OWN CORRESPONDENT and AFP, Port Elizabeth | Thursday
THOUGHTLESS government policies are driving South Africa’s farmers to bankruptcy, outgoing Agri SA president Chris du Toit has warned, pleading with government to “just leave us alone.”
Opening the annual congress of the farmers’ organisation, Du Toit said agriculture was seen as an endless source of wealth.
“Unfortunately the camel’s back is breaking,” he told delegates.
“Most politicians are so involved in populist politics that they don’t realise a cornerstone of the economy is crumbling because of government action.”
Agricultural input costs had risen 43.7% since 1995, while product prices had increased by only 16%, he said.
Problems hampering the agricultural sector could mostly be linked to state initiatives, Du Toit said. These included an intended property tax on farm land, minimum wages, delays in a diesel rebate for farmers, labour laws, and a “destructive” excise duty on wine and tobacco.
Du Toit said South African farmers could compete with the best in the world, but were being undermined by state meddling in their industry.
“The things forcing farmers on their knees are mostly happening outside the farm gate,” he said. “If the government could nothing else, it should at least refrain from doing harm.”
Du Toit said the leadership of the ruling African National Congress (ANC) often described entrepreneurs and investors as parasites exploiting workers.
“Despite its apparent support of capitalism, the ANC animal still has a reddish (communist) colour,” he said.
The economy – not party politics – was the common denominator in President Thabo Mbeki’s quest for South Africa to become a proper partner on the international scene.
“To succeed in this, the word ‘comrade’ will have to disappear from the president’s vocabulary,” Du Toit said.
South Africa could not rely on foreign investment as the world was tired of Africa’s failures. It was, therefore, vital that steps be taken to improve local investor confidence.
Instead, people committed to staying in South Africa were being blamed for things going wrong, Du Toit said.