Nationalisation proposals do little to address the actual issues
South Africa is in dire need of creative and informed ideas to address our current economic problems. The proposal made by ANCYL president Julius Malema regarding the nationalisation of mines does little to address the real concerns facing the country - concerns that must be addressed if we are to create jobs and overcome a recession. They are reflective of a radical organisation that has far too much weight when it comes to influencing economic policy.
If the ANCYL, the Young Communist League and COSATU really want to help South Africa become a prosperous country for all its citizens they would do well to turn their attention to the following three key issues:
- Regulatory burdens facing the industry
- A weakening infrastructure
- Fostering an investor friendly environment
The unrealistic proposal for nationalisation only proves the complete lack of intellectual depth of the ANCYL regarding the matter and the need to refocus attention on issues of actual importance. The relatively simply goals of addressing these constraints in the mining sector in order to attract foreign capital should receive all of the attention in the ongoing debate.
Regulatory burdens and a weakening infrastructure are inhibiting the efficient functioning of mines, which ultimately translates to fewer employment opportunities. These problems will continue to exist regardless of ownership. The global economic downturn would in fact require more effort in fostering an investor friendly environment, since foreign capital is necessary to develop new mining sites.
The DA welcomes any debate on ways to further the growth and competitiveness of South African industry in general and especially the mining sector. However, calls for the nationalisation of privately owned mines ignore policy considerations of far greater importance.
Statement issued by Hendrik Schmidt MP, Democratic Alliance shadow minister of mining, July 6 2009
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