50 p.m.
    You see, it should have been you started well, you should have asked the Hon Minister to provide that information but you have made a categorical statement and that is where the problem is coming from.
    Dr Prempeh 2:50 p.m.
    Mr Speaker, I want to correct myself.
    Mr First Deputy Speaker 2:50 p.m.
    Yes, so withdraw and correct it.
    Dr Prempeh 2:50 p.m.
    Mr Speaker, I withdraw the part that said “National Health Insurance Authority and the GETFund”. But my point is that, this House is the only House that can give the Hon Minister the permission to raise the money to pay this. That is all, he should tell us where he got it from.
    Dr A. A. Osei 2:50 p.m.
    Mr Speaker, what is not fully captured in the Committee's Report is that, a message was sent to the Ministry, that as far as this House is concerned, nothing has come for us to approve of a facility of GH¢445 million. That it was possible that the Hon Minister may have forgotten about that, so, we asked the Deputy Minister to remind them to come back to this House to rationalize that act that has occured; so that, at that time, he would be able to give us a full explanation why it was done without Parlia-ment's approval.
    The act has occurred but the Committee's Report is not fully capturing that. The message was sent very strongly to the Deputy to be sent to the Hon Minister that this House does not know of this facility and that, even if it has occurred, he needs to come back to formally do it.
    Mr Osei Kyei-Mensah-Bonsu 2:50 p.m.
    Mr Speaker, we have been told of what happened in the course of the year. The refinancing scheme involving GH¢445 million, I think the point has already been made that in this year's Budget, there was no space created for such refinancing arrangement.
    Indeed, if it was done, if it had to be done under some extreme circumstances, maybe, to bail out Tema Oil Refinery and indeed, maybe the banks involved, then,
    definitely, a report ought to have come to Parliament; that it has not been done yet is most irregular. But the Hon Minister is here; he will perhaps, have to inform us about what happened.
    Mr Speaker, we are also told that the levy that is being imposed would rake in for 2011, GH¢330 million. That is why we need to know the stock of debts as of now. In fact, given the fact that various figures have been bandied about since 2009, that is early 2009, it is important that as a nation, we confront this squarely, so that we know how much the debt stock was as at January 7,2009. Nobody appears to come out with any clear figure.
    Four different figures have been given. In the meantime, we are told that the refinancing involved GH¢445 million and what we intend doing now is also going to rake in GH¢330 million in the course of the year. So, what is the debt stock? What is the stock of debt now? What was the debt stock as at 7th January, 2009? What has been added thereto between January 2007 up to now? And if they are accumulating interest, we also need to know.
    Mr Speaker, all the more so, because there is a 5th figure that has also been used. We are told in the NDC Manifesto that the stock of debt of TOR was GH¢500 million as at 7th January, 2009 and that is contained in their own manifesto, that it was GH¢500 million. So, we need to know what it is. Five different figures being bandied about.
    People have a pocketful of assorted figures and they go about bandying those figures as and when they please. We need to know before - because if you are in debt, you certainly should know how much you owe before if you want to go for another loan to service the debt that you owe, then you will be clear.
    But nobody knows and people are treating it like we need another whistle-
    Mr First Deputy Speaker 2:50 p.m.
    Hon Minister for Finance and Economic Planning, kindly wind up.
    Dr Kwabena Duffuor 3 p.m.
    Mr Speaker, I would like to thank the Hon Members of the august House for the lively debate on the challenges facing TOR.
    When you look at the balance sheet of TOR, and you look at the Financial Statement as at 31st December, 2009, you have the financial position of TOR. A debt of almost GH¢1.5 billion. What we raised in March, last year, was meant to reduce the haemorrhage that was taking place within Ghana Commercial Bank.
    At the time, March, last year, precisely l9th March, the TOR Debt at Ghana Commercial Bank stood at about GH¢848 million. We raised GH¢445 million to reduce part of this. After reducing this GH¢848 minus GH¢445, we had GH¢403 million.
    As we are speaking now, the debt to Ghana Commercial Bank is about GH¢640 million.
    This afternoon, the Ranking Member and I talked about it and I believe that the interest is accumulating at a very fast rate. If there is any way as a nation, we can clear this debt, it will bring health to Ghana Commercial Bank and the whole
    economy.
    Thank you, Mr Speaker.
    Mr Kyei-Mensah-Bonsu 3 p.m.
    Mr Speaker, while thanking the Minister for these figures that he has brought, I believe the better thing for us as a House to have, is to have the Report of the Auditor-General on TOR because it becomes difficult to appreciate, I would not say to accept, but to appreciate the figures that are coming. Mr Speaker, the Minister said -
    Mr First Deputy Speaker 3 p.m.
    Hon Minority Leader, he has done the winding- up. So, if there are one or two things, briefly, because you have already spoken. He has done the winding-up and I am supposed to put the Question but I called you because you raised a very fundamental issue with regard to the debt stock of TOR and then he responded. So, you come quickly and mention - otherwise, you will be offending the rules.
    Mr Kyei-Mensah-Bonsu 3 p.m.
    Mr Speaker, first of all, the question I posed was that we needed the debt stock as at January 7, 2009 which has not been given -
    Mr First Deputy Speaker 3 p.m.
    He gave
    2009.
    Mr Kyei-Mensah-Bonsu 3 p.m.
    Mr Speaker, I believe everybody here heard what I said that we needed the debt stock as at January 7, 2009.
    Mr First Deputy Speaker 3 p.m.
    As at 3lst December, 2008 --
    Mr Kyei-Mensah-Bonsu 3 p.m.
    If you like.
    But he said he mentioned a month other than January or February, in 2009 and that is what he said. He said as at March ending 2009, which does not answer the question that I posed.
    Mr First Deputy Speaker 3 p.m.
    Financial Statements are filed at a particular time in the year and I think -
    Mr Kyei-Mensah-Bonsu 3 p.m.
    Mr Speaker can I finish -
    Mr First Deputy Speaker 3 p.m.
    Hon Member, I have relaxed the rules, that is why I called you.
    Mr Kyei-Mensah-Bonsu 3 p.m.
    You have relaxed the rules to also allow you to contribute.
    Mr First Deputy Speaker 3 p.m.
    Yes, that is why -- once I have relaxed the rules in your favour, the rules should also be allowed to clarify what you want. You see, once I have relaxed the rules to call you again to speak, the rules should be relaxed so that you can narrow on exactly what you want, so that he can speak on it. This is because if we do not do it like that, we will be breaching the rules.
    Mr Kyei-Mensah-Bonsu 3 p.m.
    Mr Speaker, I asked a specific question, the Minister provided some information which do not really respond to the issues that I raised. However, it is relevant information to this House, which in my view, should even be tabled, so it becomes official - [Inter- ruption] - The Majority Leader is asking me, “why?” I think he should know better.
    Official information -- you have to table it. He should know this and I am saying this and he is asking me “why?” He should know that - [Interruptions] - Come again? He should know that you should know the procedure here. I do not just rise up and start quoting something from a paper and I want it to be recognized as official. That is what is done here.
    So I am saying that it is relevant information but please, table it. That is what is done here. That is the procedure here, “Mr. Leader”. So let it be tabled here - [Interruptions] - Come again -- [Uproar]- This type of interpolation from
    the Majority Leader, he should watch it.
    Mr Speaker, so I am saying that that should be laid, so that it becomes official -- [Some Hon Members: No] - notwithstanding the fact that it is not related in reality to what I said and I said beyond that, we also need the Auditor- General's Report so that we will be able to speak to the issues.
    Mr Speaker, thank you.
    Mr First Deputy Speaker 3 p.m.
    Hon Minister, in the interest of transparency, try and make those information being requested available to the House at the appropriate time.
    Mr Kyei-Mensah-Bonsu 3 p.m.
    Mr Speaker, I said he must table what he has already spoken to, so that it becomes official.
    Mr First Deputy Speaker 3 p.m.
    Hon Member, I do not know which form the information is and that is why I directed him to make the information available to the House - [Interruption] - at the appropriate time - Those are the words I used. And there are different ways by which this House can get that information from the Ministry. So if he does not, there will be alternative ways of getting it. But I have directed from the Chair that he should make the information available and that is the most important thing.
    Question put and Motion agreed to.
    rose
    Mr First Deputy Speaker 3 p.m.
    No, Hon Minority Leader, he will make the information available.
    Mr Kyei-Mensah-Bonsu 3 p.m.
    Mr Speaker, I do not want to go on the voting. No. But please, it is very critical. For you to say we
    Mr First Deputy Speaker 3 p.m.
    I did not use the word “Ministry”; please, do not put words into my mouth. When I say that you can use other means --- If he does not -- you can file Questions, you can file Motions, you can use other mecha- nisms. But I have directed him - I have directed him from the Chair to make the information available to the House. I have directed the Minister to make the information available to the House and the Minister cannot disrespect an order from the Chair.
    Yes, the Ministry cannot disobey an order from the Chair. No Ministry can disobey an order from the Chair.
    Mr Kyei-Mensah-Bonsu 3 p.m.
    Mr Speaker, that is beyond doubt. It is the timely release of the information that is relevant. So if you say that he should come at the “appropriate time”, or the words that you use, Mr Speaker, they will not really satisfy the condition because on almost daily basis, activists and other persons - [Interruptions.] I am not talking about foot soldiers - Hon Bagbin, I have not mentioned “foot soldiers”. They go on the radio station and talk about different figures. We need to reconcile the position.
    Mr Alban S. K. Bagbin 3 p.m.
    Mr Speaker, everyday we are being told about activists; he is an activist himself, he is always on air. Even when we took the break, this recess, he was on television talking. He is an activist himself - [Laughter.] He knows that this TOR debt is not today's debt. It has been there. They left office at the end of 2008. They did not tell us how much debt they left.
    Now, somebody is making an effort to tell them the debt and they say they want the details. The Chair has ordered that that be supplied to this House, and they
    are still not satisfied. What should be done? If they are not satisfied with what the Chair has done, the rules are there, they know how to extract information from a Ministry, pass through the rules, get that information, legally on the floor - [Laughter] - What is all this thing about activists - [Interruptions.]
    Mr Kyei-Mensah-Bonsu 3:10 p.m.
    Mr Speaker, this intervention is most unacceptable and we do not indulge in ambivalence in this House. When he was here, he was not allowing us to indulge in ambivalence. What is he saying? Mr Speaker, we cannot take that. And when the Speaker says that we can use other means, I referred to something that he said that including even going to the Ministry and I said, “no” -
    Mr First Deputy Speaker 3:10 p.m.
    I did not say that, Hon Minority Leader.
    Mr Kyei-Mensah-Bonsu 3:10 p.m.
    You said so. [Interruptions.] If you are saying that it was a slip of tongue, I will accept that. Do not say you did not say so. You did say so.
    Mr First Deputy Speaker 3:10 p.m.
    Hon Minority Leader, I did not say that. I am telling you that I did not say it.
    Mr Kyei-Mensah-Bonsu 3:10 p.m.
    You did. I may take it as a slip -
    Mr First Deputy Speaker 3:10 p.m.
    Hon Minority Leader, take your seat.
    Mr Kyei-Mensah-Bonsu 3:10 p.m.
    I may take it as a slip and I will accept it but to say that you did not say so, is unacceptable. You said so. [Interruptions.] What kind of
    behaviour is that?
    Mr First Deputy Speaker 3:10 p.m.
    Hon Minority Leader, you are grossly out of order.
    Mr Kyei-Mensah-Bonsu 3:10 p.m.
    You can say so.
    Mr First Deputy Speaker 3:10 p.m.
    Hon Members, let us proceed --
    Question put and Motion agreed to.
    The Debt Recovery (Tema Oil Refinery Company) Fund (Amendment) Bill was accordingly read a Second time.
    MOTIONS 3:10 p.m.
    Minister for Finance and Economic Planning (Dr Kwabena Duffuor) 3:10 p.m.
    Mr Speaker, I beg to move, that notwith- standing the provisions of Standing Order 128 (1) which require that when a Bill has been read a Second time, it shall pass through a Consideration Stage, which shall not be taken until at least, forty-eighty hours have elapsed, the Consideration Stage of the Debt Recovery (Tema Oil Refinery Company) Fund (Amendment) Bill, 2010 may be taken today.
    Mr James K. Avedzi 3:10 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr First Deputy Speaker 3:10 p.m.
    Item 9 - Debt Recovery (Tema Oil Recovery Company) Fund (Amendment) Bill, 2010 at the Consideration Stage.
    Mr First Deputy Speaker 3:10 p.m.
    Hon Member, take your seat.
    The people of this country are watching everybody and our conduct. That is the most important thing.
    BILLS - CONSIDERATION 3:10 p.m.
    STAGE 3:10 p.m.
    Chairman of the Committee (Mr James K. Avedzi) 3:10 p.m.
    Mr Speaker, I beg to move, clause 1 - The Schedule, column 1, delete “Ga Oil” and insert “Gas Oil”.
    Mr Speaker, there is a spelling mistake, so we are just correcting it.
    Question put and amendment agreed to.
    Clause 1 as amended ordered to stand part of the Bill.
    Clause 2 ordered to stand part of the Bill.
    The Long Title ordered to stand part of the Bill.
    Mr First Deputy Speaker 3:10 p.m.
    Hon Members, that ends the Consideration Stage of the Debt Recovery (Tema Oil Refinery Company) Fund (Amendment) Bill, 2010.
    Minister for Finance and Economic Planning (Dr Kwabena Duffuor) 3:10 p.m.
    Mr Speaker, I beg to move, that notwith- standing the provisions of the Standing Order 131 (1) which require that when a Bill has passed through the Consideration Stage, the Third Reading thereof shall not be taken until at least, twenty-four hours have elapsed, the Motion for the Third Reading of the Debt Recovery (Tema Oil Refinery Company) Fund (Amendment) Bill, 2010 may be moved today.
    Mr James K. Avedzi 3:10 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    BILLS - THIRD READING 3:10 p.m.
    BILLS --SECOND READING 3:20 p.m.
    Minister for Finance and Economic Planning (Dr Kwabena Duffuor) 3:20 p.m.
    Mr Speaker, I beg to move, that the Internal Revenue (Amendment) Bill, 2010 be now read a Second time.
    Mr Speaker, the object of this Bill is to amend the Internal Revenue Act, 2000 (Act 592).
    In this Budget for the 2011 fiscal year, the Government stated the importance of building a good tax system. It is the intention of the Ministry of Finance and Economic Planning to build a good tax system as a requisite to putting fiscal management on a solid long-term footing and to developing a modern economy.
    In order to fully benefit from the tax policy initiatives and reforms with the tax administration which the Government started in 2009 and which are beginning to yield results, the Government in the 2011 Budget has proposed a number of tax policies for the 2011 fiscal year.
    Mr Speaker, I therefore, beg to move for this Motion to be considered.
    Question proposed.
    Chairman of the Committee on Finance (Mr James K. Avedzi) 3:20 p.m.
    Mr Speaker, I rise to support the Motion and present your Committee's Report.
    l.0 Introduction
    The Internal Revenue (Amendment) Bill, 2010 was presented and read the First time in the House on Thursday, 18th November, 2010 and subsequently referred to the Committee on Finance for consideration and report in accordance with article 103 of the 1992 Constitution and Orders 125 and 169 of the Standing Orders of the House.
    The Committee met and considered the Bill with the Deputy Minister for Finance and Economic Planning, Hon Seth Terkpeh, officials of the Ghana Revenue Authority (GRA) and the Ministry of Finance and Economic Planning and hereby submit this Report pursuant to Order 126 of the Standing Orders of the

    House.

    2.0 Background

    In the Budget Statement and Economic Policy of Government for the 2011 financial year, Government iterated the importance of building a good tax system as a prerequisite to putting fiscal management on a solid long- term footing and to developing a modern economy.

    In order to fully benefit from the tax policy initiatives and tax administration reforms commenced in the year 2009, Government has proposed a number of tax policies for the 2011 financial year, hence requiring consequential amendments of certain provisions in the Internal Revenue Act, 2000 (Act 592).

    3.0 Reference documents

    The Committee referred to and/or was guided by the following in its consideration of the Bill:

    1. The 1992 Constitution of the Republic of Ghana;

    2. The Internal Revenue Act, 2000 (Act 592); and

    3. Standing Orders of the Parliament of Ghana.

    4.0 Purpose of the Bill

    The purpose of the Bill is to amend the Internal Revenue Act, 2000 (Act 592) to raise the threshold of the 5 per cent withholding tax from fifty currency points to five hundred currency points, abolish the general five-year tax exemption for real estate developers except those who partner government to provide affordable housing, to increase the rate of Gift Tax to 15 per cent and to provide significant

    improvement in the reliefs for persons with dependant spouses and dependant relatives.

    5.0 Contents of the Bill

    The Bill contains a total of four (4) clauses.

    Clause 1 seeks to amend section 11 of the Internal Revenue Act, 2000 (Act 592) by substituting subsection (6) to give a five- year tax exemption to companies certified by the Minister responsible for Water Resources, Works and Housing as engaged in the construction of low-cost affordable residential premises.

    Clause 2 amends section 39 of Act 592 by raising the various levels of tax in that section concerning presumptive taxes for Vehicular Income Tax.

    Clause 3 proposes to raise the threshold of the five per cent withholding tax from fifty currency points to five hundred currency points by amending section 84 (2) of Act 592 in that regard.

    Clause 4 raises the rate of Gift Tax from 5 per cent to 15 per cent.

    6.0 Observations

    The Committee observed that the threshold of the five per cent withholding tax has remained at fifty currency points since 2001 in spite of general price increases and the volume of business. It is, therefore, being changed from fifty currency points (GH¢50.00) to five hundred currency points (GH¢500.00).

    The Committee noted that a provision was made under the Internal Revenue Act, 2000 (Act 592) for companies engaged in the construction for letting or sale of residential premises to enjoy a five-year exemption period. This was purposed

    to create affordable accommodation for middle to low income earners. Unfortunately, real estate developers focused on building for the high and upper class of the society while abandoning the original purpose.

    In the light of this therefore, the general five year tax exemption for real estate developers is being abolished, except for developers who partner the Ministry of Water Resources, Works and Housing to provide low-cost affordable housing to low income earners.

    The Deputy Minister for Finance and Economic Planning, Hon Seth Terkpeh informed the Committee that Gift Tax was being brought at par with Capital Gains Tax at l5 per cent to avoid possible shifting of Capital Gains to Gift Tax.

    In line with the aim of ensuring social equity in Government policy, the Committee was informed that significant improvements in reliefs are being Introduced for taxable persons with dependant spouses/children/relatives. This is aimed at cushioning such taxpayers against these social burdens.

    7.0 Conclusion

    The Committee, having scrutinised the Bill, found that it its passage would help in equitable distribution of income.

    The Committee, therefore, recommends to the House to pass the Internal Revenue (Amendment) Bill, 2010.

    Respectfully submitted.
    Mr Ignatius B. Awuah (NPP - Sunyani West) 3:20 p.m.
    Thank you, Mr Speaker, for giving me the opportunity to contribute to this Motion.
    Mr Speaker, it is good to have tax reliefs but then it is also important that we look at the reliefs that are being given and the effect that they will have on the total revenue of the State. We should also look at our tax policies and the way they also affect our total income generation.
    We are told that Gift Tax is being increased to avoid people evading or trying to dodge Capital Gain Tax and what have you. This is one area we have to be very, very careful of because we live in a country where most of our people get remittances, receive gifts, and many of these people who receive gifts are people who otherwise, perhaps, cannot afford to pay the taxes which are being recom- mended now. So that is one thing I would want us to also look at.
    Mr Speaker, apart from that, we should also look at, especially, the withholding tax of five per cent, which is being increased to 15 per cent in terms of foreign supplies. This is, indeed, going to increase the cost of projects which are financed or are constructed by foreign companies because at the end of the day, the contractor will certainly not absorb the cost. He will eventually push all the cost to the person who is asking him to undertake that particular construction.
    So eventually, if Government is going to be the main person asking people to do construction or asking for supplies, then it means that government expenditure in terms of cost of projects is going to increase. So that is also one thing that I would want us to look at.
    Mr Speaker, I would want to simply end here and say that, yes, it is good to increase taxes or to widen the tax net but then we should also be very careful the
    way we tread, such that it will not have a counter production.
    Mr Moses A. Asaga (NDC - Nabdam) 3:20 p.m.
    Mr Speaker, I rise to support the Motion and to say that the taxes that have been introduced are quite selective and do not affect the bulk of the good people of Ghana.
    Mr Speaker, if you look at the five per cent exemption for real estate, it is actually meant for people who are into con-struction of very expensive houses in very prime areas. This is not meant to affect people who are building low-cost houses for workers, teachers, et cetera. And that is the reason for which we think that this is a good tax.
    We know there are very, very expensive houses that are built by real estate agents at very expensive and posh areas. We already know that we do not have a very efficient property tax system in Ghana and therefore, this is a way we will be able to attract portions of the property taxes that we are not able to collect.
    Mr Speaker, on the withholding tax, I think that Ghanaian suppliers are not being affected. So if one is a Ghanaian, one will still be paying the five per cent withholding tax. This is targeted at foreign companies that will be doing supplies. I believe that this would even increase and improve the competitiveness of Ghanaian suppliers.
    Papa Owusu-Ankomah 3:30 p.m.
    On a point of order. It seems the Hon Member is misleading the House. He is saying that the withholding tax is only supposed to
    apply to foreign suppliers. I do not know which part of the Bill says it is restricted to foreign suppliers. If he could assist us by pointing out to that part of the Bill or clause of the Bill that says this is restricting to foreign suppliers. He should not import his understanding of what the intention is into the Bill and thereby mislead this House.
    Mr Speaker, the Hon Member should withdraw his misleading statement.
    Mr First Deputy Speaker 3:30 p.m.
    You have corrected him. He is not on his feet.
    Hon Members, I am going to put the Question.
    Mr Hackman Owusu-Agyemang 3:30 p.m.
    --rose -
    Mr First Deputy Speaker 3:30 p.m.
    Oh sorry, Member for New Juaben North.
    Mr Hackman Owusu-Agyemang (NPP - New Juaben North) 3:30 p.m.
    Mr Speaker, I think we must hasten slowly about issues of taxation because there are different views on this particular matter and Singapore's experience and other experiences are also relevant in this respect.
    Mr Speaker, I have a copy of this Bill, and as I said, a copy of the Report. It says the withholding taxes, for example, move from 50 currency points to 500 currency points. By inference -- I do not even see it here but by inference, it is 15 per cent.
    Mr Speaker, inasmuch as I do not see in the Bill, that this is restricted to foreign companies only, it becomes difficult to understand. Mr Speaker, in fact, if you have the District Assembly, when you have to do a governmental purchase, they add it on to the cost of the item because they know that they cannot retrieve it.
    Mr Speaker, how much profit is one supposed to make? At the end of it,
    Mr Hackman Owusu-Agyemang (NPP - New Juaben North) 3:30 p.m.


    withholding tax is meant as an advance payment of one's tax. How much profit does a businessman make or any business make for us to say that 15 per cent of it should be withheld? Mr Speaker, it just does not make sense if you know what business is about. Even five per cent is very difficult to accept.

    In fact, Mr Speaker, the profit we all know that people make in this country is for the banks. The banks are the ones which are making the profit.

    At the end of the day -- I have said it on this floor before, that if we had chapter 11, as the Americans have, or if we declare bankruptcy, a lot of companies will declare bankruptcy. They do not even make five per cent profit. But they keep going on, most of the businesses.
    rose
    Mr Owusu-Agyemang 3:30 p.m.
    Yes, I think you have a point of order. Maybe, you will explain. Yes, explain, go on because I do not understand.
    Mr First Deputy Speaker 3:30 p.m.
    Hon Member, continue.
    Mr Owusu-Agyemang 3:30 p.m.
    Mr Speaker, I yield to him so that he can -
    Mr First Deputy Speaker 3:30 p.m.
    Hon Member, I am in-charge of this House, you are on your feet; please, continue.
    Mr Owusu-Agyemang 3:30 p.m.
    Mr Speaker, what I am saying is that, the Bill itself does not make clear whether the withholding
    tax is for every activity within the economy or whether it is only for real estate developers and the Hon Chairman was about to explain and I was yielding to him to explain, so that I can understand and before I conclude, I can make an informed -
    Mr First Deputy Speaker 3:30 p.m.
    Hon Member, go on and conclude. They will afford the Minister for Finance and Economic Planning the opportunity to do the winding-up and explain whatever doubts you have on your mind.
    Mr Owusu-Agyemang 3:30 p.m.
    Mr Speaker, so what I am saying is that, whatever industry in the economy withholding tax refers to -- it will certainly hit businesses very hard and at the end of the day -- especially, governmental supplies, when you go there, those of us who work with the Common Fund and what have you, you find that they add it on to take it out. This is because nobody makes profit to the extent that the Government's part of it -- 25 per cent of the profit will be equivalent to 15 per cent.
    Mr Speaker, this is a weird calculation which I have never seen. I do not think that it was thought through properly. So what we are saying is that if one pays 15 per cent withholding tax, it is assumed that one has made profit and that 25 per cent of the profit now translates to 15 per cent.
    The mathematics is certainly wrong, Mr Speaker. Unless of course, businesses are supposed to be crippled in this country and do not go on. The problems that we have in this country are that the taxes are so much that people then find other ways of avoiding them. So unless the Hon Minister can explain it to me, the way I understand the Bill as it is now and the Report of the Committee, then I am afraid I am not able to support it. I believe it is not in the interest of businesses in this country, so maybe, they will explain as
    you have so directed.
    Deputy Minister for Finance and Economic Planning (Mr Seth Terkpeh): Mr Speaker, in the first place, the withholding tax being discussed is five per cent. What we are doing is to increase the amount which makes it eligible. This is withholding tax on contracts and the threshold amounts to the withholding tax has been at GH¢50 for a very long time. We are increasing it from GH¢50 to GH¢500 and so it is to reduce administration and compliance cost.
    Secondly, the withholding tax is imposed when one does not file returns. If one believes it is high and files the returns, one is given a tax clearance certificate and on production, there is no withholding tax. Therefore, the with-holding tax is a compliance mechanism. Because there is widespread none compliance; it makes it necessary and it makes it look very pervasive.
    Mr Speaker, the reference to 15 per cent is in respect to capital gains and the gift tax, that is also a withholding mechanism and the simple point that is being made here is that to the extent that capital gains can pass as gift, then we need to have the same rate.
    Mr Speaker, to illustrate simply, if I sold a house and I made a capital gain of a thousand, it will attract 15 per cent. If the gift tax remains at five per cent, I can pass off the sale as gift and reduce my tax burden from 15 per cent to five per cent. Therefore, we are proposing that because it is easy to do this type of arrangement and to avoid tax -- not necessarily to evade tax but to avoid tax -- we must have an equivalent so that we will minimize the risk of this tax avoidance.
    Finally, Mr Speaker, the point has been made that we are increasing taxes, particularly, when it comes to the presumptive taxes. Mr Speaker, I produced it before the Committee, an illustration that if you take an employee who earns GH¢12,000 a year, the effective rate for that employee is 15 per cent.
    If you took the articulated truck owner, not the driver who earned the same amount, even at the new rates that are being proposed, the effective rates for that articulated truck owner is a mere three per cent and yet we are supposed to be paying taxes at the same rate once one earns an income.
    So Mr Speaker, I think that there are a lot of principles behind the proposals that we are making . Taxation is not just about revenue; taxation is also about equity and fairness among taxpayers and therefore, the fact that I am an employee and the accountant withholds taxes from my pay and I have to pay 15 per cent, does not preclude the transport owner from whom it is very difficult to collect the taxes to pay taxes at 3 per cent.
    I am saying therefore, that even the rate of increase from GH¢90.00 to GH¢200.00 for this category of taxpayers will make them pay a tax at a mere three per cent, which is far below what employees are paying.
    Mr Kwame Osei-Prempeh (NPP - Nsuta/Kwamang/Beposo) 3:40 p.m.
    Mr Speaker, I rise to support the Motion and in doing so, make a few remarks.
    Mr Speaker, I have a great worry about the waiver of the five per cent for estate developers except those who partner with the Ministry of Water Resources, Works and Housing. Mr Speaker, all those who are certified by the Minister for Water Resources, Works and Housing are building affordable houses.
    Mr First Deputy Speaker 3:40 p.m.
    Hon Member, address the Chair.
    Mr Osei-Prempeh 3:40 p.m.
    So Mr Speaker, I believe that this initiative by Government is counter productive. At the end of it, it is going to affect the poor man more than the rich person and I believe we do not need this kind of law. I believe that I will support this but I will propose an amendment that we delete this because it will hurt the poor people of this country
    more than the rich.
    Mr First Deputy Speaker 3:40 p.m.
    Hon Minister, wind up.
    Dr Duffuor 3:40 p.m.
    Mr Speaker, I would like to take this opportunity to thank my Colleague Hon Members for supporting us but call the attention to the tax measures we have proposed.
    Out of the about 20 tax measures we have proposed, Mr Speaker, about 14 did not bring about any additional taxes; they were only meant to restructure the tax reform. They were meant to improve upon the government cash flow; they were meant to bring about equity, so I will urge them to look at the tax measures we have proposed.
    It would be very wrong for them to think that we have done this to discourage business, rather it is the other way round. So they should take their time and look at these measures.
    On that Mr Speaker, I would like to thank all of you for this opportunity.
    Mr First Deputy Speaker 3:40 p.m.
    That brings us to the end of the debate on the Second Reading.
    Mr Owusu-Agyemang 3:40 p.m.
    Mr Speaker, you said the Hon Minister would explain. I asked a question whether the 15 per cent withholding tax is across board in the whole economy or only in the construc- tion sector. If it is for the whole economy, every activity in the economy -- That is what I asked and that is where I wanted an answer, so that I could argue my case and you said he would explain.
    Mr First Deputy Speaker 3:40 p.m.
    I thought the Deputy Minister for Finance and Economic Planning explained that and he did say that it was a compliant tool. If you file your tax returns, it does not apply to you. That was the response that he gave.
    Anyway, Hon Minister, he wants to hear from you.
    Dr Duffuor 3:40 p.m.
    Mr Speaker, ask him to look at page 51 of the Budget Statement and look at number 160 on withholding tax. It is not like what he is describing; I want him to look at it.
    Mr First Deputy Speaker 3:40 p.m.
    Very well.
    Question put and Motion agreed to
    The Internal Revenue (Amendment) Bill, 2010 was accordingly read a Second time..
    Suspension of Standing Order 128
    Dr Duffuor 3:40 p.m.
    Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 128 (1) which require that when a Bill has been read a Second time, it shall pass through a Consideration Stage, which shall not be taken until at least, forty-eight hours have elapsed, the Consi-deration Stage of the Internal Revenue (Amendment) Bill, 2010 may be taken today.
    Mr James A. Avedzi 3:40 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    .
    Resolved accordingly.
    BILLS -- CONSIDERATION 3:40 p.m.
    STAGE 3:40 p.m.
    rose
    Mr First Deputy Speaker 3:40 p.m.
    Hon Member, I did not see you on your feet.
    Mr Osei-Prempeh 3:40 p.m.
    Mr Speaker, I am very sorry.
    Mr First Deputy Speaker 3:40 p.m.
    You know the procedure.
    Mr Osei-Prempeh 3:40 p.m.
    Mr Speaker, I am very sorry.
    Mr Speaker, clause 1 (6) (a), a company engaged in the construction for sale or letting of low-cost and affordable -- Mr Speaker, I want to seek your permission to move an amendment.
    Mr First Deputy Speaker 3:40 p.m.
    Very well.
    Mr Osei-Prempeh 3:40 p.m.
    Mr Speaker, I beg to move, clause 1, subclause (60) (a) delete.
    Subclause 6 (a) says that --
    “a company which constructs low- cost and affordable residential premises shall be issued with a certificate by the Minister for Water Resources, Works and Housing to qualify for the five per cent tax exemption for tax exemption.”
    Mr Speaker, I am saying that this is undesirable. In the first place, this is going to hurt so many people. Secondly, why do we give the power to the Minister, a politician? Mr Speaker, we live in this country; we know how such powers are used. If I go there and the Minister for Water Resources, Works and Housing does not like my face, he will not give it to me. If he goes and he likes him, it will be given to him.
    I believe that the people who are constructing houses, they are only very few, the mega rich who could buy --
    But most of the houses are two- bedroom, three-bedroom. They are private people doing their jobs. They do not need to be under the thumb of the Minister for Water Resources, Works and Housing
    Mr Osei-Prempeh 3:40 p.m.


    in anyway. Therefore, my prayer is that Members of this House should support me so that clause 1, subclause (6) (a) is deleted from the Bill.
    Mr Terkpeh 3:50 p.m.
    Mr Speaker, subclause (6) (a) of the Bill is very important for the targeting that we wish to make. Mr Speaker, I wish the House to note that the particular incentive under consideration has been in existence since the 1980s. Indeed, this was supposed to have a sunset provision.
    Normally, when we allow for such incentives within difficult times, we have sunset provisions of about three to five years and then the incentive is removed. If we do not remove the incentive, we end up distorting the tax regime and I made a point about equity already, so I would not want to belabour the point.
    But Mr Speaker, nonetheless, consi- dering that housing is very important to the economy and consi-dering the points we have made several times about the housing stock, all that this provision is seeking to do is to target the incentive to the areas where the original law was intended, which is to target low- cost housing.
    Mr Speaker, it is not out of place to have a Ministry supervise this provision. Indeed, this august House has on several occasions -- such as the Value Added Tax where exemptions are granted for basic goods and for education purposes, the power to target the incentive properly is entrusted with either the Minister for Health in the case of health services, or the Minister for Education in the case of education. And it is in the spirit of this that the Ministry of Water Resources, Works and Housing is being requested to exercise
    this function.
    Mr Osei-Prempeh 3:50 p.m.
    Mr Speaker, I have heard the Hon Deputy Minister.
    Mr Speaker, if this Bill had indicated that if a house costs so much it is low-cost, and if it costs so much, it is for the rich people and therefore, let us cap it there; everybody might have known what the ground rules are. It is not so.
    Now, they are just imagining. How many houses have been built in this country for the past ten years? How many people have benefited? How many people have had the tax exemption? How many of those houses have gone to the rich? How many have gone to the poor? If we are able to get this, then we can agree with you. In the absence of that, the basis of the law is porous and unacceptable, and I believe that anybody who thinks about the poor people of this country -
    Mr Speaker, if you go to the Spintex Road and count the houses which have been built by estate developers there, go round the Ministries, the banks and others, you would find that the emerging middle class starting their families, they buy the two-bedrooms and three-bedrooms. Members of Parliament do not go and buy two-bedrooms.
    So are they taxing those people, are they saying that they are rich enough so that they should be levied, they should buy at higher prices? I mean, it is untenable and unacceptable. I believe that we should put the interest of our people at heart and reject this so that the tax at least, remains for now.
    We are being told that we have housing deficit of over one million and that is why we are giving incentives to STX to come and build. Why can we not give incentives to our own people? Why are we denying them? STX houses for GH¢50,000.00, are
    they for the poor people of this country? [Interruptions.] STX houses, are they for rentals, for letting or they are for sale, mortgaging? So why burden the private sector, which are building for our poor people?
    I believe that the Ministry is not being fair. At the end of the day, this amendment will go to hurt the poor people. Therefore, I call on Hon Members to reject the amendment.
    Papa Owusu-Ankomah 3:50 p.m.
    Thank you very much for the opportunity, Mr Speaker, you are giving me to contribute to this debate.
    Mr Speaker, I have a problem with this amendment in the sense that, it is vague and uncertain. Why do I say that? What do we mean by “low-cost and affordable residential premises?” Is there a statutory definition for it? And when we are talking about low-cost and affordable residential premises, for instance, does it mean that when the rent is GH¢50.00 a month, that makes it low-cost and affordable?
    Are we by this amendment denying companies that would put up some houses in Airport Residential Area, and put up some houses too in, let us say, Sekondi Zongo? Are we denying them?
    In fact, probably, the intention behind it may be good - to assist companies that provide residential premises. But if that is the case, then we must define what is “low-cost”, or we must give a statutory indication of the indices that would be used by, let us say, the Ministry of Water Resources, Works and Housing to determine what is “low-cost and affordable housing”.
    As far as I am concerned, these STX houses for instance, can never be low-cost and affordable. They can never be. Even the Sakumono SSNIT Flats, can we say they are low-cost and affordable? Why,
    because how much is the rent?
    Mr Speaker, I am saying that this amendment may be well-intentioned but we must really think through. So if you do not partner the government, you cannot provide low-cost and affordable housing. That is what it means. What sort of ridiculous proposal is that?
    We have the State Housing Company. Why did not the Government not look for money for the State Housing Company to provide houses? What are we talking about? [Interruptions.] So I am urging this House to reject it - [Interruptions] - To reject this amendment. How can you give -
    Mr First Deputy Speaker 3:50 p.m.
    Hon Member for Sekondi, are you sure you know what you are doing?
    Papa Owusu-Ankomah 3:50 p.m.
    Yes.
    Mr First Deputy Speaker 3:50 p.m.
    Because there is an amendment filed by the Hon Member of Parliament for Nsuta/ Kwamang/Beposo and so, if you are saying that we should reject it -
    Papa Owusu-Ankomah 3:50 p.m.
    Sorry, sorry.
    Mr First Deputy Speaker 3:50 p.m.
    If you say we should reject the amendment, you are saying that - [Laughter.]
    Papa Owusu-Ankomah 3:50 p.m.
    No, Mr Speaker. I am saying that I am calling upon this House to reject this proposed amendment by this Bill. That is the point. This Bill is seeking to amend the parent Act in respect of the tax holiday granted to estate developers and in what I have seen here, I am just wondering. So the State Housing Company Limited, does it provide low-cost housing? [Some Hon Members: Yes.] Yes, most Members are staring at me because really, if we are talking about three-bedrooms, they do not provide houses for rental.
    I would think that this typifies the
    confusion in the mind of Government as to the way it wants to tackle this housing problem. [Interruptions.] Comment is free; that is why we are in this House. I am saying that this typifies the confusion in the mind of Government how it wants to tackle the housing problem in this country. This is because if that were not to be the case - [Interruption.]
    Mr First Deputy Speaker 3:50 p.m.
    Hon Member, wind up; you have made your point.
    Papa Owusu-Ankomah 3:50 p.m.
    Mr Speaker, if that were not to be the case, they would not bring this amendment. Let us be clear in our minds what we want and let us know the objective. But with this amendment, I beg to say that it would rather compound than go anyway in solving the housing deficit that we have in this country.
    Mr W. G. Alfred Abayateye 4 p.m.
    Mr Speaker, I rise to ask all Members of the House to support the amendment as proposed in the Bill.
    Mr Speaker, low-cost and affordable housing is known in Ghana. You go to Kumasi, we have the low cost estates. You go to Takoradi, they are there. You go to Saltpond, they are there. You go everywhere, they are there. So low-cost and affordable residential premises are in Ghana.
    Mr Speaker, projects are ongoing at Kpone, projects are ongoing at Akweteman, started by the previous Government. What was the name for them? “Low-cost, affordable”. [Some Hon Members: No, no.] “Low-cost and affordable housing”. The Bill is seeking that companies which assist the Ministry of Water Resources, Works and Housing to provide these things should have -- [Interruption]
    Ms Cecilia Dapaah 4 p.m.
    Mr Speaker, did I hear my Hon Colleague opposite say that there are affordable houses in Akweteman?
    Mr Abayateye 4 p.m.
    Yes, Mr Speaker, I said - Borteyman, they are under construction and they are under construction at Kpone. What are the names attached to them? Those projects have been on going. State Housing Corporation has been in existence. The question I am asking is, when this work was started they were put, aside -
    Mr First Deputy Speaker 4 p.m.
    Hon Member for Sege, the point being made is that, what constitutes a low-cost for purposes of this Bill, so that when you are engaged in it, people can know that, yes, you are entitled to that exemption under this Bill. That is the point -
    Mr Abayateye 4 p.m.
    Mr Speaker, the housing under construction, when they were being done, we were told they were low-cost houses. Some are one-bedroom, two bedrooms, hall and chamber and all that, and that is how they are termed for us. No prices were attached to them for us to know that the one-bedroom house under construction at Borteyman or Kpone is costing GH¢10.00 or GH¢20.00.
    Nowhere was it brought in this House. I have been here. So with what is happening, the law is seeking to amend for people to assist the Ministry of Water Resources, Works and Housing in carrying out this project, to let Ghanaians have a place of rest; if you have a place to sleep, you can think of doing better things for the country. You cannot sleep in the market and come to work. So when these things are being done, they are for the benefit of the Ghanaian. And the point is -
    Mr First Deputy Speaker 4 p.m.
    Hon Member, wind up.
    Mr Abayateye 4 p.m.
    If we give the support
    for this, it would help. There are various companies in Ghana. We happen to meet the Ghana Real Estate Developers Association (GREDA) people; we have Regimanuel Estate Developers, we have ATSC, we have Mannet, all these people are assisting in providing low-cost accommodation for people. So if the law is amended so that they have this tax holiday, it is good.
    I urge all Hon Members to put their weight behind this amendment for the benefit of the Ghanaian.
    Mr First Deputy Speaker 4 p.m.
    Hon Members, I would take the last two.
    The Hon Member for Bantama and then the Minister for Roads and Highways.
    Ms Cecilia Abena Dapaah 4 p.m.
    Mr Speaker, I just wanted to sound a note of caution, because we all know - [Interruptions] -- that there is a deficit of over or close to one million housing units in this nation. That is the figure we are throwing around. And it is on record that between 25,000 and 40,000 units are provided by the private sector. If now - [Interruption]
    rose
    Mr First Deputy Speaker 4 p.m.
    Hon Minister, do you have a point of order?
    Mr E. T. Mensah 4 p.m.
    Mr Speaker, the Hon Member said she was sounding a note of caution, and the question is that, to whom and about what? [Interruptions.] I want to know; caution or warning, what is it about?
    Ms Dapaah 4 p.m.
    Mr Speaker, the note of caution is to all of us, as representatives of the people of Ghana, who have been mandated to represent them in this Chamber, to deliberate on issues concerning national development.
    Mr Speaker, the caution is that if we do not take care, the proposed amendment can kill the real estate industry. This is because, like the Hon Deputy Minister said, since the 1990s, they have enjoyed all these incentives and yet they have not been able to fulfil their mandate. Why is it so? It is because they are already struggling.
    So if we are to abolish all these tax holidays that they are enjoying and rather give them to people who have a bigger capital base, it means our own people do not stand a chance.
    How many companies in Ghana can partner the Ministry of Water Resources, Works and Housing to undertake affordable housing? Even GREDA in all its entirety were not able to compete with the so- called STX; they have been chopped out. All the juicy exemptions have been given to STX and our own people are going to suffer for not being able to deliver due to reasons that we cannot ascribe to them. It is because the conditions were not conducive enough.
    So Mr Speaker, all that I am saying is that we should reject the proposed amendment as clause 1, subclause (6) seeks to do. For the record, the only low-cost houses that have ever been built in this country were undertaken by the Busia Government. [Uproar!] Please, listen to the word I used; it is low-cost and semantically, I mean low-cost and we the previous Government, the Kufuor-led NPP Government -
    Mr First Deputy Speaker 4 p.m.
    Hon Member, you are going out of bounds; we are talking about the Bill.
    Ms Dapaah 4 p.m.
    Mr Speaker, we are confusing ourselves with “low-cost” and “affordable”. That is why I am drawing the distinction. And the affordable houses which were started in the year 2006 should be completed.
    Thank you, Mr Speaker.
    Mr First Deputy Speaker 4 p.m.
    Hon Deputy Minister, what constitutes “low- cost, affordable houses” which would enable people to benefit from a certain kind of exemption? After that then I would come to you. This is because one of the good marks of a good law is the certainty of the law.
    Mr Terkpeh 4 p.m.
    Mr Speaker, it is for this
    precise reason that we have indicated that the Ministry of Water Resources, Works and Housing would be the institution that would be responsible for this, because they have the expertise to determine on a certain basis, whether by cost location; there are several criteria. Therefore, this is why we took the precaution of not leaving it with the tax institutions, but with an appropriate agency -
    Mr First Deputy Speaker 4 p.m.
    Hon Deputy Minister, did you hear the Hon Member who moved the amendment say that if you were to give certain criteria or a guideline, he would not take objection to this amendment? Did you hear him say that? I thought that those proposing the Bill should have taken a cue from Hon Osei-Prempeh.
    When he was moving the amendment he made a point; he said we could not pass a law and leave it to the discretion of everybody that we do not know, whether it is the two-bedrooms or the price that constitutes low-cost. This can lead itself to abuse and that is a legitimate point that is being raised. So I want that point to be clarified on this matter.
    Minister for Roads and Highways, I will call you, then Hon Majority Leader. Or you want to make a brief intervention? Very well.
    Mr Avoka 4 p.m.
    Mr Speaker, I think that the point was raised and then your intervention, is in the right direction. As it is now, it is ambiguous. And as you have rightly pointed out, there must be certainty in the law. In the light of this, I think that we should defer this matter, so that they would consult after this, so that tomorrow
    morning, if we have a very clear provision, we can take a decision.
    Mr First Deputy Speaker 4 p.m.
    I thought that this problem could be resolved today. By bringing a regulation to this House to define those matters; while we defer the matter? You can go and resolve it around those lines.
    Mr Joe K. Gidisu 4:10 p.m.
    Mr Speaker, I do not think there is any ambiguity about a low-cost and affordable housing -- [Interruptions.]
    Mr Speaker, the situation with regard to the apprehensions being highlighted from my Hon Colleague opposite, I find it very difficult to reconcile.
    Two years ago, when they were on this side of the House, there was the strong conviction that Government could initiate the building of affordable houses - affordable. And the philosophy behind it being “affordable” that Government would take commanding heights in making sure that those buildings were within the limits of the average Ghanaian.
    So in the same vein, I would want to assure them that this Government, being a social democrat - [Interruption] - Government, will definitely make sure that those companies that would be partnering Government, would be ready to provide houses that would be affordable.
    So I want to assure Hon Members that there is no apprehension - [Inter- ruption] - Yes. So I want to say that I want to support the amendment as it stands to amend the present Bill and that the Government -
    Mr First Deputy Speaker 4:10 p.m.
    Hon Minister conclude -
    Mr J. K. Gidisu 4:10 p.m.
    In conclusion, definitely, Government would make sure that those companies that will partner it will build affordable and low-cost houses for the Ghanaian people.
    Mr First Deputy Speaker 4:10 p.m.
    Hon Members, I will defer this matter but before I do so, I would want to find out whether all the clauses - because the amendment is only in relation to - clause 1 (6) (a), we take the rest and then leave that one, so that when we come, we would not waste so much time. We can take the rest of the clauses and then we defer that particular clause. And when we come back to it, we would only limit ourselves to that particular clause.
    Mr Owusu-Agyemang 4:10 p.m.
    Mr Speaker, in that case, I have an amendment to clause 4.
    Mr First Deputy Speaker 4:10 p.m.
    Very well. Yes, all right, thank you.
    Yes, Hon -
    Mr Moses Asaga 4:10 p.m.
    Mr Speaker, I think that the Hon Majority Leader has given an indication that the conclusion is ambiguous and that is what we are supporting; that the conclusion is ambiguous. So there are four clauses; we can take three and just leave that one and then come back -
    Mr First Deputy Speaker 4:10 p.m.
    Hon Member, that is precisely what I am saying because the amendment --
    rose
    Mr First Deputy Speaker 4:10 p.m.
    Hon Moses Asaga -
    Mr Asaga 4:10 p.m.
    Sit down? Why? Mr Speaker, called me.
    Mr First Deputy Speaker 4:10 p.m.
    Hon
    Asaga, I called you. That is precisely what I am trying to do.
    Mr Asaga 4:10 p.m.
    Yes, you called me.
    Mr First Deputy Speaker 4:10 p.m.
    We have to defer action on clause 1 -
    Mr Dery 4:10 p.m.
    Mr Speaker, on the lighter side, I am surprised that Hon Asaga at his altitude was - you took note of him instead of me, who is on the higher altitude.
    That is just on the lighter side.
    Mr Speaker, I think that the Hon Leader of the House has proposed that we stand this thing down - [Interruption] - yes -- so that we can together work out a solution for it.
    Mr Speaker, if we do not take the approach that the Leader of Government Business has indicated and which we agree with on this side, then we are going to open the floodgates. This is because my Uncle was going to file an amendment for the first clause. And I think all these can be addressed if we stand it down and talk among ourselves. But if we want the longer route, let us go on.
    Mr First Deputy Speaker 4:10 p.m.
    The amendment that we are considering was moved by the Hon Member for Nsuta/ Kwamang/Beposo. It is in relation to the clause 1 of the Bill; that one is what we think there is an ambiguity; that is the one that is being deferred. Let us take the other clauses, so that when we come back to it tomorrow, we would not have a longer time wasting on this Bill. That is the point that I am making. The ambiguity is with regard to clause 1.
    As for the one that the Hon Member for New Juaben North is talking about, it is a matter of the percentage. It is not a matter of ambiguity; it is a matter of the amendment that can come back in the form

    of changing of the percentage. So let us - so we have deferred clause 1.

    Clause 2 - Section 39 of Act 592 amended.

    Question put and amendment agreed to.

    Clause 2 as amended ordered to stand part of the Bill.
    Mr First Deputy Speaker 4:10 p.m.
    Clause 3 - Section 84 of Act 592 amended.
    Mr Owusu-Agyemang 4:10 p.m.
    Mr Speaker, this is fairly complicated but according to the Report of the Committee, clause 3 proposes to be the only part from 50 credit points to 500 points, that is, from 5 per cent to 15 per cent.
    Mr Speaker, I want to propose that it raises the withholding tax to 10 per cent and not 15 per cent. Because as I say, for example, when I have 21,000 -
    Mr First Deputy Speaker 4:10 p.m.
    Hon Member, your amendment is with regard to clause 4 -
    Mr Owusu-Agyemang 4:10 p.m.
    No I am starting from clause 3.
    Mr First Deputy Speaker 4:10 p.m.
    Very well.
    Mr Owusu-Agyemang 4:10 p.m.
    Mr Speaker, I beg to move, claluse 3, delete 15 per cent and insert 10 per cent.
    Instead of 15 it becomes 10 per cent.
    Mr First Deputy Speaker 4:10 p.m.
    Hon
    Member, what do we have there? Look at clause 3 - I am looking at the Bill.
    Mr Owusu-Agyemang 4:10 p.m.
    Mr Speaker, if you look at the Committee's Report -
    Mr First Deputy Speaker 4:10 p.m.
    Hon Member for New Juaben North, I am
    looking at the Bill; it is the Bill that we are considering; it is not the Committee's Report that we are considering. It is the Bill.
    Mr Owusu-Agyemang 4:10 p.m.
    Yes, Mr Speaker, and the Bill -
    Mr First Deputy Speaker 4:10 p.m.
    There is no “15” in clause 3. That is what I am telling you, Hon Member.
    Mr Owusu-Agyemang 4:10 p.m.
    Mr Speaker, I am sorry, you were not listening.
    I am saying that, 500 currency points is equivalent to 15 per cent. That is what I said. This is because, if we say currency points - [Interruption] - from 50 to 500 points. That is from 5 per cent to 15 per cent. And I am saying that it should be 10 per cent. In other words, something like 350 currency points.
    I want to bring it down because the point that I support is that, for example, when I was given 21,000 by the GETFund to pay for the -- when we went to the Municipal Assembly, 5 per cent of it brought it down from 21,000 to 18,000.
    Mr Speaker, so everything that we buy for Government or whatever, I think that the equivalent of 10 per cent is a reasonable amount to own. Because 15 per cent assumes that corporate tax being 25 per cent, that you would have made 25 per cent out of this 15 per cent -
    Mr First Deputy Speaker 4:10 p.m.
    I want to follow the argument that you are making.
    Chairman, is the 50 currency points the same as 5 per cent?
    Mr Avedzi 4:10 p.m.
    Not at all. Mr Speaker, he is misleading the House.
    Mr First Deputy Speaker 4:10 p.m.
    This is because I want to be very sure before I follow -
    Mr Owusu-Agyemang 4:20 p.m.
    Mr Speaker, how am I misleading the House? I am told that 500 currency points is equivalent to 15 per cent.
    Mr Speaker, the Report of the Chairman signed by the Committee - maybe, the Chairman is very confused. It says that “clause proposes to raise the threshold from 5 per cent withholding tax from 50 currency points to 500 currency points amending section 84 (2) of Act 592 . . .” [Interruptions.] - Why do you not let me understand? So that we will understand what I want done -
    Mr First Deputy Speaker 4:20 p.m.
    Hon Member --
    Mr Owusu-Agyemang 4:20 p.m.
    Mr Speaker, the Chairman is very confused, not me. Mr Speaker, the Chairman says that clause 3, 50 currency points equals 5 per cent and that 500 currency points equals -- which is in the Bill -- 15 per cent.
    Mr First Deputy Speaker 4:20 p.m.
    Which part of the Report are you referring to? Which page?
    Mr Owusu-Agyemang 4:20 p.m.
    Mr Speaker, page 3, the top. The Chairman is very confused. I am referring to the Bill that says 350 points, did you not hear?
    Do you see the point?
    Mr Avedzi 4:20 p.m.
    Mr Speaker, the Hon Member is completely misleading the House. There is no part of the Report that says that the 50 currency points that
    is being increased to 500 currency points is equal to 5 per cent and 15 per cent. No.
    The 5 per cent and then the 15 per cent here are talking about the Gift Tax, not the threshold. The currency point here is the cedi, so the 50 currency points is GH¢50. He is misleading the House.
    Dr A. A. Osei 4:20 p.m.
    Mr Speaker, I think whether advertently or inadvertently, when the Deputy Minister was trying to clarify, he sought to make an equivalence. Because at committee, this came up again. The question was asked if 50 currency points translates to 5 per cent, what is 500 currency translated into? And the staff there gave the number 15 per cent, and that is where it is coming from.
    But he can at this point, tell us the equivalent, so that the Hon Member can go in that direction. Because if we have equated 50 to 5 per cent, it will make sense to equate 500 to something.
    As I said, I do not think his mind was up to it but he had the impression it was 15 per cent. That is where he is getting the number, not in the Report. So, he could give us the equivalence.
    Mr First Deputy Speaker 4:20 p.m.
    Hon Deputy Minister, do you have the equivalence? What is the equivalence of 50 currency points and 500 currency points?
    Mr Terkpeh 4:20 p.m.
    Mr Speaker, a currency point as used today is Ghana cedis. So, 1 currency point is GH¢1. When we refer to 50 currency points, it is GH¢50 and it is being therefore, increased from GH¢50 to GH¢500 and what this means is that the rate remains the same; it is the same 5 per cent. Then what it means is that, pre-viously, for example, if you supplied goods to the Ministry of Education, immediately you supplied goods up to GH¢50, they would have to withhold. We are saying that this is too trivial an amount and this is what is being increased to GH¢500 because in all probability, somebody supplying goods at GH¢50 is

    below the taxable threshold, so this is the point that we are making.
    Mr First Deputy Speaker 4:20 p.m.
    Hon Member, have you got the explanation now?
    Mr Owusu-Agyemang 4:20 p.m.
    Mr Speaker, the thing is not connected in a way that the lawmakers could understand. I wonder how the ordinary man in the street would be able to do so. What I am asking is that, from his own explanation, he says that the withholding tax is going from 5 per cent to 15 per cent. I asked whether through the economy -- because in the Budget, it says for foreign supply. So, I asked the question, is it through the whole economy? And he said, “yes”. So, it is he who is confusing everybody. The Chairman of the Committee is completely lost.
    Mr Terkpeh 4:20 p.m.
    Mr Speaker, the Budget, if I am not mistaken, makes reference to three withholding taxes.
    The first is the general withholding tax contracts, that remains at 5 per cent.
    Secondly, it makes reference to Capital Gains and a Gift Tax. The Gift Tax at 5 per cent, which could be withholding, is being increased to 15 per cent because of the reason I gave earlier, and that should not be confused with the previous one I mentioned.
    Thirdly, the Budget makes reference to withholding taxes payable by non- resident persons and that is - Yes, so we have three different types of taxes under consideration and we should not be confusing these three at all.
    Mr Owusu-Agyemang 4:20 p.m.
    Mr Speaker, my understanding is that and I want this recorded, for domestic taxes, the withholding tax remains at 5 per cent. Is that his understanding? I want him to confirm that. I think I have no problem. Can he confirm that for domestic supplies,
    the withholding tax stays at 5 per cent? Is that what he is saying?
    Mr Terkpeh 4:20 p.m.
    Yes, Mr Speaker. The withholding tax, I need to be very specific, we need to be careful. The withholding tax on contracts remains at 5 per cent. What is being increased is the amount -- the threshold at which we begin to apply this tax. That is what is changing.
    Mr First Deputy Speaker 4:20 p.m.
    Hon Member, this amendment, according to the Deputy Minister is talking about the threshold. This clause 3 of the Bill is talking about the threshold. It is the threshold that they are taking from 50 currency points to 500 currency points. It is the threshold before they apply the withholding tax.
    Mr Owusu-Agyemang 4:20 p.m.
    Mr Speaker, that, I will understand.
    Mr First Deputy Speaker 4:20 p.m.
    Very well.
    Mr Owusu-Agyemang 4:20 p.m.
    But if that is the case -- if you look at page 45 of the Budget Statement, now, they referred to the 5 per cent for local supply; if you go to page 51, it talks about foreign companies going to 15 per cent. Now, all I want to know is to understand. It is very complicated; these currency points and what have you. All I want to understand is that, the Hon Minister should tell us if in local parlance, it is not only contracts which are done; what about supplies, what about sales, ordinary people trading, all these, would it be 5 per cent or would it be 15 per cent? If he implies that it is at 5 per cent, I have no problem with it. That is what he has to do as well as --
    Mr Terkpeh 4:20 p.m.
    Mr Speaker, at page 45 of the Budget Statement, we spoke about the 5 per cent withholding tax, which is a tax, as I explained, on the value of goods supplied to an institution, if you
    were not to file regularly and do not have a tax clearance certificate. Indeed, that paragraph does not even use currency points. That paragraph uses Ghana cedis and it says that it should be increased from 50 currency points (GH¢50) to 500 currency points (GH¢500), so that explains the first point for the Hon Member.
    Then when you go to page 51 of the Budget Statement, which is what he is referring to now, which is not the subject of the amendment under consideration -- We are talking about the fairness of a domestic company or domestic enterprise paying corporate taxes or business taxes at 25 per cent, whereas a foreign firm that comes to Ghana to do business and for which we have to withhold, it is as low as 5 per cent.
    We are saying that it puts the Ghanaian businesses at a competitive disadvantage because it is the only mechanism you can use to withhold the tax on foreign businesses -- the withholding tax.
    So, in order not to put domestic taxes at the competitive disadvantage, we want to increase the withholding tax. And in the event that they are permanent establishment or what they can file, so that has a different rationale from what is under consideration.
    Mr First Deputy Speaker 4:30 p.m.
    Hon Members, I am going to put the Question because this is talking about threshold. If you want to move an amendment to the threshold, you move the amendment now.
    Mr Owusu-Agyemang 4:30 p.m.
    Mr Speaker, the confusion comes because if you read the Budget, it says, “the threshold of 5 per cent withholding tax will rise from 50 currency points (GH¢50.00) to five
    hundred currency points (GH¢500.00)”. If it is the threshold, fine, and then the second one on page 51 where it refers to foreign - it is not even contained in this Bill. So that is it. My understanding is that, article 3 will refer to all transactions within the economy.
    Mr First Deputy Speaker 4:30 p.m.
    Hon Member for New Juaben North, we are at the Consideration Stage of a -- if you have an amendment, file it and let me put the Question because he has given explanations again and again.
    My understanding of this particular amendment is that it seems that what you are talking about is not this particular clause, because they are only talking about threshold where they will apply the withholding tax which has been moved from 50 currency points to 500 currency points. That is all that this particular clause is talking about.
    Mr Owusu-Agyemang 4:30 p.m.
    Mr Speaker, if that is your understanding and that is the Ministry of Finance and Economic Planning and Hon Seth Terkpeh's understanding, fine; Internal Revenue Service (IRS) understands it that way, fine. Then I understand, 5 per cent, right.
    Question put and amendment agreed to.
    Clause 3 as amended ordered to stand part of the Bill.
    Mr Owusu-Agyemang 4:30 p.m.
    Mr Speaker, I was just saying that the 15 per cent of foreign supply did not even appear in the section that deals with withholding tax.
    Mr First Deputy Speaker 4:30 p.m.
    Hon Member, you are mourning more than the chief mourners. What they bring to us is what I will consider; if they do not bring it, it means that it is not going to apply -- Yes, what they brought to us is what we are working on.
    Mr Owusu-Agyemang 4:30 p.m.
    Very well, Mr
    Speaker. Because that was what caused the confusion - that is why I think that the IRS, because we have not brought to say specifically that the foreign supplies will attract l5 per cent -- I bet you, Mr Speaker, I have been in this business for over 20 years and IRS, if you do not specify that as the foreign supplies, it will charge everybody l5 per cent. You watch and see.
    Clause 4 ordered to stand part of the Bill.
    Mr First Deputy Speaker 4:30 p.m.
    Hon Members, we have deferred clause 1 of the Bill and until we resolve the issues pertaining to it, that for now, should bring us to the end of the Consideration of the Internal Revenue Amendment Bill, 2010.
    Hon Majority Leader should link up and make sure that we resolve any outstanding issues with the clause 1.
    BILLS -- CONSIDERATION 4:30 p.m.
    STAGE 4:30 p.m.
  • [Resumption of debate from column 4224.]
    • Mr First Deputy Speaker 4:30 p.m.
    Hon Members, this brings us to the end of the Consideration Stage of the Customs
    and Excise (Duties and Other Taxes) (Amendment) Bill, 2010.
    Suspension of Standing Order131 (1)
    Deputy Minister for Finance and Economic Planning (Mr Seth Terkpeh): Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 131 (1) which require that when a Bill has passed through the Consideration Stage, the Third Reading thereof shall not be taken until at least, twenty-four hours have elapsed, the Motion for the Third Reading of the Customs and Excise (Duties and Other Taxes) (Amendment) Bill, 2010 may be moved today.
    Mr James K. Avedzi 4:30 p.m.
    Mr Speaker, I
    beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    BILLS - THIRD READING 4:30 p.m.
    BILLS -- SECOND READING 4:40 p.m.
    Minister for Finance and Economic Planning (Dr Kwabena Duffuor) 4:40 p.m.
    Mr Speaker, I beg to move, that the National Fiscasl Stabilisation Levy (Amendment) Bill, 2010 be read a Second time.
    Question proposed.
    Chairman of the Committee (Mr James K. Avedzi) 4:40 p.m.
    Mr Speaker, I rise to support the Motion and in doing so, present your Committee's Report.
    1.0 Introduction
    The National Fiscal Stabilisation Levy (Amendment) Bill, 2010 was presented and read the First time in the House on Thursday, 18 th November, 2010 and subsequently referred to the Finance Committee for consideration and report in accordance with article 103 of the 1992 Constitution and Orders 125 and 169 of the Standing Orders of the House.
    The Committee met and considered the Bill with the Deputy Minister for Finance and Economic Planning, Hon Seth Terkpeh, officials of the Ghana Revenue Authority (GRA) and the Ministry of Finance and Economic Planning and hereby submit this Report pursuant to Order 126 of the Standing Orders of the House.
    2.0 Background
    The National Fiscal Stabilisation Levy was introduced in the second half of 2009 to cover a period of eighteen months. It has roped in considerable additional profit tax to Government. Government is, therefore, proposing to extend the application of the levy for an additional year.
    3.0 Reference documents
    The Committee referred to and/or was guided by the following in its consi- deration of the Bill:
    1. The 1992 Constitution of the Republic of Ghana;
    2. National Fiscal Stabilisation Levy Act, 2009 (Act 785); and
    3. Standing Orders of the Parliament of Ghana.
    4.0 Purpose of the Bill
    The purpose of the Bill is to amend the National Fiscal Stabilisation Levy Act, 2009 (Act 785) to extend the application of the levy to cover the year 2011.
    5.0 Contents of the Bill
    The Bill contains one clause.
    The clause seeks to amend section 4 of the National Fiscal Stabilisation Levy Act, 2009 (Act 785) to make the levy payable in respect of profits before tax for the year 2011.
    6.0 Observations
    The Committee observed that the levy roped in an amount of GH¢29,845,577.00 for the second half of the year 2009.
    It was noted that the amount of GH¢156,606,865 reported in the Budget Statement as NFSL for 2009 was incorrect.
    In the year 2011, it is expected that the levy will accrue a total revenue of GH¢97,478,000 to Government.
    6.1 Amendment proposed
    T h e C o m m i t t e e r e s p e c t f u l l y recommends the following amendment to the Bill:
    Clause 1 - Amendmentr Proposed -- line 3, after “by” delete all words and insert “the insertion of a new subsection of:
    4.(a) The levy is further payable in respect of the profits before tax for the year 2011.”
    7.0 Conclusion
    The Committee recommends to the House to pass the National Fiscal Stabilisation Levy (Amendment) Bill, 2010 subject to the amendment proposed.
    Respectfully submitted.
    Mr Dominic B. A. Nitiwul (NPP - Bimbilla) 4:40 p.m.
    Mr Speaker, thank you for the opportunity to add my voice to the Motion on the floor.
    Mr Speaker, just looking at the Budget presented on the 18th of November, 2010 by the Hon Minister, page 5 is very clear on the intention of the Hon Minister when he says that two years after presenting the 2009 Budget, the economy has shown strong resilience and stability as indicated by the key microeconomic indicators, and he goes ahead to quote all the indicators that show that the economy is strong, resilient and stable.
    He goes on to say that the interim figures released by the Ghana Statistical Service are very clear, that we were able to turn around the economy on a path of sustainable growth. And he says that he can then report to the House confidently that we are able to make the transition from stability to accelerated growth.

    Mr Speaker, I also want to state that it is true that the Committee observed that the figure that was quoted in the Budget, precisely on page 254 was quoted the outturn of GH¢156,606,865 for the 2009 National Stabilisation Levy was wrong. It was very much wrong and I think that the Ministry should look at the figures very

    correctly and very well when they are preparing budget figures.

    If you bring a figure in the Budget that is wrong, it gives all of us the impression that something is wrong and that we should look at other figures critically. I do not know how many other figures in this Budget have the same problem and that is the other thing I thought I should comment on briefly.

    Before I say that, I will really, really be listening to the Hon Minister carefully before putting my vote on why he is coming to this House to ask that the Stabilisation Levy be extended for one year, when clearly, he has told all of us and the nation, that the economy is resilient, strong and is moving forward for growth and he comes back to say, give me Stabilisation Levy --

    I think he must make a distinction on what he wants; either he wants us to support him to stabilise the economy again, which will be against the President's word when he said that 2011 would be a year of action or he is telling us that “well, things are not well ,so I need stabilisation”. [Interruption.] But if the latter is the truth that things are not as strong as we are being told, I will have no problem and I will readily urge the House to support the amendment. But if the former is the truth, that the Hon Minister really believes that everything is very rosy with this economy, I really think that we should look at the amendment again or we should look at the Motion again and we should not support it.

    So, Mr Speaker, this is my brief comment and I will be waiting to hear what the Hon Minister will say and the explanation he will give before I put my vote to it and before many of my Colleagues will also put their vote to it.
    Alhaji Abdul-Rashid Pelpuo (NDC - Wa Central) 4:40 p.m.
    Mr Speaker, I am very much surprised about the Hon Colleague's utterances regarding the proposal before us.
    Mr Speaker, the Member is also a member of the Finance Committee; he sat in and deliberated on these issues - [Interruption] -- Besides all these, we know that when we are talking about stabilising an economy, it is a process, it is not a one-time event. [Interruption.] Mr Speaker, it is the truth, you cannot say I am stabilising an economy and today, the stabilisation is ended forever and ever and I will not seek to stabilise the economy.
    Mr Speaker, the Hon Member appears not to have demonstrated enough understanding of what it means by stabilising the economy. [Interruption.] At this very moment, we are seeking a levy that will enforce a situation we have created and the situation is that we have stabilised this economy for a period and it has shown in the fact that inflation is no longer running away the way it was. We also know that the depreciation of the cedi is arrested.
    Dr A. A. Osei 4:40 p.m.
    Mr Speaker, on a point of order.
    Mr Speaker, I do not have any difficulty with the Hon Deputy Majority Leader except that if a Member has an opinion

    different from him, he does not come here and say he has demonstrated lack of knowledge of what is being said. Mr Speaker, we do not do that. You may disagree with him and that is fair - [Interruption] -- That is what he said and I do not think it is fair. He said he had no understanding and I do not think that is fair on an Hon Member.

    If that is the language we want to use here, that part is not good. You go your way and disagree with him but to say he is showing lack of understanding, it is not proper for an Hon Member to use those words - [Interruption] -- He said that. Maybe, he did not mean it but he said that. So, he can correct himself. He should not say that. He can disagree with him but if you use the words “lack of understanding” - [Interruption.]
    Alhaji Pelpuo 4:40 p.m.
    I never used the word “lack”. Mr Speaker, I said the Hon Member seemed not to have demonstrated enough understanding. That was what I said. [Interruption.] So, I did not say he lacked understanding.
    Dr A. A. Osei 4:40 p.m.
    Mr Speaker, that is even worse. We are not here to judge whether somebody understands something or not. We are here to debate opinions and it is not for him to offer an opinion on how well somebody - Mr Speaker, that is even worse. Please, let us not go there. He can disagree with him - so, please, he should withdraw it so that we do not go that path.
    Alhaji Pelpuo 4:40 p.m.
    Mr Speaker, I am very, very happy that he is the one raising -- because it is often and often his way to say that people do not understand something and that he is the one coming to demonstrate the understanding. He is often the one saying that. It is not intended to hurt him and it is not intended to show that he does not understand. But if that is the impression, I am withdrawing that aspect.
    But it is true and it is important that if you are a member of the Committee and the Committee presents a Report and you
    Mr Dery 4:50 p.m.
    Mr Speaker, the Hon Nitiwul did not show absolute dissension. Probably, he did not listen. He gave two scenarios and said if one were the case, he had a position. If there is the other one, he dissents. So it is not absolute dissension; it is not absolute.
    Mr Nitiwul 4:50 p.m.
    Mr Speaker, I think, especially Hon Members who have been in this House for more than four years and the Leadership of this House should be very careful what they say to the outside world and what they portray to the outside world. If Hon Members can be very cheeky, I am top of the world when it comes to people who are very cheeky and who can use words - [Uproar.]
    Mr First Deputy Speaker 4:50 p.m.
    Hon Member, he has withdrawn those words and even said that it was not his intention to hurt you. So that should end the matter; he has withdrawn it.
    Mr Nitiwul 4:50 p.m.
    Mr Speaker -
    Mr First Deputy Speaker 4:50 p.m.
    Hon Member, he has withdrawn it. You have already, had your chance to speak. Let me get other Hon Members to speak.
    Mrs Gifty E. Kusi (NPP - Tarkwa Nsuaem) 4:50 p.m.
    Thank you, Mr Speaker, for the opportunity to contribute to the Motion on the floor.
    Mr Speaker, my submission is on page 2, paragraph 6 of the Committee's Report
    and with your permission, I beg to quote:
    “The Committee observed that the levy roped in an amount of GH¢29,845,577.00. It was noted that the amount of GH¢156,606,865.00 .reported in the Budget Statement as NFSL for 2009 was incorrect.”
    Mr Speaker, why? A whole Budget Statement? So how many figures in the Budget has this affected? I want the Hon Minister to clarify. If statements are put in the Budget and they are incorrect, then it means that the whole Budget should be thrown away --
    Mr First Deputy Speaker 4:50 p.m.
    Hon Member, everybody makes mistakes but what is important is that after identifying your mistake, you say that you have made a mistake and that is what they have done. I do not know; I am yet to see anybody who has never made a mistake in his life, so we cannot pursue the debate on that line. They have made a mistake, they themselves have come to admit that the figure they have given is incorrect. You should pick it up from there. So kindly continue with your contribution.
    Mrs Kusi 4:50 p.m.
    Mr Speaker, Jesus Christ never made a mistake but he was in this world.
    Mr Speaker -
    Mr First Deputy Speaker 4:50 p.m.
    Jesus Christ is God.
    Mrs Kusi 4:50 p.m.
    He did not make a mistake. Mr Speaker, I think that the word should not be “incorrect”, it was “false”. A Budget, a whole nation's Budget? When you take a whole year to prepare and then you come and tell me that it is incorrect, I do not accept it because Ghanaians expect that we put in correct things and tell them the truth. But to just manufacture figures and tell people that we are doing this, we are on course, and then come here and tell us to extend this levy, as my Hon
    Colleague said -
    Mr First Deputy Speaker 4:50 p.m.
    Hon Member, that language is too strong - of “manufacturing figures”. It is too strong. Kindly withdraw it.
    Mrs Kusi 4:50 p.m.
    Mr Speaker, I withdraw “manufacturing” but I use “putting in”.
    Mr Speaker, I think we should take our time. We have the whole nation. We should take our time and ensure that whatever we put out to Ghanaians are the correct things and we are doing the right thing. But not to come here and say it is incorrect. It is false. I want to substitute “incorrect” with “false”. They are just being generous with them.
    rose
    Mr First Deputy Speaker 4:50 p.m.
    Hon Asaga, do you have a point of order?
    Mr Asaga 4:50 p.m.
    Yes, Mr Speaker. My point of order is that she said “putting in”. I do not know where we are “putting in”.
    Mr First Deputy Speaker 4:50 p.m.
    Hon Member, you are out of order.
    Hon Gifty Kusi, conclude.
    Mrs Kusi 4:50 p.m.
    Mr Speaker, I just want to say that if enough grounds have been laid that the economy is not what they profess it to be and that they are calling on us to help them, we understand. But not when they come and try and tell Ghanaians that
    they are on course, everything is going on and then they now come to tell us that we should help them. I do not think we should support this Motion.
    Question put and Motion agreed to.
    The National Fiscal Stabilisation Levy (Amendment) Bill, 2010 was accordingly read a Second time.
    Suspension of Standing Order
    128 (1)
    Dr kwabena Duffuor 4:50 p.m.
    Mr Speaker, I beg to move, that notwith-standing the provision of Standing Order 128 (1), which require that when a Bill has been read a Second time, it shall pass through a Consideration Stage, which shall not be taken until at least, forty-eight hours have elapsed, the Consideration Stage of the National Fiscal Stabilisation Levy (Amendment) Bill, 2010 may be taken today.
    Mr James K. Avedzi 4:50 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    BILLS -- CONSIDERATION 5 p.m.
    STAGE 5 p.m.
    Chairman of the Committee (Mr James K. Avedzi 5 p.m.
    Mr Speaker, I beg to move, clause - line 3, after the word ‘by'
    Dr Kwabena Duffuor 5 p.m.
    Mr Speaker, I beg to move, that notwithstanding the provision of Standing Order 131(1), which require that when a Bill has passed through the Consideration Stage, the Third Reading therefore, shall not be taken until at least, twenty-four hours have elapsed, the Motion for the Third Reading of the National Fiscal Stabi-lisation Levy
    (Amendment) Bill, 2010 may be moved today.
    Mr James K. Avedzi 5 p.m.
    Mr Speaker, I
    beg to second the motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    BILLS - THIRD READING 5 p.m.
    Mr First Deputy Speaker 5 p.m.
    Hon Majority Leader, do you have the Report on Government Obligation ready?
    Mr Avoka 5 p.m.
    The Chairman is sorting it out. We will know very shortly. In the interim, we can take Motion 27.
    BILLS - SECOND READING 5 p.m.
    Minister for Finance and Planning (Dr Kwabena Duffuor) 5 p.m.
    Mr Speaker, I beg to move, that the Value Added Tax (Amendment) Bill, 2010 be now read a Second time.
    The object of this Bill is to improve the administrative efficiency of tax imposed under the Value Added Tax Act 1998 (Act 546) through the Value Added Tax through the elimination of commodity zero-rating and a revision of the Value Added Tax threshold registration scheme.
    The present commodity zero-rating makes it difficult to administer the tax and has adverse cash flow implications for registered taxpayers. To address this shortcoming, the Bill proposes to
    amend the Value Tax Act, 1998 (Act 546) by reverting to the original exemption clause in order, so that locally produced pharmaceuticals, textbooks and locally manufactured agricultural machinery and inputs that are now zero-rated, are re- classified as exempt.
    The Bill also seeks to revise upwards the threshold for registration as a taxable person under Act 546 and to introduce a threshold for all businesses whether they are suppliers of goods or for services. It is proposed that there should be a single annual turnover threshold of GH¢90,000.00 for all categories of businesses for purposes of Value Added Tax. Any business with a threshold below the set threshold will be subject to a turnover tax at a rate which would take account of its contribution to both Value Added Tax and Income Tax.
    This will result in a reduction in the cost of compliance to the taxpayer, improvement in administrative efficiency and the prospects of a reasonable safeguard against excessive taxation of small businesses. An offshoot of this new shift will be the repeal of the flat-rate scheme introduced under the Value Added Tax (Amendment) Act, 2007 (Act 734) and the revocation of the Ghana Investment Promotion Centre (Promotion of Tourism) Regulations, 2005 (L.I. 1817) which provides for benefits and incentives in respect of investment projects.
    Question proposed.
    Chairman of the Committee (Mr Avedzi) 5 p.m.
    Mr Speaker, I rise to support the Motion and present your Committee's Report.
    3.0 Introduction
    The Value Added Tax (Amendment) Bill, 2010 was presented and read the First time in the House on Thursday, 18th November, 2010 and subsequently
    referred to the Finance Committee for consideration and report in accordance with article 103 of the Constitution and Orders 125 and 169 of the Standing Orders of the House.
    The Committee met and considered the Bill with the Deputy Minister for Finance and Economic Planning, Hon Seth Terkpeh, officials of the Ghana Revenue Authority (GRA) and the Ministry of Finance and Economic Planning and hereby submits this Report pursuant to Order 126 of the Standing Orders of the House.
    2.0 Reference documents
    The Committee referred to and/or was guided by the following in its consi- deration of the Bill:
    1. Constitution of the Republic of Ghana, 1992;
    2. Value Added Tax Act, 1998 (Act 546); and
    3. Standing Orders of the Parliament of Ghana.
    3.0 Purpose of the Bill
    The purpose of the Bill is to amend the Value Added Tax Act, 1998 (Act 546) to revise and expand the coverage of the threshold for registration; and re-classify locally produced pharmaceuticals, locally produced text-books and locally manu- factured agricultural machinery and tools as exempt supplies.
    4.0 Contents of the Bill
    The Bill contains a total of six (6) clauses.
    Clause 1 seeks to amend the Value Added Tax Act, 1998 (Act 546) by substituting subsection 1 of section 5
    Mr Simon Osei 5:10 p.m.
    None

    Bosomtwe): I support the Motion on the floor and in so doing, make some few comments.

    I agree that the increase of the threshold from 10,0000 to 90,000 will help the efficient running of the tax system. That notwithstanding, we have to clear an erroneous impression that has been made that as if those people below GH¢90,000 are not going to pay any tax in terms of value added.

    Mr Speaker, if you read the Budget, paragraph 148, we were told that those that will fall below the threshold, will fall under a different tax system and that was why he indicated that these people were going to pay a flat rate of 3 per cent.

    This does not necessarily mean that it is going to be lower than what they would have paid under the previous regime. It will depend on the turnover that people are going to have.

    Now, people have been made to believe that with the introduction of this new regime, those falling below GH¢90,000 are going to pay a lower level of taxes, which I think is erroneous and must be correct. They may even pay more or they may pay less or pay an equal amount as they were paying previously.

    Mr Speaker, again, I have heard

    from several quarters that now because we increased the tax threshold to GH¢90,000.00.00, those people even above are going to pay less. How are they going to pay less when the percentage of tax has not even been changed? I do not see how the people can even pay less. At times we throw certain information out there which are not correct. So we need to correct these situations and let the people know that what we are going to have now in this Budget, is not going to make any situation better for any of the VAT category payers.

    They are going to pay even more in some situations.

    So the impression that we created, there is equity, people within the lower bracket are going to benefit, I do not know unless somebody tries to give me an empirical evidence to that effect. It is not that they are going to benefit, they are not going to pay lower taxes.

    Mr Speaker, with these few comments, I support the Motion on the floor.

    Question put and Motion agreed to.

    The Value Added Tax (Amendment) Bill, 2010 was accordingly read a Second time.

    Suspension of Standing Order 128(1)
    Dr Kwabena Duffuor 5:10 p.m.
    Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 128 (1), which require that when a Bill has been

    read a Second time, it shall pass through a Consideration Stage which shall not be taken until at least forty-eight hours have elapsed, the consideration stage of the Value Added Tax (Amendment) Bill, 2010 may be taken today.
    Mr James K. Avedzi 5:10 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    BILLS -- CLONSIDERATION 5:10 p.m.
    STAGE 5:10 p.m.
    Mr J. K. Avedzi 5:10 p.m.
    Mr Speaker, I beg to move, clause 1, at the end of line (3), insert “of”.
    Question put and amendment agreed to.
    Mr J. K. Avedzi 5:10 p.m.
    Mr Speaker, I beg to move, clause 1 - add the following new subclause:
    “(1) (a) The Value Added Tax Act, 1998 (Act 546) as amended and referred to in this Act as the principal enactment is further amended in section 3 by the substitution for subsection 2 of the following:
    (2) A person to whom subsection (1) (b) of section 5 applies shall account for the Value Added Tax payable under this section at a flat rate of 3 per cent calculated on the value of the taxable supply.
    Mr Speaker, this amendment is neces-
    sary because we are moving the threshold from GH¢10,000.00 to GH¢90,000.00 there is a gap now created because in the existing law those who have a turnover up to GH¢10,000.00 pay a flat rate of 3 per cent. So now that we are moving the threshold to GH¢90,000.00, we have to extend that 3 per cent flat rate to cover all those who have turnover below the GH¢90,000.00. So that is the purpose for this new clause that we are adding.
    Question put and amendment agreed to.
    Mr Avedzi 5:20 p.m.
    Mr Speaker, I beg to move, clause 1 - add the following new sub-clause:
    “(1) (b) A person whose business turnover is below GH¢90,000.00 but exceeds GH¢10 ,000 .00 over a twelve month period or a proportionate part thereof is registrable as a taxable person and shall charge and account for the tax as provided under subsection (2) of section 3 of this Act.”
    Question put and amendment agreed to.
    Clause 1 as amended ordered to stand part of the Bill.

    Clauses 2 - 4 ordered to stand part of the Bill.

    Clause 5 - Act 734 repealed.
    Mr Avedzi 5:20 p.m.
    Mr Speaker, I beg to move, that clause 5 - delete.
    The Value Added Tax (Amendment) Act, 2007, Act 734 is hereby repealed. Mr Speaker, but while we are amending this, this becomes irrelevant, so we have to delete it.
    Mr First Deputy Speaker 5:20 p.m.
    Hon
    Chairman, what is wrong if you repeal it? [Pause.] Chairman, the law that we have does not fall into disuse, so you must specifically have it repealed. If you do not do that, it remains on the Statute books and creates complications, so that you have to use it by way of interpre-tations and all sorts of things. So why are you saying that we should delete? Why do we not specifically repeal it? What is the rationale behind that amendment? If the law would no longer be in existence after we pass this one, why we do not repeal it?
    Mr Avedzi 5:20 p.m.
    Mr Speaker, that law established the 3 per cent flat rate, and here, the new Bill is not establishing another 3 per cent. That 3 per cent is still in existence.
    Mr First Deputy Speaker 5:20 p.m.
    So that previous law of 2007 is still relevant?
    Mr Avedzi 5:20 p.m.
    It is still relevant. That is why in the Bill, it is saying that we should repeal it. That is why we say we should delete it.
    Mr First Deputy Speaker 5:20 p.m.
    Yes, but the first explanation that you gave was that once we are doing this, the other one is no longer necessary and that is why I asked you that question. In other words, we are not repealing it?
    Mr Avedzi 5:20 p.m.
    No, Mr Speaker.
    Mr First Deputy Speaker 5:20 p.m.
    Very good.
    Question put and amendment agreed to.
    Clause 5 deleted from the Bill.
    Clause 6 ordered to stand part of the
    Bill.
    Mr Avedzi 5:20 p.m.
    Mr Speaker, I beg to move, New clause - add the following new clause:
    “7. Section 25 of the principal enactment is amended by the deletion of subsection (1) (b).”
    Mr Joseph Y. Chireh 5:20 p.m.
    Mr Speaker, he just says delete but we do not know what is in (1)(b) and why he is saying we should --
    Mr First Deputy Speaker 5:20 p.m.
    Hon Chairman, what is the rationale behind this amendment? [Pause.] What did that amendment seek to do?
    Mr Avedzi 5:20 p.m.
    Mr Speaker, section 25 of the principal enactment talks about the 3 per cent flat rate which has a limit of GH¢10,000. So if we are extending the amount to GH¢90,000.00 we have to delete the principal enactment which talks about GH¢10,000.00.
    Mr First Deputy Speaker 5:20 p.m.
    So this is to give effect to the current threshold as against the previous threshold.
    Mr Avedzi 5:20 p.m.
    The current threshold is the GH¢90,000.00, so to give effect to the current threshold, we have to delete the old threshold which is GH¢10,000.00 in the principal enactment.
    Mr First Deputy Speaker 5:20 p.m.
    Hon Minister, he has offered an explanation.
    Mr Chireh 5:20 p.m.
    Yes, but I am not too convinced about the explanation because if you are making a law like this, which relates to the main one, you should have
    Mr First Deputy Speaker 5:30 p.m.
    But that was the explanation he gave, that under the previous law, it was GH¢10,000.00; now it is to give effect to the new threshold of
    GH¢90,000.00.
    Question put and amendment agreed to.
    New clause ordered to stand part of the Bill.
    The Long Title ordered to stand part
    of the Bill.

    Suspension of Standing Order

    131 (1)

    Deputy Minister for Finance and Economic Planning (Mr Seth Terkpeh (on behalf of the Minister for Finance and Economic Planning) : Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 131 (1), which require that when a Bill has passed through the Consideration Stage, the Third Reading thereof shall not be taken until at least, twenty-four hours have elapsed, the Motion for the Third Reading of the Value Added Tax (Amendment) Bill, 2010 may be moved today.
    Mr James K. Avedzi 5:30 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    BILLS - THIRD READING 5:30 p.m.
    BILLS - SECOND READING 5:30 p.m.
    Mr Seth Terkpeh 5:30 p.m.
    Mr Speaker, I beg to move, that the Airport Tax (Amendment) Bill, 2010 be now read a Second time.
    Mr Speaker, in so doing, I wish to explain as indicated in the memorandum that the purpose of this amendment is straightforward; it is to increase the amount that is paid as airport tax, which has elements of a user charge and has also a vertical equity principle, as we often say in taxation.
    Question proposed.
    Chairman of the Committee (Mr James K. Avedzi) 5:30 p.m.
    Mr Speaker, I support the Motion and present your Committee's Report.
    1.0 Introduction
    The Airport Tax (Amendment) Bill,

    The Committee met and considered the Bill with the Deputy Minister for Finance and Economic Planning, Hon Seth Terkpeh, officials of the Ghana Revenue Authority (GRA) and the Ministry of Finance and Economic Planning and hereby submit this Report pursuant to Order 126 of the Standing Orders of the House.

    2.0 Reference documents

    The Committee referred to and/or was guided by the following in its consi- deration of the Bill:

    1. Constitution of the Republic of Ghana, 1992;

    2. Airport Tax Act, 1963 (Act 209); and

    3. Standing Orders of the Parliament of Ghana.

    3.0 Purpose of the Bill

    The purpose of the Bill is to amend the Airport Tax Act, 1963 (Act 209) to raise the airport tax payable by passengers departing from an airport by aircraft to destinations within the country, within West Africa and for international travel.

    4.0 Contents of the Bill

    The Bill contains a total of two (2) clauses:

    Clause 1 seeks to amend the Airport Tax Act, 1963 (Act 209) by substituting subsection (1) of section 1 to impose new levels of airport tax.

    Clause 2 repeals the Airport Tax (Amendment) Act, 2009 (Act 782).

    5.0 Observations

    The Committee observed that passen- gers departing from an airport in Ghana by aircraft to destinations within the country would now pay an airport tax of GH¢5.00 instead of the existing tax of GH¢1.00.

    Airport tax payable by air travel passengers to destinations within West Africa is also being raised from US$50.00 to US$60.00

    Passengers travelling to destinations outside West Africa would now pay an airport tax of US$100.00, US$150.00 and US$200.00 respectively for Economy Class, Business Class and First Class instead of the existing airport tax of US$75.00 for all classes.

    The Deputy Minister of Finance and Economic Planning, Hon Seth Terkper informed the Committee that the increases in the Airport Tax are necessary to raise funds for the maintenance of the country's airports.

    Members found it desirable for users of specialised facilities such as airports to pay taxes and contribute to the maintenance of those facilities. They however, expressed concern about the relativity of the new levels of the tax as compared to those charged in other ECOWAS countries. They

    suggested to Government to undertake critical analysis of the new levels of the tax in order to ensure that Ghana does not suffer competitive disadvantage.

    The Committee further expressed discomfort about the 500 per cent jump in the tax for passengers travelling to destinations within the country. It was felt that Airport Tax for local travellers should be kept as low as possible to help boost the local air transport industry and to enhance local long distance travel and national integration.

    6.0 Amendment proposed

    T h e C o m m i t t e e r e s p e c t f u l l y recommends the following amendment to the Bill:

    Clause 1 - Amendment proposed - line 6, delete “GH¢5.00” and insert

    “GH¢3.00.

    7.0 Conclusion

    The Committee, having examined the Bill and taking cognizance of the need to raise funds to maintain and enhance facilities at the country's airports, respectfully recommends to the House to pass the Airport Tax (Amendment) Bill, 2010 subject to the amendment proposed.

    Respectfully submitted.
    Mr Samuel Johnfiah (NPP - Ahanta West) 5:30 p.m.
    Mr Speaker, thank you for giving me the opportunity to contribute to the Motion.
    Mr Speaker, it is interesting to note that when we want to alleviate the hardships of the people on the streets, we do so by increasing taxes. It is also a fallacy to think that if you travel by air, then you
    are of upper class in society. It is not so.

    Mr Speaker, when you look at the conclusion of the Report, it is stating that we want to get this money so that the facilities at the airport would be put in good use”. But ironically, when the money has been accrued, part of it is taken, instead of giving all the money to Ghana Airport Company Limited that is mandated to carry out renovations at the airports; only a meagre sum is given to them.

    So I am of the view and want to suggest that such moneys should be given to the Ghana Airport Company Limited, so that when you go to the airport to travel, we see that there are changes for the better. Otherwise, we increase the taxes, it goes to the kitty and only a meagre amount is given to the Ghana Airport Company Limited to carry out the renovation of the airport.

    Mr Speaker, at the Committee meeting, like the Chairman was saying, we were of the view that that of the domestic one is on the higher side. But I am glad he says at that Consideration Stage, he is going to make the necessary amendment. But I further want to say that even the GH¢1.00 to GH¢3.00 should still be reduced to

    GH¢2.00.

    On this note, Mr Speaker, I wish to thank you for giving me the opportunity.

    D e p u t y M i n i s t e r f o r Wa t e r Resources, Works and Housing (Maj. (Dr) (Alhaji) Mustapha Ahmed (MP) (retd): Mr Speaker, I wish to support the Motion on the floor and to make just one or two sentences in support.

    I believe that the increase in the taxes is in the right direction - [Interruptions] Air travel has become so important that it is critical that certain facilities are placed at the airports to ensure the safety of all persons who travel by air.

    This means that all our airports would have to be equipped with up-to-date equipment that would ensure the safety and security of all who use our airports. It is for this reason that there is the need to raise the airport tax so that Government would be in a position to ensure that our airports are up to standard with the requisite equipment that would ensure the safety and security of all passengers who use our airports.

    With this short words, I wish to entreat my Hon Colleagues, particularly my own Brother, the Member of Parliament who actually lives outside this country and pays us visits very frequently. I think it is for his own safety and good that there is this need for increase in air taxes.

    Thank you very much, Mr Speaker.
    Mr Joe Baidoe-Ansah (NPP - Effia Kwesimintsim) 5:40 p.m.
    Mr Speaker, I would want to comment on a few things to do with this Bill.
    Mr Speaker, what we are just about to do or what has been recommended to us is for us to increase the cost of doing business in Ghana. That is what we are about to do
    here as Members of Parliament.
    Mr Speaker, whenever taxes are increased at the airport, what it does is to add some more expenditure to how much people spend in doing business in the country. It also adds to the country as an expensive destination.
    Mr Speaker, this country is fighting so hard to ensure that people come from their countries or from other regions even within our country to spend money in other parts, that is to say, domestic tourism and also, international tourism desti-nation.
    Mr Speaker, what we are about to
    do here is to say that we are increasing the cost for people to move from their countries to our country and also the other thing that we are doing is to increase our competitiveness in the sub-region.
    rose
    Mr Baidoe-Ansah 5:40 p.m.
    Mr Speaker, it is US$60.
    Mr First Deputy Speaker 5:40 p.m.
    Hon Minister for Employment and Social Welfare, do you have a point of order?
    Mr E. T. Mensah 5:40 p.m.
    Mr Speaker, my Brother Hon Joe Baidoe-Ansah is misleading us. He is churning out certain figures that have no basis. What is the source? He has just written something and just putting it out there -- [Inter-rruption.] So what is it? - [Interruption] - No, he was a Minister then and he knows what we are talking about. We are too much
  • [MAJ. (DR) (ALHAJI) AHMED shy of taxes in this country. In this country - [Interruption] - What I am asking is that, why is it too high? He needs to compare. If he is saying that something is high - [Interruption] - please, I have the floor. What I am saying is that, he is making some comparisons; if he is making comparisons, he needs to have figures to form the basis for those comparisons. I need those figures,
    • Mr Baidoe-Ansah 5:40 p.m.
    I am going to give them to him --
    Mr E. T. Mensah 5:40 p.m.
    And at the end of the day, you would realize that Ghana is not an expensive destination.
    Mr First Deputy Speaker 5:40 p.m.
    Hon Member, continue.
    Mr Baidoe-Ansah 5:40 p.m.
    Mr Speaker, what I am saying is that taxes on regional flights have been increased. So on the whole, you pay US$60 to go on a regional flight, on economy. You spend US$60 as tax - [Interruption] - sixty dollars as tax.
    Mr Speaker, international flight, you spend US$100 as tax; that is for economy. You are spending US$150 for business class and US$200 for first class. Mr Speaker, what I am saying here is that it is just too much. Let us compare the figures as it pertains in Africa. In fact, what we are doing now, Ghana's is going to be the highest on the continent.
    Mr Speaker, let us do some compa- risons. Now, as Ghana is paying US$60 for the regional, Cameroon is US$31 (US$29.70), la Cote d'Ivoire, it is US$26.80; Nigeria, US$35; Senegal -- US$38.70, Kenya is US$40 and South Africa is US$9.50. Mr Speaker, this is portraying our country as the most
    Mr Asaga 5:40 p.m.
    Mr Speaker, Hon Baidoe- Ansah has not given us the source - [Interruption] - Mr Speaker, I am saying this because there is some recent Wikileaks, so I do not know whether his is from Wikileaks or what.
    Mr First Deputy Speaker 5:40 p.m.
    Hon Member, what is the source of your information?
    Mr Baidoe-Ansah 5:40 p.m.
    Mr Speaker, the source is from the Civil Aviation Authorities of these countries involved. International Civil Aviation Organization (ICAO) is also a source --
    Mr First Deputy Speaker 5:40 p.m.
    Hon
    Member, how did you get the - [Interruption] Hon Members, please - Hon Members, it is a standard practice in this House that when you quote something and Members want to know the source, it is fair -- So just give the source to the House. That is all they are asking for.
    Mr Baidoe-Ansah 5:40 p.m.
    Mr Speaker, I said the source is the International Civil Aviation Organization.
    Mr Speaker, you see, what is happening now is that, when we pass this here and somebody sits in Togolese Parliament and says that in Ghana Airport Tax is US$60 and somebody asks him to quote, it is from this House. It is something that has been passed. It is part of public record; that is the truth. If anyone has anything otherwise, he should bring it. But for now, this is the cost.
    Mr First Deputy Speaker 5:40 p.m.
    Hon Member, it is not a question of whether anybody has any information he should bring it. You are the one making the statement and they are asking you to substantiate your statement.
    Mr Baidoe-Ansah 5:40 p.m.
    Mr Speaker, it is not an allegation; this is a fact.
    Mr First Deputy Speaker 5:40 p.m.
    You understand me? That is all that the people are asking you to do.
    rose
    Mr First Deputy Speaker 5:40 p.m.
    Hon Members, we cannot take a point of order on a point of order. He has raised the matter of the source.
    Mr Baidoe-Ansah 5:40 p.m.
    Mr Speaker, the source is the International Civil Aviation Organization. That is the source [Interruption] - Mr Speaker, that is the source.
    Dr A. A. Osei 5:40 p.m.
    Mr Speaker, with
    respect, just today, the Hon Minister for Finance and Economic Planning quoted some figures. We did not ask him to lay them - [Interruption] - Just today. You ruled that he should come back later, so I think that the Hon Member -
    Mr First Deputy Speaker 5:40 p.m.
    Hon Member, you are completely out of order - [Interruption] - I did not - they said he should make them available. I said he should make them available; I did not ask the Hon Member to lay anything. Did I ask him to lay them? So why are you drawing comparison? I asked him to declare the source. That is all that I said. I did not say he should lay them; did I say that?
    Hon Ranking Member, I am presiding over these proceedings; did you hear me ask Hon Baidoe-Ansah to lay any documents? Did you hear me say that he should lay --
    Dr A. A. Osei 5:50 p.m.
    Mr Speaker, let me
    answer you. My statement was, you asked the Hon Minister for Finance and Economic Planning to come back and I am saying, he has given you ICAO, so, you can ask him to come back but people get up, out of order and they speak. They are disrupting his -
    Mr First Deputy Speaker 5:50 p.m.
    Hon Member, Hon Joe Baidoe-Ansah is a very articulate person; if he wants to tell the House that they should give him time to come back and substantiate, he would say so. He has not said anything like that.
    Dr A. A. Osei 5:50 p.m.
    Mr Speaker, he said it is the International Civil Aviation Organi- zation (ICAO) and Hon E. T. Mensah, without you calling him, said he should lay it. He called him -
    Mr First Deputy Speaker 5:50 p.m.
    Hon Member, that is the reason - so, are you addressing Hon E. T. Mensah or you are addressing the Chair?
    Dr A. A. Osei 5:50 p.m.
    Mr Speaker, I am asking the Chair to call Hon E. T. Mensah to order. [Interruptions.]
    Mr Speaker, he has not been called but he has started talking -
    Mr First Deputy Speaker 5:50 p.m.
    Hon E. T. Mensah, I have not given you the floor.
    Mr Owusu-Agyemang 5:50 p.m.
    Mr Speaker, I believe that the tradition of this House is that, sometimes one is asked to give a source but when one makes a statement [Interruptions] -- as regards, say, quoting prices in the United Kingdom or in the United States of America (USA) or exchange rates, one is not normally requested to lay it. But if you give the instruction that he must produce the
    Mr First Deputy Speaker 5:50 p.m.
    I am happy you confirm only two of the figures.
    Hon Joe Baidoe-Ansah, continue.
    Mr Baidoe-Ansah 5:50 p.m.
    Thank you, Mr Speaker.
    As we speak now, because of the expensive nature of Ghana as a destination, no plane flies from Benin to Ghana, no plane flies from Togo to Ghana. [Interruptions.] No plane flies from Togo to Ghana as we speak now. No plane flies from Benin to Ghana but planes fly from here to Kumasi, about the same distance.
    Planes fly from Accra to Takoradi, the same distance as from here to Togo. The same distance as from here to Togo because if you fly from Togo to this place, you are going to pay US$60 more, that is why people are not doing it. So, we are not making our country attractive enough; it is important we reconsider some of these things.
    Mr Speaker, Ghana does not stand on its own. Ghana is part of this competitive world and I believe that all what we did in this country and all what we are still doing about private sector development

    strategy is to ensure that our country becomes a very reasonable destination for business and for tourism. But this is what we have been told to do now, to increase the cost of doing business in our country and to increase the cost of tourism in our country --
    Mr First Deputy Speaker 5:50 p.m.
    Hon
    Member, conclude.
    Mr Baidoe-Ansah 5:50 p.m.
    Mr Speaker, to conclude, it is very unfortunate that so far, the amount that has been collected, which we have been told will help in the development of our airports is only 40 per cent of the resources that would go to the development of our airport. Mr Speaker, this goes contrary to the regulations and policies of the International Civil Aviation Oraganization. Mr Speaker, let me quote -
    Mr First Deputy Speaker 5:50 p.m.
    Hon Member, I say you should conclude.
    Mr Baidoe-Ansah 5:50 p.m.
    Mr Speaker, let me quote from ICAO's policies on charges for airports and air navigation services. This is from the ICAO document. Mr Speaker, to quote article 32 (2) of the ICAO policies on charges for airports and air navigation services -- It says:
    “Comprehensive and transparent accounting that should be done with assurances that all aviation user charges are and will remain earmarked for civil aviation services or projects only.”
    So, what we are about to do here is to even go contrary to the ICAO guidelines.
    With these few words, I end with a sad note.
    Thank you very much.
    Question put and Motion agreed to.
    The Airport Tax (Amendment) Bill, 2010, was accordingly read a Second time.
    Suspension of Standing Order
    128 (1)
    Mr Seth Terkpeh 5:50 p.m.
    Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 128 (1) which require that when a Bill has been read a Second time, it shall pass through a Consideration Stage, which shall not be taken until at least, forty-eight hours have elapsed, the Consideration Stage of the Airport Tax (Amendment) Bill, 2010 may be taken today.
    Mr James K. Avedzi 5:50 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    BILLS - CONSIDERATION STAGE 5:50 p.m.
    Mr Kwame Osei-Prempeh 6 p.m.
    Mr Speaker, I beg to move, clause 1, paragraph (a) that the tax to a destination within the country delete GH¢5 and insert GH¢2.
    Mr Speaker, the rate now is GH¢1, it is being increased to GH¢5, that is, 500 per cent increase.
    Mr Speaker, somebody will say that one cedi or four cedis is nothing but we are not talking about those of us alone but for all Ghanaians. The poor person who has to travel -- and if you take Accra- Kumasi, AccraTamale, there are people
    who travel daily. Increasing it by 500 per cent, we are putting a heavy burden on their expenses and they will pass it on to the final consumer. Therefore, Mr Speaker, I believe that if we need to increase it, we need not increase it by 500 per cent; a 100 per cent increase from one cedi to two cedis will be enough. Mr Speaker, I believe that we need money, yes, we all know we need money but we do not need to overburden the people at once and let them feel the burden. Mr Speaker, so my amendment is that this House moves the tax burden from GH¢5.00 to GH¢2.00.
    Mr Asaga 6 p.m.
    Mr Speaker, I am opposing his amendment based on facts. Mr Speaker, to travel from here to Tamale, you cross almost about four to five toll booths, each one is one cedi by road. So from here to Tamale alone is GH¢5.00; when you are returning, it is GH¢5.00 and in total, it is GH¢10.00 - [Interruptions] - You know, these are the poor people and you are going by air to Tamale and they say pay only GH¢5.00 and you are saying it is very expensive. Mr Speaker, we oppose it - [Laughter.]
    Mr Osei-Prempeh 6 p.m.
    Mr Speaker, sometimes, we tend to trivialize issues. Mr Speaker, we are talking of air travel and tax is being imposed for an individual passenger, not for a car which is loaded or which has five passengers or thirty passengers or a bus which carries - Amina bus - [Laughter]-- which carries 50 passengers - [Laughter.] Mr Speaker, we are talking of an individual passenger who has to pay this.
    So I believe that the analogy being drawn by my Hon Friend Mr Asaga is most incongruous and not in tandem with what we are saying. Mr Speaker, I believe that we should not think about ourselves.
    My Friend the Majority Chief Whip tells me that -- only one cedi. Mr Speaker,
    one cedi is money to about 80 per cent of people in this country. If he is rich, people are not. Mr Speaker, I believe that GH¢2.00 will be reasonable.
    Thank you.
    Mr Chireh 6 p.m.
    Mr Speaker, I am urging this House to oppose this amendment and I am opposing on the grounds that the amount he is talking about, 500 per cent, how often should we be doing the increases and spending precious time of the Republic to be doing amendments? Is it every year? I believe that it is important for us when we take a decision to increase anything, we should also look at how long it will take us again to do so.
    This law is not now introducing taxes on domestic or international flights. This law was passed in l963. I do not know where he was at that time but more importantly, every now and then, we keep increasing the taxes partly because the conditions that we have at the various airports are terrible.
    A few days ago, we had a situation where people got down from the aeroplane and their things were soaked. So if you are increasing to be able to improve the conditions for passengers, to make safety and security a good thing, I do not see why 500 per cent is a matter.
    rose
    Mr Chireh 6 p.m.
    What is your point of order?
    Mr Osei-Prempeh 6 p.m.
    Mr Speaker -- [Interruption.]
    Mr Chireh 6 p.m.
    You have not been called.
    Mr Osei-Prempeh 6 p.m.
    I have been called by Mr Speaker.
    Mr First Deputy Speaker 6 p.m.
    Hon Member for Nsuta/Kwamang/Beposo -
    Mr Osei-Prempeh 6 p.m.
    Mr Speaker, the Hon Member is saying that when Hon Joe Baidoe-Ansah was the Minister in-charge of Aviation, the taxes were still higher than any other place in the subregion. Mr Speaker, I am saying that that is not true. In fact, in the 2009 Budget, airport taxes were increased and in the 2010 Budget they were increased and now, we are seeking to increase them again.
    At the end of 2008, the taxes were not higher than anywhere in Africa. It was within the past two years that they have been increased higher than all other destinations in Africa. So the Minister must correct himself because what he is telling the House is never the truth.
    Mr Chireh 6 p.m.
    Mr Speaker, he did not give the figures that were increased from which we were increasing and he does not have the figures that were conjured here. Even if he gets documents and information from any document, he should be able to tell the website for all of us to go and visit and get that information but what he is saying now, until he produces the figures that were there before 2009 and 2010, I will not accept his point of order.
    He knows that in the case of Benin, we do not even need to use a plane to come from Benin to Ghana. You can take a taxi
    -- charter a State car - and come but for the border people who will bother you - [Laughter.] I am surprised that this whole argument is coming from my Friend.
    You see, we have to maintain standards and we cannot just be doing things locally.
    Why do they fly daily to Kumasi or to Tamale? It is to do business and you are talking about increasing the cost of business. In fact, it is making sure that business is properly done and made cheaper. If the man has to go all the way by road, and he destroys his car, he has to repair it; if you add all and the man hours he loses and he passes it on, it will be terrible. We have to improve the conditions and that is why you must not support his amendment. His amendment is negative and it will not produce the results that Ghana deserves.
    Thank you.
    Dr Matthew O. Prempeh 6 p.m.
    Mr Speaker, I wish to thank you for the opportunity to speak on this Airport Tax.
    In 2008, Airport Tax was increased to l00 per cent in the 2009 Budget. Mr Speaker, tourism is said to be the third largest foreign exchange earner for the country. In one swoop, we have made air travel to Ghana uncompetitive, in another swoop, we have eliminated all reliefs for the tourism sector. I am just cautioning the Minister for Finance and Economic Planning, he should not kill the goose that lays the golden egg.
    Mr Speaker, I remain.
    Question put and amendment negatived.
    Mr Avedzi 6:10 p.m.
    Mr Speaker, I beg to move,
    clause 1, line 1, after Act 209, delete “is” and insert the following: “as amended is further”.
    So, it will read -
    Mr First Deputy Speaker 6:10 p.m.
    Hon

    Hon Members, I will put the Question on clause 1 -
    Mr Osei-Prempeh 6:10 p.m.
    Mr Speaker, on page 10 of the Order Paper, there is an amendment standing in the name of the Chairman of the Committee.
    Mr First Deputy Speaker 6:10 p.m.
    He indicated that the Committee had abandoned the amendment when he was submitting his Report during the Second Reading. He informed the House that it was a mistake.
    Mr Osei-Prempeh 6:10 p.m.
    Mr Speaker, if it is withdrawn, then he should say it is withdrawn at the Consideration Stage, that will be the proper thing.
    Mr First Deputy Speaker 6:10 p.m.
    Very well. I agree with you.
    Hon Chairman, the amendment is on the Order Paper standing in the name of the Committee.
    Mr Avedzi 6:10 p.m.
    Mr Speaker, that amendment is withdrawn.
    Mr First Deputy Speaker 6:10 p.m.
    Very well.
    Clause 1 ordered to stand part of the Bill.
    Mr First Deputy Speaker 6:10 p.m.


    Clause 2 ordered to stand part of the Bill.

    The Long Title ordered to stand part of the Bill.

    Suspension of Standing Order 131 (1)
    Mr Seth Terkpeh (on behalf of the Minister for Finance and Economic Planning) 6:10 p.m.
    Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 131 (1), which require that when a Bill has passed through the Consideration Stage, the Third Reading thereof shall not be taken until at least, twenty-four hours have elapsed, the Motion for the Third Reading of the Airport Tax (Amendment) Bill, 2010 may be moved today.
    Mr James K. Avedzi 6:10 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    BILLS - THIRD READING 6:10 p.m.
    Mr Owusu-Agyemang 6:10 p.m.
    Mr Speaker, with respect, I want to have a Second Consideration by proposing amendment to clause 1 -
    Mr First Deputy Speaker 6:10 p.m.
    Hon
    Member, you are out of order.
    Mr Owusu-Agyemang 6:10 p.m.
    Why?
    Mr First Deputy Speaker 6:10 p.m.
    You have to rise before the Motion is moved. Look at Standing Order 130.
    Mr Owusu-Agyemang 6:10 p.m.
    But I rose before the -
    Mr First Deputy Speaker 6:10 p.m.
    No. Hon Member, look at Standing Order 130, it reads as follows:
    “If any Member desires to delete or amend a provision contained in a Bill which has passed through the Consideration Stage, or to intro- duce any new provision to it, he may, at any time before a Member rises to move the Third Reading of the Bill . . .”
    Hon Member, you are out of order.
    Mr Owusu-Agyemang 6:10 p.m.
    But I rose before that one - [Interruptions.]
    Mr First Deputy Speaker 6:10 p.m.
    Hon Member, you are out of order.
    Dr A. A. Osei 6:20 p.m.
    Mr Speaker, I believe yesterday, you directed that if we are going to Sit after six o'clock, then some considerations must be made known to the House. I have been watching the clock; it has been past six o'clock for a while and no one is making anything known to the House. So I need your guidance on this matter.
    Mr Haruna Iddrisu 6:20 p.m.
    Mr Speaker, after listening to the Hon Member make his submission, I wanted to believe that something is known to him because he knows that we are Sitting beyond six
    o'clock.
    Dr A. A. Osei 6:20 p.m.
    Mr Speaker, your instructions were specific and the Hon Leader of Government Business is fully aware. In fact, the Hon Majority Chief Whip gave assurances and we want him to tell us what they are. Yes, yesterday, he said, “Oh, yes, I have taken note”. He said he had taken note and it will be done. [Interruption.] It was not water. So we want to know what he meant by “it will be done” so that we can proceed.
    Mr Avoka 6:20 p.m.
    Mr Speaker, I can vividly recall that directive of yours but I want to assure Hon Members that things are on course and they should just deliver today and tomorrow - [Interruption.] There is nothing to be done now.
    Mr First Deputy Speaker 6:20 p.m.
    Hon Majority Leader, Hon Members com- plained that if they had to Sit beyond six o'clock, then we had to give them supper. That was the point that was made yesterday and I think that ordinarily, if Hon Members are going to Sit here beyond six o'clock, by the time they get home, they complain that it will be too late for them to eat. And so that is the point that was made and I am surprised the Hon Majority Leader does not seem to remember this.
    Hon Majority Leader, let us continue and let us see what magic you can make.
    Mr Avoka 6:20 p.m.
    Thank you very much, Mr Speaker. We shall perform the magic.
    Mr First Deputy Speaker 6:20 p.m.
    Item number 6.
    Mr Terkpeh 6:20 p.m.
    Mr Speaker, before I move the substantive Motion on the Order Paper, I wish to move an amendment of the figure that is in the Motion; it is a correction from GH¢5,886,945,731.00 -- The correction is with respect to - the figure should read “GHC5,986,945,731.00”.
    Mr First Deputy Speaker 6:20 p.m.
    Does the new figure you are giving us tally with the figure in the Committee's Report?
    Mr Terkpeh 6:20 p.m.
    Yes, Mr Speaker.
    Mr First Deputy Speaker 6:20 p.m.
    Very well.
    ANNUAL ESTIMATES 6:20 p.m.
    Chairman of the Committee (Mr James K. Avedzi 6:20 p.m.
    Mr Speaker, I rise to support the Motion and present your Committee's Report.
    1.0 Introduction
    The Expenditure Estimates of Govern- ment Financial Obligations for the 2011 financial year was laid in the House on Thursday, 18 th November, 2010 and referred to the Committee on Finance for consideration and report in accordance with the Constitution and Standing Orders of the House, following the presentation of the Budget Statement and Economic Policy of Government for the financial year commencing 1st January and ending 31st December, 2011.
    The Committee met and considered the Estimates with the Minister for Finance and Economic Planning, Hon Dr Kwabena Duffuor, Deputy Minister for Finance and
    APPENDIX I 6:20 p.m.
    Dr A. A. Osei 6:30 p.m.
    Mr Speaker, he is holding a paper; I am talking about an official letter to this House through the Clerk, not through your Committee. Mr Speaker, I, as a Committee member, do not have access -- [Interruption.] Mr Speaker, if his committee has it, that is not what we are talking about; the House does not know that. I am talking about a letter to the House, not a letter that Hon Asaga has.
    rose
    Mr First Deputy Speaker 6:30 p.m.
    Hon Asaga, I will call you to speak but what you really want to do is not a point of order. So wait for your turn. Whatever information you have, you wait, when the Hon Member has finished, then you can assist the House with whatever information that you have. I will give you the chance.
    Dr A. A. Osei 6:30 p.m.
    Mr Speaker, the Finance Committee on Finance through the House has not received any official
    Mr Moses Aduko Asaga (NDC -- Nabdam) 6:40 p.m.
    Yes, Mr Speaker, I am getting up to mention that it is a joint Committee issue and that is Finance - [Inter-ruption.]
    Dr A. A. Osei 6:40 p.m.
    Mr Speaker, it cannot be a joint Committee. This is a Committee on Finance.
    Mr First Deputy Speaker 6:40 p.m.
    Hon Members, we are discussing item 6 on the Order Paper. So it is a Committee on Finance matter.
    Mr Asaga 6:40 p.m.
    Yes, I understand that.
    This issue came up at the Committee on Mines and Energy. It again came on at the Committee on Finance. I am on the Mine and Energy Committee and also the Finance Committee. So as a result, we are working together. So the information has come through from the Ministry of Energy to the Committee and distributed to all members on the Committee on Energy. Therefore, I was trying to clarify to him that we had received -
    Mr First Deputy Speaker 6:40 p.m.
    Hon Member, you are at liberty to give us any information you have but what the
    Ranking Member is saying is that there should be official communication; he is not saying that you do not have infor- mation. You can still use that information to the benefit of the House. But what he is saying is that he wants a certain official communication. So you can go ahead and provide that information.
    Mr Asaga 6:40 p.m.
    So Mr Speaker, the USD262 million is supposedly to support the GNPC budget requirement and this is as follows: For the Jubilee Field Development cost, it is supposed to be USD137,081,016.00. Then the Jubilee operating cost is USD56, 408,839.00 -- and all is in dollars. The total amount is USD193,489,855.00 and so, as a result of that, there is a deficit for GNPC, which is
    USD18,370,290.00.
    So Mr Speaker, the USD262 million that has been given to GNPC by the Ministry, these are the purposes it is supposed to be used for. So there is information and I am giving the information, contributing to the Motion that is on the floor.
    Mr Speaker, thank you very much.
    Dr A. A. Osei 6:40 p.m.
    How can there be a deficit when he says the total is USD193 million? We appropriated USD263 million approximately. We appropriated GH¢260 plus; so if their total is -
    Mr Asaga 6:40 p.m.
    We are talking in dollars.
    Dr A. A. Osei 6:40 p.m.
    I am talking -- [Interruption.]
    Mr Asaga 6:40 p.m.
    Yes, so if you are that finance person and you are talking in dollars, you could have easily converted.
    Dr A. A. Osei 6:40 p.m.
    You are talking in dollars?
    Mr Asaga 6:40 p.m.
    Yes.
    Dr A. A. Osei 6:40 p.m.
    What is the exchange rate?
    Mr Asaga 6:40 p.m.
    It is not savings.
    Dr A. A. Osei 6:40 p.m.
    What is the exchange rate that you used?
    Mr First Deputy Speaker 6:40 p.m.
    Hon Member, yours is in dollars but what we are dealing with here is in Ghana cedis. So if you want to do the deficit and everything, you should have converted it so that you will be in line with what you are talking about.
    Mr Asaga 6:40 p.m.
    That is very easy. The Ghana cedi equivalence is this: GH¢198,767,474.00, that is for the Jubilee Field Development; then for the Jubilee Field operating cost it is GH¢81,792,816.00. This brings it to GH¢280,560,290.00. So if we deduct GH¢262,190,000.00, we get a deficit of GH¢18,370,290.00. So these are the figures to cover the GH¢262 million and even they need more. They even need more money to support them.
    Thank you, Mr Speaker.
    Prof. George Y Gyan-Baffour (NPP - Wenchi) 6:40 p.m.
    Mr Speaker, I want to make my contribution but before I do that, what Dr Akoto Osei is saying is not about the bulk sum -- two things for development being so much and then for this also being so much. That is not a budget. A budget is actually to tell us the activities and programmes that they have for the year, not just saying that -- It is just about the same as what the Hon Minster said.
    But Mr Speaker, I am not in that area; let me make my submission. If it is time for me to do my submission, can I go
    rose
    Mr First Deputy Speaker 6:40 p.m.
    Hon Asaga, what point of order? What rule has he breached? What has he breached? Hon Moses Asaga, what rule has the Hon Member for Wenchi breached? He has barely started talking.
    Mr Asaga 6:40 p.m.
    No, I did mention that because they wanted to know how the GH¢262 million is being used; and that is the aggregation that I have given and he is talking of programmes. Programmes are not the budget. The budget is the expenditure, what we require. So it is expenditure that you require for it. So why should we be talking of programmes?
    Mr First Deputy Speaker 6:40 p.m.
    But the expenditure must be backed by programmes and activities. So that is the programme.
    Hon Members, I do not intend to take part in the debate but when this issue cropped up last week on the floor of the House whether we should approve the budget because of that figure that we found, I went my way in my capacity as an Hon Member of this House and not as a Deputy Speaker to look for information and I have got that information which tally with the information that he has provided in terms of the breakdown.
    In fact, it shows it should be part of financial obligation, it is part of our participation --some monies that we were supposed to contribute as Government and as GNPC to the Jubilee Oil Field, which we did not. And now the other partners are saying that we must make those monies available. This is because they are not a bank. So we have to either appropriate the money or we take it from the -- in line with the agreement that we ourselves as a nation have reached with the partners. That is the basis of that money; yes.
    Dr A. A. Osei 6:40 p.m.
    Mr Speaker, if Hon Asaga would just take care, what my Hon Colleague was saying is in the interest of GNPC. The entire budget including salaries would be much larger than what we are doing. So if we know all that information, this House may decide that we want to appropriate more. So we want a full-blown budget of GNPC, so that if we choose to add more, we add more. He has given us only two items. The Constitution talks about programmes and activities --
    Mr First Deputy Speaker 6:40 p.m.
    Hon Member, for now, what will concern -- This is because we are only appropriating GH¢262 million to them. That is what concerns us; that is the amount that. Look at the Obligations, what goes to GNPC is the GH¢262 million. It is that figure that they must justify. It is the GH¢262.185 million that GNPC must justify.
    Prof. Gyan-Baffour 6:50 p.m.
    Thank you, Mr Speaker.
    Mr Speaker, under normal circum- stances, I would not oppose this Motion. But Mr Speaker, there is something unusual about this particular Motion for this year on this Government Obligations.
    Mr Speaker, Government Obligations cover all the statutory funds that we use -- the District Assemblies Common Fund (DACF), National Health Insurance and all those statutory Funds. Mr Speaker, these statutory Funds are actually backed by law and the law states that, as we all amended last year or two years ago, 7.5 per cent of the total revenue of this country should be ceded to the District Assemblies.
    The National Health Insurance is also two and a half per cent of certain import values. The Ghana Education Trust Fund (GETFund) is also pegged at about 2.5 per cent of something. But Mr Speaker, the Hon Minister comes to the House and tells us that, and with your permission, I quote. That is page 230, paragraph 932:
    “To ensure that the social intervent ion programmes of government are implemented on a sustainable basis consistent with the medium-term expenditure framework, distribution formulas for Parliamentary approvals of DACF, GETFund and the National Health Insurance Fund will be structured to allow for up to 30 per cent of such transfer to be used to finance these programmes.”
    Mr Speaker, this implies that instead of 7.5 per cent for DACF, we are going to appropriate only 5.2 per cent to the District Assemblies, which also means that this year, the District Assemblies, what we have been told here is not what they are actually going to get. What they are going to get -- the Hon Minister says he is sending GH¢530 million plus to the District Assemblies. But in actual fact, what is going there is GH¢370 million, which means that the District Assemblies will not have the money that they even had last year, which was not even enough.
    This actually undermines their ability to do that fiscal decentralization that we have been trying to do all over the years, which is why this Act was established. And it is actually undermining the legal framework that set this thing up.
    Mr Speaker, when you look at the GET- Fund, it is the same thing -- 2.5 per cent. Now, what is going to them is 1.75 per cent. When you look at NHIS, they should have 2.5 per cent. But what is going to them is 1.75 per cent. Mr Speaker, the NHIS, is already under stress. Now, we are taking this money for a social intervention programme that nobody knows what it is. Meanwhile,
    people are wailing down there and they are not getting healthcare and they are cutting down this healthcare allocations.
    Mr Speaker, I am really very much worried about these cuts and if we do not take care, the statutory payments -- Who knows when even the ones that we are going to use to pay for our debt would be used for social intervention - the one that is going to go pensioners would be taken to social intervention.
    Mr Speaker, I think this is an illegal issue and we have to look at it very closely. This is because if we allow the Hon Minister to do that every year, he would move a little forward, this year 30 per cent -- next year, 40 per cent, next year 50 per cent; and before we would be aware, 90 per cent of it would be allocated in Accra here and where lies the decentralization process?
    Mr Speaker, I am not very comfortable about what we are doing now.
    In fact, more seriously, the Committee is in connivance. This is because this thing was never even mentioned in the Committee's Report. They never said anything about it. Mr Speaker, this is a very dangerous move and I think that either the Hon Minister would explain to us now or maybe, I will urge all Hon Members to vote against it. Otherwise, we would have some problem on our hands.
    Mr First Deputy Speaker 6:50 p.m.
    Hon Member, the use of “connivance” by a Committee of this House with an Hon Minister is rather a strong word. If you closely look at the paragraph that you referred to and the fact that these statutory Funds, the formulas would come to this House and it is at that stage that we can do the scrutiny on some of the issues that you have raised.
    Prof. Gyan-Baffour 6:50 p.m.
    Mr Speaker, if
    you look at Appendix 6, page 259, what it says is that, “National Health Insurance Fund - GH¢477,672,” out of which social intervention programmes have been taken. When you look at the Education Trust Fund, GH¢376, out of which --
    Mr First Deputy Speaker 6:50 p.m.
    Hon Member, I am saying that, yes, you have made your point but at the end of the day, that is not the end of the matter. The formula would have to come to this House.
    Prof. Gyan-Baffour 6:50 p.m.
    Mr Speaker, no, the formula has already been re-allocated. When you look at Appendix 8 (b) at page 263, that has already been allocated --
    Mr First Deputy Speaker 6:50 p.m.
    Hon Member for Wenchi, you are the one who has drawn our attention to the legal framework of these statutory Funds and I am telling you that that does not end the matter. That is not the end of the matter. Just as the figures are not the end of the matter, unless they pass through the budgetary processes that have gone through in this House; that also is not the end of the matter. When they bring the formula to this House, in line with the various enabling legislations, then that would conclude the issue.
    Dr A. A. Osei 6:50 p.m.
    Mr Speaker, I think that his concern is genuine. But to say that the Committee is in connivance, I think I take exception to it, precisely. This is because I am expecting that we would Sit here and look at the formula and see how we can implement that statement in the Budget. This is a global sum; it must come here for us to go through the details. So I am yet to see how he can prove that. That is why some of us have not spoken yet, but we cannot be in connivance to break a law.
    Prof. Gyan-Baffour 6:50 p.m.
    Mr Speaker,
    Mr First Deputy Speaker 6:50 p.m.
    Hon Member, during the debate on the financial policy, the Hon Member for Manhyia raised some of these issues on the floor at that stage. But what I am saying is that, just as you said, there are legal frameworks for these Funds. Look, that statement is not the final document as far as this House is concerned. All of them are subject to certain processes and the statutory Funds would have to come with formula. When we get there - But as you said, well, you can raise it but it is not as if it is final. Because that thing can be there. But if they do not bring the formula we do not conclude the business as far as those statutory Funds are concerned.
    Prof. Gyan-Baffour 6:50 p.m.
    Mr Speaker, I agree with you on that but what I am saying is that at least, this has to be mentioned in the Report. Why would they go in to look at these statutory Funds and then not say anything about where the monies are going to go? That is why I used the word “connivance”. But maybe, the Committee is not very excited about that and the House is not. But what I am saying is that it should have been stated somewhere that these monies are going to be used for something else and why they are going to be used for something else, we have to explain -- [Interruption.]
    Mr Avedzi 6:50 p.m.
    Mr Speaker, I do not know whether the Hon Member is saying that we should accompany the formula for the disbursement of those funds with this Report. Because if he is saying that if GH¢530 is going to the District
    Assemblies Common Fund, of which a portion is going for social intervention, we should state it. It means that he is equally telling us that the balance of GH¢370, what it would also be used for, we should say it. That is not the purpose of this particular one. The actual formula would come, so that we can look at the details, the specifics of the total amount involved. So I do not think what he is doing, he is being fair to the Committee.
    Prof. Gyan-Baffour 6:50 p.m.
    Mr Speaker, the formula for that amount is already here -
    Mr First Deputy Speaker 6:50 p.m.
    He has withdrawn that word and said that maybe, it is too strong. He has withdrawn it. So Hon Member for Wenchi, continue.
    Prof. Gyan-Baffour 6:50 p.m.
    Mr Speaker, the formula for allocating that 30 per cent has already been done by the Minister for Finance and Economic Planning. He is not supposed to do that; it should be by the District Assemblies Common Fund Administrator. When you look at Appendix 8 (a), he has allocated all of them. What is it? Allocations are basically the formula. So would he do it before it gets to the DACF [Interruptions] - He has done it. [Interruptions] - He has.
    Mr First Deputy Speaker 6:50 p.m.
    Hon Member for Wenchi, have you finished? Have you finished with your submission?
    Prof. Gyan-Baffour 6:50 p.m.
    Yes, Mr Speaker, I have finished with my submission.
    Alhaji Mohammed Mubarak- Muntaka (NDC -- Asawase) 6:50 p.m.
    Mr Speaker, what I will suggest, maybe, to the Minister for Finance and Economic Planning and his team, is to give this House the assurance that those social intervention projects would be within those sectors. So we should watch out, so
    that when the formula comes, there would be no deliberate amount taken away from the formula but these social intervention programmes would be imbedded within those individual formulas.
    So the interventions under Education would be within the GETFund formula, the intervention under Ministry of Health would be within the National Health Insurance Scheme Fund. This is something that this House is very conversant with and I am sure that if the Finance and Economic Planning Minister could give that assurance, it would pave way and make it easy for us to make progress.
    That is the suggestion that I want to make, Mr Speaker.
    Mr First Deputy Speaker 6:50 p.m.
    I will take the last.
    Mr Joseph A. Bosompem (NPP -- Akim Swedru) 7 p.m.
    Mr Speaker, this Report from your Committee is a very important report. If you look at the figures that are coming out of this Report, you would realise that it forms about 18 per cent of the total expenditure and about 20 per cent of the revenue. So I am amazed at the rate at which we are rushing it -- we had it and we are to comment on it.
    Secondly, going through your Report, you would realise that there is an item called “Other Transfers”, and in the Budget “Other Transfers” amount is GH¢1,107,765,520. But in the Report, it is GH¢316,897,700. I think your Committee would do us a favour to reconcile those two figures.
    But my most important issue is with
    the interest. You would realise that that is the single most significant item on the list of the disbursements and when you look at it, we are estimating that we would pay
    GH¢1,831,300,000 for interest and one would ask, what is the impact of this on the economy that the Ministry of Finance and Economic Planning is running for us?
    You would realise that that interest element alone, as compared to even the investment that we do as a nation, is more than half of the total investment that we make as a nation.
    On page (3) of the Report, you would realize that we are rapidly accumulating debt. The debt stock now stands at GH¢11,274.7. Over a period of two years, we have accumulated GH¢3 billion and over. By January, 2009, the debt stock was just about US$8 billion.
    Now, it has moved to US$11 billion and this has consequences on the interest payment. So if we do not pull the breaks and we continue accumulating the debt, if we are not careful, a time would come our whole revenue would be used to service interest, not the principal, of our economy.
    By so doing, we would cripple the productive base of our economy and we would just be rendered beggars all over the place to seek funding to come and finance basic things -- but not even capital expenditure.
    Mr Speaker, I would entreat the Ministry to be a bit circumspect at the way they are borrowing. This is because it can put the nation under avalanche of debts, and it would be a very, very difficult situation to get the country out. Mr Speaker -- [Interruptions.] I trust that we are here to aid the Ministry to manage the economy on behalf of Ghanaians. That is the job we are supposed to do and, if the financing plan of the Ministry is not helping us to get out of this debt syndrome --
    I think we have a duty as Members of Parliament to advise, not just to approve the figures as they come and I think the Ministry would take this in good faith, look at the way they are borrowing, look at the way they are financing their programmes and then do something that would be beneficial to the nation.
    Mr Speaker, I thank you for this
    Mr First Deputy Speaker 7 p.m.
    Hon Deputy Minister, wind up.
    Mr Terkpeh 7 p.m.
    Mr Speaker --
    rose
    Mr First Deputy Speaker 7 p.m.
    Do you want to speak?
    Mr Kyei-Mensah-Bonsu 7 p.m.
    Yes, I do want to make some observations. But I thought the Hon Deputy Minister was going to wind up.
    Mr First Deputy Speaker 7 p.m.
    No, the Motion was moved by the Deputy Minister, so the Deputy Minister would do the winding up.
    Mr Terkpeh 7 p.m.
    Mr Speaker, in winding up I wish to -
    Mr First Deputy Speaker 7 p.m.
    No, he says he wants to make some observations; let him make those observations, then you come in.
    Minority Leader (Mr Osei Kyei- Mensah-Bonsu) 7 p.m.
    Mr Speaker, just a few observations.
    First of all, one notices that thus far, there has not been any place where mention has been made of the promise relating to the Members of Parliament (MPs) Constituency offices. I thought it was going to be borne by the allocation for Other Government Obligations, but there is no mention of that. I do not know where you intend to bear that; that is, the matter relating to MPs constituency offices.
    Mr Speaker, the next thing which I find quite revealing is the one relating to the
    quantum of petroleum production. We are told that we expect an average production of 78,945 barrels per day; that is on the average, throughout 2011 and we have estimated it at a price of US$70 per barrel.
    Mr Speaker, I thought that we would be provided with further and better particulars about this. I say so because, as I indicated yesterday, before the inauguration last Wednesday, we have had three different figures released officially from the Minister for Energy.
    Indeed, only last Thursday, he again came out to say that the nation, on the average, the production was going to be 55,000 barrels through the whole of 2011 and that the nation should expect to produce 120,000 barrels per day over the next couple of years, in particular, 2013; that is attributable to the Minister for Energy.
    Last Friday, a top official of Tullow - [Interruption.] My Hon Brother is saying “the same thing”. We are talking about money for this country and if you have anything contrary to what I am saying, you come out with it. Do not just sit down and say, “the same thing”; the “same thing” for what?
    So Mr Speaker, the top official then says that mid next year, we would be producing 120,000 barrels and not 2011. So who is saying the truth? Which figure should we take as a nation? That is why I am asking, how did the Minister arrive at the almost 80,000 on the average per day he is using? That is the question I am asking and of course, if you go through the Petroleum Revenue Management Bill - we have not finished with it - you would know how they would calculate the benchmark to give us the average.
    How are they arriving at this, considering the fact that indeed, we have not started production? Of course, they would use some reasonable estimates.
    But we want to know in order to inform ourselves about how we come to dwell on US$70 per barrel for Ghana's estimates. This is the issue that I am raising. So if the Minister, in winding up could respond to the issue that I have addressed, I would be most grateful.
    Mr Terkpeh 7:10 p.m.
    Mr Speaker, in winding up, I would want to respond to a few issues beginning with the question of arrears which the Ranking Member mentioned and I would link it to the question of the accumulation of new arrears.
    Mr Speaker, if you went back to the 2008 Budget, which was an indication from where we began to prepare the 2009 Budget, you would appreciate the difficulty with which we are dealing in terms of managing the economy. Mr Speaker, in that Budget, it was projected that in 2009, the deficit would be 3.3 and in 2010 the deficit would go down to 1.4.
    Indeed, I made this point on the question of methodology and I did indicate at the Committee that one of the things we are taking seriously is the method of accounting for the deficit. If you went to that Budget, indeed, the commitments for 2009 and 2010 were shown as zero, zero, which meant that we were not expected to have the level of arrears.
    When it was stated that as with the Hon Osafo-Marfo, we ought to come back to the House, we have in a sense done that. This is because if we were expecting a deficit of 4.4, which was revised later to about 7 or 9 per cent, and you did a budget which had a deficit of nearly 15 per cent on a cash basis and by mid-year came back to the House to say that on approval basis, the deficit was in excess of 20 per cent, it tells you the enormity of the gap with which we have had to contend with. In essence, what we are saying is that, we have had
    to contend with the situation in which the deficit was calculated to be a mere 5 per cent to nearly 25 per cent.
    Mr Speaker, in 2009, when we said that we were stabilising the economy, it was a very difficult concept to sell. Today, we know from the experience of Greece, Ireland and others that when you have a deficit, even in an unstable economy, in the region of 1012 per cent, it is enormous by even these advanced countries and they plan to liquidate those arrears in four to five years They have had to go to the European Central Bank and to the very IMF to enter into bail-out arrangements in order to safeguard the economy.
    Dr A. A. Osei 7:10 p.m.
    Mr Speaker, I have tried to talk to my good Friend that the issue is not whether the deficit is higher or lower; it is a simple matter.
    Statutorily, the Hon Minister is supposed to do something; he has not done it. When is he going to come back to this House to rectify that anomaly? And that is it. I say he may be able to convince us; I do not have any issue.
    But if he goes about outlining the deficit, somehow, he has broken the law. Come and rectify it, so - we are legislators; we cannot condone in the continuance of that. It is simple. When is he coming back? That is all. And if you start going to Ireland deficit and others -- the document is here. Please.
    Mr First Deputy Speaker 7:10 p.m.
    Hon Deputy Minister, continue.
    Mr Terkpeh 7:10 p.m.
    Mr Speaker, the specific point was made about the increase in arrears and I am responding to that particular issue that was raised on the floor of the House and the fact that deficits that weigh down an economy,
    Mr First Deputy Speaker 7:10 p.m.
    Have you made provision for it? That is the point being raised. Have you made provision for it? That is the point that was raised. The policy is there but you can set aside some money; that is the point being raised.
    Mr Terkpeh 7:10 p.m.
    I am saying that the policy is evolving and when it has evolved, then the correct thing would be done. That is the point I am making, Mr Speaker.
    Mr Speaker, the issue of the 79,000 buyers approximate that was used 7:10 p.m.
    this was information provided to us by the Ministry of Energy and at the signing at the time, there were a number of considerations that were taken into account. The understanding was that, the ramping up that was anticipated to make it an average of 120,000 barrels was not going to materialise, particularly, from this year. Therefore, we were asked to use the conservative figure of 79,000 which is what we did.
    The second element was that, in terms of the actual revenues that were put in the Budget, we took the precaution of talking to the companies. This is because, as I explained at the Committee level, the companies would now recover their capital allowances and other things which they had been incurring over the last four or five years, and they recover it from the capital for the corporate income taxes. Therefore, if you took the previous computations without taking this reality into account, you would be over estimating the revenue that went into the Budget. So as I explained, the GRA
    actually did what we call the provisional assessment and it informed some of the figures that were put in the Budget.
    Let me end by noting, Mr Speaker,
    that if in the course of the year, from the actual production and from actual operations, these figures change, we would definitely come back to the House with the supplementary budget that would explain, and by which time, we also hope that the Petroleum Revenue Management Bill, 2010 would have been passed and would provide a definite framework for accounting for these revenues.
    Mr Dery 7:10 p.m.
    Mr Speaker, I think the Hon Deputy Minister has given a very nice speech, but he has not answered when they are coming back. We are talking of illegalities. He said “at the appropriate time”. Mr Speaker, the appropriate time is “X”. So can he be more specific than “appropriate time”?
    Mr First Deputy Speaker 7:10 p.m.
    Hon Member, I want this matter to be taken up with the Leadership. The leadership of the Committee on Finance and the Leadership of the House should liaise with the Ministry of Finance and Economic Planning to see how to handle this matter.
    Hon Members, that brings us to the end of the -
    Mr Osei-Prempeh 7:10 p.m.
    Mr Speaker, there is a small correction I have pointed to the Chairman on page 5. The judgement debt for 2010 is stated as 200 million dollars, everything else there is in cedis while that is in dollars. I pointed it to the Chairman and he says it is a mistake. I believe it must be corrected.
    Mr Avedzi 7:10 p.m.
    Mr Speaker, it is a mistake. The amount there should be in cedis, not dollars. So it should be two hundred million Ghana cedis
    (GH¢200,000,000.00).
    Question put and Motion agreed to.
    Resolved:
    That this Honourable House approves the sum of GH¢5,986,- 945,731.00 for the services of Other Government Obligations for the year ending 31st December 2011.
    Mr First Deputy Speaker 7:20 p.m.
    Item 5. Presentation and First Reading of Bills Appropriation Bills --
    Dr A. A. Osei 7:20 p.m.
    Mr Speaker, nothing has come to the House or the Committee -- Appropriation Bill.
    Mr First Deputy Speaker 7:20 p.m.
    It is laying or you do not want it to be laid? Hon Ranking Member, you do not want us to lay the Appropriation Bill? Hon Members, I have my copy of the Appropriation Bill here. It is when it is laid, then it is made available to Hon Members.
    BILLS FIRST READING 7:20 p.m.
    Mr First Deputy Speaker 7:20 p.m.
    Appro- priation Bill, is it 2011? Very well.
    Presented by the Hon Deputy Minister for Finance and Economic Planning (Mr Seth Tekpeh) (on behalf of the Hon Minister for Finance and Economic Planning).
    Referred to the Committee on Finance.
    Mr Avedzi 7:20 p.m.
    Mr Speaker, the Bill is 2010 but it is working for 2011.
    Mr First Deputy Speaker 7:20 p.m.
    Hon Member, I realised on the Order Paper that nothing has been put there. That is why I asked whether 2010 or 2011, but I decided not also to add anything, so I only said the “Appropriation Bill”. [Laughter.]
    So, Hon Majority Leader, what is the direction now?
    Mr Avoka 7:20 p.m.
    Mr Speaker -
    Mr First Deputy Speaker 7:20 p.m.
    I think I have referred the Bill to the Committee on Finance for consideration and report. I have done that.
    Mr Avoka 7:20 p.m.
    Mr Speaker, I think that we have done very well enough for today. It is true that we still have outstanding business to do, but we cannot overstretch ourselves to the elasticity, end of the elasticity.
    In this respect and with the time now reading almost 7.30 p.m. I propose that we adjourn the proceedings until at ten o'clock in the forenoon when we hope to do some more work and advise ourselves as time goes.
    Mr Speaker, before I resume my seat, may I take this opportunity again to thank Hon Members for their resilience and commitment and dedication. We are very, very grateful to you and we take note of it, we acknowledge your efforts and we take note of it. We will see what happens tomorrow.
    Mr Dery 7:20 p.m.
    Mr Speaker, I think that I agree with what the Hon Majority Leader has said, but only to caution that tomorrow, the Committee on Finance will be meeting on the Appropriation Bill, so, we should factor into our programme their activities, so that we do not run into the kind of state that we have run into. So, while the Finance Committee is meeting, we will also be dealing with other matters to make sure that we are on course, then we will come for the Report at the appropriate
    time. So, put your act together before.
    Mr Kyei-Mensah-Bonsu 7:20 p.m.
    Mr Speaker, I think yesterday when we were leaving, we all thought that we would be able to do some work on the Petroleum Revenue Bill. Unfortunately, given the circum- stances of the day, which compelled the Committee on Finance, in particular, the Chairman and the Ranking Member, who should be helping us in debating the Bill, because they were unavailable in the Chamber, we could not really proceed on the Bill.
    I know the Hon Majority Leader is very committed to having the Bill passed, but it is going to be almost impossible to do that. This is because it is the same Committee on Finance that tomorrow will be very much engaged in other areas. But I believe that it would not be said of the Hon Majority Leader that he did not perform on the Revenue Management Bill, if we are unable to complete it. I believe if we come there, we will see how to move on but certainly, we cannot push ourselves beyond limits.
    But we will try to see what we can do tomorrow and then leave the rest to God, maybe, to continue at the “appropriate time”, since that is the terminology in the House now. Subsequently, but certainly, we have tried to do our best, maybe, our best was not enough for this time but we will see what to do.
    To remind the Hon Majority Leader of the outstanding considerations, his pledge should be his pledge.
    Mr First Deputy Speaker 7:20 p.m.
    Hon Members, on that note, the House is -
    Mr Avoka 7:20 p.m.
    Mr Speaker, I am informed that the Committee on Finance will meet at 9 .00 a.m. Finance Committee, 9.00 o'clock in the morning.
    Mr First Deputy Speaker 7:20 p.m.
    Hon Members, on that note, the House is adjourned till tomorrow at ten o'clock in
    the forenoon.
    Thank you.
    ADJOURNMENT 7:20 p.m.