Why is it unjust and probably corrupt?

Mantolee, as Imani’s Patrick Stephenson calls it, burdens all motorists with the cost of the negligence or misfortunes of a few and gives the profits to one private entity, with no connection between the profits and the work done. Motorists would still pay and RSML (The Zoomlion subsidiary) would still collect its profits even if they don’t have to tow a single vehicle in any given year. In other words, the scheme socializes the cost and privatizes the gain.

Why is the design flawed?

Mantolee confuses a service with a punishment. If I pay a company to tow my car to a mechanic in the event of a breakdown, that’s a service. If the government tows my broken-down car and charges me a fee to retrieve it, that’s a punishment. An insurance is a service. Is Mantolee a service or a punishment? Under the current design as I understand it, all motorists will get punished just so the government can serve a few.

A better design would encourage motorists to get that service from whomever they wish, and if they fail to do so, or if the service provider fails to deliver within a mandatory period, punish the motorists who would then punish the service provider by demanding a refund or taking his business to another. The sequence matters.

Why is it unlikely to achieve its goals?

There’s this economic theory of moral hazard that occurs when a person takes more risks because another person bears the cost of those risks. This concern is inherent in the insurance business but especially problematically so in this context.

If you are a motorist and you know that someone will tow your vehicle for free if it breaks down, you have less incentive to get it off the road in the event of a breakdown regardless of how long it takes for the tow truck to arrive. Even if you can do it quickly by yourself, wouldn’t we all prefer for someone to come and tow it for free straight to our mechanic?
On the other side, if you’re RSML, you have less incentive to go and tow a broken-down vehicle if you’ve already been paid by the State and you have no competition. Besides, you can always make plenty believable excuses—bad traffic, no drivers, wrong location, etc. etc.—if you have no competition.

How can we fix it?

Now consider the alternative world where the towing company is given the legal authority to tow the vehicle and the affected motorist must pay the towing company or risk the vehicle getting auctioned off. In that scenario, both parties would be highly motivated to get that vehicle off the road fast.

Even without mandating drivers to purchase towing insurance, as some have proposed, the market for that service would grow naturally, because people would not want to pay the higher punishment fee if the government is forced to tow the vehicle.

To get to this promised land, the government simply must decentralize and auction the authority to tow vehicles at a pre-determined price. If RSML can do this more effectively and efficiently, it would very likely come out tops in the bid for most Districts. In other markets, other players would play. If the parent Zoomlion decides to acquire those other players over time, that’s fine as long as it fits within antitrust laws governing the sector.

Government would then simply play referee by ensuring that the towing companies tow vehicles within laid-down rules that government should set. That would include having clear signs for where you can park/can’t park, etc.

It’s not complicated.

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By: @Kobina

The post The case against the towing levy, and a way forward [Article] appeared first on Citi 97.3 FM - Relevant Radio. Always.

The initiative forms part of commitment the sector Minister, Kwasi Amoako Attah pledged during his vetting to reserve at least 50 percent quota in all contracts in respect of manning toll booths for PWDs.

In his address, Kwasi Amoako Attah said, 3 percent of the nation’s population according to the 2010 Housing Population Census, represents PWDs, hence the need for government to create opportunities for them to contribute to the economy.

He added that, the 50 percent quota reserved for persons living with disability, represents a total of 200 slots, but the initiative will commence with about 80 PWDs across the nation.

The beneficiaries of the initiative he stressed, have undergone essential skills training which has equipped them not just for the manning of the toll booths, but other jobs.

He added that, the initiative will help empower PWDs by “giving effect to the fact that disability is not inability. My ministry is open to harnessing the skills of PWDs regardless of their physical conditions in executing our agenda. This project therefore also offers a lead in the implementation of that manifesto commitment to PWDs by first setting the example.’’

The Minister said, with the exception of Ngleshie Amanfrom, Accra Plaza, and Tema Plaza and the Amasaman Booths, which are automated and are currently under contract, they intend to spread the 200 persons across the country.

According to him, plans are underway to automate the other booths and in the process, the beneficiaries will be trained to man them.

President of the Ghana Federation for Disability Organizations (GFD), Yaw Ofori Debrah commended government for the initiative.

He described it as historic for PWDs considering that successive governments paid lip service to their plight.

“PWDs in the past pushed for some quota of jobs; but it yielded no results and so we will commend the Nana Addo administration for this bold initiative. Over 250 applications were received and out of that number, 172 availed themselves for interviews and out of that number, 72 were selected for the first phase of the project.”

“The Ministry of Roads and Highways has directed the federation to re-open for application and training to ensure that the two hundred representing the 50 percent quota is achieved”

“Today marks a very historic event for PWDS. Our long cherished dream has been fulfilled through the efforts of the Roads and Highways Minister. On behalf of the federation, we express our utmost appreciation to the government of Nana Addo and his cabinet for ensuring that PWDs are given a pride of place in Ghana…We are impressed” he said.

The Chief Executive Officer (CEO) of the Ghana Highway Authority, Mr. Victor Owusu, said payment for the beneficiaries will be prompt and their social security will also be catered for.

He assured the federation of his outfit’s support in the management of the initiative. Some beneficiaries of the initiative expressed their gratitude to government and promised to work hard for more opportunities to come their way.

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By: Philip Nii Lartey/citifmonline.com/Ghana

The post Toll booth job for PWDs; gov’t kicks off with 80 people appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Conference in a communique signed by its General Secretary, Rev. Kwesi Deh, said road tolls should be raised to at least the level of USD1 per car across the country.

“Raise the tolls, at least to the level of USD1 per car. Even Zimbabwe, in its financial difficulty, charges $1 per car as toll rate. g. Create an office and let the local dwellers cast the concrete: Use the people that live in the towns and villages, along that stretch of road, to cast concrete along that stretch,” he said.

The Conference also called for the construction of what it called “international standard” toll booths whose revenue will also be used to directly finance road projects.

“Build the road network by using concrete roads. 10 inches of concrete can be cast, with the width of 3 lanes (12 meters wide), for several miles. The Tema motorway is an example of a concrete road that has served Ghana for decades…Let Ghanaian roads be covered with multiple international-standard tollbooths that do not cause traffic. These tollbooths will be used to directly finance roads. Perhaps, every 40 to 50km should have a tollbooth,” it said.

The construction of these toll booths, according to the Conference, can effectively be done by naming a tollbooth by “the stretch of road that it is to finance.”

“For instance, several toll booths can be created on the Accra – Kumasi Highway as follows: Achimota – Nsawam toll booth (approx. 28.2km); Nsawam – Suhum toll booth (approx. 30km);  Suhum – Nkawkaw toll booth (approx. 77km); Nkawkaw –Konongo toll booth (81.4km); Konongo to Tech Junction toll booth (77km).”

The Conference believes the efficient management of these tollbooths will encourage Ghanaians to pay more for road tolls.

“Demonstrate a competent management of the tolls received from the different tollbooths. We have had toll booths like the Tema, Beposo and Weija toll booths. When people see the tolls well-managed, they will be prepared to pay even more.”

The Ghana Charismatic Bishops’ Conference which was founded by the Founder of Lighthouse Chapel International, Bishop Dag Heward Mills, and is chaired by Bishop Kwame Yirenkyi Ampofo, is made up of senior clergy who have been consecrated as Bishops.

The Conference has Bishops with their seats, comprising of a cathedral, and an office block in every region of Ghana.

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By: Marian Ansah/citifmonline.com/Ghana
Follow @EfeAnsah

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