Mr Chairperson, we firstly take this opportunity to once again applaud our hon Minister of Finance and his team for an impeccable job.
The MF is pleased that the Medium-Term Budget has consistently helped in tackling our aims of eradicating poverty, enhancing social development and developing the economy by supporting all Asgisa efforts. From the hon Minister's report, it appears we have grown significantly and our progress has been faster than anticipated.
The MF is also concerned about education, health and social development. We are especially pleased that the Budget has advanced more funding to help target these sectors.
We appreciate that there are statistics that indicate that employment has increased, but we do feel that we need to eradicate rigidities in the economy that hinder job creation, in the light of this week's security for long-term employment, as statistics do not indicate how many have short- term contracts for employment. The MF believes that we need to intensify labour absorption and take another look at employment equity.
The 2010 Soccer World Cup remains high on the agenda and while a great many are criticizing the Budget allocated for this auspicious event, the MF acknowledges that the money is being utilized in areas such as transport, stadium development and public works that will, in the long term, be to our benefit.
In view of the global trend, we express our concern that, despite increased global risk and slowing international demand, South Africa is set to consistently grow at 5% per annum. We would like to know how sure we can be of this and, in the event that this does not work out as planned, what we propose to do about it.
It is not that the local and provincial government allocation has been substantially adjusted. In this respect we are pleased, as this means that delivery may increase. However, we also have to acknowledge that many municipalities do not have the capacity to achieve this delivery. If we are to effectively reach our targets then we need to address the issue of gaps and incapacities as soon as possible.
Furthermore, many departments are experiencing under-spending as a result of similar circumstances, namely vacant posts. These posts need to be filled with immediate effect. This is seriously hindering our progress. In fact, all aspects contributing to under-spending need to be targeted.
In terms of education, the MF is pleased about the allocations made to school buildings and the nutrition programme. We reiterate that we wish the nutrition programme to be extended to secondary schools and that it should be secure and that all no-fee schools should be beneficiaries of the nutrition programme.
Furthermore, looking at the government's financial contributions to private- owned companies such as SAA, these need to be reviewed, especially if they do not show any financial growth in their own capacities. The MF supports the Medium-Term Budget Policy Statement. I thank you [Time expired.] [Applause.]