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Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

A salutary lesson for Port Elizabeth and Nelson Mandela Bay

19 July 2013 By Alan Straton

On Thursday, 17 July 2013, the US city of Detroit’s emergency manager, Kevyn Orr, took the unprecedented decision to file for bankruptcy after a deal between the city’s bondholders and its pension fund collapsed. Detroit labours under a staggering debt, estimated to be $18 billion and perhaps as much as $20 billion, and is struggling to provide even the most basic services. “This is the right thing to do,” said Orr last night, as he explained what is by far America’s largest municipal default.

Take heart dear citizens of Nelson Mandela Bay – at least our ‘problems’ fade away into nothing when compared to Detroit’s.

But, like the biblical speck in one eye versus a log in the other, we still need to take heed and learn from the history of Detroit – America’s Motor City.

Long recognised as the historic heart of the American automotive industry, Detroit took on the nickname “Motor City.” The automotive industry provided the model for mass production that other industries later adopted.

Nelson Mandela Bay is heavily reliant on the automotive industry represented by Volkswagen in Uitenhage, General Motors in Port Elizabeth, the Ford Motor plant in Port Elizabeth and the soon to be completed FAW plant in Coega, Port Elizabeth along with all the second tier suppliers in both towns. Those with long memories will remember the tough times that our towns went through when GM dis-invested and Ford left Port Elizabeth.

Diversification from reliance on such a large sector for our local economy is paramount and we need our local government to cease with their squabbling, ignore their party political fighting and show the ratepayers that economic well being through jobs and innovation and NOT handouts is high on the agenda of those entrusted with our hard fought for money and lives.

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.
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Filed Under: Editorial Tagged With: bankruptcy, detroit, gmsa, volkswagen

Reader Interactions

Comments

  1. southafricaTO says

    20 July 2013 at 7:20 am

    Yeah, not good to be so dependent on a single industry. Hopefully PE can build up its tourism industry more.

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