/ 12 October 2001

Manuel threatens W Cape on ‘privatisation’

Marianne Merten

Minister of Finance Trevor Manuel has warned the Western Cape government that he will use the Constitutional Court to stop it transforming the provincial agriculture department into a semi-autonomous public entity, arguing that the move violates legislative requirements and the constitutional principle of cooperative governance.

Another clash between central government and the Western Cape seems imminent, as provincial authorities are adamant that the Western Cape Agricultural Development Service Bill will become law. On October 30 the Bill will be tabled for a third reading in the provincial legislature. If it is passed and the Democratic Alliance’s numerical dominance almost guarantees this only the premier’s signature will be needed to enact it.

Last week Western Cape Agriculture MEC Gerri van Rensburg insisted the move was not privatisation, but corporatisation in line with modern business principles.

“The national government does not support the transfer of core government functions to a public entity,” said Manuel.

Manuel’s spokesperson, Logan Wort, said the minister would stand by his decision to refuse permission. “Agriculture is the core of the economy and important for the empowerment of new entrants and development of the economy in South Africa. To allocate this to a group of private individuals is unacceptable.”

Manuel’s decision is supported by Minister of Agriculture and Land Affairs Thoko Didiza. She has warned of possible punitive measures if the change went ahead.

Western Cape Finance, Business Promotion and Tourism MEC Leon Markovitz denied national government was unaware of the initiative and claimed it had approved the proposed service in a letter dated February 1. However, it is understood that the letter was written by a junior official without authorisation shortly before her resignation.