44 LAST WORD
Using regulations to create a monopoly !
The recent SABS Virtual Local Content Business seminar was held on the 13 October 2021 and by the time of writing , ten days later , neither the recording and / or documents had arrived . A poor delaying tactic , especially considering some of the negative comments that hit the SABS from some of the participants .
“ However , the playing field must be level and government must enable , not control , business .”
Certainly , SABS has done nothing to mend fences with the plumbing industry , which broke after the SANS 761 debacle for which people of this country are still paying for in terms of having to replace inferior product . It did even less when it and its SAQA government counterpart enabled and allowed an activity to take place around CoCs and a professional body , challenged by part of the industry , and again at the time of writing , still no resolution .
It now enters the arena of local content verification , to be generally encouraged indeed , but with the proviso that SABS is the only organisation regulated to do such verification ! This is supported by the Deputy Minister of DTIC , Mr Fikile Majola , who indicated very clearly that SABS being a government body , by an Act of Parliament and therefore SABS was the only organisation that can do such verifications .
The reality of the certification industry is such : There are four SANAS accredited certification bodies , of which SABS is one and the other three have shown themselves to be competent , willing , and able .
What are the possible consequences of a monopolistic situation such as this ; that the cost of the verification sits with one organisation ? An anti- competitive situation will exist , and three other organisations are unable to openly compete in a market in which they are entitled to operate – because of a regulation !
This is a perfect example of government bullying its way at the expense of private enterprise . Of course , the SABS in their depreciating manner , did indicate they would make use of other bodies , but who controls the price ?
The Competitions Commission need be made aware of this , which is also part of the DTIC family . This calls for some interesting discussions .
A quote from the SABS Norm : 2021 B . 2.3 Preventing entry into a marketplace , relating to Competition Law :
“ Abuse of dominant position is a situation where one person or more persons substantially or completely control a class of business and engage in a practice of anticompetitive acts that may substantially reduce competition in the marketplace .”
The irony of the situation is that one of South Africa ’ s largest local manufacturers of taps , mixers and valves had to close its doors with 1 200 job losses , never mind the impact on the supply chain and potential job losses there . Also , the contribution of the DTIC allowing non- standard taps and mixers into the country at the expense of those importers who abide by the compulsory standards . We still wait for the NRCS to respond to our many queries regarding this aspect of the market – something that should have happened some years ago , we are led to believe .
Of course , the SABS covers a wide range of industries , and this article is focusing on the plumbing sector . No matter , the fact remains that local manufacture is the backbone of any country and is to be encouraged .
However , the playing field must be level and government must enable , not control business .
To leave such an important and essential scheme in the hands of one body that has “ history ” to quote the Lead Administrator , Ms Jodie Scholtz , is a questionable poor motivation as well as an understatement , as South Africa is well-known for repeating history and never learning from it .
The point is , allow free enterprise to operate , which in turn creates jobs and the economy grows where all can benefit . Restrict free enterprise and we all crash wondering what went wrong ! PA
www . plumbingafrica . co . za @ plumbingonline @ plumbingonline @ PlumbingAfricaOnline January 2022 Volume 27 I Number 11