Hon Chairperson, hon members, colleagues, compatriots, and ladies and gentlemen, the Department of Trade and Industry budget is driven by its commitment to employment through an enabling environment, an environment underpinned by strategic trade and an expanding footprint in Africa.
Fighting against the headwinds of a continuing European economic crisis, the DTI's budget of R9,6 billion is geared to driving industrialisation and broadening economic participation underpinned by trade. These objectives are supported by technical infrastructure, such as standards and quality assurance which our fellow African states are commending, as we are also transferring some of our skills and sharing experience with them.
This budget is built upon a strategic plan of realistic output-based action, and is closely aligned with the ANC-led government's vision. Consequently, Budget Vote No 36 - Trade and Industry - is expected to achieve its outcome of restructuring the economy and creating this enabling environment specifically for the private sector to create employment. [Interjections.]
Yes, this is a realistic, robust and results-based budget. It is a budget for a developmental state, a state that through a series of interventions, such as incentives, infrastructure building, strategic tariff adjustments, beneficiation and strategic skilling, is turning South Africa into the economic engine of Africa.
Through its flagship mandate in the Industrial Policy Action Plan, which has been covered by our Whip, hon Radebe, we have this budget aligned to the National Development Plan, NDP - it is not out of sync - and its primary pillar is the New Growth Path. The DTI, in this budget with all the financial constraints that it faces, has brought about allocated efficiency and established an expenditure platform for an equitable service delivery budget.
I am sure you can see from the committee's report that this budget reflects its commitment to industrialisation. Sir, 75% of this budget is earmarked for industrialisation. Industrial Development: Incentive Administration gets 58%. Industrial Development: Policy Development gets 17%. Broadening Participation, which the hon Mabasa will spell out to us all, and which includes SMMEs and regional development, gets 10%. Trade does require more funding, and the items Trade and Investment South Africa, and International Trade and Economic Development get 5%. Also you, the people of South Africa, the consumers, have not been forgotten - you are fully funded in this budget, and we have also recommended a review upwards. The integrated budget ensures that technical infrastructure no longer lies below the radar screen.
As I said earlier on, we have not gone through the economic crisis, which was introduced, of course, by America and Europe. We are still there, but we are working very hard on this.
How do we support industry? How do we work in partnership with the private sector without allowing them to try a move between the cracks, as they so often do? Well, I will tell you how. What we have done is to look at incentives backed by serious conditionalities in this regard.
For example, the grant disbursement incentive is not just a freebie. It is given only on the completion of each activity, such as plant and equipment, or upgraded or new production lines. The Manufacturing Competitiveness Enhancement Programme, MCEP, which was launched last year, 2012, is also making a significant contribution in this regard. Of course, as we are aware, in the motor industry the Automotive Investment Scheme, AIS, continues to be a robust contributor to our GDP.
With all of this, we should not forget that these funds don't lie in a bank vault of the Department of Trade and Industry. They are handed out strategically with conditionalities, 92% making up the transfers.
Regarding the clothing and textiles production incentive, you will recall that in 2009 the clothing and textile industry was in total collapse, and that was right here in the Western Cape. I am not too sure what people were doing down here! [Laughter.] The fact that we are not a federal state is why we, from our other provinces, from this pool of funds ... [Interjections] ... were able to actually ask: What we can do to help because, after all, we are all South Africans? That is the main thing here. [Applause.] What did we do with this incentive that is administered by the Independent Development Corporation, IDC, which falls under the mandate of Minister Patel? I saw him somewhere, and I see the Deputy Minister here. There is R758 million just for clothing and textiles.
There is a contribution to research, for the National Metrology Institute because, of course, we know how important that is. The hon Gcwabaza will tell us all about technical infrastructure. Then there is the National Cleaner Production Centre, NCPC, administered by the Council for Scientific and Industrial Research, CSIR, because we are well aware that research and development is a Cinderella area and we are resuscitating her from the fire. There is also the SA National Accreditation System, which hon Gcwabaza again will speak to, and this is absolutely no fairy tale if you have been to the CSIR, which I doubt.
We welcome the DTI's marketing its programmes, incentives and support. Where? They are not simply in Gauteng, but in the rural areas, and not using people like me, but using the Congress of Traditional Leaders of South Africa, Contralesa. They are in partnership with Contralesa, a recognition of the significant role that our traditional institutions play.
Concrete support for the youth feeds into the Youth Enterprise Development Strategy.
Then there are women. Of course, Minister Davies is now ensuring that the face of our boards reflects a softer outlook. You will see the female component highly reflected there. Women are recognised as a critical resource agent. They can transform boards and inject fresh thinking into value-added production, ranging from agro-industries and manufacturing to arts, crafts and research. We heard the Minister talking about films just now, and our support for that. The Technology and Human Resources for Industry Programme, Thrip, complements the department's commitment to human capital.
Let us turn to trade. All of us heard the Minister of Finance saying what the impact has been of the decline in American and European demand, not just for South African goods, but for goods across the world, and that in South Africa's case this has linked up with the imbalance between exports at 1,1% and imports at 7,6%. This imbalance has had a negative impact on the current account of the balance of payments. All that means is that the current account is on one side of this huge balance sheet. That's what it means.
What is it that needs to be done? We can no longer pursue a consumer-driven economy. We are, as this ANC government has been saying for some time now, committed to a productive economy, because it is only through a productive economy that we will redress the current account. [Interjections.]