Monday, 29 October 2018

TUC calls for gov’t to help address hardship

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Adnan Adams Mohammed

The Trades Union Congress (TUC) has called on government to use the budget to support private sector to complement government initiatives to lessen the current hardship faced by Ghanaians.

They believe that, the adequate support from government to the private sector will help to create more jobs, overhaul exemption system, eliminate distortions and inequities in pay across public sector institutions, address challenges of pension, health care, housing labour administration, among others.

These are contained in TUC’s proposals for the 2019 budget and economic policies of the government submitted to the Finance Ministry.

According to the union, the first post-IMF budget should lay a very strong foundation President Akufo-Addo’s ‘Ghana Beyond Aid’ agenda by outlining concrete measures that will shift the economy away from taxes to production.

“We believe that our proposals in this submission will help reduce the widening inequality in Ghana to ensure a stable and peaceful society,”

TUC decried excessive importation of most of our basic needs, 35% tax on personal incomes of GH¢10,000 and above, the massive job losses in some key sectors of the economy, including mining, banking and maritime sectors, the frequent upward adjustment of petroleum prices, restrictions imposed by the IMF programme on public sector pay adjustments in particular and public expenditure in general saying these all feeding into the harsh socio-economic conditions currently being experiencing in all parts of Ghana.

“The budget must spell out policies and programmes to translate the macroeconomic gains into a very significant reduction in the cost of living.

“We expect government to announce initiatives to plug the leakages in the tax system. We do not expect government to introduce new taxes.

“Rather, the tax exemption system must be overhauled to eliminate exemptions for some multinational companies including those that are exploiting our natural resources,” it added.

TUC noted that a strong private sector offers the most sustainable solution to the unemployment challenge but there are too many constraints that are preventing the private sector to expand to absorb the rising number of job seekers.

The private sector has always complained about frustrations at the ports of entry and procedures for registration and licensing, it added.

The Union expects the Minister for Finance to announce bold initiatives in the 2019 Budget Statement to streamline the operations of its frontline agencies that often frustrate operations of domestic enterprises whether in the acquisition of permits or requests to have water and electricity connected to their premises.

“We acknowledge the various financial support programmes that government is implementing to support the growth of the private sector within the framework of the 1D1F initiative.

“The domestic private sector is clearly in need of financial support given the prevailing high lending rates.

“We urge government to complement the financial support with policy support.

“The most significant of this policy support is in the area of trade policy.

“The national trade policy is too liberal for our level of development. “Our trade policy facilitates the creation of jobs in foreign countries. “There is urgent need to reform our trade policy to align it with our employment objectives.

“The trade policy must support domestic manufacturing and discourage imports of non-essential products particularly those that can be manufactured here.

“We must make use of existing safeguards in the international trading system to support and protect domestic manufacturers from unsustainable competition” it added.

It appealed to government to strengthen the national standards and regulatory agencies to enforce standards particularly in respect of imported items to curb illicit trade.

TUC expects government to outline concrete plans for the implementation of housing initiatives announced in the 2018 Budge.


It bemoaned the huge regional disparity in the distribution of health personnel in favour of urban areas. About half of all doctors are in Accra.

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