There are three fundamental problems with the Report of the High-Level Panel on the Assessment of Key Legislation and Acceleration of Fundamental Change released last week.
The first is that the panel cannot bring itself to jettison the old shibboleth of blaming colonialism and apartheid for the country's major ills of poverty, inequality, and unemployment. The second is its view that these ills have come about "despite" the efforts of the government, when they might be the result of these efforts. The third is that it is more concerned with redistributing than with generating wealth. That said, the report at least recommends one excellent change to labour legislation.
Chaired by Kgalema Motlanthe, a former president, the panel recognises that legislation might have "unintended consequences". It even recognises that "overregulation and bureaucratisation" might be problems. But this does not stop it proposing the introduction of a "certificate of need" to determine where newly certified medical specialists may practise or new pharmacies may be established, or recommending measures "to deepen existing taxes on wealth and to introduce new ones".
Since the African National Congress came to power in 1994, unemployment (on the expanded definition) has risen from 3.67 million to 9.30 million. To issue a report 23 years later blaming colonialism and apartheid for this state of affairs no doubt satisfies the needs of political correctness, but it is irrational.
However, as part of its remedy for tackling unemployment the panel does at least propose reducing the powers of bargaining councils under the Labour Relations Act. The act empowers these councils to "force" small businesses to abide by wage agreements struck by large employers and large unions. The panel wants these powers removed.
It also proposes the "setting of a separate wage" below the statutory minimum for smaller businesses, longer-term unemployed, and "first-time inexperienced employees". However, any beneficial effect of this proposal will be nullified by endless haggling over what the separate wage should be.