Growth plan lacks Cabinet support - DA

2010-11-24 21:16

Cape Town - The New Growth Plan unveiled by Economic Development Minister Ebrahim Patel contains proposals that are unacceptable to several of his Cabinet colleagues and the Reserve Bank, the DA said on Wednesday.

"The document on the table presents several ideas that would be anathema to Finance Minister Pravin Gordhan, Trade and Industry Minister Rob Davies, Planning Minister Trevor Manuel, and Reserve Bank Governor Gill Marcus," DA trade and industry spokesperson Tim Harris said in a statement.

He challenged them to publicly lend their support to the plan.

"If they do not do so, then we can only assume that Minister Patel's lonely seat at the announcement of the plan is indicative of a lack of support from the 'absent' ministers who have actual influence over macro, micro and monetary policy."

Harris said most of the good ideas in the plan, such as reform of BEE, small business policy and competition and trade policy, "cannibalise" the responsibilities of the trade and industry minister.

"The plan also reduces his IPAP2 Industrial Policy to a plan to turn around manufacturing, doing it a serious disservice."


Further, it "stomps all over the finance minister's constitutional mandate to set economic policy and define a fiscal framework".

"It airbrushes out his youth wage subsidy proposal, commits the state to a fiscal policy stance, as well as significant new infrastructure expenditure, and alludes to firm currency interventions.

"Perhaps most alarmingly, it rides roughshod over the independence of the Reserve Bank by committing the governor to a looser monetary policy, and subverts Planning Minister Manuel's dual responsibilities for long-term planning and African infrastructure development through Nepad."

Harris said the plan also failed to tackle the fundamental reform required in the labour market, preferring a "social pact" to moderate wages.

"While this is a laudable idea that the DA supports, we believe it is unlikely to succeed, and the state's energy should be directed instead at reforming the labour market directly."

While the DA supported the intention of accelerating growth and creating millions of new jobs, "we do not believe Minister Patel's proposal represents a realistic or implementable plan to do this".

The state simply did not have the capacity.

"It appears to us that the senior economic ministers also have their doubts, so we challenge them to lend their support to the plan, or join our call for it to be withdrawn and significantly rewritten," he said.

  • Koosie - 2010-11-25 06:52

    This country does not need the DA,it needs the opposition party,serving the interest of everyone in the country,not a party trying to defend apartheid priviledges of the minority.They oppose everything that seeks to uplift the lives of the masses from the cruel policies of apartheid.This country needs a policy framework which will create a good tax base from the majority of the population,that way we can start to adress issues of poverty,joblesness, crime,housing and other social ills.The DA knows it too well that as soon as the economy of the country rest on where it is supposed to be,i.e in the hands of the majority,they will loose support,their members will become poor and resort to crime.

      Paul - 2010-11-25 07:10

      Koosie the only people paying the tax is the minority and for the minority to continue to pay the tax that rest of the majority live off we need to be descent salaries. get your head out of your rear end man. the only reason thye so called previously disadvantaged are still so poor is because of their own democratically elected leaders JZ, Juju, the like these guys are all living the good life on the gravy train.

      Arthur Phili - 2010-11-25 07:27

      Those are wild and unsubstantiated claims you make about the DA. The DA has no interest in defending apartheid priviledges of the minority. If anything the DA is putting a stop to a new economic injustice committed against all South Africans by the ANC which is the complete and systematic destruction of the economy, similar to the path Zimbabwe embarked on with catastrophic consequences. Wealth redistribution results in everyone being equally poor, the minority does not collectively own enough to even marginally improve the lives of the majority which outnumbers them 10 to 1. While we're slinging mud around and making wild and unsubstantiated claims I'll like to make a few statements which have not been disproved in court. In my personal opinion.. I assume Zuma is guilty of corruption. If he disagrees, prove it in an independent court. I assume South Africa is on a path that will result in genocide, civil war, famine and widespread disease given the history of "independent" Africa. I think Malema is the embodiment of a living Mugabe and a dead Hitler, but with young, aggressive and hateful tenancies. Let me expand on that, I think he has the arrogance of a young idiot, he lacks in education and to me thats proof he has little self-control, accountability and responsibility. That is my personal opinion, anyone is free to try convince me otherwise.

      Jaco - 2010-11-25 09:24

      koosie, i realy think you dont know what your talking about " the aparthied priviledged" the only people that's still gaining from the aparthied is the ANC, all the members got fatter and richer,after the fall of aparthied and the majority just got more poor and all the DA is trying to do is make SA fair for all whether your black or white, because this country still have major problems with the colour of ones skin,and koosie next time you think of writting a coment like this i suggest you do your research first, because the minority will always carry the majority in this country or for atleast the next 50 years

  • Boerseun - 2010-11-25 07:28

    The real is issue is the unckecked growth of the population. Untill this is sorted, there will never be enough jobs for all. The DA talks a lot but is firmly gripped by outdated leftist, humanist ideas that refuses to acknowledge or even admite the real root of the problems RSA faces. In effect their policies is still very close to that of the ANC, apart from that they will at least try to prevent corruption along the way. Helen Zilla was in effect a ANC allie and still beleives in the same things as them.People are simply elcting the worst of two evil, when deciding between the ANC and DA. A solution that will work over the long term is what is needed, if we want to see continued peace and even some proseperity, in Soputh Africa. That solution is available, but not popular with any of these parties.

      Arthur Phili - 2010-11-25 08:05

      I agree. If South Africa's majority population did not increase 10 fold in 110 years without the corresponding increase in resources their +-50% control of the economy would put their original population of 4 000 000 people richer per capita than the "rich" minority. GDP per Capita is an indication of wealth (Our problem is the sheer number of people, rather than the lack of resources). In contrast the minority increased only 4 fold in numbers and each generation could build on the economic foundation laid by their parents. The minority is actually dirt poor, unless you experience life as a citizen of another country you don't realise you're actually an economic slave working to care for the offspring of others who do not even realise it or thank you for it in SA. The majority had homelands, borders of which was based on historic settlement and ownership. Their right to self-rule was recognised and they were encouraged to become fully independent nations from South Africa. Transkei's GDP was subsidised at 85% yet they choose not to develop infrastructure or establish institutions of their own. That which was built by outside help was often destroyed. Recently the DA expressed similar frustrations where workers were not allowed to provide services to the poor, by the poor people themselves. I don't understand it?! Obviously the same leaders of the homelands or similar leaders can not be expected to run a developed country which was established outside of the homelands.

  • pages:
  • 1