NC economy needs more than half-hearted promises - DA

THE DA in the Northern Cape believes that the MEC for Finance, Economic Development and Tourism, Abraham Vosloo, has missed an ideal opportunity to table "a real plan" for economic growth and service delivery in his budget speech.

DA provincial spokesperson on finance, Fawzia Rhoda, pointed out that Stage 4 load shedding was adding to pressures created by increased fuel and food prices.

"The Northern Cape’s economy needs more than half-hearted promises repeated from previous years. With one out of every two people in the Province unemployed and with 60 percent of small micro and medium enterprises (SMMES) at risk of closing their doors permanently, the provincial budget should be used to create an environment conducive for the sustained creation of sustainable economic opportunities," said Vosloo.

She stated that the MEC had chosen to repeat half-baked promises instead.

"The half-hearted promise that economic projects led by the Northern Cape Economic Development Trade and Investment Agency (Nceda) and other agencies will be fast-tracked does not inspire much confidence. After all, Nceda was expected to drive the designation of a special economic zone in Upington by 2014. It is now 12 years and millions of rand later, but all that has happened is that the special economic zone is now intended for Namakwa."

Rhoda added that the Northern Cape economy was "doomed for failure".

"The SMME sector that is the backbone of the economy is being crippled by the persistent reluctance of organs of state to pay their bills on time, every time.

"Business needs an implementable plan now, not a vague promise of accountability to come."

“Not only revenue was affected but the processes of procurement could not move with speed, leading to delays in spending of conditional grant funding. To circumvent the situation we are looking at an all-inclusive programme of action that will detail tailor-made support mechanisms to our municipalities. This will be accompanied by signing of service delivery agreements between Provincial Treasury and municipalities.”

Vosloo stated that a team of financial experts from Provincial Treasury would assist struggling municipalities.

He reported that they had managed to contain the deficit budget without impacting on service delivery programmes, where finances were reduced to R5.3 billion in March 2021.

“This will ensure that any future additions on the equitable share are directed towards emerging priorities in the Province. Additional resources have been made available in the 2022 framework to deal with specific national and provincial priorities.”

BUDGET SUMMARY

Governance and administration: R4.1 billion Seed funding for an Information Technology Shared Service Centre (ITSSC), housed at the Office of the Premier: R100 million and R10 million to resuscitate the ITSSC initiative

Government communication strategy: R5 million

Municipal interventions in the Province: R35 million

Caucus Fund: R10 million

Security upgrades and protection of national key points: R4 million

Transfer of Early Childhood Development function from the Department of Social Development to the Department of Education with effect April 1, 2022: R86 million

Department of Education: R410 million Department of Social Development to support welfare non-governmental organisations: R26 million

Economic Sector: R11 billion

Department of Roads and Public Works for the payment of rates and taxes of municipalities: R20 million

Upscaling job opportunities through the Expanded Public Works Programme (EPWP): R30 million

Northern Cape Economic and Development, Trade and Investment Agency: R10 million

Department of Cooperative Governance, Human Settlements and Traditional Affairs for the Informal Settlements Upgrading Partnership grant: R60 million

Department of Roads and Public Works Provincial Roads Maintenance grant: R29 million