ACDP supports Public Enterprises Budget with reservations

Public Enterprises Declaration of vote

Cheryllyn Dudley MP – ACDP

Thursday, 20 June 2002

In Parliament today Cheryllyn Dudley MP for the African Christian Democratic Party and member of the Portfolio Committee on Public Enterprises gave the following speech registering a vote in support of the Department’s Budget:


Madam Speaker/Chair,

The African Christian Democratic Party will support this budget but with reservations, as government is perceived by serious commentators and observers of the South African economy, as dragging its feet on the issue of privatization.

Apart from major areas like transport including harbors and ports which should be privatized, in almost every government department there are things government should not be doing and certain elements like catering for example should be privatized.

More than 90% of the world’s trade passes through ports and
inefficiencies inhibit economic growth. The experience in the UK with outright privatization of ports shows that capital investments grew by 50% in a decade. Turnover and tonnage of cargo grew more than 20% each, labour fell 40% and profitability grew 220%. New jobs are created where the economy thrives.
UK ports are reported to be among the most efficient in Europe.

The public sector cannot create wealth but can and must provide the conditions in which wealth can be created by the private sector. This being the private sector’s primary purpose.

Aspects of Eskom such as delivery and not generation, Transnet, Telkom and Denel, have the potential to make a large contribution to the country’s well being through privatization which would enhance efficiency and improve customer service.


--------------------------------------------------------------------------------

For further comment please call Cheryllyn Dudley MP at 082 8906520 or ACDP Media Liaison Liza Bloemetje at 082 4781037