The Director's point of view
The incoming Chairman's perspective
South Africa's economy must grow, and the oil industry believes it has the expertise and international experience necessary to make a major contribution towards this goal.
There can be little economic development if liquid fuels of good quality are not consistently available to the nation at internationally competitive prices.
Despite often difficult trading conditions, the oil industry has, over the years, fuelled the country's economic engine consistently, fairly and reliably. It has supplied products at low prices by world standards and is proud of its track record. It is South Africa's biggest single foreign investor, and brings important technology and capital to this country - without which growth would not be possible.
There are additional ways in which the crude oil industry is well-placed
to help the country become a winning nation. As one example, competitively
priced petrochemical feedstock from our world-class refineries could help
create jobs in a burgeoning downstream chemical industry.
A national
asset
The oil industry is a key national asset and a significant contributor to local wealth.
While SAPIA members' share of GDP is about one percent, they pay nearly 20 percent of all South African indirect taxes. Turnover is approaching R30 billion a year. Through salaries, wages and benefits, taxes, dividends and retained income, their activities provide a total value added of R15 billion annually, again contributing towards South Africa's growth.
Growth in this vital sector of the economy requires free and fair competition, with minimum legislative constraint. There can be no meaningful game plan if there is no level playing field for competing teams.
We are discussing these matters with all interested parties, to find a
solution which will benefit the nation as a whole. In the coming year, SAPIA
will be participating constructively in continuing debate with key players in
government, labour and business, and focusing on being transparent so as to
help correct misperceptions of the industry.
Social responsibility
SAPIA's members, BP, Caltex, Engen, Shell, Total and Zenex have contributed significantly to black advancement and, in many instances, have led the way in achieving employment equity, establishing small businesses, and supporting community investment programmes. I feel sure they will continue with their commitment in these fields, as they will in the fields of environment and health. In this respect, the introduction of unleaded petrol and establishment of the Paraffin Safety Association of South Africa are important developments.
I am confident that the members of SAPIA, despite their being business competitors, will continue to have the maturity needed to set aside individual interests when this is needed to contribute to the well-being of South Africa and all its people.