TRADE AND INDUSTRY APPROPRIATION VOTE

Cape Town : March 9, 1999 

IFP CALLS FOR RADICAL MEASURES TO STIMULATE GROWTH

• Government assistance to SMME's undermined by over-burdensome bureaucracy, and inflexible labour laws
• Lack of incentives to improve domestic savings position 'a ticking time-bomb' stifling industrial growth
• Bold and innovative initiatives required to bolster investment
• EU position on trade deal "economically, politically and morally unjustifiable"

The Inkatha Freedom Party has raised serious concerns about the Government's trade and industrial strategy in a debate in the National Assembly today on the Trade and Industry Appropriation Vote.

However, IFP trade and Industry Spokesperson, Mr Hennie Bekker MP offered the IFP's support to demands that the EU conclude the trade, co-operation and development accord and informed MPs that IFP President, Dr Buthelezi, had pressed the European Commission on this matter during his recent visit to Europe.

Whilst welcoming the Government's recognition of the importance of the small business sector to employment growth, Bekker warns that the Government is in danger of undermining its own policies by its dogmatic adherence to damaging labour market legislation and burdensome bureaucratic impositions on SMMEs.

Speaking in the National Assembly, Bekker said

"The Government offers assistance with one hand and obstruction with the other...Without a commitment to free up the labour market, to reduce unnecessary red tape and to make the necessary capital investments in the country's infrastructure, the budget allocation of R1, 314 million to SMMEs may very well turn out to be good money thrown after bad."

Bekker argues that the Government's failure to provide adequate incentives to promote domestic savings ensures that industrial growth will continue to be stifled.

Addressing the failure of the EU to conclude a trade deal with South Africa, Bekker reiterates the IFP's support for the Government in the trade negotiations:

"We must make it crystal clear to those members of the EU who.... wish to use their economic muscle to impose a one-sided agreement; who want to have their cake AND eat it, - that their stance is economically, politically and morally unjustifiable.

"South Africa is tired of the contradiction between the warm words we hear from European leaders, eager to be associated with our transformation, and the cold reality that we experience in our trade negotiations. We in the IFP offer our full support to the Minister and the Government in their efforts to stand firm in these trade negotiations and we wish them success."