Cabinet rejects new price fixing controls
Boyd Webb
April 21 2008 at 10:16AM
Cabinet won't introduce new legislation to curb price fixing within the
food industry despite admitting that the collusive behaviour among
certain retailers was still a matter of concern.
"At this stage there is no talk of legislation until such time that
government gets information that would suggest that we need to change
our laws," according to government spokesperson Themba Maseko
He said cabinet felt that competition authorities were effectively
managing to wage its war on "these negative practises that have also
contributed to higher food prices".
Last year, Tiger Brands felt the wrath of the Competition Tribunal when
the retail giant was fined R99-million for anti-competitive practices in
a bread price-fixing scandal.
'Food prices have gone too high, our people are starving'
Cabinet this week discussed the rising food and fuel prices and the
global economic situation, which has left consumers around the world
tightening their belts, while food protests have broken out in several
countries.
Sunday saw thousands of Cosatu members take to the streets of
Johannesburg in protest against increased food prices.
In a memorandum, Cosatu complained that food manufacturers and retailers
had increased the prices of basic foodstuffs - in some cases in
collusion with one another - beyond the reach of the majority in the
country.
"These food prices have seriously worsened the living standards of
workers and the poor," stated the memorandum, which included a list of
demands that was handed over to Pick n Pay senior general manager Kevin
Krom.
"Food prices have gone too high, our people are starving," said SA
Communist Party general secretary Blade Nzimande whose members had also
joined the march.
But cabinet noted that while South Africa was being affected by the
rising prices, it had not suffered as badly as some countries.
"The budget contributes to sup****ting the income of poor households
through the social grant system and the school feeding scheme," Maseko
said. The economic and social cluster of minsters was, however, asked to
develop and present a strategy to cabinet on how to best deal with the
challenges soon.
Cabinet also re****ted that the government had decided to cancel a
R926,8-million debt that Cuba owed the country. It argued that the
debt's existence had the potential to undermine bilateral economic ties
between South Africa and Cuba.
"Given the *****sment of Cuba's debt position, the government is of the
view that Cuba was not in a position to meet its obligations in the
foreseeable future," Maseko said.
The move, however, angered the Freedom Front Plus who accused the
government of giving away taxpayer's money.
"This while the majority of taxpayers are suffering and the money could
have been used for so many other deserving projects such as housing and
the treatment of Aids," FF+ MP Pieter Mulder said.
This week's meeting also saw cabinet dispatching a task team to assist
the Eastern Cape's beleaguered housing department to improve service
delivery.
Delivery of houses in the province has dropped from 37 000 units a year
in 2004/05 to just 11 750 in the previous financial year.
Maseko would not comment on whether this move by the national government
would mean the axing of the Eastern Cape's MEC for local government,
housing and traditional affairs Thokozile Xasa.
He said, however, that cabinet had warned the province that housing
minister Lindiwe Sisulu would take over the administration of the
provincial department if the situation did not improve within a year.
http://www.iol.co.za/index.php?set_id=1&click_id=6&art_id=vn20080421061420135C500140
|
