Medium Term Budget Policy Welcomed

MEDIA STATEMENT ISSUED BY:
HENNIE BEKKER MP
IFP SPOKESPERSON ON ECONOMIC AFFAIRS

October 25, 2006

The Inkatha Freedom Party's Spokesperson on Finance, Hennie Bekker MP, came out in support of the Medium Term Budget Policy presented to Parliament by the Minister of Finance, Mr Trevor Manuel MP, on Wednesday.

"The IFP welcomes the Medium Term Budget Policy and all plans set-out in this 'mini-budget' to alleviate the economic hardships of the desperately poor of South Africa," said Hennie Bekker.

"Furthermore the IFP wants to reiterate our call that economic growth in South Africa through the Accelerated and Shared Growth Initiative of South Africa (AsgiSA) is of utmost importance. 7% Annual economic growth is non-negotiable and all factors hampering economic growth such as interest rate hikes should be restricted and remedied.

"The looming 2010 Soccer World Cup will have a very positive effect on the economy of South Africa and it is with this in mind that the IFP applauds Government for setting aside R14.9bn to major capital projects for the World Cup and over R4 billion to upgrade our over-stressed public transport system.

"We must however warn that the perception of lawlessness in South Africa could have a disastrous effect on the World Cup. About 450 000 visitors are expected for the event, with tourism revenue projected to be around 13 billion rand. Official estimates are for 130 000 jobs to be created and R21,3-billion to be contributed to gross domestic product. Should South Africa's crime crisis not be solved soon, there could be a very low attendance at the 2010 showpiece, possibly ruining all economic gains that are currently being hoped for.

"The IFP remains concerned with rising inflation, but we recognise that external factors such as the high oil price are partly to blame.

In conclusion Hennie Bekker said: "The IFP applauds Mr Manuel for directing a large portion of additional spending towards capital expenditure with an eye on upgrading roads and hospitals. We also welcome the increase in spending on education, health and the R3.5bn allocated to justice and crime prevention."



FOR FURTHER INFORMATION CONTACT:
Hennie Bekker MP 083 255 4520
Liezl van der Merwe 083 611 7470