Chairperson, in 2007 the national conference of the ANC emphasised that in matters of economic growth the ANC will employ continuity in change. It noted that since 1994 we have made substantial progress in transforming the economy to benefit the majority but serious challenges of unemployment, poverty and inequality remain. A developmental state with strategic organisational and technical capacity to drive economic growth was seen as key to overcoming these challenges. Therefore, after the general elections in 2009 the hon President announced the establishment of a new department on economic development.
The January 08 statement by our hon President makes it an obligation to pursue sustained development based on inclusive growth and to commit to ensuring that state-led industrial policy leads to the transformation of the economy. It further states that such state-led industrial policy programmes will direct public and private investment to support decent work outcomes, including employment creation and broad economic transformation. This programme will target labour-intensive production sectors and encourage activities that have employment effect. It will include systematic support for co-operatives by way of dedicated support institutions, small business development, and support for investment in productive sectors. The ANC is very aware of the impact that the economic crisis has on the pace and sequencing of delivery. The crisis is caused by a range of factors, including gross imbalances and inequalities in the global economic system. The impact of the financialisation of economics and poor business practices has resulted in a significant depreciation of assets, closure of companies, rising unemployment and a sharp slowing of economic growth during the recession.
Like other developing countries that are strongly integrated into the world economy and significantly dependent on its good health, South Africa has been affected by the sharp fall of the demand for its export products and a fall in the prices of key export commodities. In addition, the national credit crisis has meant that funds have become scarce and expensive. Consequently, portfolio investors are wary of emerging markets, including South Africa.
Sihlalo, Malungu EPhalamende, ngaleyo ndlela siyi Ningizimu Afrika kumele sihlangane sibe munye ukuze siqinisekise, futhi sibe nesiqiniseko sokuthi lo monakalo odalekile awusihlukanisi njengoba sibumbene nje. Ukuze kuthi labo asebephumelele bakwazi ukusiza ukutakuleni labo abasafufusa nalabo asebelahlekelwe kulesi simo sokufadalala komnotho.
Okwethu okumela sikwenze ukuthi sithwalisane lo mthwalo ngokuhlanganyela, ukuze labo abahluphekayo, nababengenawo amathuba bavikeleke kulesi simo. Nokuthi futhi sibe nesiqiniseko sokuthi umnotho wethu uthatha elinye igxathu, ukuze sonke sizuze ngokukhula kwawo. Nokuthi futhi sabelane ngawo njengabantu baseNingizumu Afrika.
Sibuye sandise namathuba emisebenzi nasezindaweni zasemakhaya ngoba bona basasalele emumva njengoba kusandliwa imbuya ngothi nje. Nokuthi phela lo hulumeni onakekelayo oholwa uKhongolose uzimisele ukusiza imiphakathi yasemakhaya ngohlelo lokuthuthukisa nokwakha kabusha futhi ubuye uvuselele nalezo zimboni esezavalwa, ukuze abantu bayeke ukufudukela ezindaweni zase madolobheni, kodwa bakwazi ukusebenza besemakhaya.
Lokhu kungasiza kakhulu uhulumeni wethu njengoba kunokwanda kokutelekela izidingongqangi ngenxa yokuthi iningi labantu abahlala ezindaweni ezingahlelekile yilabo abasuke emakhaya beyofuna amathuba emisebenzi emadolobheni. (Translation of isiZulu paragraphs follows.)
[Chairperson and Members of Parliament, in that way we need to unite and be one as South Africans to ensure that the damage done does not divide us as we are this united. Those who are successful could bail out those who are still suffering as well as those who have lost everything in this recession.
What we need to do is to carry this burden together so that the needy and those who were previously disadvantaged could be protected in these circumstances. And we also need to ensure that our economy takes a step forward so that we are able to benefit through its growth. And we need to share it as South Africans.
We also need to increase employment opportunities in rural areas as these areas are still lagging behind since they are impoverished. This caring ANC- led government is committed to uplifting the rural communities with the Reconstruction and Development Programme and also in rebuilding those factories that were closed down, so as to stop people from migrating to urban areas and by so doing enabling them to work in their own areas.
This will help our government a lot as there are always service delivery strikes since most of the people who are living in these areas that have no infrastructure are those who left their homes to look for job opportunities in the urban areas.]
Therefore, in December 2008, the social partners that make up the Presidential Economic Joint Working Group, namely organised labour, business and government, met to consider how South Africa should collectively respond to the more difficult economic conditions the country is facing, largely as a result of the international economic crisis.
South Africa agreed on a collective response to challenges facing us. That collective response has been set out. Addressing the problems of access to credit and working capital, the Industrial Development Corporation, as a direct response to the crisis, has made R6 billion available over the next two years.
The ANC-led government is committed to the implementation of the framework for South Africa's response to the international economic crisis. The framework was developed and agreed to at the National Economic Development and Labour Council, Nedlac, in February 2009 and it sets out principles and programmes to tackle this crisis. This framework has strong principles that seek to protect the poor, the vulnerable, the unemployed, as well as low- income workers. It also aims to strengthen the country's capacity to grow decent work in future and to maintain high levels of investment.
Among the programmes that should be intensified are ensuring the spending of the R787 billion budget on improving infrastructure, and tailoring the fiscal and monetary measures in a manner that complements trade and industrial policies. The manner in which we tailor these measures should be such that they contribute to the achievement of overall development objectives, including ensuring that the funds meant to assist companies in distress flow to deserving enterprises.
During its oversight visits to companies in distress, the Portfolio Committee on Economic Development identified the following challenges. First, there are companies where retrenchments have taken place because they were unaware of the labour lay-off schemes provided by the Department of Labour. However, some companies indicated that they have already rehired some of the retrenched workers. Second, in some companies there is little or no relationship between unions and employers, whereas others have a good working relationship between the two. Finally, we also found that some companies lacked proper marketing strategies. The main purpose of assisting companies in distress was to save jobs. Therefore major interventions in saving and retaining jobs were done through the training lay-off schemes.
The macroeconomic policy context in which the 2010 budget is tabled is characterised by a shift of emphasis away from inflation control to growth and employment creation. Pressures on inflation are significantly reduced. However, electricity rates have increased and we shall have to monitor the real effect of this increase. Demand for goods and services, which has been on the decline for the better part of 2009, showed some turnaround in the last quarter of the same year.
In the state of the nation address the hon President gave a broad overview of how ANC policy proposals are being translated into government programmes and how the Budget should respond to these. The 2010 Budget was delivered in the midst of an ongoing global economic crisis during which millions of jobs have been lost. In 2009 South Africa lost 870 000 jobs, mainly in the manufacturing sector.
Sihlalo, malungu ahloniphekile, phezu kwalesi simo sokufadalala komnotho, abanye ogalakajana babe sebethola ithuba lokukhuphula amanani ngokungemthetho. Bakwenze lokhu bazi ukuthi kuzoba nomthelela omubi kanjani ebantwini bakithi abahlwempu.
Ukuba khona koPhiko Olulwa Nenkohlakalo Kwezokuncintisana okwaziwa nge-the Competition Commission, kube nempumelelo enkulu ekubambeni nasekubekeni amacala nasekuhlawulisweni kanzima kwalezo zimboni ezitholakale zenza le mikhuba. Kubalwa la ukukhushulwa kwamanani ekudleni okufana nesinkwa, ubisi, inyama ebomvu neyenkukhu, nomanyolo (fertilisers), nokunye okuningi.
Siyawuncoma kakhulu umsebenzi owenziwe yile khomishana ngoba nokukhushulwa kwamanani okugibela izindiza kunqandiwe, ngoba bese kuzodala ukungathembeki njengoba siyi Ningizimu Afrika sizokwengamela lo mqhudelwano oyingqophamlando wendebe yomhlaba webhola lezinyawo. (Translation of isiZulu paragraphs follows.)
[Chairperson and hon members, on top of this recession, there were the witty ones who used this opportunity to unlawfully hike prices. They have done this while they were fully aware of the negative impact this would have on our poor people.
The introduction of the unit that fights price fixing, known as the Competition Commission, has had great successes in capturing, charging and imposing heavy fines on those companies that were found practising this scam. This includes price fixing of food stuff like bread, milk, red and white meat, and fertilisers and many other things.
We greatly commend the commission for its good work because even the price fixing with regard to the prices of flights was aborted because that would have resulted in us, as South Africa, being an unreliable country as we will be hosting the historic event, the Fifa World Cup.]
The ANC-led government has also taken the necessary steps to strengthen the ability and capacity of Sars in order to address custom fraud, which has also led to many job losses. As part of its mandate to support the economy and provide the revenue needed by the government to build democracy, Sars performs several important roles in international and local trade. These roles include enforcing customs and related trade laws in order to ensure the social welfare of citizens, controlling the importation and exportation of prohibited and restricted goods, as well as facilitating the speedy movement of travellers through South African borders.
As the Portfolio Committee on Economic Development we undertook an oversight visit to ports of entry, such as the Lebombo border post and O R Tambo Airport. I would like to express my appreciation of the manner in which Sars conducts activities relating to customs fraud. With regard to Sars's risk management framework, it was noted that the framework guides Sars's interventions that are in support of their strategic goals. Furthermore, the framework allows Sars to focus resources on high-risk and medium-risk areas. Sars includes the co-ordination of activities of border agencies in its strategic goals, providing strategic direction for ports of entry and protecting the South African society and economy.
In conclusion, I would like to thank the Minister for work well done in this new department. I would also like to thank the hon Deputy Minister for her programme of visiting the provinces to make sure that the mandate of the department is fulfilled. The ANC supports the Budget Vote. [Applause.]