DA praises Shabangu stance on mines

DA CHIEF whip Ian Davidson has lauded Mineral Resources Minister Susan Shabangu, pictured, for her stance on nationalisation of the mines.

DA CHIEF whip Ian Davidson has lauded Mineral Resources Minister Susan Shabangu, pictured, for her stance on nationalisation of the mines.

Speaking in Parliament yesterday, Davidson said Shabangu's comment that mines would not be nationalised in her lifetime showed extraordinary leadership.

"It showed that she understands that international capital markets are fickle, that markets like certainty, failing which investment capital is hesitant or comes with a high risk premium.

"For this she gets top marks - by contrast (ANC youth leader) Julius Malema is shown to understand as much about markets as he does about woodwork," Davidson said.

He said proponents of nationalisation had not outlined a cogent case as to how such a move would create jobs and reduce poverty.

This, said Davidson, appeared to be based on the assumption that the state had the ability to run mines profitably and state-owned enterprises effectively.

But their history contradicted this assumption.

"They (SOEs) have been a drain on the state's limited resources rather than a net contributor to the economy.

"Yet, these institutions are supposed to be the vanguard institutions of the ANC's 'developmental state'."

He said Eskom's difficulty in funding its infrastructural expansion had clearly exhibited that neither it, nor the government, had the financial capacity to fund it, hence Eskom's endeavour to get private sector investment for the Kusile, and no doubt other power stations. - Sapa

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