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NATIONAL COUNCIL OF PROVINCES
QUESTION FOR WRITTEN REPLY
QUESTION NO.: 274
DATE OF PUBLICATION: 13 AUGUST 2010
Mr O de Beer (COPE-WC)) to ask the Minister of Economic Development:
Whether, with regard to a closure of a certain company (name furnished), he
will ensure that (a) 4 000 job opportunities will not be lost within this
district and (b) workers will be protected; if not, why not; if so, (i)
what plans have been put in place in this regard and (ii) who is
responsible to ensure that job opportunities are not lost?
CW346E
REPLY
(a) The closure of any large manufacturing operation has substantial
negative effects on employment, social welfare, economic development,
investor confidence and tax revenues. Following the threat to close
the Saldanha Steel plant, three government departments, namely, Trade
and Industry (the dti), Mineral Resources (DMR) and the Economic
Development Department (EDD) engaged with the relevant companies and
concluded a new interim pricing agreement. The threat of the plant
closure has accordingly been withdrawn.
(b) The three departments are continuing with work to address long-term
industrial and employment in steel-making and downstream industries.