I’m happy that efforts are being made to regulate cement prices – Martin Kpebu

Private legal practitioner Martin Kpebu says he favours any move to regulate the prices of cement in Ghana.

He however said the Trade Ministry should use the right approach including extensive consultation toward making prices cheaper.

He has asked the Minister of Trade and Industry KT Hammond and the cement producers to sit and address their concerns on the Legislative Instrument (L.I) to regulate cement prices (LI).

“When two elephants fight it is the ground that suffers. They should get a mediator to be able to sit them down, they should talk to Austin Gammey, Nana SKB Asante and others so that they can talk,” Kpebu said on the Key Points on TV3 on Saturday, July 6.

He added “Ghana, we are not well organized so we have manufacturers and producers fleecing us. I am happy that efforts are being made to regulate the prices of cement, business people are motivated by profit so if you loose guard they will fleece you but the procedure is very important.”

Meanwhile, Trade Minister KT Hammond has dismissed claims by the cement producers that they were not consulted on the legislative Instrument (LI) to regulate cement prices.

He described the claim as a palpable falsehood.

Speaking in an interview with TV3’s Beatrice Adu, KT Hammond said that the Executive Secretary of the  Cement Manufacturers Association of Ghana (CMAG) Rev. Dr. George Dawson-Ahmoah  “actually gave me the draft, it is the handiwork.”

He added “It is palpable falsehood that I hadn’t consulted, he consistently has been at the forefront of all the attempts.”

Rev. Dr. George Dawson-Ahmoah, while indicating that they were not consulted also said that unfavorable economic conditions in Ghana are causing them to increase prices of cement.

L.I. to regulate cement prices laid

“Why is the Minister avoiding or just running away from this discussion? Previously, our position has been that these prices of cement, the increase of prices of  cement, it is not done in a vacuum. It is not done just because we wake up in the morning and do it.

“It is as a result of a negative trend in the economy, which is warranting such increases, and that is the issue. And like I said, what is happening now with cement prices is just because of the rapid and consistent depreciation of the cedi against the foreign currencies.

“We don’t know anything about it. And with my common knowledge in legislative instruments, don’t you involve stakeholders before it gets to Parliament? Don’t you involve stakeholders in the process?” he quizzed.

“No cement manufacturer is happy with increasing prices. We do that because of an unfavorable economic situation,” he said on the Key Points on TV3 on Saturday, June 29.

Rev. Dr. George Dawson-Ahmoah further said that the rapid depreciation of the local currency has been impacting their operations, forcing them to raise the prices of cement.

Clinker which is a major component of cement production, is imported hence the depreciation of the Cedi’s impact on their business, he said.

“It has a huge impact on the pricing of cement. There are other factors but currently this is a major concern now and that is what has motivated the Minister to rush to parliament to regulate prices. Why didn’t he do it last year?” He asked.

Rev. Dr. George Dawson-Ahmoah had told Trade Minister K T Hammond that the increasing prices of cement can be attributed to the fall of the Cedi against the Dollar.

Rev Dawson-Ahmoah said they do not need a Legislative Instrument to regulate cement prices.

There must be some sanity in the system – KT Hammond justifies L.I. to regulate cement prices

 

But KT Hammond told journalists in Parliament on Wednesday, June 26 that he had engaged them.

“I asked them to ensure that something was done about it. In my absence, I was told that the minister wasn’t going to be able to do anything.

“They would not listen, they wouldn’t do it, and they would go the way they want. “Encouraging them to do it is a moral persuasion. If moral persuasion fails, there is a system in the country, there’s a constitution, and we are preyed by a rule of law. If we don’t accept the moral principle, at least some sort of economic principle, the good people of Ghana must benefit. I don’t think it is fair for the way they are pricing and the way, haphazardly each one of them decides and dictates how much a bag of cement should be sold for.

Cement prices: It behooves on us in authority to ensure Ghanaians aren’t fleeced – Trade Minister

“This is quite apart from the quality that they are producing. Some of the companies are producing substandard products. We have had to deal with this matter,” he said.

 

 

 

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