News:
July 7, 2021
Recent hikes in building materials in the country that has been a cause of worry to most Ghanaians has generated debate on the floor of parliament on Tuesday, July 6, 2021.
This follows a statement made on the floor by the Obuasi West Member of Parliament and Chairman of the Finance Committee, Kwaku Kwarteng expressing worry on how prices of building materials including cement, iron rode among others have suddenly frog leaped without government introducing any new taxes to that effect
According to him, “in recent times there have been an unusual price hikes of these items on the market which has understandably provoked complains from industry operators and consumers in my constituency in Obuasi West, and the entire construction industry in the country.
He noted that these price developments have triggered further hikes in building related services such as excavation, drilling, tilling among others. “Indeed, I have heard complaints that even water supply to construction sites and construction labour have all become unusually more expensive.
And added that it is difficult to figure out the source of these price hikes stating that “we know that parliament has not passed any law that could have added any tax or levy to the prices of these items. The price hikes for these items predates the recent taxes this parliament approves as part of the 2021 budget statement and economic policy”.
He said the development is strange and must be frontally addressed. “We need to change this for the sake of the construction industry, but more importantly, we need to get to the bottom of this disturbing development to ensure it doesn’t spread to other commodities and other industries on the market.
He thus appealed to the Speaker to task the relevant Committee to investigate the cause and possible solution to the development.
Meanwhile, Mr. Cassiel Ato Forson, also a member of the Finance Committee in supporting the statement made by the Obuasi West MP believes that Ghana as a free-market economy where prices of goods and services are determined by market forces depending on demand and supply, it is possible that the phenomenon is driven by demand and supply.
He, however, added his voice to the call for deeper interrogation into the actual cause of the price hikes, indicating that, “because clearly, if indeed this is artificially done, then it has a negative impact on the Ghanaian economy, because people’s disposal income that are supposed to be used for construction obviously are being used to pay for arbitrary prices”.
Dominic Shirimori/Ghanamps.com