13 November 2007
The SACP has noted the judgement by the Competition Commission regarding the bread price fixing by Tiger Brands.
Whilst this is a landmark ruling and should be welcomed, the SACP remains deeply worried of the extent to which we have inefficient competition rules and that our competition regime only picks up issues after the fact. Already millions of South Africans have suffered greatly as part of this conduct by Tiger Brands.
The SACP campaign to build sustainable livelihoods has pointed out to us how a majority of our people do not have access to at least one nutritious meal a day mainly due to excessive prices of basic food like bread, milk and vegetables. There is no support for our communities to engage in activities for sustainable livelihoods through subsistence farming and so forth.
Any efforts by our communities to either engage in these activities, be it through co-operatives, are suffocated by the power of monopolies in the food processing and agriculture industry.
Furthermore, this is a sign of weakness in transforming the colonial nature of the South African economy. In all respects, our economy is in the hands of monopolies; be it in mining, steel production, the financial sector and worst of all in food production. For how long are we going to subject our people to high food prices whilst we pursue the strategy to ‘lower the cost of doing business for the same monopolies’, whilst the cost of living for our people is skyrocketing?
Today cannot be better than yesterday when the capitalist market is allowed to operate at will, single-handedly, to determine the future of our people. What consequence does this ruling have on the already high price of bread? Will Tiger Brand not off-load this fine onto the very same poor consumers the Competition Commission is trying to protect?
The SACP calls for a massive state intervention in the field of food production and especially basic nutrition for the majority of the poor. We cannot afford anymore to leave the well-being of our people in education, health and food production and processing in the hands of private capital.
We need a comprehensive strategy beyond this once off fine, to say what are measures and mechanism we should put in place to lower the price of bread and basic foodstuffs for the working class and the poor.
Issued by the SACP
For information Contact:
Malesela Maleka
SACP Spokesperson – 082 226 1802