The Minority Leader in Parliament, Haruna Iddrisu has attributed the decline of the local textiles industry to government’s inaction and misplaced priorities.
This follows claims by the Textile Workers Union of an alleged importation of material for the new uniforms introduced by the Ghana Education Service.
On the Citi Breakfast Show, Mr. Iddrisu, a former Trade Minister, said the current government had failed to safeguard local traders and the textile industry.
“The decline of the performance in the textile industry is largely a function of the inability of the government to protect local infant industry against the importation of textile into the country, against the dominance of our foreign textiles which are cheaper than those produced locally.”
Ghana used to have over a dozen textile companies but is now left with a few like GTP, Printex and Akosmbo Textiles Limited (ATL) which are said to be struggling.
Mr. Iddrisu also feels that the disbursements from the Ghana EXIM Bank, which was set up to support an export-led economy, are being misused.
Haruna Iddrisu said he plans to query the Minister of Trade and Industry, Alan Kyerematen, on the matter.
“Government is not doing enough. They are misdirecting funds meant for these entities to undeserving entities… I will soon file a question for the Minister for Trade to share details of what the disbursement has been over the years.”
Enforcement of GIPC Act
Section 27 (1) of the GIPC Act bars foreign nationals from engaging in retail trade, Mr. Iddrissu reminded.
But “the current Trade Ministry and government regime have not respected the provisions of that law,” the Minority Leader noted.
The enforcement of the law in the past year has led to clashes in market places in between local retailers and foreign retailers in the market.
To avoid violent confrontations, the government said it would opt for diplomacy over forced evictions.
NDC’s failings
The issue of the failed directive under the Mahama administration to security agencies to only procure footwear from the Kumasi Shoe Factory in 2016 also came up on the show.
Mr. Iddrisu admitted that the government at the time did not do enough to support the sector but said it was no excuse for the current government.
“We need to right some of those wrongs and government must be firm in what it wants to do and demonstrate weight. That conduct [under our administration] was unacceptable and I believe that that should not prevent us from taking some action that can salvage an industry that can provide us with employment.”
‘We’ve not imported new uniforms, disregard Textiles workers’ claims’- GES
In a development, the Ghana Education Service (GES) has asked the general public to disregard the claims by the Textiles Workers Union that government had imported its new school uniform for Junior High Schools.
According to GES, it has not awarded any contract to any local or foreign firm to bring the fabric into the country.
In a statement, the GES said that the claims made by the textile workers are baseless and must be treated with the contempt it deserves.
“The attention of Management of the Ghana Education Service has been drawn to discussions in the media on alleged importation of school uniforms into the country by the Ghana Education Service. Management of GES wishes to make it clear that the story is baseless and has no merit whatsoever.”
“The GES wishes to state that it has not imported, neither has it contracted any individual, locally or internationally to bring in the new uniform for Junior High Schools.”