Tariff increase to collapse local industries-Industrialist

Accra, June 18, GNA- Dr Osborn Fiifi Ofori, a Malaysian-based Ghanaian industrialist, has stated that the recent increment in electricity tariff could plunge local manufacturing industries into major financial crisis. "I want to believe that it is a mistake and if it is actually so, the Public Utilities Regulatory Commission (PURC) need to rectify it immediately to avoid dismissal of workers that most of the industries are planning to do at the end of this month."

Dr Osborn who made this known in a statement copied to the Ghana News Agency (GNA) explained that the last tariff increment in 2007, industries were moved to GHC.09 pesewas while mining companies paid GH0.16. He said but this time round both industry and mining companies were pegged at GH0.27 pesewas, thus increasing industrial tariffs by 198 per cent.

Dr Osborn said most of the local manufacturing companies would be compelled to send a lot of their working hands home if the mistake was not corrected within the month.

"It is becoming crystal clear that most manufacturing companies are overstretched with the high tariffs, which might compel them to reduce their workforce, thereby increasing the unemployment rate in the country." On water tariffs, the Industrialist also lamented that Private institutions ware paying 60 per cent increase while Government institutions are paying 40 per cent, when in the past both entities paid the same rates. "We plead with PURC or government for that matter to either reduce our water tariffs to the level of government institutions or increase theirs to our level for us to have the same economic opportunities in the country." 18 June 10