EMERGING FARMERS BACK COSATU OVER ‘UNACCEPTABLE' POWER HIKES
26 Feb 2010
The National Emergent Red Meat Producers’ Organisation (NERPO) has backed the Congress of South African Trade Unions (COSATU) in its resolute move to mobilize the country into a mass action over approval of ‘unacceptable’ power rate hikes; should NEDLAC negotiations fall short of a progressive solution. The power rate hikes were approved by the National Energy Regulator of South Africa (NERSA) to grant ESKOM powers to escalate electricity rates by 24.8% for 2010, 25.8 in 2011 and 25.9 by 2012.
The Cabinet has yesterday supported NERSA’s decision to grant ESKOM a nominal 24.8% tariff increase.
“Government’s decision to support such a move will cost an ordinary emerging farmer almost double his cost of doing business, it is totally absurd. Emerging farmers will have no option but to back C0SATU and take to the streets their concerns on this matter. As it were, emerging farmers are struggling with access to affordable electricity infrastructure to improve their production levels, now government is aggravating our pain. Last week, the Minister of Finance, announced projected levy hikes on petrol and diesel something that we thought we could stomach, now this? Government should find ways of subsidizing acquisition and distribution of power rather than taking away the little emerging farmers can make for themselves and their families”, said the displeased Aggrey Mahanjana, Group Managing Director.
As a result of power tariff hikes the economy is faced with a strong possibility of inflation targets going up to over 7 per cent. South African Chamber of Commerce and Industry (Saaci), has also warned of 250 000 job losses.
“We had hoped that government will acknowledge the fact that we are still reeling from the global economic recession that saw many losing their jobs and allowing these tariff increases for the next three years is suicidal on the part of government. There is no way small and medium businesses will survive under such financial strain”, Mahanjana argued.
According to NERPO’s Group Managing Director, “With fuel and power rate hikes, government is making a mockery of the land reform programme. The land reform beneficiaries are currently struggling to sustain the farms they have acquired through the land redistribution programme. For them to run a successful farming enterprises, they need to ensure that the irrigation facilities are working properly, water pumps and the farm operational machinery are also working and all of these require fuel and power”.
COSATU have also warned that the tariff hike “is 4 times the current inflation rates”.
NERPO is the official mouthpiece of the emerging livestock farmers who own about 40% of the country’s livestock but account for less than 5% of the red meat’s total market share. NERPO is determined to ensure that its members become major economic players in the commercial value chain of the red meat industry.
End.
Further Enquiries:
Aggrey Mahanjana
Group Managing Director
Cell : +27 (0) 82 556 7297
Tell : +27 (0) 12 348 8566
Email : gmd@nerpo.org.za
Website: www.nerpo.org.za
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