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Dear friends and fellow South Africans,

Anyone in desperate need of money has deeply regretted not having sold
his house last year during times of prosperity, for he will now need
to accept any small amount of money he can fetch for it while markets
are depressed. The State is in a similar situation, as it considers
privatising some of its unnecessary assets, but in fact its situation
is much worse.

President Zuma has announced an expansion of our social programmes,
especially in terms of public employment and social grants. There is
discussion of having a national system of health insurance, which is
something I personally endorse as nothing is more important than
ensuring that anyone may receive medical assistance when they need it.

But all this, no matter how meritorious, means spending more money.
Where does the money come from? There are only two avenues; our taxes
and borrowing money to be repaid in the future through our taxes and
our children?s taxes. In the end, the money comes from us and nowhere
else.

But this year, and in all likelihood in the next few years, tax
collection is going to be dramatically reduced as both companies and
individuals will have less income because of the global depression.
There will be a temptation to raise taxes, which will increase the
depth and length of the depression.

Like many families do during harsh times, our State must offer to
raise money by selling its family silver, especially all that we do
not need. Since 1992, I have been advocating privatisation for our
country to redress the economic imbalances created by apartheid during
the period of sanctions and disinvestment.

At that time, nobody would lease aircraft to our companies and
therefore our airlines were forced to over-capitalise by purchasing
their own aircraft and setting up expensive facilities to maintain
them. Therefore, it made sense for the Government to own South African
Airlines.

However, since liberation there has been no justification for it,
especially because the State ownership of the airline has not made it
any cheaper or better, but merely placed the State in the unacceptable
position of unfairly competing with its own citizens.

The present debate on privatisation aptly commenced by the new
Minister in charge, HE Ms Barbara Hogan, takes place against this
difficult backdrop. We must privatise as the only way to raise the
money we need without increasing taxes or cutting down on delivery of
necessary services.

We can only deeply regret not having privatised during times of
prosperity and in the past seventeen years that I have been
insistently calling for it. We must do it now, but we must do it
soundly and without corruption, to avoid privatisation becoming an
opportunity for grand scale larceny of State assets by people cleverly
plugged into the ANC system of power.

However, privatisation must not stop at getting rid of companies held
by the State which have long been a liability on our budget sheet. In
this time of austerity, we cannot continue to take money out of our
citizens? pockets to pay the debts of South African Airlines while all
other airlines in South Africa seem to be run more efficiently,
profitably and competently. We must also privatise and sell off a huge
amount of land assets, buildings and infrastructures owned by the
Department of Public Works.

It has now been almost ten years since the Department of Public Works
undertook a full recognisance of its assets in the process of
identifying those which are tied to the exercise of government
functions and those which are just held for the sake of holding them.
Just like people in dire need don?t need second homes, so can the
State no longer afford to own real estate which it does not use.

In taking these actions, we cannot wait;, because any delay merely
signifies that all of us, the South African people, will find the hand
of the State digging much deeper into our pockets merely because it
cannot put its own house in order and find the money it needs
elsewhere, including cutting down on unnecessary costs.

Yours in the Service of Our Nation,

Prince Mangosuthu Buthelezi MP
President: Inkatha Freedom Party