GRi In Parliament 04-03-99

Budget is neutral - Addo-Kufuor

Parliament grants exemptions for projects

Accra (Greater Accra), 4 March - Dr Kwame Addo-

Kufuor, NPP-Manhyia, yesterday described this year's financial statement as "neutral".

Dr Addo-Kufuor, who was contributing to the debate in Parliament on the budget, explained that the budget did not place new burdens on the people, nor did it relieve them of their "severe and numerous financial and social problems".

He, however, admitted that the budget has a few novel and positive attributes, for which the Ministry of Finance should be commended.

For example, the new budget presentation and classification introduced under the Medium-Term Expenditure Framework (MTEF) are positive developments, he said.

"The three-year expenditure programme, starting from 1999, and covering the period 1999-2001 in particular, presents a useful mechanism for reviewing and adjusting on-going programmes and their future development."

Dr Addo-Kufuor stated that his only misgiving about these developments is the abolition of the traditional split between recurrent and development expenditures.

Touching on the health sector, Dr Addo-Kufuor, who is the Minority spokesman on health, lauded the government for providing ultra-sound machines to all polyclinics and eight district hospitals.

The minority spokesman on health said the new collaboration between the Ministry of Health (MOH) and mission hospitals is also a "very welcome development".

But he queried why the budget failed to make any provision for the large number of mental patients roaming the streets throughout the country.

"These unfortunate citizens are entitled to free medical care, and their upkeep should be the responsibility of the state."

He attributed the exodus of young health professionals to neighbouring countries to "miserable conditions of service", adding that last year for example, a total of 116 doctors left the MOH.

Dr Addo-Kufuor pointed out that a "hard-pressed, third world country like Ghana" cannot for long sustain "such intellectual and professional haemorrhage without coming to grief."

He said since the budget was silent on this problem, government should take bold and effective measures to stop the "medical brain drain".

Dr Addo-Kufuor took the MOH to task and said the ministry appears to show great zeal in mobilising resources to pay for construction of over-inflated health structures and purchases of often unsuitable medical equipment, while professionals, who can man these institutions flee the country because of neglect.

He cautioned that there is more to the development of the health sector than "signing of lucrative contracts for construction and purchases of equipment and drugs."

On the cash-and-carry system, the minority spokesman on health stressed the need to review the scheme to cater for the interests of the poor and vulnerable in society.

Winding up his contribution, Dr Addo-Kufuor said unless the basic concerns of Ghanaians are addressed by annual budget statements, "their relevance to the ordinary citizens of this country will be in doubt."

Accra (Greater Accra), 4 March - Parliament today approved Tax Exemptions totalling 12.352 billion cedis on equipment and machinery for the construction of the Phase Four of the Kumasi-Yeji-Dzato-Zongo road.

The House also approved 1,864 billion cedis tax exemptions on equipment and materials for the construction of the Sekondi Fishing Harbour.

Commodore Steve Obimpeh, chairman of the Finance Committee, recommended that the exemptions be granted for speedy execution of the projects.

However, the equipment and machinery are liable for taxation and duties if the contractors transfer them on the completion of the projects.

He said the committee observed that under the loan agreement for the Kumasi project, if the contractors pay taxes and other duties, the government is obliged to reimburse them, hence the need to exempt them.

Interbeton BV is executing the Kumasi-Yeji road project being co-financed with a loan of 18 million dollars from ABN-AMRO Bank of the Netherlands.

The Sekondi project, financed with a Japanese grant, is being undertaken by Messrs TOA. It consists of dredging, provision of a landing wharf, a lay-in wharf and an access road, installation of ice making plant and reclamation.

Commodore Obimpeh said under the terms of the agreement in the exchange of notes with Japan, the government has agreed to take measures to exempt the project from taxes and duties.

''The committee has satisfied itself that the exemption is based purely on socio-economic considerations and will enhance the operations of the fisher folks in the area as well as provide job opportunities''.

Seconding the motion, Mr Dominic Azumah, Chairman of the Committee on Roads and Transport, reiterated the fact that the exemptions ''would facilitate quick completion of the projects''.

He called on the Customs Excise and Preventive Service (CEPS) to bevigilant in monitoring the machinery to ensure that "they are not transferred but used for the purpose for which they were brought".

Papa Owusu-Ankomah, NPP-Sekondi, supported the motion, saying that it will create jobs for people in the area.

He appealed to those concerned to ensure that people in the area aregiven the first chance for employment.

Mr Emmanuel Baah-Danquah, NDC-Asutifi North, called on CEPS to monitor the machinery to ensure that the concession is not abused because there had been "abuse by contractors in the past".

Mr Akwasi Osei-Adjei, NPP-Ejisu Juaben, while supporting the motion, argued that the contractors should be made to pay the taxes first and be given the exemptions on completion of the job.

Mr David Y. Mensah, NDC-Atebubu North, noted that the Kumasi project is of utmost importance to the people in his constituency and commended the government for ensuring that it takes off.

Mr Kosi Kedem, NDC-Hohoe, South, suggested that Parliament should come out with clear guidelines for tax and duty exemptions.

''Parliament has to provide guidelines as to who, why and how these exemptions are to be granted''.