Chairperson, hon Ministers, the global economic crisis has hit a number of our productive sectors very hard, slowing growth and affecting jobs dramatically. Clearly government intervention is necessary, Prof Turok. In this regard, the ACDP supports the Nedlac framework response of government adopting industrial financing and incentive instruments, with the development finance institutions assisting firms in distress. The mining industry was assisted to a degree by the deferment of mining royalties; let us not forget that. But, clearly, much more needs to be done.
As far as the automotive industry is concerned, to what degree will the R870 million Automotive Production Development Programme be further adapted to assist this beleaguered industry?
The Minister of Economic Development spoke about a national consensus. Surely, we also need to go a step further whereby organised labour agrees to restrain strikes and wage demands in line with productivity and production; business commits to continued investment and to retaining and retraining workers; and where government supports and intervenes with economic and welfare policies to deal with the social and economic fallout pointed to by Prof Turok. We trust that such a national consensus can be achieved in this time of emergency. Let us remember that prior to the negotiations of our Constitution we entered into a solemn pact; maybe it is time to look at something along those lines.
Clearly, the R787 billion infrastructure expenditure remains a key fiscal stimulus to the economy. The ACDP agrees that we need to maximise industrial development by minimising imports and capacitating local engineering industries during this period. This is massive and it will enable us to claw back the increasing deficit to the benefit of long-term growth.
The ACDP also shares the concerns expressed relating to the economic partnership agreements with certain SADC countries breaking ranks ...