adminCAPE TOWN — Tensions rose in Parliament’s agriculture portfolio committee yesterday when local chicken producers and importers clashed over a proposed increase in tariffs.The SA Poultry Association (Sapa) and the Association of Meat Importers and Exporters (Amie) briefed the committee on an imminent decision by Trade and Industry Minister Rob Davies on a proposal to raise tariffs.
Sapa wants import duties to be raised from 27 percent to 82 percent, a move which is opposed by Amie and other exporting companies.
Amie told MPs it believed an increase in tariffs would push up the price of chicken, which was the main source of meat protein for South Africans.
“The net effect will be rising food prices, limited choice [for consumers] and lessened food security,” said Amie chicken sub-committee member Georg Southey.
Local producers would also not be required to become globally competitive. At the meeting, Southey criticised local producers, saying they were “addicted to protection” and hinting they were not being truthful about the impact of imports on the local industry.
“Over the last seven years, the production of the local industry has grown by 24 percent… Executive pay in the five listed poultry companies increased by 43 percent in the same period.”
Sapa hit back, saying dumped imports were devastating local producers.
“There are 110 000 jobs that are at risk directly and indirectly, and this excludes the grain farming industry,” said Sapa’s CEO Sol Motsepe.
He said there were also health safety risks with imported chicken. While South African abattoirs were constantly monitored, the same did not hold true for imports.
Several MPs scolded the two men for trading insults and for bringing their “cat and mouse” game to Parliament.
Democratic Alliance MP Annette Steyn said there could be a dire impact for consumers.
Committee chairperson Lulu Johnson was equally unimpressed, and said the display of intolerance was disconcerting.
Both Southey and Motsepe apologised for their behaviour. — Fin24.com
Online Reporter