NRF urges Government action to prevent AMSA closure
The Newcastle Residents' Forum has expressed consternation over the closure of major industries in the area in light of ArcelorMittal South Africa's (AMSA) announcement to close its longs steel business at the end of the month.
“The closure would have severe consequences for the town, which is already struggling with high unemployment, especially among the youth,” the NRF said.
“Many AMSA employees consider Newcastle their home, and relocating to another town would be a significant challenge. The forum believes that the three spheres of government – national, provincial, and local – have a crucial role in retaining AMSA in Newcastle.
“The Newcastle Local Council should urgently engage with AMSA’s management to find solutions. Unfortunately, this has not been the case so far.
The council should consider the significant revenue generated from employed individuals, including utility bill payments, and the substantial reduction in revenue that would result from unemployment.
“To support AMSA, the council could provide relief such as rates rebates, as permitted by the Municipal Property Rates Act of 2004. Creating an enabling environment for businesses in Newcastle is essential, as the current economic climate is not conducive to business growth.”
The NRF also called for other measures to support AMSA including special concessions on electricity for huge industries like AMSA to help reduce operational costs.
“Imposing heavy import duties on products that compete directly with local industries could discourage imports and create markets for companies like AMSA.
“The Price Preference System and Export Scrap Tax should be reviewed to ensure policies are fair and supportive of local industries.
“The revitalisation of Transent needs to be vigorously looked at to help reduce transportation costs to benefit not only the steel industry but also the economy as a whole.”
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