Hon Chairperson and hon Minister, the Minister of Higher Education stated that South Africa's banks were sitting on a time bomb about to explode, as in the subprime crisis. This begs the question: Do we really have a firm financial basis for economic development in South Africa? How can Minister Gigaba say that government is talking with one voice on business and investment? We believe that there is clearly no cohesion.
Since no one in government has contradicted the Minister of Higher Education in his mega claim, why should anyone invest in our country when the whole financial system is about to blow up, according to the Minister?
When Mr Reuel Khoza gave his critical analysis of government, he was savagely attacked. Instead of making a virtue of criticism and welcoming his criticism as an affirmation of our democracy and the triumph of our Constitution, our leaders lost the plot.
What was needed from government was a clear and unambiguous declaration that it will always uphold the Constitution and faithfully and implicitly abide by the rule of law. That never happened and a golden opportunity was missed. The real point of the criticism went unanswered and in its place the country witnessed hot-headed tantrums on the side of government. Government ridiculed the man, but remained silent on the salient point he made. Its silence was deafening.
With investors and bankers now quaking in their boots rather than feeling confident, government undermined both the Constitution and economic development. The right of open criticism of the economy at present is accorded only to other members of the tripartite alliance. The Minister of Higher Education can freely shake the economy to its very foundation by making a mind-blowing prediction when he puts on his SACP cap. Others, like Reuel Khoza, who voiced valid criticism become the "ideological third force" that supposedly fears black rule. This is delusional thinking on the part of the Minister, who is clearly living in a time warp.
All stakeholders in our democracy, business included, have the constitutional right to criticise any deviation from the Constitution and the rule of law. That is what constitutional democracy is about. Is it any wonder that South African corporate companies have deposits that exceed R520 billion at present? Business never misses an opportunity and there are many opportunities in South Africa that are going begging. What, then, is the reason for this mountain of cash remaining uninvested in the real economy? Clearly it is a lack of clarity in policy, philosophy and predictability that is unnerving investors.
The department's strategic plan to transform the economy therefore has to begin with a clear declaration by government to defend our democratic gains and to faithfully uphold the Constitution. The freedom of speech must therefore be implicit. To achieve a pro-employment growth path that addresses the structural constrains will require a restoration of belief in the government.
Firstly, the government's policy of engagement must arise from mutuality. It must not be one-sided and it should truly create space for a balanced engagement. This is fundamental. The growth path also has to be the constitutional path.
The second problem also stems from a serious failure of government. Deputy President Kgalema Motlanthe identified this on Friday, 13 April, when he stressed that more needed to be done faster by addressing capacity constraints in the state and promoting wider partnerships in society and improving co-ordination.
The third problem, similarly, is one that can also be put at the door of government. At the infrastructure conference held on 13 April, Minister Patel raised the recurring problem of resolving regulation and administrative bottlenecks. He suggested that uniform standards be introduced and a comprehensive business plan be put in place and that procurement should result in economies of scale being realised. We agree with the Minister on this.
Minister Nkwinti concedes that a lack of money is not the real problem in South Africa, but rather that an institutional problem is the real problem. Minister Fikile Mbalula likewise hit the nail on the head when he asserted that the sins of incumbency had now become a serious problem in the ranks of the government.
These are objective criticisms coming from government and not from any imaginary "ideological third force". Therefore, the observation by Mr Khoza, that our political leadership's moral quotient is degenerating and that we are fast losing the checks and balances that are necessary to prevent a recurrence of the past, is a criticism that no aggression of government will ever silence.
The key to economic development is to revitalise the railway system to connect South Africa's rural areas and to give impetus to our agricultural output. In India the second-largest expenditure of the state, after defence, is on the railways. The rail system in that country continues to expand and with it the economy grows.
The e-tolling saga demonstrates quite clearly the need for an affordable rail transport system to ferry workers and carry goods. This will stimulate economic development.
Education in our country is in a crisis and the standards have fallen. Canada and Australia, among others, have had virtual education for decades. South Africa, unbelievably, has no policy on virtual education. This should be prioritised.
The inflexibility of labour laws is another matter that needs to be resolved in a win-win manner. Rigidity means that employers are not recruiting and the jobless have no hope. With the impasse that prevails, government remains the main employer. It is also the only employer forced to remunerate above the inflation rate. This has been putting enormous pressure on the fiscus of government, of course.
South Africa's population cannot wait for structures systems and processes to be put into place, as the department is suggesting. It also cannot wait for the department to undertake research and analysis to determine the most appropriate growth path for economic development and decent work. We do not wish to be overtaken by a variation of the Arab Spring.
In conclusion, the challenge facing South Africa is a lack of cohesion. [Time expired.] Thank you. [Applause.]