EFF’s austerity claim ‘just sloganeering’
• Deputy leader Floyd Shivambu’s critique was like lecturing a surgeon on how to operate, says finance minister
Finance minister Tito Mboweni and EFF deputy president Floyd Shivambu exchanged sharp words in parliament as they argued whether the budget presented on Wednesday was an austerity measure. On Thursday, Mboweni and his team from the Treasury appeared before members of four parliamentary committees of finance and appropriations to brief MPs on the details of the budget and to answer questions.
Tito Mboweni and EFF deputy president Floyd Shivambu exchanged sharp words in parliament on Thursday as they argued whether the budget presented on Wednesday was an austerity measure.
On Thursday, Mboweni and his team from the Treasury appeared before members of four parliamentary committees of finance and appropriations to brief MPs on the details of the budget and to answer questions.
THE IMF CONCEDED AUSTERITY BUDGETS HAD NEVER WORKED ANYWHERE. THEY SIMPLY WORSENED POVERTY AND STIFLED ECONOMIC GROWTH
Shivambu strongly criticised what he said was an austerity budget that was being imposed in an era of high unemployment and huge debt-to-GDP ratio. “What is the economic basis for this? What economy has ever been saved through austerity measures? Where?” he asked.
Shivambu said the IMF had conceded that austerity budgets had never worked anywhere. They simply worsened unemployment and poverty and stifled economic growth.
There was no science or economic logic in cutting the budget by R260bn and the wage bill by R160bn, he said.
“This is the most neoliberal budget that has ever been presented in the postdemocratic dispensation by a minister of finance. It is not going to achieve anything. It is just going to make things worse.”
In his reply to various MPs’ questions, Mboweni said there was no substance to Shivambu’s comments, which were just sloganeering at the “lowest common multiplier”.
“This one multiplies into a large amount of nothing.”
He recalled a politician who likened being attacked by Sir
Geoffrey Howe in the British parliament to being savaged by a dead sheep. “I feel like that with honourable Shivambu ... no substance but sloganeering.
“It’s as if I am going to lecture a heart surgeon on how to operate. I can’t lecture a heart surgeon on what to do,” he said
Shivambu hit back, saying
Mboweni overrated his understanding of economics.
“There is a crisis under your leadership now. It is a fact and we must criticise you. Don’t become foolish.”
Finance committee chair Joe Maswanganyi called the meeting to order at that point.
The Treasury has been criticised for planning a huge cut in the public sector wage bill without having opened negotiations with the public-sector trade unions.
WAGE CUTS ARE NOT A SURPRISE TO ANYBODY INVOLVED IN THE PROCESS. BUT NATURALLY PEOPLE ARE GOING TO SAY THINGS
But Mboweni said that it is not correct that there has been no conversations about planned cuts in the public-sector wage bill. There have been multipronged conversations including those among the political leadership at the level of the alliance involving Cosatu, the SA Communist Party and the ANC, and between himself and public service & administration minister Senzo Mchunu and some public sector trade unions. Conversations within the National Economic Development and Labour Council will continue on Friday when Mboweni briefs the council about the budget.
A formal submission was made to the Public Sector Bargaining Council this week.
“So this is not a surprise to anybody who has been involved in the process. But naturally people are going to say things publicly,” Mboweni said.