*NUMSA RESPONSE TO THE STATE OF THE NATION ADDRESS*

* *

*12 February 2010***



The National Union of Metalworkers of South Africa (Numsa) notes the gist of
President Jacob Zuma’s State of the Nation Address (SoNA) delivered on the
occasion of Nelson Mandela’s 20th Anniversary freedom from apartheid jail.



President Zuma’s overall thrust of the State of the National Address was
located within the context of persisting challenges of service delivery,
rampant corruption, ballooning unemployment, mass poverty, widening income
inequalities amongst the rich and poor as permeated by global capitalism and
domestic recession. We welcome his condolences that at least 900 000 jobs
have been shed as a result of the recession - in the face of denial by the
then Reserve Bank Governor Tito Mboweni and the then Finance Minister Trevor
Manuel.



Those who grew sassy during the 2000s, as ‘growth’ appeared to reach 5%, did
not acknowledge that our economy was increasingly based not upon
manufacturing, but mainly upon speculative construction and financial
industry froth. Untenable consumer debt, imported goods and the export of
profits and dividends to London and Melbourne together created a trade
deficit and large payments outflow in 2001-2008, and severe currency
vulnerabilities due to exchange control liberalization caused yet another
rand crash in late 2008. When Mboweni raised interest rates in 2008 – for
which he is condemned by all parties – the result was an extreme
overreaction in our economy, and by early 2009, the loss of 24% of steel and
27% of auto production from a year earlier, left Numsa workers amongst those
suffering the most.



This is the crucial economic context for the State of the Nation Address by
President Zuma, which as a result turned to the key priorities as
encapsulated in the ANC-led Alliance Elections Manifesto, namely:

   - Creation of decent work and sustainable livelihoods
   - Education
   - Health
   - Rural development, food security and land reform
   - The fight against crime and corruption.

We welcome and support the following commitments made by President Zuma
which are in sync with the ANC-led Alliance Elections Manifesto and
electoral mandate bestowed to the current administration by the overwhelming
majority of our people;

   1. The allocation of over 6 000 hectares of well-located public land for
   low income and affordable housing;

2.      Ambitious targets for skills development, to produce additional
engineers and technicians, and to increase the number of qualified
mathematics and science teachers;

3.      The allocation over the next three years of R846 billion on public
infrastructure, although this must be allocated much more to housing,
water/sanitation and electrical system roll-out, clinics, schools,
affordable public transport, and a transformed economy powered by renewable
energy with green jobs;

4.      The allocation of R6 billion through the Independent Development
Corporation to help companies in distress*;*

   1. The extension of social grants to two million children from poor
   households, aged 15 to 18 years;
   2. The reaffirmation to establish a national health insurance system
   3. Continuation of support measures to protect vulnerable sectors,
   contained in the 2009 Framework Agreement.

Numsa is concerned about the mild attention given by President Zuma to
ongoing problems with corruption, service delivery, and the creation of
decent work. While we have opposed the way some activists engaged in
community protests have degenerated into xenophobes, this is a small
minority, and instead of stronger policing and deployment of political
leaders to temporarily quell unrest, our President must get to the core of
the problems creating grievances. This means major changes in policy so that
water and electricity are affordable, good quality houses are built, land is
reformed, the children are fed and educated, the ill and elderly are
properly cared for, and our society moves into a new stage of social growth
with environmental responsibility. These values must be continually restated
because too many in the state and private sector expect to continue with
business as usual. We face too many overlapping crises to allow petty
distractions, corrupt methods and greed by individuals and business empires
to halt the National Democratic Revolution. We are of the view of that
President Zuma should have been bolder in fomenting a persistent struggle of
the citizenry and patriotic officials against political patronage and the
practises of parasitic capitalism, where government office is used to create
a network of patronage and access to business opportunities for private
gain. These practises undermine our struggle to fight poverty and under
development.

We are vehemently opposed to the suggestions by President Jacob Zuma that
the private hands have a strategic role to play in rebuild our public health
system, through the private – public partnership. We strongly believe that
through this disastrous intervention, it will reproduce the racialised and
unequal health system and undermine our efforts of building peoples
health-care system that puts people first as opposed to profits.

Our biggest disappointment with President Zuma’s State of the Nation Address
is its failure to commit government to a radical and thorough review of our
monetary, fiscal and inflation targeting policies. This is the most serious
and pressing problem facing our country. In essence this undermines the
various Alliance Summits resolutions and shared perspectives on the
strategic economic perspective of our country post Polokwane honeymoon. In
fact President Zuma’s deliberate omission of the economic path confirms that
our government is restoring the current economic path, which is responsible
for persisting high levels of unemployment, continuing retrenchments and
destruction of quality jobs. Simply we are going to be pursuing a strategy
of restoration of capitalist profitability as opposed to rolling-back the
markets geared towards meeting people’s needs and demands.

We need a clarion call from the Presidency that the wealth of our country
shall be restored back to the people as a whole to replace the remnants of
the colonial character of the South African economy.

Contact:

*Castro Ngobese***

*National Spokesperson – 073 299 1595*

* *

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