The Minister for Trade and Industry, Kobina Tahir Hammond, has dismissed calls from cement manufacturers for stakeholder consultations before the introduction of a legislative instrument (L.I.) aimed at regulating cement prices.
Despite not consulting the manufacturers during the drafting process, KT Hammond stated that he had repeatedly urged them to self-regulate and be transparent about their pricing.
He emphasized that the proposed L.I. would compel cement manufacturers to disclose their production costs and other necessary information to establish a beneficial price ceiling for both producers and consumers.
Speaking to journalists in Parliament on Wednesday, June 26, the Minister admitted the cedi has not performed greatly lately but stressed the need for a mechanism to regulate cement prices just like the petroleum sector is regulated by the National Petroleum Authority (NPA).
He disclosed that he has submitted the LI to the House and is expected to be laid on Thursday or Friday after which it would become law after 21 days.
The proposed L.I., titled ‘The Ghana Standard Authority Pricing of Cement Regulations 2024,’ was presented to Parliament on June 25.
It, however, faces strong opposition with members of the Minority National Democratic Congress (NDC) demanding it undergo pre-laying procedures before being formally laid on the floor.
The document also proposes stiff penalties for manufacturers who violate the price ceiling, including up to three years in jail for directors and officers of offending companies.
Meanwhile, the Cement Manufacturers Association (CMA) has rejected the directive to reverse price increases, citing production costs and the principles of a free market economy. They argue that the directive lacks basis and justification.
The Chamber of Cement Manufacturers (COCMAG) has also petitioned Parliament to reject the proposed L.I., arguing that it was introduced without necessary consultations.
They emphasized that addressing the complexities of cement pricing requires a collaborative effort from all relevant parties, including the Ministry of Trade and Industry, cement manufacturers, and other stakeholders.
According to KT Hammond, however, he does not need to consult any group to lay the LI and argued that the constitution provides him alternative actions to take even if the minority rejects the regulation.
He said, “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 be a reduction, I wanted us to understand the basis and the publication.”
He stressed that the document sets a maximum allowable retail price for cement beyond which no manufacturer can sell a bag of cement.