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TUC unhappy with HIPC

Sat, 17 Mar 2001 Source: By Charles Benoni Okine

THE Trades Union Congress (TUC) yesterday registered its disappointment at the decision of the government to opt for the Heavily Indebted Poor Countries (HIPC) Initiative without an exhaustive national debate on the issue by various sections of society.

“We asked for a public debate as the basis of a government decision on HIPC but to our utter surprise, government has opted to join the HIPC without an obvious conclusion of the debate” adding, “we express our disappointment at this”.

The Secretary-General of the congress, Mr Kwasi Adu-Amankwa, said this when he raised a number of concerns about certain aspects of the budget at a news conference in Accra. He added, “We caution government on the importance of a full-scale consultation as the basis of deciding critical national issues”.

He said the government must understand that popular support for its policies cannot be taken for granted and that it must work to secure such support.

Mr Adu-Amankwa said “if the government’s concern for positive change is to materialise then decision-making on important policies cannot simply be business as usual”.

He recalled the President’s statement in his Sessional Address to Parliament to the effect that all decisions will be taken in the interest of Ghanaians, and expressed the hope that the decision to join the initiative will be in the interest of the people of Ghana.

Mr Adu-Amankwa urged the government not to hesitate to opt out of HIPC in case it is found not to be what the government expects.

The TUC Secretary-General also expressed concern about the proposed National Reconstruction Levy, saying, “we are not sure about the impact such levies will have on investments”.

He said the union is aware of the economic risks facing the private sector in terms of high interest rates, inflation, and the depreciating cedi, and asked government to subject the issue to discussion among social partners to arrive at a consensus before its implementation.

Mr Adu-Amankwa said the reduction in corporate tax and the introduction of the national reconstruction levies seem inconsistent and suggested that instead, government should introduce medium and long-term national reconstruction bonds. He appealed to Ghanaians, both home and abroad as well as corporate bodies, to invest in such bonds.

On incomes and tax relief, he said the congress has identified what he described as unfairness in the review.

Mr Adu-Amankwa mentioned, for instance, that while the minimum annual taxable income has been increased by 33.3 per cent from ?900,000 to ?1.2 million, the income that attracts the topmost marginal rate has been increased by 175 per cent from ?17.5 million to ?48 million.

He said as much as the union is aware of the urgent need for the mobilisation of revenue for government, there is also the need for all not to lose sight of the teeming numbers of the working poor in Ghana.

The Secretary-General also requested the government to reconvene a meeting with the National Tripartite Committee to enable social partners to discuss the national minimum wage.

Mr Adu-Amankwa said this has become necessary in view of the effect the heavy increases in the prices of petroleum products and the imminent increases in water and electricity would have on the people.

“We urge the government to adjust public sector salaries and wages as well as the national minimum wage to serve as a morale booster to workers.

On the Health Insurance Scheme proposed by the government to replace the Cash and Carry System, Mr Adu-Amankwa called for a review of the pilot scheme being undertaken at Nkoranza and other places before a more comprehensive national scheme is established.

According to him, if the scheme is poorly formulated in a haste and it fails, it will be extremely difficult to start a better one, since insurance thrives on confidence.

Mr Adu-Amankwa, therefore, called for budget provision, however modest, to be considered for this essential review.

On his general comments on the 2001 budget statement, he asked government to do all it can to ensure that the targets set are sustainable, achievable and realistic.

Source: By Charles Benoni Okine