GEA reiterate call for review of recent tariff increase

Accra, June 29, GNA - Members of the Ghana Employers Association (GEA) on Tuesday suggested to the Public Utilities Regulatory Commission (PURC) to mitigate the recent tariff increases by adopting a two step increase for 2010 and 2011.

They proposed a 49 per cent increase effective July 1, 2010 and 20 per cent increase in January 2011, instead of the 89 per cent average increase in electricity rates and 36 per cent for water the PURC earlier announced 'at a single swoop'.

Mr Charles Coffie, President of GEA gave the suggestion at a Chief Executives Breakfast seminar held by GEA in Accra. It was under the topic, "Impact of Counterfeit Goods and Illicit Trade on Investment Promotion in Ghana."

"Our issue is the quantum of change and insensitive manner of implementation. This tariff adjustment culminates in increases of between 131 per cent for the lower power-consuming entities to as much as 200 per cent in the high power consuming class," he said. Mr Coffie, who is also the Chief Executive Officer of Unilever, Ghana Limited, said the new tariff translated between 170 and 200 per cent average increases for the steel industry, textiles and garments, pharmaceutical and household manufacturing industries in a way that adversely affected the competitiveness of the small scale enterprises and the business entities that constituted more than 80 per cent of GEA membership.

Speaking on counterfeiting and illicit trade, he said "we would not enhance Ghana's reputation as the next frontier investment destination if our enforcement and regulatory bodies like Food and Drugs Board and Customs Excise and Preventive Service are ill-equipped to check country of origin certificates and enable unscrupulous importers to exploit the Economic Community of West African States duty rates and other anomalies". "We certainly would not enhance Ghana's reputation as the next frontier investment destination if we allow counterfeiting to become rampant, thus earning for Ghana a reputation as a haven for people who wish to engage in economic crimes, shattering any hard-won positive reputation we may have built over time for the country," he added.

Mr Coffie appealed to Mrs Betty Mould-Iddrisu, Minister of Justice and Attorney-General, to achieve two objectives that bordered on intellectual property rights and counterfeiting of products.

"GEA as convener of Coalition Against Illicit Trade and Counterfeit Goods would appeal to the Minister of Justice to help achieve two very specific objectives. They are.Intellectual Property Rights reform leading to speedy resolution of disputes on intellectual property rights and heightened intellectual property protection. A strong legal framework and effective punishment to serve as a real deterrent is needed," he said. "Counterfeiting of any product that presents a health or safety hazard to consumers could be treated as a criminal offence with possible mandatory prison term," he added.