Deputy Speaker, hon Deputy Minister of Finance, hon Minister of Finance and hon members, today we are debating the youth tax incentive that has been introduced. It has been long awaited and it is important that we acknowledge its effects.
However, let me start by addressing hon Harris on the absorption vision he spoke about. I really cannot make sense of what you were talking about, the steps that you were talking about in connection with there being no jobs, and the fact that the Western Cape went ahead and implemented the tax incentive. It is their right to do that. However, then you cannot come here and cry about the issue of budgetary constraints.
Hon Jacob Zuma mentioned in 2010 that we needed a youth tax incentive to be implemented. However, we also need to acknowledge the fact that we need to have a democratic situation where we allow all social partners to engage in the deliberations, because this affects the fiscus and everything that we have to do.
On the issue of us and the ACDP, and also what you as the DA have raised around the Youth Employment Accord, it is there, and there will not be an impediment when it is implemented. The Youth Employment Accord takes cognisance of further issues that need to be dealt with. While we have to deal with the youth tax incentive, it is amongst the issues that we have to eradicate.
Gill Marcus has taken cognisance of the fact that youth unemployment has now risen. We say that there are a lot of measurable measures that we have to take, and we have to take cognisance of issues that we have to deal with, such as skills development; entrepreneurship development; further education and training, FET, colleges that we are introducing today in the education Bill; and learnership programmes. We are not just sitting and folding our arms. We are making a call to the South African youth to stand up and claim the youth tax incentive, because it is brought to them by the ANC to ensure that their lives are better.
We need to speak about the issue of the sunset clause. We as a committee shared the same sentiments, that with the sunset clause youth unemployment will not be able to be eradicated in the four-year period. As a committee we said that Treasury had to be able to implement the employment tax incentive with caution so that when it was reviewed after a two-year period, we could say, "Look, this has been tried, and therefore it is important for us to proceed with the Youth Employment Accord." So, it is something that we need to take cognisance of - the House must note it.
On the issue of democratic processes and Cosatu, when we speak about the alliance partners - and I can see, hon Harris, you are very passionate about it but unfortunately you don't have alliance partners in the DA - you cannot blame the ANC because we have that and we went to Nedlac. Nedlac involves an important process that needs to unfold and you need to appreciate that.
The issue of businesses is involved in that. The tax incentive states that we need to encourage businesses to ensure that they employ and absorb young people into the mainstream economy.
Let me make a point in regard to the National Development Plan, NDP. We are saying that young people need skills development to ensure that, when we roll out the NDP, we have young people who have job market readiness. That is what we are trying to deal with. To state that we are quiet about the NDP is your own illusion and you need to wake up there. It is high time you understand that this is not a youth subsidy. It is an employment tax incentive. Can this House note that? [Applause.]
We are starting with implementation and there is no three-year backlog. It is important for us to acknowledge that we are running government, and we did not just wake up one day and allocate the money because we felt like it. Hence, we are saying this is one area - as hon Jacob Zuma said in 2010 - where we need to put in measures to ensure that we deal with the scourge of unemployment.
Hon Deputy Speaker, in closing let me say that the youth employment tax incentive, learnerships, FET colleges, Adult Basic Education and Training, free basic education, and the Expanded Public Works Programme have been proudly brought to you by the ANC government. So, we are saying we are not sitting and simply folding our arms, and our young people are definitely with us. Ndolivhuwa. [I thank you.] [Applause.]