Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), says we do not live in a pricing regime that allows anyone to force traders or company owners to sell their items at a regulated price.
Dr. Obeng responded to the Trade and Industry Minister’s plan to regulate cement pricing, claiming that we are in a liberal market and that the government cannot compel business by regulating prices.
He explained that the government has no investment in the businesses operated in the country and hence has no basis to determine the prices of the goods.
Speaking on Frontline on Rainbow Radio 87.5FM, he indicated that there is currently no direct policy to subsidise some of the taxes imposed on businesses for them to reflect in the prices of commodities, including cement.
“It will therefore be difficult for them to be compelled to sell at a regulated price. Traders consider several factors in determining their prices, so asking to regulate their prices will not work. When the cost of cement reduces, it is good, but we cannot compel them to engage in activities that will undermine the rights of business owners.
What the government should do is initiate measures to reduce the cost of doing business so it will have a long-term effect on businesses, which will then lead to a reduction in prices,” he argued.
Meanwhile, he has also maintained that if the intention of the government is to help deal with cartels who are engaging in monopolistic activities, then it should communicate that with Ghanaians.
“If there is any regulation meant to break a cartel or monopoly by some players in the market who engage in activities in pricing their goods at certain prices, the government should communicate that well to the people. In America, such activities are deemed criminal offences. If you want to break the activities of the cartel to stop the monopolistic activities, then communicate it well. You should also consult widely on the matter.”
But to stress my point, we are not in a price regime where you can regulate prices or compel anyone to sell at a certain price, according to the old host Kwabena Agyapong.
In a related development, the Speaker of Parliament Alban Bagbin advised Minister of Trade and Industry K.T. Hammond to withdraw the Legislative Instrument (L.I.), which seeks to regulate cement prices.
The Speaker advised the Minister to withdraw the L.I. after former Minority Leader Haruna Iddrisu raised concerns about it.
He argued that the Standards Authority is mandated to regulate standards in the country and not the prices of goods or commodities.
“The Ghana Standard Authority Act 2022, Act 10 (78), section 80 uses the word sale, and advertising, this is pricing. Do they have a mandate to regulate based on the 80? That is constitutional. The Ghana Standards Authority is an institution to regulate standards not pricing. Mr Speaker, Ghana cannot go this low.”
The Speaker after listening to arguments from both sides of the House advised the Minister to withdraw.
“Honourable members the danger is that, by the standards set by Article 11 (7). This House may not be able to measure up to that two-thirds majority to annul an instrument that the House itself is convinced that has no legal basis. That is the challenge and danger.
“And so, I will advise, I’m not directing, that the sponsors of the instrument should take a second look at it. And if possible, withdraw and capture it in the appropriate language. To come within the statutory limits that we have, it’s just advice, it’s not a directive.”
By: Rainbowradioonline.com/Ghana
