Marcus on nationalisation

Those debating the nationalisation of mines need to look at how well government-controlled entities function, before deciding "what works", SA Reserve Bank governor Gill Marcus said in Soweto last night.

"We need to look at this not from an ideological point of view, but from the point of view of what works," Marcus said in a lecture at the University of Johannesburg campus.

"If we want to look at the nationalisation of anything in South Africa, look at entities we do control and ask is that the most efficient and effective.

"I ask let this not be an ideological debate. It should be what delivers for the economy."

Marcus said if South Africa had an efficient and effective state, "a lot of issues" it was facing would be improved.

"Think about it quite carefully. It should be about what makes the economy work.

"Let's face it, if you want it to work, you have to have skills and capacity to do that," she said.

Marcus said inflation was likely to come under pressure from a major demand for oil. Conflicts in North Africa, meanwhile, were expected to affect supply.

"Demand is likely to keep oil prices quite high," she said.

"If you look at prices into the future, it will impact on the question of inflation." Marcus said food inflation was likely to be high in 2011 as oil prices rose. "If we look at oil price increases ... petrol for a year on year has risen by 12.3%. We know how that feeds through, if we have a petrol price increase."

Southern Africa would have to look at food security and production, she said.