Price control task force is a political gimmick - Asaga

The Minority Spokesman on Finance, Moses Asaga has described as futile and an act of desperation, government?s decision to set up a Price Control Task Force. Speaking in an exclusive interview in Parliament House, Asaga said the days of price controls were long gone and competition and the effects of government fiscal policy now determined the prices of goods and services.

He said the setting up of the task force was unnecessary and would only lead to a waste of the taxpayer?s resources ?on a futile wild goose chase?.

Asaga explained that the current inflationary trend being experienced in the cost of goods and services was the result of the steep depreciation in the value of the cedi against the Euro, Pound Sterling and CFA Franc particularly which were currencies used by Ghana?s major trading partners.

The Minority Spokesman recalled that last year the cedi fell by 1 7% against the Pound Sterling and by 1 9% against the Euro.

He said the depreciation in value of the cedi also affected duties and VAT on imported raw materials and finished goods since these import taxes were quoted in foreign currency and importers were required to pay the cedi equivalent. ?Depreciation of the cedi therefore implies increased import taxes in cedi terms?.

He said why anyone would want to set up a Task Force -to study what was so elementary and obvious beat any rational imagination. Asaga said the decision to set up the price control task force was therefore either a public relations gimmick or evidence of an economic management team that had reached its wit?s end as to how to improve the quality of the life of the average Ghanaian.