Deputy Speaker, previous speakers have indicated that today is indeed a very good day for the youth of South Africa, because the employment tax incentive is raising the expectations of thousands of young people. However, we need to ask ourselves very honestly today, Minister: How strong is the current incentive? The honest answer is, and this has been indicated by other speakers as well, that it has unfortunately been watered down to a certain extent.
The Employment Tax Incentive Bill, to introduce a youth wage subsidy, can be considered a disappointment compared to the 2010 aspirations for the subsidy. In its current form it might let the young people of South Africa and the poor down, because it is a watered down version of the Bill.
The DA believes that the Bill provides a weaker incentive, for three main reasons. The Bill introduces a minimum wage requirement and, secondly, existing young workers will not be considered for the incentive. The mechanism to allow the cash payout to the employer for the incentive, if a company's pay as you earn bill is depleted, will not be implemented immediately, and the Bill gives us no indication of a timeframe in this regard.
My colleague Tim Harris made a concerted effort to introduce a really strong youth wage subsidy, but this Bill will now not introduce that really strong youth wage subsidy, because of the changes made to the original 2010 policy.
The cost estimate, and that is the example, of R1,3 billion to R3 billion is significantly less than the original R5 billion tax loss budgeted in 2010. The effect of this has unfortunately reduced the number of young people estimated to benefit from the subsidy. The original version would have helped 423 000 young people. However, only last week it was seen that the expected support will now go to only 200 000 jobs.
In closing, I wish to make the following remarks. The DA supports this incentive. We think it is a step in the right direction and it has, indeed, been calling for this action for a couple of years. However, we sorely regret, Minister, that the disagreements within the tripartite alliance have stood in the way of fixing the greatest crisis facing our nation. Thank you so much. [Applause.]