Government loses vote in Parliament

Parliament approves 55 million-dollar Japanese concessional loan

Lobby Parliament in a positive way-Annan

Parliament has not taken any decision on academic user fees - Leader

Sogakope, Tarkwa and Gushegu to get hospitals

House approves loan to finance selected Arterial Roads

Report on VAT Amendment Bill not ready

Accra (Greater Accra) 22 Dec '99

The government on Tuesday lost a vote in Parliament on a resolution that sought approval for "Exemption from Levies, Duties and Taxes except ad Valorem Tax under Customs and Excise (Petroleum Taxes and Petroleum Related Levies) Act, 1998, Act 544."

At the end of voting, 104 was in favour of the resolution, with 44 against.

Since the resolution needed a two-thirds majority of all the 200 members to pass, the First Deputy Speaker, Mr Kenneth Dzirasah announced that it was lost.

The Minority members, however, voted in favour of two other resolutions.

The first was the House's approval for Tax Exemption for an amount of 219,014.50 dollars on equipment, tools and vehicles for the implementation of the Root and Tuber Improvement Programme (RTIP).

The other Resolution was the requests for tax Exemption for 216,282 dollars on equipment, tools, and vehicles for the implementation of the Food Crops Development Projects (FCDP).

Mr Moses Aduko Asaga, a Deputy Minister of Finance moved the two resolutions on behalf of his Minister.

Speaking to the Ghana News Agency after the House has adjourned "sine die" for the Christmas holidays, Mr Albert Kan-Dapaah, the Minority Spokesman on Mines and Energy, described the Majority's approach to the exemption as "ad hoc", and said there was the need for "a more comprehensive approach".

Mr Kan-Dapaah said if the resolution were passed, it would have exempted some selected companies from paying the levies, duties and taxes.

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Accra (Greater Accra) 21 Dec. '99

The Minority Group in Parliament on Tuesday urged the government to take comprehensive measures to boost the country's production base to create wealth for her development instead of depending on foreign loans.

Even though the group, together with its Majority counterparts ratified by resolution, a 55 million-dollar Japanese concessional loan, it felt that contracting "loans upon loans", would not bring about needed growth in the economy.

The loan, to be repaid in 20 years at 1.8 per cent interest per annum with a 10-year moratorium, is to finance the Economic Reform Support Operation (ERSO), as well as help ease the country's balance of payments problem.

In a motion for the approval of the facility, Commodore Steve Obimpeh (rtd), Chairman of the Finance Committee, said under the terms of the agreement, the loan is to be disbursed in two years with the Bank of Ghana as the implementing institution.

Proceeds of the loan as well as interest accruing therefrom are not to be used for the payment of fiscal levies or taxes imposed in Ghana.

Cdr. Obimpeh told the House that the government would open a counterpart fund account with the Bank of Ghana for the implementation of the economic and social development projects in the country.

He said the agreement has no special preconditions to the disbursement of the facility, adding that the loan satisfies the concessionary requirement of the government.

The Committee, therefore, recommended it for endorsement by the House to support the economic reform support operation.

Seconding the motion, Dr Kofi Apraku, the Minority Spokesman on Finance, noted that the loan should have been received last year, but the country could not avail itself of the opportunity because the conditionalities could not be met.

He expressed the hope that even though there is inadequate information on the conditionalities, these would be fulfilled to enable the country to get the loan for the intended purpose.

Dr Apraku said by approving the loan, Ghana has opted out of the Highly Indebted Poor Countries (HIPC) initiative, under which it could have benefit from a package of debt cancellation.

He said it seems the country has taken the easiest way by going after loans, which would not "get us out of our economic predicament".

He stressed the need to undertake comprehensive reforms by setting new priorities in the management of the economy.

"We are asking the Minister to come up with comprehensive measures to address the problem confronting the economy", the Minority ranking member stressed.

Dr Apraku said that by resorting to piecemeal solutions through borrowing, the government is refusing to recognise the economic crisis facing the country.

Mr Kwadwo Baah-Wiredu, NDC-Asante Akyem North, noted that there was no

document of approval by Cabinet, which should have accompanied the loan agreement, and said this is contrary to the loans Act.

He, therefore, insisted that Parliament should be given a copy of Cabinet's approval of the loan.

Alhaji Amadu Ali, NDC-Atebubu South, said the loan is a testimony of the confidence the donor countries have reposed in the government.

Mr Nicholas Appiah-Kubi, NDC-Jaman, said that the international community acknowledges the relative peace in the country, and as such is willing to help "us in our development efforts".

Mr Hackman Owusu-Agyemang, the Minority Spokesman on Foreign Affairs, said in any sound economy, loans should not be the driving force behind every development.

He said the country should be able to raise revenue for development through its own resources with comprehensive and prudent economic measures.

Mr Yaw Osafo-Maafo, NPP-Akim Oda, commended the Japanese for the facility saying that the country is the leading donor to Ghana.

He urged the government to look at its expenditure pattern so that the country would not be required to fill the gap created by over expenditure with external sources.

Mr Osafo-Maafo said Ghana lost the chance to avail herself of a 14 million-dollar grant because the government could not provide the counterpart support.

"When we come back next year, we shall ask the Ministry of Finance why the grant was allowed to lapse," he said.

Alhaji Malik Al-Hassan Yakubu, NPP-Yendi, said the Minority's criticism of the government of taking too many loans is done in good faith and in the interest of the country.

He said that if a country saddles itself with too many loans it indicates that its production base to create wealth is weak.

"When we take the loans because they are available, we must also remember the burden we are putting on our children and generations yet unborn".

Alhaji Muhammad Mumuni, Minister of Employment and Social Welfare, who is also member for Kumbungu, said there is nothing intrinsically wrong in taking a loan if you can get it.

He said some countries have tried in vain to obtain loans because the donors are not confident in the economies of those countries, adding, "our creditors see in our economy the potential for growth".

Mr Albert Kan-Dapaah, the Minority Spokesman on Mines and Energy, said the

country should be grateful to the Japanese for the loan, given the critical state of the economy.

He said of the 1.9 trillion cedis approved by Parliament for government spending, for the first quarter of next year, one-third would go into servicing the country's debt.

Mr Moses Asaga, a Deputy Minister of Finance, who is also member for Nabdam, said that the loan would among other things compensate for the shortfall in Ghana's foreign exchange earnings.

In reference to demands that Ghana should have availed itself of the HIPC facility, Mr Asaga said the government decided against accepting the HIPC status but instead was in favour of a "Ghana specific situation' in helping the country out of its economic difficulties.

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Accra (Greater Accra) 22 Dec '99

Mr Justice Daniel Francis Annan, Speaker of Parliament on Tuesday underscored the need for organisations to lobby Parliament as often as possible.

Addressing members of the House at the end of the last sitting for the year, Justice Annan noted that as a very legitimate feature of Parliament, lobbying should be done in a more positive manner to ensure that parliamentary democracy develops and flourishes.

He cited memoranda presented to the House by the Five Opposition Parties, Women and the National Union of Ghana Students, and said such were the kind of interactions, which augur well for parliamentary democracy.

The Speaker touched on capacity building and pointed out that no Parliament can function efficiently without the necessary logistic support.

He charged the leadership of the House to seek funds to tackle the second phase of the rehabilitation project, which he said, include the provision of committee rooms, offices for members and other facilities.

On the House's relations with the Media, Mr Justice Annan commended media practitioners especially the Parliamentary Press Corps for their co-operation.

He said generally, the Media has been very supportive to Parliament in terms of exposure, and urged practitioners to avoid complacency, and develop closer working relationships with the House.

He commended members for their positive and distinctive roles in ensuring the many successes chalked by the House on the international scene.

Turning to business in the House, Mr Justice Annan expressed concern about the level of heckling, interruptions and points of order that normally go on when a member is on the floor.

He agreed that interruptions such as "shame, shame", "yeah, yeah", are part of parliamentary procedure, but said these need to be reduced as often as possible, because they become unparliamentary, when they are carried to the extreme.

On attendance, the Speaker said it has not been very impressive, and, therefore, cautioned members to turn over new leaves and resolve to be more punctual as we enter the new millennium, to enable the House to make much progress.

Dr. Kwabena Adjei, Majority Leader, debunked the notion of some members of the public that some MPs do not contribute to proceedings on the floor of the House.

Dr. Adjei pointed out that the real work of Parliament is at the Committee level where business is conducted in a frank and non-partisan manner.

He warned the media not to be biased, adding that, in a Parliamentary Democracy, the Press should not be seen to be supporting any particular group but should be seen to be neutral and objective.

Mr Joseph Henry Mensah, Minority Leader, took the Ministry of Finance to task and said it should endeavour to appear before the House as soon as it resumes to brief it on the Ministry's economic package for Ghanaians.

Mr Mensah regretted that Parliament has not addressed the problem faced by cocoa farmers in cashing their Akuafo cheques.

On the Keta Sea Defence Project, the Minority Leader cautioned the implementing authority to let accountability be its watchword to ensure the successful implementation of the scheme.

He was optimistic that the acoustics problem facing the House would be improved to ensure that the business of the House goes on uninterrupted.

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  Accra (Greater Accra) 22 Dec. '99

Parliament on Tuesday said it has not taken any decision on the academic user fees of tertiary institutions as was claimed at a press conference by the National Union of Ghana Students (NUGS).

It expressed dissatisfaction at a publication in Ghanaian Times of a report by a special Parliamentary Committee, which looked into the issue of payment of academic user fees in tertiary institutions and the subsequent NUGS press conference on the issue.

A statement by Dr. Kwabena Adjei, the Majority Leader, explained that the report, which was referred to by the NUGS during their press conference, is to be laid before the House in accordance with Standing Order 161 and (1) and (2).

Dr Adjei said the report of the special parliamentary committee does not constitute a decision of Parliament.

" Parliament will debate the report and accept, modify or reject the recommendations contained therein.

" In accordance with the practice of Parliament, time ought to be scheduled for debate before a decision is taken on the report for communication to all the interested parties in the matter".

Dr Adjei noted that the committee in its recommendations had stressed the need for harmonisation of its recommendations with the conclusion of the recently held National Education Forum.

" It is therefore wrong and unacceptable for any person or group of persons to misconstrue the report of the committee as a decision of Parliament".

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Accra (Greater Accra) 22 Dec. '99

Parliament on Tuesday approved a fifty-five million dollar loan to finance sixty-bed hospitals in three medically under served towns in the country.

Sogakope, Tarkwa and Gushiegu in the Volta, Western and Northern regions respectively are to benefit from this arrangement contracted between the government and Austria.

The loan is repayable within 30 conservative semi-annual instalments over a 15-year period commencing five and a half years after completion of the turnkey projects.

Giving the background to the loan, Cdr. G. S. Obimpeh, Chairman of the Finance Committee, said contracting of the loan is in line with the policy of the Ministry of Health to provide each district with a 50-80 bed hospital that is equipped to provide comprehensive basic hospital care.

He said the three locations were chosen because of their peculiar circumstances.

" Tarkwa being the centre of gold mining industry, the area needs a hospital that can cope with the population concentration, the prevalent diseases and industrial accidents that are associated with mining activities.

He said the nearest hospital to Gushiegu is in Wendi, which is 60 miles away whilst Sogakope, which lies on the Trans-West African highway lacks a hospital.

The Bator Catholic Hospital, which lies over thirty kilometres north-west is the nearest to Sogakope and is accessible by ragged feeder road.

Dr Winfred Anane, NPP-Bantama, lauded the idea behind the project, saying it will greatly help to reduce infant and maternal mortality in these areas.

He called for a training incentive package for health personnel to stem the brain drain in the sector, which is undermining the running of health facilities.

Mr Kweku Acheampong Bonful, Deputy Minister of the Interior, described the package as " government's demonstration of taking health facilities to the rural population"

He said it is a measure to correct the imbalances in the system.

Mrs Grace Coleman, NPP-Effiduase - Asokore, asked about a " Saudi Fund" contracted by government to build district hospitals in the country.

She said the fund should be made available so that needy areas could benefit from it.

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Accra (Greater Accra) 22 Dec '99

Parliament on Tuesday passed a resolution giving approval to a loan for an amount of 20.9 million dollars to finance selected Arterial Roads in Sekondi-Takoradi and Tema under the Urban Roads Projects.

The agreement for the facility, which is between Ghana and the Agence Francais de Development (AFD) is to help rehabilitate a total of about 20.8 kilometres of road at an average cost 1,004,807 dollars per kilometre.

Mr Moses Aduko Asaga, Deputy Minister of Finance, moved the resolution, which was approved by 137 in favour none against.

Tabling the Motion earlier, Commodore Steve Obimpeh (rtd), Chairman of the Finance Committee stated that the completion of the project will not only see the rehabilitation of some of the principal roadways within the twin cities of Sekondi-Takoradi and Tema.

The project would also help to address the traffic bottlenecks, and do away with accident zones.

Cdr. Obimpeh said apart from renovation works on the affected roads, there will be ancillary works such as the construction of side walks, lateral drains, inter-sections, roundabouts and lay-by to improve and enhance safety and traffic management within those areas.

He hoped the project would complement the recent works, which were executed under the Urban Transport Project.

Contributing to the debate on the motion, members, especially those in whose constituencies the projects are sited, expressed satisfaction with the loan, because to them it has come at the opportune time to bring some relief to their constituents.

They included Mrs Gladys Asmah, the Deputy Minority Leader and member for Takoradi; Papa Owusu Ankomah, member for Sekondi, Mr Franklin Aheto, member for Ashiaman, Mr Seidu Paakuna Adamu, Deputy Western Regional Minister and member for Bibiani, alongside Mr Abraham Ossei Aidoo, member for Tema West.

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Accra (Greater Accra) 22 Dec '99

Parliament could not pass the Value Added Tax (VAT) Amendment Bill on Tuesday before the House rose.

Commodore Steve Obimpeh (rtd), Chairman of the Finance Committee told the House that the Committee's Report on the Bill was not ready.

The Bill seeks to increase VAT from 10 per cent to 12 and a half per cent.

The Bill was to be passed under certificate urgency. Read for the first time last week, it was to be taken through the second reading, consideration stage and the third and final reading on Tuesday, after which it would have been passed.

Cdr. Obimpeh assured the House that the Committee would work expeditiously during the recess in order to get the Report ready at the beginning of next the sitting.

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