You still need a conference. [Laughter.] This requires us to ensure the competitive pricing of key resource inputs to our downstream beneficiation activities, including measures to address import parity pricing. Industrialisation is rooted in investment in the productive sectors of the economy. Here, the New Growth Path and the Industrial Policy Action Plan provide important building blocks to achieve the objectives of the National Development Plan, the NDP. Within this policy framework, achieving industrialisation and shifting to the employment-creating growth trajectory is critical for achieving the vision of the NDP. The department has already spelt out how they are going to implement the vision of the NDP.
We are pleased that the Department of Public Enterprises is playing a central role in supporting these two pillars of infrastructure and industrialisation programmes. There are practical examples and demonstrations of this work to be found in the work of Transnet, which is one of the best managed SOCs in South Africa. The Minister referred to this and I will shortly do the same.
Transnet is the main repository of the specialised skills and expertise necessary to execute this mammoth infrastructure programme. The negotiations with the National Skills Fund to source additional funding to increase the number of learners in SOEs has led to R175 million being approved for Transnet to expand the level of artisan training over the next three years. So I can cite to this House the localisation and procurement initiatives critical for job creation that Transnet has embarked upon.
The extensive localisation drives of Transnet in the acquisition and construction of locomotives and train coaches has meant the revival of our train manufacturing capabilities and a direct contribution towards industrialisation in the country.
I want to talk briefly about SAA. Air transport to, from and within South Africa creates three distinct types of economic benefit. The first is its contribution to the gross domestic product, the second is jobs and the third is tax revenues generated by the sector and its supply chain.
The connections created between cities and markets represent an important infrastructure asset that generates benefits through enabling foreign direct investment, business clusters, specialisation and other spill-over impacts on an economy's productive capacity.
It is common cause that the working capital of the airline was depleted, presenting the immediate risk of the company not being able to meet its obligations. The deterioration of the debt equity position of the company required the intervention of the shareholder, the Minister, to stabilise the company. The turnaround strategy was submitted in April 2013 and is being evaluated. What is spoken about much less is that the airline has performed satisfactorily in the regional and domestic markets. Not once during this period has SAA been grounded. [Applause.] The national carrier plays a critical role in that it is responsible for a significant share of international and regional arrivals to South Africa. That is why it must remain a national carrier and will do so. [Applause.] In addition to this, it plays a significant role in the current airlift of Southern Africa and plays a critical connectivity role in the global economy.
The South African Express airline experienced its first major challenge in 2011-12. As the portfolio committee we have been dealing with South African Express for many years and this was the first time that they experienced such trouble. The ANC acknowledges that there were challenges when the misstated financial statements for 2010-11 were withdrawn. They were with us two weeks ago and we will recall them in the third quarter for the next set of financial statements, which will also be a disclaimer. We will again work with them to see how we can assist in turning it around.
The economic downturn affected the airline's planned fleet replacement programme. In terms of achievements, South African Express commenced a cost- cutting exercise towards the end of the 2011-12 financial year to reverse the losses. The airline achieved savings of R129 million by the end of March 2013 from the cost-containment exercise. At least they are doing something. [Interjections.]
Over the medium term, focus will be placed ... [Interjections.] ... on establishing Durban as a regional hub. [Interjections.]
I want to conclude. The role of SOCs is to underpin the role of the state in directing national economic development through the mobilisation of domestic and foreign capital and other social capital formations or partnerships to achieve stated economic and developmental goals. SOCs are powerful instruments for economic transformation and should remain firmly in the hands and control of the state in order to respond effectively to the developmental goals of the ANC government. [Applause.]
ANC policy on SOCs seeks to advance the key objectives of economic transformation and the ANC programme of the New Growth Path, NGP. The overall objective and mandate of SOCs is therefore to advance the socioeconomic and political agenda of a developmental state, to promote social cohesion, the creation of decent jobs and the development of skills and training opportunities. In this regard the vision of the National Development Plan plays a central role. The ANC proudly supports the Budget Vote on Public Enterprises. [Applause.]