Hon Chairperson and the House at large, if one would ask an ordinary person in the street about the effect of this legislation, definitely one would draw a blank. However, if the following question would be posed to the same person, that is: What do you think of a law that ensures fair competition which results in fair prices? Without any doubt, the positive answer would be accompanied by a smile as well.
One of the fundamental tenets of capitalism is undue and unfettered domination of the working class for unbridled accumulation of capital. Such malpractice driven by avarice, of course, further breeds unsavoury and anticompetitive activities that are harmful to both the economy and subsequently the ordinary person. Since unfair competitive practice goes beyond artificial price manipulations which at times results in market failures, the amendments proposed in the Bill will also address excessive entry barriers so as to ensure broadening of access to business opportunities, especially for small, medium and micro enterprises. The proposed amendments will also address lack of transparency in order to reinforce public confidence. What is also admirable, is the intention of the amendments to enable the Competition Commission, in particular, to be proactive in its initiatives when necessary.
Some of the submissions during public hearings exposed that certain sectors were seriously ensuring that the amendments are crafted in a manner that would serve their group interests, and unfortunately not public interests. Good examples are the demands for complete removal of the clause on complex monopolies and the subjugation of market inquiry to excessive consultation processes, to such an extent that an inquiry would have little or no value.
The recent successes by the competition authorities, combined with the passion they, together with the DTI, demonstrated in addressing anticompetitive behaviour, have been so obvious, and admirable as well. Therefore, the expected additional support for the authorities in ensuring requisite resourcing, especially by DTI and National Treasury, ought to be a logical consequence.
However, I hereby make a strong appeal. I am in fact adding to the numerous calls for enhanced team effort amongst various government institutions such as DTI, the competition authorities themselves, Justice and Police. It is only through a well co-ordinated effort amongst the institutions that overall law enforcement against anticompetitive behaviour can be effective.
Whilst there is strong evidence of enhancement of consumer protection in this refinement initiative, hon George and hon Rabie, it's a refinement of this initiative and it will always be refined as we uncover loopholes. A call must be made to every responsible citizen to make the legislation effective by co-operating with the state in its implementation. The advances by competitive authorities in pre-empting and undoing measures that were posing a threat to fair competition also revealed an inherent inability to disentangle complex monopolies.
Whilst, as is claimed by certain quarters, this concept has been ditched by countries such as the United Kingdom and United States of America, and as such begs to question the wisdom of solely relying on foreign experiences whilst local realities indicate otherwise. Have we not, as South Africa, trailed the blaze by formulating comprehensive medicine price control, which the World Health Organisation acknowledges as groundbreaking? What about our consumer credit price legislation for which the US, with subtle lamenting, expressed admiration? As the story goes, the lament was that had there been such an outstanding law in the US the subprime credit crisis could have been avoided.
Competition policy according to the ANC is located within a range of policy areas meant to pursue a broader programme of economic transformation. That is why the ANC has argued that in transforming the structures of ownership and production, there is a need to put in place antimonopoly and anticoncentration policies aimed at creating competitive markets. In this regard the ANC has also stated that the concentration of economic power in the hands of a few conglomerates has been detrimental to economic development in South Africa.
The Congress of South African Trade Unions, Cosatu, has also warned of creeping concentrations where it claims that large companies are steadfastly acquiring small companies that at times have unique products and services to buttress their market dominance. This is just another piece of evidence about the level of sophistication in which unsavoury behaviour is preparing to indulge.
Amongst the most notable supporters of this Bill was the Black Sash, that even went further and insisted that companies found guilty of anticompetitive behaviour should be barred from doing business with government. If there is any strong expression of such public opinion regarding anticompetitive behaviour, I'm very keen on it.
In conclusion, allow me to state the obvious. The state should spare no effort to create an environment conducive to dynamic business activity and consequently enhance the socioeconomic wellbeing of citizens. Such efforts include the role of the government in providing leadership to creation of a fair, competitive business environment. Therefore, the ANC unequivocally supports this Competition Amendment Bill. Thank you.