Government should focus on economics rather than politics right now

26 August 2015

It should be the South African government's highest priority to stabilize the economy and ward off the threat of recession, says TAU SA President, Mr. Louis Meintjes.

Mr. Meintjes responded to shocking figures that indicated that the country's economy shrunk by 1.3% the second quarter, while agriculture shrunk 17.4%.

"The decline in agriculture was mainly due to the drought in last year's summer rainfall areas. Currently there is also a drought in some of the winter rainfall areas and forecasters warned that the El Nino system can provide for another dry year, which could mean a repetition of this trend which from a climatical point of view, is not far –fetched. Government has to make an early provision for this," said Mr. Meintjes.

The power supply problems also had an impact on agriculture, Mr. Meintjes believes. "I want to call on the government right to urgently focus their attention to the economic problems. It should start with those matters of which government has direct control. Energy and financial resources should be utilised to ensure that in future Eskom will be able to meet demand. This is a government responsibility and battered consumers should not to be punished with further rate increases," said Mr. Meintjes.

"Furthermore it is essential that economic stability be restored in all sectors, especially in agriculture. Drought relief for all affected areas is of the utmost importance. Failed political agendas which have plunged agriculture into uncertainty, should be put on hold, at least until the economy has stabilized.  By doing this, farmers will have the opportunity to focus on primary food production thus ensuring that South Africa will be able to put food on the table. Any action that forces individuals or groups of farmers to seek legal recourse to counter ideological policy issues, and which would imply high legal costs, will only increase the problems of the agricultural sector," said Mr. Meintjes

"The government should also contribute to lessen the impact of excessive wage demands and minimum wages. All are now forced to reduce expenditure. Unrealistic wage increases, especially minimum wages, will only worsen the problem, and under the current circumstances Government will surely not wish to be held responsible for further job losses," said Mr Meintjes.

Statement issued by TAU SA President, Mr. Louis Meintjes, August 26 2015