Hon Speaker, Cabinet has not yet received final proposals on the implementation of the youth employment incentive. I am informed that both organised business and labour have made comments on the proposal and have raised several issues that require further discussion. The hon member would recall that the youth wage subsidy proposal was announced in the state of the nation address of 2010, whereas the Short- term Job Creation Commission was announced after the July 2011 Cabinet lekgotla.
The proposed youth wage subsidy is part of government's response to youth unemployment. The intention of the scheme is to create opportunities for the youth or first-time job seekers to gain entry into the labour market and work experience, which will improve their employability. The government was well aware at the time that it proposed the youth wage subsidy policy that it would have to be referred to Nedlac for discussions so that when it is implemented, all social partners will have been consulted and will have considered the socioeconomic impact of this policy as required by the National Economic Development and Labour Council Act, the constitutive Act of Nedlac. Once this legislative provision has been satisfied, and all social partners have participated and enriched the proposal, government will complete its processes and make the necessary announcements. I thank you for your attention.