Chairperson, hon Minister and Deputy Minister, hon members of this House, colleagues and comrades, the Trade and Industry budget has been structured to support productive investment; regeneration of industry underpinned by a strategic trade direction; and a suite of standards, quality assurances, accreditation and metrology. Many of us began to understand metrology as a kilo of beef in South Africa also being a kilo of beef in Europe. The budget objectives are intended to create an environment that will overcome structural employment impediments.
I wish to thank members of my committee for working many long hours on the Budget Vote and the deliberations. It was with concern, however, that I have noticed that one of our members certainly didn't clearly perceive that continuity and change mark the capacity of our government, in this fourth term of Parliament, to tackle the serious economic and structural challenges, exacerbated by the global economic crisis, that were not that evident during former President Mbeki's tenure.
If I may get back, we need to understand the budget as an instrument of policy, through which resources are allocated to achieve imperatives of efficiency, equity and developmental objectives. The question then is: How far does the DTI go in achieving these imperatives within the overall priorities outlined by President Zuma in the state of the nation address?
Certainly, if we look at the large expenditure book, which probably serves as a door stop, regrettably, in most homes, the DTI states that -
It aims to lead and facilitate access to sustainable economic activity and employment for all South Africans.
Yes, I would agree that a restructured economy is vital in achieving accelerated economic growth and radically increased employment and greater equity, if we accept that people have been burdened by structural unemployment, exacerbated, not caused, by the global economic crisis.
Prior to the global economic crisis of 2008 and 2009, as all of us are aware, South Africa achieved unbelievably high growth rates in the period 2005 to 2007. But this masked, as we know, key structural imbalances in the South African economy. That did not start with former President Mbeki. That is not where these imbalances started; it started long before, and we all know that.
Regrettably though, the academics have befuddled us with their different definitions of poverty. Just about everyone is poor these days, they tell us, and by doing this they have literally disenfranchised the unemployed.
What we need to understand, and what we understand as the ANC component of this House, is that the DTI recognises that manufacturing will have to drive decent work. The jobless need a structural solution - we all agree on that - and not a semantic, social investment band aid from either this government or the private sector. No, it doesn't.
Fortunately, the DTI has begun, with determination, to adopt selective, strategic trade actions that will serve to underpin the reconstruction of our industrial base, and not having our poor little industrial base trying to drive a trade strategy, or trade doing it the other way around. We know that we must accelerate both industrialisation and trade.
Essentially then, we can't just promote exports. We also need to encourage and promote domestic demand, and to devote more attention to regional markets. We are Africans, we are not European, so let's drive an African market. Essentially, we need to find a balance between supply and demand by productive investment.
The DTI has appropriately, I believe, understood that this budget must bring together the macro economic fundamentals and micro economic principles, so that the consequential energy from macro and micro principles can enable our country, our Cabinet colleagues and the sister departments to work together to achieve the mission of this government. We cannot divorce National Treasury's macro fundamentals from the requirements of a micro economy, about which we know the Minister of Finance is developing a deeper and deeper understanding.
Minister Gordhan made it clear only this morning that he will not allow the independence of the SA Reserve Bank to be compromised and the welfare of our people to be jeopardised by cavalier little corporate shareholders. We won't allow that. This year, the launch of Ipap 2 marked a further move to implement measures that encourage a synergy between the macro and micro elements in our economy.
If we unpack the DTI's budget, it rightly identifies the critical challenges of unemployment, de-industrialisation and inequity. In this regard, this nation is made of stronger stuff than water.
If we unpack this budget then, we will see that the DTI has allocated 81% to the following programmes: R3,2 billion or 5,5% of its budget to Programme 6, which is enterprise organisation; another R1,1 billion or 17% of its budget to the industrial development and empowerment programme; and then we also have R777,8 million - roughly just under a billion or 12,7% - to enterprise development.
Incentive measures - yes, we do need incentives at this particular time, and we need support for investment, job creation and regional economic development. Indeed, the empowerment in enterprise development - which I know Deputy Minister Maria Ntuli will flesh out and tell us a lot more about - is an area in which you have the co-ops, the small, the medium, the micro and yes, other larger enterprises.
Essentially as a budget-deploying, labour absorption practice, we can honestly say to Cosatu and any other union that this is a worker's budget, and it is an entrepreneur's budget, but it is also a people's budget. This is because it not only relies on the restructuring of the economy, but it also supports consumer protection.
In particular, the National Consumer Commission has been allocated R24,8 million, about 13%, from the Consumer and Corporate Regulation Programme. That programme gets about R191,5 million, which is all in all just over 3% of the DTI budget.
I just want to refer again to growth; that was driven by unsustainable increases in credit extension and consumption and was not sufficiently underpinned by productive sectors of the economy. Now I happen to know that the hon Turok and the hon Njikelena know a lot more about this and I'm sure they will be giving us greater detail in this regard. I'm also conscious of my time constraints.
Earlier we heard our Whip, hon Radebe, address us, and I must personally, on behalf of the Portfolio Committee on Trade and Industry, convey our heartfelt condolences to hon Radebe and his family. I must say that I think that every member of our portfolio committee, from whichever bench or party, appreciates the presence of our Whip here with us today, if only for a short while.
I know that he has referred to "tenderpreneurs" and the negative impact that they have on employment creation and domestic and international competitiveness. I think that the other area that he, and others, of course, also referred to has been Cipro, and I must say we appreciate the action that has already been taken and we look forward to being kept abreast of other measures that will be taken in this regard.
This committee, every member of this committee, is opposed to the kind of corrupt practices of some members in Cipro that has brought the DTI into disrepute. We will jealously guard our regulatory mechanisms to ensure that this cannot and does not happen again.
What is important for us to appreciate is that the Minister of Finance allocated an additional - over and above the budget that we have already - R3,8 billion in terms of the allocation to clothing and textiles and the automotive or vehicle industry on a kind of 50/50 basis.
If some of the members are from the Eastern Cape and studied the budget report that came out of there from the MEC, they would have seen the references being made to the high retrenchments that came about some months or a year or so back, and how this injection will revitalise an essential component of the Eastern Cape economy.
Again, I know that the natural resources are going to be tackled in depth by hon Turok, as will the motor industry development programme, etc, and all the chemicals and so on. What I do want to say is that other middle- income countries are not standing still. They are taking serious steps to develop their competitive edge. We all know that there was a time when Brazil was standing behind us, and now I believe they have edged ahead with the support and help of the Brazilian Development Bank known as the BNDES.
Don't worry, they also have a lot of corruption; I believe they are running around with the equivalent of AKs and have armoured vehicles just to transport themselves. However, what I do want to say is that the committee, in its report and its engagement, noted the absence of a trade policy, but we are aware that this is being developed and has already been launched with a discussion document - the South African Trade Policy and Strategy Framework - which reflects a strategic developmental approach.
Lest I run out of time, it would certainly not be helpful if I overlooked the recommendations made by this committee. Just to note some of the key recommendations ... [Interjections.] Well, let me just say that the ANC supports this Budget Vote. Thank you. [Time expired.]