HON STEPHEN ASAMOAH BOATENG, MP, MINISTER OF INFORMATION & NATIONAL ORIENTATION
AT THE MEET-THE PRESS AT THE MINISTRY OF INFORMATION CONFERENCE HALL ON TUESDAY, 3RD JUNE 2008
Hon Deputy Minister,
Government Spokespersons
The Chief Director MINO, Ag Director of ISD
Ladies and Gentlemen of the media,
About two weeks ago, the President, HE John Agyekum Kufuor, announced a series of measures aimed at cushioning us in the face of high crude oil price and global food price hikes on Ghanaians. I am meeting you this afternoon to engage you in assessing the situation on the ground and how we are coping.
Firstly, let us all thank our Parliamentarians for the urgency with which they conducted their business to amend the relevant acts of Parliament for the implementation of the President’s measures. We should also thank the NPA for acting quickly in announcing the new prices on Gas oil, kerosene and premix oil. We thank our garage owners and transport operators and owners for their promptness in passing on the benefits to drivers and passengers. Indeed, government appreciates the collective responsibility that we have shown as Ghanaians during this unusually difficult period.
This show of togetherness is more remarkable when in other parts of the world we see and hear of protests, strikes and, in some, cases rioting. In Europe, fuel protests triggered by rising oil prices have spread to more countries. For example, French, Spanish, Italian, Portuguese and Belgian fishermen are on strike, asking their governments to take action on petroleum taxes. Dutch, UK and Bulgarian lorry drivers have held similar protests.
Closer to us in Cameroon, the high oil prices have witnessed agitations and protests from lorry drivers.
Government is, therefore, thankful to all Ghanaians for the efforts we are all making to overcome this difficult period.
Here, I wish to give some examples of the reduced fares in transport costs:
TRANSPORT FARES BEFORE AND AFTER GOVERNMENT’S MITIGATION MEASURES
2nd June, 2008
Before (Current)
Gp Gp
Circle – Pig Farm 35 30
Circle – New Town 30 25
Airport – Circle 45 40
Circle – Botwe 65 60
Hatzo – Circle 65 60
Korle Bu – Circle 40 35
Circle – Chorkor 45 40
Kaneshie – Circle 30 25
Odorkoo – Circle 40 35
Dansoman – Circle 50 45
Circle – Lapaz 40 35
Kasoa – Circle 75 70
Adenta – Circle 60 55
GH¢ GH¢
Kade – Circle 3 2.8p
Asamankese – Circle 2 1.9p
Circle – Koforidua 2.6p 2.5p
207 Bus, Accra – Kumasi 5 4.7p
According to the Ghana Road Transport Coordinating Council(GRTCC), all their Regional branches are cooperating in the implementation of the new directives. As regards the “non-compliance” of the new rates by taxi drivers, the Secretary to the GRTCC has explained that taxi operators have already reduced their fares even before the directives were announced. He explained that taxi drivers were to charge GHp50 for upwards to the first 2.5km but that, in the face of stiff competition from trotro drivers and Metro Mass Transit buses, they had voluntarily reduced them to GHp45.
It is remarkable that the reduction in fares has occurred with very little hitches and the arguments that sometimes occur among passengers and drivers/mates have been absent. This is a clear signal that Ghanaians do appreciate the magnitude of the problems before us as a country and have rallied together.
Another significant input is the total removal of taxes on premix fuel. Extra efforts are being put in place by the Ministry for Fisheries and the premix committee to ensure that our fishermen get enough of the fuel in good time. Again checks are being conducted in our coastal area to check invasion of foreign vessels that make live difficult for our fishermen. These measures will have a significant impact on farmers and fishermen.
This is commendable and government salutes all Ghanaians in this regard and hope for continued cooperation even as we wade through these difficult times together and work towards a brighter tomorrow.
Government is aware, though, that there are few pockets of people who are yet to pass on the benefits to their compatriots. Government wishes to appeal to all such individuals to comply with the new measures.
On the issue of removal of duties on imported food items, a lot of discussions have taken place with importers. I can assure the nation that with the cooperation so far shown on all sides, we shall see reductions in prices as soon as the parliamentary processes are complete and HE the President has given assent to the amendment of the relevant legislation. The concern in certain circles regarding old and new stock of the affected imported food items have all been addressed in the said discussions. Therefore, the reductions in the food items will be immediate in our markets and shops.
Ladies and Gentlemen,
Government wishes to reiterate it's commitment to our local food producers and will take all appropriate measures to ensure we can feed ourselves and also earn substantial revenue from our food exports. In his address HE The President made mention of certain measures directed to local farmers. Some of the details are:
GC 11m to go towards providing subsidy on fertilizers to all farmers
Local farmers cultivating the New Rice for Africa are given seeds free of charge which costs 50GHp per kilo. A hectare requires 62.5kg.
Small-scale rice mills are given to local rice grower as well as GH 6 of agro-chemicals per acre to every farmer.
40% subsidy on fertilizers to local rice farmers made of cost of transportation and a coupon system.
Providing rice nucleus farmers with improved seedlings and good irrigation to ensure better output as is seen in the inland.
As we speak government has brought into the country 400 new tractors. The cost of each is GH 24,000 with government absorbing GH 8,000 as subsidy and the remaining GH 16,000 is repaid in flexible terms with 50% down payment with the remainder paid over a 3-year period with no interest. In addition to the 400 tractors already here, government has procured additional 830 tractors of which 500 are on the high seas.
The irony of the rising food prices on the world market is that we can also take advantage to produce more for export as the world demand for natural food increases and as consumers shift from genetically modified foods. For example, at the February 2008 Food Fair for Marketing Fresh Produce held in Berlin, Germany, Ghanaian local producers received orders worth US$30million.
This is a listening and caring government that takes action for our welfare. As HE the President said in his nationwide broadcast, this government has been very proactive to take pragmatic and far-sighted decisions that have sustained us to today. We are thankful to God for showing us the way in all our deliberations and decisions, and for the understanding amongst all Ghanaians. I wish also to restate HE’s point in order to reiterate the listening and caring nature of this government that there is a government task force currently studying the world situation on a continual basis and listening to all Ghanaians in order to recommend such actions as would be necessary from time to time.
It is also, important to note that whilst the measures taken by government would involve slowing down on some of our development projects, the social welfare policies designed to protect and assist the vulnerable is receiving focused attention. HE The President has assured us that the School Feeding programme, Capitation Grant, the National Health Insurance Scheme, the Metro Mass Transport, the National Youth Employment Programme, the Micro-Finance and Small Loan Scheme(MASLOC) and the Free Maternity Care will receive adequate attention.
As I speak to you right now, the LEAP is being extended to wider group.
The second round of cash transfer to beneficiaries under the Livelihood Empowerment Against Poverty Programme (LEAP) takes place on the 3rd and 4th of June, 2008 in 21 districts throughout the ten regions of Ghana.
These are:
(1) Eastern Region: Asuogyaman, Kwahu West and Akuapim South;
(2) Greater Accra: Dangbe West, Tema and Ga West;
(3) Ashanti; Kumasi Metropolis and Obuasi;
(4) Volta; Ketu South;
(5) Central; Assin North, Agona and Cape Coast Municipality;
(6) Western; Nzema East;
(7) Brong Ahafo; Techiman;
(8) Nothern; Bole;
(9) Upper West; Lawra
(10) Upper East; Bawku Municipality
Even though the districts are twenty one as was the case during the first round of cash transfer in March this year, the number of beneficiaries has increased from 2,000 in March to 3,200 in June. The LEAP social grants range from GH¢8 to GH¢15 depending on the number of eligible persons in the household. The grants are paid every two months through Ghana Post pay points.
The beneficiaries have been categorized into three, namely:
(a) The aged, that is, those above 65years who have no subsistence support
(b) Orphan, Vulnerable Children (OVC’s) through their Care Givers, and
(c) Persons with Severe Disabilities who have no productive capacities.
Under the LEAP Programme, beneficiary households will be required to comply with certain conditions while they remain on the scheme. These conditions are:
- Enroll and retain all school going age children in the household in public basic schools
- All members of the household must be registered with NHIS and be able to produce a receipt in the absence of a card.
- New born babies (0 – 18 months) must be registered with the Birth and Deaths Registry, attend post natal clinics and complete the Expanded Programme on Immunization.
- Ensure that no child in the household is trafficked or engaged in any activities constituting the Worst Forms of Child Labour (WFCL).
The programme is meant to empower and help the extremely poor provide for their basic needs; poise them to access existing government interventions; provide a ‘spring board’ to help them to ‘leap’ out of the malaise of extreme poverty; and ultimately empower them to contribute to socio-economic development.
As we move along with the programme, all challenges and bottlenecks will be addressed to ensure that the target group is assisted to leap out of poverty in line with the vision of government.
The Micro-Finance and Small Loan Scheme(MASLOC) is now giving out monies to beneficiaries in all the regions. Those who receive their loans should endeavour to make proper use of the monies in order to expand their small businesses, make more money from the loans and employ others. To those who will be waiting for their turn, I will request you to be patient.
In other sectors, we have moved from cash-and-carry health delivery to a nationwide health insurance scheme. I am informed that we have over 50% coverage and patronage of the NHIS nationwide. We are hearing of some disturbing comments from the main opposition party that all young people under the age of 18 whom the NPP government has offered free health care would loose them.
As a result of the policy of free school fees, (capitation grant), enrolment in basic school shot up by 16% in 2006 and by a similar margin in 2007. Access to tertiary education has improved. There are over 42 tertiary institutions in the country today, of which 17 are accredited universities.
It is note worthy that the Trades Union Congress of Ghana have acknowledged that wages in Ghana have improved since 2000. Minimum wage has increased from 0.6 of a US dollar in January 2001 to a current figure 2.3 US dollars. Incomes have seen increases in real terms when one considers the inflation situation now from the 2001 figures.
I wish to acknowledge the difficulties in salary payment of some teachers in the country which you have told me in my interactions in your communities. This matter has been brought to the attention of the Controller and Accountant General who has set in motion procedures to correct any mistakes. Any teacher with anomalies in their pay slips should contact our Information Officers at your Metropolitan, Municipal and District Offices for onward transmission to my office. I will follow up to ensure any mistakes are corrected.
Ladies and Gentlemen,
The successes we have achieved so far, are due to the resilient nature of our economy that has seen the economy expand from a nominal size of US$3.9 billion when this government took over in 2001 to the current nominal size of over US$14 billion.
Ladies and Gentlemen of the press, l have given a snap view of some of government’s intervention policies to make live easier for all of us.
In this election year, we will hear a lot of noises made from different quarters about the state of the economy, just in an effort to win votes. l urge you all to be very discerning listeners and compare what we have been able to achieve in seven years to that of others who had a much longer time in office than us. I have also given you a preview of some of the areas a government from our stock will be pursuing. I leave the judgment for all to know those who take action to improve our lives as Ghanaians.
Thank you and may God Bless us all.