DA policy evolving

SIR — Tim Cohen is right to notice that the Democratic Alliance’s (DA’s) new economic policy document — the 8% growth plan — makes little mention of mining (The Bottom Line, July 30). While the document is comprehensive, it is not exhaustive. You will notice that we have not yet included any sectorspecific plans.

In general, we know what we want: large-scale growth in mining in a way that is environmentally sustainable and in a way that creates jobs. We know that should be achieved by tackling the constraints to growth that have arisen from wrong-headed, unclear and badly applied regulation. We know that growing mining will leverage the competitive advantage we have in our vast mineral wealth to help grow the economy.

Constructing particular alternative policies for mining would be premature given that current government mining policy remains unclear. While the African National Congress (ANC) vacillates between nationalisation and a slightly streamlined version of the status quo, it is hard for us to deconstruct and reconstruct the details of mining policy in a way we think will make it work better for all South Africans.

It is, however, clear that what the ANC has put on the table shows they have not even begun to properly diagnose or indeed recognise what effect their mining legislation has had on the industry. While most pundits seem to be ruling out nationalisation, whatever policy direction will be decided on at Mangaung in December seems likely to add to the burdens of an industry which is already distorted by the excessively complex demands of government.

An important philosophical starting point is that the DA believes in an efficient mining industry. Miners should do what they do best — mining. The ANC sees mining as a band aid to deliver houses, municipal infrastructure and education, among others.

The details of DA mining policy will be rolled out over the next year — once we are clearer on what we are dealing with. Watch this space.