Government undemining competition - DA

2011-10-05 22:08

Johannesburg - Cabinet ministers were driving an ideological agenda against Walmart, the Democratic Alliance said on Wednesday.

It claimed the competition authorities were being misused for this purpose.

"Ironically, the real loser here is much needed competition in the retail space," DA trade and industry spokesperson Tim Harris said in a statement.

This was where consumers would benefit from a new entrant to compete with the dominant retailers in the market.

Earlier, the departments of agriculture, forestry and fisheries; economic development; and trade and industry said Walmart's acquisition of Massmart could have a "potentially devastating" effect on local jobs.

They called for the transaction to be sent back to the Competition Tribunal for proper consideration and more effective conditions to be imposed.

The review and appeal were expected to be heard in the Competition Appeal Court on October 20 and 21.

Harris said: "Ministers Rob Davies, Tina Joemat-Pettersson and Ebrahim Patel have missed no opportunity to intervene in the entry of Walmart into this country, despite the competition authorities approving the deal with conditions designed to protect South African jobs and businesses."

The ministers' "knee-jerk" ideological opposition was damaging the country's reputation as an investment destination by creating uncertainty.

"Instead of appealing the Competition Commission's decision, the government should welcome the deal as a massive vote of confidence in South Africa as a gateway to the rest of the continent," Harris said.

  • Jabulaniboy - 2011-10-06 02:15

    Walmart is from Arkansas USA. It is not from China. That is the only reason the government is fighting this deal. China told the South African government to say NO to such a deal.

      AcesHigh - 2011-10-06 03:08

      Walmart also exists in China. I have seen their stores in Beijing, Shekou, Dazhou and Chengdu. So I dont see any relevance in your comment.

      Prof - 2011-10-06 07:13

      Jabulaniboy --- have u done ur research before posting ur comment? There is Walmart in Beijing my broer.

  • Observer - 2011-10-06 05:18

    I would like to have more competition in the retail sector. I went to the stores in Germany this summer, and I can tell you, what we pay for basics in ZA is sometimes double the price and more of what it costs there. Cucumber: R 4, kg of green pepper: R 2, kg of frozen vegetables: R 13-16. Did you see, what we pay here? And these are retail prices, so wholesale and the retailer had their profits in there already. If we pay 15% more for imported goods due to transport, that's acceptable, but 100 %? And I am now only talking groceries, you should compare prices in their builders warehouses .... No wonder, that in ZA the percentage of luxury vehicles on the road is so much higher than in other countries. Somebody is ripping us off. And I am really far from being a communist.

      RuSaffa - 2011-10-06 06:49

      Totally agree with you Observer, something has to be done.

      Prof - 2011-10-06 07:15

      Good observation Mr Observer...

  • Chillibean - 2011-10-06 05:33

    "Undemined??????????" Really!

  • Manyoza - 2011-10-06 08:27

    I actually wanted to comment on this article but the mispelled headline p!ssed me off. How is it possable to have an incorrectly spelled headline - who proof reads the article, some brainless editor ? that is the impression I get, how can you miss this ? News24 - hang your head in shame, you owe your (us) readers an apology.

      Azaliya - 2011-10-06 10:41

      "Possable" huh Manyoza?

  • lakhan7 - 2011-10-06 10:40

    K.I.A did some WORLDWIDE investigation into the matter: When asked ," what do you think about walwart " A south african consumer with a BCOM background replied " eish, good for us as we gonna get stuff much cheaper but not good for local enterprises as downswing in profits " I agree. More competition is healthy. But, with Walmart there would be NO competition. ...The only South African firm to make it big worldwide was ...the vuvuzela company that promoted its product worldwide. Smaller SMEs in all sectors have no chance of survival. Naspers has bought Gumtree and Online Newspapers etc. ( what does that mean for our local web developers? AND What does this mean for the local advertising industry? Controlling a news outlet, would put any franchise in a critical position to sell goods and dictate the South African Economy ...once the this happens, then as a country we will be controlled by others - its already happening as China/US seems to influencing Gov. decisions) As South African's we work from 9am to 5pm. Overtime , is paid for. If a company like Walmart, is given our consent it will have a ripple effect on our ways off working. Scenario : The USA employees of Wal-mart have to work overtime daily ( without pay). Walmarts strategy used NO UNIONS & the American Gov. health system to pay for the employees medi-care -this inturn put huge strain on the american economy. (and the tax payers) How Shall David win against Goliath, THIS TIME?

  • Ntfutfuko - 2011-10-06 13:46

    Have you been to Makro lately? All the specials are gone, prices are back to normal... WallMart is here to take advantage of high prices; just like VodaFone & Baclays. If they were committed to driving prices down, the would have changed MassMart branding to WallMart.

  • leonard - 2011-10-06 22:54

    Oh my oh my oh my. @The headline...... undemining @Manyoza...possable @iakhan7....walwart @ntfutfuk...baclays. Whatever will Blade say about the spelling in SA(see article on education transformation)Just having a bit of fun guys.

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