Madeleine Wackernagel
Trade and industry minister Alec Erwin has confirmed that long-awaited discussions over the new competition legislation begin in the National Economic Development and Labour Council (Nedlac) today (Friday), two years after the government first drew up plans for a new framework.
Says Erwin: “In terms of an agreement reached between Nedlac and [former trade minister] Trevor Manuel, the basic policy framework of competition policy will be discussed in Nedlac, starting today. To the extent that consensus can be reached, this will be incorporated in the draft bill.
“The bill itself would then go through the parliamentary process. It is the government’s responsibility in Nedlac to represent its policy position. The strength of Nedlac is that crucial constituencies influenced by legislation can provide input to that legislation — which invariably improves its efficacy.”
Negotiations are bound to be sensitive, with the business constituency particularly keen to protect its interests. “It would be naive [for us] to think that business will not try to influence or hamper the process since competition policy — as a body of laws — affects them directly,” says Department of Trade and Industry representative Ismail Lagardien.
Nevertheless, the department is determined to open up the economy to greater competition, in a bid to encourage greater dynamism and adaptability. Its watchwords are transparency and accessibility, removing red-tape and over-regulation.
So much for the broad goals; the detail was left very much up to Erwin himself, with some input from outside the department. Erwin is keen to emphasise measures to bring in new competition — as are key unions.
And while there is no fundamental difference in the objectives set out by Manuel and Erwin, it was hoped that this time the policy would take a more holistic approach, incorporating a range of associated issues, including small business and taxation, for example.
But negotiation is very much key to the process. Says Erwin: “It is now possible through the system of public hearings in parliament for all viewpoints to be heard in a very transparent manner.
“Accordingly, we get the benefits of hindsight of those directly affected by legislation interacting with the government, and parliament retains its role as the guardian of all possible interests in the legislation.”
But too much talk could delay action further. Amid speculation of battles between the old and new guards, there is a school of thought that believes the government should have gone ahead and implemented its plan as it did with the macro- economic strategy.
Erwin disagrees: “Competition policy is not a macro- economic issue, but an institutional matter that is part of broader economic policy.”
Says Lagardien: “Competition policy is a very broad, very delicate and extremely complex process, which needs a thorough approach to achieve maximum efficacy.” And besides, the Nedlac Act of 1994 stipulates that Nedlac consider all significant changes to social and economic policy before it is implemented and introduced to Parliament.