Driving ourselves to economic ruin

15 May, 2016 - 00:05 0 Views
Driving ourselves  to economic ruin Let the ministers drive a Mazda CX9, Mazda 6 and Mazda BT-50

The Sunday Mail

The sight outside the Labour Court this past week would have been magnificent had it not been for the economic realities ordinary Zimbabweans grapple with daily.

A row of gleaming top-of-the-range Mercedes-Benz vehicles — all brand new — lined the car park outside the court.

Judges are very important people. Their centrality to national administration can never be overstated.

Ordinary people are important too.

They are the reason why we have public offices.

For a couple of weeks now, those ordinary people have spent hours — much productive time — queuing at banking halls to withdraw stringently limited amounts of cash. If they were lucky, they got US$200.

The luxuries on wheels outside the Labour Court cost no less than US$100 000 each.

They were imported. Made in a country that for over a decade has been part of a bloc that has maintained economic sanctions on Zimbabwe.

A country whose government in 2008 ordered security paper supplier Giesecke and Devrient to stop dealing with our Reserve Bank and Fidelity Printers so as to starve ordinary people of currency ahead of that year’s elections.

At best, we lack a sense of irony. At worst, we indicate left and turn right.

Yes, there are contractual issues. Public officials sign up for tough jobs and they should get their perks.

But can’t these wait until the economic situation allows?

Would that not be the epitome of public service?

It is not just taxpayers’ money.

Last year Zimbabweans spent something in the region of half-a-billion US dollars on second-hand cars from Japan and the United Kingdom among other source markets.

On top of that, we are externalising stupendous sums of money either to buy luxury vehicles or to hide it offshore. Cue the Panama Papers debacle.

The RBZ has told us that more than US$50 million has been wired out of the country since January.

Last year, in this highly illiquid economy, individuals shipped out US$684 million in donations (never mind that we are asking for donations to avert hunger), bank account transfers and investments.

That was not all.

In 2015, companies externalised US$1,2 billion as export sales proceeds and management, technical and performance fees.

Overall, we bled nearly half the 2016 National Budget.

And we wonder why we can’t get money in banks . . .

There is need for serious changes to the way we do things in this country, and this goes for individuals, companies and Government.

It is good that the RBZ is trying to curb offshore spending by instituting a priority list that does not include the importation of cars.

The next step should be logical: Those in public office who warrant brand new cars should get them locally.

We have Willowvale Mazda Motor Industries in Harare and Quest Motors in Mutare.

In November last year, Quest Motors told The Herald that they had been excluded from the official list of suppliers to public schools.

Its locally-assembled 65-seat units were going for US$140 000. Imports of a similar size were priced at upwards of US$160 000.

Quest operations manager Mr Carl Fernandes stated the obvious, which may not seem so obvious to some in public office: “We are surprised that the local industry is being shunned by parastatals when there is a clear directive for them to (buy) 80 percent from local companies.”

Maybe the situation with Quest has been attended to.

Then there is Willowvale Mazda Motor Industries.

It says it needs about US$100 million in the short-term for recapitalisation.

The company also says with proper investment, it can assemble a low-cost brand new vehicle for around US$10 000.

The experience of the past decade-and-a-half should have taught us that investment isn’t going to suddenly flow into Willowvale.

Which makes the case for local investment — primarily by Government.

In France, all government departments use locally available options such as Renault or Peugeot.

The British promote use of locally assembled vehicles for public servants.

The same goes for Germany.

The Americans generally abhor foreign cars.

Mazda is a dirty word on most of their motorways.

In 2008, the US government spent billions bailing out its motor industry.

They understand the importance of investing in local industry.

We have spent billions propping up the economies of those who would rather see us suffer because of our love for imported luxuries.

Willowvale and Quest can service our public offices.

They have the range of options to satisfy those who want SUVs or sedans or trucks.

There is no real justification for importing an SUV, executive sedan and double-cab truck for a minister.

We are spending around US$500 000 per minister for their cars. And they also get a Parliamentary vehicle facility. Are we not sanctioning ourselves?

Let the ministers drive a Mazda CX9, Mazda 6 and Mazda BT-50.

Of course, exceptions must be made for security vehicles that need bullet-proofing though going forward our attentions should be on becoming self-sufficient on this front.

For individuals and companies, importation of luxury vehicles should be made tougher. Yes, some may argue that Zimra gets money from duties charged on the imports. But why go after a portion of the money and not simply retain most of it in the country?

But for any initiatives to have any meaningful impact, Government must lead by example.

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