Reduce consumer goods prices now - SACP
The South African Communist Party calls for a reduction in consumer goods prices.
In its 2015 January 8th Statement the African National Congress correctly states that:
"The price of oil is unpredictable and the recent drop in the price is an important development. As long as the oil price remains low, the ANC calls for businesses to pass on the benefits to our people" (10 January 2015).
The SACP reiterates its support for this profound statement, which takes into account the plight of the workers and the poor. The SACP is disappointed that this clarion call fell on deaf ears in the private sector which dominates our economy. There has been absolutely nothing done since then, even after a further drop in the price of fuel due to the declining price of oil.
In sharp contrast, the general movement of inflation in our economy shows that there is a close correlation between fuel and consumer goods price increases. In other words, the private sector has increased the prices of consumer goods mostly when the price of fuel increased - but when the price of fuel decreased the private sector has not reduced consumer goods prices. This exploitation of our people, the majority of whom are the workers and the poor, by the bosses who make super profits must come to an end!
The Competition Commission must deal with unfair price settings and not just focus on the so-called price fixing and collusion. To the extent its mandate is inappropriate, it must be revised to accommodate this strategic imperative. Otherwise the state must find a way of intervening through new regulatory measures and more appropriate institutional mechanism. If it is fair for Eskom to apply for and justify electricity tariff hikes, then it should also be fair to introduce accountability for price increases on other consumer goods to root out unfair pricing.
This is even urgent in the light of the latest Statistics South Africa's release of 3 February 2015 which shows that about 54%, more than half of our population, lives in poverty. This includes those who live in extreme poverty, defined by Stats SA as comprising of people who can only afford a very minimal basket of food and nothing, nothing else. Private monopoly capital and its dominance in our economy is directly responsible for these extreme levels of poverty and inequality.
It is also deeply disturbing, though not surprising, that the media, which often prides itself of speaking truth to power, has been silent about this capitalist pillaging of consumers by corporate greed. "Speaking truth to power" for the media means only attacking government while being loudly silent about corporate power and greed. This is indeed shameful in the face of the persisting crises of poverty, unemployment and inequality in our country.
Statement issued by the SACP, February 10 2015
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