Convenor of the Hellenic, Italian and Portuguese Alliance, Mr Stavros Nicolaou
Ministers, Premier, MECs present
Distinguished guests
Good evening and thank you for hosting us again.
When we met on 15 September last year, we ran out of time and I could not respond to all of your questions. It was important for us to return and respond.
In our last meeting we re-affirmed that we firmly believe in a society that is based on the principles of non-racism, non-sexism, freedom and democracy.
We believe in a South Africa that is inclusive, and respects the rights of all individuals regardless of their historical and cultural backgrounds. The Constitution provides an important foundation for a democratic society.
It pronounces that various cultural, religious and linguistic communities should be bound by one common objective of building a nation united in its diversity.
An effective and efficient government is essential to this objective.
When I spoke to you last year we were approaching the national general elections. Many of the concerns and issues that concerned you last year have found their way into our national policies.
In last year’s meeting you raised a number of issues, including crime, the economy, social development, education, health, nation building and social cohesion. Following that meeting I received a list of consolidated questions, which now runs to nine pages. I won't be able to answer every question individually, but will do my best to respond on the main issues.
How can government be better coordinated?
Since the elections we have set out to improve the functioning of government.
We restructured government departments following a review of what had worked and hadn't worked over the past 15 years. We had also been informed by several meetings we had undertaken with the public, including the one we held with you.
The overall reconfiguration of government is aimed to ensure better coordination, integration, and an end to a 'silo approach' to conducting government business.
This was a central consideration in the realignment of government announced in May this year. We introduced some new ministries such as the two Ministries in the Presidency, the one responsible for the National Planning Commission, and the other for Performance Monitoring and Evaluation. We also split certain portfolios, such as minerals and energy, to ensure greater focus on critical areas.
We renamed some ministries, such as the Ministry of Police, to reflect the need to emphasise certain priorities. This realignment of government is already beginning to create a different culture of cooperative governance, which we hope will cascade to all levels of society.
Why can we not have free tertiary education?
During our previous interaction, some people raised concerns about education, especially our commitment to have free education for the poor up to undergraduate level.
We are not yet at a stage where we can provide free higher education for those who cannot afford it. However, we are aiming for a situation where no student who qualifies academically is prevented from attending a university or a college for lack of funding. Our main instrument for this is the National Student Financial Aid Scheme, to which we will be committing further resources.
How will you address the problem of scarce skills?
The issue of importing scarce skills was also raised. Discussions have been held with the Department of Home Affairs to facilitate and enable people with scarce-skills to be prioritised for entry into South Africa. We must hasten to add that the Ministry for Higher Education has been assigned to ensure coherence and specialised focus in addressing skills shortages in the country.
How will you align trade and industrial policy?
We were asked about how we would align trade and industrial policy. Our approach will combine intensified efforts to expand access to key markets with measures to safeguard our domestic markets from unfair trade practices. We will act within the space allowed by World Trade Organisation (WTO) rules to prevent the destruction of the economy’s productive capacity by practices such as subsidies and dumping.
We are committed to reducing the costs of doing business. We are undertaking a massive investment in economic infrastructure, and are working to increase the efficiency of public entities. We are also strengthening competition legislation to prevent anti-competitive conduct.
The last time we met, some of you asked about the type of economy we envisaged then, and wanted to know whether we preferred a free market or what was described as a "leftist type of economy". We support a mixed economy that combines an element of state intervention, ownership and regulation, with private ownership and competition.
Our goal is to achieve the appropriate balance of these elements to achieve the desired objectives of social and economic development. We must also recognise that South Africa's inherited realities, the economic marginalisation of the majority, and high levels of inequality and poverty all create the particular need for an activist state. It should be a State that is equipped to address our developmental challenges.
How can we attract foreign direct investment?
Our policy approach seeks to encourage foreign direct investment, as well as domestic productive investment, rather than short-term portfolio flows, which can be destabilising. We are not unique internationally in supporting this approach. Methods used by various states to achieve this objective include a tax on portfolio withdrawals, and various forms of foreign exchange controls.
We will continue to encourage productive investment by building the required human capital base, and investment in physical infrastructure.
Institutionally, we will also do things better, by streamlining processes that will assist foreign nationals in setting up business. A one-stop shop to help potential foreign investors to set up business without undue delay is under consideration. International experience demonstrates that FDI follows large-scale domestic investment, rather than the other way round. We have to demonstrate confidence in our own economy, before we can expect foreigners to do likewise. Therefore a key priority is to raise the levels of domestic investment.
Are we likely to see greater liberalisation of exchange controls?
Even traditional supporters of a more liberal exchange control regime have acknowledged that South Africa benefited during the global economic crisis from having exchange controls in place. Government will be very careful not to deepen the volatility of financial markets. As past financial crises have repeatedly demonstrated, beyond a certain point, financial liberalisation tends to be destabilising.
How can we create more jobs?
This government has placed the creation of decent work at the centre of its economic policies. The creation of decent work encompasses the creation of sufficient numbers of new jobs that will significantly and progressively reduce the number of our people in unemployment.
It also includes ensuring that these jobs are of sufficient quality, so that working people do not live in poverty, or without the basic benefits required to live a decent and stable life. The government has now translated the ANC’s election manifesto into a concrete programme, reflected in government’s Medium Term Strategic Framework for 2009 to 2014.
We face the particular challenge of pursuing our developmental objectives in the context of the global economic crisis. An important element of government's approach to this crisis will therefore be the forging of social partnerships based on the framework negotiated at Nedlac in February this year. This agreement aims to use all mechanisms at the disposal of the state, and broader society, to protect existing jobs, and create new jobs, where possible.
How do we improve access to capital for middle class businesses?
We have already begun a process to review the manner in which development finance institutions issue credit. Our approach is that, while these institutions should maintain sound financial management, they should at the same time be in a position to bear the risk that private banks will refuse to take.
Therefore, in order to broaden access to capital, these institutions will be mandated to support entrepreneurial initiatives, especially by those businesses located in underdeveloped areas.
Furthermore, through the Financial Services Charter, we are looking forward to an agreement on how the private financial sector can fulfil its Broad-based Black Economic Empowerment (BBBEE) targets and to help transform our economy.
What is your grand plan for government?
We aim to embark on proactive and coordinated development planning, rather than a short-term and reactive approach. The lesson of many developmental states is that long-range planning is indispensable in order to focus the resources and energies of society into agreed objectives around an overarching vision.
This government has set out 10 strategic priorities for its five year term.
We are also planning a process of broad social consultation on a longer-term vision for the next 15 to 20 years.
Does government plan to fix the price of medicines?
It is currently not government policy to fix prices on basic commodities.
We have rather focused on the implementation of our competition laws to achieve a reduction in the price of these commodities. However, current evidence suggests that this approach by itself is not enough, as companies continue to collude, and prices continue to rise, despite the international decline in prices, and inputs.
Therefore we may need to consider other options, to ensure that our people are not denied access to basic necessities, particularly in this time of economic stress. There are a range of measures which are used widely in other countries to protect the poor, and publicly provide basic commodities, or control profiteering.
While some will oppose this as interference in the market, there are no holy cows when it comes to the basic nutrition and well being of our people, particularly our children. We therefore welcome proposals in this regard.
Will the use of chapter nine institutions exonerate those up for corruption?
The Chapter nine institutions, such as the Public Protector and the Auditor-General, have been established to strengthen constitutional democracy and not to undermine it. The Constitution states that these institutions are independent, and subject only to the Constitution and the law, and must be impartial and must exercise their powers and perform their functions without fear, favour or prejudice. In order to ensure that these institutions are indeed independent from the Executive they report directly to Parliament.
The Public Protector is empowered to investigate a litany of improprieties in public administration; and citizens may report a matter directly to the Public Protector. There are a number of examples whereby the Public Protector was asked to investigate allegations of corruption against high profile individuals. This was undertaken without any fear or favour.
The duty of the Auditor-General is to audit the accounts of government at all levels and thus to provide oversight on the public finances. In August 2008, the Auditor-General published a Report in which a number of senior managers were implicated in conflict of interest. The challenge we must now address is how to respond to the findings of the Auditor-General to ensure that the problems are corrected. The reports of both the Auditor-General and the Public Protector are accessible to the public free of charge.
How do you intend to root out corruption at all levels of government?
Since 1994 South Africa has put measures in place to fight corruption.
There is legislation in place such as the Prevention and Combating of Corrupt Activities Act, the Promotion of Access to Information Act (PAIA), among others.
Other measures include the declaration of financial interests by senior managers and codes for promoting ethical conduct within the public service. We also have the National Anti-Corruption Hotline for the reporting of alleged cases of corruption within the public service. We must however improve the implementation and monitoring of these instruments so that they help us to root out corruption.
What is your vision for women in the country?
We want to create a society where women can live their lives free of fear, degradation and brutalisation. It is a society where women would not have to suffer from the effects of poverty, disease and the effects of harmful traditional practices. It is a society where women have equal access to opportunities, where rural and marginalised women have access to basic services that make their lives better.
How will you tackle poverty?
We are working to expand social protection with a comprehensive social security system that embraces medical support, and social assistance to the elderly, unemployment and other vulnerable people. An important element of this is the planned introduction of a National Health Insurance (NHI) scheme.
The NHI scheme will be implemented in a phased manner to allow for consultation, policy making and a review of legislation. Through the NHI, health care will be accessible at no cost to all. Services will not be delivered on the basis of an ability to pay. We will value your inputs once the consultation process begins.
How are you going to tackle crime?
As we said in the State of the Nation Address, we are in the process of establishing a transformed, integrated, modernised, properly resourced and well-managed criminal justice system.
Our intention is to improve the efficiency of the courts, and enhance detective and forensic services as well as the prosecutorial capacity. We have to enhance the skills and increase the number of investigators, forensic experts and active duty police personnel.
Serious attention will be given to combating organised crime, and crimes against women and children. We are particularly concerned with violent crime, and the prevalence of violence in the perpetration of robberies. In the last few days, we have seen a spate of such robberies in a number of shopping malls. We need to act swiftly, working together with all stakeholders, to ensure that we halt such crimes. To win the battle against crime, we have to mobilise the population and all sectors. We know that we are united with our people in ensuring zero tolerance for criminality, by all possible means. We urge your support and partnership in this important campaign. We are open to suggestions on how we can best work together to make our communities safer.
How does the new government plan to govern?
In the inauguration speech we called for renewal and a partnership for reconstruction, development and progress. The President committed himself to the service of the nation with dedication, commitment, discipline, integrity, hard work and passion. We called for faster service delivery and said that the dreams and hopes of all the people of our country must be fulfilled.
There is no place for complacency, no place for cynicism, no place for excuses.
The leadership style that will help us achieve all this is one that promotes inclusivity and participation by all.
Our communities are committed to South Africa. How can we help you?
When we last met, we agreed that it should be the beginning of a process of interaction. This is not the last time we are meeting, and the interaction must continue. However, beyond continuing this dialogue, we need to shift our interaction to look at practical projects we can undertake together to build our society.
Before I end, I wish to put a challenge to the HIP Alliance and to your communities to identify areas where we can work together to address some of the challenges you have raised, in pursuit of our shared vision of a better South Africa.
We stand ready to partner with you as this country belongs to all of us.
Working together we can do more.
I thank you.
Issued by: The Presidency
13 August 2009
Source: The Presidency (http://www.thepresidency.gov.za)
