Chairperson, hon members, ladies and gentlemen, good morning. I first need to indicate to the hon Ben Turok that the big guys in the IMF whom he has mentioned are actually the cause of the recession. I therefore don't think we have anything to learn from them; they need to learn from developing countries to get fresh ideas. So I don't think they have contributed to any positive input for now. That is my considered opinion.
This budget debate takes place two months after the fourth democratic election, when President Jacob Zuma was affirmed by over 11 million South Africans as the choice to give confidence to the ruling party to continue its mandate given by South Africans to build a nonracial, nonsexist and prosperous society.
As part of participatory democracy, our government will continue to pursue a contract with the South African masses to attain a better life for all; and one of the fundamental tools of change is to build equity and to ensure that each and every citizen becomes a beneficiary and will have a share in the country's wealth. Furthermore, there should be work and security for all.
There is always a temptation by public representatives to give a technical account of the work they do without looking at the political mandates received from electorates. We fail to answer their questions and leave them wondering what we were trying to say in simple terms in our speeches. We are also swallowed by figures that are used to justify our successes and fail to provide answers on how to tackle challenges facing society in general.
I think in all discussions that are ensuing in all sectors of society - both in South Africa and the world over - be it in social, economic or political spheres of influence, there is only one question that dominates all other questions. That question is: How do we tackle the global economic crisis and its impact on us, and how do we tighten policy on the latter?
The ANC manifesto states that the strategic partnerships with major countries of the South like China, India and Brazil, were strengthened. It further elaborates that the ANC will intervene to ensure that government, together with labour, business and other sectors, will work together to develop practical solutions. These solutions will ensure that in the short, medium and long term, South Africa's economic prospects will continue to improve and that job losses will be avoided or at least minimised. That is why in the President's state of the nation address he mentioned the need to create at least 400 000 jobs. We will either create more jobs or minimise job losses, based on the challenges we face as a country.
Part of the five key priorities in the next five years is to create decent jobs and sustainable livelihoods through our macroeconomic policy. Therefore, there is a need to invest in the public sector and the fiscal monitory policy, including a need to lower interest rates and exchange rates to ensure labour-intensive projects on the ground.
The President, in his inaugural address, said:
For as long as there are people who are unable to find work, we shall not rest, and we dare not falter.
In his state of the nation address, he further mentioned that government will buy more goods and services from local manufacturers without undermining international competitiveness. So we need to strike a balance between what we do locally and internationally.
An analogy was drawn between the history of the South African economy prior to 1990 and beyond the 1994 breakthrough. It was indicated that prior to 1994, South Africa did not have access to international markets due to the apartheid system's isolation by the international community. Therefore, GDP started to grow after the outward orientation by the democratic state. We need to consider this fact. The outward-looking position of the ANC-led government has improved investment in our country.
But the state had its own challenges that remained, and one of them was to address the information and communication technology, or ICT, shortages, human capital development, small, medium and micro enterprises, or SMMEs, and the development and competitiveness of the domestic industries. Therefore, we need to re-evaluate our policies and our institutions as this is seen as a solution to our challenges.
We also need to evaluate our government's skills programme to see how successful we were in imparting skills through the Setas, and whether we have the relevant skills needed in the job market. We need to indicate the role of Jipsa in imparting those skills.
As the Minister has already indicated, of the sectors that are in distress and those that need prioritisation, the department will identify which of those industries will receive preference. Such sectors must have the capacity to be competitive. A clear strategy is needed in these sectors to ensure that government does not lose its investment. The productivity levels of the leadership of such institutions should be evaluated on a quarterly basis. For us to compete for space in the global market, we need both qualitative and quantitative capacities. But the government also needs to leverage business. This is what we are going to do.
We will review our agrarian reform. We acknowledge that the key issues in our country are land and the economy. Therefore, there is a clear manufacturing strategy, the finalisation of the industrial policy, the role of local government in economic growth, the synergy of the work of government departments and ICT through innovation ... [Interjections.]
In conclusion, the answer to all these difficult questions lies here with South Africans. We should be able to reflect on lessons learned from the global economic crisis and on how the big players were affected by this and how to proceed with Sacu, after the failure to adhere to article 31 by other member states. Over and above interventions, government needs a balancing act between raising tariffs and creating competition.
I also need to acknowledge the presence of the hon Thabethe - I can't see her. She is the former Deputy Minister of DTI. I also appreciate the support of Comrade Job, Comrade E P, all other Ministers and the director- general. I also appreciate the presence of my two children, who surprised me by being here today.
I also want say to the hon Kotsi that we cannot sell the state-owned enterprises because they are the only tool we have to intervene in the market to create decent jobs for all as they only look at competition. I also want to say to the hon Ryan Coetzee that we wish him well in his new endeavors. Thank you. [Applause.]