AfriForum challenges racialist requirements for “Discrimination Fund” in parliamentary submission

Soundbite: Ernst van Zyl (English)

Soundbite: Ernst van Zyl (Afrikaans)

AfriForum today submitted a written submission to the Department of Trade, Industry and Competition (DTIC), challenging the race-based requirements of the proposed R100 billion “Discrimination Fund” currently being considered by the department. In its submission, AfriForum makes it clear that the so-called Transformation Fund’s strict race-based requirements for access to government funding should be scrapped and replaced with non-racial, means-based criteria.

AfriForum also argues that government funds are inherently susceptible to corruption, looting and exploitation by the politically connected. Finally, AfriForum rejects the Minister of TIC’s proposed funding model, which entails the expropriation of 3% of private businesses’ annual net profit after tax.

AfriForum maintains that real empowerment can only come about through sustained economic growth. This can be achieved through introducing pro-growth policies that reduce the regulatory burden and racialist requirements on both large companies and family businesses.

According to Ernst van Zyl, Head of Public Relations at AfriForum, a policy should be judged by its outcomes, not its intentions. “AfriForum does not oppose the empowerment of poor black people. We oppose racially exclusionary policies that are wrong in principle and harm economic growth. Judge a tree by its fruit. The bitter fruits of racially discriminatory policies and funds have helped ensure that corruption and cronyism flourish, choked the South African economy in race-based regulations, drove away and discouraged foreign investment, and worsened race relations,” Van Zyl continues.

“The last thing the struggling South African economy needs now is another tax and more racial discrimination to worsen an already hostile and taxed-to-death business environment. The South African government’s racialist approach to solving problems has gone on for long enough and has produced enough negative outcomes to warrant a change of course. It is time to give meritocracy, means-based government assistance and a business-friendly approach a chance,” concludes Van Zyl.

AfriForum has launched a petition where the public can demand an end to the government’s racially discriminatory laws. Visit www.endracelaws.co.za or click here to sign the petition.

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