Mhlalingaphambili, namalungu abekekileyo ale Ndlu yoWiso- mthetho, ndiphakamela ukuxhasa le Voti yoHlahlo-lwabiwo-mali yama-28. Ningaqhwabi kakhulu, niza kulila kwangoku. [Kwahlekwa.] (Translation of isiXhosa paragraph follows.)
[Mr B H HOLOMISA: Hon Chairperson and honourable members of the National Assembly, I support the Budget Vote No 28. Don't be too excited and applaud much; you will be disappointed very soon. [Laughter.]]
The dismal performance regarding employment proves beyond reasonable doubt that government's economic policies have failed to grow our economy at the levels required to reduce unemployment and eradicate poverty. This occurs against the background of the ever increasing gap between the haves and the have-nots. In addition, South Africa seems to be on a fiscal slippage. In the 2007-08 financial year, our budget balance declined from a surplus of 1,7% to a deficit of 5,2% in the 2012-13 financial year. Our debt to gross domestic product, GDP ratio has increased from 23% in 2008 to approximately 40% in the 2012-13 financial year.
Corruption and wasteful expenditure in government have reached crisis levels. With the bleak picture I have sketched thus far, it is not difficult to conclude that South Africa is on the slippery slope to becoming a subinvestment-grade country. We need to take decisive steps to turn the situation around and there are, unfortunately, no shortcuts to long-term success.
To reduce unemployment, government needs to develop an environment that is conducive for small and large businesses to flourish. It must not be the current situation where you find companies that employ workers from neighbouring countries. The so-called outside investors that we find in every corner of South Africa do not give work to South Africans, but exclusively employ their families and friends.
We have to consider whether businesses should not be compelled to ensure that 60% to 70% of their staff complement is made up of South Africans. Government can develop the aforementioned environment by, amongst other things, ensuring that there is the required level of labour flexibility in the economy. This means that the labour market framework should enable businesses to frame appropriate responses to changes in market conditions. For this to succeed, government would need to begin to reign in its alliance partner, the Congress of South African Trade Unions, Cosatu, which seems only to be interested in protecting the interests of the employed at the expense of the unemployed.
In conclusion, in the past many raw materials were processed domestically, but today most of these factories are closing down in droves. The common denominator is their inability to compete with imports from countries where such products are subsidised by their governments. Government needs to root out corruption and wasteful expenditure in the system and adopt policies that are aimed at reducing its deficit and debt accumulation.
Andinibethanga kakhulu noko, ndicebisile. [I didn't criticise you that much, I have advised. [Laughter.] [Time expired.]