Many people could lose their jobs in the manufacturing sector if government fails to reduce the 125 percent increase in utility tariffs, the Association of Ghana Industries (AGI) has warned. The Public Utilities Regulatory Commission (PURC) announced an 89 and 36 percent increase in utility tariffs early this month. Businesses in the manufacturing and mining sectors have expressed concern about the upward adjustment. And the AGI, at an emergency national council meeting to respond to the increases, warned of a possible layoff of workers and a halt in manufacturing activities as a result of the astronomical increases in the tariffs. According to the mouth piece of industries, the increases would definitely worsen the already high cost of production. Nana Owusu Afari told BUSINESS GUIDE that “Ghanaian industries are being crowded out. We are not happy at all since what we are doing will encourage goods made outside the country to be dumped on the Ghanaian market.” Dr. George Dawson Amoah, AGI Vice President, told CITI FM that there was the need for a downward review of the tariffs to save the industry from collapse. Dr. Dawson Amoah said the AGI would advise itself if government fails to listen to them. The Ghana Chamber of Mines, a member of the Private Enterprises Foundation, has also expressed worry over the new tariffs, saying they are very expensive and would affect the cost of mining operations. According to the 2010 Budget statement, growth in the industry sector lagged behind the two major sectors of the economy, recording 3.8 percent in 2009 as compared with 8.09 percent in 2008. Source: Business Guide/Ghana