The Minority Caucus in Parliament has called on President Nana Addo Dankwa Akufo-Addo to instruct the Minister for Trade and Industry, K.T. Hammond, to halt the proposed legislative instrument (L.I.) aimed at regulating the price of cement in Ghana.
Honourable Ibrahim Murtala Mohammed, a member of the Trade and Industry Committee of Parliament and the Member of Parliament for Tamale Central Constituency, in a compelling argument, vehemently criticized the Trade and Industry Minister over the proposed legislation
He emphasized the need for presidential intervention to prevent the L.I. from being laid before Parliament, arguing that it fundamentally opposes the New Patriotic Party’s traditional support for market-driven price determination based on supply and demand.
“The NPP, as a centre-right political party, has always advocated for property ownership and market-driven policies. This proposed regulation contradicts these principles by attempting to control cement prices”.
Ibrahim Murtala Mohammed, a member of the Trade and Industry Committee of Parliament and Member of Parliament for Tamale Central
The Tamale Central lawmaker stressed the importance of allowing market forces to dictate prices, which has been a core belief of the governing New Patriotic Party.
Honourable Murtala Mohammed highlighted specific concerns regarding the proposed L.I., particularly its intent to streamline and regulate cement prices for wholesale and retail distribution across the country.
“What is most outrageous about the proposed L.I. is the notion of streamlining prices. How do you streamline that? Someone who buys cement from GHACEM and transports it to Tamale, and another person who buys cement from DZATA and transports it to Walewale, Bolga, and Paga – their prices can never be the same”.
Ibrahim Murtala Mohammed, a member of the Trade and Industry Committee of Parliament and Member of Parliament for Tamale Central
Alternative Approach to Address Cement High Cost
Furthermore, the member of the Trade and Industry Committee of Parliament suggested an alternative approach to addressing the high cost of cement in the country.
He advocated for the government to slash taxes and reduce import duties on raw materials for cement production as a means to compel manufacturers to lower prices.
He argued that the reason Ghanaians are paying such exorbitant prices for cement is due to the government’s wicked policy interventions, particularly the taxes charged on imported raw materials.
According to Honorable Murtala Mohammed, reducing these taxes and import duties would eliminate any justification for maintaining high prices.
“That is what the government and the Minister have control over. We are not saying we are happy with the current cement prices. What we are saying is that the exorbitant prices are a direct result of the government’s policy interventions”.
Ibrahim Murtala Mohammed, a member of the Trade and Industry Committee of Parliament and Member of Parliament for Tamale Central Constituency
The Minority’s opposition to the proposed L.I. comes at a time when the Ghanaian construction industry is grappling with high cement prices, which have significantly impacted building projects and housing affordability.
In an earlier criticism, the Director of Cuts International (West Africa), Appiah Kusi Adomako vehemently criticized Honorable K.T Hammond for what he terms the minister’s “firefighting approach”.
He argued that such regulatory measures could deter potential investors from entering the Ghanaian market.
In fervent call to action, the Director for Cuts International (West Africa), Appiah Kusi Adomako called for the government to adopt a competition law approach rather than price regulation.
He stressed the need to address major issues contributing to the alarming increase in cement prices, including the fluctuation of the exchange rate, high inflation, and rising fuel prices.
Mr Adomako emphasized that by stabilizing these factors, the government can create a more conducive environment for both consumers and investors, ensuring long-term economic stability and growth.
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