SASOL SYNTHETIC-FUEL INVESTIGATION

In August 1995, Nedlac's liquid-fuels industry task force (LFITF) agreed a resolution regarding Sasol synthetic-fuel protection. The resolution was based on the findings of an Arthur Andersen investigation into protection for Sasol synthetic fuels. The LFITF agreed to the following:

• Continued protection for Sasol synthetic fuels is justified.
• There should be a phase-down period which provides Sasol synthetic fuels with sufficient time for restructuring on the understanding that protection will be finite.
• The Arthur Andersen report should be used as a basis for the determination of the level, mechanism and duration of protection.
• Cabinet must take a decision on protection for Sasol synthetic fuels as a matter of urgency.
• Protection should be made dependent, within reasonable conditions, on the following:

  i) The development of downstream industries (including the Secunda region).

  ii) The empowerment of disadvantaged communities.

  iii)A commitment to the development of a national strategy for the petroleum and petrochemical industries.

Following Nedlac's consideration of the LFITF resolution, the Minister of Mineral and Energy Affairs was informed that labour and government were in support of the resolution, with business indicating that, while it was broadly supportive, it was unable to obtain a final mandate on the matter. Business indicated that it would abide by a government decision based on the resolution. A Cabinet decision was reached on 30 November 1995 (details are available from the Department of Mineral and Energy Affairs or Nedlac).