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General News of Tuesday, 7 June 2011

Source: GNA

Government urged to enforce Rent Act

Accra, June 7, GNA - The Council of Indigenous Business Association (CIBA)made up of small business enterprises on Tuesday appealed to the government to urgently enforce the Rent Act (PNDC Law 138) which enjoins landlords not to collect rent advance exceeding six months.

This, according to Mr Ralph Ameyaw, Executive Director of CIBA, would enable members reduce the amount of money they had to pay to landlords so that they could have enough to start and expand their businesses.

Mr Ameyaw, who was speaking on Tuesday at the launch of a four-day sensitisation programme organized by CIBA for members, urged government to also streamline the Act in order to ensure that issues which did not favour members were addressed.

The workshop was on the theme 93Advocacy Action for Revision and Enforcement of Rent Laws".

He said businesses of CIBA were in danger due to the high amount of money paid to landlords and landladies for renting their premises and urged government to periodically review the Act to make it relevant to the business environment.

"Members who do not have buildings of their own are now required to make two to 10 years of advance payment which is seriously having negative effect on our businesses.

"How can members expand their businesses and buy equipment when they are required to make huge payments to landowners? It is worrisome," Mr Ameyaw said.

Mr Ameyaw appealed to the government to give the informal sector the needed support as it constitute about 70 percent of the employed population in the country.

He called on the Ministries of Works and Housing, Justice and Attorney-General's Department and Trade and Industries to discharge their duties appropriately in order to ensure that the work of entrepreneurs was not hampered.

He urged the banks to also review their policies on collaterals as members most of the times did not meet their requirements.

Mr Oduro Frimpong, Programmes Coordinator, appealed to government to allocate some buildings to members for rent in its housing projects. Some of the issues to be discussed are the Business Environment,Business Advocacy and Government Regulations and the Interventions of BUSAC Fund in Private Sector Business in Ghana.

The workshop which was sponsored by the BUSAC Fund attracted 20 executive members of the Ghana National Association of Barbers, Ghana National Association of Tailors and Seamstresses, Ghana National Association of Traditional Healers and the National Drinking Bar Operators Association.