The Trades Union Congress (TUC) has condemned government’s withdrawal of fuel subsidies, saying the absolute withdrawal will lead to fuel price hikes that will have an attendant ripple effect on the economy. It said the TUC is not against price increases on petroleum products per se, but rather, "what we have been protesting against is the total removal of subsidies which leads to hikes in fuel prices, with ripple effects throughout the economy." The objection was contained in the TUC's proposals to the government in the 2013 Budget Statement and Economic Policy, whose release coincided with the withdrawal of some subsidies on petroleum products. The Secretary General of the TUC, Mr Kofi Asamoah, told the Daily Graphic that the submissions in the proposal, though coincidental to the fuel price hikes, were the general position of the labour union. He noted, however, that the specific increases announced on Saturday, February 16, 2013 would be discussed over the course of the week. The TUC noted in its proposals that subsidies are an important tool for curbing the spillover effects petroleum prices have on a wide range of goods and services, saying subsidies are used by all governments, including the current one, to mitigate the negative effects of petroleum price hikes on the vast majority of Ghanaians who earn little or no income. It therefore urged the government to take into account the needs of the millions of Ghanaians living in poverty. "We would like to serve notice that the magnitude of fuel price adjustments will inform our demands for pay increase for the working people of Ghana. We need genuine consultations on fuel pricing in Ghana," it said. The list of proposals, titled, "It is Time for Genuine Social Dialogue on Economic Policy in Ghana", commended the government on inviting suggestions and incorporating some of them into its budget, but also noted the absence of genuine dialogue on economic policy between the government and stakeholders, including unions and employers. The TUC said the fundamental nature of the country's economic policy has not changed in the past three decades despite resistance from trade unions and other civil society organisations. "For example, governments, over the years, have continued to implement inflation-targeting as a core macroeconomic policy in the name of stability. We have, on various occasions, criticised the inflation-targeting policy because that policy framework treats job creation as a residual outcome of macroeconomic policy," it said. The TUC holds the position that, "the number one policy challenge has to do with employment creation. That is why in all our submissions we propose to government to genuinely involve the key social partners in employment policy-making and implementation." The proposals focused on employment, as in previous submissions, but also covered other key economic policy areas with direct and indirect impact on employment creation, such as economic policy, support for the private sector, trade policy, natural resource management and taxation, as well as public sector pay. On economic policy, the TUC said it did not "believe that structural transformation of our economy can be achieved when government's economic policy is stuck perpetually in a state of the so-called 'Stabilisation and Fiscal Consolidation'." It suggested that the inflation-targeting framework should be abandoned for the "reasonably low and stable inflation" that is currently required by the country's economic situation, explaining that single digit inflation is not necessary. On the private sector, the TUC asked the government to reappraise its role in the private sector development initiative, suggesting further that it take charge of the domestic private sector and see that it is firmly established to promote long-term growth and employment. It cited the exorbitant interest rates that banks charge as another challenge and urged the government to intervene directly and strategically to ensure that the banks do not hold the rest of the country ransom. On trade policy, the TUC asked the government to use safeguards to protect jobs in Ghana, explaining that the international trading system, as constraining as it might appear, has enough safeguards to shield fledgling industries in countries like Ghana from unsustainable competition. It asked the government to be bold in its management of natural resources and not buckle under pressure from mining companies. On public sector pay, the TUC took strong exception to comments by government officials characterising public sector pay as windfall for undeserving public sector workers. "The way public officials portray public sector pay in the media gives the impression that the state does not derive any service from the public service and that payment to them is an unnecessary drain on the national purse. We believe that this is a deliberate effort on the part of the government to whip up public sentiments against public sector workers," it noted. It pledged its support for the ongoing public sector pay reform agenda, saying it would work to ensure that workers receive their fair share of national income.