Nationalisation debate damaging - DA

2011-08-09 22:22

kalahari.com

  • The Da Vinci Method
    Break Out & Express Your Fire. Discover and master the fiery temperament shared by great leaders. Now R311.00
    buy now
Johannesburg - The "mindless calls" for nationalisation irreparably damaged South Africa's attractiveness as an investment destination amidst global economic turmoil, the Democratic Alliance said on Tuesday.

"Government must be alert to the minefield of slowing global growth, falling stock markets and the real possibility of sovereign debt defaults in Europe and respond appropriately by ensuring that our public finances can withstand the increasing pressure," said finance spokesperson Dion George in a statement.

Government could do this by halting inefficient spending in its ranks and "tenderpreneurial scams" which rob the poorest members of society.

"It needs to be clear on the fact that when an economy slows, tax revenues do too and, given that we are already in deficit, there is very little space for manoeuvre. Under these circumstances, economic policies need to be coherent and focused on building, not breaking down, our economic prospects."

George said South Africa had more space to "manoeuvre" than other economies on the brink of default.

He said the country needed to reconsider the structure of the economy - making it more inclusive for all South Africans and decide how best to take advantage of its unique position in the global economy.

The troubling events globally needed a "steady response" from the South African government to prevent a "deepening economic crisis".

The government had to consider the fact that South Africa was an emerging destination with strong infrastructure and a potential gateway to almost a billion people on the African continent.

Investors need confidence

"It remains possible for South Africa to position itself as an attractive destination for long term investment capital, but we need to be desirable to extremely nervous investors. Investors need confidence that our economy will grow.

"To determine medium to long term growth potential, they consider predictive indicators such as potential future economic activity, usually driven by a well educated work force within an environment that facilitates the economic activity that generates growth.

"Under these circumstances wealth increases and unemployment decreases," George said.

Before the current economic crisis, South Africa's growth had already slowed .

"Our trajectory lagged behind those of comparable economies and we missed the commodities boom because government's economic policies acted as a barrier rather than a boost.

"The impact of the initial crisis, the precarious jobless recovery and now a potential double dip recession in Western economies is severely detrimental to our economic outlook."

George's comments followed Standard and Poor's downgrading its credit rating of US government debt from AAA to AA+.

The move, he said, had speeded up an "already steady plunge" in stock market prices around the world.

He said under current conditions, there were concerns that a double dip recession was likely in developed economies such as the US, the UK and in Europe.

- SAPA

Read more on:    da  |  dion george  |  economy
NEXT ON NEWS24X

SHARE:

Read News24’s Comments Policy

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
180 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 
Traffic
Lottery
 
  • Tuesday Delft - 11:47 AM
    Road name: R300 Southbound
    ACCIDENT in the right lane before the Hindle Road exit
  • Tuesday Kuils River - 11:39 AM
    Road name: Polkadraai Road Eastbound
    ROADWORKS between the R102 Van Riebeeck Road and the R310 Baden Powell Drive exit - HEAVY DELAYS
 
More traffic reports...
 

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Deal of the Week!

Get bestselling John Green novels now just R99 each! Hurry and get yours while stocks last. Shop here.

Mind blowing deals on beauty & fragrances

Save up to 30% off beauty and fragrances. Offer valid while stocks last. Shop now!

Up to 50% off hair care products!

Save up to 50% on professional hair care products at kalahari.com. Offer valid while stocks last. Shop now!

30% off academic books

Score a mind blowing 30% off academic books! Offer valid while stocks last. Shop now!

Mind blowing deals on electronics!

Save up to 35% on electronics. Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Nokia N9

The Nokia N9 has a beautiful one-piece, unibody design where...

From R2899.00

I'm shopping for:

Horoscopes
Aquarius
Aquarius

Something may come up to alert you of your security needs. It may be that you need to create a better structure for your finances...read more

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.