Article: Sell parastatals, says DA

The Democratic Alliance on Monday proposed partially privatising state enterprises to boost infrastructure spending to 10 percent of the national budget.

Presenting the DA's alternative budget, finance spokesman Tim Harris said government should follow the example of Brazil, which this month raised some R70 billion by privatising operations at its three biggest state-owned airports.
 
Who would want to buy these parastatals ?

SAA can't survive without constant hand-outs, Eskom - pass, Telkom - hell no.
 
No one in their right mind would buy/invest in a parastatal of RSA - not with the work ethic, BEE, EQ, Cosatu and all that cr@p.

There is no way a company could function properly in this country with all the above and still hope to make a profit because you will be forced to keep all current people, positions etc etc and then you will be doomed.
 
It would actually make perfect sense for an overseas company to by one of the parastatals, as they would get a company, although currently mismanaged, with basically a monopoly on that service for next few years until competition can get up to speed. For example Eskom could be a winner, if managed correctly.
 
No, but they used to be...

It's pretty easy to see the diffs between a parastatal and private...

If they are making a profit without any large-scale theft or corruption, then it's NOT a parastatal...

daveza said:
Sasol - are they parastatal ?
Click to expand...
 
chris2.0 said:
No, but they used to be...

It's pretty easy to see the diffs between a parastatal and private...

If they are making a profit without any large-scale theft or corruption, then it's NOT a parastatal...
Click to expand...

LOL but too true.
 
Hey, go DA.

Good move, rather let private citizens use their money to buy these companies so that cash is returned to state coffers and they stop becoming a drain on the taxpayers.

Then the private companies can restructure and attempt to become profitable without taxpayer subsidies.

Good move.
 
If the goverment sells the parastatals where does the money go? Or at least where SHOULD the money go?
 
Fudzy said:
If the goverment sells the parastatals where does the money go? Or at least where SHOULD the money go?
Click to expand...
Towards funding a more competitive environment in that particular sector, and possibly towards funding an effective regulator to ensure that it stays that way. But this is where it probably will go:

bmw-x5-black-picture-162.jpg
 
WilD_CaT said:
Hey, go DA.

Good move, rather let private citizens use their money to buy these companies so that cash is returned to state coffers and they stop becoming a drain on the taxpayers.

Then the private companies can restructure and attempt to become profitable without taxpayer subsidies.

Good move.
Click to expand...

Really only partial privatisation gets such an enthusiastic encouragement :confused:
 
Fudzy said:
If the goverment sells the parastatals where does the money go? Or at least where SHOULD the money go?
Click to expand...
Well it's usually a useful cash injection that can be put to good use, but once that money has been used it isn't always clear the public has gained much. So for a train service those who can afford cars still drive them and pay less tax and those who use the trains get charged R50 a ticket instead of R8. The only way to reign in the problem is then price controls from government. Privatisation was once believed to be a panacea and is still pushed by certain organisations, but it can and has gone badly wrong.
 
WilD_CaT said:
Hey, go DA.

Good move, rather let private citizens use their money to buy these companies so that cash is returned to state coffers and they stop becoming a drain on the taxpayers.

Then the private companies can restructure and attempt to become profitable without taxpayer subsidies.

Good move.
Click to expand...

And the money that is paid for the companies can fill the ANC's corruption and coffers needs till the next plan is made?
 
Nice idea, but it would totally depend on how and to whom the sale takes place.

Selling to a Comrade for R0.01 who then goes JSE and sells off their shares at huge profit isn't going to work.

Maybe a better solution is to place them under Judicial management while selling off their assets to going concerns capable of running them would be a better solution. Always providing that the buyer is allowed to employ competent people rather than "politically connected".
 
Sell them? Hell no. You are basically buying a monopoly. They will charge us more and there is nothing we can do about it.

Rather break them up and then sell them so they are forced to compete with each other and the prices will go down.
 
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