Solidarity expresses its concern over Expropriation Bill

19 May 2016

Trade union Solidarity today cautioned that expropriation would not offer any solution to the country’s economy, poor growth rates and poverty. This comes after the National Council of Provinces yesterday adopted the Expropriation Bill.

Gerhard van Onselen, economic researcher at the Solidarity Research Institute (SRI), is of the opinion that while government contends that expropriation is needed to promote, among other things, infrastructure development in the public interest, the South African economy can ill afford a continuation of a flawed policy on property. 

“Ultimately, a national expropriation policy will only increase unemployment and poverty. Security of property rights forms the cornerstone of economic growth that enables real economic progress and prosperity. Arbitrary expropriation which is difficult to oppose, would simply mean the risk to assets would increase and investment would decrease,” Van Onselen warned.

Van Onselen also said that a national policy which seeks to find the solution to poverty and unemployment in expropriation is an extremely dangerous blunder. “Expropriation in whatever form remains a violation of property rights. If at all allowed, it should be done through court processes only and not through decisions by officials,” Van Onselen said.

“Unfortunately, it seems as if the scope of the Expropriation Bill is to seek solutions through interference strategies which have not been successfully implemented anywhere in the world and which only resulted in poverty and misery,” Van Onselen added.

Issued by Gerhard van Onselen, Economic researcher: Solidarity Research Institute (SRI), 19 May 2016