LETTER: Axing free housing and replacing it with low interest loans is a good move
This approach could be used to facilitate the buying of farm land to alter the racial pattern of farm ownership
Having exhausted all the alternatives, the ANC has — after a quarter of a century — discovered the bond market. Land ahoy!
In a discussion paper intended for its policy conference in December, the ANC proposes abandoning free housing and replacing it with soft (low interest) loans. This is a good move, indeed a fundamental shift.
If this is endorsed by the policy conference we will be placed on the runway to economic lift-off. The landless will acquire property. The housing budget could go towards subsidised bonds via the banking system. This would be far more effective and would also close opportunities for graft.
In addition, this approach could be used to facilitate the purchase of farm land to alter the racial pattern of farm ownership. The entire lugubrious paraphernalia of land reform could be replaced by a subsidised market process. That would open new horizons.
Willem Cronje
Cape Town
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