The President of the Ghana Union of Traders (GUTA) has asked the Trade and Industry Minister to clearly communicate his intention over the L.I. Legislative Instrument (L.I.), which seeks to regulate cement prices.
Dr. Joseph Obeng posited that it will be prudent for the Minister to engage stakeholders and explain to them if the bill is being introduced to regulate prices or stop the activities of a cartel or cabal that are increasing the prices of commodities anyhow.
He emphasised 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.”
He stated that 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.
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.
By: Rainbowradioonline.com/Ghana
