Top industries up turnovers

three external prostheses used to treat a member with a broken leg in the private sector. A broken limb is a PMB condition.

Genesis contended its rules excluded the provision of prostheses in a private hospital and only covered those fitted at state hospitals.

It argued that even if its rules were in contravention of the act and its regulations‚ they were binding on its members until the registrar of the council compelled it to amend its rules.

The court said the rules of a medical scheme could not be seen in isolation and Genesis could not contract out of the obligations set out in the act.

It said the act provided Genesis with the opportunity to manage its liabilities for payments for PMBs by appointing service providers but it had failed to do so‚ and so it was obliged to pay for the member’s prostheses, even though they were fitted in a private hospital.

Genesis said it would apply to the Constitutional Court for leave to appeal. — BDLive TURNOVER in SA’s construction industry rose 28% to reach R393billion last year‚ buttressing an overall increase in earnings by nine major industries.

But firms are battling rapid increases in employee costs‚ which threatens future job creation.

Total turnover in the nine sectors was up 11% to R7.8-trillion last year compared with 2013.

Supporting the earnings growth in the sectors was an upswing in demand and in the price of goods and services‚ Statistics SA’s annual financial statistics survey showed this week. The industries surveyed by Stats SA are construction‚ business services‚ trade‚ personal services‚ electricity‚ mining and quarrying‚ forestry and fishing‚ and transport.

While net profits rose to about R600-billion last year‚ employee costs shot up to R1-trillion. This big gap suggested SA was “less likely to get out of these difficult industrial relations … that continue to manifest themselves, statisticianPali Lehohla warned.

Construction – particularly investment in new buildings and the maintenance and refurbishment of old ones – saw the biggest gains in turnover. While the sector has seen a slowdown in activity‚ the work of big construction companies is visible‚ particularly in the country’s economic hubs.

Among the biggest projects is the ongoing construction of Eskom’s Medupi power station.

manufacturing

Mining turnover was up 10% to R513-billion last year‚ while manufacturing turnover increased 8.8% to R2.2-trillion.

The strong jump in manufacturing turnover was driven by higher vehicle sales‚ among other factors. However‚ the effects of adverse global conditions on the sector were more visible in their spending on assets.

While five industries increased spending asset accumulation last year compared with 2013‚ manufacturing was among the four industries that saw a decline in capital expenditure.

The turnover increase in the electricity‚ gas and water supply industry was due to a rise in electricity prices and an increase in demand for gas. — BDLive