House Chairperson, hon members and invited guests, I have the honour to present the fourth budget of the Economic Development Department. Given our responsibility to integrate efforts across different departments on economic development, our success lies in its collaboration with other Ministries and spheres of government.
In these opening remarks to the debate, I will draw attention to the substantial progress made in the economy over 19 years of ANC governance. I will point at the successes of this administration in recovering from the recession we inherited in 2009 due to the global economic crisis. I will share our progress to develop policy coherence in the past year to improve infrastructure construction and use it to promote skills and industrialisation; to expand funding; to refocus competition and trade policy on jobs; to facilitate new investment in the economy; and of course the steps we are taking to improve small business and youth employment.
In short, I will make the point that we have solid achievements, whilst acknowledging the many challenges that we face. I welcome members of the public in the gallery who represent the human faces behind the economic achievements. [Applause.]
Hon members, in 50 weeks' time, we will be celebrating 20 years of democracy. The economy we inherited in 1994 was broken, characterised by low growth and weak job creation. More fundamentally, it was structured to serve the needs of some rather than all. It focused on the needs of corporations rather than people. In contrast, we have created an inclusive economy seeking to address the needs of all South Africans, 51 million people, not merely 4 million.
What is our record? Gross domestic product, GDP, growth is up. In the 19 years before 1994, annual growth was 1,6% compared to 3,2% annually in the 19 years since. This is despite the global economic recession. The value of our gross domestic product today, the value of our economy, is R3,2 trillion, 83% larger than in 1993. This is stewardship under four ANC administrations. This is how democracy has outperformed apartheid on the metric of growth. But, growth must create jobs and equitable development. Prior to 1994, hon members, there were between 8 and 9 million employed South Africans. Today, we have more than 13,6 million employed people. More than 4 million new jobs were created under the democracy. Under this administration, we developed stronger planning and policy cohesion. The National Development Plan provides the country's vision for overall economic and social development; integrating policies; demographic shifts; governance and state capacity issues into a coherent framework. It is complemented by government's economic strategy, the New Growth Path, NGP, and the detailed plan set out in the Industrial Policy Action Plan, Ipap, and the National Infrastructure Plan.
We are now in action mode, as President Zuma remarked in January:
Some of the key programmes of the National Development Plan are already being implemented. These include the New Growth Path Framework with its major infrastructure development programme as well as the state-led industrial policy.
Yesterday, hon members, Statistics SA released its latest employment data. It shows that employment has begun to grow again with the gain of 44 000 new jobs in the first quarter of 2013. Over the 12 months up to the end of March this year, nearly 200 000 new jobs were created in difficult domestic and global circumstances. The biggest job gains were in agriculture, followed by manufacturing and community services. These figures show that our transformation policies are having some success despite the headwinds from the global slowdown. But, unemployment levels are still stubbornly high. Our task is to consolidate these gains and accelerate job growth for unemployment constitutes the biggest economic challenge for the country. We must begin to see a decline in the levels of joblessness. That is the task that we have taken on through the New Growth Path.
Consider, hon members, that from October 2010, when the NGP was adopted, to date 646 000 new jobs were created - additional jobs. Of these, 366 000 new jobs were created for women, 57% of all the jobs that were created. [Applause.] As South Africans, we need to bank these positive trends and commit to do more. Our GDP has recovered from the 2009 recession and is now R750 billion higher in current rands, or 9,4% in real terms, than at the low point of the recession. The economic output of no less than 38 other countries, including the UK, Holland, Spain, Italy and Portugal, are still lower than what they were before their recessions.
I wish to welcome and acknowledge one of our visitors today, Richard Matsomela. [Applause.] He is a worker at the BMW factory in Rosslyn. He was placed on special training financed through the Training Lay-off Fund, one of the new tools created by government in 2009 to respond to the recession. Production recovered at BMW, the company expanded and Richard now again works on the assembly line for the new three series BMW made in South Africa and exported to the rest of the world. [Applause.] This is active partnership with the private sector and organised labour.
The New Growth Path mapped out a labour-absorbing economic trajectory. Under the infrastructure jobs driver and through the leadership of the President, we developed a National Infrastructure Plan, co-ordinated by the Presidential Infrastructure Co-ordinating Commission, PICC, to which the Economic Development Department provides technical support. We made real progress in laying the physical platform for growth and development over the past year, working with Minister Nkwinti and other members of the management committee. What is the outcome? Construction levels are up. Visitors in the public gallery illustrate what our programme is doing.
I would like to recognise Ms Elakanyani Ndlovu, a 30-year-old African female electrical engineer ... [Applause.] ... who is part of a team building one of the world's largest coal-fired power stations, Kusile, near Witbank in Mpumalanga. [Applause.] Ms Kedisaletse Maseko, another member of the gallery, is a welder employed on the new locomotive build programme in Koedoespoort. [Applause.] I would also like to welcome Mr Thomas Solomon, who is a contractor who lays tar on roads in the Western Cape. [Applause.] They are part of more than 150 000 workers currently on PICC-monitored construction sites across the country building roads, power stations and dams; deepening our ports; building schools; laying broadband cable; manufacturing components; and changing the spatial patterns of the past.
The project pipeline for the new infrastructure projects has been developed into the 20-year R4 trillion plan, a blueprint for our generation. Spending levels are up too. Indeed, during this administration, when we complete our mandate, we would have spent roughly R1 trillion on infrastructure - not budgeted for, not on our books, money that would actually have been spent - compared to half that sum in the previous five years, and substantially more than in the last five years of apartheid. Even when adjusted for inflation, this is a remarkable achievement.
We now monitor every quarter how much has been spent; what construction has actually taken place; and how many people are employed in construction projects. That portfolio of projects is worth R900 billion. Working closely with Minister Gordhan through the PICC, R19 billion in new money or reprioritised resources were identified for infrastructure projects over the next three years, integrated governance. State capacity challenges, including those identified in the National Development Plan, as articulated by Minister Manuel, are being addressed; including improved environmental processes, the work of my colleague Minister Molewa and the new Infrastructure Development Bill recently released for public comment.
Hon members, we need to bring the cost of infrastructure build down. Private sector collusion and price-fixing cost the state many billions of rands in previous infrastructure projects, including the 2010 World Cup stadiums' build. The competition authorities have identified 300 cases of irregular and illegal behaviour by the private sector in the construction industry on projects valued at about R47 billion. Eighteen construction companies, including the top six firms, have now confessed and are in discussions on settlement with the competition authorities. We are determined to ensure that we develop an affordable infrastructure build programme and that our tax rands do not improperly find their way into private pockets. The competition probes extend wider than infrastructure and include input costs across the economy to improve competitiveness and reduce costs for consumers.
Following discussions with Minister Motsoaledi, I am pleased to announce that the Competition Commission will conduct a market enquiry into the private health care sector. As ordinary South Africans will know, private medical care is becoming unaffordable. The enquiry will use the new powers under section 6 of the Competition Amendment Act of 2009 and will examine the pricing, costs and the state of competition in the sector. It is expected that the enquiry will commence before the end of September this year. The authorities are ensuring that public interest tests in our law are met when companies acquire existing operations.
I would like to welcome Mr Emmanuel Motumi. [Applause.] He is one of a few hundred workers reinstated by the Competition Appeal Court at Walmart following its purchase of a local retailer. Government's efforts led to the Competition Appeal Court ordering the creation of a fund of up to R240 million for local supplier support by Walmart. The judgement expanded competition jurisprudence and ensured that the central economic imperative of our time, namely jobs and local industrial capacity, is pivotal to competition policy. It demonstrates our commitment to policy integration and coherence. Trade policy is being harnessed to support infrastructure roll-out and to support agroprocessing industries that are infrastructure users. They range from poultry to tomatoes. More will, however, need to be done to support farming jobs and agroprocessing as part of our food security strategies.
The Ports Regulator has introduced a differentiated port tariff that encourages the export of manufactured goods rather than raw materials. We earlier heard the President of Nigeria talking about an Africa that no longer exports raw materials to others. These are the steps we are taking to begin to turn that around in our own country, South Africa. We are using the infrastructure programme to address skills and industrialisation challenges. We now have a skills model for all major infrastructure projects over the next 20 years, developed through working closely with Minister Nzimande and Minister Nxesi; the engineering industry; the construction regulator; and the private sector. Hon members will be pleased to know that, for example, with the Umzimvubu Dam in the Eastern Cape, we can now quantify the number of bricklayers, carpenters, engineers, plumbers and so on, that we need for every quarter of the five-year build programme. This will help universities and further education and training, FET, colleges to plan their student intake and the graduate output. On industrialisation, EDD has worked with Minister Davies and Minister Gigaba on measures to provide a major boost to local manufacturers through the infrastructure roll-out programme. It is about the Proudly South African programme and Buy Local programme. State-owned companies deepened their supplier development plans.
In complementing these efforts, because we've got to integrate the different things we do. The Industrial Development Corporation, IDC, has set up a localisation unit and increased its five-year plan for industrial funding that's available to R102 billion. Over the past two years, the IDC increased actual funding approvals substantially to about R27 billion. So, it's not plans on paper, the money is beginning to flow through the investment pipeline. This is 48% higher than the previous two years. We have success stories out of these interventions. In the past, for example, we imported buses for the infrastructure roll-out of inner city public transport. We drove in a recently acquired bus in Johannesburg, and chances are that it was made in Brazil.
Last year, to implement the Local Procurement Accord, new policies were introduced. They led the cities of Johannesburg and Cape Town to order 240 locally assembled buses. I would like to welcome Ricardo Truby, who is with us today. Welcome, Ricardo! [Applause.] He is a production line worker for the Cape Town buses, where the IDC provided bridging finance. The first locally assembled bus for Johannesburg will come off the production line in June 2013 from a Germiston factory. This is real progress with industrialisation. [Applause.]
Hon members, when this administration came into office, all our minibus taxis were being imported. Today, two taxi assembly plants have been set up by Toyota and Beijing Automobile Works, BAW. I wish to recognise Ms Brenda Smith, who is with us today. [Applause.] She is a supervisor on Toyota's new taxi line. [Applause.] Hon members, through the work that she and others are doing in the taxi industry, by 2015, two out of three new minibus taxis will have been assembled here in South Africa. [Applause.] This too is real progress with industrialisation.
The country will expand its rail transport very significantly in the next 20 years. The IDC is working with companies in the sector to use a R198 billion procurement to build coaches, locomotives and wagons, and create local jobs. We have already landed one export contract to supply trains to Mozambique. These success stories in transport - because I have taken a few transport ones - are replicated in other parts of the infrastructure programme, such as the new condenser unit commissioned from a local company for the Kusile Power Station. Working with Minister Peters, we plan to improve the localisation impact of wind and solar energy, so that green energy creates local jobs. The industrialisation drive is at the centre of our work.
Last year, the IDC concluded a R3,4 billion deal to take majority ownership of Scaw Metals Group, a large diversified manufacturer of steel products for the infrastructure sector and industry. It employs 7 000 workers. It is the only producer of locomotive frames in southern Africa. When Anglo American Corporation decided to divest from the asset, we ensured that this critical national asset was placed in local hands rather than asset stripped and closed down. I am pleased to have Ms Patricia Mashigo, an artisan and production team leader at Scaw Metals Group present today, together with Group Manager, Mr Paul Zinn. [Applause.]
Scaw Metals Group operations in South Africa have a crude steel production capacity of about 600 000 tons per year. It has manufacturing operations in Canada, Australia, Italy, Namibia, Zimbabwe and Zambia, which also serve as important distribution channels for its products. A sophisticated industrial strategy, as outlined in the Industrial Policy Action Plan, requires the injection of foreign and local capital, know-how and innovation. I would like to offer a few examples of progress we are making.
Asia's largest commodities trading company, Noble Resources, is the main investor in one of two advanced soya-crushing plants under construction. In the past twelve months, the company invested about R2,2 billion in the local economy. I acknowledge the presence of Mr Ronald Jettin, the local chief executive officer, CEO, of the company who is here with us. [Applause.] Later this week I will host the senior management of the company to consider additional investment in South Africa.
We attracted Turkish investment in the manufacturing of stoves in East London, the Defy plant, and to restart the Cape Town-based steel mill Cisco in August this year with a R250 million investment, which points to a growing appetite by investors to manufacture goods in South Africa. I would like to welcome Mr Turanli, the President of the new shareholding company of Cisco, who flew in from Turkey, and the Turkish Ambassador, Kaan Esener, who is with us today. [Applause.]
Hon members, these efforts are supported by greater beneficiation of our natural resources. In July this year, the largest manganese sinter plant in the world, backed by the IDC, will open in the town with the quaint name of Hotazel in the Northern Cape. I welcome the major shareholder, Ms Daphne Nkosi, whose company will be producing 2,4 million tons of manganese sinter for ferromanganese smelters. [Applause.]
Hon members, following public consultation, I have decided to issue a trade policy directive in terms of section 5 of the International Trade Administration Act to limit the export of scrap metal so that this resource ... [Interjections.]
House Chairperson, I have a point of order. I think the hon Minister has forgotten the name of the Guptas on his donors list. [Laughter.]
Hon member, that is not a point of order. Let us avoid frivolous points of order.
I will encourage the hon member to ask the leader of his party what the nature of her relationship is in that case. [Applause.]
Hon members, following public consultation, I have decided to issue a trade policy directive in terms of section 5 of the International Trade Administration Act to limit the export of scrap metal so that this resource is used in South African foundries and steel factories, saving energy, creating local jobs and promoting infrastructure development. To strengthen regional integration, manufactured exports to the rest of Africa rose by about R20 billion or 21% in this past year, now accounting for more than 90 000 jobs in South Africa.
Tomorrow, we will be hosting the World Economic Forum Africa Summit here in Cape Town, and this follows the successful Brazil, Russia, India, China and South Africa, Brics, Summit hosted by President Zuma six weeks ago, wherein we announced the establishment of a Brics-led development bank and signed a number of partnership agreements with Brics countries and investments.
Hon members, the New Growth Path calls for greater economic inclusion, through small business development and youth employment. Today, 1,6 million more young people under the age of 35 are working than in 1995, and school and university enrolments are dramatically higher, as even critics of government concede. As University of Stellenbosch research released a few weeks ago show, in less than a generation we have more than doubled the number of graduates in our labour market. Three weeks ago, we signed a Youth Employment Accord at Hector Pieterson Memorial in Soweto, in front of a 2 000-strong crowd of young people, bringing together the efforts of the public and private sectors. The Youth Employment Accord provides for a comprehensive approach, which includes incentives, commitments and action to address the problem from its starting point, inadequate skills formation. It provides for work experience through internships and, most importantly, new jobs for young people.
I would like to welcome the delegation of youth leaders led by Thulani Tshefuta and Yershin Pillay, who is in Cape Town today to attend a workshop on youth entrepreneurship and the Youth Employment Accord. Welcome to the youth team! [Applause.] To support the Youth Employment Accord, the IDC announced a R1 billion Youth Fund to provide concessional lending to youth- owned enterprises that create jobs. I am pleased to announce today that the new Small Enterprise Finance Agency, Sefa, will make R1,7 billion available, over the next five years, to youth enterprises with a target of R220 million in this financial year. [Applause.] This combined "fighting fund", if you like, of R2,7 billion is mobilised so that young people are mainstreamed into our economy. My small business advisory panel has noted the substantial resources available to small businesses through various Budget Votes, but delivery is fragmented, costly, with very little integration of funding and business support. We are beginning to address this, though our work is by no means done.
In April last year, we launched Sefa, bringing together three small business funding programmes, bedded down the institution and expanded the lending rate. Last year, Sefa approved loans worth R435 million, which is 106% higher than its predecessors did the previous year. We have now created the machinery to vastly increase access, impact and the level of small business support. By next year, Sefa plans to approve annual funding of more than R1 billion to more than 20 000 small, medium and micro enterprises, SMMEs. That is practical action to support people entering the economy.
I would like to welcome Ms Magdalena Paledi, a female entrepreneur contracted by Anglo Platinum who is here with us today. [Applause.] She is building a school in Serafa village in Sekhukhune. Her company is a beneficiary of Sefa funding. Over the next five years, Sefa plans to provide R2,3 billion for women-owned enterprises, with R295 million this year, so that women are more actively represented in the economy, but also, so that the economy can benefit from the enterprise that drive the energy of women.
We financed a training programme for 100 young people in partnership with the SA Institute of Chartered Accountants. One of the graduates is here today, Ms Thandeka Nyani, who works in the Sefa business hub as an accounting clerk supporting small business clients. I am pleased to announce that a further 170 young people will be enrolled in this programme from this year. [Applause.] We now intend to take the small business programme to our people through 18 large community roadshows, meetings in rural areas and townships, with a special focus on youth and women.
To meet the numerical targets in the Youth Employment Accord, government entities will adjust regulations and tender conditions to bring more young people into infrastructure programmes, the green economy, call centres and other business process services. Social dialogue has been stepped up. Last year, EDD provided support to the Presidency to conclude the October Social Accord that brought the strike wave in the mining sector to an end. Ministers Chabane, Shabangu and Oliphant are now driving the follow-up of this accord.
I have released a report today on the progress with the various accords on skills, the green economy, local procurement and basic education.
I would like to welcome learners from Litha Primary School who are with us today. They are benefitting from one of the social accords through the adopt-a-school pledge. [Applause.] Looking ahead, we need an accord or social agreement to address industrial relations in infrastructure programmes.
Hon members, the budget allocation for this financial year for the Economic Development Department amounts to R772 million, of which R231 million goes for small business funding; the amount of R193,8 million for the competition authorities; the amount of R79,8 million for trade administration; and R108 million to the IDC for the agroprocessing fund. The department's budget for operations and capital spending is R159 million. Hon members, the Budget Vote of EDD is a window across programmes in many different departments and all of them have helped to achieve these goals.
I would like to thank my colleagues in the economic cluster; those who work with the department in the PICC; Deputy Minister Mkhize; the director- general, Ms Jenny Schreiner, and her predecessor, Saleem Mowzer; the agencies and the heads of the Competition Commission and Itec; the Development Finance Institutions; the heads of the Industrial Development Corporation and Small Enterprise Finance Agency; and the staff of the department and the Ministry. Our work benefitted from engagements with social partners. I would like to thank the shop stewards, managers and workers who are driving economic development in the cold phase of our economy. Finally, I would like to thank my family for their support.
I now table the Economic Development Department's budget for consideration by this august House. Thank you very much. [Applause.]
Hon Chairperson, Minister Patel, Deputy Minister Mkhize, other hon Ministers and Deputy Ministers from the Economic cluster present here, Members of Parliament, distinguished guests, special guests of the Department of Economic Development, ladies and gentlemen, let us from the outset, congratulate the department for its positive audit outcome once again. [Applause.] Since its inception it has been receiving unqualified audit outcomes. This represents an institution that has good corporate governance practices.
There is a saying that goes that the future can be defined by where we come from. Thus defining the historical background will clearly define the Department of Economic Development, its mandate and its objectives. In addition, it would be important to give the highlights about the department's evolution. The policy origins of the department is to be found in the economic transformation resolution of the 52nd National Conference of the ANC held in Polokwane in December 2007. The conference resolved the following.
Firstly, in order to achieve the necessary economic growth and development, the building of the strategic organisational and technical capacities of government in the context of a democratic developmental state is essential. Secondly, a strengthened role of the central organs of state, including - through the creation of an institutional centre for government - wide economic planning with the necessary resources and authority to prepare and implement long and medium-term economic and development planning, have to be established. Lastly, the integration, harmonisation and alignment of planning and implementation across all three spheres of government and with the development finance institutions and state-owned enterprises, including - through the development of coherent intersectoral at national level and the alignment of local implementation in terms of the Integrated Development Plans, IPDs, of metro, district and local municipalities, had to be realised.
It was in the light of the above that the Department of Economic Development, EDD, was established in July 2009. It is just only four years old and it begins its fifth year. The department was created with the sole aim of creating decent work through meaningful economic transformation and inclusive growth. The ANC-led government through the EDD for the past four years, despite its young age, has managed to co-ordinate a response plan to the global economic crisis; processed its mandate on the alignment of jobs; completed the development of the New Growth Path in 2010; aligned the work in government to the New Growth Path; started implementing Outcome 4 on jobs and growth; and launched work on the infrastructure jobs driver.
It refocuses the Industrial Development Corporation, the Competition Authorities and the International Trade Administration Commission on jobs. It has initiated dialogues to develop social accords on key NGP areas. The latest one is the signing of the Youth Employment Accord. As the department, we recommend that we need to expedite the implementation of this accord.
We managed to consolidate small business entities, that is, merging the SA Micro Finance Apex Fund, Samaf and Khula Enterprise Finance into one entity now called Small Enterprise Finance Agency, Sefa. It has been fully integrated under the Industrial Development Corporation, IDC. We have launched and implemented the infrastructure plan and strengthened NGP focus on industrial policy.
The President, in his state of the nation address, re-emphasised the importance of infrastructure as a vehicle for job creation. A number of infrastructure projects were indentified for implementation. The department should be commended for its active role in the Presidential Infrastructure Co-ordinating Commission.
The Minister is the head of the Presidential Infrastructure Co-ordinating Commission's Secretariat. The department's key role is that of co- ordinating and integrating the work of various departments and providing secretarial services to the PICC with regard to the implementation of the National Infrastructure Plan. In the light of this we would like to commend the collaborative approach and efforts in the above regard by the government. This shows the dying of the silo approach in doing government business.
Having said the above, it is worth mentioning also that this could not be achieved without challenges. In the committee's engagement with the department the following challenges, amongst others, were noted. Firstly, the policy mandate of the department is quite clear. It was established to ensure integration of existing functions and mandates of government departments; to co-ordinate the work of finance institutions and regulatory agencies; and to implement the plans and decisions of the executive structures of government with the main focus being on ensuring achievement of better jobs and industrialisation.
The scope therefore tends to be wide and it cuts across other government departments. Thus it requires extensive co-ordination and co-operation with other departments. If not really attended to, this may pose a serious challenge to the achievements that we have made.
Secondly, there is a lack of an impact assessment and monitoring tool which would enable easy reporting of the department, entities and other stakeholders on the impact of development issues such as jobs, poverty, inequality, small, micro and medium enterprises, SMMEs, development, etc. Moreover, the existence of such a tool would have enabled easy monitoring of the NGP targets.
Thirdly, the role of the regulatory bodies in ensuring industry competitiveness, fair trade and addressing anticompetitive behaviour will need to be enhanced. It is clear that, going forward, we need to ensure that we also assess the outcomes of the decisions made by the regulatory bodies. This will enable us to determine the impact of those decisions on the poor and the development of the SMMEs and co-operatives. For example, we would want to be able to answer questions such as what happens after price collusions have been detected, confirmed and a penalty charged on food prices. Does the baseline price change or remain high to the detriment of poor households? As a consideration, do we need to enforce certain conditions that would favour poorer households or reciprocity commitments towards attainment of government goals?
Fourthly, there is the enhancement of co-ordination of the work of the national and provincial economic development departments. We still see elements of silos in some instances. We feel that this needs to be strengthened together with the human resource capacity that would ensure speedy processing and implementation of priority initiatives and projects by the department. We see this as a major challenge.
Notwithstanding the above challenges, we would still want to welcome and commend the department for having taken a positive approach addressing most of the above challenges. For example, an impact assessment and monitoring tool is in the process of being developed to monitor and assess the impact on the work of entities with regard to job creation and other development indicators.
Going forward, the entities that report to the department will be held accountable for direct impact on jobs and development. In future, the department would therefore be able to give detailed reports with regard to impact and progress made on jobs.
While we look at internal challenges we should not fall short of mentioning other external challenges that serve as a hindrance to the advancement of the work of the department and government as a whole. The external challenges that confront our country have been the subject of considerable debate both in the world economic forums, amongst economists and developmental economists. What has been central to these debates is that classical economic theory has contributed manifestly to the global economic challenges we have today.
The ANC-led government's response reflects the growing progressive economic theory posture that the state must of necessity intervene in the economy so as to ensure the necessary growth required to build the economy. Our countercyclical fiscal economic stance, as articulated in the New Growth Path, provides the strategic economic approach and provides for continued financing of the infrastructure programme and the industrial strategy, both of which will result in greater levels of growth in the economy over the medium-term.
It is also important to indicate that despite the department having made much progress within its four years of existence, there is consensus that more still needs to be done. The unemployment level is still high and youth unemployment in particular is still a challenge. I think we've heard the statistics by Statistics SA. I don't need to go through it, especially its impact on the youth.
The need to improve performance of productive sectors of the economy, like manufacturing, mining and beneficiation, agriculture and agroprocessing, cannot be overemphasised. More still needs to be done with regard to the development and financing of the SMMEs and co-operatives, especially with more focus on women, youth, the disabled and rural population. Together with the department, as the portfolio committee, we are prioritising our interventions in this regard. For instance, a round table forum is being organised to look at the challenges facing the survivalists, SMMEs and co- operatives, including women, people living with disabilities and those in the rural areas with the whole aim of finding appropriate and effective solutions. My colleague hon Mabasa will elaborate more on this subject.
The triple challenge facing the country is multitude and have manifested themselves over a long period since the apartheid era. The challenges require effective and honest dialogue, co-ordination and strong partnerships involving both the private sector and public sector, not forgetting civil society.
It is important to note that the Budget Vote today is well timed. It is happening against the backdrop of the World Economic Forum on Africa 2013, which is starting tomorrow just behind this venue, thus bringing hope to finding solutions to the economic growth challenges facing not only South Africa, but also the continent. We would like to join the leadership of the country in welcoming the distinguished guests and members participating in the World Economic Forum. We wish them successful deliberations and outcomes.
In conclusion, let us not forget that the socioeconomic challenges facing our country will need much more than the Department of Economic Development's effort, but rather a concerted effort from every member of this nation, including the partnership I have alluded to earlier.
Let me thank the department and its entities for their continued co- operation and wish them well in their 2010 endeavours. We would also want to thank the members of the portfolio committee and its support staff for their continuous wisdom in overseeing the work of the department. We recommend that the House supports the EDD Budget Vote, No 28, of R771,466 million. I thank you. [Applause.]
Chairperson, hon Ministers, hon Deputy Ministers, hon members, distinguished guests, ladies and gentlemen, the Department of Economic Development is four years old this year, after having been established in 2009. Amongst other things, it was meant to promote economic development through participatory, coherent and co-ordinated economic policy and planning for the benefit of all South Africans.
The DA believes that the department is an unnecessary addition to an already bloated and large executive team. [Interjections.] It is our view that this department was created as a payback or reward by President Zuma to some elements that supported his ascendency to the highest political office in the land. The department is unnecessary and much of what it does and performs is done by other departments. For example, some of the functions and oversight responsibilities have been cannibalised or cloned from other departments, such as the Department of Trade and Industry, DTI, and the Treasury, in order to give it credence, relevance and legitimacy. In fact, the only thing the department does is co-ordinate, co-ordinate, and co-ordinate. It should be noted that the department's target of creating five million jobs by 2020 is a distant dream, given the fact that the country is facing slow economic growth, which has been revised down to 2,8% by the International Monetary Fund, IMF, for this year. The unemployment figures that were released yesterday by Statistics SA show that we are far from achieving work opportunities for the 4,6 million people who are currently out of work.
The New Growth Path, which the department sees as a way to eliminate unnecessary red tape, to improve competition, and to enhance development skills should be abandoned in favour of the National Development Plan, NDP, which is South Africa's only hope of achieving economic growth and creating jobs. The NDP has been embraced by business and other sectors as the answer to addressing South Africa's many socioeconomic ills, except, of course, for Cosatu and some of its affiliates who characterise it as lacking concrete proposals for tackling the problems of poverty, inequality and unemployment.
The DA sees the NDP as having set some laudable goals for addressing some of the challenges. Our leader, Helen Zille, had stated that the DA's 8% growth plan "dovetails in large measure with the NDP". She said:
We believe it is the plan behind which South Africans can unite to achieve a sustained economic growth rate of 8%. We know that no country has ever overcome poverty and unemployment without substantial sustained economic growth. This must be our central focus.
I agree with the Minister in the Presidency, Trevor Manuel, who once said:
But if we do not at least double the size of our economy, there won't be labour absorption and then the big risk that afflicts our country is that tens of millions of unemployed and frustrated young people will burn the country down.
The recently signed Youth Employment Accord will fail to provide any workable solutions to the youth unemployment crisis facing this country. This is because the Youth Employment Accord does not include a youth employment tax incentive. It is contradictory to the NDP and will not be effective in creating the 4,7 million jobs we need to provide for South Africans under the age of 34. In short, it is economically unsound, unrealistic, and will have distortionary effects on the economy. The DA has always advocated the implementation of a youth wage subsidy, which the President announced in 2010 in his state of the nation address. Of course, the pressure from Cosatu has resulted in a watered-down version of the original idea of a youth wage subsidy.
The DA had proposed the rolling out of a national wage subsidy programme to reduce barriers and encourage job creation. The plan had envisaged the introduction of a comprehensive vocational training and apprenticeship programme as a tool to address critical skills shortages and enhance the interface between planning and employment and reforming Nedlac so that it is not dominated by economic insiders but rather works to promote economic growth, job creation and poverty reduction.
The DA had proposed the expansion of the National Student Financial Aid Scheme to help more people to access higher education and to gain marketable skills. As we all know, the department plays an oversight role over three regulatory bodies and two development finance institutions, namely the Competition Commission, the Competition Tribunal, the International Trade Administration Commission, the Industrial Development Corporation, and the Small Enterprise Finance Agency, Sefa.
An economist was once asked whether markets were good or bad for economic development. In reply, the economist said that markets are as good as the economy they keep. Competition policy means making markets work, by ensuring that companies keep good company. That means that they do not collude against consumers and that they compete to win customers.
The Competition Commission needs to be commended for its crackdown on the cartel of six competing companies in the glass manufacturing industry who came together to avoid competition, by agreeing to fix the price of their product at a higher level than the price that would have been determined in a competitive market. This is not only bad for customers, but it is also bad for the economy. The commission also needs to be commended for its recent exposure of the major construction companies in their bid collusion in the building of Fifa Soccer World Cup infrastructure prior to 2010. As we all know, this commission was set up to investigate such complaints of collusion, cartels and price-fixing, whilst the Competition Tribunal and Competition Appeal Court act as adjudicating bodies.
As of 1 April 2013, the Competition Amendment Act came into effect, thereby providing the commission with teeth to undertake market inquiries into the various sectors of our economy. I understand that the first such market inquiry involved the health care sector where, according to the Minister of Health, Dr Aaron Motsoaledi, prices are artificial and distorted.
In my view, the other sectors that need investigation are the print media industries, the food retail, the food production, and the cellular industry. The cellular industry in this country has been accused of ripping off the consumers by charging one of the highest call rates in the world. In order for the Competition Commission to undertake the market inquiries, it is important that it is equipped with the necessary skills and personnel. I wish therefore to appeal to the hon Minister to provide the commission with adequate resources to undertake this important task of protecting the consumer.
The Competition Commission therefore plays a very critical role in the economy of this country, particularly given the fact that we have such high unemployment levels. Its role should be seen as managing the delicate balance between promoting efficiency whilst, at the same time, protecting jobs by way of the public interest provisions of the Competition Act. It is therefore with much concern that we note that the commission is beset with serious governance issues and reports of maladministration. It is also reported that the Public Protector has launched an investigation into the commission. Of course, the nature of this investigation is not yet known.
With regard to these reports, last year in August, I posed a parliamentary question to the hon Minister in which I wanted to know how he was addressing these challenges in the Competition Commission. His response was:
I have taken note of reports on internal challenges in the Competition Commission. The best interest of the commission and its staff require that internal processes be completed prior to any public statement being issued. The department is now addressing these matters.
Last year, in November, I also wrote to the Minister to request a report arising from that internal process that he referred to in my question to him. Up to now, I have not received any response to that letter. At the beginning of this year, I again sent a letter, in which I asked the Minister whether I could please have a copy of that report. Nothing has come forth. Needless to say, these reports are disturbing, and the Minister should show that he is fulfilling his responsibilities to the entity and the people of this country. We are still awaiting clarity on the steps to be taken by the Minister to ensure that the areas of concern are addressed as a matter of urgency.
According to the study done by the Global Entrepreneurship Monitor at the University of Cape Town, Graduate School of Business, early-stage entrepreneurial activity in South Africa last year dropped to 7,3% from a high of 9,1% in 2011. The report says this is below the average of countries with a similar development level. The picture painted by this report is rather bleak, Minister. It shows that only 14% of individuals intend to pursue a business opportunity within the next three years; well below the 27% average. South Africa's established business rate of 2,3% is the second lowest in the world, according to the report.
This is a disturbing picture in view of the fact that small, medium, and micro enterprises, SMMEs, are supposed to be the answer to creating job opportunities for the multitudes of unemployed people in this country. Another study found that SMMEs described the regulatory environment in this country as complex, burdensome and imposing unrealistic demands on business. South Africa has become less accommodating to SMMEs over the past year. The study found that 74% of SMMEs agreed that running a small business has become more difficult. The NDP also highlights the importance of SMMEs in contributing to alleviating unemployment in this country. It further highlights the need to reduce the cost of doing business for small businesses and emerging enterprises.
It is important to note here that the Small Enterprise Finance Agency is really failing SMMEs by allowing intermediaries to charge up to 40% interest on small loans. At the same time, it has created unnecessary red tape for entrants to the market, making it very difficult for small businesses to grow and to create jobs. The proposed Licensing of Business Bill by Minister Rob Davies of the Department of Trade and Industry is an affront to the NDP and will add an unnecessary regulatory burden to businesses, particularly small businesses. Business Unity SA and small business representatives have expressed concern that this Bill will be badly enforced, as existing laws already make it harder for people trying to run an honest business. We in the DA do not see how this Bill will improve efficiency in regulating and cutting red tape. In fact, this Bill intends to impose more red tape on the system.
Chairperson, infrastructure development has been identified as another way in which massive numbers of jobs can be created in this country. In his Budget Speech, the Minister of Finance, Pravin Gordhan, had indicated that over the next three years, R827 billion is planned to be spent by the fiscus and state-owned companies to build infrastructure. The Presidential Infrastructure Co-ordinating Commission, PICC, which is supported by the Department of Economic Development, has the responsibility of providing facilitation and co-ordination of infrastructure development in the country. In view of the crucial nature of the contribution to economic development of the infrastructure roll-out programme, the DA is of the view that this entity should be housed under the NDP and, by extension, the Presidency and not under this department.
Direct foreign investment, is important for the country's economic development. However, conditions that are required to attract foreign direct investment are sometimes threatened by hostile and violent labour unrest as we have seen in the recent past. The recent merger of Walmart and Massmart presented us with lessons on how to treat foreign investors in our country. While the Department of Economic Development and two other departments of government wasted taxpayers' money on unnecessary court action to oppose the merger, it is gratifying to hear that Minister Rob Davies was reported to have praised the merger as a major success. Well done. It is also reported that the R200 million Local Supplier Development Fund has resulted in the production of 500 tons of fresh produce, in Limpopo alone, to the value of R3 million within a period of six months.
Finally, the department has been allocated a budget of R772 million for the 2013-2014 financial year for its programmes, namely Administration, Economic Policy Development, Economic Planning and Co-ordination, and Economic Development and Dialogue. This is an increase of more than R75 million over the 2012-2013 period. I thank you. [Applause.]
Hon Chairperson, the unprecedented opulence in our country of two nations contrasts with the deprivation, destitution and economic oppression. Overcoming this problem has to be a central part of economic development.
The severity of inequality in South Africa is reflected in the country's Gini coefficient, which is currently at 0,7. Employment statistics released yesterday showed that unemployment has increased by 100 000 in the last quarter. At present 4,6 million people are unemployed and 2,3 million are discouraged work seekers.
According to the annual national perceptions audit of 2012, 54% of respondents agreed with the statement: "I'm afraid I might never get a job in South Africa." This situation is untenable. There is no silver bullet that solves the problem of unemployment, whether ideologically shot from the left or the right.
Poverty and inequality cause unemployment, and unemployment causes poverty and inequality. It is a vicious cycle that must be broken. The best and most useful economic strategies must be employed, with no total commitment to ideological leanings.
If poverty and inequality are to be reduced, policy-makers cannot rely on the so-called ruthless growth that leads to increased income inequality. Contrary to some perceptions, inequality hinders growth. If South Africa is to accelerate economic growth, it has to mainstream the eradication of poverty. It has to be the core priority of our economic policy.
Poverty is widening and deepening. Solutions are absent while promises abound. Let us make no mistake; this is a ticking timebomb, and the real danger lies in failing to genuinely address poverty, inequality and unemployment. Now is the time for concerted and concentrated action.
The National Development Plan, NDP, and the Industrial Policy Action Plan, Ipap, talk about long-term visions and long-term programmes. What is needed at the present moment is for the NDP to be divided into five yearly programmes, so that it is effective and properly monitored. The relationship between the unwieldy Department of Trade and Industry, DTI, and the slimmer Department of Economic Development must be sorted out so that the mandate of the economic department must be clarified and be explicit.
Overindebtedness of South Africans is a matter of great concern. In July 2012, Property24 reported that 6,2 million consumers had impaired debt records. Of these, 2,3 million had their accounts handed over for collection. Another 3,8 million were three months and more in arrears with some of their accounts.
Predatory microlenders and unsecured lending offered by African Bank, the country's biggest unsecured lender, amongst others, is deepening the financial crisis and exacerbating poverty. We need to know why this is allowed to happen despite the Financial Intelligence Centre Act, Fica, being in place.
On the question of Small, Medium and Micro Enterprises, SMMEs, the development finance institutions, DFIs, must make finance as well as professional business support available, and not act like banks by making the interest rate exorbitant, unreachable and unaffordable to ordinary people. In addition to finance, training needs to cover entrepreneurs who lack formal education in business. The private sector incubators alone cannot be relied upon.
Industrial development zones, IDZs, and special economic zones should be concentrated in areas where there is existing infrastructure. Here I refer to places like Dimbaza, Bophuthatswana, Qwaqwa and even here in the Western Cape, in the Atlantis area. Idle infrastructure deteriorates and creates no jobs. It is deplorable that government is not making use of these available resources to create jobs.
Economic initiatives such as the Pebble Bed Modular Reactor and the Joule electric car, which cost our country billions of rands, were quietly written off. Why was this allowed to happen? We have also not been answered satisfactorily on why Mthombo, the proposed refinery in Coega, has not yet come to fruition. What else is going on at Coega?
With regard to manufacturing, the government has failed to create downstream beneficiation of our natural resources like gold, diamonds and platinum. We are effectively exporting jobs to other countries, hence the higher unemployment that is facing us. The model that renders the automotive sector workable is to be commended. However, why is a similar model with regard to agroprocessing not adopted? Perhaps the Brazilian model should be used in this case.
While having some of the best universities on the continent, South Africa has not exploited the available capacity for research and innovation that would make our country the owners and developers of intellectual property. The Joule car is an example of a lost opportunity.
With regard to international trade - through the International Trade Administration Commission, ITAC - we have experienced agreements that expose our country to the dumping of cheap goods in our markets, especially from the European Union, EU. However, the relevant Ministries have not intervened in this regard. Why is the worsening of the balance of trade not being properly monitored?
With regard to the management of our Budget, the national debt has increased by R1 trillion in the past five years. At the same time, the Gross Domestic Product, GDP, has continued to be lower than projected. If the national debt had been incurred to accelerate infrastructure development only, the borrowing and expenditure could have been regarded as countercyclical, but unfortunately this is not the case.
Loss of moral values has seen a squandering of resources without consequences. The more than R240 million spent at Nkandla is a national scandal, and an insult to the poverty-stricken of our country. The discontent of the workforce has therefore increased, as evidenced during the Marikana massacre, and Ficksburg, where Andries Tatane was mowed down by the SAPS.
The same kind of desperation that inflamed the Arab Spring is now increasingly evident in our country. The landing of the Gupta plane at a national key point ... [Interjections.] ... shows how pervasive the moral loss in our country has become. [Interjections.] Fair play no longer exists, and blatant favours open the way for the well connected. The continuation of this state of affairs will create a negative investment environment for our country. [Interjections.] Some intervention needs to be made in this regard.
The Public Infrastructure Co-ordinating Committee must be fully energised as this can set a very good platform to create more jobs. The department earned an unqualified audit, and therefore has the opportunity to come out of the shadows and to exert itself for the betterment of South Africa. A small window of opportunity is all that is left as the clock continues ticking. I thank you. [Interjections.] [Applause.]
Sihlalo, oNgqongqoshe abakhona, amaPhini, amalungu ahloniphekile kanye nezivakashi zethu, inkulumo yami izogxila entuthukweni yezimboni kanye nezindaba ezithinta ukuqhudelana, nokuthi lokhu kube nomthelela ongakanani ekuthuthukeni komnotho.
Intuthuko yomnotho incike kakhulu ekusebenzeni kahle kwezimboni. Lo hulumeni oholwa uKhongolose wethule inqubomgomo yokuthuthukiswa komnotho wezwe phecelezi i-New Growth Path njengohlelo oluzokwazi ukuthi lufeze amaphupho esizwe entuthukweni yomnotho kanjalo nesizwe ngokubanzi. (Translation of isiZulu paragraphs follows.)
[Mr Z C NTULI: Chairperson, Ministers present, deputies, hon members and our guests, my speech will focus on the Industrial Development Corporation, IDC, and the Competition Commission and the effect it had on economic development.
Economic development is dependent on the effective operation of industries. The ANC-led government presented the New Growth Path and the Development Plan as a strategy that will fulfil the dreams of the nation in the development of the economy and the entire nation.]
Chairperson, at the ANC's 52nd National Conference in 2007 we resolved that we needed to develop an active and well-resourced industrial and trade strategy aimed at creating decent work. We now have an Industrial Policy Action Plan 2 and a developmental Trade Policy Strategy and Framework. These two policy documents are at the centre of the New Growth Path and Development Plan. Whilst the Industrial Policy Action Plan identifies sectors that should be supported, a major challenge that it confronts is to prioritise catalytic sectors, to build and broaden industrial linkages between these sectors.
The Administration has placed jobs at the centre of the mandate of the Industrial Development Corporation, IDC, and Competition Commission. This is consistent with the call in the manifesto of the ruling party that was endorsed by the electorate in 2009. This is what democracy is about, giving effect to the will of the people.
We have served in the portfolio committee since its establishment in 2009, and we have seen a dramatic shift in the level of industrial funding and projects that the department has announced on its own or through the agencies it is accountable for.
As the ANC, we welcome the expansion of investment approvals by the IDC under the leadership of Minister Patel. This is a more active IDC than the one we saw in 2009. In particular, it is helpful that government is not only focusing on the level of funding, but also on the cost of funding. Many companies have raised this as a serious challenge, because their competitors in Brazil and China are sometimes able to access cheaper loans.
The introduction of a new, low-interest facility to support companies that create jobs is consistent with our electoral mandate. This is what the ANC undertook to do and so we are pleased that the department and the IDC have introduced a facility priced at the prime interest rate less three percent. The IDC spent some R27 million over the past two years alone and we now expect it to deepen its developmental impact. We want to draw attention to the move by the IDC to encourage youth entrepreneurship and jobs for youth. This is what we mean by development. The Rl billion fund announced in Soweto must now be implemented with great energy so that young people can be drawn into new decent jobs so that we can offer hope to the young generation.
While the IDC has done well, there is more that our people expect in the year ahead. We need to focus on poorer provinces. The products of the IDC should be made more accessible at a local level. I welcome that the IDC will also be part of the planned Small Enterprise Financial Agency, Sefa, roadshows. The IDC should also have a facility to assist local entrepreneurs with the technical side of producing business plans.
The focus of the Competition Commission is greatly welcomed. There is sometimes a view in the public debate that competition is an end in itself, as if jobs do not matter or that jobs will simply come automatically from competition. We think that the competition policy is part of the tools that are available to government to help drive the broader economic goals. Sometimes greater competition on its own will be helpful in bringing new energy and innovation to a sector. At other times, we need to place employment conditions in mergers and acquisitions, as our laws clearly provide.
The economy must also provide opportunities for new entrants. For this reason, it is right that we tackle monopolies and cartels. We are pleased at the Minister's announcement on the investigation into the private health care industry. Some of its practices border on callously exploiting people's illness for profit.
The Pioneer Food settlement set the trend of competition settlements with companies that can benefit all South Africans. That settlement, hon members, led to the reduction in the price of bread and flour. It also led to a fine imposed on the company that allowed the Minister to set up an agroprocessing fund, which is now administered by the IDC.
In this budget, we will approve a further transfer of monies to the IDC from the fines paid by Pioneer Foods. This fund is now creating new jobs in agriculture and the food industry. Last year, the Wal-Mart matter was finalised by the Competition Appeal Court. The Wal-Mart settlement showed that government is determined to ensure that any foreign company entering South Africa must support local industrial capacity. It has led to many workers being reinstated by Wal-Mart after they were retrenched just before the merger. It has led to a R240 million fund to support local industry. I hope, hon Mubu, you get the difference.
Hon members, the success with creating a manufacturing capacity for the taxi industry is very exciting. I used to work at Toyota Motors in Durban many years ago. I want to tell this august House that the factory is now expanding and taking in more workers. Sifiso Mhlongo is a 39-year-old worker from KwaZulu-Natal. His hometown is that of Impendle in the KwaZulu- Natal hinterland, near Pietermaritzburg.
UMhlongo ushadile unezingane eziyisishiyagalombili endala ineminyaka eyishumi nesikhombisa ifunda ibanga leshumi nambili. Uqashwe laphaya kwa- Toyota, eThekwini KwaZulu-Natali. UMhlongo kade engasebenzi iminyaka emihlanu ephila ngemisebenzana emincane ehamba ebamba lapha nalaphaya ukuze akwazi ukuthola okuya ngasethunjini. Lokhu bekwenza impilo yakhe ibe nzima azizwe engeyona indoda emzini wakhe. Kuthe ngoNtulikazi wezi-2012 uMhlongo wayesethola umsebenzi laphaya kwa-Toyota ngesikhathi kuvulwa inkampani yokuthi kwakhiwe amatekisi lawa athutha abantu KwaZulu-Natali. Lokhu kumsizile uMhlongo wakwazi ukuthi kube khona akwazi ukukuthola abuye nakho ezinganeni zakhe. Uqashiwe laphaya kwa-Toyota ku-assembly line futhi miningana imisebenzi ayenzayo ngoba uwumsebenzi oqeqeshekile. (Translation of isiZulu paragraph follows.)
[Mr Mhlongo is married with eight children; the eldest is 17 years old and is in Grade 12. He is employed by Toyota, in Durban in KwaZulu-Natal. Mr Mhlongo was unemployed for five years and he was making a living by doing odd jobs here and there. This made his life difficult and made him feel less of a man in his own house. In July 2012, Mr Mhlongo got a job at Toyota when the taxi manufacturing unit opened in KwaZulu-Natal. This has helped Mr Mhlongo with regard to earning some money and providing for his family. He is employed at Toyota in the assembly line and he is also doing several other jobs because he is multi-skilled.]
He is also used in the fitting of parts in the assembly line, parts such as lights, pipes and radiators as he is multi-skilled.
UBaba uMhlongo uqashe laphaya ehostela laseWema eThekwini ukuze kube lula ukuthi aye emsebenzini. Uhamba ngezinyawo uma eya emsebenzi kwa-Toyota bese kuthi njalo ngezimpelasonto aye ekhaya eMpendle ayobona izingane zakhe. UMhlongo uthi uyabonga kakhulu ukuthi ukwazile ukuthola ithuba lokuthola umsebenzi akwazi ukondla izingane zakhe. [Ihlombe.] (Translation of isiZulu paragraph follows.)
[Mr Mhlongo is renting at Wermer Hostel in Durban to make it easy for him to go to work. He walks to work and goes home to Mpendle every weekend to see his children. Mr Mhlongo says he is very grateful that he was afforded an opportunity to get a job and to be able to fend for his children. [Applause.]]
Our industrial policy is about creating opportunities for people like Mr Mhlongo.
SiwuKhongolose sithi Sihlalo, sizoshintsha ukwenza ukususa lezi zithiyo ezikhona ezibambezela intuthuko yezwe. Esesikwenzile kuyinkomba yokuthi lokho esikuthunywe yisizwe namaphupho abaholi abadala baKhongolose abanjengoLangalibalele Dube, uMafukuzela, oLilian Ngoyi, Walter Sisulu, Albertina Sisulu, Oliver Tambo, Chief Albert Luthuli, naboBraam Fischer kanye nabanye abaningi sizowafeza. Sizimisele ukufeza umbono wesizwe ngowezi-2030. (Translation of isiZulu paragraph follows.)
[As the ANC, Chairperson, we are going to make some changes eliminate these obstacles that delay the development of the country. What we have already done is an indication of what we are deployed for so that the aspirations of the nation and the veteran leaders such as Langalibalele Dube, Mafukuzela, Lilian Ngoyi, Walter Sisulu, Albertina Sisulu, Oliver Tambo, Chief Albert Luthuli, Bram Fischer and many more, will be achieved. We are determined to achieve our vision of 2030.]
We are determined to achieve our vision of 2030.
UKhongolose uthi asingalilahli ithemba. Ngiyabonga. [The ANC says we must not lose hope. Thank you.] [Time expired.][Applause.]
House Chairperson, hon members, at the outset let me indicate that the IFP supports Budget Vote No 28. And therefore everything I will say from this podium will be constructive. I hope there will be no noise.
The Department of Economic Development is charged with the all important mandate of spearheading job creation. Therefore the working of this department is and remains the measuring yardstick of the progress we are making, or lack thereof.
At the epicentre of this focus is the National Development Plan, NDP, which should be a magnet in attracting and aligning all government plans. In this regard we trust, Mr Minister, that the New Growth Path will immediately align itself with the goals, visions and focus of the NDP.
Today I speak on behalf of millions of young people, my fellow brothers and sisters who struggle daily with poverty and unemployment a shared hopelessness. The desperation of our unemployed young South Africans is mounting and their patience is fast dwindling. In 2013, 19 years into our freedom and democracy, a crisis is rapidly approaching as unemployment levels continue to rise. We are sitting on a time bomb that should have exploded already. As much as 25,2% unemployment is beyond critical the efforts seeking to control the same are clearly not working.
It is in this vein that we must ensure that the plans and programmes we are debating today ultimately translate into jobs or at the very least job opportunities.
In preparation for this debate I took to Facebook to solicit views of young South Africans on how best jobs could be created. And the responses were at best constructive and hope-inducing. Although I cannot read all of them here for want of time, on the question of jobs I will read what Nkululeko Wangempela Mdletshe said, for it summarises best what young people feel should be done. He says: "It is important that government focuses more on quality and sustainable jobs..."
The IFP therefore fully supports the development of SMMEs and co- operatives. And we welcome the programmes that are being rolled out by the Small Enterprise Finance Agency, Sefa, and the Industrial Independent Corporation, IDC, to ensure that South Africans are enabled to create and build their own sustainable livelihoods through the business and entrepreneurial support they are receiving. This moves South Africa away from dependency and firmly onto the course of sustainability, self-help and self-reliance.
We impress on the department the importance of ensuring that Sefa reaches all South Africans, especially those in rural areas who were hardest hit by apartheid. Moreover, the duplication and overlap of roles and functions, with regard to co-operatives, between the Departments of Economic Development and Trade and Industry is of serious concern and a catalyst for confusion. This must be resolved.
The IFP has, as its contribution to the development of co-operatives, employed an expert on co-operatives from Kenya and is already training rural women on co-operatives in KwaZulu-Natal and other areas. The failure to implement the youth wage subsidy does not in any way inspire hope and confidence in government's commitment to see through its own initiatives. And therefore, the National Youth Accord should not face the same fate of union resistance and a government that continually buckles under pressure.
The issue of jobs remains the most important and the most pressing matter that requires bold leadership from the Department of Economic Development. The IFP maintains that government should strive towards the creation of a conducive environment for businesses to operate and create jobs.
We are of the view that political freedom needs to be translated into opportunities and access to economic and social sustainable livelihoods for all. We cannot standby and watch those in power loot the country, whilst they sing the NDP 2030 economic emancipation lullaby to the poor. The year 2030 is today, and should not be seen to be 17 years from now.
The multiple accords signed by government departments nationally and internationally, particularly those related to job creation must be brought to life.
The Economic Development Department, EDD, must also ensure, Mr Minister, - we are expecting, from now on - that this department has its finger in every single pie, because the Department of Performance Monitoring and Evaluation is obviously failing to hold your colleagues and their departments to account. It is in the collective interest of economic development that all departments contribute positively and progressively towards the creation of a healthy and vibrant economy that is conducive to growth, development and job creation.
Therefore, Mr Minister, you must throw the book at all your colleagues who are not working towards the creation of such an economic environment, tell them - and you have got our support on this - it's either they shape up or ship out! I thank you. [Applause.]
Modulasetulo, Letona e leng Mohlomphehi Patel, Motlatsi wa Letona ya hlomphehang, Mme Mkhize, ditho tse hlomphehang ka mona ka Ntlong le baeti ba hlomphehang, katleho ya tokoloho ya rona ya selemo sa 1994 e neile batho ba Afrika Borwa monyetla wa ho batla kgolo ya moruo. (Translation of Sesotho paragraph follows.)
[Ms M M MOHOROSI: Chairperson, hon Minister Patel, hon Deputy Minister, hon Mkhize, hon members in the House as well as distinguished guests, the success of our freedom in 1994 has afforded people of South Africa the opportunity to aspire towards economic growth.]
The ANC's 2009 Election Manifesto outlined a clear and unambiguous path for government in its role in trade and regional integration. It stated that the struggle against poverty and underdevelopment is also an international struggle; that foreign policy would need to continue to focus on efforts of reconstruction and development in the Southern African region and Africa in general.
In this context, the ANC government has continued to play a leading role in working towards regional economic integration in Southern Africa, and socioeconomic development on the continent. Specifically, this has meant building cohesion, unity, democracy and prosperity in the Southern African Development Community, SADC, and strengthening our capability to respond to the challenges we face.
The regional economic integration in Southern Africa that we speak of as the ANC is premised upon a fair, equitable and developmental basis, promoting SADC integration based on a developmental model that includes infrastructure development, co-operation in the real economy and development of a regional supply chain.
The approach is informed by the ANC and government's national economic policy framework, the New Growth Path. This provides bold, imaginative and effective strategies to create the millions of jobs South Africa needs. Of course, as the ANC, we agree that we need jobs because we are saying: A better life for all.
The framework also lays out a dynamic vision for how we collectively can achieve a more developed, democratic, cohesive and equitable economy and society over the medium term in the context of sustained growth. The shift to the New Growth Path has required leadership and strong governance. It has, in its implementation, taken into account new opportunities, the economic strengths we have, and tried to deal effectively with the constraints we face. Changing the character of the South African economy and ensuring that the benefits are shared more equitably by all our people, particularly the poor, is a task. Let me assure you, we are equal to that task.
That unemployment is very high, we as the ANC are saying we are aware of. Because the hon Ngonyama is from the ANC, he knows about unemployment and poverty, and has been talking about these things. They did not start today, but started a long time ago. He failed during his time as Minister in the ANC-led government. [Applause.]
The strategy calls for a case-by-case analysis of tariff setting, ie each sector must be considered in its own right and in relation to its strategic role in the linkages of the economic structure. In this context, it is important that concrete trade policy instruments are urgently applied to support the domestic production of the types of goods that we have agreed to support through the Industrial Policy Action Plan, Ipap, and foster linkages between our growth sectors.
Emphasis should be placed on entering into highly beneficial bilateral trade agreements with nontraditional trading partners so as to tap into the potential presented in emerging markets such as China, India, Brazil and many African economies.
Order, hon members! Your noise levels are too high. I find it difficult to follow the speaker in front of me. I think it is also in the interest of all members that we listen to one another so that when we debate, we know what we are debating about. Continue, hon member.
This serves as political education of others.
Re na le dikamano le naha ya Brazil, Russia, China le India. Haufinyana re ne re tshwere kopano ya Brics e bileng le katleho e kgolo. Hona ke pontsho ya hore moruo wa rona o tla tswela pele ho ntlafala ho feta hona jwale. Ke e meng ya meralo eo re nang le yona bakeng sa ho fedisa bofuma. Ho molemo hore batho ba letsohong la ka le letshehadi ba ithute, ba mamele, ba bale mme ba etse diphuputso. (Translation of Sesotho paragraph follows.)
[We have relations with Brazil, Russia, China and India. Not long ago we hosted the Brics summit, which was a great success. This is an indication that our economy will continue to improve to more than what it is now. These are some of the plans we have for the alleviation of poverty. It is advisable for people on my left hand side to learn, listen, read and conduct research.]
As the ANC, we envisage an economy that fosters economic and regional integration; an economy that fosters relations with the global environment and has mutual relations with the North and the South, and is an essential component of a balanced regional economy which contributes to the growth and prosperity of Africa. The above are some of the elements that form the vision of the economic base of the national democratic society that we as the ANC seek to create.
Regional integration is one of the bases to foster inter-African relations that we as the ANC have pursued and will continue to pursue. This has been expressed through organisations such as the Southern African Development Co- ordination Conference, SADCC, the Preferential Trade Area for Eastern and Southern Africa, PTA, and the Economic Community of West African States, Ecowas.
From the onset we said that regional integration in Southern Africa would have to be based on the agreement of all countries in Southern Africa in order to form this regional economic community. This was because of our understanding, as the ANC, that this would enable balanced and stable regional economic development so that our relations with our regional compatriots would not, postapartheid, be perceived as what it was during apartheid, a hegemonic regional power.
Our attempts to accelerate the economic integration of the Southern Africa region through our goal of creating a free trade agreement within the SADC will be based on the premises of mutual benefit, equity and balance.
Ke kahoo Mokgatlo wa Industrial Development Corporation, IDC, o thusang dinaha tse potapotileng Afrika Borwa. Re ka bua ka boikgantsho ka tswelopele tse entsweng ke Mokgatlo wa IDC mane Botswana, Lesotho, jj. (Translation of Sesotho paragraph follows.)
[That is why the Industrial Development Corporation, IDC, is assisting countries surrounding South Africa. We can proudly talk about developments done by the IDC in Botswana, Lesotho, etc.]
The idea was and still is to increase South Africa's interests through our ANC-led government when it comes to relations with our traditional trading partners like the European Union.
We reflect on the legacy of apartheid and we are affirmative when we say that the ANC-led government has made great achievements and as such there is sharper regional and continental focus by our government.
South Africa is an essential component for regional and continental integration. This is because there is immense work that needs to be done to rapidly eradicate the challenges of poverty and sustained economic development, which are remnants of our colonial past. The notion is to eradicate poverty by ensuring that dependency on our colonisers is not entrenched through aid.
One of the drivers of regional integration is mainly continental, the New Partnership for Africa's Development, Nepad. Nepad basically calls for a mutual vision and a goal to eradicate poverty and replace this with a programme of sustainable economic growth and development. Ours, as the ANC- led government, is to implement economic programmes that will attain growth whilst eradicating poverty that will encourage investment, infrastructure, agriculture and regional integration.
Batho ba batsho ho tloha kgale ba lekanngwa le bofuma. Le hona jwale ho thata ho ba basweu hore ba amohele hore batho ba batsho le bona ba ka kgona ho una molemo moruong ona wa naha ya rona. O tla bona le ho utlwa ha motho e motsho eka o a iphumana, ho ba le lerata ho tswa ho baqolotsi ba ditaba le mekga ya kganyetso hobane ba dumela hore ntho e nngwe le e nngwe e fumanwang ke motho e motsho ke bobodu. (Translation of Sesotho paragraph follows.)
[Black people have always been identified with poverty throughout the years. Even at this juncture it is difficult for whites to acknowledge that black people can also benefit from the economy of our country. When a black person realizes his/her potential, there are rumours of corruption from journalists and opposition parties because they believe that anything that a black person achieves is as a result of corruption.]
Hon Chair, thank you very much! [Time expired.][Applause.]
Hon Chairperson, I want to start by congratulating the hon Minister because today he has successfully managed to fool many people into believing that the Department of Economic Development is actually achieving its mandate of developing the economy and creating jobs.
The hon Minister announced that R1,7 billion has been set aside by the Small Enterprise Finance Agency, Sefa, for youth entrepreneurship. This is simply not true. In the recent presentation in our committee, Sefa has informed us that of that R1,7 billion, only 30% has been set aside for youth-owned enterprises. The proof is in this document, hon Minister.
This is nothing short of a desperate attempt to recover lost ground in an election year to make up for the damage caused by the ANC for not implementing the President's promised youth wage subsidy. Therefore, we had the Minister engaged in a hastily convened Youth Employment Accord signing ceremony which is a nonbinding agreement anyway. It's like a ``pinkie promise'' to create jobs for the youth because if the role-players don't keep their word, the Minister can't really do anything about it and he would just be angry with them for not playing with him.
This is just another public relations exercise aimed at fooling the poor and vulnerable youth who, for the past two decades, have been fed with promises, plans and excuses. We have heard all sorts of feel-good stories about how much of investment is being made in infrastructure development. Yes, we must give credit for that. But most of these projects are not being driven by this department anyway. The Minister simply cuts and pastes and borrows from the successes of other departments and reports these projects as the successes of his department. The Minister and the department have been relegated to a co-ordinating role and he is simply playing with the toys of his Cabinet colleagues, while claiming them as his own.
We all recognise that massive opportunity exists in our country to create much needed jobs by investing more resources in small businesses. This is covered quite extensively in the National Development Plan, NDP, and the New Growth Path.
Is this department really serious about developing small business? The fact that the Industrial Development Corporation, IDC, has set aside about R100 billion for big business and only R1 billion for the development of small businesses is a clear indication that this department and the Minister are not serious about developing small businesses in South Africa.
It comes as no surprise therefore that the latest unemployment figures have now risen to 25% and the promise to create those five million jobs by 2020 will not achieve its target if we continue on this nongrowth path.
The Minister, in his reply, would give us the worn excuse that it is the fault of the global economic environment and it would take some time for us to realise these jobs in the New Growth Path. Hon Minister, neither we nor the South African public buy this story any longer.
This is the department that is struggling for relevance. If Minister Patel wants to become more relevant and develop the economy through more job creation intervention, then this department must identify and create real economic opportunities for the historically disadvantaged and the poor. I thank you. [Time expired.] [Applause.]
Mutshamaxitulu, Holobye Patel, Vaholobye lava nga kona, Xandla xa Holobye, Hlengiwe Mkhize, Swirho swa Huvo na manana un'wana loyi ndzi n'wi hloniphaka swinene loyi a nga kona eka vaendzi lava nga kona haleno, Manana Daphne Mashile-Nkosi ... (Translation of Xitsonga paragraph follows.)
[Mr X MABASA: Chairperson, Minister Patel, Ministers present, Deputy Minister, Hlengiwe Mkhize, members of the House and another mother whom I respect so much who is amongst the guests present here, Mrs Daphne Mashile- Nkosi ...]
... I'm dedicating this speech to two very special people who are now late. We lost the first one last year, and the worst loss was a day before yesterday. Last year, we lost Mme Ruth Machobane, a genius at her best. Blind as she was, she helped to establish the National Organisation of the Blind in South Africa, Nobsa. The day before yesterday we lost the chairperson of the ANC branch in Pimville, the Mpete Mosaka Branch, where I am a member. We have lost Ephraim Nkwe, a founder member of the South African Youth Congress. He, together with Comrade Rapu Molekane, contributed in the liberation of this country.
Before I go very far, I want to illustrate that small, medium and micro enterprises, SMMEs, and co-operatives are very real. Look at these beautiful school shoes; they are from co-operatives. Look at this beautiful bag. It is manufactured by the Soweto Empowerment Zone in Diepkloof. Look at this briefcase and see how it locks and unlocks. Again, it is manufactured by the Soweto Empowerment Zone in Diepkloof. Look at this "xibelana" [traditional Vatsonga female robe] ... [Interjections.]
Order, hon members! Hon member, would you return to the podium, please. [Applause.] [Laughter.]
My apology, Chairperson.
Xibelana xi endliwile hi vamanana ... [The traditional Vatsonga female robe is made by women ...] [Interjections.]
Chairperson, on a point of order: Actually, you answered one of the things that I wanted to raise about walking away from the podium when delivering a speech ... [Interjections.]
Hon members, I can't hear the hon member while you are interjecting.
Normally, if there is any display of this nature, I would suggest that it be done outside of this House or in the exhibition. You can describe the items to the people working at ... [Interjections.]
Hon member, your point is noted. Hon member, continue with your speech, please.
This pipe is used in the industry. I want to notify the complaining member that this is in made South Africa and is also manufactured in Diepkloof, in Soweto. [Applause.] This is just to show that SMMEs work. [Interjections.] If you avoid provoking me, I may also avoid the temptation of reminding you that we are meeting all these challenges because of your granddad, Verwoerd. [Laughter.] [Applause.]
The Budget Vote of the Department of Economic Development allows us to focus on small businesses and youth employment - two themes that the other hon members have spoken about in this august House. I have another bullet which I can produce; please behave.
As the ANC, we measure human welfare not only by the rate of growth of the economy, but by whether the economy grows to create jobs, empower the rural poor, bring township residents into the economic mainstream and offer hope to young people. Job creation is very important in this regard. Our challenge is therefore to find ways in which more of the nation becomes productive in the real economy - in the productive economy and not in stock exchanges.
This is where development of small business and co-operatives become so vital to our programmes in the National Development Plan, New Growth Path and the National Infrastructure Plan.
The history of small business support has never been good. During apartheid days black people were excluded from the mainstream economy. The only thing they were allowed to do was to buy, but not to sell. Licensing laws, property laws and business restrictions were hindrances. I can go on and on and this could take me back to Hertzog. [Laughter.]
While the democratic era changed much of these, we had not cracked the challenges of small business funding. Two years ago we had a multiplicity of funding agencies at national, provincial and local level. I am pleased that through the efforts of the Ministry of the department, we now have at least one small business funding agency at the national level. In the ANC we believe that co-ordination is the way to go. It is not a weakness, but a strength. [Applause.]
In the portfolio committee we have been engaging with the new agency to ensure that it is not simply the same as its predecessors. We want Small Enterprise Finance Agency, Sefa, to lend more - and be less expensive than other agencies - to the electorate and the poor.
Last year, this agency improved its lending rate to more than R400 million. This is twice as high as it was under the previous agencies, Khula and the SA Micro-Finance Apex Fund, Samaf. Once more integration is positive, therefore we welcome it. But even though it has increased substantially, it is still low and we want it to increase so that we make a meaningful impact on the lives of people. We raised this with the Minister of the Department of Economic Development earlier this year in the portfolio committee, and I am pleased to acknowledge that there is a big turnaround. The announcement made by the Minister today that Sefa will increase its lending from 2014-15 financial year to over a billion rand is very welcome. We are concerned as representatives of the ANC in Parliament that many middlemen, in the form of retail financial institutions, are taking money from the state and lending it to the small business person at too high rates. The government aims and targets helping these people. We don't want the middleperson who charges so much that by the time the money reaches the end user, much of it is depleted.
Few weeks ago, Sefa held a mini roadshow in my area, Soweto, to showcase some of their products. That was helpful, but Soweto is big and we need many more roadshows. Minister, you mentioned 18 roadshows. But if you look at the whole country, 18 are not going to take us anywhere. You better have ways to multiply them.
Government must not hide the good things that it does. Communicate what you do. We are communicating now so that people may not say we communicate because it's election time. We communicate all the time.
One of the challenges we confront in South Africa is high youth unemployment. Not all youth find jobs in big companies. We must therefore help young people to use their skills and energy to start their own businesses and co-operatives. Let us be realistic, many of the commercial banks would be reluctant to back a young entrepreneur. Yet, youth entrepreneurs created Facebook and Google of this world. That is where Sefa comes in to provide a first loan to young people.
What I'm wearing here is a black economic empowerment and co-operatives product. [Applause.] The trousers that I'm wearing here are also the product of the co-operatives. Mme Olga from Pimville made this attire. [Applause.]
The date of 18 April, on which the Youth Employment Accord was signed in Soweto, coincides with the day when the most important person, Enoch Sontonga, the writer and composer of Nkosi Sikelel'iAfrica passed on. This is a very historic day.
I support the Budget Vote. [Time expired.] [Applause.]
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.]
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.
Chairperson, the ACDP shares the concerns expressed by most speakers that the biggest challenge facing us is jobs, jobs, jobs. I'm sure members of the gallery will agree with that. The question arises: How many jobs has this department actually created? Yesterday Statistics SA indicated that 25,2% of South Africans are jobless, depending, of course, on the definition you use. Clearly, steps need to be taken to address this. We know there is consensus that the way forward is the National Development Plan. We are widely in agreement with that across the board.
However, how do we achieve this growth? Is it realistic to say the New Growth Path will achieve 5 million jobs over the next 10 years? Yes, we would all like to see that, but are the plans in place and how we will achieve those employment targets? Clearly, we have to double the rate of economic growth. That is the key aspect. We've got to move away from 2,8% to 7% and more sustainable growth. This we need to do. We should not only blame the lack of growth on the global climate, but also on our domestic challenges.
Whilst we appreciate that there is no textbook available to teach us how to acquire this 5% to 7% growth and create more than 5 million jobs, let us look at other emerging market countries such as Brazil, India and China. The ACDP trusts as well that our membership of Brazil, Russia, India, China and South Africa, Brics, will help and assist us in this learning curve to achieve that goal.
The ACDP also supports the departure from a consumption-driven to a production-driven economy. The focus of the state on infrastructure is correct. Growth must not be an aim but must focus on job creation. However, we also need to look at productivity and that is the key. We need to look at that in order to be more globally competitive to achieve our economic growth targets.
It is undoubtedly so that productivity, innovation and entrepreneurship are key economic growth aspects for job creation. These aspects and programmes need to be supported. We all know that entrepreneurs hold the key to unlocking the potential for increased economic growth and job creation. They need to be supported in every way possible. We see many of them here in the gallery. We, as the ACDP, applaud the good work that they are doing.
The ACDP supports the New Development Plan, and to a certain degree, the New Growth Path and the Industrial Policy Action Plan. We differ to the extent to which the state itself creates jobs. Obviously, it must be a partnership and, Minister, you are on record as saying there must be the necessary partnership to create this national environment for job creation. We support your efforts for social dialogue and taking Nedlac to a greater level. We are, however, concerned about the state of collective bargaining in South Africa. I think everyone is concerned about that because agreements have been breached and ignored, as we saw in the mining sector.
The ACDP, however, will support this Budget Vote and we thank you for the good work that has been done. Thank you. [Applause.]
Chairperson, the UCDP supports the Budget Vote, but job creation is central to economic development. For ordinary people, economic development means waking up to a good, decent job and to be able to provide for their families. There are a number of things that need to be addressed before we can positively make a difference to current unemployment statistics.
If the World Economic Forum ranks South Africa's labour laws the 7th lowest among 139 countries, then this is an area worthy of attention. Poor education outcomes also aggravate the issue of unskilled labour and compromise sustainable economic development.
Infrastructure inadequacies also play a major role in determining economic growth, hence the recent commitment to spend much of the country's budget is most welcome. However, infrastructural spending is riddled with its own set of problems, like tenderpreneuring and corruption, which make the country move at a snail's pace in spite of huge resources allocated. However, we need to continue addressing infrastructural constraints, especially in energy.
The role of state-owned enterprises need clear clarifications so that they can have a significant impact on the reduction of poverty and the establishment of sustainable development. Even though the idea of nationalisation seems to have been abandoned, there remains a need to empower workers through share ownership schemes so that they may acquire a stake in the rich mineral resources of this country.
The private sector has a role to play in order for us to see continued sustainable development. For instance, food retail companies need to be encouraged to establish partnerships with emerging farmers. The last issue I want to speak about is economic freedom, without which it is almost impossible to have other freedoms. It is also an insult to call people ``free'' when they remain bound to economic underdevelopment. There are many proposals in this regard. I admit that they all deserve our attention if we possess the political willingness to address economic development. I thank you. [Applause.]
House Chairperson, this department's flagship document, the New Growth Path, suggests that its ideas can create 5 million new jobs by 2020. Lets see how that is going.
On the day that the Minister tabled the New Growth Path in November 2010, there were 6,5 million unemployed South Africans. Today there are almost 7 million. So, right now there are 500 000 more unemployed people than there were the day the New Growth Path was introduced.
The increase in unemployment during the lifetime of the New Growth Path is probably not a direct result of the muddled policies in the document, because almost all of them have not been implemented, thankfully. The whole country has been talking about the National Development Plan instead.
However, unemployment has almost certainly been worsened by the ideological stand-off between the ideas coming out of the Department of Economic Development on the one hand, and those coming from National Treasury and the National Planning Commission on the other. The best example of this is seen in the shameful Youth Employment Accord published last month under the stewardship of Minister Patel and the Department of Economic Development. I encourage all the members of this House to go and read this document. I'm sure they will agree with me that it is one of the weakest documents that this government has ever worked on.
Most of the ideas in the Youth Employment Accord will simply not work for creating new jobs. There is no way that youth brigades or youth co- operatives can even begin to create the millions of jobs we need for young South Africans. This idea of youth set-asides would have a significant distortionary effect on the labour market. Most importantly, the Youth Employment Accord reads like an embarrassing effort to oppose Treasury's youth employment tax incentive. Not only does it lack any reference to the incentive, but it also actively speaks out against it.
This means we are in an extraordinary situation, in which National Treasury has now tabled not one, but two tax incentives to subsidise the employment of young people. Whilst the so-called Youth Employment Accord is meant to represent the overall strategy to tackle youth unemployment in South Africa, it leaves out the tax incetives entirely. It is a tragedy for this government to have an ideological stand-off blocking progress in the exact parts of Cabinet that should be working to create jobs.
Thirty-eight percent of South Africa's workforce cannot find work, or has given up looking. In the past three months, the ranks of the unemployed nationally have increased by 73 000. This is despite the best efforts of the Western Cape, where we've brought the number of unemployed workers down by 16 000 in the same period.
Imagine how many more workers could have had the chance to join us in the gallery today if government worked hard at bringing down the cost of doing business, as they do in Minister Patel's vague record. Over the past five years, we have given this department R2,7 billion of taxpayers' money. With this money, the department has achieved three things.
Firstly, it has published six accords that together have not created a single job. Secondly, it has given Cosatu a voice in the economic cluster. Lastly, it has worked hard to provide ideological opposition to Treasury and the National Planning Commission, blocking new policies and reforms that would start to tackle the world's highest rate of unemployment. In anybody's book that is not good value for money. I thank you. [Applause.]
Hon Chairperson, I would like to thank the Minister, the director-general and the officials for the support that they have given to the department up till this day. I want to start off by reflecting on a historical statement, which I recall occurred at the business and labour hearings of the Truth and Reconciliation Commission, where Prof Sampie Terreblanche, an academic, economist and writer, to name a few of his credentials, testified to the effect that apartheid was beneficial to white-owned businesses, because it was an integral part of a system premised on the exploitation of black workers and the destruction of black entrepreneurial activities.
Therefore, I logically attribute this debate to Mrs Charlotte Maxeke, a gallant freedom fighter, fearless tigress, scholar and leader of the struggle against the Natives Land Act of 1913. This legislation was part of the machinery which was established to systematically impoverish, marginalise and exploit the oppressed.
Of course, we have to look at our Constitution, for it entrenches economic and cultural rights in an unprecedented manner. Our own first President of the democratically elected government, Mr Nelson Mandela, stated that no political democracy can survive and flourish if the masses of our people remain in poverty, without land and without tangible prospects for a better life.
Along the same lines, the Freedom Charter states that the people shall share in the country's land. Of course, logically, our President, Mr J G Zuma, stated in his state of the nation address in 2009, at the birth of this historic department, that the creation of decent work will be at the centre of our economic policies and will influence our investment attractions. I think the Minister was able to demonstrate the progress made by this department thus far.
There has been a reference to the New Growth Path, NGP, and of course there are some misunderstandings. If you take a look at where we come from, which was a systematic system, legalised over many years, which was meant to destroy jobs, I think we should be realistic in saying that the NGP of the Department of Economic Development is undoing that process. It has to be intense as it is being implemented and it is going to take time.
Sectors have been identified, and we have heard a lot about what has been achieved through infrastructure development and the mining value chain. They include beneficiation, agriculture and agro-processing, rural development, manufacturing, tourism, the creative industries and high-level services.
According to all monitoring and evaluation reports, it is clear that we are a nation at work, with a clear vision to achieve our job targets. Of course, we have to admit that we still have people who are vulnerable in our midst, like women, the youth, the disabled and people in rural communities. Unfortunately, they are still predominantly black and they constitute 60% of our society.
We would recall that last year, Africa as a whole lived through the trauma of the Arab Spring uprisings, and we are hard at work to ensure that we convey a sense of hope to our young people through the work that will emanate from the signed Youth Employment Accord. We are determined and resolved to work within a sustainable and comprehensive strategy, whereby young people have access to skills that are strategic and that are relevant to industries of interests.
We firmly believe in the future of this country and have embraced the National Development Plan Vision 2030 as ``umkhombandlela wethu'' [our guide.] Our Minister in the Presidency: National Planning Commission, Mr Trevor Manuel, said during the launch of the country's overall vision for South Africa that the plan we hand over is about the actions that all of us should take to secure the future chartered in our Constitution.
Of course, along the same lines as the NGP, the emphasis is on partnerships. It is not about government, the Opposition or the ANC not having done that, but it is a national call for all of us to work strategically in partnerships to find ways of making breakthroughs.
When it comes to the question of the youth, the department will continue to tackle youth unemployment, using whatever resources are available, not only within the department or the sector, but also among our partners in the private sector. The whole area of information communication technology, ICT, given its dynamic nature, hold great prospects for young people and they seem to be attracted to it, as well as areas of manufacturing.
The policy pillars of inclusion and sustainability are very, very important. We are working hard to learn, as we visit our most vulnerable communities, like the 23 poorest municipalities that we are having dialogues with on an ongoing basis. One of the lessons that is uppermost is the need to integrate and co-ordinate our efforts, as we have done at the level of infrastructure development.
Support for small and medium enterprises and co-operatives should be enhanced and we are basically looking at a possible model whereby we invest at a higher level during the phase of entry, given the challenges of the new entry phase. In most instances people's co-operatives and small, medium and micro enterprises, SMMEs, have not been sustainable, mainly because we did not invest heavily in their capacity building from the beginning. We do believe that through trade policies, we can leverage and continue, like the Industrial Development Zone, IDZ, to make sure that our SMMEs are empowered to be suppliers to big industries. In that way they will move beyond survival and become suppliers of choice. I learned a good example from a colleague, the Deputy Minister of Transport, Ms Sindiswa Chikunga, with regard to the rolling stock programme of the Passenger Rail Agency of SA, Prasa. She has gone public nationally and, accompanied by many of us, has clearly stated that the vulnerable groups, which are people from rural areas, women and our youth, will benefit from this as manufacturers, not only with regard to social services. They have set aside huge amounts of money to ensure that it happens, and the multinationals that are benefiting from this are given clear conditions to support the skills development, which of course will mean that many more of our young people are included.
Through other projects we are also learning to support those that are run by women, like poultry farming in KwaZulu-Natal, under the leadership of Dr May Mkhize. This clearly says that we need to invest in the whole value chain, the breeding, the abattoir, packaging, quality, storage and enterprises. In that way, we are clearly turning the tide around, where women will be given support on a small scale and they are empowered to enter the whole value chain.
In the area of waste management, we have also had interactions with communities like Alexandra township, and again the strategy there is to find ways of ensuring that our vulnerable groups participate at all levels, not only in waste collection, but also by using new technologies in creating alternative energies, and also in moving on to producing manure and using it for farming.
In conclusion, I would like to reiterate our commitment by using an example from a children's book which many of you might know. It is about an ugly duckling that was laughed at and scorned by the swans. One day that ugly duckling became a beautiful swan that all the swans admired. It is time that we turn small businesses into beautiful swans - which will be a solution to joblessness - instead of treating it like ugly ducklings. The meaning of this children's story is that we cannot afford to support SMMEs half-heartedly, as they are key to growing an inclusive economy, creating massive employment and also skilling our people without any threat. I thank you. [Applause.]
Mohlomphehi Modulasetulo, Maloko a Hlomphehileng a Palamente ho ya ka ditulo tsa lona jwalo, le baeti ba rona ba hlomphehang ba bohlokwa, ba entseng hore e be kajeno re bitswa Maloko a Palamente, pele ke bua ka moruo o motala, ke tla rata hore ke re le se ke la makalla maratanyana a bang teng ka hara Ntlo. Nako yane ya dikgetho e se e fihlile. Jwale, ka ho hopola hore dimilione tse leshome le motso o le mong tsa batho ba kgethileng ANC di ntse di le teng, ebile manane a tlo eketseha, ke ka hona re ntseng re itlatlarietsa. Jwale, le se ke la makala. (Translation of Sesotho paragraph follows.)
[Mrs D R TSOTETSI: Hon Chairperson, hon Members of Parliament, and our distinguished guests who made it possible for us to be called Members of Parliament today, before I speak about the green economy, I would like to say that you should not be amazed by the noises that are sometimes experienced in this House. Election time is almost here. So, if we could keep in mind that 11 million people who voted for the ANC are still around, and that the numbers are going to increase, we would understand why there is so much commotion. So, do not be amazed.]
The green economy benefits households, business communities and the government, local government in particular, as it is the structure that deals with people directly on a daily basis. Through the green economy, municipalities could enhance their revenue base and strengthen local economic developments, wherein small, medium and macro enterprises, SMMEs, and co-operatives, co-ops, find expression. In my previous deployment at Emfuleni Local Municipality, I happened to be part of the team that undertook a study tour to the Netherlands. The best thing that we learned is the impact of an incentive as a reward for compliance. People take their domestic garbage to the municipality and this garbage is separated and weighed. The amount of garbage reduces the amount which was supposed to be paid on rates. We hope that our municipalities would consider that.
One of the research documents produced by the Industrial Development Corporation, IDC, and the Development Bank of South Africa, DBSA, team in 2011, it is spot-on regarding green jobs, ie employment-creation potential of approximately 98 000 new direct jobs on average in the short term; almost 255 000 in the medium term; and around 462 000 employment opportunities in the formal economy in the long run. By now, the numbers have increased.
Eo hee ke ntho eo re e bitsang tsebo e tlwaelehileng, hore dipalo di atile ... [This is what we call common sense, the numbers have increased ...]
... but the DA will always deny that ...
... empa re a tseba hore ke tsebo e tlwaelehileng, e a tsebahala. [... but we know that this is common sense, it is well known.]
However, common sense is not always common. For instance, "ANC evaporating into thin air in 2019 because it delivered nothing".
O a bona ena hee, le dibuka tsa ntshetsopele ya mathomo ya bongwana ha di na yona tsebo e tlwaelehileng e tjena, eo re e bitsang ka hore ke keretjhe ha re bua ka sekgowa ... [Concerning this issue, even books on early childhood development do not have such common sense, which is what we call "crche" in English ...]
Possibly in one of the institutions for mentally challenged people ...
... re ka e fumana tsebo e tlwaelehileng e jwalo. [... we can find such common sense.]
At least, in such cases the particular common sense would be understandable and tolerated.
The second draft of the National Water Resources Strategy released recently by Minister Molewa warns that South Africa is at risk if water is not properly managed and responsibly used. Rural communities are hardest hit as far as the scarcity of water is concerned. This scarcity has an adverse impact on all efforts for development as most of them depend on agricultural development, an area which they can master and excel in if water is adequate. However, we must not lose sight of the Presidential Infrastructure Co-ordination Commission, PICC. We hope the PICC has the necessary capacity to fast-track rural development and development in general.
We must also take care of the cost of doing business so that we attract foreign investment without compromising local procurement. Mr Patel and members of the Committee on Economic Development shared their achievements with us while, at the same time, we acknowledged weaknesses and bottlenecks, some of whom are as a result of resistance by those who said the ANC would rule South Africa over their dead bodies. But, here is the ANC, governing South Africa over their living bodies! [Applause.]
However, we must rise above petty and cheap politics and acknowledge previous oppressors and beneficiaries of apartheid laws who have seen the light. Seeing the light has little to do with joining the ANC and its alliance partners, but has more to do with the mindset.
Hon member Mubu, my friend, if you want to speed up service delivery, you decentralise the whole and deploy people in terms of their special skills. That is why tertiary institutions have lecturers and schools have teachers who specialise in various subjects. Imagine what would happen if one teacher was teaching all the subjects? This used to be the situation during apartheid. Apartheid has inflicted a lot of harm to most of us. But, little did we know that it had caused irreparable damage to the mindset of some until we heard them speaking.
Mme Ngonyama, mngani wami, I trusted your listening skills but you really disappointed me. The Minister had gone to town tabulating achievement and plans in place, but you still say we have done too little to measure. The promises that you are referring to are commitments which are tabulated explicitly in the Green Economy Accord that you all know about.
Mme Hlengwa, there will never be a time when all the people in any country are employed. South Africa is worse as big business retrench workers whenever they demand what is due to them. Labour is not donated but sold to the highest bidder. It is painful to see companies take advantage of the plight of our foreign brothers and sisters. They see them as a variable to minimise costs. That is cheap labour to the detriment of the good plans for job creation and economic growth.
Fortunately, Mme Hlengwa, age is on your side. Soon, you will understand the old trick of divide-and-rule. You have never worked for these predators. Otherwise, you wouldn't be expecting government to undo what was practised for over 50 years in one night.
Hon member Hoosen, the prophets of doom that came before you failed to educate you. They became frustrated and ended up singing, ``Nelson Mandela, ha ho na ya tshwanang le wena''. ["Nelson Mandela, there is no one like you".] Why don't they sing about other leaders who equally contributed to the struggle against apartheid? The same Mandela was labelled one of the most dangerous terrorists.
The things that you say about Minister Patel are the same things they said about our former freedom fighters, but today they bow before them. It is because of the DA, or IDA, that most black people are not educated. Illiterate as they are, when coming to election time, make no mistake, they will vote for the ANC. Hon Harris, you are always negative and I think it is now time for government to assist you. Hon member Motsoaledi and his team must organise psychologists for you. You are too young not to be able to read and interpret documents, and see where and what government has delivered, where it has failed and why. You are one of the people who are privileged to have received a better education.
Jwale, motho o a ipotsa hore na o ile wa pasa jwang sekolong. Ka nako e nngwe ha o pase hoba o arabile dipotso ka nepo; empa ka nako e nngwe o pasa hobane o arabile dipotso ka puo ya Afrikaans, ho sa kgathaletsehe hore na di nepahetse kapa di fosahetse. [Ditsheho.] [Mahofi.] (Translation of a Sesotho paragraph follows)
[Now, one wonders how you passed in school. Sometimes a person does not pass because they answered questions correctly; but sometimes they pass because they answered questions in Afrikaans, irrespective of whether they were correct or not. [Laughter.] [Applause.]]
Coming back to the green economy ... [Interjections.] No, I am trying to skip some. I'll talk about the importance of nurturing the environment. This is an action which brought about the concept of ``green economy''. I agree that the green economy is usually an economic revolution, not only in South Africa, but worldwide. A number of projects in the green sector have been initiated, such as the 28 projects in wind, solar and small hydro technologies; rolling out of the solar water geyser; and the establishment of the Green Fund.
The projected 300 000 jobs that are going to be created over the next decade through the green industries will be achievable through these inventions and many others that are in the pipeline. The Industrial Development Corporation's role as a driving force of commercially sustainable industrial development has not gone unnoticed. It has done a lot to put us where we are today.
Successful projects such as DCD Wind Towers factory; bioethanol projects both in the Eastern Cape - Hon Ngonyama, Eastern Cape is included this time; - the SA Calcium Carbide project in Newcastle; and the Russell Stone soy crushing plant in Bronkhorstspruit are examples of some projects funded through the IDC, which are a means of enhancing industrialisation. The benefits of these projects are manifold. They include environmental localisation and rural development benefits, and target poorer provinces for downstream development.
As for the household food that is left over fresh or stale - the paper in the yard, and small pieces of metal - could manufacture compost. But, is there a market for that compost? In as far as our wellbeing is concerned, we have the power to make or break. If you go to the landfill site and stand there for some time, just next to a small heap of rubbish, you will feel the heat coming out of it. That is the energy which is generated by that rubbish. It happens the natural way, but now we have sophisticated means to generate energy taking into consideration the fact that we have deadlines to meet.
To further quote the Green Jobs document verbatim:
The largest contributions to job creation are likely to be associated with natural resource management due to the rich endowment of natural capital in South Africa and the need for its commitment for its preservation.
Government has proved its commitment to natural resource management. We have passed the National Environmental Management Act, 59 of 2008, Nema. The Act talks to policies, standards and regulations. Nema calls for greater collaboration and alignment of departments. For instance, Department of Health should guard against noncompliance relating to medical waste.
The Department of Mineral Resources must take care of the mines that contaminate water, and they do not cover unused, depleted mines. The Department of Agriculture - it is unfortunate that member Lekota is not here, but it is meant to assist hon Lekota - must punish people who mercilessly kill horses and donkeys and dump them in open fields next to human settlement areas. The same applies to dogs, hon Huang.
The Department of Justice capacitates the relevant authorities to bite hard on noncompliance. Not only is the environment affected, but our health as well. This also impacts on the labour force. People become infected and are forever on sick leave. We need a healthy workforce so that we accelerate the Green Economy.
Water pollution is the most deadly element or component of the whole cycle. I hope we are observing the cycle, the ecosystem. If the environment is not nurtured, it will be a vicious cycle. The hazards that come with climate change are as a result of noncompliance with legislation and irresponsible behaviour, littering and polluting of air and water, which are sources of life and development. [Time expired.] [Applause.]
House Chairperson, I would like to start off by inviting hon members from all parts of the House as well as members of the audience to join us at the reception in the New Assembly Restaurant at a modest reception, I point out, immediately after the conclusion of this debate.
It's clear that there is consensus on some issues in this debate. Jobs are central. Inclusive growth is important, and by that we mean both higher rates of growth, but also more job-absorbing growth. The question is how. And I think what we have been able to do as the executive and what a number of Members of Parliament from the ruling party did was to spell out, indeed, concrete ways how we are doing that, how we are making an impact as government, how we are making an impact as Cabinet and how we are making an impact as a department through many excellent interventions, some great ideas which we will take forward. But not all the interventions have maintained that high standard. Perhaps, as someone pointed out, because an election is around the corner.
Hon Harris says that the Youth Employment Accord is shameful, it is the weakest document of government, it is going to fail, and so on. I have brought a copy of the Youth Employment Accord for the hon member. I will draw his attention to page 24. On page 24, I will draw his attention to the fact that one of the signatories of the accord is a certain Mr Gana Makhashule. Mr Makhashule is the federal Deputy Chairperson of the DA ... [Applause.] ... and until last week, he was the leader of the DA youth. He signed the accord on behalf of the DA youth. Perhaps he is a little bit more passionate about employment of young people and a little bit less concerned about the grandstanding that we saw from the hon Harris. [Applause.]
The hon Harris, of course, is described on the website as ``shadow minister of finance''. One of the requirements of a minister of finance is the ability to count. I think it is fairly intrinsic to the job. So, if you aspire to be the shadow minister - hopeful one day you will get to be more than the shadow minister - although that may be a very long time from now, let's, in the meantime, use the time to count. [Laughter.] On the website yesterday, before looking at anything, when the Statistics SA Quarterly Labour Force survey came out, Mr Harris rushed to print and he says in print:
Fortunately, the DA-run Western Cape bucked the negative trend by creating 8 000 jobs in the quarter, seeing unemployment reduced further.
I have brought the hon Harris a copy of the Quarterly Labour Force survey. I have taken the time to mark it with post-it notes. I draw his attention, amongst others, to the areas that indicate what has happened to employment in the Western Cape in the first quarter of this year ... [Interjections.] ... 14 000 jobs were lost. [Applause.]
Now, we don't celebrate that, because those are our people. Those are people for whom we need to try to get jobs, but what we do want to point out is that, as hon Ngonyama said, "Unemployment has no silver bullet". It means really working on it consistently in a stubborn focused way, and hon Mabasa showed us examples of concrete ways in which jobs have been created. I am going to leave a copy of the Quarterly Labour Force survey here for the hon Harris. [Laughter.]
I will also leave a copy of the Youth Employment Accord here for him so that he may be able to see what I have said. But it seems to me that, unfortunately, these things don't reside only in one member. The hon Mubu, who is generally very pleasant in our committee until an audience appears, as today, pointed out that the Walmart matter is a waste of public money. I will draw the hon Mubu's attention to the hon Ntuli, who provided a sharp, incisive, sophisticated understanding of competition policy. Please study the Hansard; it will be of great use to you. [Applause.] [Laughter.]
The hon Hoosen, who also aspires to be a shadow-something at some stage, posed a question. He says the information we gave in the Small Enterprise Finance Agency, Sefa, is not correct. I have a copy of the Sefa presentation here; I have a calculator here and I will leave a copy of the Sefa business plan for you. I have added up the five years; I have added 30% and I am happy - over a cup of coffee - to show hon Hoosen how to do a percentage calculation. [Applause.] [Laughter.]
Finally, hon House Chair, I would make the point that part of the drama of a debate is this kind of thing. It spices up the discussion and makes it less boring, and so on. But employment is serious, economic development is serious, fighting poverty, inequality, is serious. We need to build consensus to work together.
When the economy actually creates 44 000 jobs in three months, let's celebrate it. When it creates 199 000 jobs over 12 months, let's celebrate it. We are South Africans together. We are in this together, and we can win the battle against poverty, unemployment and inequality together. Thank you very much. [Applause.]
Debate concluded.