DA resolves to protect independence of the SA Reserve Bank

Reading Time: 3 minutes

The Democratic Alliance (DA) has resolved to protect the independence of the Reserve Bank at its congress.

The party says it rejects threats to erode the independence of the bank through nationalisation.

It says populist formations such as the ANC and EFF are using the bank as a scapegoat for government’s failures.

Federal Finance Chairperson Dion George who seconded the proposal says he conducted research on the Bank of England which was nationalised in 1946.

“Crucially although the bank is now owned by the UK government, it remains independent in maintaining prices…stability which means guarding against inflation which is too high or too low; that is not what the ANC proposes with a nationalised Reserve Bank. The ANC proposals would have government from its position at the centre of the economy able to influence the interest rate for political purposes that would result in disastrous populists and erode the value of our currency. The bank should not be in the hand of politicians and be able to perform its functions without fear or favour or prejudice.”

Protection of maritime economy 

Meanwhile, the party has also resolved that it should introduce legislation in Parliament to establish a South African Coast Guard with a mandate to protect the country’s sea borders and ocean economy.

The party says that the country’s ocean economy has the potential to contribute over R170-billion to the gross domestic product by the end of 2023 but is under threat from criminality, which includes piracy and terrorism.

DA member Kobus Marais says they have proposed that the Coast Guard should comprise a new branch of the South African National Defence Force.

“South Africa’s four coastal provinces trace a vast coastline which stretches over 3 000 kilometres. The South African ocean economy is under threat from criminality, piracy and terrorism. Criminal syndicates specifically are exploiting the lack of maritime security and marine law-enforcement capacity which is having a very negative effect on the sustainability of our fisheries, tourism the conservation of endangered marine life and our national security.”

DA Federal Congress – Day 2 l John Steenhuisen delivers Federal Leader report: