Deputy Speaker, I can say that hon Jeremy Cronin is here to stand in for all his colleagues, who are hiding somewhere else! So the hon Harris can relax.
Gill Marcus warned us last week that the effects of South Africa's high unemployment would be felt for decades. The youth unemployment index, a recently launched study, has warned that growing unemployment among South Africa's youth is an issue that has far-reaching social and economic consequences for the nation.
The index is echoed by the findings of a study of the Development Bank of Southern Africa, which warned that South Africa could not sustain the pattern of youth unemployment that has characterised the democratic period. The study further says, neither can young people continue to leave the formal education system with no hope of attaining an income, dignity and self-worth through employment.
Joblessness is the most pressing economic issue facing us, and the world, today. The National Development Plan, NDP, has warned that youth unemployment could become a major source of destabilisation.
There is no uniqueness to the South African problem. What makes it a challenge is when Cosatu shoots down an initiative like this Bill. Our youth unemployment stands at almost 5 million. Furthermore, 122 000 people joined these ranks between the first and second quarters of 2013. Cosatu's Patrick Craven does not like the unemployment figures and said they would campaign for the implementation of policies such as the Industrial Policy Action Plan, the infrastructure development programme and at least some of the New Growth Path, but is silent on the NDP. Cosatu is vehemently against any implementation of the youth subsidy, including this Bill. By not supporting this they are keeping young people unemployed. They are deliberately attempting to exclude young people from the economy. It is certainly very strange that Cosatu is against this Bill, if their own studies show the positive impact of such a youth subsidy on the problem!
The other benefit of this subsidy, according to Roelof Botha, is that because of indirect taxes the Treasury can expect a fiscal dividend of about 20% of the value of the wages paid. That is good news for the hon Minister of Finance.
However, all indications are that this subsidy will be a favourite mechanism, will be embraced by the youth and employers, and will lead, once again, to the tainting of Cosatu's already harmed image. It's all about perceptions in politics. If the youth turn against you, your growth potential is harmed. This should be a lesson to Cosatu and it is time for them to embrace policies that make sense for South Africa.
There was unanimous support in our committee for the scrapping of the sunset clause and further support for getting the employment date for those who can participate scrapped in the Bill, or at least brought forward to the date when the subsidy was announced. However, due to time constraints it was not possible. Legislation before a committee is always a compromise. In working against time you are sometimes forced to compromise, and this was even more the case with this Bill.
However, this is a positive Bill and this initiative will change the lives of thousands of young workers and allow them to grow and grab new opportunities. It will be reviewed after two years. Let us hope it is a success and then we shall at that time see the strengthening of the measures introduced.
The Bill is creating a seat for the so-called "unemployed" at the labour table. We hope it is a forerunner of many changes we would like to see in order to streamline our labour dispensation more, which has been pointed out by many commentators as one of the factors hampering our economic growth potential.
The fact that hon Minister Pravin Gordhan, with the support of the ANC caucus, has tabled this against a barricade of opposition from Cosatu, is introducing a new era in the tripartite alliance relationship. Cosatu's opposition as a unified force is dwindling and maybe we can expect better policies from the government, and ignore Cosatu more and more. Cope will support this Bill. [Applause.]