War on prices – Chidzero Senator Bernard Chidzero

The Herald, May 29, 1981

THE Government is determined to take measures to keep prices under control, the Minister of Economic Planning and Development, Senator Bernard Chidzero, told the ACCOZ congress.

He said people could expect a strengthening of existing controls and legislation as the need arose.

But he said also that the measures would not be taken through the Price Review Committee, the public’s prices watchdog of former years.

Dr Chidzero was speaking in reply to a question on profiteering asked at the first open session of the congress.

Dr Chidzero said it was not the intention of the Government to resort to using the old price review committees, but measures will be taken.

“We will also of course consult people such as yourselves in ACCOZ before taking such measures.”

He was asked by an ACCOZ member if one of the price control measures to be taken would include the freezing of wages and salaries.

The Minister answered: “We will be looking to see if the Riddell Commission comes up with any useful recommendations the Government can use in the future regarding price control and general wages and salaries.

“We have already taken a hand in this field with the beef prices and as far as wages are concerned, we will wait to see what the Riddell Commission reports.”

On foreign investment, Dr Chidzero told questioners that Zimbabwe did not need a legal code, but political stability, security, and a dynamic approach to development.

“We need to create a healthy investment climate. I personally do not believe in investment codes. They never work, are very tedious, and give rise to endless legal debate.”

Dr Chidzero said that investors, foreign or local, were welcome to Zimbabwe and that the Government would guarantee remitability of profits in line with foreign exchange restrictions.

On answering another open-session question concerning foreign take-overs of Zimbabwe firms, Dr Chidzero said: “We are against take-overs and are anxious to increase the level of domestic participation in local companies.”

The Minister of Finance Senator Enos Nkala also answered a question posed by Mr F. G. Capon of Salisbury.

He said no company, which was locally owned, could sell all or part of its shares to a foreign investor without first approaching the Government for permission.

The Minister of Labour, Mr Kumbirai Kangai, told the congress that the response to the call for workers’ committees from Zimbabwean employers had been heartening and from workers, “nothing short of phenomenal”.

LESSONS FOR TODAY

  • Prices of goods and services, especially basic commodities have a huge impact on people’s ability to afford such items. In most cases, basic commodities are a necessity and their price should be affordable to the majority.
  •  In the event that there is mischief in the market and people are wantonly hiking prices, the Government has a duty to intervene. Currently, the prices of goods and services are going up rapidly which has prompted the Government to initiate dialogue with manufacturers and retailers. At the same time, Government has implemented a raft of measures such as removing duty on some basic commodities to ensure stability in pricing.
  • Associations such as the Consumer Council of Zimbabwe should be proactive in safeguarding the interests of consumers in the event of unjustified price increases.

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