DA on early campaign trail with fresh economic policy

THE Democratic Alliance (DA) has launched into election campaign mode by unveiling an economic policy designed to catch votes and drive a wedge between the African National Congress (ANC) and voters.

The new policy will form the backbone of a big campaign on job creation — an issue on which the ANC is deeply vulnerable — aiming to persuade voters it is possible to create jobs with the right policies.

The DA’s central argument is that ANC policies perpetuate a situation where large numbers of people are shut out of the economy and doomed to be outsiders, while a small number of “insiders” — such as unionised workers — are protected at the expense of the many. Opposition from the Congress of South African Trade Unions to the youth wage subsidy proposed by Finance Minister Pravin Gordhan, the DA argues, is a case in point.

Through its focus on jobs and the launch of an intense campaign which will last two years, the DA aims to win Gauteng in the 2014 election. Party officials said the party was now “in campaign mode and is not going to stop”.

DA leader Helen Zille said yesterday the party’s core message to voters would be that “it can be easier to get a job and to create jobs”.

The party’s policy proposed a raft of incentives — such as a wage subsidy and an opportunity voucher system — and practical measures aimed at giving a leg-up to those excluded from economic activity due to low skills and poverty.

It is a departure from earlier DA policies which have tended to be big business-oriented, placed heavy emphasis on privatisation and the free market to the exclusion of incentives and state intervention.

The new policy takes a “pragmatic approach”, according to the DA’s documents. “We do believe the state has a role to play in compen- sating for market failures and creating incentives,” Ms Zille said.

“This probably is a departure from previous policies. Big business remains very important but what we don’t like is monopolistic big business. We want to see as much competition … as possible.”

The unifying theme of the policy

was to break down the structural barriers that “inhibit opportunity” and which strengthened the insideroutsider dynamic.

Strong emphasis was placed on removing the high barriers to entry of the labour market, which the DA said “exclude millions of South Africans from accessing employment opportunities” and made it dif- ficult for them to start businesses.

On breaking down the insideroutsider divide, the DA proposed:

to raise SA’s growth rate to 8% through a range of measures such as a lower tax burden for companies;

fixing education through legislation to stop teachers striking; scarceskills allowances for teachers; a nationwide bursary scheme; testing teachers’ knowledge; and setting minimum standards for principals;

fixing skills training through a vocational and apprenticeship system; relaxing immigration requirements and expanding student financial aid;

providing incentives to encourage the employment of young people through, for instance, a youth wage subsidy; the establishment of job zones with more relaxed labour laws and bigger tax incentives for companies;

enhancing the asset base of the poor by distributing shares in stateowned enterprises; offering incentives for employee share ownership schemes and employee bonuses; providing a new grant to the poor on the basis of community involvement;

encouraging the growth of small businesses through reduced regulation and red tape; a voucher support programme to small start-up businesses; providing cash-flow assis- tance to small businesses by allowing them to offset losses against another year’s profits; and establishing a venture capital fund to encourage new business growth.

Ms Zille said the incentives and grants being proposed were not “new dependency-creating grants” but were aimed very carefully at providing people with access to jobs and participation in the economy.