HIPC is temporary measure to stabilise economy

President John Agyekum Kufuor on Tuesday said HIPC is only a temporary measure to give the government some breathing space to stabilise the economy and launch policies for growth.

"Believe me, faced with all the facts and figures at hand and the constitutional requirement that we produce a budget within two months of coming into office, we had no alternative but to opt for the HIPC initiative," he said in his first May Day address to workers.

The May Day rally at the Independence Square in Accra was held against the background of increasing economic hardships, which found expression in the numerous placards borne by the workers in which the HIPC issue featured prominently.

This year's celebration was on the theme: "Consolidating Democracy in Ghana. The role of Trade Unions."


President Kufuor said, "taking that decision gave me no joy whatsoever and it was probably one of the most unpleasant tasks I have had to undertake. I have no doubts at all that the HIPC initiative would in fact benefit the economy as a whole and the worker in particular."


He explained that the initiative was imposed on the country by the statistical reality that nobody could dodge and this reality was occasioned by the long years of inefficient governance that was also heavily riddled with corruption.


"Therefore any suggestion of our being subservient to foreign demands is far from the truth. This government is patriotic and concerned about national pride and welfare of the people as any good government."


He expressed the government's determination to create a prosperous nation within which workers should get living and economic wages, investors expect decent returns on their investment while government gets adequate taxation to enable it provide quality services for the sustenance of society.

President Kufuor said the appeal for national debate on realistic wages and income policy should be conducted with the triple aim of higher productivity, incomes and realistic pricing in mind.


He expressed the hope that the debate would be enthusiastically embraced by organised labour and other sectors of society to find the causes of the low wages and the distortions that have bedevilled the provision of utilities and other public services to society.


Mr Alex Bonney, Chairman of the Executive Council of the TUC said the celebration is a symbol of the struggle against oppression and the fight for peace and progress for workers.


Sixteen workers who distinguished themselves during the year were honoured, each receiving a 14-inch colour television set, a certificate and a badge of honour.