Chair, the special economic zones contemplated by the Special Economic Zones Bill present a vast improvement on the existing industrial development zones that only allow for limited benefits to create an enabling environment for business to grow. The IDZs have not been particularly successful in providing for an incubation and growth space for business and industrial activity.
Die feit dat daar nou moontlik belastingvoordele geskep word vir besighede wat hulle in 'n spesiale ekonomiese sone, SES, vestig, is natuurlik van groot belang en sal die moontlikheid van suksesvolle beleggings in sodanige sones versterk. Dit is juis een van die groot nadele van die wet wat 'n groot rol gespeel het in die gebrek aan bewese sukses in sones soos Coega. (Translation of Afrikaans paragraph follows.)
[The fact that possible tax advantages are now being created for businesses that want to be established in a special economic zone, SEZ, is naturally of great importance and will strengthen the possibility of successful investments in such zones. This is precisely one of the big disadvantages of the Act that played a major role in the lack of proven success in zones like Coega.]
It is therefore positive to see government taking important lessons from the lack of success of the current IDZs. Business looks for an enabling environment and will not participate in any schemes unless it appears to be beneficial from a profit point of view. The Minister will also have to look further than tax incentives to lure business.
Broad-based black economic empowerment is a driver of cost as evidenced by an increasing number of researchers. I makes sense to address this as well. We suggest that the Minister introduces a further benefit that has the result of creating jobs and eradicating poverty in certain targeted areas. Instead of focussing on ownership in a SEZ zone, the focus should be on job creation as set out in the Bill's objectives. This can be achieved as follows: free all businesses in certain SEZs from BBBEE and instead require them to strive for certain job targets, with employment not taking place based on the national demography, but on socioeconomic measures. The employees can then participate in the share scheme that will allow for broad empowerment by way of ownership.
Op hierdie wyse word daar gefokus op die belangrikste aspek om armoede uit te wis, naamlik werkskepping. Swart ekonomiese bemagtiging, SEB, werk te beperkend en verryk net 'n paar individue. Nadat daar op 'n bre basis werk geskep is, kan aandag gegee word aan die bemagtiging van die werkerskorps.
Indien die SES op hierdie wyse besigheid sou lok, kan dit daartoe lei dat sones in erg verarmde gebiede in Suid-Afrika tot stand kom, soos 'n beoogde Noord-Kaapse ontwikkelingskorridor, 'n Transkei-korridor, 'n Mpumalanga- korridor, en talle ander. In die Noord-Kaap sal dit beteken dat bruinmense oorwegend in diens geneem en bemagtig sal word, asook die Khoisan-volke. (Translation of Afrikaans paragraphs follows.)
[In this manner the focus is on the most important aspect for eliminating poverty, namely job creation. Black economic empowerment, BEE, is too limiting and cause the enrichment of only a few individuals. After jobs have been created on a broad basis, attention can be given to the empowerment of the worker corps.
If the SEZ should lure business in this way, it can lead to the creation of zones in very poor areas in South Africa, such as an envisaged Northern Cape development corridor, a Transkei corridor, a Mpumalanga corridor, and various others. In the Northern Cape it will mean that predominantly coloured people will be employed and empowered, as well as the Khoisan people.]
Thus, we wish to impress upon the Minister to take an open-minded approach when approving SEZs. SEZs can be a true instrument for development.