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| Alan Kyeremateng, Trade and Industry Minister Designate |
By
Caroline Pomeyie
Mr
Samuel Hemans-Arday, Deputy Marketing Manager Akosombo Textiles Limited (ATL),
has called on the in-coming government of the New Patriotic Party (NPP) to
create an enabling environment for local industries especially the textile
industries to grow.
Mr
Hemans-Arday said: “The in-coming government should take some measures to
revive conditions crippling the local textile industries, citing the 17.5 per
cent VAT rate as an example”.
He
also noted that, smuggled goods into the country, unstable exchange rates,
influx of Chinese products, high utility tariffs as other conditions that were
hindering business growth.
Mr.
Hemans-Arday who said this in an interview with the Ghana News Agency,
cautioned that if the current economic situation continues, ATL would be pushed
to lay workers off.
He
said in order to prevent fabrics smuggling into the country, the government
should consider allowing only one border for importing fabrics, preferably the
Tema Harbor.
He
added that this would help curb the problem of smuggled goods and the
government could earn some revenue from the tax or import duty paid.
"Besides
avoiding duty payments, these smuggled goods usually copy our logo, design and
brand and they sell it cheaper on the market. So we have fake ATL fabrics
smuggled into the country.
"The
custom officers and authorities at the various borders should be able to
identify these fake goods and take the appropriate action against
smugglers," he added.
He
said, “If the conditions persist ATL will eventually have to lay off some
workers or close down the spinning and weaving sector which employs about 500
people and resort to importing gray cloths for production.
“We
have moved from employing about 3,000 people to 1,100 currently.”
He
also said that because of the challenges, the local textiles industries such as
Printex, GTP and ATL inclusive run their machines three times a week instead of
five times a week.
“For
you to achieve 50 per cent production capacity a textile company must run five
times in a week on three shifts: morning, afternoon and night,” he said.
Mr.
Hemans-Arday recommended a reconsideration of the VAT rate for the local
industries. “The government can decide that the Textile industries pay VAT rate
of 5 per cent to help the local industries compete with the Asia Products.
“Because
Asian textile companies, for instance China, get 13 per cent export incentive
on any export they do. So they can decide to sell their products at the cost
price and then keep the rebate as their profit.
 |
| Vice President, Dr Mahamudu Bawumia |
“The
cost of production has been very high for local industries. Besides paying high
duties for the importation of raw material, high utility tariff, paying Social
Security and National Insurance Trust (SSNIT) contribution for each staff and
high cost of raw materials has made production very expensive.
“We
use black oil for our production, which is a petroleum by product but it is
more expensive than even petrol which should not be the case. Chinese companies
use steam which is free to run their machines. Energy cost is also crippling
the textile industry,” he said.
He
iterated: "The local textile industry do dread competition, but it is the
unfair competition we detest."
He
suggested that the government should give a concessionary tariff for local
industries in terms of energy and water for all industries, reduce interest
rates and also ensure the cedi stability.
“The
interest rate is too high for companies. 30-32 per cent is too high for
companies. It makes it difficult for companies to invest, reap profits and pay
back loans. Some bank even has a rate as high as 40 per cent. The exchange rate
is also not too stable.
“For
instance; you import raw materials at a particular price, then you produce and
fix prices based on the cost of production. After less than three months we get
to the market only to find that the currency has devalued by a certain
percentage.
“The
company needs to either increase the products price or absorb the costs. Most
often, the company absorbs the cost.”
Despite
all these challenges, Mr. Hemans-Arday says ATL remains the only vertically
integrated manufacturing company and noted for its quality cotton fabrics.
It
is part of the “CHA Textile Group of companies, a leading textile multinational
conglomerate.
GNA
Editorial
A TASK FOR NANA
We
fully agree with Mr Samuel Hermans –Arday, Deputy Marketing Manager of Akosombo
Textiles limited that the Akufo-Addo administration needs to take urgent
measures to save Ghana’s textile industries from total collapse.
Over
the last 30 years, the textile industry in Ghana has been reduced to producing
at less than 10 per cent of its capacity and thousands of workers have lost
their jobs as a result.
Local
textile designers have also lost substantial revenue and the state is suffering
revenue losses largely as a result of the smuggling of textiles.
The
problems of the textile industry in Ghana are the direct result of the
country’s embrace with neo-liberalism which insists that everything including
healthcare should be left to greed of so-called market forces.
If
the Akufo-Addo administration is to keep its promise of creating jobs and
safeguarding existing ones then it ought to take steps to protect local
industries from the vampires of neo-liberalism.
This
is a task which must be carried out and it can be done.
Bravo, Electoral
Commission
 |
| Charlotte Osei |
The
Electoral Commission (EC) deserves commendation for conducting one of the most
credible elections, since the last 24 years of our democratic journey in the
history of Ghana.
Initially,
most Ghanaians doubted the capacity of the EC in organising a successful
elections because of the few challenges that characterised the early (special)
voting exercise.
Since
the last two decades of Ghana’s democracy, opposition parties have constantly
doubted the integrity of the EC. For some strange reason, there have always
been the fear that the EC will favour the ruling governments.
In
spite of the mounting pressure on the EC to announce the election results, the
Chairperson of the Commission, Mrs. Charlotte Osei, stood her grounds as a
leader. “The duty we owe Ghanaians is not to declare results quickly, but to
declare results accurately”, she emphasised.
So
far, so good, Ghana has been able to stand the test of time after another
successful general elections. The victory of the 2016 Election is not the
reserve of the NPP, but for the entire country.
According
to a former US President Abraham Lincoln (1809-1965), ‘the ballot is stronger
than the bullet’, so let’s uphold our commitment to multiparty democracy in
high esteem.
Meanwhile,
let’s appreciate the stewardship of President John Dramani Mahama for
contributing his quota towards the development Ghana in diverse ways and,
especially, the peace that the country is enjoying.
As
we usher in another government under the presidency of Nana Addo Dankwa
Akufo-Addo, I implore fellow compatriots to stand in unity and accord the new
administration the needed support to build a more prosperous nation.
ASP
James Annan
Cantonments,
Accra
jamesannan2006@gmail.com
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