The Dean of the University of Cape Coast Business School, Prof John Gatsi, is questioning the rationale behind establishing a legislative instrument specifically aimed at regulating cement prices, a single commodity within the construction industry.
According to him, if the government genuinely intends to enhance the industry, it should implement regulations comprehensively for all commodities, not just cement.
Speaking in an interview on Thursday, June 27, he asked, “Why only cement? If it is the right thing to do, then we don’t use only cement for construction, you use other materials which are also very sensitive to price development in the country.”
His comments follows Trades and Industry Minister, KT Hammond’s pledge to disregard a petition from the Chamber of Cement Manufacturers to delay the implementation of a legislative instrument aimed at regulating cement prices.
KT Hammond insists that the law is essential to prevent a cartel of manufacturers from exploiting the public.
Under the proposed LI, cement manufacturers could face up to three years in jail for violations.
However, the Dean of the Business School warned that this approach might potentially impact the economy negatively.
“If we are not careful, we will get to a point that items which are sensitive to prices will be drawn under price control and that will not be the best for the economy,” he said.
Also on the same show, Ranking Member of the Trade, Industry and Tourism Committee, Yusif Sulemana, said that the approach was temporary and not a solution to checking inflation in the housing sector.
He argued that various raw materials are assembled to produce cement, and if the government insists on regulating the price, the standard of cement might be compromised.
Meanwhile, the Ghana Real Estate Developers Association says the legislative instrument aimed at regulating cement prices in the country was a step in the right direction.
The Minority in Parliament hasvoiced strong opposition to the proposed Legislative Instrument. Minority Spokesperson on Legal and Constitutional Affairs, Bernard Ahiafor stated that the regulation contradicts the parent act, which covers standards for all goods and services.
“The parent act by its objects deals with all goods and services, that is setting the standard for all goods and services including the cement, and the understanding of the standard is controlling the quality of all goods and services produced and imported in the country.”
According to the spokesperson, the GSA is responsible for setting quality standards, not controlling prices.
He stated that selling is different from pricing of goods and services.
“We are of the view that if the LI is allowed to pass through parliament which will set the price of cement, then equally all goods and services produced in the country must go through price control because you cannot single out only cement when the parent law is dealing with all goods and services.”
According to Mr Ahiafor, there are domestic remedies which should be used to address these concerns instead of resorting to legal action.