5 June 2009

I am flabbergasted by those who have accused me of inconsistency merely because my call for the cutting of interest rates and the consequent devaluation of the Rand echoes the views held by COSATU. 

It is true that throughout my life I have often found myself at odds with COSATU's views, but that is more about methodology than the actual goals. Representing as I do the poorest of the poor, I obviously share COSATU's goal to maintain and increase employment levels. 

These are the very considerations which prompted me to oppose sanctions and disinvestment during our struggle against apartheid so as to protect our industrial basis which provided jobs to our people. 

We are now faced with an even greater crisis in which our first priority must be that of protecting the economic viability of our factories, construction sites, tourist industry, mines and the agricultural sector as it relates to international exports. We have already lost close to a quarter of these employment bases. 

Many families who used to rely on two incomes now have only one breadwinner, but must face the same amount of payments on their home bonds, car loans, credit cards and other loans. Their burden must be reduced by cutting interest rates before we are all swamped by a wave of repossessions, credit defaults and bankruptcy. 

Therefore, it is not surprising that on this specific occasion, COSATU and I share not only the final goal but also the specific strategy to achieve it, and have identified the South African Reserve Bank as more part of the problem than part of the solution, possibly on account of it remaining privately owned. 

At this critical time of crisis, the interests of the bankers, the international money trusts and the South African Reserve Bank must yield to the interests of our industries and businesses, which are joined in this respect with the interests of workers and the unemployed.

The dramatic cut in interest rates may not be beneficial to bankers and international money trusts, but will help both our businesses and all our workers and families.
 

Contact:
Mr Jon Cayzer
084 555 7144