Calls for stakeholder engagement prior to the proposed legal instrument aimed at regulating cement pricing being presented before Parliament have been rejected by the Trade Minister on behalf of cement makers.
Kobina Tahir Hammond, speaking on JoyNews’ PM Express, stated that despite the manufacturers’ lack of consultation during the L.I.’s writing, he had persistently discussed the necessity of price transparency with them.
He told the host, Evans Mensah, that he had pushed for the cement manufacturers to self-regulate their pricing to ensure prices were not shooting over the roof, however, his call was not heeded.
“I didn’t have to consult them in drafting the L.I., I warned them consistently that they couldn’t do what they’re doing [raising prices]. I consulted with them several times in my office, I told them what I wanted. I wanted them to be transparent, there to a reduction, I wanted us to understand the basis and the publication.”
“Get this information and let me know…I was told they said I couldn’t do it. On a simple matter of price publication and self-regularisation I have been going on and on…it gets to a point when something has to be done, and what has to be done for me within the law is to get to parliament,” the Trade Minister said.
According to KT Hammond, the proposed L.I. will force cement producers to disclose all of the information required to assist establish a price cap that will benefit both the producers and the final customer. This includes information about their production costs.
“The reality is very clear, the cedi hasn’t been performing greatly of late, we accept that there is a difficulty. But, let’s understand the pricing mechanism just as the petroleum sector is regulated by the NPA, so everyone knows the basis.”
“The price ceiling would be arrived at after the consideration of all factors involved. they would have to be transparent, sit down with the committee and explain to them how they would lose among others,” he added.
He thinks the L.I. is required to stop cement makers from taking advantage of the general population. To choose a price point, the committee would therefore go over all the specifics, such as production costs, profit margins, cedi depreciation, and other factors.
This is in response to the Chamber of Cement Manufacturers’ appeal to Parliament expressing their categorical disapproval of the proposed L.I.
COCMAG called on the house to decline the proposal explaining that it was presented without any prior consultation with the key stakeholders in the cement industry, including the manufacturers.
Presenting the proposal without the needed consultations undermines the principles of fairness, transparency, and inclusive decision-making, they indicated.
“We firmly believe that the issues leading to the escalation of cement prices are complex and multifaceted, primarily driven by the rapid and consistent depreciation of the Ghanaian cedi against the US dollar.
“Addressing these challenges requires a comprehensive understanding and collaborative effort from all relevant parties, including the Ministry of Trade and Industry, cement manufacturers, and other stakeholders.”