Business Day

Get state out of the way

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Duma Gqubule’s most recent column refers (“ANC not interested in using the big policy levers to boost jobs”, February 27).

It was to be expected that the election manifesto for the ANC would be more of the same. The governing party has managed to destroy the economy, and at the same time managed to fool the party faithful. Any job created by the government would be costly and a drain on the fiscus. Furthermor­e, these jobs normally don’t provide any training and are haphazard at best.

Every political party has put job creation as its number one criterion. However, there is only one political party that has shown through practical applicatio­n in the Western Cape that it can cut unemployme­nt to less than half the national rate.

There is no magic in what the DA-led Western Cape government is doing. Simply put, it understand­s that small business is the job creator of the future. The only way to get the small business sector to work with the government is for the government to get out of the way.

The government should ensure that regulation­s don’t hamper small businesses and their ability to employ. It is also necessary to uncouple small businesses from large businesses through reforms to the bargaining council system.

The ANC wants us to believe that the more money the government spends on job creation the more jobs there will be. What it doesn’t tell us is that invariably these jobs are just a further extension of the Extended Public Works Programme. People get no training and earn half the minimum wage.

This programme is necessary, but only as an interim measure. It will take a new government to understand that government is not there to create jobs but to create the environmen­t that will enable the business community to create the jobs.

Michael Bagraim, MP

DA shadow deputy employment & labour minister

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