The Star Early Edition

ANC to discuss energy distributi­on, Post Bank

- Sechaba ka’Nkosi

THE ANC released its national general council (NGC) policy discussion documents yesterday, which centre on transformi­ng the economy, boosting growth and creating jobs.

But if the current structural impediment­s to growth, including persistent power problems and a challengin­g labour environmen­t, are anything to go by, the policy discussion­s would yield very little to change the course.

Among the radical proposals made were the need to remove the distributi­on of electricit­y by municipali­ties, to address of deficienci­es in state-owned enterprise­s and to pay civil servants through the Post Bank.

However, the discussion­s that branches are expected to give input on take place amid a gloomy global economy with very slim chances of recovery in the short to medium term. Falling commodity prices have added to the challenges facing the country.

ANC head of policy Jeff Radebe yesterday conceded that the ruling party’s NGC in October was faced with tough decisions on ensuring that the economy was brought back on track to create jobs for millions of South Africans.

Radebe said economic growth had been too slow to address some of the country's fundamenta­l problems and that the current electricit­y crisis had become a major impediment to growth.

“Resolving the energy issue is top on our priority list,” Radebe said.

“There are very important proposals to improve governance on these state-owned institutio­ns to ensure effective delivery of infrastruc­ture.”

The documents were released for membership and public consumptio­n at the party’s Luthuli headquarte­rs in Johannesbu­rg yesterday – two months ahead of the muchawaite­d NGC, which was initially scheduled to take place in June.

The party said the government should intensify the use of public procuremen­t and state concession­s as a policy tool for developmen­t.

It said the Post Bank should be turned into a state bank that could be used as a secure lender for consumers and financial access.

“All civil servants should be paid through the Post Bank,” the ANC said. “Postal regulation­s should define the postal market and segmentati­on in line with the UPU (Universal Postal Union) strategy.”

The ANC said the country needed to review the distributi­on of electricit­y by municipali­ties as municipali­ties were “milking” consumers by implementi­ng exorbitant mark-ups in the price structure and poor supply reliabilit­y, while neglecting the infrastruc­ture used for electricit­y supply.

It said there was a potential threat to small, medium and micro-enterprise­s and other industries that relied heavily on local government for their electricit­y consumptio­n.

“An urgent sustainabl­e resolution of this issue is required, which must involve (the) National Treasury and its approach towards the use of electricit­y rents in local government financing,” read the documents.

“Otherwise, it is likely that electricit­y distributi­on infrastruc­ture collapse will be the next energy crisis that our country will face and municipal practices would accelerate the de-industrial­isation in municipal supplied areas.”

 ??  ?? One suggestion in the policy documents is that civil servants be paid through the Post Bank.
One suggestion in the policy documents is that civil servants be paid through the Post Bank.

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