Steel firms want law to enforce ban on scrap exports

STAKEHOLDERS in the steel manufacturing industry are calling for the speedy passage of a draft policy into law to enforce the ban on the exportation of ferrous scrap metals from the country.

Work on the draft regulation, which has been finalised by the Attorney-General’s (A-G’s) Department for onward submission by the sector ministry to Parliament for consideration, was meant to strengthen the administrative ban that has been in place since 2004.

According to the Union Chairman of Tema Steel, Mr Michael Tetteh Mortu, who spoke on behalf of the five steel companies operating in the Tema metropolis, the illegal exportation of ferrous scraps continued to have a toll on the ailing industry, owing to the fact that there was no clear protection regime to halt the practice.

He said Ghana, in 2010 alone, posted a loss of GH¢60,512,100 through the illegal exportation of about 110,022 metric tonnes of ferrous scraps.

That, he said, had prompted local steel companies to resort to the use of light materials, resulting in a shortfall in production.

Mr Mortu also said some operators in the industry had resorted to the importation of aluminium coils which they declared as raw materials meant for the manufacture of nails to attract lesser tax.

He also blamed the infiltration of the local steel market by persons who, though had manufacturing plants, undertook the importation of finished products which they declared at the Tema Port as raw materials, with a lower rate of duty paid.

He said  although in March this year the top hierarchy of the Customs Division of the Ghana Revenue Authority (GRA)  issued a directive to all commanders at all ports and shipment stations to supervise the loading of containers with scrap metals being  exported, those instructions were being defied.

“The Tema Steel Company, Ferro Fabrik, Western Steel, Special Steel and Sentuo Limited currently employ a scanty workforce of about 3,000 following the decline in operation, as against the over 10,000 workforce in the past,” Mr Mortu lamented, adding that the union was of the view that putting legislation in place by criminalising scrap export would ensure a protection regime for local industries.

The Director of Small and Medium-Scale Enterprises at the Ministry of Trade, Mr Johnson Adasi, said the Trade Ministry had, since Wednesday, August 1, 2012, presented the draft policy to the A-G’s outfit after the necessary corrections and challenges had been addressed.

That, he said, was in line with the ministry’s quest to ensure that the policy was laid in Parliament before the house went on recess.

SOURCE: Della Russel Ocloo, Daily Graphic, Sat Aug 4, 2012