Special Hearings — Business Hearings — 1997-11-12

MR VAN WYK: Thank you.  I'm going to quickly touch on the key paragraphs of our submission.  Paragraph one point two;  nobody in South Africa can remain aloof from our past.
 South Africans have to come to grips with that past if we are to build a future.  The AHI's submission is therefore an effort to assist in the process of understanding and healing.  It is also an effort to contribute to the TRC's quest to ensure that the mistakes of the past are not repeated.
 We can continue with paragraph three which looks at the historical development of the AHI.  This firstly covers the period 1942 to 1959.  Afrikaners amongst others were impoverished by the Anglo-Boer War and the depression of the '30's which led to massive migration to urban areas.
 The poor White question fed on itself in a manner of speaking.  The economic depravation exaggerated the serious social and educational disruptions.  Afrikaner leaders realised that self help was the only viable cause of action for Afrikaners, because of the inaccessibility of Government support services.
 In (indistinct) business organisation was regarded as essential to promote the economic aspirations and development of Afrikaners.  Against this background the AHI was founded in 1942.
 Then, if we can continue with paragraph three point two, 1960 to 1975.  From that paragraph the following:  After the Second World War as well as during the cold war which followed, Afrikaners along with many other communities developed a pronounce diversion to communism and the emerging consequences of (indistinct) of communism into Africa.
 The exceptional economic growth in the '60's increased the Afrikaners consciousness of the business sector.  At the time the AHI focused on economic issues from a market orientated point of view and on promoting the economic interests of its members.
 However, the AHI also made pronouncements on the social policies of the time.  It specifically endorsed separate development.  Without in any distracting from the AHI's willingness to accept responsibility for such pronouncement, it must be noted that support for separate development at the time was part and parcel of the majority of the White communities' thinking.
 The White Afrikaans Churches, newspapers, cultural organisations and the broader community subscribed to the notion that the separate development of South African population groups was seen as the best guarantee for overall justice and peace in the country. The AHI was part of that collective thinking.
 Then I move forward to paragraph three point three which covers the period from 1976 to 1983.  This period was characterised by a number of internal and external developments which reinforced one another in their impact on South Africa.
 The Portuguese empire in Southern Africa collapsed and the conflict in the former Rhodesia was settled.  These events had two major implications.  
 Firstly, they increased South Africa's isolation and dragged the country inexorably to its security orientated state of mind.  The opposition to communism referred to before was supported by a wide spectrum of the society, manifested itself in the extensive security system that came to be.
 During the 1976 Soweto uprising, the increasing internal tensions caused what happened.  Becoming as it did, on top of the above developments, South Africa entered a prolonged cycle of repression and resistance.
 This led to one of the greatest tragedies for South Africa.  Activities that one side saw as legitimate resistance to Apartheid were encountered by the other side with actions that were considered a legitimate defense against the communist onslaught.
 We are of the opinion that many of the horrors committed by both sides were a manifestation of this tragedy.  Boycotts and sanctions had a devastating effect on many companies and industries.  The fear of a communist revolution was fed in the heart and minds of many South Africans by atrocities that accompanied the struggle for independence in many countries and which were beginning to appear here and there in the form of necklacing and (indistinct).
 This served to strengthen the resolve to avoid repetition in South Africa.  During this time South Africa became an increasing closed society.  This prompted an emphasis on self sufficiency and military preparedness which combined to give as greater inward industrialisation.
 (indistinct) created significant industrial development in some instances and with it the illusion of prosperity.  However this was not sustainable and in the long run it indeed inhibited growth development.
 During the same period, the growing external and internal pressures on the country's economic, social and political instability brought about an expansion of its military capacity as well as extensive law enforcement and civil disturbance control systems.
 When invited, the AHI participated in some of the structures which mainly focused on the utilisation of private sector man power to protect its members' interest.
 The burden of releasing man power to the military, the hidden costs in developing non-sustainable industries and the opportunity cost of running a closed society, were in the end reconcilable with growth and development.
 Consequently the contradictions between open society policies including economic policies and Apartheid on the other hand became more pronounced.  At AHI conferences and discussions and at meetings with Government of the day, these contradictions were increasingly brought to the fore.
 Restrictions on the free movement of labourers, job reservation, discrimination in the work place, barriers to entrepreneurs and the lack of economic viability of separate development, both in the homelands and in group areas, were pointed out as irreconcilable with growth and development.
 Then we look at paragraph three point four which covers the period 1984 to 1994.  The following;  at the beginnings of the '80's the AHI experienced a change of heart which led to the amendment of the constitution of the AHI.  
 This amendment effectively drew a line through the previous exclusivity of membership and members of other language and population groups subsequently joined AHI.  The AHI leadership during this period also helped payed the way for and contributed to the preparations for the eventual transocean.
 Then in 1995 onwards the AHI's present role is one of commitment and involvement in economic growth which will benefit all the sectors of the population.
 Then if we look at paragraph four how the business benefit from Apartheid is the question that is dealt with.  We are aware of deceptions that business, in particularly Afrikaans business community, benefitted from Apartheid.
 In as much as individual businesses benefitted from Apartheid, the AHI structures were not used for this purpose and neither was it AHI policy to promote individual favouring.  The AHI is not in possession of any information which is not already in the public domain on the behaviour of individual companies.
 The policy of Apartheid has made South Africa much poorer than the country and its people could otherwise have been.  Lost and unutilized human potential, wasted resources, people and capital that left the country, growth that did not occur and jobs that were not created;  all these and many more examples prove that we are much poorer.   Not even to speak of the effect on the moral values of our society of Apartheid.  A poorer society simply means less business and fewer opportunities.  The poorest - the business did not benefit from this.  In fact, business would have created significantly more wealth, had Apartheid not been enforced assuming a peaceful transition.
 It is clear from the above that the notion that Apartheid benefitted business in general, is a fallacy.  What cannot be denied however, is that Apartheid disadvantaged Black business.  Many Whites owned land and they accumulated capital by realising profits on the selling of this land.  Until fairly recently Blacks were denied that opportunity and in this way one of the most important ways of building capital was denying them.
 Even though the Lands Act in the period under review, in fact had the nett result of increasing the total are of land held by Blacks.  The tribal system which was maintained as part of the policy of separate development, sterilised land as a source of wealth for the individual who is the main stay in market driven economy.
 Restrictions on trading and commercial activities also prevented Blacks from establishing hand operating business when they saw opportunities to do so, latent entrepreneurship, potential skills and hidden talents.  None of these assets in the Black community could be used.
 The practice of job reservation denied the Black community access to skills and progress and thus prevented fair competition in the job market.  It is also a fact that the mobilisation of the savings of the White (indistinct), produced remarkable results in terms of economic growth empowerment of the White Afrikaans speaking community.
 If we look at paragraph five, omissions and commissions;  it is clear from the submission if we look back with the benefit of hind sight;  that the AHI committed major mistakes.
 Firstly, under five point one, we deal with support for separate development.  As explained before the AHI supported separate development in the belief that it wouldn't bring about acceptable results for all in the country.  This it didn't do.  Separate development in the end meant social engineering with brutal human costs and enormous wastage of resources.
 As a business organisation we should have appreciated much earlier that moral and economic realities, militate conclusively against even the loftiest interpretation of separate development.  This failure was without doubt one of the worst mistakes the AHI made.  
 Then we look at the lack of critical evaluation of policies.  Another major mistake that was committed and that was one of omissions.  No moral and economic objections to Apartheid were lodged for many years.  At the time there was sufficient appreciation for the hardship and suffering caused by the policy.  Whether those hardships were shacks being demolished in the wet and cold of the Cape winter or of people being shot whilst protesting or the consequences of bombs which killed civilians in Church street in Pretoria as part of the struggle against Apartheid;  all of which was seen on our TV screens, the AHI could not have escaped the impact of these policies.
 Five point three deals with insensitivity into issues involving human rights, although there were frequent references at AHI conferences to the importance of good labour relations, training, proper wages and productivity.
 There was for many years an acceptance of the absence of a proper labour relations law that make provision for workers' rights for all and of the lack of training and other discriminatory measures.
 This is also regrettable.  There was support for the later developments under Prof Nic Wiehahn.  A similar omission occurred in regard to discrimination against women.  The AHI should have helped to remove the barriers for women much earlier.
 For its part in these omissions and commissions, the AHI firstly accepts moral responsibility.  Secondly, admits that fellow South Africans were gravely wronged by these actions or inactions.  Thirdly, we wish to express our sincere regret for these failings and lastly we apologise to all of those affected as a consequence hereof.
 In doing so the AHI earnestly wishes to contribute to reconciliation in our country and the building of a South Africa in which we all can grow and prosper.
 We can turn to paragraph six;  lessons learned from all of this.  We learn to look critically at ourselves and at our history.  It gave us the confidence not to hide behind our leaders, but to admit our mistakes and to move forward to build a country together with all our compatriots.
 We realises that socio-economic development of the total population is vital, although we may differ at our detail strategy as methods South Africans need to agree on a common policy frame work for socio-economic development. 
 We are convinced that self help is the road to a South African renaissance.  We should not expect aid or the bed on hand outs.  Pride, self interest and self motivation are the keys to the future. 
 It is a fact that capital and expertise, coupled with drive and sweat, helped South Africa to become an economic leader in Africa, despite Apartheid.
 All our resources and talents, some of which were previously expended in conflict, should be harnesses constructively in future to develop an increasingly prosperous society.
 As set out for the policy of Apartheid was bases on a racial document and it had a negative impact on economic growth.  Affirmative action and Black economic empowerment play a prominent part in many current policy initiatives.  
 The ultimate objective of these measures should be to help each person to unlock his or her full potential so as to be able to complete sustainable, on merit, in a very competitive world.
 Special efforts are warranted in respect of those with the disadvantage.  However, care should be taken to prevent that such measures do not involve into a new form of harmful race discrimination.
 The last lesson was a respect for human rights and the rule of law.