It should be the South African government’s highest priority to stabilise the economy and ward off the threat of recession‚ said Transvaal Agricultural Union of South Africa (TAU SA) president‚ Louis Meintjes.
Meintjes was responding on Wednesday to figures released on Tuesday by Statistics South Africa that indicated that the country’s economy had shrunk by 1.3% the second quarter‚ while agriculture shrunk 17.4%.
"The decline in agriculture was mainly due to the drought in last year’s summer rainfall areas. Currently there is also a drought in some of the winter rainfall areas and forecasters warned that the El Nino system can provide for another dry year‚ which could mean a repetition of this trend which from a climatical point of view‚ is not farfetched. Government has to make an early provision for this‚" he said.
The power supply problems also had an impact on agriculture. "I want to call on the government to urgently focus their attention to the economic problems. It should start with those matters of which government has direct control. Energy and financial resources should be utilised to ensure that in future Eskom will be able to meet demand. This is a government responsibility and battered consumers should not to be punished with further rate increases.
"Furthermore it is essential that economic stability be restored in all sectors‚ especially in agriculture. Drought relief for all affected areas is of the utmost importance.
"Failed political agendas which have plunged agriculture into uncertainty‚ should be put on hold‚ at least until the economy has stabilised. By doing this‚ farmers will have the opportunity to focus on primary food production thus ensuring that South Africa will be able to put food on the table.
"Any action that forces individuals or groups of farmers to seek legal recourse to counter ideological policy issues‚ and which would imply high legal costs‚ will only increase the problems of the agricultural sector‚" said Meintjes
"The government should also contribute to lessen the impact of excessive wage demands and minimum wages. All are now forced to reduce expenditure. Unrealistic wage increases‚ especially minimum wages‚ will only worsen the problem‚ and under the current circumstances Government will surely not wish to be held responsible for further job losses."
Government should focus on economy: TAU SA
Meintjes was responding on Wednesday to figures released on Tuesday by Statistics South Africa that indicated that the country’s economy had shrunk by 1.3% the second quarter‚ while agriculture shrunk 17.4%.
"The decline in agriculture was mainly due to the drought in last year’s summer rainfall areas. Currently there is also a drought in some of the winter rainfall areas and forecasters warned that the El Nino system can provide for another dry year‚ which could mean a repetition of this trend which from a climatical point of view‚ is not farfetched. Government has to make an early provision for this‚" he said.
The power supply problems also had an impact on agriculture. "I want to call on the government to urgently focus their attention to the economic problems. It should start with those matters of which government has direct control. Energy and financial resources should be utilised to ensure that in future Eskom will be able to meet demand. This is a government responsibility and battered consumers should not to be punished with further rate increases.
"Furthermore it is essential that economic stability be restored in all sectors‚ especially in agriculture. Drought relief for all affected areas is of the utmost importance.
"Failed political agendas which have plunged agriculture into uncertainty‚ should be put on hold‚ at least until the economy has stabilised. By doing this‚ farmers will have the opportunity to focus on primary food production thus ensuring that South Africa will be able to put food on the table.
"Any action that forces individuals or groups of farmers to seek legal recourse to counter ideological policy issues‚ and which would imply high legal costs‚ will only increase the problems of the agricultural sector‚" said Meintjes
"The government should also contribute to lessen the impact of excessive wage demands and minimum wages. All are now forced to reduce expenditure. Unrealistic wage increases‚ especially minimum wages‚ will only worsen the problem‚ and under the current circumstances Government will surely not wish to be held responsible for further job losses."
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