IFP Calls for Reintroduction of Equalisation Fund

MEDIA STATEMENT RELEASED BY:
MR HENNIE BEKKER MP
IFP SPOKESPERSON ON FINANCE

May 3, 2007

Mr Hennie Bekker, Inkatha Freedom Party's spokesperson on Finance, today voiced his concern regarding the latest reports of an inflation surge due to the increased price of basic foods. This can be attributed to the increase in transport cost of food because of the recent hikes in fuel prices. He said:

"Ultimately, it is always the consumers that suffer from extreme fuel hikes.  The IFP has always maintained that not only do the various role players need to explore ways of keeping the petrol price down, but also to ensure that a "yo-yo" effect is circumvented."

Mr Bekker further explained that it has always been the case of when there is an increase in the fuel price, other commodities are sure to follow. He said: "The IFP would like to urge the Ministry to bring about policies to ensure equilibrium throughout the year so that consumers do not have to suffer. Consideration can be given to the reintroduction of an equalisation fund. Fuel hikes impact negatively on food prices and commuter fees, which means the already marginalised suffers even more."

"It has just been reported that the international fuel price has decreased, and the IFP would like to advise the Ministry to take this new information into consideration to lessen the burden of the poor," concluded Mr Bekker.


FOR FURTHER INFORMATION CONTACT:
Mr Hennie Bekker MP: 083 255 4520
Noleen Hendricks: 082 886 9848