Hon House Chair, the ACDP shares the view that South Africa needs an economy that is more inclusive and more dynamic, and one in which the fruits of growth are shared equitably.
Now we know that tomorrow the hon Minister will announce his inaugural budget, possibly increasing taxes for hard-pressed taxpayers and, of course, everyone will ever be looking very closely at the economic-growth figures.
In his Medium-Term Budget Statement, MTBS, in October, he highlighted certain structural constraints. These constraints include what he then referred to as "tightness" in electricity supply, labour tensions, skills shortages and transport constraints.
That tightness now has become a crisis. Now the broadly accepted National Development Plan, NDP, also highlights solutions. It proposes to enhance human capital, productive capacity and infrastructure to raise exports. This will increase resources for investment and reduce reliance on capital flows. High investment supported by better public infrastructure in skills will enable the economy to grow faster and become more productive, according to the NDP, and, of course, that also depends on the electricity crisis being resolved.
The rise in employment and productivity will then lead to a rise in incomes and living standards and to a decrease in inequality. Remember that we all broadly supported the NDP and we need to see, as a matter of urgency, that the bold and urgent steps it now requires is incisive implementation. Long- term growth investment also requires a shared vision, trust and co- operation between government, labour and business.
The level of trust is regrettably very low and labour relations have become unduly tense and, more often than not, violent. This trust deficit needs to be addressed as a matter of urgency.
Surely it is time to really look at the concept of an economic Codesa. It has been raised by many members in the previous Parliament. Let us get together and get these sectors together to discuss these various issues because we all have the same idea - to improve economic growth. It is just a matter of finding how to get to this economic growth that we need in order to uplift all our people. We also need to increase our comparative advantages such as our mineral and natural resources; our sophisticated financial-business-services sector; our proximity to fast-growing African markets; high quality universities; and companies that are global leaders in sectors such as civil construction and mine rescues. We heard that mentioned here today day.
Regrettably, we have not enjoyed the benefits of these comparative advantages due mainly to those constraints mentioned in the NDP, such as the state's poor infrastructure and, of course, the electricity crisis, but most importantly, regulatory and policy and certainty.
To conclude, it does not help when President Zuma shows investors at Davos that we are open for business and then in the state of the nation address he announces steps to limit foreign ownership of land, as well as undermining the agricultural sector. I thank you.