Notes for speech by Finance Mec Ina Cronjé Umgungundlovu Further Education and Training (FET) College Graduation Ceremony, Northdale Campus, Pietermaritzburg

I am delighted to join you in celebrating your accomplishments today. I bring warm greetings from our Premier, Dr Zweli Mkhize, who unfortunately could not be here because he has to attend a funeral.

FET colleges as solution to skills shortages

In my former capacity as MEC for Education and now as MEC for Finance I have always regarded the FET Colleges as THE key to unlock the global skills crisis.

As a democratic nation, South Africa found itself in a situation where:
* Reintegration into the global economy required changes to the methods of production and the world of work. As a result South Africa found itself with too few workers with adequate skills. Expressed differently, skilled labour supply was not able to match labour demand for skilled workers.
* At the same time, we faced an unemployment crisis of historic proportion. Unfortunately most of the unemployed were also unskilled. However, our demand for unskilled workers was not large enough to absorb the supply of unskilled labour.

The connection between poverty and a lack of education or skills is self-evident. Therefore it makes infinite sense that education and skills development is a key priority in the South African government’s war against poverty. Access to education has improved dramatically (the number of matrics who wrote their school leaver’s examination in KwaZulu-Natal increased by approximately by 50 0000 per annum since 2004 and the university population almost doubled). But we have to increase our students at our FET Colleges; and we need to do a lot more to improve the quality of our education.

According to the executive search firm Landelahni the full impact of the global skills crisis on the South African engineering industry will be felt by 2020 due to the retirement of most of the skilled people. The average age of a professional within the industry is between 50 and 55 years.

Research in Canada reportedly showed that 40% of the mining workforce is likely to retire over the next 10 years and Australia showed a similar trend.

This is but one field where there is a mismatch between demand and supply. Not to mention our country’s information technology (IT) backlogs. What aggravates the situation is the fact that we still tend to be demand-driven and focus on the short term. We have to think long term and be pro-active.

Employers want skilled people and a straight matric qualification very often leaves you semi-skilled in the job market. Our matriculants leave school mainly with a theoretical background, not always useful for the kinds of specific tasks needed in the job market.

Therefore a person who adds practical training as a mechanic, a hairdresser, a tour guide or a chef, seems to have a much better chance of finding a job today.

Institutions, like the Umgungundlovu FET College, are a key part of the strategy to lessen or preferably eliminate the mismatch between labour demand and supply.

The saying now goes, “Don't waste time learning the ‘tricks of the trade.’ Instead, learn the trade.” This is exactly what our FET College students are intended to do.

And today we are celebrating the success of our graduates and achievers!

Part of a community

We are also honouring our proud parents today. Our compass is the values instilled by us by our parents, our schools and our colleges. Those values help us to grow up as human beings who will contribute to society. While we should focus on excellence in our studies, we should never forget that education and learning goes much further.

When we speak about education it is about the intellectual, emotional, cultural and social development of a person, not only the academic side. It is no good developing a one-dimensional person, who is good at fixing computers or serving gourmet meals at a restaurant but does not know how to be a good neighbour. Academic excellence is of course important, but our country cannot afford for us to live on our own planets, disengaged from society and communities in which we live, work and play.

Congratulations

Looking around, I am confident that we have a new cohort of people who will do our province and country proud. It is you who will drive our future economic success and you should all be very proud of yourselves.

Today we have our very first NC(V) graduates – our students who took the wise decision to opt for a vocational rather than an academic matric qualification.

We are also conferring 170 national diplomas to students who have obtained their N6 qualification at the College and have served the mandatory in-service training in industry.

Many of you attended classes at night while working full-time during the day. We appreciate your dedication and commitment.

With less than three weeks before kick off, we are also very excited to award certificates of merit to students who have been prepared for employment during the 2010 FIFA Soccer World Cup. When say “Felicitaciones” you will know that I am congratulating the students, who have been taught Spanish to assist the Paraguay team, who will be based at Michaelhouse in the Midlands. Apparently I also say “Félicitations” to the students who studied French.

Congratulations on your success. We know it could not always have been easy, not academically and in many instances not financially. But you persevered and today is your moment of triumph.

I also thank the lecturers and staff for their dedication to our students. I know that you are there for your students when the going gets tough, when deadlines loom, but also when the going is good.

Partnerships

I know the Umgungundlovu FET College cherishes partnerships with the industry, local government and our friends in Finland, Belgium, Korea and the US. It is by working together that we can achieve more.

Let me make myself useful

Matthew Crawford writes in his book, Shop Class as Soulcraft that the global recession, has opened the question of what a good job looks like – of what sort of work is both secure and worthy of being honoured. To many smart and ambitious people Wall Street for example has lost its lustre as a destination. “Out of the current confusion of ideals and confounding of career hopes, a calm recognition may yet emerge that productive labour is the foundation of all prosperity. The meta- work of trafficking in the surplus skimmed from other people's work suddenly appears as what it is, and it becomes possible once again to think the thought, "Let me make myself useful," Crawford says.

It is this attitude our Province and country needs.

Productivity in the workplace

As much as we need a skilled labour force, we also need to address productivity in the workplace.

Research has indicated that South Africa has relatively strong average labour productivity. However, we do not fare well when compared to the large emerging economies (Brazil, China, India and Indonesia). Together the emerging economies are regarded as an important engine for world growth. But while we work together we are also in competition with each other. In terms of labour productivity a comparison of the five “BIICS” countries (in a 2008 Economic Assessment of South Africa conducted by the Organisation for Economic Co-operation and Development (OECD)) indicated that we have the lowest GDP per person employed.

This opens the debate on work ethics. Time management is of paramount importance in this regard. The manner, in which employees manage time and other resources in the workplace, has a direct bearing on overall output. As individuals, workers contribute to a critical mass of lost man hours daily, weekly, monthly and annually.

Productivity improvement is not a job for specialists only – it should be a way of life for everybody. It starts with attitude:
• When you enter the workplace, ask yourself every few hours, “Is this the best use of my time today?” Always think of better ways to do things – work smarter and harder.
• Productivity includes commitment – seeing a matter through and remaining dedicated to that task even when faced with challenges
• Being accountable for your actions will ensure that you are more productive by doing everything right the first time.
• Avoiding wastage and using your resources more effectively, including your time, will not escape the eyes of the people that matter.
• See yourself as one of the most important productive assets the world has. Whatever you do, you play an important part in making our country more competitive.

By being more productive and finding better ways of doing things we are contributing to the economy and helping to improve the lives of all South Africans.

Integrity and transparency

To me work ethics and integrity go hand in hand. Integrity is what creates peoples’ trust in you. You cannot compromise on your standards. Remember, people will judge you by your actions, not your intentions. As someone has said, “You may have a heart of gold – but so does a hard-boiled egg.”

The world is demanding greater transparency – both in government and the private sector.

In the competitive global world governments must – now more than ever before – ensure that their own houses are in order to drive efficient and effective governance, and to reduce wasteful spending while protecting core public services.

Therefore Government has taken a firm stance against fraud and corruption. There will be many opportunities and temptations to “earn” something extra and to cut a corner. Just don’t do it!

Your integrity is priceless. You have worked hard to get where you are – do not jeopardise your future by ever compromising when it comes to doing the right thing. It is simply not worth it.

Opportunities

Use the opportunities that government and the private sector offer. While you may have graduated today, it is an attitude of “lifelong learning” that will take you to places.

If you don’t further your studies, try to get involved in programmes offered by one of the Sector Education and Training Authorities (Setas). To get initial work experience it is often necessary to work for a pittance to get your foot in the door. It is better than sitting at home and lamenting.

Government is also in the queue for “scarce skills.” In addition there are internship programmes in all government departments and in the private sector, which are designedto give you work experience. The envisaged wage subsidy system that will subsidise employers who employ inexperienced young people will also increase the potential pool of employed people substantially.

Government has several initiatives to assist small enterprises. Our country needs entrepreneurs. But it is important to realise that opportunity will not find you, you must find opportunity. If you sit back and lament instead of being pro-active you are doomed to a career of waiting for something “good” to happen to you. Be a “go-getter” – go out and look for opportunities, or even better, create opportunities for yourself and others. Be an entrepreneur.

It is up to you to MAKE IT HAPPEN. It reminds me of a story about a large shoe company that sent two sales representatives out to different parts of the Australian outback to generate business. The company received telegrams from both agents. One said, “No business here. People don’t even wear shoes!” The second said, “Great opportunity here… the people don’t even wear shoes!”

Your future is in your own hands. In the words of Jean Nidetsch, “It is choice – not chance – that determines your destiny.”

I thank you.

Issued by: Provincial Treasury, KwaZulu-Natal Provincial Government
22 May 2010
Source: KwaZulu-Natal Provincial Treasury (http://www.kzntreasury.gov.za/)

Province

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