Hon Chairperson, hon members of this House, colleagues, compatriots, partners in our endeavours, people of South Africa, policy, politics and performance underpin strategic direction, delivery and effective implementation. The priority policy giving strategic direction to South Africa's budget is employment creation to concretise the government's commitment to substantively improving people's lives in our country.
The Trade and Industry budget quite rightly recognises that the industrialisation of South Africa is the key to unlock the potential of a developmental state. We have heard from many quarters, whether capitalist or liberal, that no country in the world has ever, ever, ever successfully reached an economic apex other than through industrialisation, whether it was the Phoenicians, the Greeks, the Romans, the British, the Germans and now China.
Only in this way is it possible to harness the potential of our greatest asset, our people, and productive investment collectively, and take advantage of the shift in the global economy from the developed North to the developing countries in the South. South Africa's membership with Brazil, Russia, India and China to form Brics will enable our country to grow our economy within the region and on the African continent.
Only in this way can we actually develop sufficient economies of scale to grow our market. No, we will not be dwarfed - which is one of the fears noted in the papers - because when we compare South Africa, as part of the African continent, with Brazil's 190 million people, Russia's 142 million, China's 1,3 billion and India's 1,2 billion, we will recall that Africa has 1 billion people and that we have all agreed in South Africa that we have to become part of the African continent.
The opportunity beckons. As the International Monetary Fund noted in a recent report, the developing countries will soon overtake the developed countries. The question is: Is the Department of Trade and Industry's budget ready? Is it able to take advantage of these opportunities? This is what the committee had to examine and what our ANC compatriots did. I believe, on further analysis, that it can and it does. We cannot look at a tsunami arising out of nowhere economically. We have to look at track records and at what we have. Of course one does believe that, particularly in the manufacturing sector, but being mindful of the budget and financing. I ask myself: What about allocative efficiency? Is this realistic in the department's budget to underpin the prioritised objectives, because it is essential but not sufficient? You also need realistic measures to evaluate the performance and a very, very tight linkage between what you strategically plan and how you allocate it. And yes, we have communicated this to the department in that we would like to see an improved or tighter linkage between the strategic plan and the budgetary allocations, so that indeed we can improve our own oversight.
Industry development requires not just plant construction, but also skills, innovation and technology, procurement and industrial financing, as well as developmental trade policies. I am happy to say that my ANC colleagues will deal with the others.
There is the National Industrial Participation Programme, Nipp, something our hon Mr Harris has often raised in the committee. But, quite frankly, our programme has been so hectic and rigorous that we have run out of time, other than inviting people to spend Family Day after Christmas doing it. So we will be getting a review on the guidelines of this, and then we will interrogate it intensely and come back to this House.
The Department of Trade and Industry has, however, vigorously embarked on addressing strategic skills with speed, for example the apprenticeships facilitated by tooling and foundry initiatives.
As a lead indicator of the performance of South Africa's economy, I think we would all agree that the automotive sector is a critical one. The DTI ensures that it gets an injection of R5,1 billion. Of course this includes the manufacture of components and an increasing list of value-adding goods. The Polo vehicle, which we all saw, has shifted from less than 30% locally produced products to more than 70%. This is just an example of where we can go in a few years.
Again, we have 2 500 workers, which will fill the number of projected jobs supported by the automotive investment scheme. The DTI's key interventions in industrial financing also include, for the creative, R1,5 billion for films. No, we are not Philistines when it comes to the arts, not at all. So, within a relatively short time, you will have increased labour absorption through 60 films.
Then there are business process services. This is projected to support 5 000 workers. This includes call centres. Yes, we may be snobby about call centres: "Oh, what about call centres? What are they going to do? What about sustainable employment?" But what they will achieve is a job on the spot, and then you can utilise your time after the shift to go and do training on something more strategic.
The tourism support programme is projected to support 5 600 jobs, and the manufacturing investment programme will support jobs for 8 400 workers. Those of you who say that this is a drop in the ocean, well then let's throw them all in the ocean - these jobs. [Applause.] And what will you get?
I believe that if unpacked there is no doubt that the DTI budget is going to achieve 43 000 jobs. It is a budget designed to accelerate manufacturing, business and strategic trade forged on a value-added industrial base.
Industrial development is further boosted by the R8 billion 12i Tax Incentive. The ANC government is not just talking; we are fuelling the industrialisation of South Africa and we will develop an employment environment that can and will support an exponentially expanded employment trajectory.
We have not forgotten exports. The export marketing and investment assistance incentives support 435 enterprises, while the sector-specific assistance scheme on emerging exporters supports 350 enterprises. The enterprise investment programme supports 260 tourism enterprises, and the industrial competitiveness and upgrading programme supports 220 enterprises. I have flagged but a few of these programmes just to give you a little taste.
Now, the SA Bureau of Standards, SABS, of course will produce all these goods and we won't be able to sell them. We used to refer to some of the goods from the East as some kind of junk, and look where they went to. Yes, we know that we have to improve our standards and ensure that while we are the gateway to Africa and goods are coming down, we are able to export them. But we are also lending assistance and supporting our brothers, and of course they are supporting us as well.
Without adding value to all our goods, South Africa runs the risk of economic dependency on its trading partners. However, I am confident, having had the benefit of an engagement with the Minister and his department, that we can and will change this pattern and shift the skewed economic structure from the previous jobless growth to a labour-absorbing economy.
Indeed, President Zuma, in the state of the nation address this year, mentioned the overarching framework of the New Growth Path. Also, the Industrial Policy Action Plan recently intensified its focus beyond traditional commodities to having a sharper focus on nontradable goods. And it can be expected to ensure that equity prevails throughout the SMME structure. No, we do not want to see elitism overtaking equity. So, yes, we are reviewing that legislation to tighten it up and link it more closely to the procurement protocols to ensure that the linkages that occurred before are prevented. So, let's not go back to that one.
Then, of course, we recognise that you can develop businesses, you can have the funds, but all of that is going to go into a hole unless organisations - entities like Seda - within the DTI do a legitimate day's work getting their hands dirty, as someone in the committee said, and go out there and be more proactive and check that, by the way, this is a good business, but we need to improve its management, its cash flow operations, etc.
The budget of R14 million reduces to R4 million in respect of, say, the Intellectual Property Laws Amendment Bill which is coming up and the companies commission, etc, which is due to become a reality any minute. We have adopted the companies legislation. We are simply awaiting ... In fact, it is not a question of awaiting; it will be signed off as soon as the infrastructure is there.
The question mark is the Intellectual Property Laws Amendment Bill, which the committee is still dealing with. It would be premature of me here now to speculate on what kind of budget we will be requiring when the committee is still deliberating on the matter.
However, the recently launched National Consumer Commission, we believe, requires a significant allocation because of its establishment costs and accelerated outreach campaigns, and to build awareness about rights and responsibilities in this regard. Now, all of this is covered: R14 million to start, reducing to R4 million. So, you may say, "Well, they are not going to achieve anything. Did you see that massive cut?" Of course, it costs more to establish anything. And then of course are we not aware that the three-year Medium-Term Expenditure Framework offers you an opportunity to review the budget allocations in that regard?
During the last three or four minutes of my speech, let me just look at the recommendations that the committee came up with in this regard. There was no doubt about it: We do need to track the reports that are coming up and so on. It is only through regular reporting that the committee will be able to exercise its oversight more robustly. I will mention a few examples: the agro industries; the KPAs - key performance areas - associated with the 2010-13 Ipap 2, which is on the table and coming up; the interdepartmental task team report on iron ore and steel; as well as interdepartmental co- ordination which can be a potential risk - how effective is this?
We are also looking for status reports on the developments on regional trade agreements, for example the Southern African Customs Union, the Southern African Development Community, etc; the skills development and multilateral institutions and trade missions; and BBBEE broad-based black economic empowerment which is designed to ensure not only economic development but also equity, and that it equalises the situation within the majority of our population. We have also looked and asked for costed operational plans of the National Consumer Commission as soon as they are prepared. Regarding the gambling commission report, we have not forgotten it, but we are not going to gamble away our time; we want a proper report. Then we will be able to look at it.
On the progress regarding the filling of vacant funded posts, no, we are not just letting that slide. We are going to keep sharp track of that to see that they are filled if they are funded, and so on. I just want to say, in the last minute I have here, that the committee itself as a group did work very, very effectively on this. Of course, there will always be differences as parties.
I want to remind you of the words of one of my favourite poets - and I know you have heard a lot of his verses from me - Ben Okri. I wish to emphasise the importance of this Vote and the need for your support. In his poem "Turn on Your Light", he says "The new era is already here." He then implores us to start now, to begin afresh so that collectively we can all reap the benefits of what bears fruit. You know, as a member of this House - as a South African who wants to see my country develop, the people's potential being given the opportunity to grow - I wish to appeal to you to overcome your ideological differences and to put people first. The ANC supports this budget. I thank you. [Applause.]