Nationalising mines… and roads
There has been some discussion in Twitter about nationalising mines, and today Olwethu Sipuka (@osipuka) tweeted “In the 1980’s, the Dep of Public Work could build world class roads etc. What stops us from nationalising mines?”
And my immediate thought was, What stops us from nationalising the roads?
It is true that the Department of Public Works built some excellent roads in the 1980s, but many of them were military roads, intended to get troops to “the border” as quickly as possible. They were little used by the public, and some of them are now in poor repair.
Also in the 1980s, many of the roads that were used by the public were privatised, and turned into toll roads. That was because the National Party government robbed the road fund to pay for its military adventures in Angola. Since we no longer see any need to invade Angola and destabilise our neighbours, it’s high time we nationalised the roads that were privatised back then. But instead, the ANC government is continuing the National Party’s policy of privatisation, and is converting more and more roads into toll roads.
I can think of several reasons why nationalising the roads would be a good idea.
But I can also think of several reasons why nationalising mines would be a bad idea, a very bad idea.
Here are some of them:
- Mines are a wasting asset. Many mines are nearing the end of their useful life. so taking them over would just be an additional burden to taxpayers. Mining companies amortise the profits over the expected life of the mine, but the profits, for the most part, have long since gone.
- Mines are becoming a liability. Many mines have caused a lot of pollution, which is becoming worse as they are mined out and no longer work. For example there is acid underground water that needs to be treated. It is only fair that the companies that made the profits should pay to clean up the mess. But if the mines are nationalised, it is the taxpayers who become responsible for paying to clean up the mess that others have profited from.
- Dying mines will need to lay off workers. If dying mines are nationalised, the government will have to reduce the workforce, and lay off workers. This will set workers against the government.
There are other reasons too, but these are the main one that make me think that we should think twice before nationalising the mines, but that the roads should be nationalised without delay.