Speaking on JoyNews’ PM Express, Kobina Tahir Hammond said that although the manufacturers were not consulted during the drafting of the L.I., he had consistently had conversations with them on the need to be transparent about pricing.
He told the host, Evans Mensah, that he had pushed for the cement manufacturers to self-regulate their pricing to ensure prices were not shooting over the roof, however, his call was not heeded.
“I didn’t have to consult them in drafting the L.I., I warned them consistently that they couldn’t do what they’re doing [raising prices]. I consulted with them several times in my office, I told them what I wanted. I wanted them to be transparent, there to a reduction, I wanted us to understand the basis and the publication.”
“Get this information and let me know…I was told they said I couldn’t do it. On a simple matter of price publication and self-regularisation I have been going on and on…it gets to a point when something has to be done, and what has to be done for me within the law is to get to parliament,” the Trade Minister said.
KT Hammond insists that the proposed L.I. will push cement manufacturers to be transparent with their production costs and other needed information to help create a price ceiling beneficial to them and the consumers.
“The reality is very clear, the cedi hasn’t been performing greatly of late, we accept that there is a difficulty. But, let’s understand the pricing mechanism just as the petroleum sector is regulated by the NPA, so everyone knows the basis.”
“The price ceiling would be arrived at after the consideration of all factors involved. they would have to be transparent, sit down with the committee and explain to them how they would lose among others,” he added.
He believes that the L.I. is necessary to prevent exploitation of the public by cement manufacturers. As such, the committee set up would discuss all the nitty gritty including the cost of production, profit margin, cedi depreciation and others to arrive at a price point.
This comes after the Chamber of Cement Manufacturers presented a petition to Parliament registering their outright rejection of the proposed L.I.
COCMAG called on the house to decline the proposal explaining that it was presented without any prior consultation with the key stakeholders in the cement industry, including the manufacturers.
Presenting the proposal without the needed consultations undermines the principles of fairness, transparency, and inclusive decision-making, they indicated.
“We firmly believe that the issues leading to the escalation of cement prices are complex and multifaceted, primarily driven by the rapid and consistent depreciation of the Ghanaian cedi against the US dollar.
“Addressing these challenges requires a comprehensive understanding and collaborative effort from all relevant parties, including the Ministry of Trade and Industry, cement manufacturers, and other stakeholders.”
Source: myjoyonline
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