Hon Chairperson, hon MECs present here, chairperson of the select committee, hon members, we have just emerged from a global financial crisis which has reversed a number of the gains we had made over a decade, cutting down the jobs we created over that period by almost 50%.
On 25 October 2010, the South African government adopted the New Growth Path. Among other things, this is to use the infrastructure deficit to anchor the development of our economy and the creation of jobs. I normally quote the statistics I have seen from reputable consultants which suggest that, if our economy grows by 4,5% over the next 15 years - which is basically an achievable figure - we have to invest about a trillion rand in roads, ports and rail. In itself, rolling that infrastructure out is also part of job creation.
The challenges of putting together an additional 50 000 megawatts in our economy over the next 20 years could be a potential job creation exercise if we manage it correctly. The risks aside, that is what we should be looking at. The key aspect, which I concede from Mr Winde, is to create the regulatory framework and transparency in relation to that.
Therefore, the contribution of the Economic Development department, through the New Growth Path, is to make sure that we can achieve the twin objectives of increasing employment and greater equity in our society. I think what Minister Patel was trying to set out is what the strategy is in order to achieve those twin objectives. What is the broad framework? What is the arsenal of instruments we are trying to deploy to achieve those objectives which, I think, he has outlined fairly eloquently?
A promising note is that we achieved 4,8% growth in the first quarter of this year. Clearly, we demonstrated that our economy is rebounding, which is quite an important exercise. I think the New Growth Path is trying to steer this economy in the right direction, because it is asking what the best labour-absorbing sectors are. Which are the sectors where we are likely to generate more jobs? For your interest, hon members, for 25 years from 1970 to 1995, this economy created zero jobs for Africans.
The reasons are clear. There was a decline from more than 2 million farm workers in agriculture to about 930 000. We also saw a decline in mining from about 630 000 to about 223 000 jobs. Clearly, if you turn the question around and ask what kind of workers were losing jobs, they were the unskilled workers.
So, that is a challenge we are trying to grapple with in this economy. Having been given the profile of the unemployed, I think we are beginning to look at those sectors that are likely to ensure we can generate jobs, wipe out unemployment and achieve the broader objectives set out in the New Growth Path.
The one aspect which is really going to be critical, moving forward, is support for small and medium enterprises, particularly access to finance. I think our approach is twofold. It is one that asks how to use the existing institutions within our stable to make sure they can contribute to that, but also how to organise across government in such a manner that we can maximise the impact. That is going to be critical, moving forward.
Part of what the Minister has referred to is to achieve this effectiveness by combining some of the institutions that are dealing with small and medium enterprises. However, as we discuss that, one of the issues we should not forget to address is the unequal geographic spread of our economy, and its spatial dimension.
It is going to be critical that that matter be attended to in a better way, because in some areas - particularly in the former homelands - you have a concentration of unemployed people combined with low levels of business activity. So, we are seized with that task and it is a major one we need to deal with.
One aspect I also want to deal with is the kind of dichotomy people tend to create between the New Growth Path and the Industrial Policy Action Plan, Ipap. We have not spelt out industrial policy in the New Growth Path precisely because Ipap is a component of what we are talking about as part of the New Growth Path. Part of what the hon member is saying draws a distinction between job creation and growth, as if these things are mutually exclusive.
When you talk about job creation, you are not necessarily talking about growth. We are talking about growing this economy and, in the process, in a manner which creates jobs. So, those should not be treated in isolation. It is in that spirit that we place long-term or long-running economic planning in the driving seat of growth.
When we work together with provinces, we want to create an infrastructure, both physical and nonphysical. We think Minmec is an important institution to achieve that objective. So, collaboration is going to be critical, moving forward.
One other issue I want to talk about is the ship repair industry. There are two problems which we need to address, and we need to work with the Western Cape government to do so. The first problem is that of the ownership structure, which creates confusion. Even the message you are sending out creates a whole lot of confusion. The equipment is owned by Transnet, but the people who operate it are from the private sector. Who will get that stake? It is a matter that we are seized with. We are discussing it with the unions. There are two different opinions from two different unions in this regard. It is a matter which is receiving attention.
The second problem you have is that there is no land available in Cape Town. For us to develop these structures, more land is needed. We have got to move most of the stuff to Saldanha. It is something that needs to be looked at in detail.
I think, hon members, what we need to do, between ourselves and provinces, is to move into action. Moving into action means prioritisation, it means identifying what I would call low-hanging fruit.
What are the areas in which you can achieve quick wins? What are the areas where you can make an impact quickly, particularly those areas where there is more labour absorption?
So, that is the kind of challenge that we think we should be dealing with amongst ourselves. We have a collective responsibility to deal with the scourge of unemployment, inequality and poverty. Achieving this objective requires coherence and proper co-ordination at leadership level. As the Department of Economic Development, we commit ourselves to working together with the provinces to achieve these objectives.
I concur with the hon Mahlangu that the road ahead is bright. The challenge for us is to achieve what the eminent Indian scholar Amartya Sen in his book Development as Freedom calls expanding the possibilities for our people. Thank you. [Applause.]