Strengthen team at WTO - Parliament

House vote against proposed amendment on Immigration Bill

Reduce lending rates - Parliament

House adopts report on Concessionary Loan Agreement

Parliament approves Dutch loan

58 million cedis royalties cannot be disbursed

Accra (Greater Accra) 8 Dec. '99

Members of Parliament on Tuesday called for the strengthening of Ghana's negotiation power at the World Trade Organisation (WTO) to secure favourable terms in the global trade.

They said the nation's representation is not enough and asked the Ministry of Trade and Industry to find the necessary expertise to defend the aspiration of Ghanaians.

Members were debating a motion for the adoption of a report on the WTO Fifth Protocol to the General Agreement on Trade and Services-Protocol on Financial Services.

Under the protocol, Ghana is to liberalise its insurance and banking sectors thereby making them more open to competition from within and outside the country.

The protocol seeks among other things, to make Ghana the destination of surplus capital from abroad thus improving its financial inter-mediation and investment through better resource allocation.

Alhaji Alabira Ibrahim, PCP-Mion, calling for the adoption of the report, said the nation's team at the WTO was too weak to make any impact on the global trade regime.

He said under the protocol, Ghana would be liberalising its financial sector and called for the necessary safe nets so that the country would not suffer during any capital flight.

Alhaji Ibrahim cautioned against over liberalisation of the sector because there are many conflicting details that may baffle weak nations who tread that path.

" We all know what happened to the economies of the 'Asian Tigers' and even Brazil and the rest, when they suffered capital flight."

Mr Kwadwo Baah Wiredu, NPP- Asante Akyem North, said the protocol could help check the perennial shortage in foreign exchange in the country.

He asked the National Insurance Commissioner to make public how insurance firms in the country are faring and when they would be enlisted to aid fund mobilisation in the public domain.

He said since Ghana will be committing herself to financial liberalisation when she adopts the protocol, the insurance and the banking sectors should be properly guided.

Sqn-Leader Clend Sowu, NDC-Anlo, said Parliament needed to be well briefed on the protocol and the entire scope on the WTO.

" We are going to adopt something that we do not know very well. We need more information on what is going on in this trading arena."

In another development, Mr Yaw Osafo-Maafo, NPP-Akim Oda, called on the House to let the sub committee on Trade and Industry have a fair share in the scrutiny of such protocols since it is more linked to trade.

" What is taking place in Seattle, in the United States, means that trade can no longer be seen in a narrow view of finance."

Mr Samuel Sallas-Mensah, NDC-Upper West Akim, called for the repeal of the Foreign Exchange Control Act, which may create problems for the liberalisation of the financial sector.

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Accra (Greater Accra) 8 Dec ’99

A proposed amendment moved by Mr Agyare Koi-Larbi, NPP-Akropong, on the Immigration Bill attracted a heated debate in Parliament on Tuesday.

Mr Koi-Larbi proposed that a new sub-clause be added to Clause 36 of the Bill, which was being taken through the consideration stage.

The said Clause gives discretionary powers to the Minister of the Interior to order the deportation of persons, who have questionable character.

Mr. Koi Larbi proposed that "an order of deportation against any person with a valid permit shall be effective after confirmation of the said deportation order by the High Court."

While some members held the view that deportation orders from the Minister should not be subject to any approval from the Judiciary, others agreed with the proposed amendment that such orders should receive Judicial assent.

Nii Okaija Adamafio, the Interior Minister, described the proposed amendment as "strange", because in his view, "deportation is an Executive Act", and so "the Minister executes it on behalf of the State".

He pointed out that the power of deportation is not peculiar to Ghana and that in the developed countries like the United States and Britain, deportation orders have never ever been subjected to Judicial scrutiny.

"I find it difficult to appreciate if the Executive is not to be given the chance to exercise that discretionary power to deport anybody declared 'Persona Non Grata'".

Three members from the Majority, Mr A S K Bagbin, Mr Edward Doe Adjaho and Mr George Buadi, stated that the proposal was uncalled for since in their view, it was the prerogative of the Minister of the Interior to issue deportation orders.

Two members from the Majority side, Dr Alex Ababio, NDC-South Dayi and Mr Evans Kodjo Ahorsey, (NDC Ayensuano), however, agreed with Mr. Koi Larbi's amendment.

Dr Ababio's worry was that more often than not, reasons are not assigned for deportation orders.

To him, therefore, reasons for deportations should come from the law courts and that when explanations are not forthcoming, people may suspect and speculate fishy deals.

Mr Ahorsey expressed similar sentiments and said if deportation orders are not coming from the courts, then the fundamental human rights of those involved might be trampled upon.

Members from the Minority who spoke in favour of the Mr. Koi Larbi's amendment were Mr Joseph Darko-Mensah, MP for Okai Koi North, Mr Charles Omar Nyanor, MP for Upper Denkyira, Mr Yaw Osafo-Maafo, MP for Akim Oda and Ms Theresa Ameley Tagoe, MP for Ablekuma South.

After the debate, when the question was finally put, the House voted against Mr. Koi Larbi's amendment.

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Accra (Greater Accra) 8 Dec. ’99

Members of Parliament have asked the banks to reduce their lending rates to farmers to boost agricultural production.

They also called for the de-politicisation of programmes and incentives to attract all manners of persons into the mainstream of agriculture.

These were the consensus of members during a debate on a motion for the adoption of a report on a loan agreement between Ghana and the African Development Fund for 20.24 million dollars.

The credit facility is to be given to the Agricultural Development Bank (ADB) for disbursement to farmers, fishermen and agro-processors in the areas of food and cash crop production.

The interest-free loan is to be repaid within 20 years in 30 consecutive and semi-annual instalments.

The ADB, which is to re-lend to farmers at 38 per cent interest, is paying a five per cent lending interest to the government.

Dr Kofi Konadu Apraku, the Minority Spokesman on Finance, said inadequate credit to farmers, especially those in the rural areas, "is having a negative impact on agricultural growth in the country".

He said the average lending rate is too high for the poor farmer to make any meaningful profit.

Dr Apraku said bankers intentionally swell the lending rate as a safeguard to non-repayment or non-prompt repayment of loans.

He contended that the presumption that farmers do not repay loans because they see them as gifts stems from the fact that credit lines, programmes and even farming have been politicised.

" They see such loans as a gift for lending their support to the government in power; this belief which has run through most regimes must end."

Dr Apraku visited the issue of subsidies and asked the government to reconsider its re-introduction to help stabilise prices of food and farm inputs.

" Even in America, where only five per cent of the population engage in farming to feed some 250 million people and export 25 per cent of the total produce to the world food market, they have subsidies; what then do we gain by denying our poor farmers subsidies?"

He said the government seems not to have any potent policy on agriculture to address the mounting problems of the sector.

" The numerous loans that we have acquired have not transformed the sector.

If we do not solve the fundamental problems, no amount of loans can salvage the sector."

Mr Moses Asaga, a Deputy Minister of Finance, argued that government has shown and demonstrated that "it cares for farmers through its laudable policies and other subsidies".

He said the stabilisation of the producer price for cocoa at a time when the world's price of cocoa is tumbling, is a case in point.

Mr Yaw Osafo Maafo, (NPP-Akim Oda), on point of clarification, told the House that the Ghanaian cocoa farmer is paid 86 per cent of the world's price, adding "it is only when he is paid more than 100 per cent that he can be seen to be getting subsidies."

Mr Asaga continued that the provision of rural infrastructure, which has reduced the burden of the rural farmer tremendously, "is a form of subsidy with very far-reaching benefits".

He said the loan would address food production and supply to reduce to a remarkable level, inflation caused by food supply in the country.

The Deputy Minister said Ghana has succeeded in maintaining an agricultural growth rate that is always higher than that of population growth.

Dr Richard Winfred Anane, (NPP-Bantama), said the on-lending rate of 38 per cent should be reduced to unburden beneficiaries.

He said in future, sizeable portions of all loans for the sector, should be directed to the food, livestock and fisheries sectors.

Mr Johnson Aseidu Nketiah, a Deputy Minister of Agriculture, said the government provides subsidies to farmers in the form of free extension services.

In a situation where there is not enough money to subsidise the sector, the government thinks the best way out is to equip the farmer with the requisite scientific knowledge to enhance his operations, he said.

He assured members that government would do all that it could to address the high lending rate.

Winding up, Commodore Steve Obimpeh, Chairman of the Finance Committee, said the loan agreement when fully contracted, would help the farmer increase his contribution to the national economy.

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Accra (Greater Accra) 8 Dec ’99

Parliament on Tuesday approved a 10-million Deutsche Marks loan agreement between the Governments of Ghana and Germany for the purchase of 51 Buses for two transport agencies.

The Ghana Private Road Transport Union (GPRTU) is to benefit from 31 standard buses, while the Ghana Association of Travel and Tour Agents (GHATTA) is to receive 20 tourist coaches.

Commodore Steve Obimpeh (rtd), Chairman of the Finance Committee, said the loan which is payable in 40 years, carries a 10-year moratorium.

He said taxes and other public charges including import duties chargeable in Ghana shall not be financed from the loan, but shall be borne by the GPRTU.

He said the loan is to be on lent by the Government to GPRTU, and that on lending agreements between the Government and the beneficiaries would be signed in due course.

Cdr. Obimpeh expressed the hope that the facility would help improve transportation in the country.

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Accra (Greater Accra) 8 Dec. ’99

Parliament on Tuesday approved by voice count, a 4.44 million-dollar Dutch loan to finance the Volta Lake Debre Shoal Removal and Maintenance Dredging Works to facilitate inland water transportation.

The Export credit facility agreement between Ghana and ABN Ambro Bank of the Netherlands, will, however, have to be ratified by a resolution of Parliament supported by the votes of a majority of all members, in accordance with the Constitution and the Loans Act of 1970.

The chairman of the Finance Committee, Commodore Steve Obimpeh, moved the motion calling on the House to approve the committee's report on the loan agreement.

The House endorsed the committee's recommendation for tax exemption amounting to 8.4 billion cedis on the equipment and materials to be used in the execution of the project.

The project covers the purchase of dredging equipment, related materials, supervision, assembling, installation and the removal of the Debre shoals in the Volta Lake, maintenance, repair and training of local personnel.

Seconding the motion, Alhaji Amadu Seidu, Deputy Minister of Works and Housing and Member for Yapei Kusawgu, noted that inland water transportation has not seen much development.

He said the project for which the loan is being sought will, therefore, help to improve safety on the lake and promote river transport in the country.

He said inland water transport has the advantage of bulk haulage of commodities such as fuel and cement from the south to the north and foodstuffs, including yam, as well as livestock, from the north to the south.

Alhaji Seidu said if properly managed, river transport would ease the pressure on road transportation and thereby increase the life span of some of the country's roads.

The Deputy Minister expressed the hope that such a project would also be undertaken at the Yapei Port in the Northern Region to dredge the facility, which has been abandoned due to silting.

Mr C.O. Nyanor, (NPP-Upper Denkyira) and Alhaji Collins Dauda, (NDC-Asutifi South), supported the loan agreement since it would facilitate inland water transportation.

Mr Nyanor said, however, that river transportation "entails a lot of loading and off-loading, which cost a lot of money".

Alhaji Dauda expressed concern over farming along the shores of the lake and said; "these farming activities have robbed the lake of its tree cover and accelerated silting".

He, therefore, called for the education of the farmers along the Volta Lake to enable them to appreciate the adverse effect of their activities on the lake.

Sqn-Leader Clend Sowu, (NDC-Anlo), urged members to weigh the quantum of the tax exemption against the concessional part of the loan before ratifying it.

Under the agreement, the loan, repayable in seven years in 14 equal consecutive semi-annual instalments, attracts a 6.5 per cent interest per annum.

The first instalment is to be made six months after disbursement of the amount has taken place and not later than June one 2000.

It has a management fee of 0.375 per cent flat calculated on the loan and payable within 30 days from the date of the signing of the agreement.

An annual commitment fee of 0.5 per cent per annum is to be calculated daily on the withdrawn amount of the loan and payable quarterly in arrears from the date of acceptance of the offer.

Management and commitment fees will, however, be borne by the Dutch authorities.

The report said following the creation of the Volta Lake in the early 1960s, the government endeavoured to provide facilities that would promote commercial inland water travel for the movement of goods and services to enhance socio-economic activities within the lake influence area.

The report said the Volta Lake Transport Company (VLTC) was subsequently formed in 1970 to augment and enhance transportation on the Volta Lake.

The entry of the VLTC onto the scene to a large extent, improved commercial transportation on the lake, adding that cargo transport and passengers increased significantly and safety on the lake had also improved considerably.

The report, however, said in recent times due to inadequate rainfall coupled with other ecological factors, the water level of the lake started to decrease particularly in the dry season, when the water level falls below the Volta River Authority's minimum operating level.

This has adversely affected all season commercial navigation and the operation of the North-South services as a result of the exposure of rocky and sandy materials around Debre, 32 kilometres down stream off the port of Buipe in the Northern Region.

The report said the situation has also impacted negatively on the economic activities in areas along the lake corridor and consequently, operations and revenue projections of VLTC have suffered, resulting in heavy loss over the past years.

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Accra (Greater Accra), 9^th December 99

The Administrator of Stool Lands has not been able to disburse 58 million cedis, being royalties, since its inauguration in 1996, because the beneficiaries cannot be determined.

Parliament has urged the Administrator and the Minerals Commission to collaborate to determine beneficiaries immediately.

This came to light when a motion for the adoption of a report from the Administrator came to the floor of Parliament for debate on Wednesday.

Mr. Alex Kwaku Korankye, NPP-Asante Akim South, seconding the motion, called for a land policy to streamline the sale and acquisition of land to save the nation from the scourge of litigation.

He said land disputes continue to plague communities resulting in bitterness, injuries and even deaths.

Mr John K. Ackah, NDC-Aowin/Suaman, said the normal rent of two thousand cedis per acre is meagre and needs to be reviewed.

He urged traditional authorities to demarcate their areas and document the roll of tenants.

Mr. Ackah advised the administrator to employ more hands to help in the collection of rents because some remote areas have for a long time not been covered.

Paapa Owusu Ankomah, the Minority spokesman on Communications, asked the Administrator to find ways of adding the land acquisition fee known locally as "customary drink " to its revenue collection list.

" It deprives the nation of revenue that can be disbursed by the administrator in a more beneficial way."

The member called for a standard format of the land tenure system to scrap the disparities inherent in the present regime.

Mr. Johnson Asiedu Nketia, a Deputy Minister of Agriculture, said the present land use regime leaves much to be desired.

He said parcels of land are easily converted to uses other than those originally intended, thus creating serious planning problems.

"In the case of the urban areas, agriculture is greatly sacrificed for real estate development while the rural communities see the sinking of mine shafts instead of the farm projects they were told of."

Mr. Asiedu Nketia urged the administrator to intensify educational programmes to drum home basic issues like the use of royalties and who gets what in its sharing to stall the numerous disputes that emanate from it.

Mr. Kwadwo Baah Wiredu, NPP-Asante Akim North, queried the administrator for stating its poor staffing position in the report because the office has been empowered by the Constitution to use part of its resources for effective administration.

He said the financial report attached to the main body was hollow and could not capture the real financial situation of the office.

Mr. Baah Wiredu said he wondered why the office failed to keep the statutory 10 per cent of it total revenue collection over the three year period.

He called for more detailed financial reports in its subsequent submissions to convince the House of its commitment to transparency and accountability.

Mr. Emmanuel Baah-Danquah, NDC-Asutifi North, appealed to government to release lands vested in it to its original traditional owners.

Dr. Christina Amoako-Nuama, Minister of Lands and Forestry, thanked members for their objective analysis of the report and gave the assurance that the various concerns raised would be addressed.

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