*23 February 2011* > > *SACP STATEMENT ON THE 2011 BUDGET SPEECH* > > The SACP notes and welcomes the general thrust of the Budget presented by > the Minister of Finance today. The budget signals an important commitment > and movement by government towards funding our five priorities. It further > signals a strong intention to align government expenditure to the New Growth > Path that government is pursuing. > > The funding set aside to increase expenditure in education and skills > development must be greatly welcomed. This signals a dedicated focus on > youth and addressing the challenges of unemployment facing our country and > the youth specifically. Our country has a huge challenge in unlocking the > problems encountered by many young people who are in transit between the > schooling system and finding employment. In solving this crisis we note the > announcement of funding set aside for a youth employment subsidy. > > The Minister of Finance is correct this time around to say that the > proposed wage subsidy will be implemented subject to consultations and > discussions in various forums including NEDLAC. The SACP fully agrees with > the concern raised by unions about a possible substitution of full time > workers with younger workers who are on subsidy and the termination of their > employment once they don’t qualify for the subsidy anymore. A wage subsidy > can be subject to abuse by the employers and if we are to ever implement > such measures we must have developed a system that cannot be abused by > profit chasing capitalists. > > We further welcome the commitments made towards the introduction > progressive introduction of the National Health Insurance and expenditure on > other measures in so far as social policy is concerned. This signals cabinet > is taking serious the implementation of the NHI. We wish to state upfront as > the SACP that as part of the options put forward around financing the NHI a > consideration of VAT is not a desirable option as it will have a negative > impact on the poor. > > We welcome the measures announced around curbing corruption in the process > of government procurement. The SACP calls on government to further > consider our proposal that shortlisted companies bidding for tenders must be > made public with reasons why they have been shortlisted and why the winning > bidder has been chosen over and above the measures announced today. We hope > measures announced today around revitalisation of housing infrastructure and > improvement of informal settlements will not just be an extension of a > terrain for tenderpreuners to scavenge on these good intentions but that it > will be used to mobilise communities as agents of their own change. > > The SACP is also worried that there is no substantial shift from the logic > of improving our infrastructure and transport logistic for lowering the cost > of doing business as opposed to aligning such to our developmental > objectives and social needs. We are further more worried by the resistance > to move away from pursuing inflation targeting bluntly and not expanding a > differential approach of various interventions which amongst others are not > just obsessed with low inflation rate whilst unemployment and inequality > remains excessively high. > > The Minister has correctly pointed out to there will be global inflationary > pressures as a result of soaring oil and food prices and that some of the > pressures exerted on our currency have been reversed since December last > year. We welcome the Ministers commitment that government will continue to > explore the possibility of imposing a tax on capital inflows and outflows, > especially the outflows. Whilst speculative capital is no longer flowing in > and out of the country as rapidly as it was in the recent past, the SACP > strongly believes that taxing capital inflows and outflows to discourage > rapid inflows and outflows is a desirable policy option. We have clearly > missed the boat on this front but going forward this must be strongly > considered. > > The SACP further welcomes the announcements on the funding of the > implementation of IPAP2. We also welcome the announcement in so far as the > setting up of the Development Finance Institutions Council. In order to > realign the mandate of the DFI’s to our developmental goals and objectives > the SACP reiterates its call for a Financial Sector Summit, which includes > both the private financial institution and public finance institutions to > discuss this critical issue of financing development. > > The SACP celebrates as one of the outcomes of our Financial Sector > Transformation Campaign the announcement made by the Minister that it is now > time “put in place measures that will ensure that banking charges are > fairly set, are transparent and do not create undue hardship”. For far > too long the private banks have been allowed to run away with murder and > unfairly milk money from our people through a complex banking charges > structures. > > In order to achieve our developmental goals and to make progress in the > improvement of the lives of our people in the priority areas we have all > agreed to, mass mobilisation remains very critical. The SACP will continue > to mobilise the working class and the poor for the achievement of the > positives mentioned in the budget and the implementation of our proposals. > > * * > > *Issued by the SACP* > > * * > > *Contact:* > > * * > > *Malesela Maleka* > > *SACP Spokesperson – 082 226 1802* > > -- > You received this message because you are subscribed to the Google Groups > "SACP Media Releases" group. For statement archive, web pages and file > downloads, visit this group at http://groups.google.com/group/SACP-Media > To unsubscribe from this group, send email to > [email protected] > The main SACP web site is at http://www.sacp.org.za/
-- You are subscribed. This footer can help you. Please POST your comments to [email protected] or reply to this message. You can visit the group WEB SITE at http://groups.google.com/group/yclsa-eom-forum for different delivery options, pages, files and membership. To UNSUBSCRIBE, please email [email protected] . You don't have to put anything in the "Subject:" field. You don't have to put anything in the message part. All you have to do is to send an e-mail to this address (repeat): [email protected] .
