MILLS UNDER PRESSURE

The recent announcement of price hikes in petroleum products in the country has attracted a barrage of criticisms from a cross-section of the Ghanaian public, raising doubts over government’s commitment to address the deteriorating economic conditions of the ordinary citizenry.

Government through the National Petroleum Authority (NPA) announced between 25 to 30 per cent increase in the commodity on the first working day of the year.

It cited the constant rise in crude oil on the world market for the price hikes.
Prior to the new adjustments in petroleum products, the Minister of Finance and Economic Planning, Dr. Kwabena Duffuor, had pronounced the Mills government’s intentions to raise income taxes by 25 per cent in the 2011 budget statement.

But, it appears what some senior government officials consider as ‘stringent steps’ by the ruling NDC to rescue the economy, had been met with fierce resistance, with several civil society groups and economic watchers condemning the move.

To the President of the Association of Ghana Industries (AGI), the decision by government to raise taxes on goods and services and increase the price on fuel at a go could lead to the folding-up of several businesses in the country.

Speaking on Joy Fm in Accra, Nana Owusu Afari explained that adjustments of between 5 to 10 per cent would have been ‘much tolerable’ instead of the 25 to 30 per cent.

“In every country it is normal for taxes to be increased. But it is on the high in this particular case and if we do not take care a lot of companies could fold up and many investors would also be compelled to relocate elsewhere,” Mr. Owusu Afari contended.
That notwithstanding, when the paper hit the streets of Accra to seek the views of Ghanaians on the current state of affairs of the Mills administration, though there were mixed feelings, a lot of respondents rated the general performance of the president as not encouraging and blamed him for not offering decisive leadership.
Others also described the move by the president to use the Cabinet reshuffle as a ploy to divert the attention of the masses from the untold hardships already visited upon them following the increases in petroleum products.
“If President Mills believes he can use his Cabinet reshuffle to sway our minds from the fuel price hike then he should re-think; for we will not stop talking about this killer petrol increase. Wasn’t the same Mr. Evans Atta Mills who promised in 2008 to reduce fuel drastically when given power, and what happened to him this time around?, an irate trader burst out.
In the Makola Market in Accra, traders described the recent hikes as “very painful” and wondered whether that was the ‘Better Ghana’ the NDC promised during the electioneering campaign in 2008.
The disposition of the aggrieved traders raises suspicion of whether the NDC government could make any significant impact if elections were to be held today.
“Some of us are very much convinced that this government cannot do the job. From the way things are going it appears government has lost touch with the people; and that explains why the NDC government is putting us through this economic hardships.
… We have indeed regretted electing this government into office; after two years the ordinary Ghanaian is yet to see any meaningful improvement in his/her life,” Nana Ansah, who claimed to be the spokesperson for shoe sellers association, told the paper.
On the other hand, the opposition New Patriotic Party (NPP) through its General Secretary, Kwadwo Owusu-Afriyie, rejected the increases and described it as “wicked and “a liquidation of ideas.”
In his opinion, the move by government is clear a height of disrespect and insincerity on the part of the Mills administration considering the electoral promises it made in 2008.
According to him, an NPP government would have avoided the increases, arguing that the current price in the world market does not justify such “painful hikes.”
“We have had enough of the mismanagement by this government. The NPP would have acted differently if we were in office. It is a shame that in this modern age Ghanaians would be subjected to these hardships all because of someone’s incompetence (referring to President Mills),” Mr. Kwadwo Afriyie contended.
What is more, editorials of newspapers including The Daily Graphic, Ghanaian Times, Today, Daily Guide and The Ghanaian Chronicle on Wednesday expressed concerns about the current trend of event.
With utility tariffs expected to go up, both the Daily Graphic and the Ghanaian Times called on government to immediately intervene to help address the poor service delivery, especially the kind provided by the Electricity Company of Ghana (ECG).
While Today’s editorial of yesterday urged President Mills to “buck up” and remove bottlenecks facing the economy to make life bearable for the citizenry, the Daily Guide described the increases as ‘celebrating nuisance.’
It accused the NDC of double standards and wondered whether this was the action year the President promised on the eve of the Christmas Yuletide.