Unreliable utility supply collapsing ceramics industry, Minister

Accra (Greater Accra) 26 July '99

Unreliable water and electricity supply as well as marketing problems are some of the major constraints facing the Saltpond Ceramics Industries Limited, Dr John Frank Abu, Minister of Trade and Industry told Parliament on Friday.

To this end, he said the ministry would assist the company to improve upon its competitiveness by removing some of the constraints.

The ministry has also stressed the need for the company to be more aggressive in marketing its products not only for the Ghanaian market, but also for countries of the West African sub-region and beyond.

The company, having been sold by the government in 1990, is now under a new name, the Ghana Ceramics Industrial Manufacturing Company Limited.

The minister was responding to a question on whether he was aware that The company, which derives about 80 per cent of its raw material from local sources, was rapidly grinding to a halt, and if so what support the sector ministry planned to give to save the company from total collapse.

The question stood in the name of Mr Jacob Arthur, NDC-Mfantsiman West.

Dr Abu told the questioner that in the general context of helping to enhance the competitiveness of Ghanaian industries, the ministry had held discussions with officials of key utility services, drawing their attention to the needs of industries, including the ceramics company.

Asked about the intentions of the ministry to activate the programme for the relocation of artisans in the Kumasi metropolis to the Santasi site, Dr Abu told Mr Osei Kyei-Mensah-Bonsu, NPP-Tafo/Suame, that the proposed relocation does not fall directly under the purview of the ministry.

"I believe the Kumasi Metropolitan Assembly and the Kumasi Town and Country Planning Department are the main implementers of the relocation programme".

Dr Abu said available information on the issue indicated that the Santasi site was acquired for the relocation of the artisans but this was stalled by a court injunction on the site.

Mr Mensah-Bonsu said the prime cause of the court injunction was non-payment of compensation to the landowners and asked what the ministry was doing to ensure prompt payment.

Replying, Dr Abu said he could not answer for the ministry responsible for such payment but assured the questioner that his ministry would support all efforts to ensure a smooth take-off of the relocation programme.

In answer to a question as to when the Wenchi Tomato Factory would start production, Dr Abu said the company was divested in 1997 and taken over by a private company, Afrique Link Limited.

The company, he said, has since then been conducting feasibility studies towards starting production which could involve mangoes and pineapples, in addition to tomatoes.

He said information available to him indicated that the company plans to motivate out-growers to produce the raw materials and invest in modern machinery and equipment.

The minister told the House that he had invited the company for discussions to assess the progress and constraints and to "strategize our collaboration".

"Mr Speaker, I will be in a better position to indicate when the company will start production after that," he said.

GRi../