Tariff protection is now top of the list

THE STEEL and Engineering Federation of South Africa (Seifsa) has reiterated the call for urgent implementation of tariff protection for the steel industry to stem the loss of jobs in the sector.

Seifsa chief executive Kaizer Nyatsumba acknowledged arguments advanced that tariff were a double-edged sword, which could also work to the detriment of South African industry, but that the country was facing a crisis it needed to address urgently before other means could be considered.

“Let us urgently have the protective tariffs in place up to World Trade Organisation sanction levels. Let’s ensure ambitious plans in the National Development Plan are implemented because infrastructure development is vital and it will stimulate developments, stimulate our sector,” Nyatsumba said, after he was asked to summarise Seifsa’s suggestions to stem the job cuts.

This comes as Arcelor-Mittal South Africa, Evraz Highveld Steel and Scaw Metals have together announced close to in 3 000 job cuts because of the pressure companies faced from cheap imports, high labour costs and low commodity prices.

“There is need to urgently review some of the critical legislation in the country. We need to ensure that the government, business and labour recognise one another for the partners that they are and work together in identifying the challenges that confront us and devise solutions to those challenges.

“And where some legislation might be a stumbling block, it might have been appropriate at some stage, but it is now that we need to have the courage to deal with it,” he said.

He also suggested that there be a designation of industries so that vulnerable subsectors of the economy could be identified and protected against unfair competition with imports from countries where production was subsidised.

“Designation will have the effect of forcing government departments at national, local and provincial level as well as state owned companies… to support local manufacturers,” he said.