Response to articles published by Donald MacKay of XA International Trade Advisors on the extension of the price preference systemIn 2009, Stats SA estimated the iron and steel industry was a direct employer of 50,000 jobs. According to its 2019 numbers, this figure has declined to about 26,000, writes The Reclamation Group’s Dave Kassel. Picture: 123RF/RIHARDZZ
As chair of The Reclamation Group, and having been intimately involved in the scrap metal industry for more than 50 years, I am well placed to comment on the industry and the views expressed by MacKay. I feel it incumbent on myself to clarify material inaccuracies and misconceptions in his articles. The PPS was implemented in 2013 to resuscitate a once vibrant foundry and steelmaking industry, and has been subject to many amendments and extensions over the past eight years. The scrap recycling industry has operated profitably under the PPS. The latest extension has not decreased the PPS price, or increased the local discount, and the economic consequences will be no different to the recycling industry now under an extension than the factual experience.