News / National
'Zim govt must reverse MP car deal'
18 May 2014 at 10:44hrs | Views
GOVERNMENT must reverse the deal to buy Members of Parliament Ford Rangers worth more than $10 million from Croco Motors and must use the money to capacitate local vehicle assemblers such as Willowvale Mazda Motor Industry and Quest, a local lobby group has said.
Government last week announced that it had struck a deal with Croco Motors for the supply of 290 Ford Ranger vehicles for Parliamentarians each worth $35 000.
All the vehicles will be imported.
Buy Zimbabwe, which advocates for the use and consumption of locally produced goods as a way to boost local industry said if Government was serious about the revival of local industry then it must reverse the deal and award the tender to one of the local car assemblers.
It added that in fact Government must craft policies to ensure that all Government vehicles (for use by all ministries, municipalities and parastatals) are purchased locally and hopefully run on locally produced ethanol.
"The Zim-Asset blueprint demands that Government begin to lead by example, this decision to procure vehicles made in South Africa leaves a very bad taste in the mouth. We hope even at this late moment sanity prevails and in the interest of supporting local industry, enhancing liquidity and paying attention to what His Excellency President Mugabe said at his Independence Day address, we stop this preference for imports," said Buy Zimbabwe.
It added that there was a need to develop and implement a local motor industry development policy that would guide the revival of the once vibrant industry.
"This has been spoken about for too long and we demand action. Zimbabwe has the infrastructure, capacity and the experience to assemble vehicles, we have been there. We appeal to Government that, should they procure locally assembled vehicles, we foresee the creation of more jobs, wealth and pride for our nation."
The organisation added that if Government went ahead with the deal it would have shown that it was insensitive to the conditions in the motoring industry.
It said even if MPs had expressed interest in Ford Rangers, Government could have ordered Croco Motors to procure knocked down kits to be assembled at either Willowvale or Quest Motors.
"That way the $10 million is used in ways that utilises the abilities of Croco Motors to advance capital but also rebuild local industry."
It said the argument that local assemblers such as Willowvale Mazda Motor Industries and Quest Motors had no financial muscle to match the deal struck by Croco were not true.
Parliament struck the deal with Croco Motors which will see the car dealer providing a loan facility to ensure that Parliamentarians secure these vehicles with Government paying in due course.
Ordinary people have also raised their concern over the deal saying Government must take a lead in supporting local companies.
Government recently said it was worried over the influx of cheap imported second-hand vehicles, adding that disposal of such vehicles was likely to cause an environmental disaster.
"When the general person imports, the Government complains and says we do not support the local industry but they are doing the same thing," said a Bulawayo man, Mr Sikhumbuzo Ncube.
"Local companies like Willowvale have been assembling all-terrain vehicles so they must buy those."
The Motor Industry Association of Zimbabwe, Industrial Development Corporation and the National Economic Consultative Forum in a bid to push for policy which supports the development of the motoring industry have put in place a position paper which proposes that Government makes it statutory that all new motor vehicles from passenger to commercial vehicles and buses be imported as completely knocked down as was the case before.
The paper said imports could only be considered on special or luxury vehicles.
Government last week announced that it had struck a deal with Croco Motors for the supply of 290 Ford Ranger vehicles for Parliamentarians each worth $35 000.
All the vehicles will be imported.
Buy Zimbabwe, which advocates for the use and consumption of locally produced goods as a way to boost local industry said if Government was serious about the revival of local industry then it must reverse the deal and award the tender to one of the local car assemblers.
It added that in fact Government must craft policies to ensure that all Government vehicles (for use by all ministries, municipalities and parastatals) are purchased locally and hopefully run on locally produced ethanol.
"The Zim-Asset blueprint demands that Government begin to lead by example, this decision to procure vehicles made in South Africa leaves a very bad taste in the mouth. We hope even at this late moment sanity prevails and in the interest of supporting local industry, enhancing liquidity and paying attention to what His Excellency President Mugabe said at his Independence Day address, we stop this preference for imports," said Buy Zimbabwe.
It added that there was a need to develop and implement a local motor industry development policy that would guide the revival of the once vibrant industry.
"This has been spoken about for too long and we demand action. Zimbabwe has the infrastructure, capacity and the experience to assemble vehicles, we have been there. We appeal to Government that, should they procure locally assembled vehicles, we foresee the creation of more jobs, wealth and pride for our nation."
The organisation added that if Government went ahead with the deal it would have shown that it was insensitive to the conditions in the motoring industry.
It said even if MPs had expressed interest in Ford Rangers, Government could have ordered Croco Motors to procure knocked down kits to be assembled at either Willowvale or Quest Motors.
"That way the $10 million is used in ways that utilises the abilities of Croco Motors to advance capital but also rebuild local industry."
It said the argument that local assemblers such as Willowvale Mazda Motor Industries and Quest Motors had no financial muscle to match the deal struck by Croco were not true.
Parliament struck the deal with Croco Motors which will see the car dealer providing a loan facility to ensure that Parliamentarians secure these vehicles with Government paying in due course.
Ordinary people have also raised their concern over the deal saying Government must take a lead in supporting local companies.
Government recently said it was worried over the influx of cheap imported second-hand vehicles, adding that disposal of such vehicles was likely to cause an environmental disaster.
"When the general person imports, the Government complains and says we do not support the local industry but they are doing the same thing," said a Bulawayo man, Mr Sikhumbuzo Ncube.
"Local companies like Willowvale have been assembling all-terrain vehicles so they must buy those."
The Motor Industry Association of Zimbabwe, Industrial Development Corporation and the National Economic Consultative Forum in a bid to push for policy which supports the development of the motoring industry have put in place a position paper which proposes that Government makes it statutory that all new motor vehicles from passenger to commercial vehicles and buses be imported as completely knocked down as was the case before.
The paper said imports could only be considered on special or luxury vehicles.
Source - Sunday News