Mixed response to speech

2009-06-03 19:02

Cape Town - President Jacob Zuma's maiden State of the Nation address to Parliament on Wednesday hit the nail on the head, the ANC's alliance partners believe.

Some opposition parties, on the other hand, aver it signals a shift to a socialist agenda, while analysts called it disappointingly low on detail.

Fighting poverty and job creation will be his government's main focus over the next five years, Zuma told a joint sitting of the National Assembly and National Council of Provinces.

He nevertheless warned the recession would put a reality check on government's ambitions.

"The economic downturn will affect the pace at which our country is able to address the social and economic challenges it faces.

"But it will not alter the direction of our development. The policy priorities that we have identified, and the plans we placed before the electorate, remain at the core of the programme of this government.

"Since the implementation of our programme will take place in the face of the economic downturn, we will have to act prudently - no wastage, no rollovers of funds - every cent must be spent wisely and fruitfully. We must cut our cloth according to our size," he said.

Shielding poor from recession

Zuma vowed to shield the poor from the fallout of South Africa's first recession in 17 years, and to act both to save jobs and create new work opportunities.

"We must act now to minimise the impact of this downturn on those most vulnerable."

Workers facing retrenchment would be kept on for a period and retrained to do other work.

Companies in distress would be assisted by the Industrial Development Corporation, while government would bolster key industries in a "scaled-up Policy Action Plan".

"The creation of decent work will be at the centre of our economic policies, and influence our investment attraction and job-creation initiatives."

The Expanded Public Works Programme (EPWP) was the main instrument he cited for creating jobs, though critics say these will not necessarily prove sustainable.

Socialist agenda

Democratic Alliance parliamentary leader Athol Trollip said afterwards that despite Zuma's intimation that his address would revolve around the theme of "a culture of continuity", in truth it was marked by a very particular and distinct ideological shift towards a socialist agenda.

It was quite clear now that Zuma's term of office would be defined by a drive to centralise power in the hands of the executive, dramatically increase social spending, and promote an industrial policy hindering real economic growth and job creation.

This would strengthen the hand of trade unions.

However, within this broad agenda, there were positive initiatives and policy proposals, Trollip said.

Showing a shift to the left

Inkatha Freedom Party leader Mangosuthu Buthelezi welcomed the broad thrust of the address, but agreed "in language and tone it seemed to indicate a perceptible shift to the left".

Buthelezi cautioned that creating optimal conditions for the private sector to prosper was as important as state intervention.

The SA Communist Party and Congress of SA Trade Unions lauded Zuma's address, particularly for highlighting the fight against poverty and job creation as key priorities.

"We welcome his assurance that the crisis and recession will not be a reason to abandon our ANC-led election manifesto policies and commitments," the SACP said.

While the pace of change might be affected, Zuma was "categorical that we will not alter our strategic direction".

Message of hope - Cosatu

Cosatu said the address was totally consistent with the ANC's progressive election manifesto and sent a message of hope to workers and the poor.

The Federation of Unions of South Africa (Fedusa) and other unions also welcomed Zuma's speech.

The SA Chamber of Commerce and Industry said its tone was encouraging to business, while Business Unity SA (Busa) called it positive considering the socio-economic challenges facing the country.

Wits University analyst Susan Booysen called it "very low on detail, very much broad brush strokes".

"I didn't see any new policies. To be convinced that it was different from what came before we needed a bit more," she said.

'Speech of the collective'

Judith February from Idasa said Zuma's hour-long speech did not live up to the hype that swept him to office seven months after Thabo Mbeki resigned.

"Jacob Zuma comes in on a ticket of change, but there were no big issue ideas. It was hard to find his view, to see the president in this.

"It was a speech of the collective, from the people around him in the Union Buildings - we don't know which ones exactly - and in Luthuli House. And I think we should get used to that," February said.

Political analyst Stephen Friedman said if Zuma displayed some of his trademark human touch, there was little in his speech that promised to set his fledgling administration apart from former president Thabo Mbeki's nine-year reign.

But, he added, it was unrealistic to expect Zuma to overhaul the policies of the previous administration when in fact it was implementation and accountability that would resolve delivery problems.
 

- SAPA