Free Market Foundation director, Temba Nolutshungi, has suggested that SAA be auctioned off as a politically feasible and acceptable solution to Government’s repeated subsidisation of the airline at the expense taxpayers.
Speaking at the AASA annual general assembly in Somerset West on Friday, he questioned why Government was involved in the airline industry at all, when all it should do was to provide an enabling policy environment that lowers the cost of going into business for industry. Anything else was interventionist, he charged.
Temba pointed out that other African states were by far out-performing South Africa in economic growth because they were liberalising their economies. For example, while Ethiopia’s economy was growing at 10% and Angola’s at 7%, South Africa’s growth in the first quarter of 2012 was 0,9% with a 3% growth in the second quarter.
He said South Africa needed to critically examine not just its aviation policy but also its macro-economic policy environment and prevail on policy makers to change those aspects that are making it difficult for businesses to operate. “It’s a question of having the right policies and we will take off when we have the right policies in place,” he said.
