Hon Madam Chairperson, Ipap2 represents, as it states, an action plan by the Department of Trade and Industry in attempting to create a platform for the direct and sustainable increase of manufacturing productivity within our country.
We are at an extremely delicate juncture, economically speaking, with fears of a double-dip recession looming and with some economies in the world already showing signs of contraction. A cluster-co-ordinated strategy must therefore be determined and implemented between the various stakeholders and government departments, as well as the industry if South Africa is to avert economic disaster.
The creation of sustainable employment being core to Ipap's programme must remain strongly within our focus. Unemployment levels which are dangerously high at the moment need to be addressed because of their dire socioeconomic implications, which in themselves are counterproductive to domestic growth.
Mechanisms which attract foreign direct investment into the manufacturing sector and will have the effect of bolstering both employment and productivity must be put in place.
South Africa's manufacturing competitiveness must be on par globally if we are to sustain the increase we have seen in our manufacturing sector over the past 10 years. Variables such as the very high costs associated with capital and its limited availability in this country, as well as unreliable and costly port, rail and road systems, coupled with very high electricity prices, do not make South Africa as attractive as other developing countries, such as India and Brazil.
The automotive industry has been identified as one of the core focus sectors for the current period. This is a sector which is expected to contribute an extra 150 000 jobs in the next 10 years, and is also a sector which avails lends to increased productivity as only 35% local content is presently used in motor vehicles manufactured in this country. Furthermore in this regard, Ipap2 must be assisted by national skills development in the automotive and other manufacturing industries. Trade schools should be readily available for learners countrywide who want to pursue a career in manufacturing.
In conclusion, the IFP would like to see a co-ordinated approach and the working together of all interested sectors of government in making Ipap2 a great success as herein lies the key to us meeting our future growth path goals. I thank you. [Applause.]