Hon Chairperson, hon Minister, Rob Davies, and the hon Deputy Ministers, Elizabeth Thabethe and Thandi Tobias-Pokolo, firstly, let me on behalf of the committee and the NCOP welcome the Director-General, DG, Mr Lionel October, and thank him for hitting the ground running. Secondly, I want to state that the committee supports this Budget Vote.
In his State of the Nation Address President Jacob Zuma declared that the creation of decent work was at the centre of government's economic policies, and that government's objective was to create a country where millions more South Africans had decent employment opportunities. In addition, he went on to say that government had to ensure the development of modern infrastructure which would help facilitate a vibrant economy and directly impact upon a higher quality of life for all. Chairperson, job creation is an outcome of the collective efforts of state intervention, business investments and a thriving economy, as well as sound regulatory empowerment.
The New Growth Path has as one of its core objectives the mobilisation of the public and private sectors to meet the goal of creating five million jobs over the next decade. Sustainable growth depends greatly upon improving industrial and trade performance, and the strengthening of those critical sectors in which South Africa has the competitive advantage and potential to corner riches in the global market.
The ANC has committed itself to transforming the country's economy so as to achieve its social transformation goals of building a national democratic society whose character will reflect a united, nonracial, nonsexist, democratic and prosperous society, to the extent that the President declared 2011 the year of economic transformation.
Also, note that even the Youth League of the ANC has said: "Economic transformation in our lifetime". The President has said that there must be economic transformation in 2011. Clearly, trade and industry policy reform forms part of the crucial element of intervening decisively in the economy. In this context the Department of Trade and Industry's policies and programmes align themselves with the policies, strategies and programme priorities of the ANC.
Successive policy positions of the ANC have guided the mission and goals of the Department of Trade and Industry, DTI. These, in broad terms, are related to the Freedom Charter's call that, and I quote:
All other industry and trade shall be controlled to assist the wellbeing of the people;
All people shall have equal rights to trade where they choose, to manufacture and to enter all trades, crafts and professions.
This approach ensures that the directive to Trade and Industry is that it must ensure that it acts as a catalyst for economic transformation and development, and provides a predictable, competitive, equitable and socially responsible environment for investment. This will contribute to achieving the government's vision of an adaptive and restructured economy, characterised by accelerated economic growth, employment creation and greater equity by 2014.
The main thrust and focus must therefore be on increased investment levels, increased labour absorption and competitiveness, and broader participation in the economy.
The budget allocation to the various programmes showed the level of priority against the overall government priority in terms of policy direction.
The administration programme provides strategic leadership for the department and its agencies to ensure the successful implementation of its policies through sustainable integrated resource allocation. It also provides support to the DTI with respect to finance resource allocation and management.
The department has an establishment of 1 395 posts, all of which are funded, and 104 are additional to the approved establishment. The number of posts filled increased from 890 in 2007-08, to 1 129 in 2010-11, and is expected to grow to 1 320 over the medium term.
There are 266 vacancies in the department, 86 of which are below middle management, 88 at middle management level, and 94 at senior management level. Most of the vacancies are in the International Trade and Economic Development Programmes, and remain vacant because terminations have exceeded appointments. Promotions in the department and the creation of some new positions have also contributed to this.
However, on behalf of the committee I would like to thank the Chief executive officer, CEO, because the last time we met, we gave her an ultimatum and deadline regarding the filling of posts. Those strategic posts which were supposed to be filled by June were filled before June. So, we say: Thank you very much for that!
The department indicated its intention to decrease its staff vacancy rate to below 10% and to reduce the staff turnover rate to 9%, while interviews to fill senior management positions would be completed by now.
Again let me quote President Jacob Zuma, who said:
The creation of decent work is at the centre of economic policies.
We urge every sector and every business entity ... to focus on job creation.
Chairperson, the International Trade and Economic Development Programme provides leadership regarding South Africa's trade policy to promote economic development. It further aims to build an equitable multilateral trading system that facilitates development and strengthens trade and investments made with key economies. In particular, it seeks to foster African development through regional and continental integration, and development aligned to the objectives of the New Partnership for Africa's Development. The recent meeting of regional leaders, as the Minister hinted regarding free trade, is proof of that.
In broad terms, the development and implementation of trade policy requires ongoing efforts to shape the terms and conditions of South Africa's continued integration into the global economy in a manner that supports South Africa's national economic and industrial developmental objectives.
The International Trade and Economic Development Programme contributes to creating the conditions that enhance the export of higher value-added products so that we close the deficit that we have, especially regarding exports between countries like China and us; promote inward and outward investment; and preserve the space to implement national development policies. It broadens and strengthens national consultative mechanisms, both within government and between government and its stakeholders.
The other issue is South Africa's involvement in Brics. "Brics" is an abbreviation of the countries mentioned, which are Brazil, Russia, India, China and recently South Africa. South Africa's economic outlook is linked to global performance, and if South African industry and exports are to grow more rapidly, skills development, technology modernisation and effective logistics investments are necessary building blocks of sectoral growth strategies.
A recovery in the global economy is well under way, driven by the strong growth in China, India and Brazil - hence South Africa's entry into Brics - and other emerging economies. South Africa's participation in Brics will give local firms expanded access to fastgrowing markets and investment opportunities, and strengthen beneficial trade links for the African continent.
Economic expansion in Africa has been robust and durable, with sub-Saharan Africa growing by a cumulative 74% since 2000. The primary opportunity facing South Africa is to advance the transition to an inclusive diversified economy by encouraging a virtuous cycle of savings and investments, economic participation and sustainable job creation, infrastructure development and skills upgrading.
On the issue of a strategy to fight crime and corruption, the department has developed a fraud prevention plan, the implementation of which assists in creating awareness and combating fraud and corruption. The National Anti- Corruption Hotline is promoted as part of the department's ongoing "Be silent no more" campaign. An ethical culture within the department is promoted through implementation of the ethics management framework. A newly established email-based ethics help desk will further assist to enhance the ethical culture in the department.
Chairperson, in drawing to a conclusion, we are reminded that the key aim of the Department of Trade and Industry is to lead and facilitate access to sustainable economic activity and employment for all South Africans through its understanding of the economy, its knowledge of economic opportunities and potential, and its anticipation of future economic trends.
I'm happy to report that one of the campaigns of the department, "Taking the DTI to the people", was taken to my constituency in March this year, an area that is very remote and where people have never even seen a Minister. So we urge the department to continue with these campaigns and go to the deep rural areas.
The spending focus over the MTEF period will be on publishing, printing and advertising the department's products and services.
Chairperson, it is clear that, assessed against the direction outlined in the 2011 State of the Nation Address, the New Growth Path and Outcome 12 set by Cabinet, the department's budget allocation is consistent, and its allocation should assist in speeding up the implementation of the government's priorities for this financial year. I thank you. [Applause.] The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs T V Tobias-Pokolo): Hon Chairperson, hon members, distinguished guests, ladies and gentlemen, I can assure you that I'm not going to take very long; my input is very short.
This budget debate takes place after a successful national congress of the Youth League of the ruling party, which was held at Gallagher Estate on Youth Day, 16 June. They met to celebrate the lives of the gallant fighters of the 1976 generation of youth. The members of the ANC Youth League held themselves in high esteem, portraying revolutionary morality, discipline and commitment to the Freedom Charter.
They committed themselves to bettering the lives of our people, and the 5 000 delegates involved committed themselves to being economic freedom fighters - to fighting poverty, unemployment and lack of access to basic skills, land, education and employment.
They rededicated themselves to re-energising their organisation, the ANC, and to realising the noble objectives of the Freedom Charter. They also acknowledged that whilst we attained political freedom in the 1994 breakthrough, much still needs to be achieved to attain economic freedom, as the black majority still live in squalor, with the means of production still being owned by a small white minority.
Therefore, in building an equal and just society, they saw a need not only to transfer political power to the majority, but also to transfer the mineral wealth of our country to the majority of our people, who were dispossessed by the colonial powers that invaded the African continent three centuries ago, driven by greed and hatred.
We have also had peaceful local government elections, in which the South African masses gave the ANC an overwhelming mandate to continue to lead the revolutionary struggle to emancipate our people.
The people of South Africa ...
... abanamona, abananzondo; bayayidumisa i-ANC. Halala, ANC, halala! [Kwaqhwatywa.] [... don't display jealousy, they do not hold grudges; they praise the ANC. Hail, ANC, hail! [Applause.]]
We therefore promise these voters that, as usual, we will not disappoint them, but we will continue to deliver goods and services, as we have been doing since 1994.
Given the above mandate, we have also observed foreign liberal tendencies, where internal democratic processes when engaging with regard to differences are not explored to the fullest, as anarchists and alarmists resort to violent behaviour. Our organisation will not tolerate this behaviour. The destruction of organisational property is a criminal offence and action to deal with this will be taken against those who commit this crime.
The ANC was also not taken by surprise by those who wanted to claim Madiba. We all know that Madiba is a freedom fighter who fought for the liberation of the oppressed majority. Therefore, no amount of ridicule of our government by the DA, trying to portray the black administration as corrupt, lacking in capacity and having unequal distribution, will demoralise us in implementing our agenda.
Indeed, the ANC government has achieved a lot since 1994. The world respects South Africa because of the ANC. The world respects South Africa because of the changes brought about by the ANC. Today we belong to Brics because of the efforts of the ANC. Our GDP has grown because of this government. But we are still labelled as corrupt! Today we have free basic education. How many houses has the DA built in this country? And where? How many schools, clinics and roads have they built? How many jobs have they created? Where? In Mitchells Plain, in Khayelitsha, in Hamburg? [Interjections.] [Laughter.] I guess not.
What cars do Athol Trollip and Helen Zille drive? They want us to walk to our constituencies, as they never do any constituency work, except to parade black people during elections. [Interjections.]
Let me follow on the report that our Minister has already presented to you.