Realism on fowl imports

Chicken importers don’t like having to justify their applications for import tariff rebates. Paul Matthew says trade regulator Itac’s conditions mean few, if any, applications will be approved (“Itac rebates have the fox guarding the chickens”, February 13). He complains that the Itac rebate guidelines “include a quota system, historically disadvantaged individual requirements and a process to justify shortages”.

What he seems to resent most is that Itac and the agriculture department have to determine whether there is a shortage of chicken on the local market and that they will probably rely, at least in part, on information from poultry producers.

Who else does he think will know how many chickens are being produced weekly? Matthew’s problem is that the rebates would be extremely profitable for importers, bringing higher volumes and margins, but if there is no chicken shortage there will be no rebate permits.

The guidelines state clearly that temporary rebates will be granted only if there is a shortage of chicken on the local market, and then only if that shortage is the result of a bird flu outbreak. Both conditions are necessary. Importers will know that neither pertains now. Hence Matthew’s concern that “the likelihood of any rebates being granted is remote”.

He complains about rebates being in force for only three months at a time. Importers dreamed of a 12-month revenue bonanza, but were rebuffed. Instead of blaming their woes on Itac and the local poultry industry, they should look closer to home.

Francois Baird Founder, FairPlay