Hon members, the government's proposition is quite simple. They have run all of the state-owned entities, SOEs, into the ground. Those companies now need enormous bailouts just to stay afloat. But there is no more money for bailouts because debt is unsustainably high, taxes are maxed out, and we're running record deficits. Borrowing is expensive, with l0-year bond deals costing around 10%; which only makes the problem worse as interest payments climb. So what to do?
The government could do the hard work of fixing those entities. But that would require real leadership and real tough decisions. It would require confrontation with the unions, and an honest admission that the central dogma of state control has failed. Those things are just too difficult for the ANC to do.
So instead, this government has reached back in time and plucked a policy straight from the National Party apartheid government of the 1980s. When that apartheid government was in the final
phases of burying itself in the junk heap of history, PW Botha also told the country that pension funds needed to be patriotic.
And so we come back to the present, with the ANC's 2019 election manifesto promising to investigate a regime of so-called "prescribed assets". And this was confirmed by the President during question time in this House two weeks ago. After a mealy- mouthed obfuscation at first, and after being pressed by the Chief Whip and the Leader of the Opposition, he confirmed that prescribed assets is definitely on the way.
I could quote you the Hansard; but the President is so verbose and so slow in coming to the point, a little bit like his Presidency really, that you'll have to go read it for yourselves. [Laughter.]
The ANC is reduced to copying the desperate policies of a failing apartheid government. I ask you, how low have they fallen? Some may call that complete moral and political bankruptcy. You call it the "New Dawn". [Laughter.]
They may have euphemistically referred to prescribed assets, but let's be absolutely clear what we are talking about. They are proposing to force every pension fund, public and private, to lend money to the government and to the state-owned companies.
Now, normally, the interest rate should compensate the lender for the risk of extending the loan. But if the lender is forced by law to make the loan, then it is the borrower, in this case the state, who dictates the interest rate.
This means lower investment returns for hard working South Africans for the rest of their working lives, and smaller pensions for hard working South Africans when they retire.
I did a rough calculation. Assuming the government starts off taking 3% of pension funds, a number that has been bandied about by the ANC. A 35-year- old South African who is saving R2000 a month in their pension and who does so diligently until retirement, will lose Rl,4 million in savings.
So, let's cut the nonsense and call it what it is, pension theft! [Applause.] This government is proposing to steal from the pensions of hard working South Africans to pay for their mismanagement. And don't be persuaded for a minute by the argument that 3% is where it will stop. Once the principle is established that it's okay to steal, the quantum will just ratchet up year after year. [Applause.]
In fact, the DA warned in the debate over the amendment to section 25 - I clearly remember the Chief Whip of the Opposition making this warning - that you cannot compromise on the principle of private property ownership. Because when you undermine any property rights, you undermine all property rights, even your future pension.
I didn't even imagine at the time that this warning would come true so soon.
Stealing from people's future pensions is still theft, plain and simple, and should be fought by every South African who has diligently saved for their retirement.
Let the word go out that the ANC, the self-proclaimed vanguard of the working classes, is coming for the workers' pensions. And the government doesn't need to change any law to do this; it can be done with a simple regulation.
We, in the DA, believe that such a change would illegally and unconstitutionally deprive people of their own savings without their permission.
So, if the ANC does go ahead with this mad idea, we will table private members legislation to allow South Africans to withdraw their pensions without having to resign from their jobs. [Applause.] And our legislation will allow them to opt out of compulsory pension contributions.
If we didn't do this, you would see thousands of workers resigning from their jobs just to save their pensions. And government employees must not think that they are safe either. The state pays their salaries and guarantees their pensions, and then uses those pensions to buy government guaranteed debt in bankrupt SOEs.
All of those guarantees only last as long as there's money in the bank. When the money is gone, the guarantee is gone. And the defined benefit guarantee will be the first thing to go.
So, nurses, teachers, police officers, social workers, doctors, every public employee, should get behind the DA in fighting this theft of their pensions! [Applause.]
And this brings me to the trade unions. Where is Congress of SA Trade Unions, Cosatu, and its affiliates? Where are their representatives in this House? These unions haven't said a thing, and Cosatu has offered cautious 'in principle' support. Why are they not speaking for their members? Every member of these unions should ask what they pay their membership fees for. Does Cosatu represent their members to the ANC or do they represent the ANC to their members? Cosatu's slogan is "An injury to one is an injury to all". But this proposal is an injury to all and you have not mustered the voice to speak for even one.
But worse than the silence of many trade unions, is the sickening sycophancy of the asset management industry. Asset prescription is inimical to efficient capital allocation in the market. Yet these asset managers have shown that they are prepared to accept almost any outrage, so long as it is presented in a "New Dawn" wrapper. And so now we have the grotesque spectacle of asset prescription proudly endorsed by Colin Coleman of Goldman Sachs of all companies, Magda Wierzycka of Sygnia and Wayne McCurrie of First National Bank, FNB, Wealth.
Hon members, here again we have the alliance of big state, big unions and big business working together with no regard for the best interests of ordinary South Africans.
Only the DA is fighting for the working man and woman. Only the DA is protecting the family. Only the DA is creating work and growing the economy for jobseeker. [Applause.]
Let me tell the ANC now, you will not get to pilfer people's pensions without a fight. And we, in the DA, will lead the fight to stop this theft. Thank you. [Applause.]