THE GOVERNMENT'S intention to consult with its Nedlac partners in the creation of manufacturing zones for export is an encouraging step, says Christiaan de Lange who resigned recently from his post as Sacob's manager of international trade.
Working closely previously with both the government and Department of Trade and Industry's steps in this direction, he commented: I believe, that the greatest test for the concept will be obtaining the approval from the Minister of Finance and the commissioner for South African Revenue Services (SARS). This will imply that the fiscal sacrifice will have to be carefully evaluated against the economic spin-offs resulting from such ventures in the respective provinces in which it is introduced. De Lange has been succeeded to the post of Sacob manager of international trade by Lucy da Piedade.
A number of zones have already been demarcated as Industrial Development Zones (IDZs). These are Richards Bay, Durban, East London's West Bank, Port Elizabeth (Coega), Saldanha Bay and the airports of Johannesburg, Pietersburg, Mmabatho, Upington and Bulembo.
De Lange points out that while the debate surrounding the feasibility of Export Processing Zones (EPZs) and Export Processing Units (EPUs) has been long and protracted, it has ensured that the EPZ/EPU will not be introduced in South Africa Ôin name only'.
In his opinion, judging from the presentations so far, the IDZ concept conforms to the general economic theory of an EPZ but with the main exception that it is emphatic in rejecting the restrictive labour practices for which the EPZs are known.
It now appears that labour unions will be allowed to operate in these designated zones with DTI indicating that it will endeavour to facilitate union recognition and uphold the requirements of the South African health and safety regulations.
