We Will Not Protect Local Businesses - Pelpuo

The Minister of State at the Presidency in charge of Public Private Partnership, Rashid Pelpuo has reiterated government will not protect local businesses from foreign competition. Private Sector players have complained about the influx of foreign companies into the country which is reportedly stifling the growth and survival of indigenous businesses, either due result of competition or pricing. Mr. Pelpuo speaking on the Citi Breakfast Show on Friday said allowing competition will promote an efficient, robust and vibrant local industry and that the local companies step up their game. �Government is not in the mood, and we can make laws to prevent other companies from coming into the country to provide goods and services� According to him, government can only support local companies by �supporting them to be efficient, to be strong and to be viable. It is out of this now that we would be making laws setting up barriers and tariffs to prevent companies from coming in, so your companies exist to produce substandard goods and cannot compete beyond the shores of Ghana.� The sector Minister insisted: �it is important that you strengthen the companies by the things they need; the environment they need to operate; the capital they need to operate with, you give it to them; the personnel they need; the technology transfer they need by linking them to other companies, so that they can stand strong and be able to compete beyond the shores of Ghana.� �It is unacceptable for you now to setup those kinds of barriers or make the laws that will say, for example, if Unilever were to be an offshore company, then it should not come to Ghana so that we can let somebody produce the same kind of goods. Then in the end, you will find that, that company is only short-lived because it can�t compete beyond the shores of Ghana and it can be swept away by wind,� he added. But former Chief Executive Officer of GIPC, Robert Ahomka Lindsay disagreed with the Minister�s submission saying, �the reality our governments are set up to help us. I think that is the bottom line. We vote for our government to make sure they put policies and put activities in place that support Ghanaians.� He continued saying, �we know they do that in an environment where they do have international obligations, but the primary purpose is to support Ghana. We also know that every part of the world, every government in one form or the other has policies that support local businesses. Whether it is the agriculture policy in the Europe which is huge to make sure the farmers do not get ran over; Whether it is the restriction of trading in India, which says you will not come in to do XYZ. Whether is the airline industry in Canada- you cannot own more than 20%. Whether you [are] in a situation of China where practically certain sectors are grown.� Mr. Lindsay added: �every government in one form or another tries its best provide policies and initiatives that will support and grow the businesses while at the same time not to step on the foot of the WTO other obligations. But it is clear the primary objective of every government is to work for its people, not foreigners�.