25 October 2011
Sowetan: Mixed requests for budget policy needs
http://www.sowetanlive.co.za/news/2011/10/25/mixed-requests-for-budget-policy-needs
Mixed requests for budget policy needs
FINANCE Minister Pravin Gordhan again faces conflicting demands across the political spectrum when he presents his medium-term budget policy statement this afternoon.
Cosatu spokesman Patrick Craven said yesterday the federation expected Gordhan to lower interest rates. “The other priority must be job creation,” he said.
DA MP Dion George said it would be “politically expedient” of Gordhan to dedicate much of his speech to the global recession when the government could save R5-billion by disbanding the National Youth Development Agency, Economic Development department and ministry of Women, Children and People with Disabilities, and scrapping “pointless” district municipalities.
The DA called for R8-billion to be spent on new roads, R1-billion on teacher training and R2.6-billion to fill all vacancies in public hospitals.
It also wants subsidies to attract foreign companies to industrial development zones – and “labour market reforms” .
But Craven said Cosatu would strongly oppose this.
“Labour laws need to be strengthened and incentives inside these zones must be very carefully monitored so we can see if they are being used to create jobs and not just (to take) the profits overseas.”
Abahlali baseMjondolo (residents of the shacks) president S’bu Zikode said they had “become hopeless” about any relief for the poor.
UDM leader Bantu Holomisa called for an indaba on how to achieve economic freedom for all. “The ruling party has touted various economic policies. Consultants appear to be the sole beneficiaries.”
Cope MP Nick Koornhof said South Africa would not weather another recession unless Gordhan reined in the alarming levels of irregular government spending.
Elroy Paulus of the Black Sash said it opposed VAT being increased to fund health insurance.