My family has been as anxious as any other about rising food prices. In fact, the complaints about the cost of food are now fast overtaking the concerns about service delivery during my meetings with the public.

The recent suggestion from the national Health Minister Mantombazana Tshabalala-Msimang that a statutory cap on food prices should be considered to counter the spiraling inflation is as scary as it is silly. We only need to remember that it was the government-enforced regulation of food prices that triggered hyperinflation in Zimbabwe which now exceeds 100,000 percent.

Interventionist policy responses, such as regulating food prices or banning export restrictions, will only result in restricting the medium-term food supply. Regulating food prices opens the door to empty shelves in our supermarkets and to a thriving black market which charges competitive prices.

I have been somewhat relieved to hear that the government is considering targeted safety-nets for the most vulnerable citizens, such as food vouchers. But, as with much of the ANC policy, we will have to see this through before we believe it.

We in the IFP have long advocated measures that boost the purchasing power of the poor within the framework of an unhindered enterprise economy. Unlike regulatory intervention, these measures do not distort domestic food production incentives and do not create immediate inflationary pressures.

However, food vouchers, as noble as they are, are only a short-term solution. The answer to long-term food security lies in a correctly-balanced land reform, in addressing the declining investment in agriculture and, specifically in KwaZulu Natal, in reversing the chronic mismanagement in the Department of Agriculture.

On the whole, the government must assist in creating a growing market economy which provides all citizens with the opportunity to improve their quality of life and safeguard their consumption of basic goods and services.

Dr Lionel Mtshali
Leader of the Official Opposition 

Contact: Dr Lionel Mtshali, 083 256 4902