Linda Ensor
4 June 2009
Cape Town — The deep recession gripping the country would restrain implementation of the government's socioeconomic plans and require state support for the vulnerable and those facing retrenchment, President Jacob Zuma said in his state of the nation address in Parliament yesterday.
Zuma committed the government to an ambitious job-creation programme to help redress the worsening jobs crisis, which is thrusting thousands of workers into unemployment every month.
He promised about 4-million jobs would be generated by 2014 -- about 500000 of them before December.
These ambitious targets would be achieved by fast-tracking the second phase of the expanded public works programme, which created 1-million jobs in the four years from 2004 to last year.
More than R4bn had been set aside for the second phase called the community work programme, which would offer a minimum level of regular work and focus on home- based care and community health projects.
Zuma said the aim of the second phase would be to improve the quality of life in communities and provide work.
He highlighted several initiatives "to minimise the impact of this downturn on those most vulnerable". Planned spending of R787bn on social and economic infrastructure over the next few years would play an important role, and provide some sustenance for an economy in a downwards spiral.
To reduce job losses, a "training lay-off" scheme would be introduced, Zuma said.
In-principle agreement had already been reached between the government and its social partners on the plan, which would involve workers earmarked for retrenchment because of the economic downturn being kept in employment for a period of time to be reskilled. The sector education and training authorities would be brought into the programme.
The Commission for Conciliation, Mediation and Arbitration would continue to help employers and workers to find alternatives to retrenchment. So far more than over 4000 jobs had been saved in this way, Zuma said.
Social grants, now received by more than 13-million people, would still be necessary to alleviate poverty, but Zuma said they would be linked to jobs or economic activity "to encourage self-reliance amongst the able-bodied".
Other key economic initiatives would be relieving the regulatory burden on small businesses and introducing a single integrated business registration system to improve customer service and reduce the cost of doing business.
The roll-out of the digital broadcasting infrastructure and signal distribution transmitters would expand broadband capacity and reduce the cost of telecommunications, he said.
While acknowledging that the recession would affect the pace at which SA addressed its social and economic challenges, Zuma said "it will not alter the direction of our development".
To deal with the crisis, the government would implement measures based on the framework for SA's response to the international economic crisis agreed to by the government, labour and business in February this year. These measures would involve sector specific strategies, for instance for the motor and textile industries aimed at reversing their current misfortunes.
A scaled-up industrial policy action plan would be developed to focus on lead sectors such as automotive, chemicals, metal fabrication, tourism, clothing and textiles as well as forestry. Attention would also be paid to services, light manufacturing and construction, among others, in the quest to create decent jobs, Zuma said.
The Industrial Development Corporation had developed a programme to fund companies in distress. Also, the government would buy more goods and services locally "without undermining our global competitiveness or pushing up costs beyond acceptable levels".
Government procurement, licensing and financial support would be used to assist small and medium enterprises and to promote broad-based black economic empowerment and affirmative action, Zuma said.
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