Controversy continues to dog the Immigration Act, as regulations issued in terms of it by Minister of Home Affairs Mangosuthu Buthelezi receive flak from both the ruling party and the opposition.
Opposition concerns focus on the high entry thresholds for retired people wanting to relocate to South Africa — a monthly income of R25 000 or a net worth of R15-million.
By contrast, the African National Congress’s objections focus on a clause in the regulations allowing the “licence fee” for the employment of foreign workers — 2% of the foreigner’s taxable remuneration, renewable each year — to be waived. The waiver would apply if the Department of Home Affairs, after consulting the labour and trade and industry departments, is satisfied that the employer has a training programme aimed at transferring skills from foreigners to South Africans or reducing reliance on foreign labour.
The ANC opposed the initial approach of the Immigration Act, which was to remove the discretion of government officials in the granting of work permits and essentially allow employers to decide their needs.
It is understood the party is also concerned about the wording of regulations that allow accountants to vet whether the country requires a foreign worker in a particular skill category. The ANC has argued that the labour and trade and industry departments need to be closely involved in setting limits. The latter is, however, included in the regulations.
Commenting on the threshold for pensioners, the Democratic Alliance’s Mike Waters said it was “more than the vast majority of South Africans earn … It seems an excessive amount.”
Buthelezi’s special adviser, Mario Ambrosini, said the figures were based on the “past experience of the discretionary [system]”. He said it was unusual for countries to give residence to retired foreigners. Britain, Italy and Australia, for example, did not allow it. He also said retirees from other countries did not pay taxes in South Africa.
The legislation, a major bone of contention between the ANC and the Inkatha Freedom Party during its passage through Parliament last year, was approved in May. Buthelezi criticised the final version, which includes a quota system for work permits for foreigners.