GRi Parliament Review 14-01-99

Accra (Greater Accra), 14 Jan.

President Jerry John Rawlings today reaffirmed the government's determination to achieve a balanced budget by 2001. It will, therefore, continue with strategies and programmes that would ensure the attainment of that objective. Opening the Third Session of the Second Parliament of the Fourth Republic, the President said the government would not relent in its efforts at strengthening the framework for revenue mobilisation.

He said it is in furtherance of this objective that the Value Added Tax (VAT) has been re-introduced. ''While it is clear that VAT has arrived quite smoothly in most business establishments, we are aware that not all business people or ordinary citizens understand it, notwithstanding the considerable public education''.

President Rawlings said a few traders who are charging VAT have not registered with the secretariat while a number of companies, especially firms of professionals and consultants who should register, have not yet done so.

''Some particular sectors, such as the fishing, telecommunications and automobile industries, have expressed some concerns about how the VAT affects their industries. These concerns are being addressed''.

President Rawlings expressed his appreciation to the brewing industry, cigarette manufacturers and Unilever for advertising that prices of their products have not increased with the advent of VAT.

''In the case of Unilever most of their prices have actually come down. We are also happy at the news that prices at several hotels and restaurants have come down as was expected''.

President Rawlings appealed to other important sectors of the economy, especially flour millers, cement, building materials and auto parts industries, to follow the Unilever example.

The President said the government would continue with the tight monetary and fiscal measures needed to attain a single digit rate of inflation. However, attaining the single digit rate of inflation would require much more effort than was probably required in reducing the rate of inflation by over 50 per cent between 1996 and 1997. In spite of the continued growth in revenue from non-traditional exports, the increasing trend in trade and industry falls short of the five-year development plan of the Ghana Export Promotion Council within the context of the Vision 2020 objectives.

Government as from 1999 will begin to implement a new promotional strategy for Made-in-Ghana goods. Under the programme, all ministries and district assemblies would be required to source their purchases from local industries first. Export Development and Investment Fund (EDIF) is to be implemented this year. Existing Pre-shipment Inspection Scheme (PIS) is to be abolished within the first quarter of the year 2000 to be replaced by Destination Inspection Scheme.

The Ghana Gateway Project will go into full implementation this year. Export revenue from Free Zone Enterprises will show an increase of 35 per cent over the 200 million dollars estimated for 1998. Output of the Tema Oil Refinery increased from 28,000 barrels a day to 45,000 barrels per day following a refitting exercise.

Feasibility studies for the West African Gas Pipeline expected to be completed by the second quarter of the year. The third phase of the Aboadze Plant is expected to come on line by mid-1999. Volta River Authority is to build 200 megawatts thermal plant at Tema in 2000. Proposals received on the construction of 400 megawatts Bui hydro-lectric project is receiving government's attention. Every district capital has been connected to the National Electricity Grid. Four hundred additional towns and villages will be connected during 1999. Pilot projects to provide 1,600 homes, schools and health facilities with solar energy will continue.

Mining industry contributed 580 million dollars to the national economy last year, the single largest source of export earning. Government to continue efforts to reduce negative effects of mining.

As part of efforts to promote tourism, Ghana will host Africa-American Summit, the 33rd World Tourism Organisation Commission for Africa meeting and the 24th African Travel Association Annual congress.

Government spent 1.3 billion dollars between 1993 and September 1998 to maintain 18,244.80 kilometres of roads and to reconstruct 1,209 kilometres of others.

Road toll is to be introduced on a number of roads. Ghana Railway Corporation will be converted into a limited liability company.

Quay two at Tema port is to be dredged.

Expansion of water treatment plants will begin at Kpong, Weija, Barekese and Abesim. Rehabilitation of Akwapim Ridge water supply and the systems of Koforidua, Nsawam, Anum-Boso, Nkawkaw and Asamankese will commence this year. Six hundred and eighty new boreholes will be constructed and 5,000 others rehabilitated. Three hundred and seventy new hand-dug wells will be sunk and 1,500 others rehabilitated.

In 1998, eight kilometres of erosion prone coastline at Nkontompo, Shama, Axim, Tema and Busua were protected. A further 10 kilometres will be dealt with this year.

The problem of the Millennium bug is being addressed.

Access to health facilities has improved to about 75 per cent compared to 40 per cent in 1982.

Education reform programme is to be reviewed. School enrolment at primary, junior and senior secondary schools has increased. The number of universities increased from three to five.

Areas of divergence of the CAP 30 and the Social Security and National Insurance Pension schemes are to be addressed.

Ghana will continue to participate in ECOWAS and its monitoring and peace-keeping Group - ECOMOG.

Government reaction to the Report of Justice Archer Presidential Commission into the Police Service is to be published soon.

Accra (Greater Accra) 14 Jan. 

Some leaders of the opposition, reacting to the President Rawling=92s sessional address to Parliament, said it was only ritualistic and contained nothing new.

While Mr J.A. Kufuor, presidential candidate of the New Patriotic Party (NPP), said the address was most uninspiring and it showed a deep sense of failure on the part of the government of the National Democratic Congress (NDC), Dr Edward N. Mahama, leader of the People's National Congress (PNC), described it as a catalogue of problems that the government had neglected over the years.

Mr J.H. Mensah, Minority leader, on his part, said on an occasion like this, the President should have told the nation how far "we are from ensuring true democracy".

Mr Kufuor said President Jerry John Rawlings only tried to explain away why the government had not performed well instead of showing a more remorseful admission of failure of his government.

He said what the government should be doing in 1999, is to stabilise the macro-economic indicators to improve the investment and productive sectors, adding that the executive should promote the private sector to enable it to be competitive on the open market so that there would be no need to discriminate against goods made in Ghana.

The NPP presidential candidate said the government's intention to address the problem of unemployment after about 18 years in power, is belated but admitted that it is better late than never.

Mr Kufuor said, however, that one redeeming aspect of the address was the President's call for co-operation and objective debate with political opponents, describing it as "refreshing" and "constructive", since this enhances democracy.

"Co-operation and objective debate are good attributes and the President should be encouraged to live up to these objectives".

Dr Mahama said what the country needs now is a structural transformation to address the socio-economic problems.

For instance, he said, there should be a strong and vibrant agricultural base to support industry, and called for a national educational trust which the Limann administration intended to introduce to ensure that no-one was left out of the educational system.

If the NDC government had pursued this policy, there would not have been a situation where only 40 per cent of qualified applicants gain admission to tertiary institutions, he said.

Mr Mensah, on his part, said the President should have told Ghanaians about what he envisages to do to enable the country to fit comfortably into the next millennium.

He said the performance of the government is far from what is contemplated in the constitution.

On the President's optimism of his party winning the 2000 elections and his assurance of involving the opposition in government, Mr Mensah questioned where the incumbent would be to ensure this, since his tenure would end by then.

He wondered how an NDC government would involve the opposition in government when it had not deem it fit to dialogue with members on the other side of the political divide.

"In a democracy, the way to involve the opposition in government is to dialogue with them", he said, adding "You cannot consult me in my absence".

On the judiciary, Mr Mensah said it is legitimate that the President wants improvement in the judicial system.

Accra (Greater Accra), 14 Jan.

President Jerry Rawlings today called for the justice delivery system to be re-invigorated and properly focused to cope with the dictates of the modern dynamic economic environment where cases are disposed of in the ''simplest, speediest and just manner''.

He said the justice delivery system has a vital role to play in the realisation of the national development objectives outlined in the Vision 2020 programme.

President Rawlings said this in his state of the nation address to open the first meeting of the Third Session of Parliament of the Fourth Republic.

He said domestic and foreign investors see the land tenure and aspects of the legal and judiciary systems as serious obstacles and impediments to production and investment.

He gave a scenario in which some investors end up going bankrupt because an injunction has been placed on them over a land dispute by a judge who shows little interest in disposing of the case expeditiously.

''Where is the justice to the investor in this case? Where is the justice to the Ghanaian economy? Where is the justice in the Ghanaian judiciary system? What is the investor going to tell his compatriots and others about the so-called investment opportunities in Ghana, the gateway project and our vision 2020?'', he asked.

President Rawlings said the government, on its part, will play its role in this matter by continuing the legal sector reforms to enhance efficiency in the judiciary and the legal service and fit it for its new role.

''We shall step up the programme for the modernisation of our court structures as well as our court equipment. We shall strive to improve the conditions of our courageous and dedicated judges''.

He appealed to the Speaker and the Chief Justice to ensure that the judiciary, from the policeman, the lawyer right up to the judge play their expected role free of corruption and unnecessary delays.

President Rawlings noted that eight out of 10 regions now have tribunals, the exceptions being the Upper West and Upper East regions, while 122 community tribunals are in place with 43 of them without resident chairpersons.

A scheme has been worked out between the judiciary and the Ministry of Local Government and Rural development for district assemblies to get involved in the provision of infrastructure for the judiciary.

Accra (Greater Accra), 14 Jan.

All district capitals are now connected to the national grid and the electricfication of a further 400 towns and villages en-route the various district capitals will be completed this year under the Self-Help Electrification Programme (SHEP).

One thousand six hundred homes, schools and health facilities in 10selected villages will be provided with solar energy under an on-going pilot programme. President Rawlings said this in his sessional address to open the first meeting of the Third Session of Parliament of the Fourth Republic today.

He said to ensure energy security and increase future energy supply, the third phase of the Aboadze Themal Plant is expected to come in line by mid- 1999.

The VRA is negotiating with an American Company, CMS Generation of Michigan, to double the total capacity of the plant and to have the first 100 megawatts of this expansion on stream by the end of this year.

''The VRA has signed an agreement in principle ... with Marathon Power Company to build another thermal plant at Tema to provide 200 megawatts in the year 2000''.

Several investors have expressed interest in building the 400 megawatts Bui hydro-electric project and their proposals are being evaluated.

''Government is keen to interest local and foreign investors in developing other small to medium hydro-sites on commercial basis''.

The energy security programme also saw the refitting of the Tema Oil Refinery last year to increase its output from 28,000 to 45,000 barrels per day and the establishment of the Bulk Oil Storage and Transport Company to ensure efficient country-wide strategic reserves and distribution.

He expressed the hope that feasibility studies for the West Africa Gas Pipeline project will be completed by the second quarter of this year.

''Meanwhile, discussions have been initiated with Cote d'Ivoire on supplies of natural gas fron that country to the Aboadze thermal plant to provide for cheaper and cleaner fuel'', he added

Accra (Greater Accra), 14 Jan.

President Jerry John Rawlings announced today that the government will start implementing a new promotional strategy for Made-In-Ghana goods.

Under the programme, ministries and district assemblies will be required to source their purchases from local industries first.

Opening the Third Session of the Second Parliament of the Fourth Republic, the President said the programme ''is to help boost the market share of local industries and enhance their competitiveness''.

He said the year should also see the beginning of the implementation of the Export Development and Investment Fund to give leverage to the financial institutions to encourage them to lend more to the productive sectors, especially those in the non-traditional export sector.

''Efforts will also be intensified to recover outstanding loans under the Business Assistance Fund. The loans so recovered will be used to partially capitalise the Export Development and Investment Fund''.

President Rawlings said the government would abolish the existing Pre-shipment Inspection (PSI) in the first quarter of the year 2000.

This is in tune with the Gateway objective of achieving trade facilitation through the modernisation of Customs and Ports operations as well as a more effective Import Management Mechanism.

He said PSI will be replaced by a Destination Inspection Scheme which shall have as its key elements, a Selective Inspection Programme based on Computerised Risk Management System, an X-ray Scanning System and a Comprehensive Data Base of transaction values.

''This policy change...will enable Ghana to comply with World Trade Organisation (WTO) definition of values within the context of the special dispensation granted Ghana at the onset of the WTO agreement''.

President Rawlings said the Ghana Gateway Project itself will go into full implementation this year to attract a critical mass of export-oriented industries in the Ghana Free Zones.

The Fumesua Inland Free Port project and the Sekondi Free Port Zone enclave should attract the expected investment this year.

''It is projected that export revenue from Free Zone Enterprises will show an increase of 35 per cent over the 200 million dollars estimated for 1998'', President Rawlings said.

Accra (Greater Accra), 14 Jan.

A Medium Term Expenditure Framework Budgeting System under which a three-year budget framework is announced each year has been used in preparing this year's budget, President Jerry Rawlings said today.

Under the new system, the first year of the budget will be binding while the remaining two will be indicative.

The President said this in his Sessional Address to Parliament in Accra.

President Rawlings said the new system had been utilised in preparing the 1999 budget, yet to be read, "with a remarkable level of understanding and compliance."

He said the Ministry of Finance will provide a quarterly performance review for the assessment of progress and identification of strengths and weaknesses at regular intervals for timely adjustments to be made.

The following are highlights of his address: -

Economy -- Notwithstanding the difficulties encountered in 1998 the economy recorded some remarkable achievements. Inflation continued its decline trend throughout 1998.

For the second year running, interest rates followed the declining trend of inflation.

The days of turbulence in the foreign exchange markets are hopefully over and resources that were used to speculate on the foreign exchange market will now be diverted into productive economic ventures

The objective of achieving a balanced budget by the year 2,001 is still a priority.

Efforts at strengthening the framework of revenue mobilisation will continue.

Problems arising out of the implementation of the Value Added Tax are being addressed.

The pilot programme of reform of subvented agencies already in progress will be completed and a firm decision made regarding those to be commercialised, closed down or continued on the government budget.

Agriculture:-

Cocoa production in 1998/99 is likely to drop slightly below 400,000 tons, from 409,000 tons in 1997/98, because of poor weather during the formation of the crop.

Production of staple food items was better than expected in spite of erratic weather pattern during 1998. The decline in the production of maize in Central, Volta and Brong Ahafo regions was partly compensated by significant increase in production in the Eastern region.

Food production in the major food commodities in the Northern Sector is expected to outstrip the previous year's levels.

Total number of livestock increased and slightly exceeded the target of 6.5 million set for 1998.

Overall fish production showed a positive trend and this is expected to continue .

Simple irrigation systems are to be introduced from Israel and United States.

The Pre-Appraisal of the Extension, Livestock and Research components of the Agricultural Services Sector Investment Programme (AGSSIP) began in November 1998 will be completed by May 1999.

The Youth in Agriculture Programme and the Public Servants' Farming Scheme will now take off in the 1999 farming season.

President Rawlings said despite the erratic weather pattern experienced last year, production of staple food items was better than expected.

Compared to 1997, maize production is likely to show a decline in Western, Central, Volta and Brong-Ahafo Regions.

However, a significant increase in Eastern Region's output will partly compensate for the shortfall from the other regions.

Production of other crops except rice is expected to increase by between four per cent and 20 per cent. Rice recorded a marginal decline of about 1.2 per cent.

In the northern sector, production of major food items is expected to outstrip the previous year's levels. Compared to 1997, cereal production from the three northern regions will increase modestly.

Countrywide, cereal production will show a deficit of half a million tons. This deficit will be offset by an estimated surplus of 3.8 million tons of cassava, yam, cocoyam and plantain.

President Rawlings said livestock exceeded the target of 6.5 million set for 1998.

In poultry, high fluctuations in the prices of ingredients for feed, high interest rates and import competition slowed rapid development.

In the fishing industry, the government managed to rationalise importation of trawlers, thus reducing over-fishing.

''With the control of the fishing fleet, various stocks began to recover. This is expected to continue in 1999'', the President said.

President Rawlings said Technoserve, a US non-governmental organisation, was supported to import 10 tonnes of high yielding Brazilian cashew nuts from Nigeria to plant about 10,000 acres of cashew nuts and the trees will start bearing fruit in two to three years.

He said experts have been invited from Israel and the US to introduce simple irrigation systems that can be adapted by small-scale farmers.

The President said the Youth in Agriculture Programme (YAP) and the Public Servants' Farming Scheme could both not rpt not take off in 1998 as envisaged.

''The bottlenecks having been removed, however, YAP will take off during the 1999 farming season with emphasis on the cultivation of exportable mangoes, cashew and pawpaw'', the President said.

Accra (Greater Accra), 14 Jan.

The educational reform programme which started 10 years ago will be reviewed to raise the quality of education,

President Jerry Rawlings said in a sessional address to Parliament today.

President Rawlings said although there has been significant advancement, "we hope through a dispassionate review, embracing all interested parties, to address the difficulties encountered along the way and together fashion out strategies to raise the quality of education."

He identified some of the successes as increased enrolment in school, citing primary school enrolment which has risen from 1.6 million in 1987/88 to 2.3 million in 1997/98.''

The President said ''the proportion of school-going age population in primary school also increased from 69.2 per cent to 76.5 per cent over the same period.''

He said 339 junior secondary schools have been established over the period in addition to the former middle schools which have been upgraded to a total of 5,599.

''Graduates from senior secondary schools have increased from 20,153 during the same period to 57,708 or 33.2 per cent up''.

He said two more polytechnics are to be built in the Upper East and Upper West regions this year bringing the number to eight.

University enrolment increased from 8,342 in 1987/88 to 25,280 in 1997/98 -- a 203 per cent jump while the number of universities have increased from three to five.

The President admitted that though there was a lot of improvement in the tertiary institutions, leading to the intake increases, ''we must admit that there is still a lot to be done as these institutions are able to admit only 40 per cent qualified applicants''.

President Rawlings said the FCUBE programme is on course and that all preliminary work were completed last year and bids were being evaluated for contracts to be awarded to provide teacher accommodation, new classrooms, KVIPs and the rehabilitation of existing classrooms.

A programme to strengthen and decentralise resource planning and allocation which began in 30 districts last year will be extended to 40 more districts.

''Work on improved syllabuses and revised basic textbooks is at an advanced stage and the orientation and in-service training of teachers to manage new programmes would continue.''

He said the Ministry of Education has been tasked to establish an educational trust fund this year into which companies and other stake- holders would contribute as other sources of funding education.

The President commended religious groups for their continuous support to government's efforts in increasing opportunities for tertiary education and their ability in maintaining standards.

He announced that the second phase of the Adult Literacy and Functional Skills project would begin this year with an expected 200,000 learners each year for the next five years.

Accra, Jan. 14, GNA - President Jerry John Rawlings today said a total of 1.32 billion dollars was spent on construction and re-construction of roads in the country between 1993 and September last year. ''We have maintained 18,244.80 kilometres of roads and reconstructed 1,209.10 kilometres''.

President Rawlings said this in his sessional address to Parliament today in which he outlined his government's achievements for the past years and projections for this year.

Among those present were Professor John Atta Mills, Vice President and his wife, Mr Justice I. K. Abban, Chief Justice, Nana Konadu Agyeman Rawlings, the first lady, members of the Council of State, Ministers of state, Service Commanders, Chiefs and leaders of the NPP, PNC, PCP, members of the diplomatic corps

For 1999, the president said major maintenance activities would be carried out. These include regravelling of 1,632 kilometres of roads, resealing 665 km, resurfacing 270 km, and rehabilitating 1,820 km.

With funds from the donor community, reconstruction work will commence on the 30 km Ahwia-Nkwanta-Kumasi road, 115 km Accra- Yamoransa road, 105 km Achimota-Anyinam road, 166 km Tema-Aflao and the 63 km Takoradi-Agona Junction roads.

''Also in 1999, we will work on securing funds to reconstruct the Kumasi-Kintampo road (180 km) and the Bamboi-Bole road (116 km),'' President Rawlings said amidst cheers from MPs whose constituency would benefit from them.

Some roads under construction are expected to be completed by the end of the year. These include Sankara inter-change and Accra Roads.

President Rawlings urged communities whose roads have been constructed to become watchdogs to defend these roads against the actions of "road vandals" who steal road signs, railings and other safety barriers.

''These acts take place under the eyes of the very communities which agitated for the construction of these roads. It is time that communities become watchdogs to defend their roads against the actions of road vandals''.

He said modern tolling system will be introduced this year to recover from road users a contribution towards the cost of some the newly rehabilitated roads.

These include Kumasi-Mampong-Ejura, Kumasi-Dormaa Ahenkro, Kintampo-Tamale and Tamale-Bolgatanga roads.

Tolling will also be introduced after rehabilitation and upgrading of the Tema-Akosombo, Yamoransa-Elubo, Yamoransa-Kumasi, Accra-Yamoransa, and the Accra-Kumasi roads, among others.

President Rawlings said the Ghana Railway Corporation will be converted into a limited liability company to pave the way for the concessionairing of its operations and the establishment of new business units with the private sector.

In the maritime sector, there will be dredging and the extension of Quay 2 to improve facilities at the port of Tema.

''A private operator will be selected in partnership with the Ports and Harbours Authority for container handling operations at the port''.