Cabinet warns on 2010 price hikes

2010-03-11 13:26

CABINET has warned of possible action against businesses unduly inflating their prices ahead of the 2010 Fifa World Cup.

Cabinet is concerned about the “ill-advised move” by some business establishments to increase their prices ahead of the 2010 Fifa World Cup in anticipation of making “mega-profits”, government spokesman Themba Maseko said today.

Briefing the media following Cabinet’s regular meeting yesterday, he said these moves should be discouraged at all costs, as they had the potential to discourage many soccer fans from attending the tournament.

This would have a negative impact on future tourism in the country.

“Government calls on all South Africans to resist the temptation to unduly inflate their prices during the 2010 Fifa World Cup.”

Tourism Minister Marthinus van Schalkwyk had commissioned a survey to look at the pricing structure in the sector ahead of the cup.

This study would identify the extent of the problem and make recommendations about possible steps that could be taken in this regard.

A report would be submitted to Cabinet shortly, Maseko said.

Speaking at the same briefing, Trade and Industry Minister Rob Davies spelled out Cabinet’s attitude on business inflating prices in anticipation of the event.

“We’re asking people to think long-term. If there are cases of price collusion by groups that are contrary to the Competition Act, rest assured we will be following up on those,” he said.

Finance Minister Pravin Gordhan told journalists the message was a simple one.

“All we’re saying to South Africans is: Be reasonable, be sensitive to the visitors who are coming to this country, don’t try and do what the rest of the world has done and engage in short-term gain and you have long-term losses.

“That’s the usual business practices . . . that gets us into trouble. If we want 2010 to be a greater success . . . can we all, as South Africans, be clear that we’re going to be friendly, welcoming people, hospitable, and charge a fair price.

“Sending a signal that says we’re trying to exploit people is not the right signal at this point in time, when you want foreigners to actually come to this country. It’s a simple message,” he said.


Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.