The EFF does not support the adoption of the revised fiscal framework because it is based on a misdiagnosis of the structural deficiencies that define the South African economy. The South African government is failing to expand revenue base and is now resorting to what appears to be austerity measures and interventions.
Europe, when it was in an economic crisis, decided to expand and expend on many interventions in order to reinvigorate economic activity. Here, it looks like the approach is different. I do not know what the Minister and the ANC seek to achieve. It is altogether a misapplication of wrong remedies to an improperly diagnosed problem of the structural deficiencies that characterise our economy. You do not have an adequate revenue base, because you are not in control, and strategic ownership of the key means of production, the mines, the land and the key factories that should be guided by the state to increase the revenue base.
The other issue which we have obviously raised before is that most of the capital is being stolen here in South Africa by multinational corporations. There is potential of expanded revenue base from the mines and everything, but through transfer pricing and capital flight, you can't have access to that and you are then shifting the blame to those who are supposed to be recipients of government funding. On that basis, we do not agree with the revised fiscal framework because it is a misdiagnosis and wrong application of the remedies. Thank you very much.