Chairperson, hon Minister and colleagues, in recent years there have been a number of cases of collusions and competitive behaviour by various industry sectors and producers.
Collusion and the price-fixing are always at the expense of the consumers, who are compelled to pay higher prices that they would have to pay in a problem-free market economy. At the present time, the Competition Commission imposes penalties on the offending firms, but the individual culprits themselves are not penalised. Such culprits will always try to find a way to enhance their undeserved profit by circumventing the legislation in place by finding loopholes. These loopholes need to be closed. We must, however, protect consumers.
The amending Bill before the House today will do exactly that by eliminating some of the loopholes that still exist.
The IFP is particularly glad that the Bill provides for the introduction of a scheme of personal responsibility with criminal liabilities for the directors of firms that engage in cartel practices prohibited in terms of the Competition Act.
This will serve as a deterrent to the individual who is contemplating his own competitive practice. The key test, as always, will be implemented. There is still an urgent need to develop the anti-trust and pro-competition legislation to break the grip of our private and public cartels and monopolies on our economy.
This amendment is a start. Today's deteriorating economic environment, with spiralling food and oil prices, and with high interest rates are contributing to the economic exposure of many South Africans. Uncompetitive behaviour only increases their vulnerability and results in higher costs being passed down to the poorest of the poor. It is for this reason that the IFP supports the Bill. I thank you.