“He confirmed that the increase in government wages, corruption and wasteful expenditure of state funds is a priority that must be brought under control to get to the point where the government can hire adequately skilled employees,” Louis Meintjies (president of TAU SA) said in a statement.
He added that the organisation is delighted that the minister is serious about getting the income and expenses columns in balance.
According to Meintjies, the minister’s announcements should be looked at in context as South Africa is still caught up in uncertain policies which cannot guarantee economic growth. Issues like expropriation without compensation and the push for transformation at the cost of hiring skilled employees, are glaring examples.
The focus on the development of infrastructure with an allocation of R10 billion over three years is according to TAU SA, a step in the right direction.
According to TAU SA, it is good to see that the government committed to ensuring a stable electricity supply by restructuring the sector. Strict conditions should, however, be linked to further financial support.
“Those conditions must ensure the taxpayer’s money doesn’t land in a bottomless pit – as is the case with SAA and other state-owned entities,” Meintjies said.
“Despite SAA being under business administration, the goal is still to restructure the airline radically. The skill and effectiveness that must bring this change about do not currently exist in SAA. This could be what stops Mr Mboweni from getting his win.”
The 25 cents per litre increase in the fuel levy is a blow to TAU SA members as mainly all are from the agricultural industry. This increase will ultimately have a significant impact on the economy.
“TAU SA is satisfied with the allocation of R495million to improve compliance with biosecurity and support exports, specifically in light of the catastrophic consequences of foot and mouth disease outbreaks,” Meintjes continued.
He said the organisation is however, apprehensive about the R500 million allocated to complete land claims, as it is clear that government is not considering to apply expropriation with compensation.
“This is a big red light that will bring even more uncertainty and negativity on investors trust.”
In light of the high amounts for and emphasis on education, TAU SA plans to call on the government to take strict action against students who damage infrastructure through violent protests.
“Guilty parties should lose their privilege to study, forthwith. Police should take firm action against any person, but specifically labour unions, who try to get their way by looting,” Meintjies concluded.
