KZN ANC says no to nationalisation

2012-06-18 18:24

Durban - The ANC in KwaZulu-Natal does not support the call for the nationalisation of mines, provincial secretary Sihle Zikalala said in Durban on Monday.

"We believe nationalisation will be expensive and will have massive economic consequences for our country," Zikalala said.

He was briefing reporters about an ANC workshop on the issue, attended by more than 500 delegates in Durban.

"The report is clear, nationalisation will be unconstitutional unless we say we'll pay those people who own those mines and that will cost the state more than R1 trillion," said Zikala.

"That will impose serious challenges in the economy, so we are not going to support the call for nationalisation."

  • ntunjab - 2012-06-18 18:38

    This was expected from ANC kZN, as much as they want Cele bck on the field, they also pushing for 2nd transition, while they also discuss leadership, while other provinces were not allowed to do so...... Only time will tell who's fooling who!

  • tumisang.kolobe - 2012-06-18 18:42

    This is the problem with factional politics, You are forced to oppose anything the other faction is suggesting without considering facts behind the model, nationalisation is in fact one of the greatest and progressive policies around the world, all the resources of other countries are owned by the governments of the land, even the government of Nigeria owns the oil rigs and the latest youngest state in the Africa, South Africa owns their oil mines, the rights to mine might have been issued to foreign countries but ownership remains with governments, here in south Africa our minerals and mines are owned by foreigners, they extract the minerals and leave the country with mining museums like the Opehimers have done in Kimberly. Nationalisation is simple, You give the mining companies rights however ownership and profit sharing remains with government before even the right to mine is granted, this is happening in Venezuela and in Nigeria Shell is digging oil however the government of Nigeria shares in profits and controls oil market.

      Henk - 2012-06-18 19:08

      But the people already own 30% of every company in this country! So what is the difference going to be when they own it all. When did you get something from SAA, Eskom, Transnet or Telkom? When Tumisang, When?

      tumisang.kolobe - 2012-06-18 19:18

      That’s not correct Henk, Government needs to have influence employment within the mining sector which is not the case because of greed and capitalist tendencies more than 50% of the youth would be employed in the mines, the mines are greedy making maximum profits to the point where they risk the life’s of the few workers they have, I was in Britain recently, the amount of work produced by the one south African employee it takes 10 Britons to complete, and the Chinese have mastered this art perfectly, they employ makes workers to complete a task only problem is that they pay them too little, what am trying to say is that the south African worker is exploited,this is how nationalization will work come 1 January 2012, all new mining rights from that day onwards will be issued only on a condition that 51% of the mining company is owned by the state, that way the government who is not profit driven will have majority of shares to employ more young people in the mines so that the concept of the freedom charter can be realized.

      mbossenger - 2012-06-18 19:37

      So let me understand you here - the mines are already under pressure and profits, yields, etc are decreasing. And your solution is to employ 10 times more people in the mines and increase their salaries?

      Billy - 2012-06-18 19:38

      the fact of the matter is. if the government do what is expected of them, run the couuntry properly, this rubbish would not be mentioned(unless by someone who will benefit personally from it. aka greed) people are looking left and right and pointing fingers all over, trying to find a easier/better way for themselves, because the government is not performing its duties to south african. all i hear off is nationalisation, not a single word of the government creating a new mine. why is that? we even have shell here looking for our gas, why did the government not say hang on, we will do it ourselves and sell it to you. instead shell will harvest the gas and sell it to south africa, wtf backward rubbish is that? am i wrong?

      iain.cluett - 2012-06-18 19:46

      The problem with advocates of the nationalisation of mines in South Africa is that you guys fail to truly grasp the ramifications of implementing such a policy in South Africa. You guys throw around all these marxist theories and tell everyone about how it worked in other countries but you don't look at South Africa. You say our public sector is not profit driven which is true, but look at the level of corruption in the public sector. For as long as there are the levels of corruption in our public sector( Which far outweigh the levels of corruption in the private sector) we should not consider nationalisation. Too often the premise of socialist arguments is that things just WILL happen. Its the logic of a simpleton. This is not about puppet masters and white capital. This is simply about who will govern the mining industry most effectively and considering how parastatals and the public sector have been governed over the past 18 years, it's pretty safe to say the the mining sector in public hands will follow suit.

      ryan.a.smith.3958 - 2012-06-18 20:13

      Tumisang, get a grip fella. there is a huge difference between forcibly taking over an existing business (nationalisation) and your example, where prior to the commencement of a project government and industry come to agreement on ownership split, profit sharing, and mining rights. no one would have a problem with government starting its own mining business (though they would probably screw it up and waste tax payer money), and then roping in the private sector.

      ryan.a.smith.3958 - 2012-06-18 20:22

      and Tumisang. you think Venezuela is a good example of nationalisation huh ??? youd be dead wrong. the country is a stuff up. much higher inflation than ours, I'm talking an inflation rate almost triple ours on average. much higher interest rates than us. and Venezuela faces a severe recession this year. if you dont believe me google it. even in our poorly governed country we are going to grow GDP by 2.5 % this year. dont even get me started on what will happen in the event of nationalisation without compensation or below market prices. and the constitution prevents nationalisation, just in case you are still dreaming of it.

      denny.cray - 2012-06-19 09:23

      @Henk - spot on. Actually the government owns more than 30% (28%) effectively because any profits retained will either effectively attract capital gains tax and if they are disbursed will be hit with 15% dividend tax. Either way you are looking at around 40% government ownership of *every* South African company. (This doesn't include their effective ownership to varying degrees of actual flesh and blood taxpayers). No, what government needs to do is *dramatically* reduce its own bloat. Sure, keep your 40% ownership of the mines but scrap taxes on everything else. Government isn't the solution - it is the problem.

      denny.cray - 2012-06-19 09:25

      @Iain - there is no place on these forums for sound logic ;) Voetsek :D

      Oom - 2012-06-19 14:43

      tumisang.kolobe - It really is amazing how a certain section of the South African population thinks, ( or fails to think ) How and why would only the section with the least to gain, and the least to lose think that nationalization will be beneficial to them. Simply because the R1 trillion that it will cost if so far out of their realm of imagination, that it becomes irrelevant, just a word. The "what’s in it for me thing" becomes the driving force behind their wanting it to happen, as one of the sheep in the Penn,. As usual, the "handout syndrome" is the most powerful, motivating force in the land. It’s like getting a free red or yellow t shirt just for turning up..WAKE UP SOUTH AFRICANS, or soon there will be nothing left for us to destroy.!

  • tax.payer.142 - 2012-06-18 18:42

    Wow! Someone in the ANC can actually think rationally!

  • Bless Boswell - 2012-06-18 18:42

    At last, some sense!

  • Matthew Patrick - 2012-06-18 18:42

    Nationalisation will not bring growth I the mining sector. Privatisation of mining brings greater motivation to create growth and profits from this whereas State ownership only seeks to earn profits from mining operations that already exist without create future growth. State ownership seeks to bypass the 29% earned from operations to earning the full profits from mining while private investment seeks further growth. It is only the further private growth from mining that will create jobs. The government needs to lessen the restrictions on investment in mining. This is the only way to create growth and jobs.

  • Carlton - 2012-06-18 18:46

    Do you know we as a country can be successful simple stop corruption stop having children you cant afford and stop receiving hand outs

      Emily-Jane Elson - 2012-06-18 21:58

      And work!!

  • ndyeboreginaldmazawule - 2012-06-18 18:53

    That is much more important to you Zikalala huh? Take a look around your province and tell the nation what makes you happy, your fat salary for talking nonsense or the poor of the province? You all like publicity these days and it makes of sick after voting for you three years back.

  • Heaven.Tux - 2012-06-18 19:02

    It's always been expected to come from the kzn anc since they'll do any thing to support pres zuma, they are very short-sighted & don't think that nationalisation of mines, banking etc will benefit South African in the long run, all they do is to count number of the anc pres who hailed from kzn, that's tribalism something we should be totally against as the citizens of this country.

  • Henk - 2012-06-18 19:06

    Well you already own 30% of the mines and other businesses...

  • Billy - 2012-06-18 19:28

    yea... and if you had to vote on it, and the big man says you must vote yes, what then. will you still sing the same song? are you throwing the public a bone to keep them occupied? time will tell i suppose.

  • mbuso.tholly - 2012-06-18 19:38

    wena Hadebe da delegates are chosen by masses,isshues r 1st discussed on branch level,regional ,provincial maybe u shld focus on generation nt politics @tumisang whch countries in the world used nationalisation n r successful today?

  • mkgatla3 - 2012-06-18 19:40

    No wonder! They still support zuma so they wont agree with anything that go against him! I support a call for nationalization...!

  • - 2012-06-19 19:48

    As long as KZN remains home of the Zulu's - their say will always matter more than anyone Else's. This is good news.

  • anthonie.vanbosch - 2012-06-20 21:16

    The best way forward is to build a community, whether under capitalism or socialism. Many people are living selfishly with only greed and enrichment on their minds with no ubuntu and/or brotherhood as a priority. Money is not everything but friendship is. Sport is a good way of building these friendships and one can see it with the new generation of black and white children becoming friends at school. Hopefully amongst them somewhere is a new leader who will bring us all together under whatever system appreciating each other’s friendship and lead us towards patriotism for our beloved country and towards our fellow citizens and doing away with all types of discrimination. Please keep on working towards this goal and fight against ruthless employers and individuals who are only out to exploit people. They need to know those days are over.

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