ANC calls for once-off debt forgiveness for retrenched workers
The ANC Parliament called for the introduction of a one-off debt forgiveness programme for retrenched workers, saying this would help indebted people who lose their income.
|||Johannesburg - The African National Congress in Parliament on Friday called for the introduction of a one-off debt forgiveness programme for retrenched workers, saying this would help indebted people who lose their income.
Chairwoman of the ANC trade and industry study group in Parliament Joan Fubbs said the retrenchment of workers impacted on their ability to repay credit they obtained from banks and other lenders.
In a statement on Friday, Fubbs said many low-income workers who had been retrenched had unsecured and short-term loans.
“The ANC has been concerned about the growth in unsecured and short-term lending to low-income consumers in a credit market where half of the consumers are struggling to repay their loans,” she said.
“The ANC calls for a once-off introduction of a debt forgiveness programme to assist retrenched workers. Consideration should be given to use the surpluses of government entities and to encourage lenders to voluntarily participate in the programme.”
Because of the negative impact on the South African economy cause by the recent slump in commodity prices and other negative global factors, many sectors of the economy have had to retrench workers leaving many families without livelihoods.
The mining and steel industries in particular have experienced many retrenchments over a sustained period of time. The latest labour force survey revealed that at least 100 000 workers in the manufacturing industry had lost their jobs. Fubbs said the loans of retrenched workers needed to be investigated by the National Credit Regulator (NCR) to identify those that had been granted recklessly.
“To this end, the powers of the NCR should be enhanced to conduct these types of investigations and to impose fines for reckless lending. Other regulators locally and internationally have similar investigation and enforcement powers.”
According to Fubbs, Trade and Industry Minister Rob Davies would consult on the matter before beginning the process to introduce the debt forgiveness programme and legislation to enhance the powers of the NCR. Opposition parties were yet to indicate whether they supported or opposed this proposal.
African News Agency