Chairperson, hon Minister of Trade and Industry Dr Davies, Deputy Minister of Trade and Industry, chairperson of the portfolio committee, hon Joan Fubbs, and hon members, we are all in agreement that the eradication of poverty is one of the biggest challenges facing the South African economy.
It is only a vibrant and growing private sector that can grow the economy and that can create wealth. Furthermore, the support of economic growth is, in turn, closely related to the core issues of this department.
The withdrawal of money from the economic cycle in the form of taxes and levies to fund government, and particularly to fund this department, is something that inherently limits economic growth. It is, therefore, of the utmost importance that we should be asking ourselves critical questions as to this department's spending and its functioning, such as whether the performance of this department is really in support of what the economy needs.
Hon Minister, you have presented to us a highly ambitious agenda for the next few years. The proposed budget that we are debating today is much smaller than that of the past year. It is smaller, even if we take into account that some of the functions and entities of the Department of Trade and Industry are about to be transferred to the Department of Economic Development. This budget cut is a good start and opens the door for a serious review of the productivity and success rate of the Department of Trade and Industry. However, the department was not doing too well when measured against the five strategic objectives that it set itself in 2006, and let me remind you of these objectives.
Nowadays, one seldom hears of, the Accelerated and Shared Growth Initiative for South Africa Asgisa, which was the first objective. The focus is still on employment creation, but with 850 000 real jobs being lost during the last year, the department cannot claim success regarding its second objective.
Its third objective was to raise the level of exports and the promotion of global trade. In this regard, the department and the South African economy have also slipped. In the 1980s, when sanctions were at their height, South Africa's exports were growing faster than over the past few years; and our share of the world export trade has slipped from 2% 60 years ago to 0,5% in recent years.
The department's fourth strategic objective was to promote broader participation, equity and redress in the economy. Although this is difficult to prove statistically, it is generally accepted that we have not done too well on that count either, and I refer to the rising gini coefficient.
The fifth and last objective was to contribute to Africa's development and regional integration within the New Partnership for Africa's Development, Nepad. It seems as if the government has also abandoned this ideal, as one nowadays seldom hears Ministers referring to Nepad initiatives. So, we are looking at a state department that is seriously in need of new objectives, having failed dismally at reaching its previous ones.
At present the buzz word or term in government is "monitoring and evaluation". Monitoring and evaluation, I'm sorry to say, cannot replace good governance and good management principles, principles that unfortunately are often lacking in government today.
I therefore want to highlight a number of management issues that should be put under the spotlight in the coming year, hon Minister. The management of staff, including the filling of posts, remains a serious problem. There can be no defence for a department that is running with almost one out of every five approved posts being vacant.
Secondly, hon Minister, I believe that the lack of speed with which some processes are dealt with is in serious need of your attention. To mention just two recent examples, and one of those has just been referred to by my colleague, hon Marais: During November last year, the hon Minister signed an agreement with his Zimbabwean counterpart. As is customary, this agreement will only come into effect once both Parliaments have ratified the agreement.
Our Zimbabwean counterparts, despite their enormous problems and internal strife, have already done so. Why has the department not yet sent this agreement through to the Speaker of the National Assembly to put this on our Parliament's agenda?
A second example: Grain SA submitted an application for a revised import tariff on wheat in October last year. It took the International Trade Administration Commission of the Department of Trade and Industry, Itac, more than six months to consider this application and to announce the revised tariff. As is so often the case, it will probably prove to be a case of too little, too late for this agricultural season. Again, departmental delays have failed the economy.
Wagtye vir die registrasie van besighede en besigheidsname by Cipro, die ou Registrateur van Maatskappye, het oor die laaste jaar drasties verswak.
Die grootste skade aan die ekonomie is na my mening egter nie hierdie vertragings nie. Die grootste skade wat aangerig is, was deur die onwilligheid van senior personeel in die departement om daadwerklik op te tree toe die korrupsie die eerste keer, meer as 'n jaar gelede, aangemeld is. Persone wat dit durf waag het om korrupsie uit te wys, het geen beskerming geniet nie. Hulle kontrakte is gekanselleer. Hulle is geskors. Hulle is selfs daarvan aangekla dat hulle inligting met die polisie deel, en dis 'n klagte wat ek swart op wit gesien het wat vandag nog oor 'n Cipro- amptenaar se kop hang.
Die departement kan in hierdie opsig groot siviele eise verwag, en ek is bevrees dat daardie geld waarskynlik nie verhaal sal word van die amptenare wat daartoe aanleiding gegee het nie. Daardie amptenare, terloops, sit na meer as 'n jaar nog steeds en verdien hulle enorme salarisse, ten spyte van hul betrokkenheid by hierdie korrupsie.
Vertraging in die registrasie van besighede is sleg vir die ekonomie, maar die skade is klein as dit gemeet word aan die skade wat korrupsie reeds aan die ekonomie van baie ontwikkelende lande aangerig het. Die klimaat wat geskep word waarin korrupsie so gedy, staan in sterk teenstelling met die DA se visie van 'n oopgeleentheidsamelewing.
Dit bring my terug by my oorspronklike vraag: Is die Departement van Handel en Nywerheid werklik besig om die bre Suid-Afrikaanse ekonomie tot diens te wees, en beskik die departement oor die vermo om uitvoering te gee aan die nuwe, ambisieuse planne van die Minister? Ongelukkig glo ek die antwoord is tans steeds "nee." Minister, ons wens u egter alle sukses in die program toe en ook in die bou van kapasiteit by die Departement van Handel en Nywerheid. Baie dankie. [Applous.] (Translation of Afrikaans paragraphs follows.)
[Waiting periods for the registration of businesses and business names at Cipro, the old Registrar of Companies, have worsened dramatically over the past year.
However, the biggest damage to the economy, I believe, has not been caused by these delays. The biggest damage was caused by the reluctance of senior staff in the department to act decisively when the corruption was initially reported more than a year ago. Individuals who dared to report corruption had no protection. Their contracts were cancelled. They were suspended. They were even accused of sharing information with the police, and this is a charge I have seen in black and white which is still hanging over the head of a Cipro official at the moment.
The department can expect major civil claims in this regard, and I am afraid this money will most likely not be recovered from the officials who are responsible for the situation. By the way, those officials are still earning enormous salaries after more than a year, despite their involvement in this corruption.
Delays in the registration of businesses are bad for the economy, but the damage is minimal when compared to the damage that corruption has already caused to the economies of many developing countries. The climate which is being created that allows corruption to flourish is in sharp contrast to the DA's vision of an open opportunity society.
This brings me back to my initial question: Is the Department of Trade and Industry really engaged in serving the broader economy, and does the department have the capacity to implement the Minister's new, ambitious plans? Unfortunately, I believe the answer currently is still "no". Minister, we however wish you success with the programme and also with building capacity at the Department of Trade and Industry. Thank you very much. [Applause.]]