Monday 22 April

PRESS RELEASE

For immediate release

18 October 2018 – Johannesburg

United Nations Committee finds government austerity measures in health, education and other public services “may further worsen inequalities” and calls for policy to be reassessed 

Following its first review of South Africa, the United Nations Committee on Economic, Social and Cultural Rights has called on the government to review its fiscal policies in order for the country to meet its human rights obligations and achieve greater levels of economic redistribution.

The UN Committee overseas implementation by more than 170 countries of the International Covenant on Economic, Social and Cultural Rights, which SA agreed to be bound by in 2015.

Citing “unacceptably high levels of economic and social inequalities” that have persisted since the end of apartheid, the Committee said that “personal and corporate income taxes, capital gains and transaction taxes, inheritance tax, and property tax, do not enable [South Africa] to mobilize the resources required to reduce inequalities.” This is having a “serious impact on the ability of the State party to meet its obligation to mobilize the maximum available resources for the implementation of economic, social and cultural rights,” according to the Committee.

Civil society submissions lay bare the impacts of austerity, regressive taxation and corruption on the rights of South Africans 

The Concluding Observations of the Committee draw on a submission and factsheet presented by civil society groups SECTION27, the Institute for Economic Justice and the Center for Economic and Social Rights to the Committee on 01 October. The advocates furnished empirical data that made clear the detrimental effects austerity policies and corruption are having on economic and social rights in the country. Public spending per person is set to decline for a fourth year in row, straining health and education systems relied upon by the majority of people. Average class sizes at the poorest public schools have increased in recent years while many health departments are unable to hire doctors or pay suppliers of medical equipment because of budget shortfalls.

During a two-day dialogue with the government delegation on 02 and 03 October, the Committee questioned the wisdom of the government’s austerity policy and asked what measures were being taken to avoid low-income households bearing a disproportionate burden of the budget cuts. In its Concluding Observations, the Committee finds that government is not conducting such assessments and as a result, was at risk of reversing gains made since 1994, “particularly in the health and education sectors.”

Daniel McLaren of public interest law centre SECTION27 said “In the week before the Medium Term Budget Policy Statement, this UN report sends a clear message that those on the lowest incomes cannot afford any more budget cuts. We look forward to working with the government to implement these recommendations.”

Committee calls for progressive, revenue-generating tax revisions and renewed commitment to rights fulfillment

The Committee said that tax policies could be more progressive and called on the government to “intensify its efforts to combat illicit financial flows and tax avoidance with a view to raising national revenues and increasing reliance on domestic resources”. Regarding the increase of VAT from 14 to 15 percent, The Committee noted that it was “concerned about the impacts of this increase on low-income households”.It also called for a revision of the Provincial and Local Government Equitable Share Formulas to reduce regional disparities in access to rights.

Gilad Isaacs of the Institute for Economic Justice said “Government’s revenue policies do not generate sufficient funds. Businesses and the wealthy, who have enjoyed large tax reductions, must be taxed at a higher rate. The austere debt targets must be revised and the crises plaguing SARS swiftly resolved. The Medium Term Budget Policy Statement should protect critical social services, not undermine them.”

For further information contact:

Nomatter Ndebele, SECTION27, Johannesburg, ndebele@section27.org.za, +27 72 919 2752


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