LIQUID FUELS INDUSTRY TASK FORCE MEETING

16 August 1995

The Liquid Fuels Industry Task Force (LFITF) met today at the Nedlac offices in Johannesburg. The meeting was very positive and fruitful, and reached conclusions on a number of key issues. In particular, the meeting adopted resolutions on Sasol's synthetic fuel protection, and on a future process aimed at reaching finality on the policy issues before the LFITF. Specific deadlines were set. A report on these discussions will be tabled at the meeting of the Trade and Industry Chamber on 24 August 1995.

Attendance

Labour delegates at the meeting were drawn from Cosatu, Sacwu (an affiliate of Nactu), Numsa, the CWIU, and the South African Taxi Drivers' Union. Business was represented by Sasol, the AHI, the Fuel Retailers' Task Group, Sacob, Seifsa, and the Organised Taxis' Industry. Also present were delegates from the Central Energy Fund, Petronet, and Mossgas. Government was represented by the Department of Mineral and Energy Affairs and the Department of Trade and Industry.

Process adopted as the way forward

By 22 September 1995, government is to put together a document, in consultation with the parties concerned, to identify differences. This document will be made available for public comment, which must be received by 13 October 1995.

Government is to appoint an evaluation committee which will compile a document which will take into account the public's reaction. This must be completed by 30 November 1995.

A plenary session of the LFITF on 4 December 1995 will be presented with the document. It will then come to the Nedlac Executive Council for final comment, before it will go to Cabinet with a recommendation that it be sent to the relevant portfolio committee for comment. Resolution by the LFITF on Sasol's synthetic fuel protection

Having considered the findings of the Arthur Andersen study into Sasol's synthetic fuel protection, the LFITF agreed on the following:

1. That continued protection for Sasol synthetic fuels is justified.2. That there should be a phase-out period which will provide Sasol with sufficient time to restructure, with the understanding that the protection will be finite and with due regard to macroeconomic constraints.3. That the Arthur Andersen report be used as a basis for the determination of the level, mechanism and duration of the protection.4. That Cabinet must take a decision on Sasol's synthetic fuel protection as a matter of urgency.5. That protection be made dependent on reasonable conditions based on the following principles:

5.1. The development of downstream industries (including the Secunda region).5.2. The empowerment of disadvantaged communities.5.3. A commitment to the development of a national strategy for the petroleum and petrochemical industries.

Statement issued by Jayendra Naidoo, Nedlac Executive Director

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