Chairperson, "pikswart" following the "swart gevaar". In his Medium-Term Budget Policy Statement the Minister of Finance stressed the need for job creation. He outlined various measures by which jobs can be created. Greater emphasis on infrastructural development, for instance, is one such measure and budgetary allowances are made accordingly. We welcome these steps, but they are not enough. Unemployment remains a major crisis. More than a million jobs have been lost between 2009 and the second quarter of 2011, with the youth being the most affected.
The Medium-Term Budget Policy Statement, MTBPS, foresees a gross domestic product, GDP, growth rate of only 4,3% by 2014. Yet a GDP growth rate in excess of 8% must be achieved on a sustainable basis if government's target of an additional 5 million new jobs by 2020 is to be reached. These jobs should be created mainly in the private sector as the state wage bill of government is already excessive and funded partly by borrowings.
In reply to questions in the House, the hon President admitted that government's target for jobs to be created by 2020 will not be met. He advanced the worldwide recession as the main reason for government's inability to reach the targets. The President conveniently forgets that countries such as Brazil, China and India achieved high GDP growth rates conducive to sustainable job creation despite the recession.
The difference is simply that the economic growth is placed on the forefront in these countries and not politics. The latest growth plans tabled by the National Planning Commission will also achieve nothing if a major shift in leadership attitude and political will does not become evident.
What then needs to be done? Eliminate wasteful and unnecessary expenditure; eliminate corruption; introduce a youth wage subsidy; direct more funds to infrastructural development; eliminate red tape for new businesses to be formed; encourage overseas investments, do not Walmart them; stop talking about nationalisation; overhaul the educational system with emphasis on skills development; curb wage demands and increase productivity; review stringent labour legislation; create effective industrial development zones, particularly in rural areas; reduce staff levels in government and unnecessary state entities; scrap cadre deployment; keep inflation under control; improve security; guarantee property rights; give preference to labour-intensive contracts; and ensure freedom of the press.
Introduction of these measures will create an open opportunity environment for economic growth and therefore job creation. Carrying on as it is now will not yield results. I thank you. [Applause.]