Delivered By: Mr. John Boadu (Deputy Communications Director-NPP)

Ladies and gentlemen:
On 29th of February 2012, Mr Fiifi Kwetey, the Deputy Minister for Finance & Economic Planning issued a statement as a response to widespread complaints by Ghanaians that times are tough or “enko yie” mie ku kum, emi ehii, aa bge wo, Be zoa Da Keo. The statement sought to preach to Ghanaians about how much our economic circumstances have improved under the NDC government.
He was the same person who as editor of the Crystal Clear Lens published that all gold reserves of the country had been stolen and sold by the NPP administration. This misinformation was latched on by his propaganda outfit and many otherwise respectable members of the NDC to lambast the New Patriotic Party.
The suggestion by Mr Fiifi Kwetey and other government officials that they inherited an economic mess or empty coffers is most annoying. Three weeks after coming into office, the Mills-led NDC administration spent billions of cedis (out of the empty coffers they inherited from the NPP) just for drinking tea during NDC transitional meetings. Shortly, the NDC Minister for Youth & Sports was spending billions of cedis buying huge quantities of pampers and khebabs for unknown purposes. On top of that, the Minister travelled round the world with his girlfriend, all at the tax payers’ expense. The response of President Mills was that it was not the first time a minister had travelled outside with his girlfriend.
But the worst was to follow, as government officials connived with their cronies and paid out gargantuan dubious judgement debts from the coffers they inherited from the NPP administration. When the Attorney General, Mr Martin Amidu, attempted to recover some of the stolen money, he was immediately sacked for a so-called “misconduct”.
Is it not curious that, today, Mr. Fiifi Kwetey and those of his like, in spite of the overwhelming evidence, can still suggest to anybody that they inherited empty coffers?
INFLATION:
Now, let’s make some brief comments about what was touted as the economic achievements of the Mills government. On inflation, it should never be too hard for even the lay person to appreciate that if the NDC had inherited an inflation rate of 40.5% as the NPP did in January 2001, they could not have achieved single digit rate of inflation. They were lucky to inherit an inflation rate of 18.1%. Yet Mr Fiifi Kwetey thinks this is the NDC government’s biggest achievement. In fact, by the year 2004, the NPP government had reduced inflation from 40.5% it inherited from the previous NDC government to 16.4%. Ironically, the result of single digit inflation is the gargantuan increases in prices of goods and services.

Over the 3 years of the current NDC government, the price of any item you can think of has risen by between 50% to over 300%.
A few examples would illustrate these astronomical increases:
2008 JANUARY,2012
Sachet Water 3p (¢300) 10p (¢1000) Over 300%
Secondary School Fees
(Abuakwa State College, Kyebi) GH¢120 (1,200,000) GH¢273 (¢2.73m) Over 100%
Electricity/Compound Hse B’shie GH¢10 (¢100,000) GH¢25 (250,000) Over 150%
Standard water poly tank (Adenta) GH¢12 (¢120,000) GH¢30 (¢300,000 Over 200%
Trotro (Bubuashie-K’shie) GH¢15p (¢1,500) GH¢40p (4,000) Over 150%

Trotro (Bubuashie-Circle) GH¢30p (3,000) GH¢50p (5,000) Over 50%

1 kg Bread GH¢1(¢10,000) GH¢2 (¢20,000) Over 100%

Gari Olonka GH¢1 (¢10,000) GH¢2.00 (¢20,000) Over 150%

Rice Olonka GH¢6 (¢60,000) GH¢11.4 (¢114,000) Over 80%

Maize (bag) GH¢20(¢200,000) GH¢120 (¢1.2m) Over 500%

Ideal Milk GH¢60p (6000) GH¢1.20p ¢12,000) Over 100%

Petrol Gallon GH¢3.80p(¢38,000) GH¢7.80p(¢78,000) Over 100%

Accra-Kumasi GH8 (¢80,000) GH¢22 (¢220,000) Over 150%
Ball of Kenkey GH¢20p (¢2000) GH¢50p (5000)-1.0 Over 150%-400%

Road Tolls GH¢5p (¢500) GH¢50p (5000) Over 900%

University Rent (Legon) GH¢200 (¢2m) GH¢400 (¢4m) 100%








EXCHANGE RATE:
On exchange rate, the Deputy Minister just mixed up the figures without attempting to understand what the figures mean for the livelihood of the average Ghanaian. For instance, when the cedi appreciates against international currencies, it hurts our exports, affects economic growth and slows down job creation. At the same time, a depreciation of the cedi leads to higher prices of imported goods which increases the cost of living. So, we should be having a discussion about the most balanced exchange rate that produces the best outcomes for our economy. The misinformation that the cedi is appreciating when everybody knows that it is depreciating is nothing but falsehood from a former Propaganda Secretary. How can one describe a currency that has depreciated by over 58% ie from GH C1.12 in January 2009 to GH C1.75 as at now (a period of 3 years), compared with a cumulative depreciation of 30% by 2004 and 57% for the entire 8 year period of the NPP administration ie from GH0.7048 in January 2001 to GH C1.12 in December 2008 as an achievement? If anybody is to take credit, who should it be in the light of these comparative data?
Indeed, our currency is suffering so much that just in the first 2 weeks of February 2012 over $450m from the country’s foreign exchange reserves were used just to support the cedi. The monetary policy committee report released on February 15, 2012 tells it all. Page 6 paragraph 32 states that, “in January 2012 however, the cedi depreciated at a much faster pace of 5.9% compared to 1.9% in January 2011.
GROWTH RATE:

The NDC/ Mr .Fiifi Kwetey don’t cease to amaze me for having the boldness to talk about economic growth as an achievement. This is what the NDC themselves said about growth in June 2009. Page 17, paragraph 47 says that “annual GDP growth was 1.6 percentage point (5.7 against 4.1) higher over the period than during the previous six years (1996-2001). Simply put the NPP inherited a GDP growth of 3.7% and under $4b GDP in 2000 and bequeathed to the NDC 8.4% GDP growth and over $34b GDP in 2008. Below is a table showing year by year growth rate:

2000 2001 2002 2003 2004
Real GDP(%) 3.7 4.2 4.5 5.2 5.7

2005 2006 2007 2008
Real GDP(%) 5.8 6.4 6.3 7.3 (8.4 rebased)


Source: Bank of Ghana; Pg 181 of Monetary Policy and Financial Sector Reform in Africa- By: Dr. Mahamudu Bawumia.

The NDC returned to power, after inheriting a GDP growth of 8.4% in 2008, only managed as usual, to achieve 4.0% in 2009, 7.7% in 2010 and 13.7% in 2011 when oil kicked in. Thus in 2011, non oil GDP was 6.5%, clearly this is not a record that any Patriotic Ghanaian should be proud of and boast about.






ARREARS:
Ghanaians are pleading with Mr. Fiifi Kwetey to show us his source where arrears for 2008 was 34 trillion cedis because according to the report presented to the IMF by his own Ministry, page 27 table 2B shows the ff: Ghana: Summary of Central Government budgetary operations, 2008 -13, arrears outstanding in 2008 was GH C1.353B, 2009 was GH C 1.592B, 2010 was GH C 2.158B. So where is this 34 trillion cedis coming from? Can we safely conclude that this is an aspect of goat turned to cow philosophy?


BUDGET DEFICIT:
One needs to be careful when the Goebbels of our country are speaking because deficit as a percentage of GDP of old base economy is totally different from deficit for a rebased economy. First of all, the deficit for 2008 was nowhere near 15% of GDP. It is only the Mills/Mahama administration that determines annual budget deficit by excluding divestiture receipts for that year. It was 11.5% including divestiture receipts. Budget deficit now is at an all time high in monetary terms but because of the rebasing, the percentage seems smaller. As a country we must monitor this development in order not to plunge our country into what the NDC did in the 90’s. The Governor of the central bank lamented on Pg 3 of the Monetary Policy Committee report paragraph 12 that fiscal deficit for January 2012 alone was GH¢756.4m.

PUBLIC DEBT:
Ladies and gentlemen, within a period of just three years under the NDC administration, public debt has risen from GH¢9 billion (US$8 billion) in January 2009 to an unbelievable GH¢24 billion at the close of February 2012. The natural question people are asking is, WHAT HAS HAPPENED TO ALL THAT MONEY; WHAT IS THERE TO SHOW FOR IT?
US $750 million Eurobonds
What the NDC itself said about the utilisation of the Eurobonds
“Non concessional borrowing in 2007 was mostly used to raise energy capacity, and that of 2008 is being assessed. Out of the US$750 millions borrowed in 2007 in the form of Eurobonds, US$595 millions had been disbursed by January 2009. The proceeds were allocated primarily to support public investments in the energy sector according to the following distribution: US$286 million for investments by the Volta River Authority (VRA); US$134 million for investments by the Electricity Company of Ghana (ECG); US$54 million for the investment in the Bui Dam; US$31 million for the Government's equity investment in the West Africa Gas Pipeline (WAGP); and US$90 million for public investments in road infrastructure. The information provided by the Government of Ghana confirms therefore that the proceeds from the Eurobonds were used for productive investments, primarily in electricity generation and distribution.”
After conceding that the US$750 million was used for “productive purposes”, is it not laughable that three years later, the NDC, under the pressure of the Woyome Scandal, should claim that the US$750 million was “wantonly dissipated”?
It is also necessary to draw attention to the following admission in the above paragraph: “Out of the US$750 millions borrowed in 2007 in the form of Eurobonds, US$595 millions had been disbursed by January 2009.” So, how was the remaining US$155 million of the Eurobond money the NDC inherited in January 2009 used? That is a question the Mills government must answer.

REAL SECTORS:
Ladies and gentlemen, economic management is about delivering improvement to the lives of ordinary people. In the end, improvements must happen in the real sectors: Agriculture, Services and Industry. These are where the jobs are created for people to participate in wealth creation and earn some wage to improve their lives. What has been happening in these sectors?
AGRICULTURE/COCOA PRODUCTION:
At the time President Mills assumed office, Ghana’s agriculture sector was growing at 7.4% [GSS New Series of the Gross Domestic Product Estimates, November 3, 2010]. In the 2012 budget statement, the NDC reported that the agriculture sector achieved an unimpressive 2.8% last year (as against a target of 5.3%). Indeed, but for the rise in cocoa output (1 million tonnes in 2010/2011 season) resulting largely from the good policies of the NPP government in earlier years, Ghana’s agriculture would have registered negative growth last year. Since the 1964/65 Season where annual cocoa production hit,580000 tonnes no government was able to equal that tonnage production until in the 2003/2004 Crop Season, when a record 736,976 tonnes was achieved and again in the 2005/2006 Season which also recorded a higher tonnage of 740,458 tonne . During the eight tears of the NPP cocoa production was consolidated to between 600,000 tonnes and 700,000 tonnes. In fact our target was to hit 1,000,000 tonnes in 2010. The following factors among others motivated cocoa farmers to improve and expand their farms to enable the country achieve the over one million ton production in 2011:
• The introduction of the Cocoa Diseases and Pest Control Programme (CODAPEC) of which free mass cocoa spraying exercise formed part;
• Extensive use of fertiliser under the Cocoa Hi-Tech. Programme which also involved the replanting of denuded farms with hybrid seedlings;
• The payment of motivating producer prices, annual bonuses, and other incentives to farmers;
• Intensification of the Swollen Shoot Virus Control Programme;
• Introduction of a Stabilisation Fund to ensure that farmers are guaranteed stable prices in times of low commodity prices;
• A near doubling of cocoa processing capacity from 180,000 tonnes to 330,000 tonnes;
• Expanded infrastructural base which included the construction of a 50,0000 tonne capacity warehouse complex at Tema and start of another 100,000 tonne capacity at Kajebri near Takoradi, rehabilitation of Cocoa House, tarring of cocoa roads, among others;
• Improved farmers’ welfare such as the construction of a clinic at Debiso in the Western Region, expansion of the Cocoa Clinic in Accra, increased scholarship for children and wards of cocoa farmers and insecticide treated nets in cocoa growing areas.
The NPP therefore laid a solid foundation for the expansion of the cocoa economy in the 8 years of the Kufuor administration
INDUSTRY:
In industry, manufacturing terribly underperformed. Government targeted 7.0% and achieved 1.7%. Again, but for the petroleum deposits discovered under the previous NPP administration of which the NDC through Hon. Lee Ocran pooh pooed, there would have been very little to show for industry’s growth last year.
SERVICE:
The situation was worse in the services sector. Trade registered a growth of 2% against a target of 11%. The hospitality industry registered a growth of -11% (negative eleven percent) against a target of 13.5%. The banking system registered a growth of 1% against a target of 17%. Real estate services registered a growth of 2.4% against a target of 6%. Education registered a growth of 3.8% against a target of 9%. Business registered a growth of -1% (negative one percent) against a target of 10%, and so on.
These figures, reported in the NDC’s own 2012 budget statement, call for a sober and humble admission of failure, and an honest analysis of why things are deteriorating so quickly in all the sectors, so that we can remedy the situation. Fact is, it is in these areas; agriculture, manufacturing, trade, banking, education, business, etc, that Ghanaians make their living. When these sectors are failing, people are bound to feel the pinch, hence the general complaint that TIMES ARE TOUGH or “ENKO YIE”, “MIE KU KUM”, “EMI EHEE AABGE WO”
Ladies and gentlemen, let me explain why it is in the interest of this country that this Mills-led NDC administration is rejected in the next general elections and replaced with a government of the New Patriotic Party.
1. When the NPP assumed office from the NDC in 2001, this country was a highly indebted and poor country, and the NPP Government had to subscribe to the HIPC initiative to deliver the economy from total collapse. And for people like Mr. Fiifi Kwetey who claim that going HIPC was not helpful, we draw attention to paragraph 96 of the NDC government’s 2009 budget statement: “The ratio of Gross Public Debt to GDP declined from 142.6 per cent in 2001 to 41.4 per cent in 2006 under the dual impact of the Highly Indebted Poor Country (HIPC) initiative and the Multilateral Debt Relief Initiative (MDRI).”
This is the testimony of the NDC about what the NPP did in 2001. Today, the sectors of Ghana’s economy are in shambles. The NPP is looking for the opportunity to fix them.
2. We abolished the Criminal Libel and Sedition Laws on 29th July 2001. So today, there is more media freedom. The NPP is looking for the opportunity to give more support to the media.
3. In October 2002, we introduced the Metro Mass Transit, popularly known as the Kufuor buses. Today, the service expansion programme has been abandoned by the Mills government. The NPP is looking for the opportunity to expand the service.
4. In 2003, we replaced the Cash-and-Carry health delivery system with the National Health Insurance Scheme. Today, the NDC government is running down the NHIS. The NPP is looking for the opportunity to fix it.
5. We introduced the Free Maternal Care in which expectant and nursing mothers received free medical care. Today, the NDC government has collapsed it. The NPP is looking for the opportunity to restore it.
6. We introduced the Capitation Grant and the School Feeding Programme in September 2004. Today, the NDC has politicised and messed them up. The NPP is looking for the opportunity to expand these programmes.
7. We launched the National Youth Employment Programme to address youth unemployment in the country. Today, it is fraught with problems. The NPP is looking for the opportunity to fix it.
8. We launched the National Identification Scheme in March 2006. As we speak, the scheme has come to a standstill. The NPP is looking for the opportunity to advance it.
9. We gave birth to the Single Spine Salary Policy. Today, it is ridden with problems. The NDC government is struggling with its implementation. The NPP is looking for the opportunity to fix it.
10. In July 2007, we secured funding and started the construction of the Bui Hydro-Electric Project in August the same year. Today, the NDC General Secretary, Mr Asiedu Nketia is sitting on the board of the project and selling cement blocks to the project at the same time. The NPP is looking for the opportunity to complete what we started.
11. We improved petroleum exploration and discovered crude oil deposits in commercial quantities. Today, the NDC is using the oil proceeds to pay dubious judgement debts. The NPP is looking for the opportunity to clean the mess!
12. Finally, the NDC government inherited a middle income economy from the New Patriotic Party in 2009. Today, Ghanaians are wailing. THE NPP IS LOOKING FOR THE OPPORTUNITY TO RESTORE HOPE.
We thank you for your attention.