Mr Speaker, Parliament is engaged in deliberations on the Industrial Policy Action Plan. Most of the industry which appeared at the public hearings, as well as trade unions, called for subsidies, export credits, high tariff import areas, privileged procurement practices, and monopolistic and dominant market positions, in order to maintain their viability and employment levels.
This is the flipside of the announcement that the Chief Whip gave us about the BMW contract. Neither the fiscus nor consumers have sufficient money to pay for all these protectionist measures, which unavoidably result in higher state expenditure and consumer prices.
Our government should rather focus on identifying one or two industries which, through massive and focused state assistance and intervention, can be turned into winners, capable of producing goods and services for the entire world. The global factory is the new dimension of manufacturing in the post-Depression economic environment. These should become the focus of the Department of Economic Development, so as to follow the Taiwanese model of development.
Let us have a rendezvous with history, by readying ourselves to meet biotechnology where it will be in 10 years' time, rather than a thousand unsustainable subsidies. Let us invest in a Silicon Valley-type biotechnology park, funded by government, to become the catalyst for the incubation and the development of such an industry, with shared government- funded facilities for research and development, laboratories, product commercialisation, and purchasing of foreign technology for domestic investment.
By taking bits and pieces from the Department of Trade and Industry, the Department of Economic Development is adding no value but is creating problems, such as removing Khula Direct from the same administrative functional line to which the National Empowerment Fund, NEF, belongs.
Hon members, just for your information: In case more members are curious as to why Minister Manuel is not seated in his usual seat, the Minister recently underwent a back operation, and arrangements are being made for him to sit where he is standing. [Laughter.]