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I have written to the chair of the Portfolio Committee on Economic Development, Elsie Coleman, asking her to convene public hearings on job-crushing scrap metal export proposals.

If adopted, the proposals could lead to 400,000 job losses in the informal sector.

During a portfolio committee meeting yesterday, the International Trade Administration Commission (ITAC) indicated that by next month it would finalise amendments to the Price Preference System (PPS) on the exportation of scrap metals.

These amendments were published in the Government Gazette on the eve of the December holidays last year. So far, there has been a wholly inadequate public consultation process with scrap metal recyclers and dealers, whose livelihoods will be jeopardised if the amendments are adopted.

The PPS has become increasingly burdensome since 2013, making it more and more difficult to export scrap metals.

As it is, the PPS is not working. It has increased ITAC’s administrative burden. It has been of limited benefit to the local steel mills and foundries it was designed to help. And it has caused scrap metal recyclers and dealers to retrench workers and disinvest.

The new proposals make an already bad situation worse.

They include a requirement that all scrap metals be exported through the port of Port Elizabeth. This will result in scrap metal dealers outside of Port Elizabeth racking up extra transport costs of up to R700 per ton. These costs will be passed onto generators in the form of lower prices paid for scrap metals.

The scrap metal industry contributes R15 billion annually to the South African economy. Industry experts predict that 400,000 jobs will be lost in the informal sector, should the amendments be adopted.

At a time when the economy is bleeding jobs, we can ill-afford government to push through job-crushing regulations in a cavalier fashion.

The DA believes that the concerns of all affected role-players should be aired in public hearings conducted by Parliament before ITAC makes a final recommendation on the proposed amendments.

Issued by DA