GRi In Parliament 25-03-99

Agricultural growth rate to reach six per cent - Owusu-Acheampong

Parliament approves roads and transport vote

Accra (Greater Accra) 25 March 

The Ministry of Food and Agriculture has prepared an accelerated agricultural growth and development strategy to help increase the sector's growth rate to about six per cent.

Mr J.H. Owusu-Acheampong, the sector minister who announced this in Parliament on Wednesday, said the strategy is in recognition of the critical role the agricultural sector has to play in bringing overall economic growth and development to the country as envisaged under Vision 2020. The current agricultural growth rate is between two and three per cent.

Mr Owusu-Acheampong was moving a motion, for the approval of 133.694 billion cedis for the operations of the ministry for the 1999 financial year. He said five major areas have been identified and need to be addressed through policy and institutional reforms and the development of investments - to achieve the desired growth rate.

The Minister mentioned these as the promotion of selected commodities through improved access to markets, facilitating and increasing access to agricultural financial service, and the provision of rural infrastructure and utilities.

The rest are: facilitating access to technology for sustainable natural resource management and enhancing human and institutional capacity.

Mr Owusu-Acheampong told the House that an agricultural service sector investment programme, which is an implementation document for the accelerated growth strategy, is currently being prepared by the Ministry and other stakeholders. He said the Ministry will continue to assist the private sector this year, through the provision of improved planting materials, breeding stock and technology dissemination.

The Minister said a sustainable agricultural growth and development can be attained through sound policies and the provision of efficient technical and extension services that will ensure food security, increase export earnings through export diversification, the creation of employment and the supply of raw materials to other sectors of the economy. "Mr Speaker, it is well-known that the development of the economy depends on the agricultural sector, and any attempt to deprive the sector of the requisite resources at any time, would adversely affect the growth of the economy.

"In view of this, and the fact that the country's agriculture is weather-dependent, I wish to appeal that the Ministry of Finance release on time, funds requested by the Ministry of Food and Agriculture for effective implementation of its activities", Mr Owusu-Acheampong said.

In its report, the Select Committee on Food, Agriculture and Cocoa Affairs, welcomed donor support to the Ministry but expressed concern about the inability of the government to meet its counterpart funding obligation.

The report said the government's default has frustrated many agricultural development projects.

It cited the Integrated Development of Artisanal Fisheries Project as an example, and said the project has had to be extended to the end of this month. The committee told the House that the government is expected to provide 585.578 million cedis for the project, but only 100 million cedis of the amount has been allocated in the current budget.

It warned that if the money is not provided, the project would be terminated, and urged the Ministry of Finance "to consider the big financial package involved and release on time, the counterpart marching funds".

Members expressed concern that a ministry, from which so much is expected, is allocated "so little money for its operations".

Dr Richard Winfred Anane, NPP-Bantama, said agriculture is not being given the attention it deserves by way of funding, adding that of this year's allocation to the sector ministry, more than 60 per cent is donor-funding.

He noted that even though the Ministry has decentralised, the requisite personnel for the decentralised departments in the districts have not been provided. This is causing a lot of frustration in the sector.

Mr M.A, Seidu, Deputy Majority Leader said looking at the size of the Ministry's allocation, Ghanaians should not expect so much from the sector.

He called for the building of small-scale dams throughout the country to help enhance agricultural production, saying that about three-quarters of the country lie within the Savannah Zone, and a lot of water is needed for any meaningful agriculture.

Mr Hackman Owusu-Agyeman, NPP-New Juaben North, said the country needs to move from its present level of agricultural production to a level where the people can be sure of national food security.

He said the country over-achieves its annual revenue targets, yet funds are not released for the various sectors of the economy to implement their programmes effectively.

Mr Owusu-Agyeman, a ranking Minority Member, warned that agriculture should not be politicised, otherwise, "we will not get anywhere in our endeavours in the sector".

Mr D.Y. Mensah, NDC-Atebubu North, said government should mobilise and motivate the youth to go into agriculture to take the place of "our ageing farmers".

Mr Alex Agyei Akyeampong, NPP-Bekwai, regretted that the Ministry is so starved of funds and expertise that it cannot meet the agricultural expectations of the people.

As a result of the delay by the Ministry of Finance in releasing funds, activities of the agricultural sector are hampered, he said. "How do you blame the Ministry of Agriculture for lack of performance when the money with which to work is delayed or not released at all?" he asked. Mr Akyeampong urged the government to increase its support to the Cocoa Research Institute of Ghana (CRIG) to help revamp the cocoa industry.

Mr Ibrahim Adam, NDC-Choggu/Tishigu, expressed disappointment at what he described as "a low level of funding" for the agricultural sector, saying this is not going to impact positively on agricultural development in the country.

He said given the pivotal role agriculture is to play in the realisation of the objectives of Vision 2020, he expected that the Ministry's budgetary allocation would be substantial enough to enable it carry through its programmes with a large measure of success.

Mr Adam, himself a former Minister of Agriculture, said where farmers are encouraged to increase production, the "marketing of their produce becomes a problem".

He told the House that he has not been able to fully retire his loans from the Agricultural Development Bank, "because I have not found market for my stock of maize since 1997".

Mr Kwasi Akomea Kyeremateng, NPP-Afigya Sekyere East, urged the government to encourage the banks to put aside a percentage of their loan portfolios to support agriculture and at a low interest rate.

He called for the re-introduction of subsidies to cut down cost of production and ensure competitiveness of agricultural produce.

Winding up, the Minister said he felt encouraged by the tremendous support members have given to the ministry and hoped that with their co-operation, agriculture can be moved forward.

The House unanimously approved the estimates.

Accra (Greater Accra) 25 March 

Parliament has approved 603.468 billion cedis for the running of the Ministry of Roads and Transport this year.

This is made up of a domestic component of 302 billion cedis and an expected donor in-flow of 301.468 billion cedis.The ministry received the second highest amount allocated to any ministry - second to the Ministry of Education, which had 768.890 billion cedis.

The ministry's allocation will be distributed among the Departments of Urban Roads, Feeder Roads, Vehicle Licensing and Examination Division, Shipping and Navigation and the Ghana Highway Authority.

The rest are the Government Technical Training Centre, the Regional Maritime Academy and the National Road Safety Committee. The ministry has supervisory responsibility for 10 other non-subvented organisations.

Mr Steve Akorli, a deputy minister for Roads and Transport, told the House that the Road Fund instituted last year is expected to bring in about 219 billion cedis this year.

This fund is in the form of fuel levy, road, bridge and ferry tolls, road-worthiness tests and other road user fees.

To raise this amount, he said, a minimal increase of 25 cedis per litre of fuel is expected, but this adjustment will not necessarily lead to any increase in fuel prices.

Mr Dominic Azumah, chairman of the Roads and Transport Committee, said the committee found out that the provision of "matching funds falls woefully short of the required estimates" and urged the ministry of Finance to assist the ministry to make up for the difference.

Given the government's commitment to development and maintenance of roads as a pre-requisite for attracting increased private sector investment, it is necessary that the sector is adequately resourced, he said.

The Ghana Highway Authority intends to use 320.468 billion cedis out of its total allocation of 333.846 billion cedis for re-gravelling, resealing, resurfacing, rehabilitation and reconstruction of trunk roads linking various parts of the country.

The Department of Feeder Roads also plans to spend 105,636 billion cedis out of its total allocation of 108.247 billion cedis on routine road maintenance and bitumen surfacing on roads with daily high traffic.

The committee urged the ministry to help the Ghana Highway Authority and the Department of Feeder Roads to ensure equity among Ghana's 10 regions "in the light of competing claims on their diminishing resources".

The committee observed that the 611 million cedis allocated to VELD,which is expected to generate about 15 billion cedis this year, is grossly inadequate.

They felt that this amount would not facilitate the generation of maximum revenue for government, while ensuring safety on our roads.

In the ensuing debate, Mr Felix Owusu-Adjapong, ranking member on the minority side, urged the Ministry of Finance to ensure that the road fund is used for the purpose for which it was set up.

It should not be used as counterpart funding of donor projects, neither should it be part of the general budget allocation, he noted.

Mr M. A. Seidu, deputy majority leader, commended the policy of labour intensive feeder road construction, saying it does not only give employment to the local people but "cuts down on the cost of construction to about half". He urged the Ministry of Finance to pay contractors promptly.

The deputy majority leader decried the deplorable state of the Wa-Bamboi road, saying "it is unfortunate that Wa is the only regional capital that is not linked to other regions by a tarred road".

Mr Samba E. Zumakpeh, NDC-Nadowli South, urged the ministry to help the Shipping and Navigation Division with its basic needs, in order not to undermine its international obligations.

Mr Yaw Baning-Darko, NPP-Atiwa, reiterated the need to provide the Shipping and Navigation Division with its basic requirements in order for it to perform as expected on the Free Zones and Gateway Projects.

He said rail lines are very crucial to the success of the Inland Port concept, saying under the current deplorable conditions, the railway cannot live up to expectation.

Mr Mike Hammah, a deputy minister of Roads and Transport, explained that the Ghana Railway Corporation has not been allocated anything, because it does not subsist on the consolidated fund.

However, plans are far advanced to revive railway lines, particularly those in Accra/Tema and the Eastern and Central lines to cart containerised cargo to the Inland Port.