Thursday, September 4, 2008

Ghana Printers

THE Ghana Printers & Paper Converters Association (GPPCA) has petitioned the Ministry of Education Science and Sports (MOESS) to save their industry from unfair policy implementation and competition from foreign printing houses.
The association requested the ministry to initiate steps to review the huge tax differences between foreign printed books and locally produced books by extending the benefits under the United Nations Educational Scientific and Cultural Organisation (UNESCO) Convention to local printers as well.
Other issues concerning the viability of the printing industry in Ghana were also raised when some members of the association paid a courtesy call on the Minister for Education Science and Sports, Professor Dominic Fobih, at the Ministries in Accra last Thursday.
They contended that local printers had to pay 32.5 per cent tax on inputs for book production and then borrowed funds at over 25 per cent interest from banks to pay these taxes up-front whilst foreign books imported into the country did not attract any custom duties and taxes.
They further noted that the ministry appeared to have violated the provision of the government’s Free and Compulsory Universal Basic Education (FCUBE) Text Book Development Policy, which stipulated that 60 per cent of the books should be produced locally.
Some of the members complained that the government again extended additional protection to foreign printers by infringing on its own Act 589 (200) of the Protection Against Unfair Competition Act, 2000 Section 6 (2) and the UNESCO Convention.
In view of that, Mr James Appiah-Berko, President of GPPCA, said it was clear that there was no way local printers could compete favourably with imported books if even the latest sophisticated digital book production machine was installed in the country.
He said the foreign printers operating under free zone conditions were specially established as export-based printing houses and believed that a lot of tax incentives for free zone enterprises were used to write down the unit prices of books quoted by foreign printers in competitive bidding.
He cited an instance in 2005 when all the textbooks ordered by the ministry through both local and foreign publishers were virtually imported from overseas.
Some of the allegations levelled against the association, he noted, were lack of capacity, low quality products and higher prices, which, according to him, had been mitigated quite reasonably.
Mr Appiah-Berko said it was now an open secret that there were over 15 world-class high-volume press houses in Ghana, as well as substantial large medium-sized press houses that could compete favourably in terms of quality.
“If the printing industry is to be sustained and grow, then the ministries of Education and Sports, Trade and Industries and Finance and Economic Planning must take a critical look at the role printing plays in the job and wealth creation,” he stated.
The Executive Director for the Ghana Book Development Council, Professor S. Boateng, stressed the need to engage all stakeholders in the industry to prevent further confrontation on the matter.
Prof. Boateng said he believed that the policy had been geared towards favouring foreign companies and there was the need to take a critical look at the policy which had been in operation for almost eight years now, to suit local companies.
Prof. Fobih said his ministry would set up a committee to look into the matter and review all the concerns raised by the association.

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