The following speech was delivered in Parliament today by DA Shadow Deputy Minister of Trade and Industry, Dean Macpherson MP, during the Budget Vote on Trade and Industry.
Chairperson
Today’s Department budget must be viewed in the context of a country that is in serious trouble.
Minister Rob Davies will have us believe that this ‘trouble’ is brought on by international ‘headwinds’ but in fact these ‘headwinds’ are the result of a force of nature that has wreaked destruction, misery and havoc wherever it has made landfall in South Africa. That headwind and force of nature is called “Hurricane Zuma”.
You see, with a hurricane, it sucks all the moisture from below in a swirling vortex of wind, knocking over everything in its path.
It blows over the most solid structures in its search for more moisture and continuously desires to cause more destruction in its ever-growing need to feed its ever-hungry vortex of wind. The strongest man-made buildings are simply no match for it.
People are left destitute after the storm has passed, having to rebuild their lives from scratch.
This is precisely what “Hurricane Zuma” has done to our economy, with the weather man, Minister Rob Davies standing by with an umbrella and raincoat, telling everyone that the storm will pass and that it’s only a few rain drops, all while being blown over by this force of nature.
Chairperson, the reality is that with any storm, there are measures you can take to prevent damage to the population.
While the Department came up with a credible Manufacturing Competitive Enhancement Programme (MECP) in 2012 with a budget of R5 billion, since then the Minister has rung his hands at every opportunity when questioned about what happens after 2017/18.
Instead, he has constantly told me he is “talking to Treasury”.
If the government could implement only half of what it was constantly speaking to other people about, maybe things wouldn’t be as bad as they are.
While the DA supports MCEP and what it has achieved, it has not been without serious problems, including insufficient funding, lack of forward planning, delays in application approvals and in some cases, withdrawal of approval letters after businesses bought their new machines.
The DA has advocated for a longer term view to be taken towards incentives including new sector-specific ones, including an agriculture and Small, Medium and Micro-sized Enterprises (SMME) programme. I am glad that the Portfolio Committee has finally decided to do something about it by engaging with the Department of Trade and Industry (DTI) and Treasury.
We know that incentives work, one only has to look at the success of the Independent Power Producers market to understand how much the advancement in green technology has benefited South Africa.
Yet today, there is still a raging war between Eskom and Government in adding new generation into the grid. Again the Minister has made commitments to deal with this by “talking” to his colleagues in Cabinet.
But as usual, it’s more talking, more excuses, and little action.
Chairperson, in November 2016, Minister Davies responded to a question I posed to him after the National Prosecuting Authority (NPA) charged then Minister of Finance, Pravin Gordhan, about how this would affect international investor confidence.
Minister Davies responded by saying that investors were looking for “policy certainty and a comfortable experience”.
Since that rather optimistic response, we have shown our investors complete policy uncertainty in the form of “Radical Economic Transformation”, a policy straight out of Saxonwold intended to benefit the connected and the few.
It is a policy that suits whatever narrative the ANC politician rattling it off at a campaign rally deems necessary. Investors have been treated to an uncomfortable and bumpy plane ride through “Hurricane Zuma”, piloted by Captain Rob Davies.
This is evident in General Motors’ (GM) decision to withdraw from South Africa.
In their statement issued last week, (GM) were explicitly clear that “continued or increased investment in manufacturing in South Africa would not provide GM with the expected returns of other global investment opportunities”.
With 2000 jobs on the line, “Hurricane Zuma” continues to rain destruction with the hapless “Captain of Trade & Industry Airways”, unable to navigate around or through this devastating storm.
Chairperson, there is only one answer to all this mess and that is to show this uncaring and incapable ANC-government the door.
We say to the business community, big and small, investors, SMMEs, entrepreneurs and their employees: Hang in there.
A brighter day is coming in 2019, free of turbulence, free of torrential downpours, one were the DA will partner with you to build your business and create jobs.
We just ask that you keep your seatbelt fastened and continue to believe in South Africa with us.