LETTER: Our problems are serious and smiles won't fool potential investors

File image: IOL

File image: IOL

Published Sep 30, 2019

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OPINION - Your editorial on the need for a government plan to curb job losses (Friday) gave some alarming statistics, and wisely used the construction industry as an indicator of how far down the economy has sunk.

You also pointed out that this was “despite concerted efforts by the government to attract foreign direct investment”.

Sadly, our government seems to think that happy smiles and lavish entertainment will distract hard-headed businesspeople from noting the rather obvious and embarrassing drawbacks:

1. Land expropriation without compensation totally erodes the connection between land and property value, and would make a sensible investor stay far away from any agricultural investment (and any bank that gives bonds).

2. The Labour Act (as Michael Bagraim has previously pointed out in the Daily News) favours the worker at the expense of would-be employers. If your venture hits a problem, you still have huge responsibilities towards your staff, whereas elsewhere it’s regarded as a risk that management and staff share.

3. Crime levels mean additional security costs and your staff often suffer muggings and hold-ups, which understandably distresses and distracts them.

4. Incompetence and corruption - everybody (except for a slight majority of the electorate) has noticed how Eskom, SAA and SABC have collapsed from being profitable to being crippled by debt.

So perhaps any plan about employment should focus on these basics, especially competence of ministers and officials - otherwise any attempt to encourage investment is doomed to failure.

Rob Johnston Tokai

Daily News

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