Fin24

ANC says no to nationalisation

2012-07-01 09:28

Johannesburg - The research report on state intervention in the mining industry (Sims) that rejects nationalisation was accepted by the ANC’s policy conference in Midrand this week.

This means that the conference said “no” to nationalisation, but certainly “yes” to the state playing a bigger role in the mining industry.

But nationalisation as a broad principle was discussed at length during an emotional debate and will probably surface again at the Mangaung conference in December.

When the conference closed on Friday evening there had however been few other indications of decisions on economic policy taken, despite hopeful expectations that the uncertainty about issues like land ownership, higher taxes for mines and compulsory mineral enrichment would be resolved.

As far as the mining industry is concerned the acceptance of the research report amounts to a no, said Enoch Godongwana, the ANC’s head of economic policy, after the closure of the Midrand conference.

It was in September 2010 that nationalisation first appeared on the agenda of the national executive meeting in Durban, he said. It had been decided that information on nationalisation in the mining industry should be obtained before a decision could be taken. A team was appointed to examine research on state involvement in the mining industry.

"The evidence presented in the research report does not indicate the inclusion of nationalisation as a policy option in our circumstances," said Godongwana.

As far as rental income (income on super profits) is concerned, it was decided that this would be collected by means of taxation instruments.

“What the instruments should be is, however, still undecided,” he added.

But the conference’s decisions will not allay concerns about ANC policy. It was a continual theme accompanying all decisions at the week’s conference that policy should be more militant and radical and that all delays in applying policy should immediately come to an end.

In his closing address which, according to sources within the conference was preceded by a debate on nationalisation, President Jacob Zuma used every possible opportunity to make it clear that greater transformation demands lie in wait for the business sector.

He quoted statistics to show that total black ownership of the JSE’s market capitalisation, 18 years after the country’s liberation, amounts to only 6.8%, and that only 16.9% of the top management of companies is black and only 25.9% of senior managers black.

One of the possible interventions envisaged is the need to create a progressive competitive policy in line with development objectives, he said.

Godongwana later said that steel prices, over which government has for years felt aggrieved, were not discussed.

Import pricing parity and finding ways for the competition authorities to counter it were discussed extensively, he said.

Coal as a strategic mineral was discussed as well.

A discussion on coal as a strategic mineral had not been proposed, but rather that the country should have adequate access to coal before the resource is exported and that it should be available at lower prices than international market prices. “We won't pay import parity prices for coal,” Godongwana stated.

The conference also had long discussions about youth unemployment. Various proposals were presented in this regard, including the creation of the job-seekers grant that Zuma mentioned at the outset and which is also noted in one of the discussion documents.

No decisions were taken about any of the proposals. What was decided, though, is the urgency. All the proposals will be discussed with youth organisations and the labour movement, including a wage subsidy, said Godongwana.

 - Sake24

For more business news in Afrikaans, go to Sake24.com.

 

Comments
  • Ian - 2012-07-01 09:38

    sorry for you ancyl, you cant steal my stuff, back to your play pen now

      Koos - 2012-07-01 12:26

      Trust the ancESTORS at your own peril.

      ditantane.kganakga - 2012-07-03 16:22

      your being mislead by the media and you are also ignorant, the fact is that nationalisation was give thumps up,only that they used terminology that will not be alarming to investors.

  • JohncarlosBiza - 2012-07-01 09:38

    Why is the state concerned with private ownership, e.g the percentage of black JSE shareholders? it shouldn't be theit problem at all who decides to own what. Next they will intervene on the demographics of certain suburbs.

      richard.stevens.31508 - 2012-07-01 11:49

      The State is concerned with private ownership because it reflects the economic and wealth disparity between blacks (black, coloured and indian) and white. 2011 population group statistics indicate: African 40 206 275 (79.5%); White 4 565 825 (9.0%); Coloured 4 539 790 (9.0%); Indian/Asian 1 274 867 (2.5%) Whites own 42% of property, blacks, indians coloured own 27%, government owned property is 31%, 83% of JSE stock market value owned by white and foreign ownership, with the debt free portion of JSE black ownership at 1.6%; Whites monthly earnings per capita R16,500p/m; Blacks R4,200 p/m. So, it needs to know private ownership of property, wealth, etc. in order to redress economic imbalances between racial groups caused by the past, Apartheid, etc..

      maxil.travianus - 2012-07-01 17:29

      @Richard - What is the portion of DEBT FREE WHITE shares on the JSE? Compare apples with apples.

      richard.stevens.31508 - 2012-07-01 17:36

      Very good question, maxil. I'll check, but I think the point is that I heard during an interview of an expert on 702 (can't remember his name but, on the midday show w/ Chris Gibbons a couple of days ago) that assets owned &/or controlled by whites is ZAR6 trillion, and blacks ZAR250 billion, illustrating the economic disparity between blacks and whites in SA.. The poor are disproportionately black, and the rich are disproportionately white, and the gap between SA rich and poor is the highest in the world...

      JohncarlosBiza - 2012-07-01 23:44

      @Richard if my neighbour has a nicer house, I learn from him how he built his house and use the skills to improve my own house. I do not demand some of his building material and that he downgrades to a house like mine to even things out. Same with asset ownership. If whites own a disproportionally high amount, black authorities should learn their tricks. Apartheid was horrible, I understand its effects well beyond what politicians condition us to know, but it does not make white prosperity a sin. It makes it an example whose good points should be followed. Revenge and justice have a thin line separating them, but the two are still different

  • peter.fraser.92754 - 2012-07-01 09:44

    Not an ANC supporter or member BUT, I must say that they are not as radical as we sometimes make them out to be. There might be a loose cannon here and there , but generally they have a clearer idea about the future than what we give them credit for. Well done ANC, you have my respect for the week. NOW,do something more positive about our country's problems whithout hammering on white/black and you will have my respect for longer,

      richard.stevens.31508 - 2012-07-01 11:53

      Peter, I'm amazed that you could actually get 65 people on this forum to agree with your comment... however spot on it is... Congratulations!!

  • jwarha.balakisa - 2012-07-01 09:57

    The government must tax these mining companies to the bone. Thy supported Boers during apartheid years.

      peter.fraser.92754 - 2012-07-01 10:07

      Listen skattebol, there are MANY mines who are controlled by our black brothers.There are MANY of our black brothers that does business with mines.There are MANY of our black brothers that works on the mines. PS...when there are no more meat on the bones.....what then ?

  • eddyb.leepan - 2012-07-01 10:03

    what about the better alternative ? unlock SA’s beneficiation potential http://www.moneyweb.co.za/mw/view/mw/en/page295025?oid=574714&sn=2009+Detail Short term plans are nec, but long term ones define our future!

  • Glyn - 2012-07-01 10:15

    Once again the anc is indecisive. Once again they are looking at ways of grabbing assets without creating them. Vote DA. Simple move, simple solution. More investment, more employment.

  • muruti.malungana - 2012-07-01 10:27

    Nationalisation of mine is a fiasco..Hw du u run mine with less experience..shame

  • muruti.malungana - 2012-07-01 10:27

    Nationalisation of mine is a fiasco..Hw du u run mine with less experience..shame

  • Philip Buys - 2012-07-01 10:48

    Chinese friends, do not care for labour ............ Maybe that is what should really happe. break the back of the trade unions.

  • millionwatts1 - 2012-07-01 11:18

    Ohk time will tell.

  • Khayoh Mfiswah - 2012-07-01 11:40

    Mmmmmmmmm bad news to the ANC Youth League. Sorry Malema n Lamola

  • fairness.iseverything - 2012-07-01 13:51

    An addict's first step to resolution is to admit addiction. I wonder how long it will take the previously oppressed masses to admit they part

  • elvis.nkoana - 2012-07-03 17:43

    @JohncarlosBiza-what if your grandparents stole the house? Will you advise your black neighbour to go stealing? maybe the reason we have property crimes is because people like you tell black folks to go stealing so they could live like whites. The South African situation has a history and context. Stop being naive and ignorant.

  • pages:
  • 1