Consumer Protection Organisation, Cuts International has criticised attempts by the government to introduce a legislative instrument to regulate the prices of cement.
Appiah Kusi Adomako, the Director for Cuts International (West Africa) told the host of The Big Issue on Channel One TV, Selorm Adonoo that attempts to regulate cement prices will deter investors which can crush the industry and must, therefore, not be tolerated.
“In the case of cement, when you want to regulate prices, what it means is that the industry will not even have any incentive to invest in it again. Let’s say, everyone should sell 42r cement at let’s say GH¢100, there are others who can sell the same brand for GH¢85 and this will not be the best for the economy.
“Price regulation is bad. Neither does it help the producer nor the consumer because you are going to create what is termed debt weight loss in economics. Demand and supply is the best way of allocating resources and if you ask me if price regulation is the best, I will say no.”
Mr. Kusi Adomako advised that the government must rather focus on getting the Competition and Anti-Trust Law which he said has been lying at the Trade and Industry Ministry for the past 60 years passed to mitigate unbridled price increases.
“This [LI to regulate prices] approach is wrong because it may even be that cement manufacturers have ganged up and fixed prices and the tool to fixing that is not price regulation. There is a law called the Competition and Anti-trust Law which has been lying at the Trade Ministry for the past 60 years.
“That competition and fair trade bill is the best tool to regulate anti-competitive practices in the industry and not just in the cement industry. I think that the minister is wrong and I expect Parliament to reject the LI with all the powers available to them.”
Explore the world of impactful news with CitiNewsroom on WhatsApp!
Click on the link to join the Citi Newsroom channel for curated, meaningful stories tailored just for YOU: https://whatsapp.com/channel/0029VaCYzPRAYlUPudDDe53x
No spams, just the stories that truly matter! #StayInformed #CitiNewsroom #CNRDigital
The post Parliament must reject LI seeking to regulate cement prices – CUTS Int’l appeared first on Citinewsroom – Comprehensive News in Ghana.
