NPP MANIFESTO

 

Manifesto of 68 of sound policies on the basis of an enhanced institutional framework. Macroeconomic stability is built around three pillars: monetary discipline, fiscal discipline and financial stability. To reinforce monetary discipline, the Bank of Ghana Act, 2002 (Act 612) established the Monetary Policy Committee (MPC) to guide the implementation of monetary policy. The other two pillars (fiscal discipline and financial stability) have no such institutional anchors. An NPP government will enact a Fiscal Responsibility Law (FRL) to bring comprehensiveness, accountability, transparency and stability to the entire budgetary process. 

Under this law, a Fiscal Council would be established to contribute to the accountability of Government, responsible for setting up medium-term fiscal policy anchors to guide fiscal policy as well as monitor compliance.We alsowill establish a Financial Stability Council (akin to the proposed Fiscal Council) that is well grounded in law. Its mandate, among others, will include assessing the vulnerabilities affecting the stability of the financial system. 

In addition to restore overall macroeconomic stability, the NPP will: i.undertake financial sector reform to deepen financial markets, promote financial inclusion, including deepening our electronic payments systemiii.formalize the economy through the establishment of a national database, using the National Identification System as the primary identifier, with linkages to the databases of institutions such as the Police, National Health Insurance Scheme (NHIS), Passport Office, Immigration, Courts, Ghana Revenue Authority (GRA), and the Driver and Vehicle Licensing Authority (DVLA), andb.Shifting the Focus of Economic Management from Taxation to ProductionThe mismanagement of the economy under the Mahama-led NDC government has resulted in an increase in taxes on virtually everything taxable. This has increased the burden on the private sector and has become a disincentive for production. To address these challenges, the NPP will shift the focus of economic policy away from taxation to production by:i.reducing the corporate tax rate from 25% to 20%ii.removing import duties on raw materials and machinery for production within the context of the ECOWAS Common External Tariff (CET) Protocoliii.abolishing the Special Import Levyiv.abolishing the 17.5% VAT on imported medicines not produced in the countryv.abolishing the 17.5% VAT on Financial Services vi.abolishing the 5% VAT on Real Estate sales New Patriotic Party (NPP) • HIGHLIGHTS of Manifesto for Election 20166A STRONG ECONOMY MATTERS vii.abolishing the 17.5% VAT on domestic airline ticketsviii.reducing VAT for micro and small enterprises from the current 17.5% to the 3% Flat Rate VAT introduced by the Kufuor-led NPP governmentix.introducing tax credits and other incentives for businesses that hire young graduates from tertiary institutions, andx.reviewing withholding taxes imposed on various sectors (including the mining sector) that have constrained the liquidity of many businessesThe ensuing increase in production and economic growth, arising from a streamlining as well as the elimination and reduction of some of these taxes, will more than compensate for any temporary revenue shortfall. Growth is expected to increase to double digits starting 2017. Indeed, during the NPP tenure between 2001 and 2008, corporate taxes were slashed from 32% to 25% and tax revenue actually increased! The data shows that, notwithstanding (or because of) the high level of taxes, there is a revenue shortfall of GH¢700 million for the first half of 2016.Additional sources of revenue, and therefore fiscal space to finance these tax reductions will include:i.broadening of the tax base as a result of formalization of the economyii.increase in tax complianceiii.reduced government expenditure as a result of increased collaboration with the private sector and prioritization of government expenditureiv.savings from the reduction of interest rates paid on the country's debt stockv.increase in oil and gas revenues from TEN and SANKOFA fieldsvi.elimination of corruption, especially in procurement of goods and services, which is estimated at about 1.5% of GDP annually, and vii.plugging leakages in the administration of public finances. The Auditor General's Report has indicated that between 2012 and 2014, GH¢5.9 billion of government funds cannot be accountedfor. Collectively, these measures will more than exceed any revenue shortfall from the reduction in taxes.c.Competent Management of the EconomyThe NPP has a solid record of economic management, including growing the economy, holding down debt judicious use of public finances while displaying a high sense of fiscal responsibility. The first transformation Ghanaians will therefore witness under the next NPP government, after the 2016 elections, is the transformation from the mismanagement, incompetence and corruption under the Mahama-led NDC government to prudent New Patriotic Party (NPP) • HIGHLIGHTS of Manifesto for Election 20167A STRONG ECONOMY MATTERS management, competence, and integrity under an NPP government. d.A Government Machinery that WorksUnder the Mahama-led NDC government, the quality of service delivery across all levels have broken down.Ordinary Ghanaians encounter deep frustrations and needless obstacles attempting to access public services from government agencies and institutions, including acquiring driving licences, acquiring passports, registering businesses, processing pension payments, processing payrolls for new teachers, nurses, doctors, and police officers, and land document registrations.The NPP believes that the purpose of Government is to help improve our lives, that of our families, and our communities, and an inefficient government machinery defeats this purpose, no matter the investments government allegedly makes in infrastructure.In this direction, in addition to managing the economy competently, the NPP will immediately deploy resources, both in equipment and personnel, in fixing the basics of the government machinery in order to deliver standardised services at affordable, transparent prices, faster turnaround times, and with professional handling of exceptions and grievances.In sum, we will make Ghana work again.New Patriotic Party (NPP) • HIGHLIGHTS of Manifesto for Election 20168A STRONG ECONOMY MATTERS NEW PATRIOTIC PARTYDEVELOPMENT IN FREEDOMTRADE AND INDUSTRYUnemployment today has reached unprecedented levels under John Mahama. Millions of Ghanaians wake up each day to the soul-destroying reality of joblessness and they spend their energies looking for non-existent jobs.Since job creation, for us in the NPP, is essentially a private sector activity, the number one priority for the next NPP government will be to put in place the policy framework that will help businesses expand and create jobs, as well as promote the growth of entrepreneurship opportunities for young Ghanaians in particular. The country's industrial sector faces significant challenges, the principal ones of which are lack of access to finance, high interest rates, inadequate and poor quality raw materials for industrial processing, poorly developed domestic trade, weak consumer protection, lack of effective collaboration between research institutions and industry, poor trade facilitation, an unstable exchange rate, lack of coherent industrial development planning and initiatives, poor research and development support scheme for industry, lack of land for industrial zones, high import duties on raw materials, poor standards of certification, and an unreliable and expensive power source. What the NPP will do:Our strategy is to address these challenges in ways that enable industry to thrive and become a major source of jobs, especially for the youth, icluding:a.pursuing aggressive industrialization and value-addition to agricultural produceb.providing tax and related incentives for manufacturing businesses in sectors such as agro-processing, light industries, pharmaceuticals, petrochemicals, garments and textiles, among others c.providing a reliable and cost effective mix of energy supply for businessesd.providing the necessary incentives for private sector participation in health service delivery e.pursuing policies that will reduce interest ratesf.implementing policies that will reduce the cost of doing business g.stabilizing the currency h.providing incentives to the hospitality and creative industries that will enable them create jobsi.investing in skills training and apprenticeships, andj.promoting exports, especially of value-added agricultural produce and light manufactures.Key initiatives we will initiate and implement include::a.establishing an Industrial Development Fund (IDF) to finance critical private sector industrial initiatives. The Fund will be seeded and fed by funding from Government, multilateral and private institutional investorsb.re-orient energy tariff policy to reduce the burden on businessesc. launch a comprehensive National Plan for Entrepreneurship and Innovation that will invest in supporting young businesses and start-ups, andd.develop, in collaboration with trade unions, a database for trained apprentices and artisans, and establish a National Apprentice Recruitment Agencye.creating an information portal and set up a task force to assist our youth and artisans in making their products and services visible on a local, national, and global scale.f."One District One Factory Initiative":In collaboration with the private sector, the NPP will implement the "One District, One Factory" Initiative. This District Industrialization Programme will ensure an even, spatial spread of industries.g.Strategic Anchor Initiatives:Government will partner private local and foreign investors to develop large scale strategic anchor industries to serve as growth poles for the economy, especially in petrochemicals, pharmaceuticals, iron and steel, cement, aluminium, salt, vehicle assembly, manufacture of heavy machinery, equipment and machine parts, agro-processing, garments and textiles, assembly of electronics and light machinery.h.Industrial Sub-contracting Exchange:Through a concerted, collaborative and collective effort, the NPP will enforce local content provisions by developing efficient and competitive local supplier networks for the goods and services that industry needs and that can realistically be sourced locally. To facilitate this, the NPP will develop a National Industrial Sub-contracting Exchange to link SMEs with large scale enterprises. i.NPP believes in empowering the local private sector and will pass legislation to require that at least 70% of all Government of Ghana, taxpayer-financed contracts and New Patriotic Party (NPP) • HIGHLIGHTS of Manifesto for Election 201610TRADE AND INDUSTRYprocurements be executed by local corporate entities.j.In addition, the NPP will introduce a policy requiring that 30% of the required 70% be sourced from entities owned by women, persons with disability, and those established under the Youth Enterprise Fund (YEF).New Patriotic Party (NPP) • HIGHLIGHTS of Manifesto for Election 201611TRADE AND INDUSTRYNEW PATRIOTIC PARTYDEVELOPMENT IN FREEDOMENERGY AND PETROLEUMUnder the Kufuor-led NPP government (2001-2008), significant contributions were made to the country's energy resources and infrastructure as a result of our bold and farsighted policies. These included:i.the discovery of oil and gas in commercial quantitiesii.the construction of the West African Gas Pipeline iii.in response to the emerging energy crisis of 2006/2007, through facilitations, procurements, and construction, an addition of 1440MW to Ghana's generating capacity as follows:•Bui Dam (400MW)•Tema Thermal 1 Power Plant - TT1PP (126MW)•Tema Thermal 2 Power Plant - TT2PP (49MW) •Mines Reserve Plants (80MW) •Kpone Thermal Power Plant (220MW) •Additions to Akosombo Hydro Power (108MW)•Takoradi 1 Power Plant - T1, Aboadze (132MW)•Sunon Asogli Plant (200MW), and •Osonor (now CENIT) Plant (126MW) I.POWER SECTORThe NDC government inherited an economy with no DUMSOR in 2009. However, the energy sector has since been badly managed. The poor management of the sector has been characterized by shortfalls in power generation, corrupt and opaque procurement of new power plants, frequent power cuts, inefficiencies and unsustainable inter-utility debts, which threaten the satisfactory long-term operation of the power sector. The effect of the last five years of DUMSOR on our economy has been devastating. The Institute of Statistical Scientific and Economic Research (ISSER), in its 2014 study, indicates, that on average, the country is losing production worth about US$ 2.1 million per day (or, US$ 55.8 million per month) as a result of DUMSOR alone and that, the country lost about US$680 million in New Patriotic Party (NPP) • HIGHLIGHTS of Manifesto for Election 2016132014 translating into about 2% of GDP due to the power crisis. It is now clear that Mahama has run out of things on which to blame DUMSOR. From acts of God, to blaming Nigeria, to wishing it away, it is obvious that, five years into this state of affairs and Mahama announcing that he had fixed DUMSOR, he does not know how to provide Ghanaians with a long-term, stable and reliable electricity supply.The hard, cold truth is that despite the recent election-inspired, artificial semblance of stability in the power supply situation, the fundamental challenges leading to DUMSOR remain, and the quick fixes have instead resulted in the imposition of high cost emergency plants on Ghanaians, corruptly procured from AMERI and KARPOWER. We still owe millions of United States Dollars to Nigeria for gas supplies.In fact, Mahama's greatest legacy to Ghana as President is DUMSOR.There is increased uncertainty about the future stability of power supply under the NDC government. Many businesses and residential consumers of electricity are justifiably afraid that DUMSOR would come back, if the NDC is retained in power, as it has not demonstrated capacity in addressing these challenges. What the NPP will do:a.end "DUMSOR" in the short-term, through government liquidity injection, restructuring of debts, and securing of firm commitments for the reliable supply of fuel b.reduce taxes on electricity tariffs to provide immediate relief to households and industryc.conduct a technical audit on all power sector infrastructure and develop and implement a 10-year Power Sector Master Plan which will be reviewed thereafter, to meet our medium to long-term energy needs d.develop and implement an Energy Sector Financial Restructuring and Recovery Plan, incorporating, a liquidity management mechanism for VRA, Electricity Company of Ghana (ECG), Northern Electricity Department (NED) and the BDCse.ensure that there is sufficient Reserve Margin - the safety cushion we need to prevent blackouts - to ensure the stability of the systemf.build solar parks in the northern part of the country to deploy utility scale solar photovoltaic systems. To achieve this, we will provide investment tax credits to owners of commercial, industrial, and utility scale solar photovoltaic (PV) and wind power systems to take a one-time tax credit of qualified installed costs, andg.ensure local supply of solar panels to meet the requirement of our policy proposals, by establishing a Renewable Energy Industrial Zone where the private sector will be supported to build factories for the production and assembling of the full components of solar power systems.New Patriotic Party (NPP) • HIGHLIGHTS of Manifesto for Election 201614ENERGY AND PETROLEUMII.PETROLEUM SECTORIn 2007, when commercial quantities of oil and gas were discovered in the Jubilee Fields as a result of the Kufuor-led NPP government's bold and farsighted policies, many Ghanaians hoped for improved conditions of living through the transformative effect of oil. Ghana produced first oil in 2009. Seven years on, many Ghanaians have lost hope in the promise of oil. What they see under the Mahama-led NDC government is an unrestrained move towards what is popularly called the "oil curse". What The NPP will do:The NPP commits to a transparent, accountable and efficient management of the country's petroleum resources for the benefit of all Ghanaians.In pursuant of this, the NPP will:a.improve transparency in the management of our oil and gas resources. Our commitment to passing the Right to Information Bill will further enhance transparency in the oil and gas sector b.in collaboration with the private sector, accelerate oil exploration in the Voltaian Basin (Northern, Volta, Ashanti, Eastern, and Brong Ahafo), as well as in the Keta and Accra Basins to enhance Ghana's potential for increasing oil and gas production and to build these areas into industrial growth polesc.develop, in collaboration with the private sector, Western Region into a regional oil services hub with a first class port facility, as well as positioning it as an efficient centre for back-office support for the oil industry in the West African region, including the relocation of the headquarters of GNPC to the region d.aggressively invest in education and skills enhancement of Ghanaians to manage the oil and gas sector under an "Accelerated Oil Capacity Development Programme" e.support the growth of local competition by redeeming government obligations to the BDCsf.address macroeconomic instability to ensure the effective implementation of the petroleum price deregulation policyIII.PETROLEUM REVENUE MANAGEMENTi.review and further amend the Petroleum Revenue Management Act 2011 (Act 815) to support investment of revenue from oil in high-impact strategic social and economic infrastructure ii.between 2017 and 2020, primarily allocate revenue from oil to infrastructure, health, education and agricultureiii.leverage oil revenue to complete the Accra-Kumasi-Paga rail line New Patriotic Party (NPP) • HIGHLIGHTS of Manifesto for Election 201615ENERGY AND PETROLEUM

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