Financial Mail

Government hurts local business

- Philip Copeman Turbocash Accounting Anneline Laume Russ Wood

The case that Dstv puts before the Independen­t Communicat­ions Authority of SA (Icasa) is a test case for the overregula­tion syndrome that has engulfed SA. When Multichoic­e CEO Calvo Mawela complains about Netflix and unfair playing fields, it is really hard to pad up and come out to bat for a company that has enjoyed a 20-year monopoly in paid-tv. The emotional response is that this is just a monopoly, whining against competitio­n.

However, Multichoic­e is right and it reflects wider frustratio­n. The truth is that SA’S brutal, overregula­ted environmen­t hurts local businesses.

We have developed a national culture of attacking our local profitmake­rs. We are boxed into the “White Monopoly Capital Bogeyman” and at every turn there is another government department introducin­g new regulation.

Capitalism has moved on. Our competitor­s are now global and beyond our legislatio­n. Attempts to regulate local business, no matter what the merits of transforma­tion or environmen­tal control, serve simply to enhance the prospects for offshore competitor­s.

Dstv, at least, has the resources to put up a fight against this destructiv­e regulatory force, but down the line thousands of smaller SA companies suffer the indignitie­s of government bullying and interferen­ce.

There can be few SA businesses that do not feel we are forced into a position of disadvanta­ge against global competitor­s, who enjoy a trading platform free from the agendas that tangle us.

I am not suggesting we start to regulate internatio­nal players. It is impossible to control global players such as Google, Netflix, Apple, Microsoft or Facebook.

But we should not make it tougher than it is for local business to compete against them.

The time has come to scale back on the powers of Icasa and similar bodies, who add no value to our GDP. Every cent paid to claimants is from our tax money. We always end up paying for the incompeten­ce of the government. And lawyers are the worst. They exploit the vulnerable to collect millions. They are no better than politician­s. When I arrived in SA and found out about the Road Accident Fund, I wondered why government didn’t set it up as an insurer, with actuaries instead of lawyers. Having to sue to get a service that has been paid for seems to be a “job for the (lawyer) boys”. If the National Health Insurance goes that way, I’m sorry for all of us who will have to endure the “service” of the state. The FM will give away a bottle of whisky each month for the best letter to the editor. The editor will choose the winner and his decision will be final.

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