Hon Chairperson, hon members and our distinguished guests, today I'm going to speak about the role of the state in economic transformation. The state is the structure whose responsibility it is to nurture our being as South Africans and our adopted brothers and sisters from all corners of the continent and other countries.
Transformation must be understood as a process of restructuring. Before 1994, the socioeconomic structure and conditions were broken into small, shabby and unpleasant pieces and the ANC-led government, in all humility, put together the pieces and gave them a better shape, which is pleasant to look at. Here is one example of something good and pleasant to look at: As we speak, we have in our midst Miss Fikile Zikhali, who is the marketing manager of Ujima Bakwena workers, a co-operative that manufactures shoes - not just shoes, but shoes of quality, as we have seen on those who are wearing them today. [Applause.]
This co-operative was funded by the Department of Economic Development. This government walks the talk. Ms Zikhali is not the only one. The list is endless. This co-operative has employed about 100 people and plans to add 50 more workers in the near future. Government has created a conducive environment for economic transformation by creating policies such as preferential procurement and the above is one of the outcomes thereof.
My humble appeal goes to all those who ridicule this ANC-led government, saying it moves at a snail's pace. The reality is that the government, which is only 18 years old, is cleaning a mess that is over 50 years old and, as you calculate the years, add "resistance" in capital letters. Hypocrites shout for change while they put obstacles in your way, thus inhibiting your movements. These are the people who get fed up when we talk about the past so that others can understand the challenges faced by government in transformation processes, economic transformation in particular.
Member Hoosen, we need your support. Criticise but also contribute to change the past of your party.
Re a tseba hore mmuso wa kgethollo le kgatello o busitse ho feta dilemo tse lekgolo, jwale ba shebelletse hore mmuso wa rona o lokise mamphemphe le manyala ka ho panya ha leihlo. Baheso, re a iponela hore leha mmuso o leka ba etsa kahohlehohle ho sitisa puso. (Translation of Sesotho paragraph follows.)
[We know that racist and oppressive governments ruled for hundreds of years, yet they expect government to fix the mess and malfeasance in the blink of an eye. Good people, we can all see that even though the government is trying, they are trying by all means to interfere with the government].
Mr Hoosen, separate development was the order of the day during your reign. If you don't want us to remind you of how you embraced discrimination, do away with it and address challenges genuinely as a born - again South African. This government doesn't hold grudges, hence its inclusiveness - one nation, one Constitution and the Bill of Rights protecting all the citizens.
The government has created development finance institutions, state-owned enterprises to support small, medium and micro enterprises, and mentors them for efficiency. We have the Industrial Development Corporation, Khula and Samaf, who have just merged to amplify capacity for the benefit of SMMEs. The state must ensure that officials deployed to manage SOEs and DFIs have the required attitude to implement their mandate as far as economic development is concerned a change of attitude, Mr Hoosen. We also have the New Growth Path, Industrial Action Plan and, now recently, the Presidential Infrastructure Co-ordination Commission to accelerate economic development processes and job creation.
Mr Hoosen, the green economy carries the dual role of decreasing the carbon emissions of economic activity, which in turn improves the quality of life in the communities, thus availing to the industries a healthy workforce. The role of the state is also to ensure that the private sector participates and contributes to economic development. The promotion of social dialogue is another crucial area of economic transformation.
Progress is not as anticipated because of the greedy groups and individuals who abuse every opportunity for the previously disadvantaged through fronting. We read from time to time in the media about bosses who let their workers sign forms as directors of companies they know nothing about. We know who those people are.
Development finance institutions and SOEs and other structures, such as Brics-Ibsa, exist as a result of economic policies that created a conducive environment for all interested parties to participate in. Not very long ago, in 2008, manufacturing industries were affected by the economic recession. This economic situation called for retrenchment and, obviously, increases poverty levels. It is through state intervention that jobs were saved. The government bailed out industries and contributed to the further training of workers, thus increasing the number of skilled workers.
As we sing songs of praise in appreciation of socioeconomic development post 1994, we must also talk about corruption as a threat to development. You are right, Mr Mubu, we need to increase our capacity regarding risk management and enforce compliance on accountability. We need tight control measures to sustain our investment. Constant and effective oversight reduces fruitless expenditure because economic threats are identified on time.
In addition to fronting, we have companies colluding with one another and monopolising certain industries. This practice burdens poor consumers, because they are the ones to pay the ultimate price. The state intervenes through the Competition Commission, thus protecting the public. We are proud of this entity.
What is development without land? State intervention has met with the highest level of resistance in this area from those who dispossessed land from the indigenous people of South Africa. The willing-buyer, unwilling- seller principle does not yield results.
I am trying to skip to other information before my time is up. The Freedom Charter is clear on people-centred and people-driven transformation. We are therefore all equally responsible for making South Africa a country of choice, regardless of our political affiliation. As a people-centred government, no matter how much people try to resist change, we shall always embrace those who have seen the light. Yes, we acknowledge that change is pain, but be careful not to be forgotten by history and to become a billabong. A billabong is a branch of a river that comes to a dead end. I quote from one of the ANC documents on economic transformation:
An important part of our vision is to build an economy in which the state, private capital, corporative and other forms of social ownership complements each other in an integrated way to eliminate poverty and to force economic growth. In order to simultaneously grow and transform the economy, we require an effective, democratic and developmental state that is able to lead in the definition of a common national agenda, mobilise society to take part in the implementation of that agenda and direct resources towards realising these objectives.
This is the role of the state in economic transformation. A number of accords were signed as state interventions to transform the economy. In these accords, graduates with no working experience will be absorbed as interns, that is learnerships, which entails further training. The local procurement accord will promote Proudly South African, thus promoting local business, because charity begins at home. Member Singh, this also goes for young people who are unemployed. The booklet on the skills accord shows the improvement in co-ordination.
Mr Hoosen, you have missed valuable information on how the accords have brought change in employment through skills development. If you can improve your attendance of meetings, you will be amazed by the wealth of information provided by the department. [Interjections.] You must also ask yourself why the majority continues to vote for the ANC. Your ignorance does not befit your age. [Laughter.]
Mr Alberts, unions are there to ensure that workers are paid a living wage by a company. I am not sure if you are aware that workers are the makers of this economy, which made you and me what we are today and also what made South Africa what it is today. I am one of the people who support the slogan, "Workers of the world, unite! You have nothing to lose but your chains." [Applause.]
Mr Mubu, if you can read the ANC documents on strategy and tractics, you will realise that the ANC has all the strategies to defuse the time bomb. It is the reason that it can celebrate 100 years of existence. When the ANC sneezes, South Africa catches a cold. [Applause.]
The small, medium and micro enterprises contributed to economic growth. A member has referred to this, so I will rush through it because of a lack of time.
As we sing songs of praise and appreciation, we also have to deal with corruption. Constant and effective oversight reduces fruitless expenditure because economic stress is identified in time. The President said in the state of the nation address that the process was slow and tedious, and we know of deliberate efforts by some people to make sure that we move very slowly. Then they go to the papers and make statements that are uninformed.
Products of Bantu education, like me, will remember the book that we used to read, A Midsummer Night's Dream.
Toro ya bosiu bo boholo hlabula ... [A Midsummer Night's Dream.] When people dream of governing South Africa in 2014 or 2019, maybe the resistance to giving back the land to the rightful owners is a strategy to buy time in the hope that, come 2014, the restitution of land will be history. How can you govern the country when things fall apart in the one province that you are in control of? I won't go into the details of the fragmentation in the Western Cape, but I will do so another time. Be cautioned, the people's patience is getting thinner and thinner.
Ma-Afrika, a re tloheleng ho lwantshana, re tshwaraneng ka matsoho hore lefatshe le utswitsweng le kgutlele ho beng ba lona. [Africans, let's stop fighting one another and work together so that the land stolen from us is returned to its rightful owners.]
The divide-and-rule strategy, which was used effectively by the apartheid regime, seems to be back in full force and in a new cycle. The state must ensure that the budget is utilised prudently and for what it is intended. [Time expired.] [Applause.] Thank you.