Chairperson, this Bill has major implications and potential consequences that should support the requirements for a sustainable gross domestic product, GDP. The Minister must be complimented on his bold and clear observations and advice he has given about the unacceptable performance by most departments. Unfortunately, it often seems he is a lone voice in a political wilderness where nobody else sees, hears or speaks sensible and prudent economics.
The global economy is now in real turmoil, while uncertainty and also anxiety prevail amongst global investors, which emanate from a negative sentiment towards emerging markets that also profoundly affects our domestic economy. The political volatility and the views expressed by the ANC's leftist partners have certainly added to this. Our inflation and interest rates remain relatively high when compared to our main trading partners. It is expected that the rand will weaken further in response to the uncertain portfolio inflows, a volatile dollar and the perceived risk linked to the ever-increasing current account deficit.
The DA's election manifesto has the objective of offering a realistic alternative approach in an open-opportunity society in order to assure all taxpayers and investors not only that the DA can and will make realistic, meaningful and constructive contributions to ensure the highest probability of macroeconomic success, but that we can act as their credible and knowledgeable watchdog and as a realistic alternative government-in- waiting. We have an important role to play to comfort current and potential investors.
Die Minister moet gekomplimenteer word vir die volgende:
Die verdere toedeling aan Eskom, staatsondernemings, provinsies en munisipaliteite vir hulle kapitaaluitbreidingsprogramme, hoewel daar te min op die privaatsektor se rol gefokus word.
Die klem op die noodsaak vir die uitvoergerigtheid en die verdien van buitelandse valuta.
Die noodsaak vir die ontwikkeling van vaardighede om die verlangde ekonomiese groei te ondersteun.
Die toekenning om die maatskaplike sektore verder te bemagtig en die mees kwesbaaarste in ons gemeenskappe, kinders tot 15, die behoeftiges en veral gestremdes, verder te ondersteun.
Dit is noodsaaklik dat ons die ekonomiese koek groter moet maak, en dat die belastingbasis verbreed moet word sodat meer volhoubare werksgeleenthede geskep kan word. Dit sal die lewenstandaard en welvaart van alle burgers verbeter, en dit kan verseker dat die vraag-en die aanbodkante van ons ekonomie optimaal ontwikkel en benut kan word.
Die volgende bekommersnisse bestaan onder andere by ons:
Die vooruitskatting van die bruto binnelandse produk, BBP, is 'n skrale 1,2% en verdere ekonomiese skokke kan ons in 'n resessie dompel, sonder genoegsame reserwes.
Hoewel ons begrip het dat die 3,8% begrotingstekort en die leningsopnames tans geregverdig kan word as 'n anti-sikliese meganisme, is ons tog bekommerd dat sulke tekorte en skuld nie volhoubaar is nie en as 'n las op toekomstige generasies gelaai kan word.
Die al groter wordende tekort op die betalingsbelans bly 'n groot bron van kommer. Die Minister het - soos ook verlede jaar - dit erken en die goed bedoelde erkennings, versoeke vir buitelandse kapitale investerings en die toekenning van fondse na die Departement van Handel en Nywerheid vir uitvoerbevordering, is klaarblyklik nie meer genoegsaam nie.
Kommerwekkend is dat die nywerheidsontwikklingsbeleid steeds nie daarin slaag om uitvoere effektief te stimuleer en om vaste kapitaal investerings na Suid-Afrika te lok nie.
In meerdere gevalle het ons belemmerende wetgewing. Nie net moet huidige werkers beskerm word nie, maar behoort die toetrede van veral werkloses en eerste toetreders, aggressief ondersteun te word. (Translation of Afrikaans paragraphs follows.)
[The Minister should be complimented for the following reasons.
The further apportionment to Eskom, state enterprises, provinces and municipalities for their capital expansion programmes, although too little focus is placed on the role of the private sector.
The emphasis on the need to be focused on exports and earning foreign exchange.
The need to develop skills in order to support the required economic growth.
The apportionment to further empower the social sectors and to further support the most vulnerable in our communities; children up to 15 years of age, the needy and in particular the disabled.
It is essential for us to enlarge the economic cake and to broaden the tax base so that more sustainable job opportunities can be created. This will improve the quality of life and prosperity of all citizens and it will ensure the optimal development and exploitation of the supply-and-demand side of our economy.
Amongst others, we have the following concerns: The estimation for the gross domestic product, GDP, is a paltry 1,2% and further economic shocks could plunge us into a recession, minus sufficient reserves.
Although we understand that the 3,8% budget deficit and loans being taken up can currently be justified as an anticyclical measure, we are nevertheless concerned that such deficits and debts cannot be sustained and might be transferred as a liability onto future generations.
The ever-increasing deficit in the balance of payments remains a great source of concern. As happened last year, the Minister has acknowledged this, but such well-meant acknowledgements, the requests for foreign capital investment and the apportionment of funds for export promotion to the Department of Trade and Industry are apparently no longer sufficient.
It is alarming that the industrial development policy has still not succeeded in effectively stimulating exports and attracting fixed-capital investments to South Africa.
In most cases we have restrictive legislation. Not only must current labour be protected, but access for the unemployed and first-time entrants ought to be supported aggressively.]
The Setas have demonstrated that they are a huge failure in support of a targeted GDP. The DA's view is that the business sector should rather be rewarded for providing the required skills. A whole restructuring of the employment, skills development and human resources programmes in the Department of Labour is needed to ensure an environment conducive to quality and responsive skills development.
It was a huge disappointment to the DA and business at large that the expectation of a wage subsidy created by the Minister in his 2008 Budget Speech seems to have vanished from his radar screen. This is a great open- opportunity mechanism to support especially the unemployed and first-time entrants to gain skills and experience.
The DA will persist that this be brought back and that other job-creating initiatives and incentives be considered. Similarly, it seems that most of the National Treasury's commissioned Harvard report proposals have also been ignored to date. Much more needs to be done to support business in creating new jobs. The underperformance of most government departments and the apparent lack of real skills and accountability are still major barriers to development opportunities for all.
It is evident that the current requirement for foreign investment, well in excess of R3 billion per week, to fund the current account deficit is catching up with us. We urgently require an initiative to effectively address this question. Sustainable exports will not only support the much- needed employment drive, but will also release pressure on the current account deficit. The DA believes that export processing and job-creating zones need to be developed in support of these.
Everybody is shocked that the Minister has once again rescued SA Airways from bad management and financial decisions. The taxpayer cannot be expected to carry this liability much further. [Interjections.] SAA can be a strategic and competitive asset, provided it is viable. As an increasing liability, unbundling and/or privatisation must become realistic options.
Verbruikersbesteding en kredietopname asook hulle spaarvermo het die afgelope jaar skerper gedaal as verwag. Dit regverdig aggressiewe verdere rentekoersverlagings.
Die DA sal voortdurend krities wees om te verseker dat ons weer 'n kompetering- en voorkeur ontwikkelingsmark alternatief word, veral ten opsigte van direkte vaste kapitale investerings. Onder die huidige moeilike ekonomiese omstandighede, is ons egter gemaklik met die doelstelling van hierdie wetsontwerp. Ek dank u. [Applous.] (Translation of Afrikaans paragraphs follows.)
[Consumer spending and taking up credit, as well as their capability to save, dropped further than expected in the past year. This justifies aggressive further interest rate cuts.
The DA will continue to be critical in order to ensure that we once more become a preferred and competing development market alternative, in particular in respect of direct fixed-capital investment. Under the current difficult economic circumstances, however, we are comfortable with the aims of this Bill. I thank you. [Applause.]]