News24

ANCYL rejects nationalisation report

2012-02-16 19:52

Johannesburg - The ANC Youth League has rejected the research report on the nationalisation of mines, its deputy president Ronald Lamola said on Thursday.

"It [the report] did not do what the NGC [ANC national general council] said should be done," Lamola told reporters at Luthuli House in Johannesburg.

"We will soon compile concrete facts and data on how the many countries that have nationalised their strategic sectors of the economy generate additional income into the fiscus and utilise it for the development of the people."

The report on possible reform of the mining sector was presented to the African National Congress's national executive committee at its meeting in Pretoria earlier this month.

The City Press newspaper published details of the report after claiming to have seen it. It said there were two proposals for new mining taxes. One was a 50% tax on the sale of mining rights to prevent speculation.

The other was a tax of up to 50% on so-called "super profits", defined as anything more than a 22% return on investment.

The report proposes a reduction in the royalty tax from 4% to 1%.

Mineral governance could be overseen by a new "super ministry", namely the combined departments of trade and industry, public enterprises, mineral resources, and science and technology.

According to the newspaper, the task team recommended that the ANC investigate state control of mines "in terms of rent share, growth and development, and make targeted interventions to achieve such outcomes".

The team visited 13 countries to investigate mining models and best practices that would be viable for South Africa.

Lamola said: "The research report on the state intervention in the minerals sector... does not in any way respond to the ideological and political directive of the ANC national general council."

He said that according to the resolution from the ANC's NGC there was "greater consensus" within the party on the nationalisation of mines and other strategic sectors of the economy.

ANCYL treasurer general Pule Mabe on Thursday said the league would gather more facts so it could argue its case for the nationalisation of mines at the ANC's policy conference in June.

Comments
  • Paulus - 2012-02-16 20:17

    Please ANCYL, start your own political party. That will be the best thing that can happen to this country right now. Divorce from the mother body, and go it alone. It is not like you are listening to anything they tell you anyway.

  • ThandaMzansi - 2012-02-16 20:19

    The ANCYL seems to have only one goal - to set things up so that when they kick the old guard out, they can steal more. Eish.

      Themba - 2012-02-16 21:14

      Taking your familys inheritance is not called stealing boet, you must go to Holland and inherite water nothing but water.

      John - 2012-02-16 23:01

      Themba has spoken Munna, Where exactly was the mine of your grandfather? For your personal information, water is very important in mining. Obviosly your family inheritance didn't mention to you that water under high presure cuts rocks.

  • Daaivark - 2012-02-16 20:19

    Yawn.

  • TheJaydedKing - 2012-02-16 20:36

    There is no way on earth they would of accepted anything other than what they wanted to hear. The entire report was a pile of crap, they had no intention of listening to it in the first place. Here comes the bananas for our republic.

  • mbossenger - 2012-02-16 20:38

    So because the findings don't support their view, they reject the report? Could someone please help me with 2 issues I have regarding nationalisation: 1. Presumably the government would have to either buy a majority share in the mines or "sieze" the shares? Where would the money to buy the shares come from? Would we just be taxed more to fund the purchase? 2. How in practical terms will money be distributed to the poor and needy? I can't for the life of me see how this would work in real terms.

  • Hermann - 2012-02-16 20:41

    The tail must stop wagging the dog as it may soon be docked.

  • ISO - 2012-02-16 20:43

    ANCYL is a reject in itself!

  • Brad.Kopping - 2012-02-16 20:47

    there are no words to how i can describe this guy. if i were to express my true opinion on this forum i would most likely go to hell.

  • ronald.stilianou - 2012-02-16 21:49

    I am pulling all my shares out of the mining sector first thing tomorrow, anyone with mining shares should do the same asap. we'll fight them with the thing that hurts them the most.....money!

  • Carlo Hayes - 2012-02-17 05:55

    In countries where nationalization do work there is no corruption. So it can't an wouldn't ever work in SA!

  • andy.beak - 2012-02-17 07:43

    Getting more money into the fiscus is just a way for them to pilfer more through corruption. If you want more money available then stop corruption and wasteful expenditure. ANCYL are just tenderpreneurs like Julius, wanting to see how they can rape the budget to get rich quick.

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