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'Nationalisation will save rich'

Dec 07 2009 07:28 James Brent-Styan

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Johannesburg - Those behind the debate on the nationalisation of mines are simply seeking deliverance from their own financial predicaments in the wake of the economic crisis.

This is according to Jeremy Cronin, deputy minister of transport.

Cronin, who is also the deputy secretary-general of the South African Communist Party, says the economic crisis was particularly hard on the mining industry.

People who acquired black economic empowerment stakes in mines lost a great deal of money in the downturn. If government were to nationalise the mines this would effectively present them with financial rescue packages, much like the bail-out packages given to banks overseas.

Cronin says that instead of giving financial hand-outs, government decided rather to invest in infrastructural projects. Government and the SACP, he explains, are not against nationalisation - and this debate is important - but one has to ask whether nationalisation of the mines is really a priority.

- Sake24.com

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

 
 
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