Deputy Chairperson, this is the first time that I am speaking in the NCOP during this term. I would like, therefore, to congratulate you, the Chairperson, and all others members on your election and express the view that this will be the first, no doubt, of many constructive engagements with this House.
When I had an opportunity to speak in this Chamber during the last Parliament, I expressed the view that our Constitution was singularly vague when it came to prescribing the specific roles of national, provincial and local government in promoting economic development. Schedule 6 of the Constitution defines "trade", without any further qualifications, as a "concurrent function between national and provincial governments", and all spheres of government recognise that they have roles and responsibilities in promoting economic development.
I want to suggest that as we go about responding to the electoral mandate to create decent work and sustainable livelihoods on a much enlarged scale, it will be necessary that we work together much more effectively within the spirit of co-operative governance to clarify our respective roles and bring about much greater co-ordination and effort between us.
As we all know, we are in the midst of the worst global economic crisis since the Great Depression of the 1930s. The present crisis has seen a sharp decline in economic activity across the world. In South Africa we have seen sharp contractions in mining and manufacturing in particular, and this crisis and the decline in manufacturing output in particular threaten to bring about job losses in a sector of our economy which has significant potential to create decent work.
Given this context, it has become imperative for all of us to significantly raise our game and enhance the implementation of our strategies and policies both to preserve jobs and strategic industrial capacity threatened by the recession, and to simultaneously place our economy on a new, more labour-absorbing growth path.
This challenge of preserving and enhancing our industrial capacity is intertwined with the challenge of promoting a more geographically balanced spread of economic activity throughout the country. We need to acknowledge and recognise that there are very strong economic forces which tend to concentrate economic activity in the established urban areas of our country while simultaneously marginalising from economic opportunities people who reside outside the major metros.
Purposeful interventions are therefore required to try to bring about a more equitable geographic spread of economic activity and opportunity. These interventions have to be based, in the first instance, on an objective and sober assessment of the economic potential of particular areas and, then, on the implementation of strategies well thought out and crafted to promote that potential. In doing so, the mandate of this administration is to be bold, focused and energetic in rising to these challenges.
This is the approach that the Department of Trade and Industry is taking in confronting the challenge both of responding to the crisis and of trying to promote more sustainable, longer-running industrial development.
We launched the national industrial policy framework and the first industrial policy action plan in the years 2007 to 2008. This set us on a path to a more significant and comprehensive industrial policy agenda. Since the launch of the first industrial policy action plan, we have made important progress including the launch of the automotive development programme, the finalisation of measures to restructure the clothing and textile competitiveness programme, and the implementation of new support measures, business process outsourcing, tourism, crafts and film and television sectors.
This progress shows that comprehensively researched, targeted and well- designed interventions do make a difference and this provides us with confidence going forward. However, we are not yet at the required level of ambition with respect to the impact of our industrial policy in order for us to be able to achieve the kinds of goals which our manifesto demands of us.
Our challenge, therefore, is to substantially raise the impact of industrial policy interventions both at sectoral and crosscutting levels. This will require that we simultaneously build the necessary capacity required for higher impact industrial policy implementation. In addition, it is clear that successful scaling up of industrial policy interventions will require that we approve co-ordination across the different spheres of government. Indeed, this imperative has taken on a new dimension as the government also reacts to strengthen its rural development programmes.
Scaled-up industrial policy will require more co-ordinated actions based in all three spheres of government. It will require us to be more strategic and smart in aligning various programmes and activities across the spheres of government. Industrial policy can never be seen as an exclusive domain of one department, the Department of Trade and Industry. Rather, it is a collaborative venture of government in all spheres, acting in partnership with economic actors to implement agreed interventions emerging from strategic consultation.
During the term of this administration, an important objective, accordingly, will be to substantially improve interaction between our department and our colleagues in the provinces around programmes to promote more effective development. In this regard, we must look closely at how we can improve the effectiveness of Minmecs.
In enhancing our efforts to tackle these challenges of uneven development of the spatial economy, we will need to review past practices, identify gaps and build on what has been successful. We have developed important programmes and vehicles in the period since 1994. These include industrial development zones, IDZs. Most members of the council, I'm sure, will be aware that IDZs exist at the moment in Coega, East London, Richards Bay, and that there is the IDZ link to O R Tambo International Airport. The IDZs have operated by providing a particular infrastructure and opportunities of concentration around that infrastructure, orientated particularly towards export activity. The IDZs have therefore been linked to major international airports and to ports and can be a key component of industrial development efforts in that they offer duty-free entry of inputs which are then used to manufacture products that are exported in special customs administration arrangements. The IDZs which we have in place have all had some limited success in achieving their objectives, but could all potentially, however, reach much higher levels of activity.
Together with our partners in Minmec we have identified the need for a significant review of the operation of IDZs as well as for a new governance framework for these zones. Among other things, IDZ policy must define more clearly the roles of national government, provinces and local government in the establishment of IDZs, as well as in the operation of authorities responsible for running them.
In addition to that, there is a need for a clear funding stream and an incentive programme for IDZs. What we need to recognise, however, is that IDZs are a model applicable to specific activities in certain parts of the country. We also therefore need to develop and push forward other models to support more geographically spread economic development.
One of these is the special economic zones, SEZs. A number of candidates for designation of SEZs have already been identified. They include the Umsobomvu development zone in the Eastern Cape, the Northern Cape diamond hub, the Wadeville-Alrode Industrial Corridor, and other areas in KwaZulu- Natal, the Western Cape and Mpumalanga. Beyond this, we anticipate assisting municipalities with developing particular industrial clusters and a series of support services and schemes related both to SEZs and municipal industrial structures. The DTI has also increasingly become a key role-player in the formulation of strategies at district and metro municipal levels, as well as in supporting provincial governments in spatial economic planning. Other programmes we have been implementing since 1994 are the spatial development initiatives or corridors. These are aimed at building infrastructure, such as road or transport links, based on packages of identified investment opportunities and then embarking on co-ordinated investment recruitment drives for the particular SDIs.
In all of these initiatives I just mentioned, much of the policy work has been completed. This has involved defining and refining strategies and modes of implementation, but over the years we have experienced significant implementation challenges and challenges of co-ordination. It is in this context that I believe that the newly established Department of Economic Development will be of enormous benefit in working with us.
We expect that the new Department of Economic Development will strengthen interaction with the provinces through, among other things, strategic Minmecs to develop joint programmes in areas of concurrent jurisdiction. Key areas of focus identified in this regard will include industrial policy, rural development, trade and investment promotion and SMME support.
A more focused and rigorous Minmec process is a practice which, we believe, needs to be taken forward. This approach will involve identifying bottlenecks, policy interventions and ensuring alignment and harmonisation of efforts and capacity-building for service delivery.
Inasmuch as industrial development is a key component of the government's drive to promote decent work opportunities, the development of co- operatives and the co-operative movement must be identified as another major priority. Co-operatives provide a major opportunity for sustainable livelihoods for many people, especially those in rural areas. The DTI will certainly be doing much more to encourage the growth and development of co- operatives, and we will be paying much closer attention to this important issue in the period ahead. Other ongoing initiatives to broaden participation in the economy will be outlined in the speech by Deputy Minister Ntuli.
The valuable contribution of this Council in the area of regulatory reform also needs to be acknowledged. The corporate law reform project started in 2004 culminated in the passage of the Companies Act last year. This important piece of legislation seeks to alleviate the regulatory burden and the cost of doing business, particularly for small enterprises, by cutting the red tape and the cost of registering limited liability companies.
Last year we also enacted the Consumer Protection Act. This provides, for the first time in South Africa, a significant legislative basis to support and strengthen a culture of consumer rights. The 2008 Competition Amendment Act, when enacted, will strengthen the ability of the state to combat cartel-type activities and to deal with complex monopoly conduct in highly concentrated markets.
We will ensure that these new laws are effectively implemented, particularly given their importance in facilitating fair conditions for enhanced entry and participation in markets by small, medium and micro enterprises.
The DTI is working with provinces on an assessment of the process of issuing liquor licences for distributors and manufacturers. This will extend to a review of the liquor industry in South Africa, focusing on the efficacy of the regulation of that industry. Certainly, improving the efficacy of the licensing process will greatly ease the entry into formal operations of small and medium businesses and thereby enhance the transformation of the liquor industry as a whole.
At the same time, more focus will be given to assessing the social impact of alcohol trading and consumption. With this in mind, licence criteria are being drafted to ensure that distributors and manufacturers increase their outreach programmes in combating alcohol abuse.
I welcome the fact that the NCOP continues to take an active interest in international trade negotiations. We had an opportunity to speak on these matters in the NA, and I don't want to repeat the points in any detail here, but I want to emphasise that we remain committed to the promotion of trade relations that are supportive of our economic development objectives and our industrial policy in particular.
Advancing effective development-orientated regional integration in Southern Africa remains an important strategic priority in our trade policy. This, in our view, requires an agenda that does not exclusively focus on unrealistic timetables for formal trade integration arrangements, but on co- operative programmes to build regional productive capacities and promote regional infrastructure development - which are, in fact, in our view, vital prerequisites to advance trade integration arrangements.
As I indicated in my speech in the NA, we remain concerned that the interim economic partnership agreements, EPAs, now signed between some members of the Southern African Development Community EPA configuration and the European Union could undermine regional integration. We will, as South Africa, continue to work to minimise the negative impact of interim EPAs on the region, and we have called on the European Union in particular to refrain from implementing any provision in the EPAs that could strain the Southern Africa Customs Union.
The global economic crisis has brought into even more stark relief the need to strengthen South-South trade and co-operation relations, with a view to diversifying both our export destinations and our export basket. Brazil, India and China have emerged as highly dynamic emerging economies, leading a structural shift in the global economy in which developing countries have been enjoying a rapidly growing share of world trade. Building our trade and investment relations with these new centres of global economic power will require purposeful engagement. Thank you very much. I almost finished! [Applause.]
Thank you very much, hon Chairperson. I nearly offered a few minutes of my time to the Minister, but I wasn't given that opportunity.
Okokuqala, Sihlalo, mangibongele uNgqongqoshe umhlonishwa uDokotela uRob Davies, ngokuqokelwa kulesi sikhundla asiqhoqhobele. Ngiphinde ngibongele abahlonishwa Amaphini oNgqongqoshe uThandi Tobias-Pokolo, kanye noMama uB M Ntuli owaziwa ngelikaMaNtuli, ngokukhethelwa kulezi zikhundla. Ukuqokwa kwabo kukhombisa ukuthi abantu besifazane banalo ikhono lokuhola nokuphatha izikhundla. Hayi njengoba sibona lapha eNtshonalanga Kapa lapho kwenzeke ezinye izinto.
Sihlalo, inhloso yaloMnyango ukuhola nokwenza isimo sokuhweba sibe sihle; ukushintsha isimo sezomnotho; ukukhulisa umnotho nokwenza ukulingana ekutholeni amathuba kwezomnotho kanye nokwakha amathuba omsebenzi. Siyazi futhi Sihlalo, ukuthi lo Mnyango unezinhlangano ezaziwa ngegama elithi agencies ezicishe zibe ngama-20 okufanele ukuthi zisize lo Mnyango ekwenzeni umsebenzi obekelwe wona. Ezinye zalezi zinhlaka zisebenza kahle kanti ezinye kunemibuzo ngazo futhi imibuzo ehlukahlukene. (Translation of isiZulu paragraphs follows.)
[Chairperson, firstly, I would like to congratulate the hon Minister Dr Rob Davies for being elected to this position. Again, I would like to congratulate the hon Deputy Ministers, hon Thandi Tobias-Pokolo and hon B M Ntuli, also known as MaNtuli, for being elected to these positions. Their election shows that women are capable of serving in leadership and administrative positions, unlike what we see here in the Western Cape, where this is not the case.
Chairperson, the aim of this department is to administer and make the trading state better, to overturn the economic state, promote economic growth, as well as equity with regard to economic opportunities and job creation. Chairperson, we know that this department has organisations known as agencies, approximately 20 in total, which will assist this department to deliver what is expected of it. Some of these structures are working very well, but there are different questions about others.]
Chairperson, as a committee we will deal specifically with different subprogrammes and other committee members will be dealing with the specifics. However, as a committee we have identified certain issues that we feel the Minister needs to attend to. I will mention a few issues that the committee feels needs the Minister's urgent attention.
The first would be the tool to project performance and outcomes, especially on the contribution of decent job creation, as the President announced that we need to create 500 000 jobs by the end of this year. Secondly, we need a speedy integration of work, especially amongst agencies such as Khula, the Small Enterprise Development Agency, Seda, and the National Empowerment Fund; for instance, in KwaZulu-Natal you might have them maybe in one building or one block so as to assist communities. And thirdly, there should be a clear training and retention strategy for staff as a future investment.
One of the provisions of the Freedom Charter is that "The people shall share in the country's wealth!" In today's language we would be talking about BBBEE, the advancement of the SMMEs and co-operatives. I am happy that the Minister has mentioned and identified the challenge that is on the development and assistance of the co-operatives, except in KwaZulu-Natal where they have a framework for co-operatives.
I wish to quote what was said by the former President of Tanzania, Mwalimu Julius Nyerere: "We committed two basic mistakes in Tanzania." I will not mention the first one because it is not relevant to this debate. The second one, he said, was that -
We abolished the co-operative movement. During the process of the liberation struggle, we had built up a strong co-operative movement as our economic powerbase. That was our worst mistake.
Now, this further emphasises the need to move with speed with co- operatives. Hon Minister, we notice that in the MTEF budget, the expanding electronic diversity has decreased for the years 2010-11, while we still have to address the imbalances of the past. Are we really going to be up to this challenge with this budget?
There was also a commitment in 2007 that employment creation in small businesses would be further supported through the creation of 15 or more small business incubators countrywide; where are we on that? Where are we on trying to develop the rural areas such as Gingindlovu, Nongoma, Msinga, Nkandla, Maphumulo and even Ulundi?
One of the key areas of focus for this department is industrial development. In KwaZulu-Natal there is the Richards Bay IDZ. This IDZ has not reached its potential. The people of KwaZulu-Natal are hoping to hear that there will be a deliberate focus on it this time around. Noting the international economic meltdown, in his state of the nation address, President Zuma said that the Industrial Development Corporation has developed programmes to fund companies in distress. The question is: How far are we on this? Because some companies have closed in KwaZulu- Natal, Mandeni, Richards Bay, the Eastern Cape, Whittlesea in King Williams Town, Butterworth and East London. How far are we even in other areas in trying to assist them to have industries? How far are we with developing the industrial policy action and when are we likely to implement this action plan?
Another challenge has been the use of more consultants, especially by other agencies such as Khula, Seda or any other agency. This tends to stretch the turnaround time and delays delivery. One community member visited me in my constituency and said that he has been waiting for about 18 months for a business plan. Even though he had submitted the business plan, he was told by Seda that they will get someone to do a business plan and that has taken 18 months.
We noted as a department that we have a good strategy. We have a good policy and we have good laws and the Minister has alluded to that, but we have a challenge in the implementation.
Before I conclude, I would appreciate it if you would share with this House the progress, though you have touched a little on the World Trade Organisation, WTO, and the Doha Round negotiations. We are confident that the political leadership of this department is equal to any task and that during your leadership rural areas will benefit more.
I have already invited the Deputy Minister, uMaNtuli, to my constituency when there was a briefing, while going around to the izimbizo, so that rural areas can also get services. We would also like to thank the officials from the department. We have engaged with them and we will continue to do our oversight role vigorously.
I wouldn't be doing the matter justice if I did not remind members that we should all remember Nelson Mandela Day. Nelson Mandela went around South Africa saying the same thing over and over again. At every turn he emphasised in words and actions the importance of the ANC's ideal of non- racialism and reconciliation. To prove that, he had tea with Betsie Verwoerd, wife of apartheid architect, Hendrik Verwoerd. [Time expired.] [Applause.]
Chairperson, hon Minister, hon Deputy Minister, my hon colleagues, all distinguished guests, ladies and gentlemen, "Da jia, wan shang hao". [Good evening, everybody.] I would first like to congratulate the Minister on his appointment, and would also like to compliment the hon Deputy Minister, the director-general and their team for the comprehensive, sincere and open report presented to our select committee on 26 June 2009.
Five years ago, I presented my maiden speech from this podium. I acknowledged the challenges of increasing job opportunities and decreasing poverty and unemployment. Today, these challenges remain. We are also facing new challenges. By now I am sure you are all very familiar with the term "global economic recession". Minister Trevor Manuel warned us in his Budget Speech for 2009, and I quote:
... there is also the uncertainty about the burden that will be visited on future generations by the interventions being contemplated today.
We need to plan our strategy with caution by never using the current economic climate as an excuse. Our 2009 Budget Review clearly states in Chapter 1 that this is "... a time of crisis, a window of opportunity".
Three of the most pressing issues are as follows: the need for better service delivery, better co-ordination and communication between government departments and the need to realise the goals of the framework for South Africa's response to international crises. Government, in the role of a facilitator, needs to work with business and organised labour to protect job opportunities and accelerate skills development without direct interference in economic activity.
The DTI consists of more than 6 000 employees. It is a huge task to organise and manage such a workforce. We recognise that one of the biggest challenges facing the DTI is recruitment, retention and skills development.
Too often our government's policies are well intended. However, our government's capacity to implement these policies is an area of concern. It is crucial that the department is able to attract, develop and retain professionals of a high calibre. Therefore, I really hope that the new chief operations officer of the DTI is now in a position to lead the team forward.
This year, the DTI has been allocated a budget of R6,3 billion to achieve its strategic objectives. Of this budget, 61% has been allocated for incentive payments, mainly to promote direct investment in industrial and service economies, with the focus on job creation. We must aim to improve the productivity of our workforce. The economy works in cycles, and we must prepare our workforce for the expected upturn in the economy so that they may remain competitive.
Budgeting is not only about increasing expenditures on necessary activities; it is also about rooting out unnecessary waste, phasing out inefficient programmes and improving value for money. Therefore, with regard to the additional R1,6 billion budget allocated for industrial development and the support of small enterprises, we hope that the aim will not only be to spend more, but also to spend better.
Industrial policy is not the sole responsibility of the DTI, but rather the responsibility of all government departments. A greater sense of accountability needs to permeate the ethos of the government. At present we still do not have a clear picture of how the functions of the Department of Trade and Industry and the Department of Economic Development will be divided. Once this has been made clear, we hope that the monitoring system will be put in place to measure the success of each programme. As a matter of urgency, we also hope that a full report will be provided to ascertain what real growth has been achieved in the area of job creation.
We, the DA, vow to play a more active role in partnership with the DTI. We will also provide alternative economic policies so that we may grow an economy ripe with opportunities for all our South Africans, especially for the millions of the unemployed. I thank you. [Applause.]
Chairperson, Ministers present, MECs, hon members, good evening. The administration of a department is a server of that department. As it is written that the department must be customer-centred, people who visit our desks must get the best services that will say much about what happens internally. It is important that our desks are user-friendly.
Mohlala, go na le ba bant?i ba batho ba rena bao ba tsebago seo ba se tlet?ego mo?omong mola go na le bao o ka gopolago gore ba thwalet?we go bolela ka megala fela. Mogami wa kgomo ya lefi?a o gama a lebelet?e tsela. Ke re bjalo ka ge ye nngwe ya ditaba t?eo di hlohlelet?ago kgolo ya ekonomi e le phokot?o ya ditshenyegelo.
Mmu?o wa rena o thekga go hlongwa ga National Empowerment Fund, NEF, gore e thu?e Broad-based Black Economic Empowerment, BBBEE. Go hlongwa ga Accelerated and Shared Growth Initiative for South Africa, Asgisa, go hlohlelet?a kgolo ya ekonomi le go dira gore batho ba bant?i ba be le kganyogo ya go ba kgwebong. Go fihla ga bjale, bont?i bja bao ba sego ba ka ba kgona go i?a dit?welet?wa t?a bona ka ntle ga naga ba bont?ha kgahlego. (Translation of Sepedi paragraphs follows.)
[For example, there are many of our people who know what they are employed for, whereas there are those you might think are employed to only chat on the phone. It is of great importance that we consider our future. I am saying this because one of the ways of influencing economic growth is to minimise the costs.
Our government supports the establishment of the National Empowerment Fund, NEF, since it supports Broad-based Black Economic Empowerment, BBBEE. The establishment of the Accelerated and Shared Growth Initiative for South Africa, Asgisa, influences economic growth and arouses people's interests in starting their own businesses. Most people who never exported their products have now started to show some interest in doing so.]
Let praise be given to our government, led by the ANC.
Go laedit?e gore go bonolo kudu go dira kgwebo le batho ba ga borena ba ka ntle ga naga. Mohlala, profenseng ya Limpopo, re na le batho bao ba reki?ago dit?welet?wa t?a bona Botswana, Namibia, Malawi, Mozambique le dinageng t?e dingwe. Go bonolo kudu go batho ba Botswana go tli?a ma?ot?a mo Afrika-Borwa. Ma?ot?a ke dijo t?a kgauswi t?eo batho ba kgonago go di reka. (Translation of Sepedi paragraph follows.)
[It has been proved that it is very easy to do business with people who are outside our country. For example, in Limpopo province there are people who export their products to Botswana, Namibia, Malawi, Mozambique and other countries. It is very easy for the people in Botswana to bring Mopani worms to South Africa. Mopani worms are the foodstuffs that people find easy to buy.]
This shows that a person who produces food from their backyard can export it to other countries.
Direto di sa romelwa mmu?ong wa rena wa lehono ka ge bana ba ga borena le bommago rena ba kgona go tshelela ka nageng ya Afrika-Borwa. Batho ba ba t?eere karolo kudu kua morago ge baswana ba sa gatelet?we. Baswana be ba t?habela dinageng t?a ga bo bona gomme ba ba amogela. Bafaladi ba bangwe ba tli?a bohodu le bosenyi, eup?a bont?i bja bona ba tli?it?e kgodi?o ekonoming. Re humane batho ba bant?i bao e lego boramahlale go t?wa go bona, gape re na le dingaka t?a bokgabo go t?wa dinageng t?a Afrika.
Mmu?o wa rena wo o etelet?ego pele ke ANC ke ngwedi, o bonagala dikgopolo le dipelo t?eo di lego leswiswing. Manyami ke gore ge o e ya go wona ka t?e mpe, o ka se lokelwe ke selo ka ge t?e mpe di sa batamele ngweding. (Translation of Sepedi paragraphs follows.)
[Let praise be given to our government because our people are able to cross the borders back to South Africa. These people contributed a lot back then when black people were still oppressed. Black people fled to their countries for safety and they welcomed them. Some of the refugees bring crime to our country, but most of them bring economic growth. We have many scientists and specialist doctors from other African countries.
Our government that is led by the ANC is like the moon; it shines its light on the minds and the hearts that are in darkness. The unfortunate part is that when you go to the government with bad intentions, you will not succeed since bad things will never come closer to the moon.]
The purpose of Trade and Industry is to build an equitable global trading system that facilitates development by strengthening trade and investments. It links with key economies by fostering African development through regional and continental integration and development co-operation in line with Nepad. The Mzansi project is aimed at showcasing South Africa's arts and crafts that will be launched in 2009. Improvement of international relations ...
... e tla dira gore go be le tlhlolego ya me?omo le kgodi?o ya t?a ekonomi. Ke eme mo go hlatsela le go thekga seo se bego se bolelwa ke Tona ya rena. Go a bont?ha gore re a sobelela; re t?wela pele ka leeto. Morago gona ga re sa boela. (Translation of Sepedi paragraph follows.)
[... will bring about job creation and economic growth. I am here to stand by and to support what has been said by our Minister. The journey continues. We will never go back.]
I thank you. [Applause.]
Chairperson and Minister, a lot has been said about the 52nd ANC conference in Polokwane and the policy directives of the new government and administration. When debating Budget Vote 32, it is necessary to evaluate the impact that Polokwane is having on the economic deliverables of South Africa.
Minister, I support the view of political scientist, Adam Habib, who said that Polokwane had two results. Firstly, it was a rebellion against the previous President, Thabo Mbeki, and, secondly, it was a revolution against capitalism and the Gear policy. The result of Polokwane further manifests in the fact that the unionists, socialists and communists have indeed taken over the heart and soul of the ANC. [Interjections.]
This reality is indeed prevalent in the post-Polokwane administration policies, directives and the appointment of Ministers and officials. This might be a short-term gain for the ANC, but is certainly not in the best interest for a long-term, sustainable growth and economic recovery after the worldwide economic recession. Hon Minister, nowhere in the world has a leftist, centralist approach been more successful than a free-market- related economy with a social conscience.
It seems that the post-Polokwane administration is more concerned about the poor than the real economic drivers and forces of the South African economy. To make almost 30% of the South African population dependent on state support seems to be beneficial to the ANC, especially during election times; then a food parcel can buy a vote. [Interjections.] If you listen to the senior leaders of the ANC when they say that the ANC will govern until God comes home, you will understand the rationale behind their original thinking. Their argument is to make the people poor and, through centralisation and government schemes, you can govern them and control their everyday living and wellbeing.
I am not a prophet, but it is a fallacy to think or to argue that the ANC will remain intact or in control forever. [Interjections.] I predict that the ANC will not survive another 10 years in government. [Interjections.]
Voorsitter, hoekom s ek so? Die eerste rede is dat le en vals beloftes die ANC gaan inhaal. Terwyl die privaatsektor 170 000 poste verloor het, kondig die regering aan dat hy 500 000 poste deur die Uitgebreide Openbare Werke-program gaan skep. Die tweede punt is dat die ANC as 'n organisasie, en as 'n onnatuurlike alliansie, nie ongeskonde gaan bly en in sy huidige vorm gaan voortbestaan nie.
Ons is bewus van die voortdurende struwelings tussen die kommuniste, die vakbonde en die gematigde ANC. Derdens, Voorsitter, en dalk die mees belangrike, is dat die arm mense van Suid-Afrika in opstand gaan kom teen die ekonomiese verdrukking. [Tussenwerpsels.] (Translation of Afrikaans paragraphs follows.)
[Chairperson, why am I saying this? The first reason is that empty and false promises will come back to haunt the ANC. Whilst the private sector lost 170 000 jobs, the government is proclaiming that it will create 500 000 jobs through the Expanded Public Works Programme. Secondly, the ANC as an organisation, and as an unnatural alliance, will not go unharmed and continue to exist in its current state.
We are aware of the continuous ructions among the communists, the unions and the moderate ANC. Thirdly, Chairperson, and perhaps most importantly, is the fact that the poor people of South Africa are going to revolt against the economic oppression]. [Interjections.]
Thank you, Chair. [Applause.] [Time expired.]
Chairperson, hon Minister, Deputy Ministers, officials of the department, distinguished guests, ladies and gentlemen, I am one of the fortunate, because I can rightfully quote Polokwane as I was a delegate at Polokwane. [Interjections.] Here you have somebody who is quoting a person who was not even in Polokwane - what a joke!
Allow me to dedicate my speech to the poor in our villages, towns and cities, workers, youth, women, public servants, professionals, students, traditional leaders, farmers, religious leaders, soldiers, policemen and women, businesspeople and people from all walks of life who continue to contribute to our revolution on a daily basis.
The 22 April 2009 result of the election, coupled with the turnout, caused me to dedicate my speech to them. I can still hear the echo of their voices as we were going from door to door. We are more than grateful for the mandate given to the ANC.
We are meeting today in a month in which we will be celebrating the birthday of our icon, Tata Nelson Mandela. We will celebrate Mandela Day through community work with the theme of working together for the common good of our nation. This community work will be part of the partnership for reconstruction, development and progress, as announced by the President in his presidential inauguration address this year, in 2009. So my appeal to the hon members of this House is not to wait for 18 July to put to practice their working together for the common good of our nation. The common good will benefit all people from all walks of life, as articulated in my introduction.
The budget, as presented by the Minister, is very encouraging and inspiring. It is really inspiring, because it is done in an honest way that lays a concrete foundation for now and the future. The recent workshop by the Deputy Minister, Maria Ntuli, in Nkangala, Mpumalanga province, gives real hope to the people as real geographical economics spread.
The ANC has made a direct and practical response to the UN-generated criteria on the right of development. They are as follows: the conditions of living for most of the people, the conditions under which they work, and equality of access to resources.
A meaningful transformation should be the order of the day. I am referring to transformation as articulated by Paulo Freire who says:
Transformation is only valid if it is carried out with the people, not for them. Liberation is like childbirth, and a painful one. The person who emerges is a new person - no longer an oppressor or oppressed, but a person in the process of achieving freedom.
The achievement of democracy in 1994 marked the birth of our democracy as an African nation on the southern tip of the continent. It provided South Africans with the opportunity to set up a government based on the will of the people and to pursue economic growth, development and redistribution so as to achieve a better life for all. These tasks, which are at the core of the national democratic revolution, have to be undertaken in a global environment of contradictory tendencies. You will agree with the ANC that, indeed, we still have challenges of a global environment of contradictory tendencies.
We are definitely going to monitor department agencies, such as the National Empowerment Fund and Khula Enterprise to ensure that equity and empowerment objectives are achieved in line with the broader economic objectives. Indeed, we are definitely also going to monitor the payment system of small enterprises within the stipulated timeframe.
In its 2009 election manifesto, the ANC promised the people of South Africa that it would create more jobs, decent work and sustainable livelihoods. In living up to these promises, the ANC is committed to making the creation of decent work opportunities and sustainable livelihoods a priority. The correct contextualisation of the political mandate, as articulated by the Minister, gives the ordinary masses hope. It is clear that it will lead to and facilitate access to sustainable economic activity and employment for all South Africans through the understanding of trade relations.
Allow me to emphasise my point by quoting:
Our work is far from complete. We are only at the beginning of a long journey to a truly united, democratic and prosperous society, based on the principles contained in the Freedom Charter. Yet we are confident that the strategy and policies we have adopted will take us further towards the goal of a better life for all.
That is the declaration of the 52nd conference of the ANC in Polokwane. [Interjections.]
In conclusion, allow me to quote the icon of our struggle, Tata Nelson Mandela, when dealing with the President's Budget Vote in the National Assembly on 22 April 1994:
When we seek to stop change and prevent equity, then we should know that we are not being true to the nation's founding principles.
I thank you. [Applause.]
Chairperson, hon Minister, members of the provincial executive committees, permanent delegates to the NCOP, hon members, despite my advanced years I am one of the two new kids on the block in the Ministry collective of the Department of Trade and Industry. However, my association with the DTI stretches back several years as a member of the portfolio committee.
I am therefore fortunate to have some insight into the challenges that face this huge department, whose primary role is to promote employment and equity through economic growth within a developmental state. As the ANC we will make no apology for this. This is the mandate endorsed by the majority of the electorate in April when we were returned as the governing party for the next five years. Therefore, if this is our mandate, it stands to reason that we must increase the pace and quality of delivery to our communities in order to realise our goals of creating decent work and sustainable livelihoods.
I'm pleased to note that the Enterprise Organisation, the division at the DTI that deals with grants and other incentive schemes, has an increased allocation in the current budget. The rationale for this is that expenditure on incentive schemes for small and medium enterprises will increase, and my wish is that it does so significantly.
Angisho ke njengalaba bantu abahlabelela le culo elithi: Ngimile ngimile eJordane, abanye bayawela ngithi abantu sesikhulise lemali ukuze bafike eJordane bawele. (Translation of isiZulu paragraph follows.)
[I do not want to sound like those people who are singing the song that says: I am standing on the banks of the river Jordan while others are crossing it; I am saying that we have increased these funds so that people can reach the river Jordan and cross it.]
This is a good sign and indicates that the development of small enterprises remains one of our top priorities. In the same light, the South African Micro-Finance Apex Fund has had an increase in its budget. This is a fund that assists vulnerable communities, mainly those in the rural areas.
Our budget shows impressive figures of businesses that have been assisted by our agencies, which are the Small Enterprise Development Agency, Khula and the National Empowerment Fund. While I acknowledge the role of our agencies and divisions in assisting communities, we dare not claim easy victories about our achievements. There are still challenges that need our attention, and one of them is the issue of procurement.
The reality is that we are not always getting value for the money spent and we have not successfully measured the impact of our programmes on the lives of the most vulnerable. We need to monitor our spending patterns much more closely, and here I would appeal to the select committee to exercise their oversight role robustly, if necessary.
It is the members of this Chamber who, via their provincial responsibilities, are closest to their communities and who I expect to confront us, as the DTI, with the realities. Continue to be our moral compass and redirect us, where necessary, to the path of economic upliftment and empowerment of our constituencies, particularly women and the youth.
On the matter of provinces, I have committed to meeting all the nine MECs to gauge what programmes they have prioritised for those who are currently operating outside of the mainstream economy. I also asked the MECs to form a better partnership with us, in order to enhance each other's work and prevent duplication.
So far, I have met the MECs of Gauteng and the Western Cape and will complete all meetings before the end of July. I must say that what I have heard so far has given me considerable hope that together we can do more. There is no "one" in teamwork.
We cannot escape the fact that we present the budget against the backdrop of an economic crisis that has and will continue to affect all of us. Therefore, the matter of resources will always be an issue. We have to look at creative ways to make our budgets stretch. One of those I mentioned earlier; we are asking our provincial colleagues to partner with us in joint programmes.
Last night, I opened our National Co-Operative Mega Expo and Conference in Pietermaritzburg. The event will run until Saturday, 4 July, and it will be attended by 500 co-operatives from all over South Africa. [Applause.] The Department of Economic Development of KwaZulu-Natal, together with the municipalities of Msunduzi and uMgungundlovu, generously co-financed this event with the DTI.
I wish to convey my sincere thanks to MEC Mabuyakhulu, and the mayor of the two municipalities for their visionary thinking. Other provinces also provided logistical support to co-operatives from their regions, making it possible for them to attend the event. Of course, we would like to see the private sector partnering with us in this initiative. Maybe my next round of meetings after the MECs should be with the CEOs. In this way we are trying to co-ordinate our work better, and also free up resources that can practically and materially benefit co- operatives and other small enterprises.
We also need to grow the number of registered co-operatives. Besides the 17 000 registered co-operatives, there are more than 800 000 informal structures such as stokvels, burial societies, rural women's organisations, church women, and so on. As we know, many of these informal saving societies and buying clubs are in the rural and peri-urban areas, and their membership has largely been women. I'm sure there are hon members of this House who, like me, are also members of such clubs.
I aim to intensify the work started by my predecessor in making sure that communities know what it is that the DTI can offer. To those who want to start or grow their businesses, my focus will be on rural, peri-urban, mainly women and youth formations. This, as always, will be done in conjunction with our provincial departments and local government counterparts. We will also explore the possibility of public-private partnerships for these events, because together we can do more.
Regarding enterprise development, our experience has taught us that there are challenges facing SMMEs, including managerial skills, access to finance, technological expertise and the overall capacity to deliver products and services to the market.
We will strengthen our response to these challenges through the further roll-out of the integrated small business strategy. This strategy aims at supporting small enterprise development through a matrix of programmes guided by five key strategic areas of intervention.
In short, the first strategic area of intervention focuses on improving access to business support information; the second will focus on increasing access to business finance, particularly micro and small enterprise finances. The third area of intervention lies in creating opportunities that provide small businesses with access to markets. The fourth strategic area focuses on forging partnerships for the establishment of business support infrastructure. Lastly, the fifth strategic area focuses on creating an enabling regulatory environment for the development and growth of SMMEs. The details related to these five strategic areas are well documented in the DTI Medium-Term Strategic Framework for 2009-12.
Next year our country will host one of the world's premier sporting events, the Fifa Soccer World Cup. Our small business entrepreneurs must benefit from this and other global events staged by our country. The implementation of the five aforementioned interventions must be fast-tracked, especially the one regarding access to finance.
In this regard, I am pleased with the move by Khula to provide direct lending to the underserviced market for amounts between R10 000 and R250 000. But please, Khula, watch the interest rate that you will charge. Keep it as close to the repo rate as possible or Governor Mboweni will have to investigate you as well! [Laughter.]
Regarding our programmes for the economic empowerment of women, I am disappointed that we have not managed to increase the budget for the work of the South African Women Entrepreneurs Network, Sawen, significantly. However, I'm sure that, with discussions, we can be creative in making our resources stretch. Sawen remains the primary organisation for women-owned, mainly small enterprises, to access DTI services. We will increase our focus to assist women in rural areas.
I just wanted to say one thing that our women must know: A woman is not a "nobody"; a woman is a somebody who is capable of developing herself.
Ngiyabonga Mhlalingaphambili siyaluxhasa olu Hlahlo-lwabiwo Mali. [Thank you, Chairperson; we support this Budget Vote.] UMntwana M M M ZULU: Sihlalo, ngibonga ithuba onginikeza lona, ngithi Mhlonishwa Ngqongqoshe iqembu lakho lakunikeza umsebenzi omkhulu, wokuthi ubhekelele umnotho kuzo zonke izakhamizi zalelizwe.
Izakhamizi zalelizwe-ke ikakhulukazi lezi ezisemakhaya njengoba nami ngiyindoda yakwaNongoma. Laphaya KwaNongoma impela ubuphofu bumi ngenhla kunjalo nje kwavala nezimayini ezinjengoHlobani nako Coronation. Kofuneka ukuthi uMhlonishwa uNgqongqoshe, ake ayibheke yonke leyondaba ukuthi kulezikhungo ezikhona kungezame kuvuleke ukuze sikwazi ukuba impilo yethu yasemakhaya ibengengconywana.
Ngiyazi ukuthi umsebenzi obhekene nawo ubhekene nezwe lonke, kodwa angeke neze ngakukhohlwa ukukhulumela isizwe sikababomkhulu iKwaZulu-Natali. Kufuneka ubhekisise lezindawo ezisemakhaya ukuthi kungenziwa njani ukuze kuphucuzeke, ngoba ubandlululo lwalumi ngenhla lubashaya abantu bakithi zinkalo zonke sigijima sohlala eThekwini.
Mhlawumbe ngaleyondlela singeze saya eThekwini naseGoli futhi imijondolo iyophela kulezi zindawo uma uNgqongqoshe noMnyango wakhe bengakwazi ukusibhekelela noma bekwazi ukuqeqesha labantu basemakhaya ukuze bekwazi ukuzisiza ngalezi zikhungo ezikhona ngoba lezi zikhungo zicosha imali eningi kakhulu kuhulumeni okufuneka ngabe isiza abantu.
Bengicela Ngqongqoshe, kusabiwomali sakho sonyaka njengoba umusha, ufake izicathulo ezintsha, ukahle unomama naye ufake izicathulo ezintsha useshilo. Ngocela mam ungagcini ngokwenza eMaritzburg lapho sasiqotshwa khona ngobandlululo. Wohambela emakhaya eNkandla, KwaNongoma, eMahlabathini eMashonangashoni uyobona khona izindawo zasemakhaya ukuthi zinjani lezindawo okuthiwa izilali ngokwase Mpumalanga Koloni. Ngiyabonga. [Ihlombe.] (Translation of isiZulu speech follows.)
[Prince M M M ZULU: Chairperson, thank you for the opportunity that you have given me. Hon Minister, I would like to say that your political party gave you a big task of taking care of the economy of this country.
The citizens of this country, especially those who are in the rural areas like KwaNongoma, where I come from, are poverty-stricken , and what makes matters worse is that the mines like Hlobani and Coronation have closed down. The hon Minister must revisit this issue and check if the existing facilities can be reopened so that our lives in the rural areas can improve.
I know that you are catering for the whole country, but I will never forget to speak on behalf of the people of my ancestral land, KwaZulu-Natal. You must focus more on the rural areas and look at means of developing these areas. Apartheid caused a lot of harm to our people in all the regions, which resulted in them flocking to the urban areas.
There will be no need for us to flock to the urban areas, and shanty towns will be a thing of the past if the Minister and his department can cater for us, or train people in the rural areas so that they can fend for themselves through these existing facilities. These facilities take a big chunk from the government's budget which should be used to help people.
I appeal to you, Minister, to utilise your budget allocation for this new fiscal year to make a significant change, just like Madam has said. Madam, you should not only concentrate on Pietermaritzburg where we were brutally killed during the apartheid era. You should visit the rural areas like Nkandla, KwaNongoma, Mahlabathini at Mashonangashoni so that you can see the condition of the rural areas. Thank you. [Applause.]]
Thank you, Chairperson. I find myself being a common denominator among the three Ministers and the Deputy. The hon Rob Davies was my chairperson before he was appointed the Deputy Minister of Trade Industry. I share the economics cluster with hon Ntuli and hon Tobias is my homegirl.
Apparently, hon Sinclair is confused and can no longer cope with the confusion he is causing himself by moving from one party to the other, that is, from the NP to the ANC and to Cope. He forgets that they are pushing for trade liberation and deregulation of capital markets which is a free market today. We are in this economic conundrum crisis in the world. So, you have to relook at your policies.
The global economic downturn that we are facing today has a very negative impact on our fiscus. The Minister of Finance has reported that we are likely to lose R60 billion. We will be forced to borrow from the capital markets, which is not a good idea. We will be burdening our future generations with debt.
However, Programme 7 of Trade and Investment is trying to make sure that we promote our trade internationally and locally in order to be able to create jobs. This programme aims at creating 52 000 jobs within the Medium-Term Expenditure Framework period. However, we would like to know if those are quality jobs and how long they are going to last.
Within the MTEF period, we have been informed that 61% of the budget is spent on incentives. There is a law of diminishing returns in economics and I would like to know from the Minister, of all these incentives, how many are working for us and how many are not? What is the long-term strategic view to turn around the strategy in order for us to create more jobs and improve our economy?
It is, however, pleasing to see that the budget for Trade and Industry, over the MTEF period, is increasing in line with the economic downturn because we need to be prepared for the worst, as the economists say the worst is still coming. We, therefore, need to be prepared for the worst economic downturn as our economy needs to tag along, so to say.
As we move towards the developmental state, development finance institutions have been found to help only 5% of our population, according to Statistics SA. The question is, if development finance institutions help only 5% of our people, 75% are going to loan sharks and the remaining percentage are being helped by commercial banks, what is the role of development finance institutions? That is the information which was provided to the finance committee a year ago by Statistics SA.
As we move towards the developmental state, we need skills as they are central to implementing policies that will enable people to get jobs and improve their lives. The DA says that we are unable to implement skills, forgetting that we are in this conundrum of poor skills, of uneducated people, because of policies they were following as the NP for 40 years.
Remember that a policy takes time before it makes an impact on society. You might implement a policy today, but the results or the output of that policy may only be seen 10 to 15 years down the line. I, therefore, would like to warn the DA that each time they say there is a shortage of skills and the democratic government is not working, they must not forget that they are the main contributors towards the skills shortage in the country.
I want to bring to the attention of the Minister that down in the Free State along the Mohokare River, along the Lesotho River, there is a project that has the potential of creating 300 permanent jobs and 200 seasonal jobs. There is capital there, the plant is there, the organic farm is there; however, the problem is marketing.
The project was stopped more than six years ago because the organic market was still being developed overseas and it was too small in South Africa. How can the department market such products or open organic farming like the one in the community around Ladybrand? They have all the capital. All that is needed is for the market to open.
Chairperson, I think most of the contributions were quite serious in the debate. Unfortunately, I don't think we would be able to respond to all of them in detail. What I will give is an undertaking that we will look through the Hansard when we get it. We will make an opportunity to try to respond to all of them in detail.
I just want to try to respond quite quickly to a number of them. Firstly, Chairperson Gamede was quite correct when he said that ultimately we are going to be judged by what we contributed to job creation. I think what is important about the mandate of the current administration is that job creation is not some incidental outcome from other goals, but it is actually the fundamental rights at the heart of this.
The seriousness of the challenge that faces us is that we are trying to do this in the midst of a very serious global crisis. Otherwise, I think some of our successes would have to be measured in terms of how we could work to save jobs.
On a lot of things that people spoke about, for example, effectiveness of programmes and things like that, I want to say that what we have in place is the policy frameworks, both the industrial policy and the enterprise development. Broadly speaking, we do have the frameworks. The challenge now is to implement them more effectively.
I have been saying that for both of them, there are three C's in some of our challenges. The first one is cadre development. We are going to have to find more people in this country who are going to be recruited into our department and other departments in the economic cluster, who can provide the skills and services that we need. We have been doing quite a lot of work in the last few weeks, recruiting some people into some key positions.
The point is we actually have to be much more active in training people. I have recently appointed a part-time advisor and his first task is to start to liaise with universities about how we can develop a series of courses and programmes so that we can train people for key positions.
The second C is consultation. We need to have much more continuous consultations with economic actors. The third one is co-ordination. It is co-ordination between different agencies that report to the Department of Trade and Industry and the different arms of national government. In my speech I was trying to say that it is between the spheres of government. I think that this House will be interested in those fundamental challenges.
Our approach in trying to resolve the threat of deindustrialisation and job losses is shaped by the national framework agreement, as the hon Chen said. The Industrial Development Corporation has identified that it had some R6 billion available over two years to support firms in distress. It is not just a question of providing funding, but it is also a question of putting that against programmes that are actually going to make some turnaround a real possibility and also against some commitments around job retention. That is what we are working on. In some sectors, we are very close to reaching agreements which would be quite significant.
The next industrial policy action plan is due to come out in January. We are looking for a higher impact one than the previous one. In the meantime, we are doing some work. We are broadening the automotive development programme to include heavy and commercial vehicles. We have been working energetically to try to make sure that we achieve more local production from the infrastructure programme, which is the main countercyclical response.
If there are cases where people have applied to our agencies and have been given a run-around for 18 months, that is unacceptable. It would be very useful if Members of Parliament in this House and in the other House would give us those details when they happen so that we could follow them up. My motto in terms of trying to make sure that we work better is continuous improvement. I don't think there is a magic bullet or a form of restructuring that is going to deliver. What we actually need to do is to continuously improve our ability to deliver on the programmes which we already have in place.
The position in the chief operator office is still vacant and the advert is still out for that post. That is a critical post which we would like to fill very soon. A number of members have asked about the division of labour between ourselves and Economic Development. I would like to say that that hasn't been finalised yet, but Economic Development can play a role in policy development co-ordination. I alluded to that in my speech - that even across the spheres of government there would be some functions transferred to them in the toolbox. What there would not be is some kind of serious dismemberment of the Department of Trade and Industry.
We are working very closely with the Department of Economic Development. In fact, the debates and discussions that we are having on our side are to try and strengthen them in their role, because I see it as quite critical.
In terms of the incentives, hon Mnguni, I think the picture is that I would argue that without those incentives we wouldn't have achieved what we had achieved. But can they work better? Clearly so! Are there some that perhaps haven't achieved what they should have achieved? Very likely. That is also part of the continuous improvement.
I said that most of the contributions were actually serious, and we want to reply to them seriously, but there was one exception. Let me just respond to that by starting off with a quote from the world famous great economist, John Maynard Keynes. He was writing in the age when there wasn't such gender sensitivity He said that practical men, who imagined that they are under no intellectual influences, are usually the slave of some defunct economist.
I would like to just leave it to the hon Mr Sinclair to work out which defunct economist he is a slave of. I just want to say to him that there is no serious government that is trying to grapple with the real, serious challenges of the worst economic crisis since the Great Depression.
There is no example anywhere in economic history where a country has shifted from an economic regime characterised by diminishing returns and set itself on a growth path characterised by increasing returns and that it has done so on the basis of the crude ideological clap-trap that he regaled us with this afternoon. I am sorry; that was not a serious contribution and I can't give him a serious answer. Thank you very much. [Applause.]
Debate concluded.