WEDNESDAY, 12.15PM:
THE National Home Builders’ Registration Council Bill, which will make a five-year warranty standard for all new houses, will soon be tabled in Parliament.
Builders will have to be registered with the council if they want access to bank mortgages. The council will become a statutory body, and all houses built will be registered with it. A quality workmanship manual will be produced along lines defined by the bill and inspectors will ensure builders comply with its provisions.
If builders do not comply with the new provisions, the council will be able to discipline them by either deregistering or suspending them.
The council, which already exists as a non-statutory body, has already deregistered 61 contractors and suspended 57.
The construction industry is not united over the warranty fund issue. The Building Industries Federation of South Africa argued that the council and the fund, which will be financed by a 1,3% levy on all houses built, should be separate. But the Bill is likely to create a single fund entrenched for five years.
BUSINESS BRIEFS
NAM DELAYS GOLD FIELDS CASE
THE Namibian High Court on Wednesday delayed a liquidation application by Gold Fields Namibia, for the fourth time, to next week. President Sam Nujoma’s government and the Mineworkers’ Union are opposing the liquidation application, which threatens thousands of jobs. Nujoma on Wednesday said Gold Fields’ decision to shut down its Tsumeb Corporation’s four copper plants is unjust, and a violation of Namibian regulations. Under Namibian law, he said, the firm should have informed the Ministry of Mines and Energy six months in advance about its difficulties and intention to close. Gold Fields has, however, defended its decision, saying it is in a financial crisis and has been left with no other choice but to apply for liquidation.
OZ CONCERN AT TGWU THREAT
SOUTH Africa’s high commissioner to Australia has been told by the Australian foreign minister of that country’s concern over a threatened boycott on waterfront trade with Australia by the Transport and General Workers’ Union. The threatened TGWU boycott is intended to show solidarity with unionised Australian dockers sacked by Patrick Stevedores. Australian Foreign Minister Alexander Downer said Australia appreciates that a number of unions work on the waterfront and a TGWU action would have limited effect on trade.
JCI BOOSTS GOLD PROFITS
THE JCI Gold Group managed to boost profits more than 27% last quarter, despite the low gold prices. Costs were cut drastically at Randfontein Estates and output lowered at Western Areas. The results were boosted by increased processing of surface reserves. Randfontein managed to reduce its cash costs $20 to $274 an ounce.
MAIZE FUTURES DECLINE
SOUTH African white maize futures prices fell on Tuesday, and are expected to decline further on increased estimates of the crop. On Monday the National Crop Estimates Committee estimated the maize crop at 7416-million tons, up 200-million tons on its previous estimate. The July contract dropped R15 to R712.
SA MORE COMPETITIVE
A NEW survey of the world’s most competitive nations has pushed South Africa up two notches from 44th to 42nd, in a list of 46. South Africa has pushed its way ahead of Venezuela, Colombia, Poland and Russia, but is outgunned by countries like India and Turkey. The list is headed by the United States, Singapore and Hong Kong, while Japan dropped from nine to 18. Europe is led in the competition stakes by Ireland, which is ranked 11th globally, having been propelled to that position by policies that generated “staggering” growth.
BoE GETS NORWICH MAJORITY
FINANCIAL services group Board of Executors (BoE) is about to acquire a majority stake in life company Norwich, through a two-tranche deal believed to be worth R1,6-billion, according to the parties. BoE played the role of “white knight” earlier this year when Norwich was fighting off a hostile takeover attempt by African Life.