Incentives linked to ‘deliverables’
THERE will be no more statesponsored free rides for the private sector, the ANC’s national general council said yesterday.
All incentive programmes across the government would be reviewed to ensure that they were linked to “deliverables”, the party’s economic transformation commission head, Enoch Godongwana, told reporters yesterday.
The country is currently facing a jobs crisis and urgently needs to find ways to boost the economy.
The private sector has come under criticism from the ANC and its allies for taking a backseat when it comes to creating jobs and growing the economy.
Godongwana announced that a number of new support programmes would be rolled out to assist sectors in trouble, such as mining and steel.
“But it cannot be unconditional… it must be subject to commitments… from unions and companies to further investment in the sector and create jobs,” he said. “A quid pro quo is needed.” He said that because of the limited fiscal space, there would have to be a reprioritisation of the budget away from consumption, eliminating waste and fighting corruption.
Although Godongwana was at pains to make it clear that the NGC had not recommended a wealth tax on the super-rich, he said the commission did want a study on the matter.
A mooted wealth tax has been on the wish-list of the labour movement and the SACP for many years.
But Godongwana said: “None of us in the room are tax experts… We need to explore if it is feasible.”
On the government’s massive infrastructure spend, the ANC wanted the government to explore a “pact” with the financial sector to look at how best to fund it.
While the government is committed to the infrastruc- ture rollout, there have been challenges to keep projects within budget and difficulties with financing some of the projects leading to delays.
“How do you fund on terms that are favourable for this kind of expenditure?”
Central planning for the economy needed to be ramped up and housed in the Presidency, Godongwana told reporters. This would not, however, replace or supersede the Economic Development Department. A similar body would be set up for the ANC.
On the mining industry, the ANC had full confidence in Operation Phakisa, which gets under way later this month, to deliver the goods.
Godongwana appealed to the social partners to join hands with the government as the magnitude of the task required mass mobilisation and buy-in from all.
None of us in the room are tax experts