Madam Deputy Speaker, the first thing that we want to do, as the ANC, is to express our excitement about the fact that all the political parties that spoke here today agree that there is no such thing as a free market and that, if left to its own devices, it proves to be extremely dangerous. With its traits and characteristics of greed intended mainly to benefit a few shareholders, it would use any opportunity to ensure that it enriches only a few.
We agree that this statement made today is about a situation that constitutes the gravest theft from the working and middle classes in terms of the inflated prices or fixed prices with regard to fish, bread and flour, as these are the basic foodstuffs that many households need.
We also believe that this exposes the notion and the mantra that corruption only exists in the public sector, and that there is indeed corruption in the private sector, which is almost a criminal activity, and that we have to deal with it in the same way. There is no other name that we should call it. We know that many will be saying it is white-collar crime and all of those things. It is crime to the majority of our people, and those who are responsible have to be brought to book.
We also want to emphasise, as the ANC, the need for more resources for the Competition Commission and the Competition Tribunal in order for the two institutions to be able to do their jobs more effectively. This is precisely because these cartels are prepared to match the Competition Commission and tribunal pound for pound when it comes to the courts. We believe that this justifies the need for more resources.
We also believe that this had a huge impact on food security as millions could not afford these basic foods. It has also destroyed small and medium enterprises, and spaza shops which have supported the livelihoods of millions of South Africans, and has obviously encroached on the commitment of the ANC-led government to create jobs in our economy.
We have to emphasise that the announcement, by the Cabinet, of five million jobs is possible, and it is not a thumb suck. It is the agendas of these cartels that distract government's programme of job creation. We also want to emphasise the point that this had an effect on distorting the economy and the market, and that it is important that both the Competition Commission and the Competition Tribunal continue to deal with such behaviour.
As part of the way forward, we believe that there needs to be a firm commitment to exposing those who are left and are still resisting co- operating with the institution. There are companies such as Foodcorp that are still continuing with legal action. We also need to be firm in our resolve to ensure that companies feel the impact on their profits and also on their businesses.
We are quite happy that part of the commitment of this deal is to ensure that it will facilitate new entrants into the market through the capital investment that has been incorporated into this particular deal. There will be benefits for those who have been robbed, that is the poor, the working class and the middle class, through the R160 million that has been committed and will go towards price reductions. We believe that that will also have an impact on the other players in this particular section of the market.
What is also important is that this establishes a norm. When Tiger Brands, about three or four years ago, was fined more than R90 million there were no visible returns to the consumers. This particular deal guarantees and sets a trend for benefits for the consumers. We see this as a very important development.
Finally, we believe that some of these actions for stopping cartels and monopolistic behaviour are in line with the New Growth Path as announced, and are also in line with employment creation. It also shows that the regulatory framework that government has put in place and the policing mechanisms of private companies are actually working and are actually effective.
We also believe that this will strengthen the approach in terms of ensuring that through agroprocessing we create more jobs and food security. It shows we support small and medium enterprises and co-operatives, and also ensures that millions of our people are taken out of poverty and unemployment.
We note what the hon member from the DA was saying about the merger between Massmart and Walmart, and obviously the approach of the ANC-led government would be to ensure that any mergers and acquisitions comply with the Constitution of the Republic, including with regard to protection of workers' rights.
In conclusion, this sends a sign to those industries such as the construction and infrastructure sector, the telecommunications sector - including the mobile cellphone operators - and the financial institutions that their days of fixing prices and maintaining a monopoly are coming to an end.
The tribunal and the commission are growing some teeth. We would like to take this opportunity to applaud those who played an important role and those who pioneered this particular deal. Thank you very much. [Applause.]
Debate concluded.