Chairperson, Ministers and Deputy Ministers, hon members, it is important to note that the Minister has presented a comprehensive account of the performance of South Africa's economy and once more dispelled the myth, particularly within the opposition parties, that the South African economy is crumbling. It particularly covers the massive investment in infrastructure that has got to encourage industrialisation of our economy, thus breaking the old apartheid economic structure. It could be that the fear of the DA and ID is located within that framework.
In February last year, our President, Jacob Zuma, inspired the nation during the state of the nation address with his vision on infrastructure development. He presented a bold plan to the nation, which was received well. Speaking today in the Budget Vote, it is pleasing to note the progress we are making with regard to the transformation of our economy. This is indicative of the bold plans and actions that have characterised systematic implementation of our transformation agenda.
Before I go any further, let me state that we are in a critical moment in unfolding our social transformation, in which the need to alter economic relations is looming larger as a main terrain and the pillar of our overall social transformation. It seems the consolidation of our democracy, going forward, largely depends on economic transformation. There can be no meaningful social progress without economic transformation.
Infrastructure development has long been identified as a major catalyst for economic growth and development in the policy positions and perspectives of the ANC. It is the hub for driving economic restructuring, transformation and development for meeting the economic and social needs of our people and for driving industrialisation. Such an industrialisation must put job creation and competitiveness of our economy at the centre of its outcomes. That is where the ripple effect of infrastructure comes in handy. Infrastructure development must create jobs in the construction of facilities, materials and machinery.
Infrastructure development must create jobs and build the competitiveness of our export industries by developing and expanding local technologies and machinery in the industries. Infrastructure development must therefore strengthen and develop the entire value chain of our local industries. Production industries must benefit on a sustainable basis from our infrastructure roll-out. That is the only way we can be competitive in international markets. The government therefore has to effectively use its procurement, which is relatively large, to develop local production industries.
The New Growth Path, NGP, whose main industrialisation programmatic base is the Industrial Policy Action Plan, Ipap 2, advances these goals to a large extent. The National Development Plan, NDP, also takes this goal of infrastructure development forward by seeking to build local production industries. The world economy is now integrated and operates seamlessly. South Africa is a relatively small economy that can succeed better when it has sound links with other large emerging economies such as China, India, Brazil and Russia in the conglomerate of Brazil, Russia, India, China and South Africa, Brics.
Africa should not only be our growing trading partner, but our starting point. Today, trade among developing economies is much more possible because machinery and technologies for production are no longer an exclusive monopoly of the main global centres of Europe, United States of America and Japan, like it was approximately 30 years ago. This can have the desired effect of progressively changing the skewed global economic structures and also really change developing economies in the south for the better.
We should therefore welcome the R827 billion being spent by state-owned enterprises in the current Medium-Term Expenditure Framework, MTEF, as well as the R430 billion that is being spent by government departments on social infrastructure in the areas of education, electricity, health and roads. Alongside these allocations, we should also welcome the reforms in the procurement of infrastructure. These reforms are aimed at improving or strengthening the efficient delivery of infrastructure within the allocated budget.
The construction industry is historically an industry of a few large players who dominate the entire value chain in the industry. Government procurement must be continually improved to change the sad reality that persists. The recent cases of collusion reported in the media and highlighted by the Minister earlier on are now being investigated by the Competition Commission and are also a sad reminder of monopoly tendencies that are widespread in the construction industry.
Our competition authorities must therefore strengthen their mechanisms not just to minimise monopoly, but to root it out in its historical and contemporary manifestations. Monopoly blocks new entries and thus denies industry the necessary growth. Monopoly escalates prices because it is by nature rent-seeking and rent-securing.
Rail is a major opportunity to address both passenger and goods transport. I am very happy that the new Majuba Railway Line will be built in Mpumalanga this year to transport coal and ensure that our roads are not clogged with trucks. I applaud the announcement by hon Minister Patel that the state will localise the manufacture of trains, including locomotives, coaches and wagons. That will create jobs for South Africans and help to industrialise the country.
There are threats to effective infrastructure build. One of them is bureaucratic delays and another is high costs. With the Infrastructure Development Bill before this House, we believe it will go a long way in dealing with such bottlenecks.
The significance of the Local Procurement Accord is that it brings together the private, public and labour sectors to drive local procurement for the creation of jobs and will also help to improve competitiveness of our economy. These NGP Accords are not just paper agreements, therefore their success should be measured by the impact they make in achieving their development goals. The consistent commitment and reliability of all partners in driving the implementation of these accords is therefore very important.
We applaud the decision to set up a localisation unit for the Industrial Development Corporation, IDC, which will look at every infrastructure project to determine if its components can be made in South Africa. The Presidential Infrastructure Co-ordination Commission, PICC, drives the national infrastructure plan to co-ordinate the activities of 18 strategic infrastructure projects in a manner that will change the economy in relation to production, employment and equity.
This plan will therefore bring to the fore the necessary strengthening of the co-ordination of infrastructure projects in both planning and delivery so as to get maximum economic gains. Part of these economic gains should be a big expansion of our skills, based particularly in the area of artisans and engineering skills.
To conclude, Chair, the ANC, as a leading force for unfolding the fundamental social transformation agenda mandated by its 53rd national conference in Mangaung, will ensure that these progressive policies, which will be for the better and change the conditions of life of our people, will be implemented without fail. We will not be diverted, for this is not just a mere debate for its own sake. Through this we seek to strengthen our resolve for better life for all our people.
The re-organisation of government architecture, as spelt out by the hon Minister, will only help to bring faster change and propel us to greater heights. Let me once more emphasise that, since we are nearly 20 years into our democracy, the dominance of the economic transformation in our polity is proving decisive on a daily basis. In the current political and economic climate it seems we will fail or succeed based on the progress we make on the economic front. And I dare say that, based on the resounding success we have made in the delivery of social services and the ANC track record, working with our people, we will not fail. The ANC supports the Economic Development Budget Vote because it is a budget forever. Thank you.