Debates of 17 Feb 2016

MR FIRST DEPUTY SPEAKER
Mr First Deputy Speaker noon
Hon Minister?
Mr Haruna Iddrisu noon
Mr Speaker, I appreciate the suggestion of the Hon Minority Leader. He is as well familiar with the funding constraints even of the GETFund. But the principle of listing technical and vocational training schools to benefit from it would be worthwhile.
Suffice it to add, Mr Speaker, whether it would sit in tandem with the law that established the GETFund in terms of what their focus would be. I agree with him that we need to upscale technical and vocational training.
Mr Speaker, as I indicated, Government has sourced a loan of US$120 million which is being implemented by Council
Mr Haruna Iddrisu noon


for Vocational and Technical Education and Training (COTVET) under the Ministry of Education to support technical and vocational training in the country.
Mr First Deputy Speaker noon
Very well, Hon Members, I believe this brings us to the end -- I do not know; Hon Minority Leader?
Mr Kyei-Mensah-Bonsu noon
Mr Speaker, I know of the support that the Hon Minister is speaking about. His counterpart has come to the floor of the House. But the point is, it is not supposed to be a one-shot enterprise.
We are talking about sustainability and if we are not careful, we would not find the appropriate way of sustaining the support, even that one would not last. It would just be like what happened at the very outset and then no support comes to cushion it.
Once the equipment has been supplied, we may even need to maintain and service it. How do we do it if there is no sustainable resource that we apply to it? I agree with him that, perhaps, it would be necessary to have a second look at the GETFund Act. That is the way to go if we want sustainability. Would he consider that?
Mr Haruna Iddrisu noon
Mr Speaker, we work very closely with the Ministry of Education and one of the fundamental priorities of Government is to enhance the employment ability of the Ghanaian, particularly, the young Ghanaian.
Whether at the level of junior high school or senior high school, we know that a number of young people are not able to climb the educational ladder. They normally would resort to technical and vocational training.
Mr First Deputy Speaker noon
Very well.
Hon Members, this brings us to the end of Question time.
Hon Minister, thank you very much for attending upon this House; you are discharged.
Mr Agbesi noon
Mr Speaker, the Second Reading of the Ghana Export-Import Bank Bill, 2015 as contained in item 5 on the original Order Paper.
Mr First Deputy Speaker noon
Very well.
Is the Hon Minister for Finance available?
Mr Agbesi noon
Mr Speaker, the Hon Deputy Minister for Finance is in the House to move the Motion on behalf of the Hon Minister for Finance. We are seeking your leave for the Hon Deputy Minister to move the Motion on behalf of the Hon Minister.
Mr First Deputy Speaker noon
Hon Minority Leader?
Mr Daniel Botwe noon
Mr Speaker, we have no objection.
Mr First Deputy Speaker noon
Very well.
Item 5 on the original Order Paper. Hon Deputy Minister for Finance standing in for the Hon Minister for Finance.
BILLS -- SECOND READING noon
Minister for Finance) noon
Mr Speaker, I beg
to move that, the Ghana Export-Import Bank Bill, 2015 be now read a Second time.
The object of the Bill is to establish Ghana Export-Import related matters.
Ghana's export sector has evolved significantly over recent decades. In line with the nation's economic industria- lisation process, the composition of exports has gradually added non- traditional products to the largely indigenous exported products. The perceived idea of transforming Ghana's economy towards an export-led economy has made it necessary to adopt a policy to drive this laudable idea.
In this regard, Mr Speaker, Government in the 2015 Budget Statement and Economic Policy, announced its intention to establish a Ghana Export-Import Bank to lead in the strategic positioning of Ghana as an export-led economy.
Mr Speaker, the proposed Export- Import Bank, similar to institutions in other jurisdictions, is envisaged to promote the acceleration of Ghana's drive towards achieving a more diversified economy to help the economy's resilience to external shocks alongside an improved capacity to produce goods and services in the competitive global marketplace.
Mr Speaker, the Export-Import Bank, which is a quasi-governmental institution, will act as an intermediary between national governments and exporters to issue export financing.
It will also operate as non-deposit taking bank that will assist exporters to compete internationally by providing insurance and finance facilities to support their overseas activities.
Mr Speaker, to achieve this, this Bill is classified into 39 clauses.
Clauses 1 to 17 talk about the establishment of the bank, 18 to 34 cover Administrative and Financial provisions of the Bank and 35 to 39 deal with mis- cellaneous provisions.
Question proposed.
Chairman of the Committee (Mr James K. Avedzi) noon
Mr Speaker, I rise to support the Motion and in doing so, present your Committee's Report.
Introduction
The Ghana Export-Import Bank Bill, 2015 was presented by the Hon Minister for Finance, Mr Seth Emmanuel Terkper to Parliament and read the First time on Tuesday, 3rd November, 2015.
Mr Speaker referred the Bill to the Finance Committee for consideration and report in accordance with article 174 (1) of the 1992 Constitution and Order 169 of the Standing Orders of the Parliament of Ghana.
Pursuant to the referral, the Committee was assisted in its deliberations by the Hon Minister for Finance, Mr Seth Emmanuel Terkper, His Deputy, Mr Cassiel Ato Baah Forson, Attorneys from the Attorney-General's Department and technical team from the Ministry of Finance and Export Development and Agricultural Investment Fund (EDAIF).
The Committee is grateful to the Hon Minister and his Deputy and officials of the Ministry of Finance and the Attorney- General's Department for their assistance.
Reference
The Committee referred to the following additional documents during its deliberations:
The 1992 Constitution of Ghana.
The Standing Orders of the Parliament of Ghana.
The Interpretations Act, 1960
(CA4).
Bank of Ghana Act 2004 (Act 673);
Export Development and Agriculture Investment Fund Act, 2014 (Act 872).
Background
Ghana‘s export sector has evolved significantly over recent decades. In line with the nation's economic industria- lisation process, the composition of exports has gradually added non- traditional products to the largely indigenous exported products.
Though there is fairly an impressive development in the export sector, the perceived idea of transforming Ghana's economy towards an export-led economy has made it necessary to adopt a policy to drive this laudable idea.
In this regard, Government in its 2015 Budget Statement and Economic Policy, announced its intent to establish a Ghana Export- Import Bank to lead in the strategic positioning of Ghana as an export-led economy.
The proposed Bank is envisaged to promote the acceleration of Ghana's drive towards achieving a more diversified economy to help the economy's resilience to external shocks alongside an improved capacity to produce goods and services in the competitive global market-place.
The Bill therefore, seeks to establish an Export-Import Bank which is a quasi- governmental institution that will act as an intermediary between national Governments and exporters to issue export financing.
Mr First Deputy Speajker noon
Yes, Hon Minister for Employment and Labour Relations?
Minister for Employment and Labour Relations (Mr Haruna Iddrisu)(MP) 12:10 p.m.
Mr Speaker, thank you for the opportunity to associate myself with the Motion ably moved by the Hon Deputy Minister for Finance and supported by the Hon Chairman of the Finance Committee, for the Ghana Export-Import Bank Bill, 2015, to be read a Second time.
Mr Speaker, in doing so, I would want to commend the Ministry of Finance for this bold initiative.
Indeed, Mr Speaker, the policy challenge of the Ghanaian private sector, otherwise described as the economic headway, is access to credit and the cost of credit.
Mr Speaker, if we get this Ghana Export- Import (Exim) Bank Bill passed, it would support private export finance. Mr Speaker, my added recommendation is for this Export-Import Bank not to lose sight of the Small, Medium Enterprises (SMEs) of our country.
The SMEs contribute about 80 per cent to our Gross Domestic Product (GDP) and contribute about 90 per cent to employment in our country. And it is important that they play their role.
Mr Speaker, the Hon Deputy Minister in moving the Motion also emphasised expanded export. You would recall when His Excellency, President Mahama appeared before this House two years ago, he launched his Transformation Agenda, anchored on reducing the import bill of our country.
Mr Speaker, even as we discuss the depreciation of the cedi, my view is that, on a long term sustainable basis, the cure to it is expanded exports and not monetary policy and sometimes, fiscal adjustments. It is for us to expand and increase our exports. And as an agrarian economy, we do have an opportunity to do so.
Mr Speaker, may I refer you to the memorandum accompanying this Bill and in particular, to clause 4. I am talking about page two and I would want to raise an issue with it.
“Provision is made under clause 4 for the independence of the Bank. In the performance of its functions the Bank is not subject to the regulatory and supervisory control of the Bank of Ghana or the Banking Act, 2004, (Act 673)”.
This august House would have to take a second look at this particular provision. Mr Speaker, by this, we are ousting the mandate, the regulatory and oversight function of the Bank of Ghana.
Yet, we can learn from best practice. There is Exim Bank in China, there is Exim Bank in India, and there is Exim Bank in the United States of America. Therefore, how can you say that this particular financial institution shall not be subject to the regulatory and the supervisory control of the Bank of Ghana? I do have some difficulties with that particular provision in respect of clause 4.
Mr Speaker, also, in this Bill, we will note that, we are transforming Export Development and Agricultural Investment Fund (EDAIF) into the Export-Import. It is also important that the small businesses that were supported by EDAIF do not suffer under the umbrella of this.
Mr Speaker, I dare add that, even the Ghana Export Promotion Authority legislation would have to be revised by this august House. This is because there is a provision in this Act for us to share the dutiable levies that are imposed to get this Fund established, so that the Ghana Export Promotion Authority will be able to play a prime role with increased resources in order to be able to support that.
Mr Speaker, everywhere in the world, the ministry for the economy is the Ministry of Trade and Industry. When I said ministry for the economy, I am sure my Hon Colleague Prof Gyan-Baffour will appreciate it.
Everywhere in the world, the ministry for the economy -- how you build industry is the Ministry of Trade and Industry. How you control exports.
We know the policy direction of this Government and it is important that, not just export financing, it will also create employment.
Mr Speaker, I would recommend strongly that maybe, when we come to the Consideration Stage, the Board of this Bank should probably be chaired by the Hon Minister for Trade and Industry. This is in order that there would still be a functional relationship in how we control the economy in terms of exports and imports.
I think this is one of the major far reaching legislations which would be the legacy of the Mahama Administration in trying to reach out strongly to the private sector of Ghana, with dedicated resourced envelope to support it.
Mr Speaker, everywhere in the world, the primary role of the public sector, would be to create a congenial and enabling environment. Those that would create the jobs are the private sector and I am sure that the Ghana ExportImport (EXIM) Bank would do same.
If we go further into the legislation, we would know, as I said, that they must necessarily report. And you might want to look at imposition of the Import Levy which would be shared.
Dr Matthew O. Prempeh (NPP-- Manhyia South) 12:10 p.m.
Thank you, Mr Speaker.
In rising to support the Motion on the floor, there are cautions that we should note. It is the Bank of Ghana that this House and the Constitution have given the power to superintend and oversight other banks. Why are we deciding through this legislation to put such a major bank outside the supervisory role of the Bank of Ghana?
It is a dangerous precedent for us in this House to even entertain the idea that our Hon Minister for Finance should all of a sudden become the Governor superintending over the EXIM Bank.
Mr Speaker, even though the Hon Deputy Minister would shake his head, he should read the memorandum attached to this Bill and he would realise -- If he goes to clause 36 of the Bill, he would realise that all of a sudden -- If you look at regulations which, with your permission I quote because it is very relevant. Clause
36 --
“The Minister, on the advice of the Board…
Meaning the Ministry of Finance.
“(a) shall by legislative instrument, make Regulations on matters relating to the equity and debt operations of the Bank including the priority areas, eligibility rules and the terms and conditions for facilities to be operated by the Bank...”
Mr Speaker, he is even more of an activist than the Governor of the Bank of Ghana. We should not entertain that idea and we do that at the peril of Ghana. The Ministry of Finance has been given a job to do and it should concentrate on it.
These specialised institutions that we are supporting should be made to operate as specialised institutions of the Bank of Ghana.
It is not for nothing that the Bank of Ghana even has interest in the current Agricultural Development Bank. If we are setting up a specialised institute, we should give it to the Bank of Ghana, with their expertise and supervisory roles, to look after this bank, babysit it, let it grow under proper rules and regulations and not under the whims and caprices of the Ministry of Finance.
It would be a dangerous precedent. We cannot give an EXIM Bank that we are now setting up independence. The APEX Bank set up by the Bank of Ghana, is looking after the rural banks and that is how we do it. You give it to the Bank of Ghana with special mandate to supervise.
Mr Speaker, the second issue is interest rates. This is a specialised bank that we should allow to set special interest rates to promote export industry in Ghana.
Our biggest problem is balance of payment deficits and we could use the avenue of this bank to boost employment, industry generation, agro processing and export orientation. That is the mandate of the EXIM Bank.
Even though the name EXIM might confuse because it is Export-Import, it is supposed to be export driven. That is why the second point is that we should make sure that the Minister for Trade and Industry and Minister for Food and Agriculture sit on the Board of this bank to make sure that we are achieving those things for employment in Ghana.
Mr Speaker, even though the Report says it, there is a multiplicity of agencies in the export sector. The only two that are relevant are Export Promotion Authority
and the EXIM Bank. All the others with their interest and mandate should be such that they support or complement this bank.
They should be renewed so that the export promotion finance facility -- We should de-emphasise that and support the EXIM Bank to make it relevant.
In the course of the Consideration Stage, we are proposing certain changes to certain clauses, that the independence of the bank would be outside the jurisdiction of the Bank of Ghana and would be thrown out of the window and no Hon Member would support it.
Also, to emphasise trade and industry, agriculture and value addition would be emphasising that the Minister for Trade and Industry and the Minister for Food and Agriculture be brought onto this bank. Seriously, it is just not financing, it is employment generation that we want in this country and we would make sure.
Even if we have to bring the Minister for Employment and Labour Relations, he would be there. But this House would not hope to give the Minister for Finance power to become another governor.
Mr Speaker, the last point I would want to make is that, in the history of this country, from Business Assistant Funds through EDAIF to what we are trying to do, has led to a lot of people taking a lot of financial credit and never repaying. A lot of these things, when we put them under the Ministry of Finance, become like somebody's entertainment pocket. They give it to people they know, cronies and we would never do what we want to do in this country.
Let us give this bank, not another venture capital, Microfinance and Small Loans Centre (MASLOC) or Savanna
Accelerated Development Authority (SADA). Let us give it to a regulator that has been tried and tested and would make sure that the people who are applying are worthy of the export credit guarantees that we are going to give. Thank you Mr Speaker.
Mr First Deputy Speaker 12:10 p.m.
Before we listen to the Deputy Minister, let us hear from Hon Titus-Glover.
Daniel Nii Kwartei Titus-Glover (NPP --Tema East): Mr Speaker, I equally rise to contribute to the Motion on the floor with regard to the EXIM Bank Bill. It is on record that EDAIF currently supports Small and Medium-scale Enterprises (SMEs) that are struggling on their feet to enable them to be at par in the business that they do.
My fear is that, with the coming of this EXIM Bank, it should not look like all this work being done by EDAIF is going to be taken away and for that matter, these small banks coming would not have the support they were enjoying before.
It is very crucial that sometimes, some of these banks that are coming do not want to look at startups. The risk of some of these banks is that, they do not want to entertain them at all. But these are people who have struggled to come up on their feet and this is the angle which they want the support of the bank to enable them grow.
So, I would want to emphasise that, in the formation of this bank, we should look at these SMEs that are enjoying under the feet of EDAIF. Again, sometimes the timely release of these moneys to applicants is very important.
The rigorous procedures that they go through and the timelines in which these applicants are asking for these funds to enable them work is very important.

Mr Speaker, it is my prayer that, this Bank that is coming would not continue the way that the normal banks are going in.

Mr Speaker, we are aware there were specific banks that were set up like the Agricultural Development Bank and the Bank for Housing and Construction solely look at these areas within our economy. But at the end of the day, we begin to diversify, and look at what is happening.

I would want us to focus on why EXIM Bank is being created so that we support and promote our local economy to let the people go.

Mr Speaker, there is also the issue of long-term financing. If one listens to the debates and argument from trade and industry, all they are asking for is long- term financing. This is because the short- term financing that they are looking for is not helpful to them. It is my prayer that, they look at long-term financing which would enable them to do what they want to do.

Mr Speaker, I would like to shed some light on what my Hon Colleagues, Matthew Opoku Prempeh and Haruna Iddrisu have said about the need for the Ministry of Finance to be taking the work of Bank of Ghana (BoG).

Mr Speaker, we need to be very careful. Politicians should take themselves away from this role -- It is not in the interest of all of us. Let BoG sit to regulate how this Bank is to be formulated. If indeed, there is a need for us to look at it -- this is a commerce Bill.

Mr Speaker, with all due respect, it is unfortunate that, when the referral was

made, the Committee on Trade and Industry was not part. We could have drawn the attention to this area, where we would want to give this power solely to the Hon Minister for Finance.

Mr Speaker, I share the idea that this is a commerce bill, and for that matter the engine of this economy is trade and Industry. The role of the Ministry of Finance is basically to sit and supervise. Their duty is to see how best Government revenue is raised and spent. For them to sit and be pushing button is not in the interest of this country.
rose
Mr First Deputy Speaker 12:30 p.m.
Yes, Hon Gyan-Baffour?
You would each have your turn. It is an important Bill and I would allow Hon Members to contribute as much as possible. From Hon Gyan-Baffour, we would go to Hon Ayariga and then, to the Hon Ranking Member and then, the Hon Minister for Finance can wind up.
Prof. George Y. Gyan-Baffour (NPP - - Wenchi) 12:30 p.m.
Mr Speaker, I rise to support the establishment of this Bank.
Mr Speaker, the transformation of the economy of this country put in its proper perspective means that raw materials are converged into goods for exports and export led economy. That is the goal that probably this one is pursuing, which is the r ight goal and approach to transforming the economy of this country. It has to be export led.
In doing so, to be able to make our industries more competitive, we need to find a way to make loanable funds cheaper and more available. And therefore, an EXIM Bank should be the one to drive that effort.
Indeed, as other Hon Members were talking about the interest rates and all that, yes, it is subsidised in a way, because it would come from either EDAIF or even in certain countries, the money to support EXIM Bank are from the Consolidated Fund to drive it.
So, it certainly would have to be a way of giving them an interest rate which would make them more competitive and therefore it certainly would be at a lower rate.
Mr Speaker, I am really worried about the way and process this thing went through. This is the baby of the Hon Minister for Trade and Industry, and indeed, we have been talking about it in our Committee for almost two to three years.
The Hon Minister for Trade and Industry is here. I have always been talking to him about it that, it should be established. Now that it is being established, when I met the Hon Minister for Trade and Industry, he did not even seem to know that they were going to do that. Which means that, this thing was done by the Ministry of Finance -- all by itself.
Mr Speaker, it was wrong and I expect that this Memorandum was going to be signed jointly by the two of them -- the Hon Ministers for Finance and Trade and Industry. This is because in every country, this drives commerce and the commerce minister in this country is the Hon Minister for Trade and Industry. But unfortunately, he was not part of the whole process.
Mr Speaker, when it got to the House, I was not here at that time, but I was expecting that it would be a joint referral
to the Committees on Finance and Trade and Industry but that too was not done. Now, here we are with a Bill like this.
Mr Speaker, there are a lot of fundamental errors in this Bill that if we do not amend, we are going to reverse the progress that we have gained in terms of separating fiscal policy from monetary policy.
We have fought over the years to separate the two so that the Hon Minister for Finance does not control the Governor. That is why the Banking Act was established; -- to ensure that, there is a separation between monetary and fiscal policy.
What they are doing here, with this law, is to reverse that gain by giving the monetary policy actions to the Hon Minister for Finance. That is to say that, the Hon Minister for Finance is the only one this Bank would be accountable to.
Mr Speaker, there is a heading which says; Independence of the Bank. The Bank is not independent. It says that;
4 (1) “Except in otherwise provided in this Act, the Bank is independent”…
Yet, it goes down to say that;
(3) “The Bank is accountable to the Minister on the achievement of its object”…
Mr Speaker, how can the Bank be independent if it is to report to the Hon Minister for Finance?
Mr Speaker, if we do not take care, it is going to be another institution where the Hon Minister for Finance would control and indeed the Government would be controlling the Bank. Then, it should not be a Bank.
Mr First Deputy Speaker 12:30 p.m.
As I indicated earlier, we would have Hon Ayariga, Hon Member for Old Tafo, and then, Hon George Aboagye, we would come to the last contributor -- unless the Leadership do not want to contribute.
Minister for Environment, Science, Technology and Innovation (Mr Mahama Ayariga)(MP) 12:30 p.m.
Mr Speaker, I rise to support the Motion and listening to the argument on both sides, I just want to see if I can provide some perspectives.
There have been previous efforts to support exports but most of those efforts have been focused on supporting the development of the products in-country, especially, in the agricultural sector.
If one looks at the previous efforts, they were focused on supporting farmers, and producers locally, to be able to produce in a way that makes them competitive internationally.
We are moving to a point where we would want to support Ghanaian exporters when they go out there, bid for jobs abroad but have a weak financial base. That is essentially what this is aimed at achieving. So, it is a form of financial guarantee, insurance et cetera that enables them to be competitive when they go competing abroad with others for projects and supply of goods and services.
We are creating a Bank, and I hear arguments about why we would create a Bank outside the purview of the Central Bank. The reason we are creating a Bank outside the purview of the central bank is simply that, this is a different kind of a Bank. It is a place where revenue mobilisation is not through people's deposits but through a levy which would create a fund from which we would take decisions to support specific business bids abroad.
While I share with the concern that previous efforts failed because people tended to abuse such facilities, we cannot say that we would not make the efforts because of the previous failures.
Mr Speaker, the argument that, Ministers and the people at the Ministry of Finance are likely to abuse it should rather spur us to introduce mechanisms within the Bill that will prevent that from happening. That is why the proposal ensures that, within the Governance system, it is a good thing there should be stakeholders who would serve as a check on this happening.
Mr Speaker, but that does not deny the fact that we cannot allow it to be given the character of a bank. If it is given the character of a traditional bank, then what we seek to achieve cannot be achieved because the central bank cannot make

arrangements which would disadvan- tage other banks. They cannot set low interest rates for this one and then allow the traditional banks to continue to operate at very high rates. They cannot do that — [Interruption]—Clearly, if by legislation, we vest the Minister for Finance with the powers that—
Mr First Deputy Speaker 12:40 p.m.
Hon Minister, address the Chair and ignore the asides.
Mr Ayariga 12:40 p.m.
Mr Speaker, if by legislation, we vest the Minister for Finance with those powers, then this body would be able to take such discriminate decisions in favour of strategic sectors when it comes to supporting exports.
Mr Speaker, it is for this reason that Hon Members should support the arrangement that we have in this Bill, to vest the Ministry of Finance with the power to be able to exercise such judgement to discriminate in favour of certain strategic sectors which we, as a country, want to support to be globally competitive. That is the entire objective of this proposal.
Mr Speaker, on that note, I think that this Bill is definitely a great initiative. In response to an earlier argument about why it is the Ministry of Finance and why it is not jointly signed by the Ministry of Trade and Industry, et cetera — it is not only the Ministry of Trade and Industry that is relevant in this matter. I think that every other sector is relevant in this matter.
This was sent to Cabinet and the Minister for Trade and Industry sits in Cabinet meetings, and it clearly came out
from Cabinet as a matter supported by all Ministers, including the Minister for Trade and Industry. Therefore, the issue of the Ministry of Trade and Industry not signing the Memorandum, is neither here nor there.
Mr Speaker, this is a policy objective supported by all Ministers through Cabinet, and has been brought before us to consider.
Mr Speaker, on that note, I support the Motion.
Mr Dominic B. A Nitiwul—rose --
Mr First Deputy Speaker 12:40 p.m.
If you do not mind, I would like the Leadership to come in at the tail end.
Mr Nitiwul 12:40 p.m.
Mr Speaker, I just want to seek clarification from the Hon Minister. This is because he says that, all the Ministers are in support of this initiative. It is also on record and in this House that the Ministry of Trade and Industry has been complaining.
Mr Speaker, is the Hon Minister 100 per cent certain about this? Is that what he said?
Mr Agbesi 12:40 p.m.
Mr Speaker, I think the Hon Deputy Minority Leader should come clearly. It is on record that in this House, the Minister for Trade and Industry complained. I think we need more evidence from him, otherwise, we should please do the right thing.
Mr Nitiwul 12:40 p.m.
Mr Speaker, my Hon Colleague knows that the House includes Committees and the Hon Speaker. So, he should ask the Hon Chairman and the Hon Speaker.
Mr Nitiwul 12:40 p.m.
Mr Speaker, I did not hear your direction. Is Mr Speaker saying that the Minister for Trade and Industry did not complain and so I should withdraw that? Mr Speaker, I did not hear what you said.
Mr First Deputy Speaker 12:40 p.m.
We do not have it on record here that there was any complaint from the Ministry of Trade and Industry.
Mr Nitiwul 12:40 p.m.
All right.
Mr Speaker, I withdraw the expression, “on record”. But I know for a fact that the Minister for Trade and Industry has complained that they are not part of the Bill.
Mr Speaker, if my Hon Colleague says that it is not on record in this House — I know that for a fact and that is why I directed him to the people to ask.
Mr First Deputy Speaker 12:40 p.m.
Hon Deputy Minority Leader, you may know as a fact, but as Parliament and a House of records, we do not have any such record.
Prof. Gyan-Baffour 12:40 p.m.
Mr Speaker, let us reserve this discussion on this issue, because, it was not on this floor, but somewhere in the House, there was a communication to that effect. Please do not let us go there because we do not want to get involved; and I am sure you do not want to get involved either in that.
Mr First Deputy Speaker 12:40 p.m.
Not at all.
Dr Anthony Akoto Osei (NPP—Old Tafo) 12:40 p.m.
Mr Speaker, we are discussing the principles of the Bill and the Report of the Committee. But it appears that we might lose track of that aspect.

Mr Speaker, in this case, we also hear that there is an apparent conflict between the Ministry of Finance and the Ministry of Trade and Industry. That is not the business of this Parliament. It is not our business. But the fact that it has occurred suggests that there is a problem in governance.

Mr Speaker, for the Minister for Environment, Science, Technology and Innovation to come to the floor of Parliament to suggest that all Cabinet members were there, only for the Minister for Trade and Industry to oppose --
Mr First Deputy Speaker 12:40 p.m.
Hon Member, I thought we had sorted that out.
Dr A. A. Osei 12:40 p.m.
Mr Speaker, no! We have not.
Mr First Deputy Speaker 12:40 p.m.
We have. As far as no records exist that the Ministry of Trade and Industry has lodged a complaint or protested as far as this House is concerned, I believe we move on.
Mr Kyei-Mensah-Bonsu 12:40 p.m.
Mr Speaker, I thought that there are some matters that we just rolled over. But if it is that, concrete evidence would be sought — I think that the Hon Deputy Minority Leader related to some complaints that have been lodged in certain circles. It was not in plenary; that is true.
But if petitioners come to this House and lodge petitions with the Rt Hon Speaker, the House takes notice and recognises the existence of the petition or protest, even though it is not in plenary.
Mr First Deputy Speaker 12:40 p.m.
That is where you make available for our consideration, a copy of the petition or protest, then we would be in a position to consider it.
Mr Kyei-Mensah-Bonsu 12:40 p.m.
Mr Speaker, the House takes notice, and that is the point that I have made. If we have to go into that — before your good self entered this House, there had been a ruling on this by Rt Hon Justice Annan, who purported to have taken into his custody, the Economic Policy and Budgets of the entire nation, submitted by the Minister for Finance.
He said he had taken it on behalf of Parliament and that it should be deemed that Parliament knows that he had taken it on behalf of Parliament.
Mr Speaker, there is a ruling on this — [Interruption.]— and so it has become part of the practice. And so if the Hon Speaker takes, maybe, a petition that is submitted to him, Parliament should recognise that, if I should take you into recent history.
Mr Speaker did the communication from the Attorney-General to the Rt Hon Speaker which was transmitted on behalf of the House to the Council of State, come to plenary?
Mr Speaker, let us not go there. Let us debate the principle and everybody would be happy.
Mr First Deputy Speaker 12:40 p.m.
Anyway, as far as the issue of the Council of State is concerned, I believe that communication
was sent to the Hon Speaker, and he invited Leadership; they had discussions over it — I am talking about the use of some facilities here in Parliament.
He had discussions with Leadership and a certain decision was taken, whereupon the Clerk was directed to respond appropriately. So, my problem is that, we do not have any evidence that any such protest had been made at any forum. So, if we can make some progress.
Dr A. A. Osei 12:50 p.m.
Mr Speaker, that matter, having been put to rest for now, I think the object of the Bill is what we should concentrate on.
Mr Speaker, as aquasi-governmental institution that would act as an intermediary between national govern- ments and exporters to issue export financing, what that suggests is that the current infrastructure is not working.
Whatever it is, we have the Ghana Export Promotion Council (GEPC) which is a promotion institution; we have the Export Finance Company Limited (EFCL), which has been in existence for -- I do not know how many years .But if one should ask of where its office is, nobody knows.
I know the EXIM Guarantee functions but on the periphery and I know there is a third one -- the bigger body, EDAIF which is supported with funds partly from tax revenue.
If we put all these four agencies together and we do not get value for money, then obviously, there is a need to find the appropriate institution to do what we want it to do.
Mr Speaker, in other countries, US EX- IM, China EXIM, Korean EXIM, they were set up purposely to promote their nationals' private businesses. That is all.

That is why every time a loan comes from such places, it is sole sourcing. It is purposely to promote US businessmen, or Asian businessmen among others. So, there is not just an economic purpose but also a political purpose to seek American interest.

The question we must ask is, is it designed to do same or more, and if so, how best can that be done? I submit that if we leave the current structures, we would not get anywhere because they have been totally moribund.

We need an institution that has power and resources and can say that we want to promote Ghanaian businessmen who weave kente -- They can just say that, but they must make sure they resource them well enough to do the job. If we subsidise through lower interest rates, we must give them export insurance among others.

With regard to best practices, I do not know of any EXIM bank anywhere in the world that is regulated by a central bank. The US EXIM Bank, they get their powers from the Senate, not Federal Reserves. So, maybe, Parliament should be the regulator and not the central bank. The central bank has its role enshrined in the Constitution.

The fact that it is called a bank does not mean that it performs the same things as Agricultural Development Bank (ADB) or any other bank; it does not.

Mr Speaker, I am sure the Government of Ghana would be one of the contributors. By implication, if you go to page six of the Ghana Export-Import Bank Bill, the central bank is going to have to give up its shares in these other institutions to fund the proposed EXIM Bank.

My question to the House is, have we examined it well enough to understand that the current structure does not work? If that is our conviction, then clearly, we need to establish an institution.

I think we can look at how it works, when we get to the amendments, but given my knowledge of the four institutions, with what we have, we might as well forget it. I think we can all agree that we need such an institution to push purposefully Ghanaian business people, mostly for exports, not imports - exports. Once we accept that, I think we can deal with it.

Mr Speaker, another issue that I have is about the structure and I think the Ministry of Finance should take note. This practice of the Bank of Ghana (BoG) being the regulator and a shareholder of institutions should be taken out.

How can one be a judge in one's own court? It is important that in considering the Bill, we make sure that as quickly as possible, the Bank of Ghana's holding of Export Finance Company Limited and EXIM Guarantee should be relinquished. I suggest this freely to the Government.

After all, BoG is 100 per cent owned by government and there should not be any negotiation that BoG should sell their shares to government. Government should take the shareholding for free because it was funded by Government anyway.

Mr Speaker, currently, all the four institutions have a total of almost 150 employees around the country. Is this what we want? Thankfully, even if Parliament passes this Bill into an Act, we are going to need a transaction advisor, as it were, who would have to lead us to --
Baffour — rose
Mr First Deputy Speaker 12:50 p.m.
Hon Member, is it on a point of order?
Prof. Gyan-Baffour 12:50 p.m.
Mr Speaker, in one breath the Hon Member says that the BoG should not be the regulator of this bank and in another breath says that because they own some shares in one of the institutions that they are going to take up, they should relinquish it, because they would be the regulator and shareholder at the same time. I am --
Dr A. A. Osei 12:50 p.m.
My Hon Colleague should please let us listen to ourselves and also look at the Report.
I am saying that, BoG should not have shareholding in banks that it regulates. Currently, it owns 85.3 per cent share of Export Finance Company Limited -- BoG should be made to relinquish those shares for free to government. [Interruption.] They are putting all of that together.
Prof. Gyan-Baffour 12:50 p.m.
The Hon Member has also suggested that they should not be regulated so what is the point?
Dr A. A. Osei 12:50 p.m.
It seems My Hon Colleague is not following my argument.
I do not believe BoG should regulate the EXIM bank. The EXIM bank we seek to create is going to consist of Export Company Finance Limited in which BoG owns 89 per cent shares; so it cannot be a shareholder. It is not going to regulate it.That is the point. The point is that I do not like this business of BoG holding shares -- [Interruption.] -- It is my opinion.
The Hon Member might disagree but BoG holds shares in ADB; it is wrong. More importantly, I do not know of any country where a central bank owns shares
in any EXIM bank. EXIM bank is a quasi- commercial bank. EXIM China is not controlled by the central bank of China, no. [Interruption.] It is the Ministry of Commerce or Finance and not the central bank. [Interruption] No! That is for a fact. It is for a reason that they do not regulate but my point is that the idea is good.
Mr Speaker, along the way, we should take time to clear these other deficits that we have, that is BoG holding shares in
EXIM.
I think the current number of employees,would not want to do the work of the transaction advisor. But if we do not get a lean and mean institution, it would become just like what we have now.
I know that like EDAIF, they have been complaining about this proposed Bill. But as you said, it is not for me to ask who should be in charge. I realised the Minister for Environment, Science, Technology and Innovation or Minister for Employment and Labour Relations -- it does not really matter.
Let us make sure that its functions are done in accordance with best practices of the world, particularly, US EXIM, Chinese EXIM. They are the aggressive banks, and as the Hon Member said, it is a political decision; it is not just an economic decision.
But if we feel that way, then the principle of setting up a new and improved export guaranteed institution is what we are looking for.
I would want to plead that as it is in the Committee's Report, we should not combine GEPA; it is just a marketing instrument.
Mr Speaker, when we create the financing company, we need expertise to sell our exporters. If we combine the two and put them all together, we may be performing double functions. So, for now, I support the idea of creating an EXIM
Mr First Deputy Speaker 1 p.m.
Well, thank you very much.
Hon George Aboagye followed by Hon Dr Appiah-Kubi and then if Leadership would want to contribute, we would come to them. Finally, the Hon Minister for Finance would wind-up.
Mr George Kwame Aboagye (NDC -- Ahanta West) 1 p.m.
Mr Speaker,. I rise to add my voice to the Bill and in support, I wish to state the following:
The EXIM Bank all over the world, in principle, is a bank in international domain. It does not have much to do with the banking activities within the country. Therefore, the import is to make sure we source goods from very competitive sources to get cheaper imports as well as goods with competitive prices for the manufacturing operation of a business. The export, obviously, is also to push our goods into other countries.
So, in principle, it could be working as an offshore bank. Of course, it is a bank within the country and so the bank should operate as such. Therefore, all these other aspects of regulation, supervision and others would go according to the country's ways and systems that are put in place. I do not want to go there; I do not know much about banking supervision, regulations and all those things.
Mr Speaker, what I know is that, currently, our manufacturing sector is at negative two per cent of Gross Domestic
Product (GDP) and we would want to increase manufacturing, and conse- quently increase employment.It is a welcome innovation to have the EXIM Bank.
Small business would have to grow but I believe we are missing the point by looking at that as the main, or perhaps, the critical factor for the establishment of the EXIM Bank.
I believe that EXIM Banks do big business and therefore we should not be afraid of saying that we would want to promote big businesses. These small scale businesses are fine. There are many banks that can help small scale businesses, but here is a situation where a US$50 million project is mooted and then we have to get a syndication.
It is even difficult for Ghanaian banks to syndicate for US$10 million. So the EXIM Bank can associate with foreign banks and other banks outside and make it possible for a Ghanaian to do big time business. [Interruption] -- US$50 million; yes.
Mr Speaker, I will give you an example. Take a cable and wire company; Reroy Cables Limited, Cable and Wires Inc.; they have to get the copper to manufacture the cable. So, they would have to source for cheaper copper in Turkey, China, Azerbaijan or any other place where it is cheaper before they would manufacture the copper within the country and sell to Nigeria Oil Company that lays the copper.
So, it goes through an EXIM Bank and sources the cheaper input; they produce and export to neighbouring countries and Nigeria. So, that is, in practical sense, what the EXIM Bank is supposed to do.
Mr Speaker, I think this bank would help Ghanaian enterprises and manufac- turing companies a lot within the West African sub-region.
Also, Ghanaians are known to be lagging in taking contracts like construction from other countries. We went to Liberia to help them. After that, we came home very happy to be peace brokers. But Nigerians stayed there and took contracts for reconstruction.
If we had EXIM Bank, we could have taken contracts to reconstruct the roads and bridges that had been bombed but we did not have the needed support. So, services, construction and other sectors would also have to be considered.
In the manufacturing sector in Ghana, construction is about 12 per cent. We are doing well in construction but we are not doing well in manufacturing. So this bank is very critical. All those administrative things, let us leave them -- Let us look at the business. What business do we expect to develop from the establishment of this bank?
I think that we are ripe for the occasion. Ghanaian businesses are very innovative and creative from where I had been sitting and watching and it is long overdue. Let us not look at which bank supervises what; what Minister does what; those things should be sorted out by those who know.
In my view, from the point of business, we must support this Bill so that Ghanaians can do business on a competitive basis with their counterparts abroad.
Ghanaians have gone out to source from other EXIM Banks and they have been successful. But then here we are; we have the opportunity and we would want to, more or less, strangle the baby before it is born because of institutional friction or high handedness like an Hon Minister going to control a bank; that it is not good.
Whether it would stand alone or be independent in a way, or be controlled by a bank, it must have a regulator and that must come under the Bank of Ghana's Regulations. That is how it should be.
So, Mr Speaker, I am grateful for the opportunity and I wish to state that I support the Bill. I welcome this bank because it would help Ghanaian businessess to manufacture more, create jobs, export more and import efficiently.
Thank you very much.
Dr Kojo Appiah-Kubi (NPP -- Atwima Kwanwoma) 1 p.m.
Thank you very much, Mr Speaker, for giving me the opportunity to add my voice to the Motion on the floor of the House.
A lot of things have been said about the EXIM Bank but I am concerned about the process which we are using to establish this bank.
If you look at the EXIM Bank, indeed, there are a lot of advantages to be derived from its establishment. What I am worried about and what I would like to express concern about is the process that we use in establishing this bank.
If we look at this bank, we could see that there are lots of policy frameworks which are already in existence. Unfortunately, the establishment of this bank is not linked to these policy frameworks. This is where I have a bit of concern because it does not bring the various policy frameworks into a coherent policy strategy towards promoting exports.
If we look at the various policy frameworks, it may include the Ghana National Export Strategy which is still in a draft form; the Industrial Policy, the Private Sector Policy and the Trade Policy. All these policies are located in various and different Ministries.
Dr Kojo Appiah-Kubi (NPP -- Atwima Kwanwoma) 1 p.m.
We are creating an EXIM bank which would also be located in the Ministry of Finance.
Mr Speaker, if we would want to reap the benefits of the EXIM Bank, it is necessary to bring them together to look at the existing policy frameworks so that we could have a coherent policy strategy towards promoting industrialisation and manufacturing, especially, value addition which would provide the inputs for exports.
Another concern that I have is the source of financing. It has been said that the Government will be a major contributor of financing and it is necessary that Government contributes towards it. But there had been policy frameworks where the Government had made similar pledges for financial provision.
One could remember the Private Sector Policy where there was even an Industrial Action Plan and there was a fund to be created.
This was launched with a fanfare under the Ministry of Trade and Industry. Since then, this Fund has not even received anything from Government.
So, it remains to be asked, is this going to experience a similar fate? That is also a question that we need to ask ourselves because at this particular time of scarce resources, how are we going to get the financing from the Government? Is it not going to be another empty promise?
I think that the establishment of an EXIM Bank is necessary, but the most important thing is to implement the existing policy frameworks which are supposed to provide the basis for industrialisation and value addition. It is

with this value addition that we may want to promote our exports. If these policy frameworks are not implemented, how and where do we get the exports that we are supposed to finance?

I believe it is necessary to establish an EXIM Bank, but the most important thing is to implement the existing policy frameworks.

Mr Speaker, with these few words, I thank you.
Mr First Deputy Speaker 1:10 p.m.
Thank you very much.
Hon Members, I would move on to the Ministry of Finance, unless the Leadership wants to make an input.
rose
Mr First Deputy Speaker 1:10 p.m.
Hon Chairman of the Committee, you are on your feet; what is it about?
Mr Avedzi 1:10 p.m.
Mr Speaker, I would want to correct some error that we have in the Report. The reference that we made to the Interpretation Act, the number should read the Interpretation Act, 2009 Act 792 instead of Interpretation Act, 1960 (CA4).
Thank you.
Mr First Deputy Speaker 1:10 p.m.
Thank you.
Dr A. A. Osei 1:10 p.m.
Mr Speaker, since the Hon Chairman is making some corrections, on page 2 of the Report, under item 3.0, which is entitled “Background”, line 3, the word “indigenous” should be changed to “traditional”.
That is the appropriate word. Otherwise, it does not make sense. [Interruption] -- Sorry, paragraph 3.0, “Background”, line 3 on page 2 of the
Report, it says, and with your permission, I would like to quote:
“…added non-traditional products to the largely indigenous…”
Mr Speaker, the word “indigenous” is wrong. It should be “traditional”.
Mr First Deputy Speaker 1:10 p.m.
Hon Chairman of the Committee, are you in agreement?
Mr Avedzi 1:10 p.m.
Mr Speaker, I am in agreement.
Mr First Deputy Speaker 1:10 p.m.
Very well.
Mr Kyei-Mensah-Bonsu 1:10 p.m.
Mr Speaker, the Hon Chairman and the Hon Ranking Member cannot just get-up and propose for the other to agree. This is because what language the Committee -- The Committee does not comprise just the two of them. The language the Committee is employing is borrowed from the Explanatory Memorandum of the Bill.
In the second paragraph of the Explanatory Memorandum, the expression there, and with your permission, I would like to quote:
“In line with the nation's economic industr ialization process, the composition of exports has gradually added non-traditional products to the largely indigenous exported products.”
Mr Speaker, the proposal from the Hon Ranking Member is to address this; but in so doing, they should go to the heart of the matter before us, which is the Memorandum. They cannot just say that we should delete what is in the proposal.
Mr Speaker, the Hon Minister for Finance is sitting by the Hon Chairman.
Mr Avedzi 1:10 p.m.
Mr Speaker, we are not actually copying what is in the Memorandum into our Report. We are actually referring to the main traditional export products. That is what is referred to in the Memorandum as indigenous.
The Report says that what they are actually referring to is the traditional export products and that is what we are also copying down. So, we are not copying what is in the Memorandum into the Report.
Mr Kyei-Mensah-Bonsu 1:10 p.m.
Mr Speaker, article 106 of the Constitution is the guiding provision, it relates to what Cabinet sets out to do. Cabinet has told us this. Unless they are saying to us --
Mr Speaker, in fact, the Hon Chairman of the Committee is flanked on his left by the Hon Minister for Finance and on his right by the Hon Deputy Minister for Finance. The two have not complained. Cabinet has not complained. Mr Speaker, the Hon Chairman says that he cannot even breathe. The two are suffocating him.
So, how is he liberated to provide this, more or less, amendment to the Memorandum? That is my worry before I start my own contribution.
Dr A. A. Osei 1:10 p.m.
Mr Speaker, the point is that, in the Committee, it was pointed out to the Hon Ministers that what they really meant is “traditional” and not “indi- genous”. This is because non-traditional exports are also indigenous. So, they accepted that.
Mr Speaker, we know how many times memoranda come here and some of us want to change them, but we know we
Mr First Deputy Speaker 1:10 p.m.
Very well.
Hon Minority Leader, could we hear from you as far as this Bill is concerned?
Minority Leader (Mr Osei Kyei- Mensah-Bonsu) 1:10 p.m.
Mr Speaker, let me begin with the same article I quoted, which is article 106 (2) (a) of the 1992 Constitution, and I take it from the Memorandum.
Mr Speaker, a purpose of a memorandum to a Bill as provided under article 106 (2) (a) is that, and with your permission, I beg to quote:
“…explanatory memorandum setting out in detail the policy and principles of the bill, the defects of the existing law, the remedies proposed to deal with those defects and the necessity for its intro- duction;”
Mr Speaker, we know of the policy and principle. They are well expressed in the Memorandum. We are told in paragraph 2 of the Report that, and with your permission I bet to quote:
“…the composition of exports has gradually added non-traditional products to the largely indigenous exported products. Though, there is fairly an impressive development in the export sector, the perceived idea of transforming Ghana's economy towards an export-led economy has made it necessary to
adopt a policy to drive this laudable idea.”
rose
Mr Kyei-Mensah-Bonsu 1:10 p.m.
Mr Speaker, I see a kneejerk areaction from the Hon Minister for Employment and Labour Relations. He is labouring; and the Hon Minister for Finance is here. I do not know what he is --
Mr First Deputy Speaker 1:10 p.m.
Hon Minister, is it on a point of order?
Mr Haruna Iddrisu 1:10 p.m.
Mr Speaker, rightly so.
Mr Speaker, the Hon Minority Leader has tried to establish the mischief rule to know why the policy response.

Yes, that is mischief; he is introducing the EXIM Bank because traditional institutions such as the Ghana Export Promotion Council, Export Financing and Guarantee Institution, Export Finance Company Limited, Eximguaranty Company Limited, Export Development and Agricultural Investment Fund (EDALF) and others have not been able to address the issue.

So, the mischief is clearly established in the next paragraph where the Hon Minister explains that “…despite these efforts…”

So, it is to tell him that it is to cure those defects that is why the Hon Minister is introducing the Bill.

Thank you.
Mr Kyei-Mensah-Bonsu 1:20 p.m.
Mr Speaker, this whole idea about establishing an Export Bank is intended to add value to our traditional exports. I am struggling to see the value addition the Hon Minister has injected into this discourse.
Mr Speaker, I thought it should be made explicit to us what the difficulties are. He said, he just mentioned it in person. I thought that, anybody taking this Bill and addressing himself to the Memorandum should be able to understand clearly the difficulties, challenges and mischiefs this Bill is intended to cure. That is my point.
Mr Speaker, the emphasis on this Ghana Export-Import Bank Bill is to really improve our exports even though it mentions imports. Of course, the imports are to facilitate exports. Again, it is not too clear in the construct of the Memorandum. I have listened to Hon Colleagues who have spoken to it and I have really educated myself about the intent to it. I thought that the Memo- randum would lead the discussion.
Mr Speaker, it does appear that both the Hon Chairman and Hon Ranking Member of the Committee who have other information given to them at the Committee level are leading this discourse, which is good for this House. I thought, however, that it has not been set out well in the Memorandum.
Mr Speaker, it would appear then that the Memorandum was hastily written and that is my worry.
Mr Speaker, there have been some disagreements about the assistance to investments to facilitate exports which would be offered by such a Bank and who ultimately should be in control of the Bank, whether it should be within the confines of trade and industry, or maybe, finance.
Mr Speaker, I thought the object of the Bank should provide us with the way forward. The object of the Bank is to support and develop directly or indirectly trade between Ghana and other countries. Indeed, I thought that should lead us to the determination of where it should lie and who should have, should I say,”control” over this and whether it should be finance or the Hon Minister or Ministry responsible for trade.
Mr Speaker, if we agree that this construct was agreed to at Cabinet, including my good Friend the Hon Minister for Employment and Labour Relations who challenged certain provisions even though at Cabinet, perhaps, he might have had his tail in between his legs.
Mr Speaker -- [Interruption] -- If the Hon Majority Leader, wants an answer from me, can he please speak into the microphone and I will provide him with a succinct and unambiguous answer. [Laughter.]
Mr First Deputy Speaker 1:20 p.m.
Please, address the Chair.
Mr Kyei-Mensah-Bonsu 1:20 p.m.
Mr Speaker, he is afraid. He does not want to talk into the microphone.[Laughter.]
Mr Speaker, there are legitimate matters that we must answer before we go forward with it, for they go to the heart of the Bill.
Mr Speaker, I also thought that, the Finance Committee, to which the Bill was referred, should have also served this House a better purpose. I know that the Hon Member for -- The Hon Ranking
Mr Kyei-Mensah-Bonsu 1:20 p.m.


Mr Speaker, our Standing Orders provide and I will just want to quote Standing Order 169. It provides and with your kind indulgence, I quote:

“The Committee on Finance shall be composed of twenty-five Members, to which shall be referred Bills, inquiries and other matters relating to finance and the economy generally”.

Mr Speaker, I thought that even where there was a deficit in evaluating the Bill and presenting to this House a Report, they should have filled us in with the effects that this Bill is going to have on the economy generally and whether it is going to inject some colossal value addition and improve the landscape for this country.

Mr Speaker, I have not seen that much in the Report and I would want to appeal to the Committee, because I always talk about this, that when they have such reference, they should tell us in concise, concrete and unambiguous language, what effects this Bill would have on the economy; whether or not it would be colossal.

Mr Speaker, this is because we should not forget that we are going to erect certain administrative structures and they are going to derogate from improvement in the landscape; or perhaps, the status quo after all, is going to remain. They should do that. I keep saying that. The Hon Members of the Committee may not be able to do that individually, but they should have the ability to engage

consultants so they would properly inform this House about where we are going.

Mr Speaker, it should not just be making laws and we have very little addition to our landscape. It does not help anybody. It should be within their competence to so advise this House about every step that we take. It has not happened.
Mr First Deputy Speaker 1:20 p.m.
Is it on a point of information?
Dr A. A. Osei 1:20 p.m.
Mr Speaker, I think he is right. Sometimes, we try to do that but in this House, anytime you even slightly veer into the economy in general, you are perceived as going into somebody's sector. Already, there is an argument that it should have been referred to a joint Committee. So, we are very careful not to be seen as usurping other people's authority.
Mr Speaker, however, I think it would be useful for this House to have a practice where the minutes are made part of the records and laid. This is because that would reflect the true discussion that goes on.
Mr Speaker, the Committee Reports cannot be so exhaustive but if you go to the minutes, all these discussions took place. We just do not intend to capture them in the Report. So, I accept his invitation and we will now be bold so that if people tell us that we are veering to their areas, we will say, that is what the House wants anyway.
Mr Speaker, so, thank you very much.
Mr First Deputy Speaker 1:20 p.m.
Very well.
Hon Minority Leader?
Mr Kyei-Mensah-Bonsu 1:20 p.m.
Mr Speaker, I thank the Hon Ranking Member, but that, indeed, is the remit of the Committee. If they have difficulties, they should let us know.
Mr Speaker, whatever information that is availed to them at the Committee level, it is the plenary that ultimately takes the decision.
The practice in Ghana is not like what obtains elsewhere. I know, for instance, that in the Australia Parliament, if a matter is referred to a Committee and they delve into it, plenary does not discuss it. After they have concluded, they submit the Report and plenary does not debate it. It is taken as it is given. If one wants information, one looks for their reports and read.
Mr Speaker, the practice here is not like that. The plenary needs to inform itself about what information the Committee themselves had which enabled them to arrive at certain conclusions and observations that they recommend to the House. If we have the conclusions and we are left in limbo about what informed those conclusions, the House would be imperiled or severely disadvantaged.
So, it is important that they do not only have the minutes transmitted and made, as we debate it, but they capture the salient issues in order that we may come to an informed decision about whatever they submit to us. That is the point that I am making.
Mr Speaker, the Hon Ranking Member is prompting that it should be true for all Committees and I agree with him. This is because that has always been my submission.
rose
Mr First Deputy Speaker 1:30 a.m.
Hon Member, he says he agrees with you.
Dr A. A. Osei 1:30 a.m.
No! Mr Speaker, I did not speak, he did not hear me.
Mr First Deputy Speaker 1:30 a.m.
No! I was considering what he said earlier.
Very well.
If that is the case, then I am ignorant of it.
Mr Kyei-Mensah-Bonsu 1:30 a.m.
Mr Speaker, even now that he spoke, he did not speak into the microphone but you heard him. The one that he just said, he did not use the microphone.
Mr First Deputy Speaker 1:30 a.m.
All right.
Hon Minority Leader, can we move on?
Mr Kyei-Mensah-Bonsu 1:30 a.m.
Mr Speaker, he should be told that where you sit, you hear everybody wherever they speak from. But sometimes, you pretend not to hear. [Laughter.]
Mr Speaker, I think --
rose
Mr First Deputy Speaker 1:30 a.m.
Yes, Hon Member, is it on a point of order?
Mr Haruna Iddrisu 1:30 a.m.
Mr Speaker, rightly so, because the weight of the word from the Hon Minority Leader is a strong one.
Mr Speaker, you are the head of this august House and for him to impute the words intentional or unintentional, that you “pretend” -- Mr Speaker, it may send a wrong connotation outside this House.
Mr Haruna Iddrisu 1:30 a.m.


But to say that Mr Speaker “pretends” -- Is not good enough.
Mr First Deputy Speaker 1:30 a.m.
Hon Members, I think I hear those who catch my eye. That is what is important.
Mr Kyei-Mensah-Bonsu 1:30 a.m.
Thank you very much. Mr Speaker, you hear when you have to hear.
The other matter that I guess we should be very clear in our minds about is the direction of this establishment and where to situate it. If you look at the charge of the bank, that is the functions of the bank, the independence of the bank and if you look at the composition of the governing body, then one can draw his or her own conclusions as to whether it would be independent or not independent.
If it should be independent, Mr Speaker, you would want to wean that structure off -- [Interruption] --
Mr Speaker, with respect, the Hon Majority Chief Whip is supposed to ensure tranquillity in the House but he is the one generating noise.
The point I am making is that, we should determine where the burden should lie -- If it is supposed to be independent and if the functions are those that are set out here, then we would need to look at the composition of the governing body of the bank. Otherwise, by this, there would certainly be undue governmental interference.
So, let us be very clear in our minds about what we would want to do. If we
would want to grant it considerable independence, then we need the mighty hand of Government, including in particular, the big hands. Mr Speaker, I know the Hon Minister for Finance has physically, not very long hands but his hands are very strong and --
Mr First Deputy Speaker 1:30 a.m.
I hope you are not referring to him as a “slim macho”.
Mr Kyei-Mensah-Bonsu 1:30 a.m.
[Laughter] -- Mr Speaker, I like that construction, that he is a “slim macho”.
We should be careful not to saturate that body with personalities who eventually would scuttle this and draw the bank into the armpit of Government. We do not want undue Government interference and we should be very sure about the direction. If we think that we need a bold presence of Government to determine the course, it should be governmental agenda and that is a different matter.
So, let us determine at the very base, what the direction should be in respect of the independence and functions as set out in the Bill. Then I guess we could make an informed judgment and determine what is right so that this bank does not suffer the fate of many others that have come before it.
As for the rate of interest to be exacted, I think that we should learn useful lessons from the Agricultural Development Bank (ADB) and the National Investment Bank (NIB). We should learn useful lessons from them and if it is that we are talking about some subsidies, whether the effort would be sustainable or otherwise, let us do serious brainstorming before we erect the structures.
Majority Leader (Mr Alban S. K. Bagbin) 1:30 a.m.
Mr Speaker, I rise to support the Motion. I would want to state that, Government in the Memorandum to the
Bill in its 2015 Budget Statement and Economic Policy, gave an intention to establish the Ghana Export-Import Bank. Government gave an indication as to the object of the bank and that is what is captured by the Bill.
In my view, the mischief rule here is to put in place a law which is not in place. There is hiatus, there is a gap, there is the need for a legal review for the establishment of such a bank to lead the country in its efforts to facilitate and accelerate export. That is where we are moving towards; an export - led economy.
So, we do not have any legislation to that effect. We have some laws dealing with trade and others but they are not adequate. So, the mischief rule is to put such a law in place and that is properly captured in the memorandum.
Mr Speaker, if we do not take care, we would be arguing that the Agricultural Development Bank (ADB) should come under the remit of the Ministry of Food and Agriculture. It is under the Bank of Ghana and not under the Ministry of Agriculture. So, the fact that with this one, the object is to deal with trade does not necessarily put it under the Ministry of Trade and Industry. [Interruption.] I am not responding to you.
Mr First Deputy Speaker 1:30 a.m.
Hon Majority Leader, could you please address the Chair and ignore the asides? I would be very grateful.
An Hon Member 1:30 a.m.
This vengeance is too much.
Mr Bagbin 1:30 a.m.
Mr Speaker, the Hon Minority Leader -- [Interruptions.] He is what?
Mr First Deputy Speaker 1:40 p.m.
Order! Order!
Mr Bagbin 1:40 p.m.
Mr Speaker, that is the object of the Bill and I believe that the passage of -- [Interruption.]
Mr Ahmed Ibrahim 1:40 p.m.
-- rose --
Mr First Deputy Speaker 1:40 p.m.
Yes, Hon Member?
Mr A. Ibrahim 1:40 p.m.
Mr Speaker, I need certain things to be clarified. When the Hon Minority Leader made a comment and the Hon Majority Chief Whip said ‘this vengeance is too much', then Hon Matthew Opoku Prempeh said the Hon Majority Chief Whip should not refer to the Hon Minority Leader as Hon Minority Leader but should refer to him as the “shadow President” --
Mr First Deputy Speaker 1:40 p.m.
Hon Member, I did not hear that because he did not have the floor. [Laughter]
Mr A. Ibrahim 1:40 p.m.
Anyway, Mr Speaker, I remember he said sometimes Mr Speaker does not hear most of the things.
Mr First Deputy Speaker 1:40 p.m.
Yes, Hon Deputy Minority Leader?
Mr Nitiwul 1:40 p.m.
Mr Speaker, the man was speaking directly into the microphone. You did not hear what the Hon Matthew Opoku Prempeh said.
Dr Prempeh 1:40 p.m.
Did I say anything?
Mr Nitiwul 1:40 p.m.
But you heard what he said and it has been captured by the Hansard. So he must withdraw that statement. This is because he is making a statement that you did not hear and the Hansard Reporter heard it, and so he must
Mr Nitiwul 1:40 p.m.


This is because I am sitting right by him and I did not hear it.
Mr First Deputy Speaker 1:40 p.m.
Hon Deputy Minority Leader, to the extent that I did not hear what he is purported to have heard from Hon Matthew Opoku Prempeh, it ends it. It is not part of the record.
Yes, Hon Majority Leader, can we make some progress?
rose
Mr First Deputy Speaker 1:40 p.m.
No! You are at the centre of the controversy. I do not want to listen to you now, please.
Yes?
Dr Prempeh 1:40 p.m.
Thank you, Mr Speaker.
The Hon Deputy Majority Chief Whip purports to be the recorder of parliamentary Business. He purports to be the “Chief Clerk of Parliament.”
Mr Nitiwul 1:40 p.m.
I did not hear him.
Dr Prempeh 1:40 p.m.
Mr Speaker, if you do not let him apologise and it is totally expunged, then he should be referred to the Privileges Committee for abusing our Standing Orders.
Mr First Deputy Speaker 1:40 p.m.
Hon Members, I think my ruling settles it all. I
did not hear him make any such comments and therefore it is not part of the record.
Yes, Hon Majority Leader, could you continue with your submission?
Mr Bagbin 1:40 p.m.
Thank you, Mr Speaker.
The Hon Deputy Minority Leader used a phrase which I think is unparliamentary. He said the man who was speaking into the microphone, in reference to the Deputy Whip of the Majority. I belileve that is not proper.
He said, “the man speaking into the microphone”. [Interruption.] It is on record. That was how he referred to Hon Deputy Majority Chief Whip. That is not proper and I think he should withdraw that.
Mr Speaker, clearly, the debate has shown that the House supports the Bill, and I would not want to belabour the point again. So, I would end my con- tribution here.
Mr First Deputy Speaker 1:40 p.m.
Thank you very much.
Could we now hear the Hon Minister for Finance winding up?
Mr Kyei-Mensah-Bonsu 1:40 p.m.
-- rose --
Mr First Deputy Speaker 1:40 p.m.
Yes, Hon Minority Leader?
Mr Kyei-Mensah-Bonsu 1:40 p.m.
Mr Speaker, I noticed the discomfort of some of my Colleagues even when they did not hear officially from the Hon Member for Manhyia North.
Mr Speaker, in this House, a former Minority Leader has described himself to a raucous applause by the backbench at the time that he was the alternate President, even though the Minority at the time had a presidential candidate. It
did not cause any discomfiture. Now, you see the allergy from the backbench of the person who made that statement.
Mr Speaker, I am worried. People should be principled.
Thank you.
Mr Bagbin 1:40 p.m.
Mr Speaker, there is a vast difference between an alternate President and a shadow President. Opposition is an alternative Government. Governance is about the business of both those in Government and those in opposition.
But we have moved away from using the term opposition. We prefer Majority and Minority. Well, one could sit on both sides of the House at any time depending on the decision of the electorate. That was why at that time, I said I was the alternate to the then His Excellency President John Agyekum Kufuor.
Mr Kyei-Mensah-Bonsu 1:40 p.m.
Mr Speaker, in this world, the greatest events are observed in their shadows.
Mr First Deputy Speaker 1:40 p.m.
Very well, Hon Minister, could we hear you?
Mr Kyei-Mensah-Bonsu 1:40 p.m.
And one illuminates from the shadows. That is why the Psalmist says, “Yea though I walk through the valley of shadow of darkness… I shall not want”. We shall not want, we shall conquer and subdue the corrupt elements in this society. [Hear! Hear!]
Mr First Deputy Speaker 1:40 p.m.
Yes, Hon Minister?
Hon Members, I would want to plead with you, now we are waxing so biblical. I am afraid where we would go to, but let us hear the Hon Minister.
Minister for Finance (Mr Seth E. Terkper) 1:40 p.m.
Mr Speaker, I rise to urge Hon Members to support the Bill as has evidently come from both sides of the House. I just wish to clarify some points.
Mr Speaker, the first one is that the Export-Import Bank proposals were submitted to His Excellency the President by a commission which he set-up representing both the private and public sectors. Some of the issues raised on the floor of the House as we informed the Committee were hotly debated and discussed and the Committee took indeed, expert advice and looked at legislation and policy.
For example, the Committee looked at export finance and credit institutions in advanced countries. I would not go through the whole list, but some which I have had particularly in finance agreement comes to this House; Koofers of France, the Export Credit Guarantee Department, the Parliament of the United Kingdom, China Export-Import, Korea Export-Import and many of which have provided financing for agreements that have come to this House.
Similarly, the Export-Import and Development Banks such as South Africa and emerging economies such as Thailand, Korea and Brazil were also considered.
The underlying legislation for all these institutions did not place them under their central banks, including the United States of America (USA) Export-Import as has been pointed out, which is under a charter of the USA. As we speak, that charter is under consideration before the Senate.
Minister for Finance (Mr Seth E. Terkper) 1:50 p.m.
I therefore, would want to assure the House that, in the matter of governance, a legislation was followed.
Nonetheless, the Committee recognised the importance of the central banks which is why the Central Bank has a nominee on the Board and it is envisaged that the Bank would still apply its prudential rules as happens in Germany under Kredi- tanstalt für Wiederaufbau (KFW), which is both the development and the exports in our institutions.

Mr Speaker, the Business of this House suggests or clearly demonstrates why we must have an Export-Import Bank.

As has been pointed out by some Hon Members, Export-Import Banks exist to promote business, and therefore, anytime we deal either through a loan or other means, in coming to this House, what we are doing is actually importing products, and in some cases even agreements come with underlying contracts which require that the imports for the construction must come from those countries.

Mr Speaker, it is therefore, important in our export strategy that we also have a similar institution and all the bricks in their development have gone through this stage.

I would also wish to state that, the balance between finance and trade is important and indeed, the Bill strikes that balance, because in talking about credit and guarantee, which is the essence of the bank or the elements of export promotion, the export-import bank is regarded as both a bank and a development institution, which is why the policy element is very important.

Mr Speaker, on the other hand, before I get there, let it be noticed that the amendments that were made in the Bill related to the financing elements. When it comes to promotion, the Ghana Exports Promotion Act was not amended. Indeed, the law splits and continues to allocate financing for the Export Promotion Authority, the Bill, which is before the House.

In amending the Export Development and Agricultural Investment Fund (EDAIF) Act, it continues to recognise the financing element for the bank and the Export Promotion Authority, which law has not been repealed. Therefore, that is the promotion element.

Similarly, standards are very important when it comes to exports. That is the prescribed function of the Ghana Standards Authority. Again, that Act has not been repealed and therefore, the policy in establishing the bank clearly distinguishes between the financing and the guarantee, as opposed to the other elements of exports, which are still vested in those institutions, particularly the promotion and the standards elements.

The balance between trade and finance is therefore well placed in the Bill. It does not take every export function and every trade function from the Ministry of Trade and Industry.

What it does is that in establishing the bank, it moves the financing and guarantee elements under the Minister for Finance, but preserves the promotion standards and other trade elements under the Minister for Trade and Industry in existing legislation.

Mr Speaker, my final point is the balance again between finance and policy. It is recognised that in dealing with other banks, the Bank of Ghana is dealing with financial institutions whose core business is banking.

In dealing with export-import and development banks, they are established to promote a very important element of Government policy, as the Hon Ranking Member explained, which therefore, requires continuing oversight.

Mr Speaker, since the Second World War, KFW for example, continues to be under the Ministry of Development and Economy and the Ministry of Finance in Germany. So, these were taken into account.

Mr Speaker, in concluding, I wish to crave your indulgence to acknowledge the contribution of the late Lionel Van Lare Dosoo, who actually was the Chairman of the Committee established by the President and who was deceased at the time of the submission of the Report to the Ministry of Finance and to the Presidency.

I wish that this House recognises his significant contribution. He was the Chairman and he also played a similar role when it came to the Ghana Infrastructure Investment Fund.

Mr Speaker, with these words, I wish to urge Hon Members -- I already see very active support on both sides of the aisle -- To continue to support the Bill through the other stages so that it becomes law and takes the development of this country a stage further.
Mr First Deputy Speaker 1:50 p.m.
Thank you very much.
Hon Members, I must express my gratitude to you for the very r ich contributions that you have made to this
debate. I believe that in the course of its consideration, we would look at all the details of it and look at best practices so that finally Ghana would be the winner.
Question put and Motion agreed to.
Mr First Deputy Speaker 1:50 p.m.
Yes, Hon Majority Leader, we are in your hands.
Mr Bagbin 1:50 p.m.
Mr Speaker, in fact, because of the time and I did not hear from you, we would have wished to handle the Local Government Committee's Report.
Mr First Deputy Speaker 1:50 p.m.
Very well, if that is your pleasure, then let me make the rider, that having regard to the state of proceedings, I direct that we Sit beyond the stipulated time just for the purpose of taking into account certain items, if the need arises.
Yes, Hon Minority Leader?
Mr Kyei-Mensah-Bonsu 1:50 p.m.
Mr Speaker, the Leadership of Parliament, including your goodself, have an assignment which would be transacted a few minutes from now, so I thought that if we exited now, we could prepare ourselves.
However, Mr Speaker, now that the Hon Minister for Finance is here and because he himself is using the official printer of Government information, if one needs information from the printers one could easily access the information from the printers, that is, the Assembly Press.
Mr Speaker, it is becoming increasingly difficult to access the information that they transmit to us, including even the Bills. People would like to have copies of the Bills to make inputs once referral is made to the relevant Committee.
Mr First Deputy Speaker 1:50 p.m.
Very well.
Hon Members, from that information you have furnished us with, it looks like we might have to direct the Hon Minister for Finance to liaise with the Assembly Press so that we stick to one email address for the avoidance of doubt. Is that possible, Hon Minister?
Mr Terkper 2 p.m.
Mr Speaker, we would consult accordingly and inform Leader- ship. What I also know is that it is a publishing house and also a printing house.
Being statutory, it often uses Ghana but we would consult, including the Attorney-General, who actually authorises the printing and report to Leadership so that the clarification can be given to the House.
Mr First Deputy Speaker 2 p.m.
I would be grateful if after your interaction with them, you would liaise with the Leadership of the House to give them the feedback.
Mr Kyei-Mensah-Bonsu 2 p.m.
Mr Speaker, once we are at that, we should also let him know that they keep changing even the website address. It is www.ghpublishingcompany.com. Another one is www.ghanapublishing.com. Then we have www.ghpubco.com. Which is which? It is so confusing. I do not know whether they do not intend that people be able to access the documents -- [Interruption.] They are all Bills.
Mr First Deputy Speaker 2 p.m.
Very well.
Thank you very much.
Hon Members, in the light of the information, I would want to direct that the proceeding be brought to a close.
ADJOURNMENT 2 p.m.
  • The House was adjourned at 2.02 p.m. till Thursday, 18th February, 2016 at 10.00 a. m. in the forenoon.