Two Bits – 5 December 2014

One of my more fortuitous decisions was to buy a generator for the business back in 2008.

It smarted at the time, but almost every week I thank my lucky stars for having done it.

You wouldn’t believe the number of times power goes off on a Tuesday, right in the middle of our production process. No, you’re all Ballito-ites, you would!

On top of the non-stop song that our electricity consultant, Nick Hall sings, that the infrastructure can’t keep up with the demands being placed on it, something has been bothering me.

Eskom tells us that profits are down 24% to R9 billion.

My question is: Eskom is a parastatal. Why is it reporting profits? Would that be so the top executives can award themselves performance bonuses?

The government gave Eskom a R20 bn bailout at the start of the year, so we’re paying twice for the erratic service – once through our taxes and again through our local accounts.

What is more we can expect to pay at least 12.69% more for electricity next year and again the year after.

To say that the country is facing a crisis of epic proportions would be understating the case.

The government ignored the 1998 energy white paper, then only recognised that there might be problems looming in 2004.

When the Medupi power station was announced in 2007, the budget was to be R52 bn.

The Free Market Foundation reckons the situation today is that the power station will be at least 48 months late (another two years away) and cost at least R77 bn more than the original estimate.

Eskom’s lost revenue is to the tune of R43bn, but more importantly, that of the SA economy is at least R6.4 trillion, the equivalent of 129,000,000 RDP size houses.

You would think, with the crisis that it is facing, Eskom would welcome a little help.

The sugar industry has repeatedly offered to sell power back into the grid by burning its excess waste from the milling process, but to date has had no joy.

In a much smaller way, a family member is building a water-powered turbine generator on his farm to power a sawmill and has also tried to put excess power back into the grid, but Eskom is not interested.

I have a press release on my desk, crowing that Dube Tradeport will have its own Silicon Valley by 2016.

An investor will be putting up a seven-storey building that is intended to become a hub for IT-related business. Computers run on electricity. I do hope someone told them that the lights might not be on.

Equally concerning is the supply of water for developments of this kind.

The North Coast has but one supply of water, namely through Hazelmere Dam.

The dam is silted up, no progress has been made in raising the wall and there are no plans for future dams on the horizon.

Where on earth do they think the water is going to come from?

Sure, they’re talking about desalination plants but that’s all it is – talk.

Most of us who have chosen to remain in this country try to be optimistic about the future, but with the level of forward planning that is being exhibited it is simply scary.

I think I’ll just throw in my lot with JuJu and say to showerhead PAY BACK THE MONEY!

* * *

I enjoy books on local history, so it is with pleasure that I read a book just out, The Land of Green Gold.

Durban accountant Daryl O’Connor goes back 500 years or so to look at all the factors that have contributed to the building of what is today KwaZulu Natal, from the explorations by Portuguese mariners and their first meetings with the inhabitants of the east coast. Shaka, the Voortrekkers, missionaries and the British have all played important parts in the land’s history.

Gold and diamonds are the best known stories of the rise of South Africa, but sugar has also been a major force in the fortunes of this province for nearly 200 years.

It has been a story of clashing worlds and cultures, settlers coming to a new country and the resulting war with the Zulus, and much intrigue in the settler community as they found their feet.

The author was a young accountant at the time of the “sugar war” of the early 1960’s, and gives some fascinating insights into the boardroom manoeuvrings that led to the formation of the Tongaat-Hulett and CG Smith (Illovo) sugar companies.

It is a somewhat personal view of a slice of history, and O’Connor’s easy style makes for an enjoyable read. He passes on a few gems of stories. Well worth the R295 at most book stores.

* * *

The children were lined up for lunch in the cafeteria of a Catholic elementary school. At the head of the table was a large pile of apples.

The nun made a note, and posted on the apple tray, “Take only one. God is watching.”

Moving further along the lunch line, at the other end of the table was a large pile of chocolate biscuits.

One child whispered to another, “Take all you want. God is watching the apples.”