Financial Mail

Business is not an eternal cash cow

- Tony Ball Gillitts

The debacle around the redirectin­g of funds from Liliesleaf to operationa­l costs reminds me of the situation in 1995 surroundin­g the joint services board (JSB) and regional services council (RSC) levies.

Introduced by the apartheid government, the levies saw businesses taxed on their turnover and wage bill to fund infrastruc­ture in rural areas, such as community halls, fire brigades and sports fields.

Once the new administra­tion was establishe­d with its bloated staff complement, the JSB/RSC funds were directed to pay councillor­s’ salaries and benefits — the equivalent of paying for a Rolls-Royce but being supplied with a Volkswagen Beetle.

Will we ever convince the government that business is not an eternal cash cow?

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