• Water shortage

    Climate-related consequences are raising food prices, joblessness, crime, and instability.

  • High food prices

    Mandi Smallhorne looks beyond the weather as the cause for rising food costs.

  • Sars Wars returns

    Allan Greenblo looks at the leadership concerns around the 'Twin Peaks' regulatory model.

All data is delayed
Loading...
See More

ANC rejects nationalisation

Dec 19 2012 12:55
Reuters

Bloemfontein - The ANC has rejected calls to nationalise the country's mines, but supports a windfall "resource rent" tax on mining firms, according to a draft policy document seen by Reuters on Wednesday. 

"The state must capture an equitable share of mineral resource rents and deploy them in the interests of long-term economic growth, development and transformation," the draft of party's economic policies said. 

The "resource rental tax" is effectively a windfall levy of 50% that will kick in after investors have made a "reasonable return". As such, it is meant to leave marginal or junior operations unaffected.

The ANC also recommended increasing "the supply of coal at competitive prices with the aim of containing energy costs" but did not provide any details of how to achieve that end.

At a five-yearly conference in Bloemfontein, the party has been at pains to strike a business-friendly note after strident calls this year for radical policy shifts to help solve South Africa's myriad social problems.

The election of millionaire businessman Cyril Ramaphosa as ANC deputy president has been interpreted as favourable to investment and the economy, particularly if Ramaphosa is able to push through plans to boost long-term growth.

The ANC also said monetary policy should stick to its current inflation-targeting regime, squashing calls from the party's union and communist party allies to broaden the central bank's mandate to include jobs and growth.

The party also said the government should consider tax breaks for employers to hire young job-seekers to tackle the chronic unemployment that is fuelling unrest among the millions of blacks who have seen little improvement in their lives since the end of apartheid in 1994.

 

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

anc  |  mangaung 2012  |  mining tax  |  mining  |  nationalisation

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
44 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

SMALL BUSINESS

Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The regulation of WhatsApp and other OTTs is:

Previous results · Suggest a vote

Loading...