September 22, 2011
As the population of Earth nears the 7 billion mark, and urban sprawl hangs like a smoggy spectre over the planet, the availability of land is a pressing yet volatile issue. This is a paradox, if not plain stupid, given how much wasted land is available right in our cities.I have to fly to Parliament almost every week and as the ageing BA jet flies over Johannesburg and Cape Town, it gives one a bird’s eye view of the large quantities of wasted resources represented by our land use in both cities. Up there in the air you can't see the by-law restrictions, the hectare or square metre cost, the inadequate bulk infrastructure services and the distance to transportation links. But there is one thing you can see is… Land! There is lots of it. Most of our cities are spread out due to urban sprawl caused by the cheap fuel prices of the 1950s and 60s and apartheid’s special planning. We should never have let our cities sprawl out. It has made transportation expensive and added to air pollution. But there is another way of looking at things. Up there in the clouds when you look down, you see the large swathes of unutilised or under-utilised land. We have reprocessed mine dumps, polluted lakes and dams, abandoned schools with sports fields (in the middle of Soweto), unproductive small holdings and industrial land lying vacant. It’s a shame really. That land could be put to better use. When you then consider that city councils are trying desperately to find enough land for shack dwellers in places like Alexandra, the N1 City Development, Delft, Umlazi and so on, it seems a shame that we have hectares of readily available land lying “fallow”. To say that there is a shortage of land is simply nonsense – there is plenty, if you care to look. The problem is that much of the land is in the wrong hands. National and provincial governments own lots of it. The metro councils and state-owned enterprises own some as well, and then there is disused industrial and mining land, which is privately owned, often abandoned or disused in city centres. In each case, this land could be redeveloped to provide accommodation and work in economically active parts of our cities. What it takes is some lateral thinking and a very cooperative government working in concert at all three tiers to succeed and Tokyo Sexwale’s housing headache could be wiped out, probably in 10 years or less, along with serious long-term job creation. Let me sketch out a few examples: East London, city of my birth, now known as Buffalo City. The old Railway Workshops, where my father spent the better part of 53 years remanufacturing steam locomotives lies derelict, adjacent to another piece of land also owned by Transnet and leased out as a small business hive. This land represents probably the largest piece of unused urban real estate in Buffalo City and is strategically located in the run-down CBD of East London. Of course, Transnet puts a high value on the land and won’t part with it for love or money. It could, however, be transferred between national government and the local or provincial government for redevelopment at almost no cost. It is a prime piece of real estate that could be used to revitalise the downtown area of East London by providing housing in two- or three-story apartments, similar to the Newtown area of Johannesburg for previously disadvantaged residents currently living far from the city centre. The piece of land is so large that it could also house a brand new shopping mall, opening up the city centre and providing work and a customer base in one development. Couple that with a redevelopment of the central train station and you would have a revitalised city with the largest new development and private capital formation in its history… if only Transnet would part with the unused land (They probably want a huge cash payout making it non-viable). In Cape Town we have a similar situation. The military owns large tracts of land, also in some cases under-utilised. Wingfield, Youngsfield and Langebaan – all have air force applications. But how many air force installations do we really need in one small geographical corner of the country? The city has, on several occasions, tried buying one or other of these installations to build low-cost housing for the thousands of under-privileged South Africans, but the air force wants Rands - lots of them. When you add in the cost of bulk infrastructure, the job becomes prohibitive. However, again, the land is already owned by the state and under-used. There are several other pieces of land owned by the military in the greater Cape Peninsula and again they are mostly underutilised. Can the military not rationalise its operations (it can barely afford the jet fuel in any event) and inexpensively transfer at least one of these land parcels to provide a few thousand new homes to the homeless in Cape Town? The city would be only too glad to pay for the water, electrical and sewerage services if the land wasn’t costing an arm and a leg, one assumes. In Johannesburg, there are many parcels of land also, which have already been identified – Frankenwold (partly owned by Wits University) and adjacent to a squatter settlement (in Alexandra) and the Gautrain station. But there are others. The re-mined land to the left of the N3 (southbound) highway and at the entrance to Germiston, provides an ideal opportunity to re-invigorate the aging and obscured CBD of Germiston. It’s a sizable piece of land, of course, currently unsuitable for human habitation without some serious earthworks and environmental rehabilitation, but it can be done. Again cost may be a limiting factor, but the land is in a prime position and much closer to work and shopping opportunities than the Far East Rand townships. In fact, there is much industrial land, and many small-holdings in the greater Germiston area that are unused or underutilised. It takes political will, thinking out of the box and new kinds of urban planning. Nelson Mandela Bay has similar tracts of underutilised land as do Durban and Tshwane. Yes, these and other cities would find these projects very large ones to undertake, but we have a large housing problem and a large jobless population that could be assisted. Instead of building RDP settlements on the fringes of cities, in each of our metros we have ample land, if we can get the politics and bulk infrastructure sorted out - together with some environmental issues. But please, let’s stop pretending we have a shortage of land or an absence of ideas - just get in a plane and fly over our cities if you can’t think of any options. DM
Posted by Ian Ollis.
May 28, 2011
Madam Speaker/Chairperson
The grand toilet war of election 2011 has
come and gone and here we are considering government service delivery again
with the 2011 labour budget vote and business plan.
Treasury and cabinet have approved a larger
budget for the Department of Labour (DoL) and, together with several virements
in the last financial year, the department and its entities are receiving a
slightly bigger slice of the pie than we had previously received. As we approach the new financial year,
the labour department has seen an unprecedented amount of change that has left
its staff and entities reeling. We had the DG of labour suspended and sacked;
we had the long-standing minister of labour sacked and the chairperson of the
labour committee replaced also. We have welcomed our new labour minister, new
labour committee chairperson and we hear rumours of a new DG about to be appointed. What we must assess is whether this
department is running at full steam and whether it is delivering on its mandate
for all South Africans. With 1 in every 4 South Africans now voting DA, we have
a vested interest in seeing that it does run smoothly. Our 1 in 4 South
Africans would expect us to look after their interests and do so we shall. Incidentally, looking at the election
results, if you add the total votes for the cities of Cape Town, Nelson Mandela
Bay and Pretoria, the ANC received 911006 votes, whilst the DA received 1053267
votes, so if Jimmy Manyi had managed to remove the oversupply of certain race
groups to the Eastern Cape and Gauteng, he would have handed us another two
metro cities! But I digress!
So let’s look at some of the Labour
Department detail:
The Sheltered Employment Factories are in a
terrible state. Their subsidies have been reduced and government departments no
longer have to purchase from these factories. Without new markets for their
products, they are slowly going down the financial drain and instead of
providing more job opportunities for disabled citizens, a few thousand less
people now work for the Sheltered Employment Factories than did in 1994.
However there are plenty of ways for disabled people to be sought: The
Compensation Fund deals daily with South Africans who have become permanently
disabled and now cannot work. Why doesn’t the DoL hand their names over to the
Sheltered Employment Factories instead of trying to run an employment agency of
their own? We have military veterans from the liberation movements who also sit
without work, and some are disabled. Silo thinking! Our 1 in 4 South Africans
would expect us to demand better co-operation from government departments. Our
people deserve better!
Moving skills development from the
Department of Labour to the Department of
Higher Education (DHE) has been extremely messy and badly managed to the
extent that the Auditor General cannot comment on the financials of Skills
Fund. The DHE is, I am told, going to get a disclaimer as a result of the
botched handover process. Proper governance criteria or accounting procedures
were never adopted at the department of Origin -Labour Department - and have
similarly not been set up in the DHE. What a mess! There are question marks
over where the money went during the handover period. One version of the story
circulating among departmental staff is that money is being run through the
banking accounts of Minister Nzimande because too few bank accounts were opened
timeously for the transfer! I hope that post-audit, these irregularities will
be sorted out and the Department of Labour’s hand in this mess will be
clarified. Where is Mr. Manyi when we need an explanation?
But there’s more: I have personally
conducted visits, to offices of the Department of Labour in Pretoria,
Johannesburg and elsewhere and discovered a whole range of training staff sitting idle in
government buidlings. Now before you laugh let me explain. They are what
remains of the skills development staff of the Department of Labour. It seems
that the former Minister, Mdladlana, transferred the budget for skills
development and training to Higher Education as requested, but, without telling
anyone, kept the staff going in office after office in the DoL. Unfortunately
they no longer have a budget to enable them to pay for the training courses
that they had been offering. Now they sit, side by side, watching soccer, or
finding stapling work to do. Oops!
I now believe that Mr. Moratoba will be
moving these staff into the new government employment agency. Except that we
are still arguing in Nedlac over the content of the enabling legislation, so I
suppose they will have to continue watching soccer for a while longer! Some
stapling for you, minister? Unfortunately Minister, the 1 in 4 South Africans
that we represent want us to do better. Some of that money is their tax money
after all!
The Taining Lay-Off Programme has been an
equal disaster. Under this programme, about 7500 workers have been re-trained.
However, almost R3Billion was pumped into it! This huge fund is still sitting
there while people in SA have no jobs! What a disaster for the government!
Let’s be honest, it was a great idea in theory, but there was simply no
execution. None of the Seta’s has yet been able to account for how much they
spent on the Training Lay-Off scheme either. How much did they use? No one
knows? How much per person? No-one knows that either. I only hope that the
Auditor-General is taking note of this problem. The DA’s 1 in 4 voters is certainly taking note.
The Essential Services Committee needs an
urgent intervention also. It is essentially dysfunctional at present and has no
real budget to run operations. It does have a General Minimum Services
Agreement but this does not address the real concerns because it is too
generic. It does not adequately clarify who may or may not go on strike and
therefore, it is largely ignored by unions and employers alike. 1 in 4 of those
South Africans now voting for the DA are affected by this chaotic situation and
Minister we request urgent action to improve the operations and efficacy of the
Essential Services Committee and a budget that will assist it to function. What
can you do to improve this situation for the workers?
My colleague will be examining the
Compensation Fund and the UIF this year, and I will not step on his toes, but I
must just say that there has been no real improvement in payments of claims. I
had one man in the Western Cape wait for a year and lodge enquiry after enquiry
and appeal after appeal to get medical attention after a work injury. He also
applied for compensation from, of all places, the Compensation Fund. Months went by without a response. He
lost his house and his car, and moved into a garage for which he was paying a
small rental. He had an eye injury that needed urgent medical attention, which
he did not receive, because it was not approved despite completing forms and
handing in reports from medical examiners. I escalated his claim and the appeal.
I then emailed the relevant officials again asking for help. He was then thrown
out of the garage he was living in because he couldn’t pay the small rental. I
finally received a call from the mother of his children telling me that this
past Christmas he had committed suicide and asked whether there was any payment
coming that could be used for his children. I almost wept and that story still
haunts me 5 months later. His member of Parliament sits here today and quite
frankly, I do not know what to say to her. Many people in South Africa are
very, very poor and when they are injured at work, or can no longer work, we
should be able to respond to their legitimate needs speedily. The current state
of affairs is just not good enough. We are still shuffling 20 documents and
forms for every single application for Compensation and a similar situation in
the UIF department. Instead of spending all his time measuring racial quotas,
Mr Manyi, as labour DG, should have been fixing the computer system and streamlining
the funds to deliver for the poor!
I want to close by examining the textile
industry and how the labour department, together with other departments, have
contributed to the ruin of an industry. In Newcastle we had several factories
making textiles and paying workers below the minimum wage. The Department of
Labour applied the relevant legislation and shut those companies down and 15000
employees lost their jobs. Some of those companies relocated to Swaziland and
Lesotho and the remainder of those unemployed workers eventually turned on
their unions and the bargaining council and asked for the companies to be
re-opened. Some were eventually re-opened and are still not able to pay those
minimum wages. Absolutely nothing has been achieved in this process except the
loss of Jobs.
I do not condone the payment of below
minimum wages, however a better solution could have been found. What we need in
this industry, among many other labour intensive industries, is a co-ordinated
approach to all aspects of the industry and a government that can understand
complex detail and tailor-make legislation, regulations and policing of the
industry in a way that creates jobs first.
The DA calls on the Minister to implement a
Cadette internship programme for the textile industry, which takes on
apprentices at a lower wage while they are being trained for a year at least.
We also call on the Minister to apply an exemption from the bargaining
agreement for the Commission Embroidery Industry that has been wiped out
because each business is too small to comply with the agreement and margins are
too low.
I do not understand the rationale for small
companies who’s staff are not unionized being forced to pay over levies to the
bargaining council in lieu of union fees. That is yet another tax with no
purpose. It’s like a punishment for no services rendered. I call too on the
Minister to conduct joint operations with Customs and Excise as the DA is aware
that customs officials find it difficult to distinguish textiles such as cotton,
wool, silk and polyester from each other when they land at ports like Durban
and allow the goods through with the wrong valuation and therefore the
incorrect import duties and levies being applied. There is too a problem with
new goods being allowed in as “second hand” and the officials are not averse to
re-arranging the invoicing to suite, for a small fee. Bribes kill jobs! The
reason that this is a labour issue is that for each shipment that comes in
without paying the appropriate duties, jobs are lost and the margins in
Newcastle get thinner and thinner. If we want decent work for textile workers,
then we have to stop the cheating at the harbors and
ports of entry! A cluster of measures like this will improve the financial
position of our textile industry and push wages to an acceptable level.
In Closing, I understand that the new DG of
labour is about to be appointed in the person of Mr. Nhleko and it is about
time. I have, in a previous speech welcomed the new minister to her department.
However I call on her now to urgently intervene as people are suffering,
industries are suffering and many bargaining agreements have become very dated
and out of touch with the reality on the ground.
Our 1 in 4 South Africans would demand that
we push for a better deal. I now declare in this first speech after the general
election, that the toilet war of 2011 is officially closed!
I thank you.
Posted by Ian Ollis.
May 28, 2011
The seemingly stringent – and laudable -
requirements of a raft of supposedly protective laws from Fica to Rica
have become an onerous burden on ordinary consumers. Meanwhile their
very raison d’etre is eroded by the high-level government , criminal
and business fat cats who seem exempted. This woeful imbalance not only
opens door to mega-bucks corruption, but foments the mounting rage as
the little guy suffers and the powerful and well-connected thrive.
Walking through Sandton City over the Easter long
weekend, I passed a notice board at the info kiosk declaring that
customers would have to produce their IDs to buy a gift card for a
birthday present or a house-warming party. The shopping centre would
have to actually scan my identity document (presumably keeping a copy)
to allow me to make a purchase. Immediately I felt irritated that to
spend R250 on a friend, I now had to start having IDs scanned and a lot
more time wasted. My better judgement reminded me that to stamp out
corruption, rife in other parts, I needed to just accept the new regime
of irritations imposed on us by the cache of new legislation enacted
over the past five years.
We’ve had to get used to a raft of it, haven’t we? Fica, Rica,
National Credit Act, Consumer Protection Act and on and on. MTN keep
calling me to get my SIM card “Rica’d” I went and had it done recently,
but still they call. I struggle each time to prove my residential
address because the Johannesburg City Council has stuffed up my rates
and services bill - it doesn’t even indicate the correct address – and I
send all my mail to the PO Box up the road, because it’s safer that
way. I tried to receive a donation to political activity the other day
of about R1,800 and because the money was coming via Western Union, I
had to again go and prove my own residential address, which resulted in
two trips to the place as they had not advised me correctly on
documentation which they require to release the funds.
On the one hand this new legislation is a good thing. South Africa
was to a degree shielded from a financial meltdown due to its sound
financial legislation, regulating the banking sector - or so most of us
believe. However, at least one commentator has recently indicated that
it was the excellent work of the Registrar of Banks, the high local
interest rates and the exchange controls that protected SA from the
global “subprime products” crisis. This would indicate the magic might
not have been wrought by Fica, Rica and the like. Have we been spun a
yarn?
At a crass level the theory is that you have to make it difficult to
launder money in SA, limiting the opportunity for crime and at the same
time preventing the economy from overheating. We are also preventing
people borrowing more than they can afford by forcing financial
institutions to assess affordability for the debt. And we have added to
that the need to adequately make customers aware of the implications of a
purchase so they fully understand what they are purchasing and giving
them a cooling-off period too. Of course, in the process we are to a
degree treating our consumers like children, protecting them from
themselves. Solely on the belief that our banks remained stable during
the economic crisis, we think this sort of legislation is responsible
for it and working. It’s almost like a panacea for all economic ills.
However, I would argue that the “nannying” of consumers has caused
the pendulum to swing too far in one direction, while we have left a
gaping hole in our legislation at an entirely different level allowing
serious corruption and crime by the large criminal elements this
consumer level legislation is never going to address.
Let me explain. South African companies trading in Africa are often
pressured into using bribes and inappropriate cash incentives to smooth
the path of business at levels that are alarming. At another level,
there appears to be a series of corrupt relationships developing between
key political figures and business leaders inside the country which
leads to lucrative infrastructure contracts, mining and mineral rights
and supplying of goods and services to the state to be awarded in return
for politically motivated favours and financial incentives. Finally,
our weak borders and entry points allow for wholesale corruption so
goods, minerals and cash can enter and exit our economy.
Let us examine a few examples, as yet largely untested in court, but
widely reported in the media, in Parliament and in various reports.
- Large SA retail, supermarket and or restaurant chains having to use
inappropriate measures to do business in other African countries. It is
widely discussed in boardrooms across SA that it is incredibly difficult
to get one’s good’s released from the docks in Lagos, Nigeria, when
doing business in that country and the level of bribes needing to be
paid to get the goods to the stores has become disgustingly large. So
too to repatriate profits to SA apparently requires the payment of
inappropriate fees to banking officials in Nigeria to get the money
released.
- Border control staff often refuse to release goods travelling by
truck across borders even in SADC countries. It has become common
knowledge that briefcases of cash are sometimes required to get trucks
of raw materials and goods released from the Zambian border controls as
it has become difficult to keep pace with ever-changing documentary
“requirements” of officials there.
- Police often report, off the record, the number of foreign nationals
from particularly West African countries living in SA (in places like
Windsor, Hillbrow, Joubert Park and elsewhere in Johannesburg) who walk
around openly with rolls of money in their pockets presumably ill-gotten
gains from drugs, prostitution or even perhaps human trafficking.
- Textile and garment workers often complain about the fact that
Customs and Excise officials in Durban are ruining their jobs because
they either cannot tell the difference between silk, cotton, wool,
polyester, flax or other textiles leading them to rely on unscrupulous
importers to identify their own goods or else they accept brides and
look the other way, allowing new goods in as “second-hand” and thus
attracting lower import duties. (local jobs are lost).
- Finally, there are several stories of suitcases of money or
travellers cheques travelling in and out of the country accompanied by
senior South African business leaders without any limitations of Fica,
Rica, NCR or CPA acts limiting them in anyway. Millions of rands of
unexplained cash have recently been found on business leaders from SA
travelling abroad in one or two highly publicised cases.
Governments such as that in the US, require all kinds of declarations
from executive and non-executive directors of companies and CEOs
regarding the payment of bribes, inappropriate incentives and the like
to reduce this level of corruption occurring internationally. We have no
such requirements. Directors are prosecuted where evidence to the
contrary turns up. In SA, our legislation either doesn’t cover this kind
of corruption or the officials we employ in Customs and Excise, the
SAPS and the Reserve Bank are not doing their jobs. On the surface of
things, it even appears that high-placed individuals in government are
protecting those on the take. In this kind of environment, what does it
matter whether or not I have my ID with me when I want to buy a R250
gift voucher at Sandton City. Fat cats are laundering millions and
running very large systems of corruption while the rest of us mere
mortals live with the irritation of proving who we are, where we live
and what our identity number is to pay a TV licence or buy a new
cellphone. Shouldn’t the pendulum swing the other way for a while?
Posted by Ian Ollis.
May 28, 2011
When my ANC colleagues in Parliament told me
Cosatu wanted my head on a plate, I had genuine problems understanding
the reason they’re so upset. Turns out I’m just one of those bloody
slave-trading labour brokers.
Truth is, I had never really met a labour broker,
or in fact realised the intricacies of the difference between them and
regular employment agencies. All that changed when the DA nominated me
to serve on the labour committee. I had to learn very quickly that what I
didn’t know about labour in South Africa could well kill you!
So what’s the trouble all about? The newly deployed labour minister,
Mildred Olifant, published the draft new labour laws on 17 December in
the Government Gazette, her first big step as minister.
Of course, the drafts had already been leaked to the press in the
middle of 2010, banning labour broking and “declaring all temporary
employment to be permanent”. These were prepared under minister
Membathisi Mdladlana and director general Jimmy Manyi’s reign, and
rubber-stamped by Olifant before being released for public comment.
The process has been fraught with complications, intrigue and perhaps
even irregularity from the start. The public hearings organised for the
labour committee in 2010 were highly contentious. As I repeatedly
pointed out at the time, they were dominated by Cosatu members reading
from pre-prepared faxes sent to them from head office. People who
disagreed were intimidated by union members in their fire-engine-red
T-shirts.
One poor man from the Unemployed People’s Party had bottles thrown at
him and sharp sticks pointed an inch from his eye-ball because he
wouldn’t accede to Cosatu’s demands, calling instead for a system of
regulating the labour broking industry. In that particular hearing in
Germiston, I witnessed people carry long assegai-shaped wooden rods,
bottles and one loaded revolver into the meeting. It ended in chaos and
we chose to leave when it became clear that the “public” really could
make their views heard as long as they agreed with Cosatu.
Jimmy Manyi disclosed to the labour committee he had already signed
off the draft bills and handed them to the minister for tabling at
cabinet, before the labour committee had even met to draft its own
summary report on the public hearings!
But what genuinely worries me most is not the flawed process (Cosatu
and the ANC are still not accustomed to genuine listening to the public
at large), but the actual content of the drafts. The Regulatory Impact
Assessment was called for very early in the process, before the full
cabinet or National Economic Development and Labour Council had received
the drafts. This in itself is an indication of the confidence insiders
had in the laws. The RIA is quite damning (www.ianollis.com). It makes
several important points about the new legislation:
- A number of the provisions in the new laws are probably unconstitutional.
- Many jobs will be lost
- It will create uncertainty in the labour market leading to a drop in
labour-intensive investment in SA and a large administrative burden on
existing companies
- An envisaged dramatic rise in legal action and work for labour attorneys trying to interpret the new proposals, and
- Abnormally punitive measures for non-compliance.
The most surprising thing about the RIA, tabled in September, is that
the labour department and the new minister seem to have largely ignored
its findings.
The 17 December drafts are little changed from the mid-year versions
(I think four sentences were altered). It still contains several very
contentious provisions, which are sure to be challenged in court:
- The Employment Services Bill requires private companies to provide
sensitive employee information and vacancy details to the department of
labour which will give the state employment agency an unfair advantage
over the private sector – that’s forced co-operation with a state
entity. It’s like having to tell SAA first that you are a customer
wanting to fly to a certain destination and are mandated to receive a
tailor-made itinerary before you are allowed to contact Kulula!
- There is a provision providing for a fine of up to 10% of annual
turnover for non-compliance with Employment Equity requirements. (This
is only usually done where “ill-gotten gains” are at stake, similar to
the fine levied on Pioneer Foods for their price fixing of bread.) There
is, however, no cash advantage to non-complaint companies if they
merely fail to employ enough disabled people or women for example, so
why the extreme fines.
- The clauses prohibiting Temporary Employment Services appears to
contravene International Labour Organisation’s conventions on sectoral
interests as it discriminates against categories of employment. (e.g.
the Namibian debacle in which the Namibian supreme court rejected the
attempted ban on labour broking through legislation).
- The criminalisation of certain breaches of the Basic Conditions of
Employment Act and the Employment Equity Act is new and unprecedented.
- The Amendments make both a subcontractor and the client liable for
unfair labour practices. This violates contractual law in South Africa.
Now I hear the sound of frantic typing and arguing coming from the
department of labour’s head office. Rumour has it that the Basic
Conditions of Employment Act is being rewritten to save millions in
legal fees when these laws are promulgated. And even if the reason for
the re-write is not common sense but the issue of the department's
money, for the sake of this country's future, I hope the rumour is
correct.
Posted by Ian Ollis.
May 28, 2011
There are many good reasons why the DA and Cosatu
should find themselves at the same table and work together for the
benefit of South Africa. And yet, there are almost as many reasons why
such coalition will not work.
It has been mooted before that there would be
distinct advantages to a proposed governing coalition between the
Democratic Alliance and the Congress of SA Trade Unions to seize power
from the ANC, provide an alternative government and force voters to
think with their heads about their choices instead of voting their fears
and their racial stereotypes. To put the advantage in perspective,
Cosatu currently claims to have approximately 1.985 million members,
Fedusa approximately 556,000 and Nactu 397,000, with the independent
union, Solidarity, carrying about 197 000 members.
This idea has significant advantages, of course. It would shake the
ANC to its core and force a serious re-think by the ruling party. A
complacent government repeatedly re-elected has no reason to treat
voters with respect and truly engage with their wishes and needs. Even
the “government is listening” type engagements, public hearings and
policy conferences tend to be dominated by the big guns who tell voters
what is good for them by means of salting the audience with their own
lackeys who will influence the crowd to give back the desired response.
Unique views never reach government’s ears, because those views are
drowned out by orchestrated populist responses. As Lumka Yengeni once
put it to me, these public hearings are a form of group therapy, letting
people talk about their pain and blow off steam. It’s not really about
looking for new ideas or actually expecting the public to think for
itself and give a real feedback.
To shake the nation out of its complacency requires something
entirely new, entirely out of the ordinary and out of the box; enough of
a change to get the majority of voters to take a step back, engage with
the issues de-novo, if that is possible, and actually give their own
views, unaided by a Malema or a Mugabe. The Cosatu-DA alliance would
provide just such a jolt to the system. The SA Communist Party would
never really get any significant voter support as it really has no
sizeable constituency. It has never attempted to stand for election as
an independent body. Cosatu is quite different. It is organisationally
an independent body and has a measurable constituency. The DA-Cosatu
Alliance could just crack the mould. The best part of it would be that
race would not be a factor anymore and voters would have to consider
policy and ideology.
Cope was not such choice. It was mostly ”ANC-Lite”. Most stories
about Cope were about its infighting and controversial roots. Cope was
not primarily about policy, but about forming a new movement that could
break the stranglehold of the ANC. It was not significantly different
to the ANC and its policy platform was thin or absent. It was really
another UDM/ID-type experiment, this time with more former ANC bigwigs
to give it credibility and several suitcases of cash.
Not so with Cosatu. It is already a mostly independent organisation.
It has its policies and an established, successful machine and identity.
It is well organised right down to local level, and has at least the
operational machinery to get voters out.
And in many ways Cosatu has things in common with the DA. Apart from a
well-established machine to mobilise its troops, it shares a common
platform on corruption, ineffective government institutions and, despite
the unfriendly rhetoric, most trade unions realise they need a
successful, well-run industry or there will be no jobs.
Such an alliance would split the ANC vote and end the racial voting
blocks in SA. This would give the combined force the opportunity to set
up a government based on principle, not one using race or reacting to
racial issues in campaigning.
That is, of course, where the ideological honeymoon ends. You can’t
build a coalition of partners who are far apart on key policy issues.
Apart from a commitment to end corruption and a commitment to clean,
lean, government, there is little in common between the DA and Cosatu.
The DA, arguably, is a combination of moderately conservative
economic, definite liberal social values and a concern for the
unemployed who may never get job opportunities, as well as a strong
commitment to excellence in education, as a means for social upliftment
combined with a strong small light-footed government committed to
maintaining law and order in a very hands-on kind of way.
Cosatu, on the other hand does not focus its policy choices on
mechanisms to create new jobs. I have repeatedly asked Cosatu
representatives in Parliament and in workshops what they are doing to
create jobs and there is never any answer other than a gasp that I
should even ask such a stupid question! The DA focuses its policy on job
creation via small business and reduced red-tape. Cosatu rather focuses
on more pressure to force government and business to provide
protection, better working conditions and higher wages for its members
who currently have jobs (which, according to DA stance, is loading
government and business with red tape).
This puts the two movements at loggerheads on economic policy and
labour laws. How you practically agree to suspend this clear difference
for a five-year period of the governing alliance is not obvious. The DA
is not averse to more measures to help the unemployed who make up many
of its new constituents. It is, however, concerned that South Africa is
constantly giving more to those who already have rather than those who
have nothing.
But there is more. One could ask the question: What’s in it for
Cosatu? Currently Cosatu occupies a space very close to the seat of
power, and its members often end up with senior parliamentary positions,
giving them the opportunity to influence government choices now, rather
than at some point in the future. Why should they break with the ruling
party to join the DA, with the potential fallout of membership
abandoning them as they side with the group they have been led to
believe (incorrectly of course) is the “oppressor” of the past.
Propaganda and scapegoating are hard to undo.
But of course the largest problem is not ideological. It’s political.
Vavi’s made it clear he is aiming to become the next deputy president.
His name has become synonymous with Cosatu and has effectively turned it
into a political movement. While many commentators have spoken with
wistful hope of the day when Cosatu “goes it alone”, what is more likely
is Cosatu will be neutralised by integrating Vavi into a senior ANC
leadership position. That would, in turn, facilitate the economic policy
necessary to deliver SA out of the quagmire of job losses and economic
downturn in which we currently find ourselves. As long as Cosatu
continues to push for more protection and perks for existing workers, SA
becomes less competitive and jobs are shed. The youth will find it
harder and harder to find employment until business, both local and
multinational, view Cosatu as less of a threat and the environment in SA
easier for business. Neutralising Vavi would probably also neutralise
Cosatu and effectively give the more sensible ANC policy makers an open
hand to free up the economy.
So in effect the real obstacle to a DA/Cosatu alliance, apart from
the obvious policy differences, will be the career aspirations of the
Cosatu leadership. In fact, it’s more likely that a
Fedusa/DA/Solidarity/ID kind of alliance could emerge, with the
left-overs of the UDM and Cope in tow… if they survive this year’s
election, that is!
And this is all just my view. Of course.
Posted by Ian Ollis.
May 28, 2011
Maybe the phrase “pipe dreams” should be changed
to “train dreams” – certainly in the case of the vaunted Gautrain and
accompanying BRT system. Less than 3,000 jobs and a few newish
buildings do hardly a rich harvest make.
The Gauteng provincial Gautrain office hosted many
workshops, public meetings and presentations in the months leading up to
the launch of construction of the Gautrain. These were essentially part
of the environmental impact process and also a marketing exercise to
let people see and get excited about the first new train line and train
system in South Africa since 1973.
The rest of SA’s rail infrastructure is many decades old and
outdated. During one of these presentations the head of the project,
Jack van der Merwe explained the need for the train, other than the
obvious need for an integrated high-speed transport system, that is. He
explained that South Africa had, since 1994, developed various proposals
meant to stimulate economic growth – Gear, the Maputo Corridor, the
Coega harbour and various export processing zone projects and so on.
Each one, he pointed out, had run into serious trouble or limitations,
sometimes opposed by trade unions, sometimes limited by the exchange
rates and sometimes by the costs involved.
Transportation infrastructure, such as the Gautrain, was to be the
new tonic for the economy and would stimulate growth and create jobs.
The view then was that the Gautrain would stimulate the economy,
directly and through its offshoot projects by 1% of Gauteng’s GDP. The
project is now nearing completion and we could begin to evaluate just
how far down that road of job creation and economic growth we are to
date. Phase one of the train, from the airport to Sandton is running
effectively and the Pretoria/Tshwane to the Joburg CBD route will open
mid-2011.
So what has been achieved? The success of the actual train is
unquestioned as a mode of transport (construction costs aside). Usage by
passengers has been double the projections drawn up. One can expect
that the longest and final route will equally be over-subscribed. Apart
from being much faster than driving one's own car, it is safe and
reliable.
In SA this is nothing to be sneezed at. We can expect it to reduce
some of the congestion on our highways and it will connect to metro-rail
at two points in Tshwane as well as at Rhodesfield in Kempton Park
(Ekhuruleni) and at Park Station in the Joburg CBD.
But what about the projected knock-on effect of economic growth? Of
course, the concessionaire and the provincial Gautrain office are keen
to laud the successes of the project. This week I received employment
figures from them on jobs created.
“In view of the verified local employment by the concessionaire and
its sub-contractors, the concessionaire has created or sustained more
than 29,000 local direct jobs and an estimated total of 101,500 direct,
indirect and induced jobs up to September 2010,” Barbara Jensen said.
Longer term, about 2,700 direct and indirect jobs a year would be
created for operation and maintenance of the system.
Of course, we don’t yet have audited figures and these include lots
of indirect and some temporary jobs, which will no longer be required
once the engineers, technicians and labourers move on to other projects
here or abroad. It is the 2,700 that is the more significant figure as
it is what remains after construction is complete. It is a significant
number. However, when seen against the backdrop of the 1 million jobs
lost and the government’s plans to create 5 million new jobs, it is a
drop in the bucket. The true impact of this project will be in the
knock-on effects of a more mobile workforce and a new customer base
available to businesses around the stations and distribution routes and
the construction and property developments in those nodes.
There is the possibility of a revival of property and business at the
Pretoria Central Station as well as the Park Station in Johannesburg if
the local city councils increase “safe and clean” initiatives at either
end. Some new development will occur around the Hatfield station, but
much of this land is already developed. The area around Rhodesfield will
be redeveloped and OR Tambo will be able to increase its capacity with
the additional modes of transport available to airline passengers.
However, a closer examination of the infrastructure and development
around the Marlboro, Sandton and Rosebank stations will give an
indication of some of the limitations and weaknesses in the somewhat
utopian vision we expected. Two key limitations immediately spring to
mind: The incomplete bus rapid transit system and the limited funds
available (due to the economic downturn) for the property development
necessary to drive all of this economic growth.
Marlboro Station has a very small bus distribution system. Having
ridden the train twice, I have never seen anyone embark or disembark at
this station. It lies adjacent to the bustling township of Alexandra.
These residents generally cannot afford plane trips for the most part
and mostly have no interest in riding to the airport. Existing taxi
systems serve the needs of these residents who don’t need the train to
get to Sandton either. No significant new development has begun in the
area. And significant new shopping and residential developments would be
necessary to make this station fully functional and rezoning and new
services infrastructure would be needed to support this – all very
costly.
Rosebank has seen some significant new investment. Development began
at the cusp of the economic downturn by large institutional investors
who took the risk and began construction of new malls, refurbishing
others and constructing a hotel and several new office developments.
However, the proposed new residential high rise buildings have not yet
materialised. The city council’s expectation of the inclusion of some
low-cost residential units in Rosebank look like an unrealistic pipe
dream and the upper-end apartments just became too expensive for the
market to support until now. A few of the new developments have been
scaled down, not begun at all or delayed. Capital markets dried up at
the time many developers began construction and, of course, if all
office and retail developments went ahead at the same time, a glut of
space would leave many buildings unoccupied until the market caught up
with the available bulk. The economic crisis of the past two years has
only exacerbated this trend.
The lack of a completed BRT system linking the Rosebank and Sandton
stations with other destinations such as Randburg, Cresta also limits
the rate of development and demand. Where do you go when you get off the
train? And where do you leave your car? Parking at dedicated Gautrain
parking garages is expensive as are the buses that don’t always go near
your home or place of work. I regularly report through Twitter when I
spot a completely empty Gautrain luxury bus whizzing past, taking no-one
anywhere.
Sandton has a similar problem. The Sandton city complex has embarked
on an impressive extension and revamp project that will increase the
size of the shopping mall immensely and add new office and residential
elements. The Gautrain must surely have contributed significantly to
making this viable. One or two new hotels have sprung up spurred on by
the Gautrain and the World Cup. However, with the cup gone and the
global economic slowdown, the skyline of Sandton is not changing quite
as quickly as expected.
So was Jack van der Merwe right after all? In the short term, the
answer must be an unfortunate “No!” We are not going to see the huge
impact on the Gauteng economy as predicted. The net cost of the World
Cup counteracted any gains made by the Gautrain in the short term,
coupled with the effect of the simultaneous global recession. One train
system will not offset the hundreds of thousands of jobs lost in the
region during the downturn. The expected property and retail boom in the
nodes has not brought about those elusive jobs either. In the longer
term, we should see the international economy turning around and freeing
up new capital for development in Midrand (around the Gautrain station
and Grand Central airport) as well as in Rosebank and Sandton. If and
when the city council finds the funds for the new infrastructure
necessary to unlock developments around the Marlboro Station, we could
see a completely new node develop there too.
Until then, there will be some efficiencies coming out of the economy
as a result of the Gautrain, but those expected tens of thousands of
jobs will remain an elusive dream. At most 2,700 long-term jobs and a
few new buildings are simply not what we were offered for our money.
Posted by Ian Ollis.
May 28, 2011
The biggest and most powerful city in Africa is
plagued by a billing crisis, which is a national disgrace. Not only
does it make a mockery of Joburg’s vaunted claims to being a
“world-class African city”, but now threatens to have its mayor tied up
in court battle after court battle. And all this despite a series of
simple fixes waiting in the wings.
I woke up on 23 December 2010 to a sunny holiday
morning. Family were arriving soon from that other place. Off to the
kitchen and made a cup of coffee, my last for a couple of days. Just
then the refrigerator went quiet and the electricity went off. Heard my
neighbour’s diesel generator start up and I realised we had another
power failure! I made my way back to the bedroom to start calling the
city. Of course, the e-services on www.joburg.org.za had been broken for
some time, so I had to physically call. The first call dropped. The
second one told me there was no power failure and then put me on hold
before cutting me off. The third call dropped, the fourth went through
to the wrong person and the fifth one played elevator music for 23
minutes before getting through and finally getting a reference number. I
had a quick shower, while the water was still warm.
I began to worry a little when by the evening there was still no
power and the diesel generator next door began to falter. Cold shower!
The rest you can probably guess. (My neighbour had been cut off by
mistake also). The city was in the midst of another billing crisis.
But it doesn’t need to be like that. It can be sorted out. The first
thing that needs to be done is to staff the municipality properly. I
turned on the radio two weeks ago and a call centre operator from Joburg
Connect was being interviewed anonymously. She told me how she dreaded
answering calls because she found that the staff that were supposed to
do the installations, connections or repairs were not getting it done
and she had run out of excuses to give people. She spoke of 80,000
queries that remained unattended.
If you don’t have sufficiently trained and deployed staff in
sufficient numbers, the system breaks down. A while ago, when I enquired
about the staffing of City Power, I discovered there was only one
qualified electrician at the Hursthill depot able to repair street
lights and electrical infrastructure. This one staff member was
responsible for 79 suburbs! We have to greatly increase the number of
artisans out there doing the work or the call centre will become a giant
toy telephone. We also need many more trained staff in the finance and
billing divisions. One staff member showed me their office with piles
and piles of files full of complaints and queries awaiting attention.
“They have been lying there for three months unattended, because there
are so many new complaints coming from the public who walk into this
office every day. I will never get back to those files.” The
staff-to-query ratio is just too depressing.
Training is the second problem currently causing a headache in the
system. That same call centre agent told us on the radio how she did not
understand the new computer software because she had not had adequate
training. This has been an ongoing issue. The new SAP-based accounting
and operations software was supplied via a BEE partner that went belly
up. Since then there has been a spat between two large multinationals
about who is responsible for the fiasco with the system.
Essentially the city must take responsibility. When you implement a
new software system across a city as large as Johannesburg, you have to
have excellent training over a fairly lengthy period and you have to
stress-test the system in parallel until you are satisfied it will do
the job. You then still have to supply on-site assistants to help the
staff through teething problems for at least six months to prevent the
kind of crisis we are seeing. The day I visited the “People’s Centre,”
there were no IT or SAP staff to assist. The existing staff did not
know how to sort out my problem, and those that did, lacked the
“permission” or password access to do so.
I had sold my apartment in January 2010 and had it transferred to the
new owner. The city owes me about R8,500 from that clearance
certificate. My new property was transferred into my name on 1 April
2010 (I should have known). Since then, no amount of letters from my
attorney, or calls or emails from me have been able to get the rebate or
to receive a correct bill from the City of Joburg for my new property.
Early in 2010, I dutifully opened a new account for water and
electricity and paid my deposit – it still reflects a zero balance. When
the new billing system kicked in, the poorly trained officials did not
know what to do with the meters from my new house, so they created a new
“fake” bill, number 550018770 and sent it to the previous owner! She,
surprise, surprise, didn’t pay and they cut her/me off in December. All
because the staff are over-worked due to the high volume and lack proper
training. I still have been unable, with some political connections, to
get it rectified. I live in hope.
The third remedy urgently needed, in my view, with this system is a
software system similar to those employed by the banks. FNB, Standard
and Nedbank have all called me over the past six months, during my
renovations, to check that the unusual transactions on my bank accounts
were legitimate. The city needs such an early warning software package
to pick up unusually high or low bills and flag them for attention by a
dedicated team. This will prevent bills for R250,000 being sent to
pensioners for payment. A friend of mine (aged 70 plus) living in
Parktown North received a bill for R68,000 and was told to pay first and
argue later! Very humane! If the banks can do it, so can the City of
Johannesburg!
The fourth need is for a dedicated team to deal with the backlog and
the large volume of new complaints arriving at the city each day. They
need to have those magic passwords and permissions to cut through the
red tape and rectify the serious cases. This means they cannot be entry
level recruits with no training! They must be able to instantly place a
moratorium on cut-offs of accounts they are dealing with. City
councillors should have access to this team to speedily resolve problem
cases.
Finally, the city needs a larger, well-trained team in the office
that handles clearance certificates. The number of people who have sued,
or are in the process of suing the city over the lack of clearance
certificates is getting into a zone marked “ridiculous”. After judgments
against the city in court, accounts remain unresolved. One woman sold
her property and the city continued to bill her for water and
electricity for many months. She then, in desperation had prepared
meters installed and the city continued to charge her an average amount
on her bill. Due to the accumulating bill, she was unable to acquire a
clearance certificate to transfer her property. There is clearly a
problem with transfer of meters from previous owners to new owners and
the office handling transfers is unable to resolve this. What will we do
when the mayor is arrested for contempt of court for failing to comply
with several court orders requiring clearance certificates to be issued?
All of these problems are relatively simple and can be solved with
sufficient trained and qualified staff and correct software, coupled
with a helpline or priority queue for the unusual problems. In the
meantime, Mr Masondo, can I please have my bill? Name's Ollis. Ian
Ollis.
Posted by Ian Ollis.
May 28, 2011
Urban sprawl and everything that goes with it are
global crises, and rapidly approaching disastrous proportions in South
Africa. Solving the problems is fraught with every conceivable problem –
all the more reason to get started right away.
I got chatting to Arnold Smit on the plane to
Parliament this week about the future of South African cities. He
represents the Centre for Business in Society at the University of
Stellenbosch Business School. Long ago I became concerned about the
long-term future of cities in the world and South African cities in
particular, because the general population and most city fathers do not
understand the crisis into which we are heading. Smit made the point to
me that you probably only need about 4% of society to fully understand
the crisis, but the trouble in SA is that often it’s not the correct 4%
of leadership that understand. If local and provincial government, let
alone national government do not grasp the world crisis, then we are
simply not going to be able to respond until it’s too late.
Personally I don’t like scaremongering. The old apartheid government
put me off that kind of politics. With the racial epithets being thrown
around at present over the new employment equity laws, I have avoided
writing on my perspectives on race this week. I’ll keep that article for
when we are not in the middle of electioneering.
However, my first concern about the impending city crisis is that
people seem to relegate the discussion to green issues, which must be
looked after by those people with green fingers and degrees from
Oxbridge. You can even see this view reflected in Wikipedia:
“sustainable city, or eco-city is a city designed with consideration of
environmental impact”. Now, the term “sustainable city” has to mean
“eco-city” which is a pity. That’s far too narrow a scope for the
problem we face.
The crisis in our cities is we cannot sustain our cities with current
practices in the full sense of sustain, including, (but not limited to)
financial planning, spatial and town planning, roads and storm water
infrastructure, water, electricity and sewer installation and recycling
as well as the human migration and sustainable employment practices.
It’s not just a green revolution that we need. The environmental crisis
is but a subset of the problem. With current practices, our cities are
not sustainable financially either. Nor can we control people movements
and job opportunities, which makes spatial and urban planning very
difficult.
Let’s tackle infrastructure first. Most large modern metropolitan
conglomerates were built around 100 years ago, or greatly enlarged
around that time after the advent of motorised transport, creating the
typical American suburbia. It has taken us roughly 100 years to realise
the headache we have built as a result. Environmentalists have listed
the challenge for us as being a depletion of resources. The resources of
the planet are being consumed to maintain our cities faster than we can
replace them. The typical example quoted is how London would die as a
city if the air and shipping routes were cut off. There would not be
enough produce to keep the city alive and the city would die, being
strangled by a lack of natural and processed resources.
However, the other half of that equation is missed in the green
debate. The problem in a nutshell is that the pipes and cables and
drains of cities installed 100 years ago are now decaying and in need of
repair. Cities around the world require more and more money for
maintenance and replacement of infrastructure to maintain services such
as water, electricity, sewerage and garbage removal. And here’s the
problem: without raising taxes in an unsustainable fashion, how do we
replace that ageing infrastructure without compromising something else?
Inevitably political decisions have to be made. Unrealistic increases
are avoided and above-ground visible service delivery is compromised to
replace the essential services below the ground that carry our water and
so on.
This in turn results in dirty and unsafe spaces above ground as the
funds for “clean and safe” get spent beneath our feet. Of course, in the
US and Britain a new vehicle was devised to deal with that, called a
City Improvement District. Property owners, both business and
residential, have to resort to paying extra fees to clean up their
“hood”. I remember my amazement years ago when it finally dawned on me
that the CIDs in SA were not a result of business nodes needing to fix
the funding gap caused by the current government in SA, (the need to
siphon off funds for the townships where services had never been
properly installed). I was walking back to my hotel in Manhattan from a
church service one Sunday morning with my head down as it was snowing on
Madison Avenue and as I picked up my head to look for traffic at the
intersection, there was a man in an overall with a sign on his back
“Madison Avenue Business Improvement District,” and the penny dropped
instantly.
Cities have tried various means to deal with the big three issues –
urbanisation leading to a growing housing need, limiting the insatiable
increase in the need for service infrastructure and the growing safety
and security needs that have arisen. One key solution has been to force
high-rise instead of further urban sprawl, by legislating an urban edge
to the city and preventing new developments outside that set perimeter.
The City of Johannesburg approved such a perimeter some years back to
loud applause from all parties.
However, the ink was barely dry when the city itself was forced to
violate its own legislated urban boundary. Why? We have an added problem
in South Africa. Many of our people still live in shacks and we have to
provide access to affordable housing. That alone bedevils the
equations. The limiting of urban sprawl makes the service infrastructure
cheaper and simpler to maintain because many more individuals are
paying towards the maintenance of one metre of pipe or cable if you go
high rise, than if you spread out. However, building high-rise is also
expensive and we are in a hurry. The ANC realises it is sitting on a
ticking time bomb. If it cannot build sufficient low-cost houses for the
poor in a short time, the country and the ruling party could face a
Mubarak-scenario. The homeless may revolt and bring down the government -
and not through the ballot box, which is the preferred method. When you
are in a hurry to build low-cost housing for large numbers of rapidly
urbanising underemployed workers, you can’t afford high rise. It’s just
too costly and takes too long. End result – RDP housing. But how do you
build RDP housing in cities like Johannesburg, Durban or Cape Town,
where the available land located close to the work opportunities is
limited? You are forced to go further and further out to find more
cheaper land.
This creates untold complications. Johannesburg had to violate its
own urban boundary within 12 months of approving it. This made the
commitment to high rise, meaningless. The cost of the new pipelines and
electrical infrastructure had to be taken from elsewhere, usually from
maintenance of roads, sewers, storm water drains, street cleaning, park
maintenance and the like. Still not enough money – sell off the parks
and open spaces. The Rosebank library and park in Johannesburg is
apparently now quietly up for sale and an official reportedly told the
local ward councillor, “it’s because the council needs the money”.
Carefully add up how much parkland has been sold off in Johannesburg
over the past 10 years and you will be amazed. The opposition is
constantly fighting the sale of a park or open space because concrete
jungles are not good for societies.
I haven’t even spoken about the transport nightmare this creates. If
you build houses in Diepsloot or Zandspruit, or even Cosmo City (Thabo
Mbeki’s flagship project) you soon realise there are no BRT buses,
Gautrains or any other real public transport to feed those areas. Taxis
take over and the environment takes a hammering because of the pollution
of too many fossil-fuel burners on the roads. Then, of course, you have
to widen the roads, build bridges for cars and pedestrians and you
never really get to laying the pavements – the cost/benefit analysis
kills you… every time. In simple terms, while you are laying the pipes
in “Norweto”, the roads in Bertrams and security in Hillbrow collapse,
not to mention the litter in Illovo or the uncut grass in Delta Park.
This is really just the introduction to the problem. The solutions
are complex and the choices are difficult and mired in political will
and electioneering mandates. However, we cannot ignore this looming
crisis. If we do not take action soon, our cities will be unaffordable,
both financially and environmentally, and as my new friend pointed out,
we haven’t yet begun to deal with the skills shortages, the taxpayer
versus social grant equation, the illegal immigrant question and those
other legacies of apartheid. If the US and the UK struggled, we had
better face up to our challenge soon. Hoping that populist politics is
going to help, is like sticking your head in a smelly place.
Posted by Ian Ollis.
May 28, 2011
Marie Antoinette’s notorious remark when told the
French masses were revolting because they had no bread to eat, was to
say, “Then let them eat cake”. Not only was it the zenith of arrogance,
but demonstrated the most reprehensible detachment from the realities
of her people’s suffering. The idiom of having your cake and eating it
(meaning to enjoy consuming something and yet to preserve it, like a
never-emptying bottle of single-malt Scotch) is only a slightly
different perspective on the same idiocy.
A therapist once told me that one of my personal
weaknesses is that I love to have my cake and eat it - I want it all! If
someone offers me pistachio ice cream or banana, I usually want both. I
mean, why choose? Mercedes or BMW? Send me one of each. Throw in an
Audi, too. There is unfortunately that little problem: How do I afford
both, or sometimes either? And therein lies the rub, of course.
Affordability.
South Africa faces a similar problem. In simple terms, it is the case
of Cosatu and other unions wanting better working conditions for their
workers, and government needing to provide more jobs. Unfortunately
government has to choose, because resources are limited. Sounds like a
simple choice, doesn’t it? Well.
Of course government in general and the president and minister of
finance in particular, have a prickly problem in dealing with this
choice. It is not only government’s resources that are limited, but also
private resources, particularly in business are limited. And because
these resources are finite, choices have to be made. The simplistic
model is: Do we apply more resources to create more jobs or do we apply
more resources to improve the working conditions, job security and
remuneration of existing, lower paid workers. The collective opposition
generally is pushing for more jobs first. Cosatu is pushing for better
quality jobs and applies a slightly misrepresented phrase “decent work”,
borrowed from the International Labour Organisation to champion their
cause. Of course, I say misrepresented because there is a difference
between what the ILO understands as “decent work” and what Cosatu
champions as “decent work”. The ILO has an emphasis on safety and
security in the work place, and ancillary services such as unemployment
insurance. Cosatu wants higher wages, job security and benefits,
benefits, benefits. The ruling party is afraid of making this choice and
resorts to explaining their philosophy with the almost meaningless
(economically speaking) catchphrase “decent work for all”. Which
side-steps the issue completely.
As we develop our new democracy, as citizens, we are trying to decide
what government’s role is in the workplace and society generally and,
therefore, in this jobs paradigm. How much intervention in the market by
government is tolerable for us as a country and an electorate? Do we
want government to force companies to provide “better quality” jobs and
what does that mean? Do we want government to directly create jobs and
how exactly can they do that? These are complex and far reaching
decisions involving one’s theory of economics, a subject which I will
not venture into in this short piece.
At the very least, we do need to evaluate government’s performance in
developing a policy and implementing that policy as well as evaluating
the results and whether we are satisfied with our government’s
performance in this regard.
Unfortunately, our government appears to have become stuck. The
president and finance minister, in simple terms, are being asked to
choose between the unionised and the unemployed. And therein lies the
current crisis and stalemate in the ruling alliance. They would prefer
to do both. Government wants better working conditions for the workers
in the unions that support the ruling party at the poles, and more jobs
for the unemployed workers, who mostly vote ANC too. It’s not an
artificial conundrum either. Labour policy and economic policy have to
align to unlock the economy. In the Mandela era, for largely similar
reasons, the economic policy (at the time Washington consensus) and
labour policy (protecting workers with complex and stifling labour laws)
went in very different directions leading to a mixed and sluggish
economy.
The recent spat in this regard in the media between the new labour
minister, the general secretary of the ANC and Cosatu highlighted the
squabble. Initially government tried to get out of the logjam by
focusing on more jobs, at least at the level of debate. Cosatu rattled
its sabres and the genie went back in the bottle – and we went back to
the logjam. Then the president tabled his State of the Nation speech and
we got a look at the budget – jobs, jobs, jobs, but not too much on the
quality side, leaving Cosatu unhappy again. The budget indicates
incentives for larger companies to take on youth, Seta “learners” and
the like.
The president then focused the administration on doing a completely
disastrous thing – each department is instructed to provide a plan to
create more jobs and he makes all cabinet ministers responsible for
coming up with plans to create more government jobs. Having looked at
the strategic plan for the labour department, by way of example,
together with their new budget, it doesn’t look like there is anything
significant there.
Finally, the president appealed to business to “do more” because it
is, of course, a partnership. Why should business help the president in
his need to create jobs? No reasons given.
Taken together, these measures present the economy with a lethal
cocktail. The cash/tax incentive to take on more workers is the only
part that shows promise.
The attempt by the president to force government departments to
create jobs is going to be government’s downfall. This is a
communist-style solution and it will not work. Even if departments are
able to create new positions in the public service, by bloating budgets,
this approach will be unsustainable in the long term. The reason is
easy to see. We have less than 6 million income tax payers, 14.5 million
people on welfare and an already bloated public service. If you employ
more people in the public service, you have to up the tax revenue on
those same 5 million people or you have to radically increase the
country’s debt (other solutions, like printing more money, are simply
too horrific to contemplate). Either of those methods will cause an
economic collapse sooner than we think.
Government now faces a crisis and it appears there has been a failure
of leadership at the crucial moment. Cabinet and its bosses are unable
to make the choice, and leadership has avoided the decision by promising
decent work and more jobs at the same time as kind of a miracle. They
have offered a sort of youth wage subsidy (good), forced government
departments to create more jobs (bad) and tabled draft labour laws which
make it much more difficult (and costly) to do business in SA
(unbelievably bad). Foreign investment will dry up if these laws are
implemented.
We cannot have our cake and eat it. Jobs can only be created in
future in the private sector. Government cannot employ any more workers
using funds off the current tax base. Instead of asking for the private
sector to create jobs and then lining government policy up to prevent
that from happening, we should see leadership making the difficult
choices. We need to assist the private sector to be more competitive, we
need to support the development of new small businesses and we need to
ramp up our apprenticeship system. Laws need to be jobs-friendly and the
budget and labour laws should line up with these priorities.
In the current climate, keeping Cosatu happy and simultaneously
creating new sustainable jobs in this economy is simply unachievable.
The masses of unemployed need bread and Cosatu’s solution, in a
perverted sense similar to Marie Antoinette, is to ask for more cake.
Posted by Ian Ollis.
May 28, 2011
It is a truism that history is written by the
conqueror – or whoever rules at any given time. Even the origins of the
Universe seem fraught with divergent “interpretations”. And if history
that old can be messed with, what about recent history? Is consensus
about history possible?
The first time I remember consciously thinking
about the ownership of our history was in what used to be called
standard eight (grade 10) at school. I had been allocated to the higher
grade history class and the history teacher was handing out our
textbooks for the year. Erith Budge taught history at my school and he
first handed out a slim textbook published in South Africa: “This is the
textbook recommended by the National Party education system,” he
remarked, “Take this one home and lock it up. Just be sure to bring it
back by the end of the year and hand it in.”
He then handed out a much thicker tome, published in Great Britain,
which he proceeded to tell us was the book we would mostly be using in
class to understand our history. This textbook, he believed, would give
us a more international perspective on our history, as a nation, and the
quality of the text was much higher.
Budge had been quite an ingenious teacher. He understood the weakness
of the skewed perspective of the apartheid-era history being taught. To
help us, he had ordered the much thicker textbooks which were supposed
to be used only for the teachers to gain background material. He had
ordered the four full copies which teachers were allowed each year,
until he had enough copies for our whole class. We guarded those very
valuable textbooks with our lives, covered them in plastic and returned
them in pristine condition at the end of the year. All of that taught me
that there was more than one perspective on history and that those in
power often control what we learn as children. I have always suspected
since that the prevailing ideological view of history, politics and
economics is really just one temporary perspective, which should be
challenged and reviewed from time to time.
The history of Africa has been written many times and from different
perspectives. I am currently reading “The Scramble for Africa” by Thomas
Pakenham ... it’s a real tome! As histories of Africa go, it is
probably a good one. But each history of Africa seems to be written with
a strong agenda and successive governments in South Africa have taught
our children history from the perspective of their worldview often
having a strong ideological bias, to prop up some ideological agenda or
support government propaganda. The Dutch Colonial Era, The British
colonial era, the Smuts government, The National Party apartheid
history, and more recently, the Post-Apartheid story taught in our
schools from a liberation perspective as if it too is the “correct”
view.
What has begun to concern me is the simplistic divide into the two
broad kinds of African history. There is the colonial-type history
showing how the colonial powers brought good of various kinds to Africa –
Packenham refers to the three Cs : Commerce, Christianity and
Civilisation - and opened Africa up to the world. Trade boomed and
Western powers delivered infrastructure and tools, while teaching
civilised values and worked to stamp out unhealthy, dangerous and
uneconomical practices.
Then there are the new or “modern” histories. Africa was raped by the
western or colonial powers. However, Africans were inherently good
before the colonial powers came and oppressed people, dragging them into
slavery and stealing the natural resources. African people should have
been left in their pristine natural conditions and the attempt has been
to expunge colonialism from Africa, put African people back in charge
and liberate them from their oppressors. Everything native and natural
was good and everything colonial and imported was bad.
People then get to choose which of these two streams to follow and
which story to plug their own national identity into. These histories
have been emphasised by successive African governments seeking to give
legitimacy to their particular government’s raison d’etre.
I don’t buy either neat package. Africa’s history, like the history
of all regions, has been very messy and complex and the events and
stories do not neatly fit into one or other of these tidy patterns.
Africa was definitely not a place of wild people just waiting for
Europeans to bring the enlightenment and civilisation. But also, Western
medicine made a huge impact in keeping many who would otherwise have
died alive. Does anyone really want us to go back to traditional
medicine only? No antibiotics of any kind? No ultrasound equipment? No
railroads to transport goods to and from the coast? No western
educational methods? At all?
And was Africa really all that pristine before colonialism? What
about the cannibalism in West Africa? What about the Arab slave trade
predating Western colonisation? What about the continuous internecine
tribal warfare? Was this really all that ideal?
I would suggest we need a new attempt at writing the history of
Africa, being more honest than colonialists and Africanists would like
us to be. A new position aiming to provide a holistic approach to our
history, written perhaps by a more dispassionate party without a vested
interest in defending a political ideology, that most governments get
caught up in. We need a new revised perspective on African and South
African history.
Obviously there is the risk, in South Africa particularly, that we
are too close to recent events in our own history, such as the end of
apartheid in 1994 to provide enough distance and perspective on such a
new history of South Africa. However, what worries me even more is what
the current generation of children is being taught in the meantime? Is
the current accepted version of history merely a lurch in a new
unbalanced direction with a distinctly Africanist, anti-colonial and
anti-western perspective, which future generations will need to correct
yet again.
Perhaps we are still too close to events and perhaps we shall have to
wait, but I would hope there is a more neutral position emerging from
contradictory voices, perhaps from outside our borders, that will help
us gain perspective on African history, and South African history too,
but taking an even longer view, looking further back and standing as
“far away” from current events as possible to develop a third way - a
more holistic perspective on our situation, our place in the world.
I for one, have become as tired of hearing the current politically
correct version of our history as I was tired of hearing the previous
one, and I would prefer that children and young people in our schools
and colleges think much further than that. We owe it to ourselves and to
our shared future.
Posted by Ian Ollis.
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