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Cosatu's Vavi on privatisation    11-May-01

Writing in the Mail and Guardian of 04-10 May 2001, Cosatu's secretary general, Zwelinzima Vavi, once again took a strong stand against privatisation. He was reporting on the bi-annual meeting of Cosatu's central executive committee. Cosatu is threatening government with a two day general strike on privatisation.

Vavi expressed himself against the sale of assets and shares, the termination of state monopolies, the contracting out of local authority services, such as water and electricity provision and the outsourcing of auxilliary services.

Vavi is concerned that privatisation will lead to the type of problem that California experiences with respect to power supplies. He does not believe that privatised utilities can take care of the poor. He seems to be critical of transparent or explicit subsidies and in favour of cross subsidisation or implicit subsidies. He is also concerned about the quality of services rendered to the poor.

 

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e c o n o m e t r i x 11-May-01