IFP Finds Increases of Tariffs Unfair to Consumers

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

May 4, 2007

Mr Hennie Bekker, Inkatha Freedom Party (IFP) spokesperson on Public Enterprises today agreed with the decision taken by National Energy Regulator of SA (Nersa) in turning down Transnet's application for R9.5bn funding for the building of a fuel-pipeline. He said:

"The IFP believes it is unfair to ask the consumer and motorist to fund the building of a new fuel-pipeline. Transnet should learn from Eskom, which has gone to the capital market to find capex to fund their capital projets."

Further Mr Bekker explained that the IFP supports the building of a new fuel pipeline, but has serious concerns regarding the pressures this would place on fuel prices. He said: "The bottom line is that we can not increase tariffs, because it may lead to further significant increases in the fuel price."

In conclusion, Mr Bekker urged Transnet "to opt for a larger diameter pipeline that can cope with further increases in fuel supply. I want to remind Transnet that the reason for the pipeline is to 'alleviate capacity constraints', but this can not be achieved at the expense of placing further burdens on the consumer."


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