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NATIONAL COUNCIL OF PROVINCES
QUESTION FOR WRITTEN REPLY
QUESTION NO.: 215
DATE OF PUBLICATION: 23 JULY 2010
Mr H B Groenewald (DA-NW) to ask the Minister of Economic Development:
Whether the Government has any plans to create more sustainable jobs in the
near future, in particular in rural areas; if not, why not; if so, (a) what
are the defined timelines for this and (b) what are the further relevant
details?CW288E
REPLY
Government does have plans to create more sustainable jobs, including in
the rural areas. Rural development is one of the top five priorities of
this administration, as highlighted in the Election Manifesto. Rural
development is also one of 12 outcomes adopted by Cabinet for the country
at the January 2010 Cabinet Lekgotla.
Governmentâs plans and initiatives to create more sustainable jobs include
the Industrial Policy Action Plan (IPAP2), which contains detailed measures
for job creation, including in biofuels, which creates jobs in rural areas.
A copy of IPAP2 is accessible at www.thedti.gov.za. The Department of
Agriculture, Forestry and Fisheries is developing an Agriculture, Forestry
and Fisheries Integrated Growth and Development Plan.
The Economic Development Department (EDD) tabled a Strategic Plan 2010/11 â
2012/13 in Parliament on 3 March 2010. The Strategic Plan outlines
programmes and sub-programmes that aim to create more sustainable jobs.
The following examples drawn from the Strategic Plan illustrate some of the
ways in which EDD supports job creation and rural development and provide
some deadlines and details:
The Ministry of Economic Development has developed the framework for a new
Growth Path for the country that will identify opportunities where jobs
will be created, including through agriculture, agro-processing and rural
economic development initiatives. The developmental growth path framework
was tabled at the July 2010 Cabinet Lekgotla. This work will be released
during 2010 as soon as the necessary processes of Cabinet have been
concluded.
In recent months EDD has undertaken a rigorous process of reviewing the
strategic plans of three development finance institutions (DFIs - IDC,
Khula and samaf) and three regulatory bodies (Competition Commission,
Competition Tribunal and ITAC). The purpose of the review was to ensure
that they are aligned to government priorities, including job creation and
rural development. The revised strategic plans have been tabled in
Parliament on Friday 6 August 2010.
In exercising oversight over the competition authorities, EDD ensures the
promotion of competitive market conditions, which help to keep the prices
of food and other commodities low, including those critical for
subsistence, agriculture and rural development. Recent action on
fertilizers, as announced by the Competition Commission, illustrates
measures taken by government. These actions are part of the means to
improve job creation and retention in agriculture and agro-processing.
Government at national level has been working with provinces and metros to
identify viable projects to promote job creation. The Economic MinMec met
on 24 June 2010, bringing together national Ministers of Economic
Development and Trade and Industry, MECs from the nine provinces and
executive mayors from the metros and members of the SALGA executive.
Provinces tabled concrete proposals on jobs-related projects and these are
in the process of being evaluated. Spatial development is an important
priority of the MinMec, and will be discussed at the next meeting to be
held before the end of September.
Government is reviewing procurement policies. The objective is to
stimulate demand for locally manufactured goods and thereby promote
employment creation, including in rural areas. New regulations have been
drafted and will be published later in the year. This initiative involves
EDD, National Treasury and the dti.
Government is championing the green economy, which includes a range of
measures to reduce pollution, natural resource use, waste and emissions. A
major focus is renewable energy. Following a request from the Minister of
Economic Development, the IDC has now set aside R11, 7 billion over the
next five years for green industries, which will promote job creation inter
alia in rural areas. Renewable energy facilities will take into account
rural development imperatives, for example in the location of biofuels
processing plants, as indicated above.
Government action on the implementation of the Framework for South Africaâs
Response to the International Economic Crisis has saved jobs and created
new job opportunities. In September 2009 a Training Layoff Scheme was
introduced, offering companies experiencing reduced demand as a result of
the global economic slowdown an alternative to retrenchment. R2,9 billion
was mobilised and to date 4512 jobs have been saved. The IDC established a
fund to assist companies in distress and assisted 44 companies, saving or
creating 14 470 jobs.