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Tuesday, 30 January 2007
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Opinion & Analysis

Bad economics  

Kevin Allan and Karen Heese’s propaganda piece is neither intelligent nor honest with its facts, Trailblazing mayor or opportunist? (January 26). The writers ask a false question, have a false premise, are contradicted by their facts, argue effects are causes and whitewash the African National Congress (ANC).

First, one can and normally must be an opportunist to be a trailblazer. Second, criticising the Democratic Alliance and Hellen Zille for “naming and shaming” defaulters, exiting the N2 Gateway and Red 1 and challenging the Green Point stadium, requires believing that Cape Town should not hold ratepayers to their dues, stop backhanders, and protect your capital assets and income stream.

Third, the writers say the provincial government was on the same list as other large debtors and was treated no differently, so how do they read politics into it? Money for the stadium is not in place, so how are delays “grandstanding”?

Fourth, we learnt of Zille’s leadership style and media savvy when she reacted to provincial bullying, ANC poaching and the issues above. Her style and savvy did not cause those issues.

Fifth, the writers explain the ANC’s plan to subvert the council in 2006 as a natural reaction to getting a R724000 rates bill shortly before.

Is this honest analysis, or mindless propaganda? Allan and Heese do nothing to prove the province was treated differently, that the N2 Gateway was corruption-free, that the legislative framework for sustainable electricity resupply was in place, or that Cape Town will escape the curse of the Olympics and Soccer World Cup hosts: paying too much for stadiums that get used too little.

As an adviser and an economist, they should know it’s bad economics to push Cape Town into vanity projects that boost political egos and give undeclared profits to individuals and inflated costs to the public.

Errol Goetsch
Errol Goetsch
Johannesburg
Johannesburg

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