Madam Chairperson, His Excellency Mr President, His Excellency Mr Deputy President, hon members, colleagues and compatriots, I have not come here to address a rally or to speak to you from the ghetto. [Laughter.] I have come here to address fellow South Africans on The Presidency's budget, a matter of grave importance. [Applause.] President Zuma has put decent work at the centre of South Africa's economy. The antithesis of decent work is the current situation where workers are generally selling their labour and becoming steadily impoverished. As President Zuma said in January, our national vision and nation-building project is creating jobs and meaningful economic transformation. Yes, fellow South Africans - because, indeed, we are all fellow South Africans - at Polokwane, we reiterated our commitment to a caring society ethos of ubuntu; of taking care of each other. Indeed, this is what Mama Sisulu's whole life exemplified.
We need to go beyond the spiritual and pursue the socioeconomic wellbeing of individuals and communities and enable all our people to enjoy a sustainable livelihood. Surely, the caring face of capitalism can at this point intersect with government's policy, planning and implementation.
Unfortunately, the agreements by business at the 2003 Growth and Development Summit to commit 5% of accumulated profits to job creation remain a paper commitment. However, we can, I believe, act in concert and put our country and all our people first. The danger of not pursuing this approach is the development of instability, not stability, and the loss of our sound and credible credit rating. In fact, it could even jeopardise our contribution to regional integration, which can strengthen and is busy strengthening our economic development through trade within Africa and beyond, as indeed our recent agreements reflect through Southern African Development Communities, SADC, Comesa and Ecosa.
Minister of Finance Pravin Gordhan recently announced the launch of a R9 billion Jobs Fund to create 150 000 jobs in three years, as part of government's New Growth Path, NGP. R2 billion will be spent this year. This is a concrete measure to address what Stats SA has told us is a 25% unemployment rate. Once again, this offers corporate captains an opportunity to concretise their commitment from their accumulated profits. Again, Minister Gordhan reiterated President Zuma's position by saying, "... job creation is not just government's responsibility, but it is a challenge that must be embraced by the public and private sectors". This will complement the R20 billion in tax breaks to promote investments, expansions and upgrades in the manufacturing sector.
The Industrial Development Corporation, IDC, has now committed itself to invest an additional R102 billion in industrial projects. What is this? For just a little taste of these projects, let me tell you: R22 billion to mining and beneficiation; R20,8 billion to manufacturing; R7,7 billion to agriculture - and I mean agriculture 2011-2012; R14,8 billion to tourism and services; R2,5 billion to funding for distressed firms; and R22,4 billion to green industries - our pursuit of reducing carbon emissions. [Applause.]
Here are a few examples: the R25 million working capital for a uniquely South African branded fruit marketed internationally, with an opportunity to partner in land reform projects in Limpopo. This funding will retain nearly 4 000 jobs. The company was launched in the late 1990s, but it has been enabled now, in the face of economic pressures, to retain and increase its workforce.
In KwaZulu-Natal, the IDC provided funding to set up the establishment of a plant to produce aluminium and zinc-coated sheet steel, as well as other coated steel products. The total funding approved so far is R367 million. The project will create 160 permanent jobs. But the important issue here is that the local market is currently dominated by one player and the establishment of this plant will assist in introducing competition into this industry and drive prices down.
In its first approval for the roll-out of low-pressure water heaters, the IDC approved a total of R142 million for the installation of solar geysers and the like. I could go on and on and about the projects being funded as part of creating jobs. And I know all of you, even on the left side of the House, agree that we need it, we must do it and let's see it. Overall, many jobs would be created.
But what is at the heart of all this? What enables this to be concretised, to become a reality and not just a dream? It is the powerful triple fusion of policy, planning and implementation. That is what is driving our developmental state to create employment. The public and private sector, backed by our people, have got an unbeatable weapon against poverty and an instrument that will stem the haemorrhaging of jobs and build a long-term platform for a vibrant, robust and restructured society.
The 12 outcomes of The Presidency can for the first time be effectively monitored by The Presidency through the evaluation of the achievements in the respective Ministries of the targeted performance outputs and policy outcomes. For years, Parliament has been demanding this kind of oversight by The Presidency and now we have got it. [Applause.]
Decent work and the New Growth Path calls for state intervention to lower the cost of working and production. Don't tell me there is anyone here who wants to see an increase in production costs. No one does. We want to see this happening through an expansionary rather than a tight fiscal policy, regulation and public ownership of strategic sectors. It is imperative that state intervention should ensure an employment-led growth path in which redistribution goes hand in hand with economic expansion, rather than what has been prevailing.
Indeed, we want a nation in which equity is being implemented back to back with inclusive economic growth, using procurement effectively as an instrument, as was the intention with the Preferential Procurement Policy Framework Act. We have a constitutional people's democracy, supported by a nonracial and nonsexist policy, laws and practices. Yes, we have achieved political freedom, but we have not yet achieved economic freedom. We must, as a nation, as a developmental state, as a people's democracy, work more urgently and collectively to achieve this. The President and his Cabinet are implementing this vision - I keep on telling you - in the 12 targeted, planned outcomes.
I believe the government is ensuring that the New Growth Path succeeds by using fiscal and monetary instruments strategically. Indeed, the Freedom Charter, that most inclusive charter in South Africa, in our society, embraces this coherence between the macro and micro fundamentals within a framework that is informed by our humanity.
The New Growth Path vision of 5 million jobs by 2020 is achievable. It is achievable, though, only if we all work together - public and private sector and civil society. [Applause.] The checks and balances built in for accountability inherent in the performance agreements are undergoing a rigorous and regular monitoring process within The Presidency.
And as I see my time marching on because it waits for no one, of course, let me simply say the most important things here: We also recognise - and The Presidency has acknowledged - the value of skills, especially strategic skills, and that is what is one of the major outputs of the 12 outputs that he and The Presidency as a whole have there. We know that all of this informs and drives decent work. This approach will fill the vacuum created by retrenchments, etc. A jobless family means a hungry family and breadwinners robbed of their dignity. We cannot have that and we won't have that because we are committed as a caring government to overcome that.
In conclusion, the ANC-led government acknowledges the challenge we face in the local government sphere. We don't only want competent local governments and municipalities; we also want a caring local government. We want councillors who walk the streets. [Applause.] People's outputs and outcomes will be achieved. You, the people of South Africa, are the anvil of this, and I know we can do this together. The ANC supports this Budget Vote. [Time expired.] [Applause.]