Mr Speaker and hon members, the failure of the President to implement the youth wage subsidy is a failure of political leadership that shames us all. This is the first time in our democratic Parliament that a President has announced a policy, but has not been allowed to implement it. Let me remind this House that Parliament voted for the youth wage subsidy in the 2011 national Budget, along with the implementation date of 1 April 2012. We realise now that we have all been taken for fools.
Because the President allowed an unelected organisation to block the will of the people represented in this House, the youth wage subsidy never saw the light of day. Surely our President cares more about the young unemployed people of South Africa than he does about the vested interest of Cosatu and about his re-election prospects in Mangaung. While the President dithers, more and more young people are being sucked into a vortex of despair. Youth unemployment stands at 3,2 million young people and counting.
We need a policy that strikes at the very heart of the problem that a young person cannot get a job without experience, and cannot get experience without a job. Now, the ANC is beginning to talk up what it calls a "job seekers' grant". But it is not clear how this would create jobs that young people so desperately need. The job seekers' grant is the wrong intervention, in the wrong place, at the wrong time. Rather than giving young people a foothold on the ladder of opportunity, it will trap many in a never-ending cycle of dependency on the state.
The youth wage subsidy, on the other hand, would get unemployed young South Africans onto the ladder of opportunity. The Treasury model of the youth wage subsidy calculates that it will benefit 423 000 young people in the first phase of implementation. The big question today is, where is the hon Pravin Gordhan? Has the President muzzled him until after the votes have been counted in Mangaung?
It would seem that the responsibility for the youth wage subsidy now lies with the hon Ebrahim Patel, who is a senior member of Cosatu. We hope that he is not here today to deliver a watered-down version of this policy, because South Africans will not be fooled. In his response to my parliamentary question last term about potential compromises that the government might make in its engagement with Cosatu on this policy, President Zuma proposed sweeping powers for the National Bargaining Council to control sectoral implementation. This would enable Cosatu to frustrate the implementation of the subsidy.
The President also said that the number of incentivised workers in any given firm may be limited to one beneficiary for every five existing workers. What kind of government goes to so much trouble to limit the number of jobs that we can create? Will Minister Motsoaledi soon be placing limits on how healthy our nation's citizens are allowed to be? Will we soon hear from Minister Motshekga that we don't want our young people to be too well educated?
The time has come for the President to demonstrate what he is made of. It is time he demonstrates who is running South Africa, because right now it looks like Cosatu is governing this country. For the sake of millions of young South Africans, let us today resolve to do the right thing. Introduce the full youth wage subsidy policy now. I thank you. [Applause.]
Madam House Chair and hon members, youth unemployment is a major challenge as millions of young people - the talent base of our society - are left without jobs and without hope. Enormous as our challenge is, we are not alone. Youth unemployment is a growing crisis across the world. The International Labour Organisation, ILO, estimates that internationally 75 million people between 15 and 24 years old cannot find jobs. The Organisation for Economic Co-operation and Development, OECD, finds that high levels of youth unemployment have persisted in the wake of the financial crisis and threaten to scar young people, affecting their career paths and their future incomes.
It is important to remember this because, regrettably, a blame game has infused much of the discussion, as if we have policies perversely designed to keep young people out of jobs. There is a saying: "Beware those who come with some simplistic answers to complex problems." [Interjections.]
I have listened to hon Mazibuko's somewhat glib prescriptions to solve our youth employment problems. [Interjections.] The hon member promises everything to everyone from one simple intervention and then seeks to demonise and delegitimise everyone who disagrees, in this case, most of the main youth organisations as well as the major trade unions. [Interjections.] Of course, it is the luxury of opposition to ignore practical realities. If only our world was that easy. The Western Cape, after years of DA rule, would then have had a very different record in terms of youth unemployment. The actual record I wish to briefly share with this august House, based on the latest Statistics SA surveys ... listen to the figures. Currently there are 330 000 people ... [Interjections.]
Minister Patel, can you just hold on a moment. Please, members on this side of the House, can you please lower your voices so that we can hear the Minister. There is not much sense in everybody shouting at the same time. We need to hear the Minister. Thank you. [Interjections.]
Madam House Chair, I would like them to listen to this following data: Currently there are 330 000 people under the age of 30 without jobs in the Western Cape. That is high. In 2009, there were 289 000 people. In other words, 41 000 young people joined the ranks of the unemployed under DA rule. [Interjections.] But that is not all. In the past 12 months, notwithstanding the launch of a youth wage subsidy by the Western Cape, the situation deteriorated sharply. Listen to the facts: Youth unemployment in Gauteng dropped during that period by 100 000 persons. [Applause.] In the Eastern Cape, it fell by 34 000; in KwaZulu- Natal by 28 000. [Interjections.] In contrast, in the Western Cape, youth unemployment actually went up by 45 000 people over the past 12 months according to the Statistics SA data. [Interjections.]
That is not to say there is no place for subsidies for work seekers or work creators aimed at bringing young people into jobs. However, in contrast to the DA, government is working on an inclusive multi-pronged strategy suited to the scale of the challenge we face. Our approach is inclusive.
In June this year, 185 governments assembled with the world's major business and trade union representatives to discuss youth unemployment. Their call for action says young people's voices should be heard, their creativity engaged and their rights respected in dealing with the youth employment crisis. Youth organisations have rightly said, "No solutions for us without us."
We need to forge a consensus on how to address youth unemployment, instead of a "kragdadige" [heavy-handed] approach to push through a single measure in the face of opposition from youth organisations and trade unions. We have now ramped up social dialogue on youth employment. I understand hon members are very uncomfortable with the figures that I have given, but the facts speak loudly. [Interjections.]
From June this year, we have elevated the discussions to leadership level, called in the leaders of Business Leadership SA, the Black Business Council and Business Unity SA, Busa, the representatives of women, disabled persons, civic organisations and, above all, youth representatives drawn from the SA Youth Council, as well as leaders of the Congress of South African Trade Unions, Cosatu, the Federation of Unions of South Africa, Fedusa, and the National Council of Trade Unions, Nactu. [Interjections.]
The parties have agreed on the importance of a compact on youth employment and identified core principles and programmes. They include current and potential private sector initiatives on skills, internships, work readiness programmes and on bridging measures to draw young people into employment on scale. They recognise the value of a public sector programme on youth brigades and public and community works programmes. Again, no single mechanism can address the challenge of youth unemployment.
As the ILO says, we require "an integrated approach that combines macroeconomic policies and targeted measures which address labour demand and supply, as well as the quantity and quality of employment". This is particularly true in South Africa, where we face both a demographic bulge and extraordinary levels of joblessness and exclusion that we inherited. That is why we argued for a new growth path and why Cabinet adopted a the New Growth Path, but structural change takes time. For that reason, we are looking to short- and long-term measures and a package that is proportionate to the scale of the problem.
Hon members, we are taking action as government. [Interjections.] We have set targets for youth employment that have a real effect on youth joblessness. The Expanded Public Works Programme currently has about 800 000 participants. Moreover, Cabinet has decided on substantially growing the Community Works Programme tenfold to a million participants by 2015.
Youth brigades let young people serve their communities and work together. We are talking to our social partners and our youth organisations about setting up health, education, rural and green brigades, amongst others. The howling is not going to change the fact that you have failed in the Western Cape, that your youth unemployment has risen under DA rule. In the past 12 months, it has actually dropped nationally by 105 000. [Interjections.]
The National Skills Accord lays the basis for expanding apprenticeships and internships. The Public Service is committed to 60 000 new internships, about seven times as many as there are today. The private sector and state- owned enterprises, also set themselves stretched targets.
Finally, we are exploring work seeker and work creator subsidies with stakeholders. For the longer run, the New Growth Path identifies key job drivers in the economy, with the National Infrastructure Plan and the Industrial Policy Action Plan as key levers to support them. Where job drivers benefit from government support, we will set targets for new entrants, for instance, in the green economy and in infrastructure, in business process services and in digital migration in broadcasting. We have tabled a proposal for a youth employment committee under the National Economic Development and Labour Council, Nedlac, to consider specific proposals to boost employment for young workers. By building in collaboration, it would avoid unnecessary conflict as well as exploitative programmes. In addition, where young people want to start their own businesses, government will help them. Government is establishing specific programmes for youth entrepreneurs and co-operations, including a role in installing solar water heaters. [Interjections.]
Hon members, education counts. Today, under 10% of young people with tertiary degrees are unemployed, compared to 35% of those with matric and 40% of those who never went to secondary school. The skills and education accords capture strong commitments by the social partners. We will also accelerate work on the Second Chance project for matric. Moreover, the Green Paper on post-secondary education and training foresees a tenfold expansion in Further Education and Training, FET, to about 4 million by 2030, while higher education doubles to 1,5 million. We are working with social partners to improve the transition from school to work, including through expanded counselling and support for job searchers.
Hon members, we cannot address joblessness on the scale left by apartheid through tax incentives alone, but they can play an important role, nor can we help young people through measures that displace older workers. Such an approach will deepen social divisions and poverty. [Interjections.] It has also failed the youth of the Western Cape. Ultimately, we need collective action and solidarity to bring about systemic changes so that the economy can provide opportunities for all. That is the path foreseen in the Freedom Charter; that is the aim of the New Growth Path, the National Infrastructure Plan and the National Development Plan. That is why we need a multipronged strategy to deal with youth unemployment. That is why we say we cannot go the route that has been tried in the Western Cape and that has failed in the Western Cape. Thank you very much. [Applause.]
Thank you, Minister. I must say that the DA asked for this debate, and yet they are not prepared to listen to the debate. So, try and listen to the debate. [Interjections.]
Hon Speaker, after the response of the Minister, I have decided to take the speech and put it aside. One of the reasons is that I must educate the Minister that firstly, the Western Cape does not belong to the DA. The Western Cape is part and parcel of the nine provinces of this country that you, the ANC, are responsible for. Your failure to respond to the country's challenges must not always be shifted to the Western Cape.
More than 2,5 million young people in this country are today loitering in the streets because they do not have jobs. It is your responsibility, but you have failed. You must not redirect your responsibilities to other people.
It is embarrassing for the Minister not to keep the promise that the ANC has made in this House during the President's presidential address. Today you don't have the guts to say that you made promises that you were going to find jobs for the youth.
Where is the funding for the youth? When are you going to implement what you have promised the people? You must not use our people and make promises that you are not going to keep and create slogans to which you are not going to commit. Because of your failure, South Africa can see today that you are not committed to creating jobs in this country.
Of these 2,5 million people who do not have jobs, 1,3 million have given up on the ANC's promises. They do not even go out and look for jobs because they have given up on finding jobs. It is your fault; it is your responsibility because you have promised the people of South Africa a better life for all. Where is the better life for all?
Cope believes that the ANC must stop shifting fundamental policy issues when it will be going to its conference, because it wants to invite patronage for votes.
Where is the President of this country? The country is burning; the President is quiet. The youth is frustrated; the President is quiet. Do we have a president in this country?
In 1993, when the youth of this country went on a rampage after the assassination of Chris Hani, one humble man, a stalwart of the revolution of this country, went out and called for order among the people of the country.
This President, who wants to be elected by this youth that makes his country ungovernable, is quiet. Why do we deserve a populist President in this country? Why do we deserve a President who cannot call the country to order? [Interjections.]
Hon House Chairperson, I rise on a point of order. The hon member is asking if this country has a president. I thought that he would ask when Cope is going to elect a president? [Laughter.] [Interjections.]
That is not a point of order. Can you continue, Mr Bhanga. [Interjections.]
If there is a president, which is ... [Interjections.]
Point of order! Point of order! [Interjections.]
Hon House Chairperson, are you giving me a chance to rise on a point of order?
Let me just take his. Will you please be quiet, I cannot hear! [Interjections.]
Hon House Chairperson ... [Interjections.]
Chairperson, you gave me a chance to rise on a point of order. This Chief Whip has a tendency to stand up in this House and behave as if it is his house. He has no respect for the Rules. [Interjections.]
House of order! House of order!
Chairperson, you gave me a chance to rise on a point of order. I rise on a point of order. It is wrong for this Chief Whip to behave as if we are his children; that he could rise as he wishes in this House ... [Interjections.]
Hon member, can I have your point of order, please. I can hear only if they all keep quiet. [Interjections.]
Madam Chairperson, I rise on a point of order. Will you please make sure that people stop standing up to disrupt the speaker who is rising on a point of order when they know that they are not raising a point of order. [Interjections.]
House Chair, I rise on two points of order. Firstly, it is about what the hon Bhanga has said when he reflected on the integrity of the President and his ability to hold office. [Interjections.] He said that the President is absent, meaning that the President is not performing his constitutional duties. I would like you to call that a point of order and make a ruling on it. [Interjections.] Can hon Kilian allow me to finish my point of order, Chair? I have a second point of order. [Interjections.]
I will decide that, not you! [Laughter.] [Interjections.]
The second point of order concerns what the hon Kganare said when he made reference to the Chief Whip of the Majority Party as having a tendency of undermining the House. I would also like you to make a ruling on the issue. I have noticed that the other side likes howling lately. Thank you very much. [Interjections.]
Alright members, we will check the Hansard for exactly what was said and get back to you with a constructive ruling. Will you continue and finish up?
Hon House Chair, I rise on a point of order. It is very brief. [Interjections.] Yes, it is my member that will be speaking, but I just wanted to say that it is really unacceptable for the Chief Whip of the Majority Party to rise knowing fully well that Rule 47 does not permit any member to speak whilst another member is on the floor or to interrupt that member. Thank you. [Interjections.]
Hon House Chair, all members have the right in this House to raise a point of order. That is all I did and nothing else.
Thank you. Can you complete? [Interjections.] Will you please be quiet now and let us hear what the speaker has to say.
Hon ntate [Mr] Mlangeni, hon Ben Fihla and hon baba [Mr] Buthelezi, are these the jobs and the better life that you have promised us as the youth of this country? Is it what Mandela promised us when he said that we would get jobs from the ANC? Why is the ANC not taking responsibility for its policy failures? Every time you fail in policy matters, you come up with another discussion. Every time you fail in creating a better life for our people, you come up with another discussion.
We are making a call that the ANC should focus more on investing in skills for our people. The ANC should utilise institutions like the SA National Defence Force, which is a training institution, to train good, disciplined and skilled young people. South Africa needs jobs and we need jobs today. You will be judged on your failure to provide leadership. Your days are numbered. [Interjections.] [Applause.]
Madam House Chair, Minister, let us try to have a serene man-to-man discussion on an issue on which the whole country is trying to have some sanity and pragmatism. Common sense would dictate that you do not put a trade unionist in charge of economic development. I always felt differently because our Minister is a man who has brought the gift of intellect and whose heart is in the right place.
Let us call a spade a spade. Yes, the youth wage subsidy will introduce greater flexibility in the labour market and it will hurt some people. This is the very flexibility of the labour market that President Mbeki tasked the then Deputy President Zuma to bring about with amendments to the Labour Relations Act, and Deputy President Zuma failed - as he did with the campaign on moral regeneration of the country. Why is that necessary? Because it is essential to achieve the very goals of the National Planning Commission tabled here less than 24 hours ago.
There has been a wave of empowerment of people who are not necessarily the most apt, the most capable or the best educated. What happened in the past 15 years was a necessity of history and a social necessity. There is a second wave of people, just behind them, who are better trained, well educated and better motivated all round; possibly better people. They can address the very shortcomings of the National Planning Commission, which Minister Manuel identified yesterday, but they have nowhere to go because you, Minister, do not want to take some pain. You do not want your constituency to take some pain.
This is not a time in which one can govern by consensus. This is the time to accept that if u need to make an omelette, you need to break a few eggs. The Minister is walking on eggshells. This is the time for leadership. The tragedy of today is that the Minister has set the rules, but this House does not govern. It is Cosatu that governs by means of a veto power. In fact, you may just have put the first nail in the coffin of the very aspirations and hopes that were tabled here by Minister Trevor Manuel less than 24 hours ago. This is tragic; the country needs decision-making. I do accept that simply decisions do not necessarily mean the right decisions. But history has simple turning points, seen in the benefit of history as missed opportunities. The issue here is simple; we need greater flexibility in the labour market. We need to empower the youth.
Make no mistake, Minister, if there is a second democratic revolution, it will swipe you and all of us around. That second democratic revolution will be conducted not by peaceful means, by the very people to whom we are now trying to give jobs, and against the very people who are less competent, less efficient and less productive that you are trying to protect. You are protecting the concerns of trade unions and placing them above the interests of the country and the interests of South Africa. [Time expired.] [Applause.]
Hon Chairperson, hon members, with 70% of young people jobless, South Africa faces a youth unemployment crisis of epic proportions. Crises such as this one require innovative ways of addressing problems. They demand that we rise above petty political differences and work together to find a solution.
Therefore, the broad support that the proposed youth wage subsidy received from most parliamentary opposition parties was informed by nothing other than the realisation that we, as political leaders, always have to work together for a better South Africa, especially in times of crisis. However, much to our disappointment, the government seems to lack the political will to implement the youth wage subsidy, which this House already approved and budgeted for a while ago. More than two years after President Zuma announced it, its implementation was postponed in April, and it is currently deadlocked at the National Economic Development and Labour Council, Nedlac.
Poor leadership by the government is at the core of the decision to postpone its implementation. Somehow the government seems to allow itself to be held to ransom by the ruling party's many and different factions at the expense of national interests.
Valid concerns about the impact the implementation of the youth wage subsidy might have on employment can be addressed without throwing the baby out with the bath water.
For instance, the unease in certain quarters that this plan will displace older workers and is subject to abuse can be mitigated by putting in place systems that govern how the money is spent, and by placing conditions on the receipt of any such subsidies.
Youth unemployment is a crisis that needs us to act now. We do not have the luxury to engage in endless debates that often yield no results, nor can we afford to fiddle while Rome burns. Thank you. [Applause.]
Agb Speaker, Minister, u is korrek as u s dat die jeug enorme uitdagings soos werkloosheid, armoede en ongeletterdheid in die gesig staar. Daarom is die VF Plus ten gunste van die voorgestelde jeugsubsidie, maar ons kan nie verstaan dat die Kabinet so 'n subsidie voorstel, maar dan nie uitvoering daaraan gee nie. Ons glo ook dat die syfers wat u genoem het, waar die DA-beheerde Wes-Kaap se werklooshied gestyg het, eerder baie meer te doen het met die nasionale beleid wat u toepas as enige provinsiale beleid.
Vra vir enige bruinman waarom hy nie swart genoeg is om in die Wes-Kaap werk te kry nie. Dit bring die vraag na vore: Gaan di jeugsubsidie, as dit ooit toegepas word, rasloos wees? Gaan dit toegepas word op 'n manier sodat wit en bruin kinders ook 'n geleentheid kry om werk te h, of gaan dit net vir swartmense wees?
Daar moet 'n balans wees tussen die fondse wat vir hierdie subsidies toegewys word en fondse vir beurse, want opleiding is ook belangrik. Die jeugsubsidie moet ook voorsiening maak vir die bevordering van indiensopleiding. Daarom vra ons dat die regering di beleid in die toekoms as 'n raslose beleid sal implementeer. (Translation of Afrikaans speech follows.)
[Adv A DE W ALBERTS: Hon Speaker, Minister, you are correct in saying that the youth are faced with enormous challenges such as unemployment, poverty and illiteracy. That is why the FF Plus is in favour of the proposed youth subsidy, but we cannot understand that the Cabinet has proposed such a subsidy, but has not acted on it. We also believe that the figures mentioned by you, indicating that unemployment in the DA-controlled Western Cape has risen, have rather more to do with the national policy as implemented by you than with any provincial policy.
Ask any coloured man why he isn't black enough to find work in the Western Cape. This gives rise to the question: Will this youth subsidy, if ever implemented, be one devoid of race? Will it be implemented in such a way as to also afford white and brown children an opportunity to find work, or will it be for black people only?
There should be a balance between the funding allocated for these subsidies and funding for bursaries, because training is also important. The youth subsidy should also provide for the promotion of on-the-job training. That is why we are asking the government in time to come to implement this policy as one that is devoid of race.]
Chairperson, during the labour Budget Vote debate on 8 May 2012, I dedicated my address in this House to the seven million South Africans who are jobless. Today, I dedicate these few moments to the more than three million young South Africans who are desperate for work.
There is no doubt in my mind that the most serious threat to our democracy since 1994 is joblessness. The situation is now critical. This is a practical reality. We desperately need to combat youth unemployment and restore a sense of hope in young South Africans.
Today, we can do something positive to change the lot of our young deprived citizens by implementing the youth wage subsidy. Everything I have heard the Minister say here today confirms that this is the way to go.
A job seekers' grant is not the answer, simply because it fails to address the true causes of youth unemployment in South Africa. It is the government's simplistic answer to a complex problem. It will only serve to exacerbate the dependency syndrome.
Hon Patel's statistics, quite ironically, provide a simplistic overview of a complex global economic issue.
There is another statistic that the Minister mentioned. It is about the drop in youth unemployment in the Eastern Cape and rise in the Western Cape. Clearly, people are migrating to the Western Cape, so this does happen. [Interjections.]
We need inclusive interventions that encourage businesses to employ the currently disenfranchised youth. The youth wage subsidy is one of a number of DA proposals that offers young people an opportunity to get a foothold on the ladder of employment. Furthermore, research has shown that the youth wage subsidy is one of the most cost-effective policy proposals designed to combat youth unemployment.
The government must not allow the Congress of South African Trade Unions, Cosatu, to continue to hold unemployed young South Africans to ransom while R5 billion gather dust in the Treasury vaults.
I have said in this House before - there can be nothing more liberating than to be in a job, earning a regular wage or salary. Let us not deny the millions of young South Africans that opportunity.
We must implement the youth wage subsidy in its original form for the sake of our country and not simply placate the youth with a watered-down version.
Chairperson, every moment that we spend discussing, deliberating and arguing about whether we should implement the youth wage subsidy is a wasted moment, a squandered opportunity that merely compounds the unemployment threat in our country.
We need to open all reasonable opportunities for young South Africans to improve their chances in life to avoid the bleak future staring them in the face. The youth wage subsidy is one such major opportunity. We must implement the youth wage subsidy now for the sake of our country. [Applause.]
Hon House Chairperson, Ministers and Deputy Ministers, colleagues, ladies and gentlemen, maybe it would help, Mr Bhanga, if you stop being too personal and deal with the issues of the topic at hand. We understand now why you don't have a leadership. [Interjections.] It is because you don't hold discussions. I want to confirm that in the ANC we do hold discussions. [Interjections.]
In 2007, the ANC noted that market failures and other institutional weaknesses meant that many of those with higher than average skills are unable to find employment. This is the ANC. The large number of unemployed graduates is a case in point. We suggested that programmes for the youth should primarily seek to give them training and experience to access the formal economy. [Interjections.]
In February 2011, the Ministry of Finance released a discussion document entitled "Confronting Youth Unemployment - Policy Options for South Africa". [Interjections.] It is a discussion document and you are free to comment on it. The discussion document argued that amongst the reasons for youth unemployment is the fact that employers look for skills and experience and they regard unskilled, inexperienced job seekers as a risky investment. [Interjections.]
It - that is, the Treasury document - argues for the implementation of a youth subsidy based on the following reasons: To reduce the risk of employing a person whose productivity is unknown; to render the training of young workers more affordable for employers; and to encourage more active job searching by unemployed youth.
As the ANC, we feel that there are six fundamental questions that would need to be addressed in the determination of the future policy. These are: whether it will have an effect on employment, in particular, the substitution or displacement factor; whether it has an effect on the alleviation of poverty, its impact on bargaining council agreements, including the risk of driving wages down; the substitution of organised labour, especially in the vulnerable sectors; whether it resolves the two- tier labour market system or deepens its contradiction; and what the best way is for young workers to enter the labour market for the first time.
In our recent policy conference we discussed and agreed, among others, that urgent and extraordinary measures were required to address youth unemployment. Some of the proposals on the table include those contained in the National Youth Development Strategy, a tax credit to incentivise youth employment, the provision of training subsidies and a youth work seekers grant. All these proposals aim to bring new entrants into the workplace while still protecting the jobs and conditions of existing workers. This is the ANC leading. [Interjections.] The challenge of youth unemployment that the policy must address ... South Africa has an acute problem of youth unemployment, which we all know about. We also know that it also requires a multipronged strategy to raise employment and support inclusion and social cohesion. High youth unemployment means that young people are not acquiring the skills or experience needed to drive the economy forward. This, in turn, inhibits the country's economic development and imposes a larger burden on the state to provide social assistance.
The salient facts about youth employment can be summarised as follows: About 42% of young people under the age of 30 are unemployed compared with less than 17% of adults over 30. Employment of 18- to 24-year-olds has fallen by more than 20% since December 2008. That's a global phenomenon; it's not only true of South Africa. [Interjections.]
Latest statistics reflect official unemployment figures at 25%, which is 4,3 million people. Of this number, approximately 1,2 million and 1,8 million fall in the categories 15 to 24 and 25 to 34. It is predominantly cyclical and is plagued by chronic structural unemployment linked to historical factors such as poor access to quality education and skills development. [Interjections.] By global comparison, youth unemployment is two to three times as high as unemployment for older workers. The problem in South Africa is that the overall rate of joblessness is still too high and that means horrific unemployment rates for young people, we agree with that.
The International Labour Organisation, ILO, has rightly labelled this a global crisis - pointing to what the Minster has alluded to - as 75 million young people worldwide are looking for work. It calls for coherent and co- ordinated interventions on youth employment with an integrated approach that combines macroeconomic policies and targeted measures that address labour demand and supply, as well as the quantity and quality of employment.
Young people are differentially affected by high unemployment. Access to employment, the level at which young people enter the labour market as well as long-term employability are defined along racial and class lines. The reality is that it is mostly black and female youth that is disproportionately affected by unemployment.
Where there is entry into the labour market, it is often oriented towards low wage and low-skilled positions ...
Madam Chair, will the hon member take a question?
No, I won't take a question. [Interjections.] I don't have time for that ...
... and low-skilled positions with little or no long-term prospects of improving the quality of employment. This essentially ensures the perpetuation of the apartheid labour market. The key challenge therefore is to reverse the apartheid labour market and address structural unemployment.
Concerning the Youth Wage Subsidy model, two purposes emerge: that is, lowering the cost of labour for business while keeping the workers' wage intact and imparting training to young workers. The current exponential rate of unemployment of young black South Africans is a function of the skills deficit and unemployability is a rational ramification thereof. However, the notion of a youth wage subsidy is a response not to a skills deficit but the reluctance in the private sector to take up young people for employment and subsequent training.
Ultimately, seeing the wage subsidy as a one-dimensional solution to youth unemployment blames unemployment simply on higher wages. It ignores both the low pay most workers still earn and the systemic faults in our economy as a legacy of colonialism of a special economic type and it risks pitting young workers against older ones for short-term political gain. [Interjections.]
As a way forward, any proposal would need to fit into the paradigm of proposals and initiatives that are already in operation. In addition, the Internship Programme across the public sector, parastatals and private sector should be deepened.
Given this situation, the strategy to deal with this can neither be short- term nor dimensional, as some political parties would want the nation to believe. You do not solve the complexities of this challenge by indulging in cheap publicity stunts, marches that seek to portray that certain individuals of a political party have infinite wisdom on the matter when, in fact, they themselves have failed miserably to address this challenge in the areas where they have responsibility. [Interjections.] For example, the lauded youth wage subsidy as introduced by the DA - yes, in the Western Cape - has not seen an improvement in youth employment but rather ... [Interjections.] ... between 2010 - listen to this - and 2012, there has been a net decrease of 5% in employment of youth under the age of 30 in the Western Cape. This demonstrates that the Youth Wage Subsidy is not a single- solution model that can work. That places the Western Cape in the third position from the bottom in terms of youth employment by province. Thank you very much, hon Chair. [Time expired.] [Applause.]
Hon House Chairperson, the ACDP looked forward to clarity being provided by Minister Patel on the implementation of the youth wage subsidy. This followed Deputy President Motlanthe's assurance yesterday, that I quote: "The subsidy is part of government's response to youth unemployment." We are very disappointed by the Minister's response today. Whilst we appreciate a multipronged approach, which is necessary, it seems that the youth wage subsidy has been shelved in favour of a job seeker's allowance.
We expected finality in the National Economic Development and Labour Council, Nedlac, process and funds have been allocated. The plan should have been implemented in April this year already and we are again very disappointed. National Treasury said that a subsidy would narrow the gap between the costs employers incur when employing those workers and those workers' likely levels of productivity. This, National Treasury argued, would encourage firms to employ more people. It seems that Minister Gordhan and National Treasury have now themselves been sidelined from the youth wage subsidy. This is very regrettable as we are facing a youth unemployment crisis. Strong leadership is required, and it is lacking. I thank you. [Time expired.] [Applause.]
Hon House Chairperson, for two and half years the ANC has made the mistake of ignoring the hopes and dreams of young unemployed South Africans. On 11 February 2010, the President stood on this spot and announced the youth wage subsidy that would create an estimated 178 000 new jobs. His plan has not been implemented because he lacks the authority to stand up to Cosatu's flimsy opposition as they refuse to consider the youth wage subsidy at National Economic Development and Labour Council, Nedlac.
But today, this government has gone further. It broke a promise made to those young people two and a half years ago. Minister Patel said that we behave as if this government has policies designed to keep young people out of work. Well, Minister Patel, it is because you do. If you continue to tighten up labour laws and extend bargaining council agreements to nonparties; if you continue to block the youth wage subsidy, then broad youth unemployment will continue to remain above 60%.
Minister Patel wants to talk about statistics that South Africans care most about, which is the unemployment rate. The labour force survey shows that the Western Cape's unemployment rate is lower than the national unemployment rate. The national unemployment rate is 24,9% and the Western Cape's is 23,2%. The DA government is managing this despite the fact that 45 000 people come to our province every year for education, health and work opportunities. The truly striking statistic is that in the two and a half years since the President announced this plan, South Africa has lost 124 000 jobs for people under the age of 24. Over this time, the Department of Economic Development has done nothing, but drafted the so-called New Growth Path, which has not been implemented, signed a couple of accords and talk, talk, talk.
In fact, the only credible new document on tackling unemployment, which is supported by every party in this House and the second biggest trade union federations, has come from National Treasury. What's an indignity for National Treasury is that Minister Patel has set out today to put the nail in the coffin of the youth wage subsidy. It seems to me that the President has accepted the loss of those 124 000 jobs for young South Africans in exchange for Cosatu's support at Mangaung. He must know that this means that 124 000 young people are likely to go out onto the streets in protest at some stage. But perhaps he is thinking that young people would not be prepared to march against the so-called liberation movement or its allies. I am afraid he is sorely mistaken.
Three months ago, almost to the day, 3 000 young DA members marched peacefully to Cosatu House in Johannesburg to protest against the union federations opposing the youth wage subsidy. [Applause.] They were met by a hail of rocks thrown by Cosatu members determined to protect their privileged position as political insiders, but our marchers were not deterred; they made their point and they will march again. This time they will be joined by thousands more unemployed young people who will show their frustration with the ANC's failure to create jobs. They will march again in a sea of blue T-shirts. They will surround Cosatu House, Luthuli House and the Union Buildings. They will eventually sweep the ANC out of power in a tide of voters who are sick of the ANC's broken promises. I thank you. [Applause.]
Madam Chairperson, we must start by dispensing with a couple of misconceptions that have been spread in this House. The first misconception is the suggestion, that I think is very unfortunate, which speaks to the truism that some in this House represent the rich and some speak on behalf of those who have. I think what hon Motau said in this debate is that introducing a youth employment grant is creating a dependency syndrome rather than achieving anything else. But what he does not say is that the youth wage subsidy itself is a grant for the rich and that to try and suggest that subsidies that are given ... [Interjections.]
Madam Chair, can the member explain why the ANC voted for the youth wage subsidy in the first place?
... that some in this House who characterise grants that are given to the poor ... for them to go and connect them with jobs as grants for the poor. But if it's a grant given to the rich it's regarded as a subsidy. That's an anomaly that we have to expose.
Hon Qaba from Cope asks where the President is. I wonder if he asks that question in Cope, "where is the president?" You have to ask that question in your own political party, the one about where the president is. Millions of South Africans know who they voted for and know who they will continue to vote for, the next elections in 2014.
I think what is also more important, and quite disheartening, is the fact that many members come to this podium to speak and rubbish social dialogues that have been created by this very same House, including the National Economic Development and Labour Council, Nedlac. Nedlac is an institution that has been established as a result of an Act of Parliament by means of which the Congress of South African Trade Unions, Cosatu, as part of labour, business and government negotiate all policies.
The President does not pronounce policy. The President, as a result of those discussions, and after listening to all the social partners then ensures that he announces polices. To rubbish the discussions that are taking place at Nedlac about this youth wage subsidy and of whatever other points the Minister of Economic Development raised is basically to suggest that we must ignore all other sectors in our community and active role- players in the economy and only listen to the so-called "sea of blue" or "rented blue T-shirts" that marches on a daily basis.
Hon Chair, the historical manifestation of unemployment in our country has been doggedly ignored by many in this debate and in this House. To touch on that history, we are told, is to ignore our failures and seek refuge in litany of excuses in order to explain our re-election. But yet those of us who do so are themselves seeking to depose the government of the day at the ballot on account of the historical injustices committed against our people for some time.
In September 1948 H F Verwoerd in this same House, as a member of the Senate, participated in the debate on a motion of no confidence against his government for the introduction of apartheid. In the same debate Verwoerd argued how sustainable and reasonable the policy of apartheid is and quoted his political mentor, J G Strijdom, in an address Strijdom gave in 1942. He said that:
The native should not be allowed to own land among white people rather they should be confined to the various native reserves.
Strijdom went on to declare that -
The native and coloured people in our towns and villages should not live in European residential areas, but that there should be separate areas for them.
We all know about these atrocious separate development policies that Verwoerd was later to be known for and that dominated much of the last half century of our economy. These policies ... [Interjections.]
Madam Chair, on a point of order: This debate was called to debate the youth wage subsidy and not to have a history lesson that is, in fact, not correct. Can the speaker stick to the subject?
I'm sure those who know this history and participated in it are not interested in the details. But the Verwoerdian mentor did not end there, but went on to say something that is particularly important for today's debate. Strijdom was quoted extensively by his studious proverbial genie, and went on to say that:
In our factories, etc, Europeans and non-Europeans should not be allowed to work among one another but separately and that certain sorts of work should be reserved for the Europeans.
Unemployment is a historical phenomenon in South Africa and will remain persistent and structural as long as we do not deal with the underlying and systemic futures of the old apartheid system.
The system of apartheid affected all the attributes that lead to a person being employed. These include, inter alia, the level of education and skills; the poverty cycle; the allocation in relation to industry; the financial capacity to be able to be connected with a job; and the wider family phenomena, particularly in our townships, and rural areas and informal settlements. The historical manifestation of unemployment also had an international factor due to the long periods of exclusion and sanctions within our economy.
The other critical and historical question is, why there are so many black people who are dependent on jobs, and is this because opportunities for sustainable livelihoods such as entrepreneurial endeavours and working on the land are closed completely to them.
What Verwoerd, Strijdom and some in this House for that matter and some in the F W de Klerk Foundation concocted - of course, just like Judas, some will deny their involvement in the concoction of the apartheid system. [Applause.] It was a system that was to leave an indelible mark in history and in the lives of many of our people.
The Commission on Employment Equity was quoted by the Mail & Guardian of 4 August 2011 and states that:
... Whites occupy 73,1% of top management positions and ...
... wait for it -
... it would take 127 years ... before blacks who are economically active are able to catch up with this percentage.
This is a study made in more than 16 000 firms that covered and included more than 5,2 million employees. We ask, is this because of the doing of the ANC government that refused to be drawn into chaos when the De Klerk regime unleashed mayhem in order to force the ANC negotiators to concede to the so-called Sunset Clause?
These are the same people, the senior managers, who are in control of who are employed in their firms, and who would therefore ignore legislative requirements. Somebody said here "making laws more and more protective." When we say, let us ensure that we enforce employment equity, the hon Harris comes here and says that we are making laws tighter and tighter. That's all that he could say.
I must hasten to say that those who seek to defend the legacy of Verwoerd and Strijdom will oppose any of those particular measures and ensure that we keep the situation as it is. It is not by accident that unemployment affects the black child more. It is not a mistake that a white child who goes to school have much better opportunities to get employment, even 20 years after democracy. It is not by choice that many in the opposition benches want to divert our attention from that and from those facts and say to us that this is about Mangaung. For your information, Cosatu has no voting rights at Mangaung. You need to learn that. If you're interested in learning so much about what happens in the ANC, at least you need to learn that Cosatu has no voting rights at Mangaung.
Because of the lack of access to education and skills, and being locked into rural areas, our people migrate to the city provinces of Gauteng and the Western Cape in order to find hope and jobs for themselves. This migration is not a new phenomenon, but the only distinction between apartheid migration and modern-day migration is that today people are no longer forced to migrate to those cities to go and build the fort that we go and see as a museum in Cape Town, or the mines that we see in Johannesburg. People are forced to do so by the economic conditions that they are faced with. They are also building on the culture was begun hundreds of years ago by their forefathers, who built all of these things that we are talking about. Even if they are called "refugees" they belong to any part of this country. You may call them, whatever you want to call them but they will go to any part of this country to look for jobs and an education
It's quite interesting that the hon member from Cope comes here and says we must not blame the DA whereas the DA is the one that says that people come from other provinces to seek jobs, an education and all of that here. But he then hastens to defend the DA. Maybe the so-called rainbow colours of Cope may actually turn blue when we go to the 2014 elections. Maybe that's why there is a crisis in the so-called rainbow colours of Cope.
But yesterday and the day before we said that it is our responsibility to build on the future and ensure that our children will harvest the efforts of today. The new interventions will not become the silver bullets that resolve unemployment, poverty and inequality, especially amongst young people. The only reason our youth will listen to is the reasons and solutions that come from them and that are not imposed by fake demonstrations or rented people in blue T-shirts. As a youth leader myself, I understand the anger, the firmness and the resolve of our youth about the long time taken after apartheid to resolve this crisis. I will not, however, swallow any pill pushed down my throat, such as the quick fix and election-motivated solutions concocted by modern- day Verwoerd and Strijdom.
I'm not prepared to eat from the crumbs of the princely laid tables for those who ruled the roost then and continue to rule the roost today. The future lies not only in the National Development Plan, that was presented yesterday, which we fully embrace as the ANC, or the intention to rubbish the New Growth Path, but in the National Employment Accord and incentives that were announced by the Minister today.
As Verwoerd concluded in his maiden speech:
South Africa has to deal with one of the greatest problems ... the question of war and peace, which is no more serious to other countries than the clash between white and black.
Many came here to speak about the potential revolt by young people as a result of unemployment. When they speak about this potential revolt by young people, they hope that their attack will be directed at the leaders of the ANC, the President and members of the Cabinet, but they do not know that it is not those young people who are unemployed and impoverished who stay in the suburbs of Sandton and who stay here in Camps Bay. That's where the anger of the youth will be directed and those are the same people that the DA, now joined by Cope, are defending. That's where that anger is going to be directed ... [Interjections.]
Madam Chair, will the speaker take a question as per his words he "intends to direct that anger" in any given place. Will he take a question?
Mr Manamela, are you prepared to take a question? No!
I'll take a question if he takes me on a tour to Italy. [Laughter.] [Applause.]
With great pleasure.
Will you please take your seat.
Unlike in the Verwoerdian era, the clash in our country is foreseen ... [Interjections.]
Will he take the question?
He will not take your question.
No!
Sorry, I'm not clear. Did he say that he would take the question or not, because I will take him on a tour to Italy. He may learn something. Will he take the question, Madam Chair? "Yes" or "no", will you take the question?
Yes, I will take a question when we are on the tour to Italy. Thank you very much. [Laughter.]
Unlike in the Verwoerdian era, the clash in our country is foreseen. If we do not deal with the historic and present crisis of unemployment, we will be caught between the rich and the poor. Maybe he was right, because even on this day the rich remain mainly whites and the poor generally blacks. That which he is trying to avoid may actually become our modern-day nightmare for not only those who you think are in government, but also for all of us. Therefore, to play politics instead of engaging in the real issues of youth unemployment is cheap and is actually equal to cheap electioneering.
Nelson Madela, the icon and revolutionary of our time, taught us to forgive, but, please, do not ever force us to forget why we are here; do not attempt to erase our memories of our painful past. Thank you. [Applause.]
Debate concluded.