Business not to blame

Instead of contributing to a meaningful debate on SA’s socioeconomic challenges, Shawn Hattingh’s article (Class battle lies at heart of service-delivery protests, June 23) will probably only fuel the fires of discontent of the poor while making the better-off hot under the collar.

The notion that white and black capitalists have somehow been ganging up with state officials and politicians to wage a war against the poor is ludicrous.

The business sector is far too busy defending itself against an antagonistic government, hostile unions, onerous labour legislation, a dysfunctional public service, policy uncertainty and competition.

Throw in the effect of irrational and mischievous decisions by the political leadership and the lack of investment in productive capacity by local and foreign capitalists and the resultant absence of growth and employment comes as no surprise.

The pursuit of profit is what businesses do — it leads to increased contributions to the fiscus, rewards risk-taking and generates funding for expansion, growth and increased employment.

The company tax rate has been reduced over time, but a secondary tax was introduced to be replaced by a dividend withholding tax.

The dire situation in which working-class communities find themselves and against which they rightfully protest is to a large extent the unintended consequence of wrong priorities, bad policies, incompetence and corruption.

The government has allowed local authorities to grow their payrolls to such an extent that the funds available for the maintenance of infrastructure and delivery of services are in many cases inadequate.

Inflated contracts as well as irregular and wasteful expenditure further erode the funds intended for the alleviation of the appalling circumstances in which the affected communities find themselves.

Blignault Gouws Pretoria