Budget Vote Speech on Trade and Industry by The Hon. A. Harding MP
2004-06-22. Madam Deputy-Speaker, Honourable Members, The ID would like to congratulate the Hon Minister Mr Mephiswa on his appointment to the Portfolio and wish him well in the position.
The ID welcomes the Department's new
policy initiatives to support small businesses such as the APEX fund
and other measures. We are however concerned about the high failure
rate of SMME's which continues despite various policy support measures
designed to assist the sector. The increase in bureaucracy coupled with
the myriad of legislation in respect of skills development means that
the compliance burden and administrative costs force many SMME's to be
non-compliant or sell off their enterprises.
The ID therefore believes that a dedicated small business unit should be established in the DTI. This unit will serve as a one stop shop catering for all small business needs ranging from advisory services, registrations, access to finance, etc.
The ID supports the new black economic empowerment legislative framework because the Bill has resulted in many industries developing their sector BEE charters and as a result substantial deal-making has occurred. However, the marginalised in society have not benefited much from these BEE transactions. Most of the BEE transactions are equity buy-ins financed with debt thus leaving PDI shareholders with huge debt payoffs over long time periods. As a result these shareholders will have to wait a long time before they enjoy any real financial benefit. Also, BEE has not been broad based and it is the preserve of a few well connected dealmakers. The establishment of the BEE Advisory Council to the President should include representation from community based entrepreneurs, NGO's and unions which would give more strategic direction for deal-making at the lower end of the spectrum. The ID urges Government to monitor compliance not via scorecards which is technical instrument but also develop an integrated measuring instrument which encompasses operational issues.
The ID welcomes the various Bilateral trade commissions formed with other African states as it supports the broader intentions of trade and investment of the NEPAD programme, encouraging greater inter-African trade of goods and services.
In conclusion the ID hopes that the micro economic strategy of the Department will provide a linkage between the formal and informal economies and that there will be a tighter alignment with the various provincial strategies looking at sectoral level reforms.
Trade and Investment South Africa (TISA) needs to be more coherently integrated with other marketing / investment seeking agencies so as attract more foreign direct investment into South Africa.
The placement of trade attaches to strategic diplomatic missions abroad will assist in strengthening South Africa's capability to market with one voice. In this regard a closer working relationship between Departments of Trade and Industry and Foreign Affairs is required.
I thank you.
The ID therefore believes that a dedicated small business unit should be established in the DTI. This unit will serve as a one stop shop catering for all small business needs ranging from advisory services, registrations, access to finance, etc.
The ID supports the new black economic empowerment legislative framework because the Bill has resulted in many industries developing their sector BEE charters and as a result substantial deal-making has occurred. However, the marginalised in society have not benefited much from these BEE transactions. Most of the BEE transactions are equity buy-ins financed with debt thus leaving PDI shareholders with huge debt payoffs over long time periods. As a result these shareholders will have to wait a long time before they enjoy any real financial benefit. Also, BEE has not been broad based and it is the preserve of a few well connected dealmakers. The establishment of the BEE Advisory Council to the President should include representation from community based entrepreneurs, NGO's and unions which would give more strategic direction for deal-making at the lower end of the spectrum. The ID urges Government to monitor compliance not via scorecards which is technical instrument but also develop an integrated measuring instrument which encompasses operational issues.
The ID welcomes the various Bilateral trade commissions formed with other African states as it supports the broader intentions of trade and investment of the NEPAD programme, encouraging greater inter-African trade of goods and services.
In conclusion the ID hopes that the micro economic strategy of the Department will provide a linkage between the formal and informal economies and that there will be a tighter alignment with the various provincial strategies looking at sectoral level reforms.
Trade and Investment South Africa (TISA) needs to be more coherently integrated with other marketing / investment seeking agencies so as attract more foreign direct investment into South Africa.
The placement of trade attaches to strategic diplomatic missions abroad will assist in strengthening South Africa's capability to market with one voice. In this regard a closer working relationship between Departments of Trade and Industry and Foreign Affairs is required.
I thank you.
