Minister Mildred Oliphant: Department of Labour and Limpopo Economic Development partnership launch

Remarks by the Minister of Labour, Mildred Oliphant, on the occasion of the launch of the partnership between the Department of Labour and the Limpopo Economic Development Agency held on Saturday,in Limpopo

Programme Director,
MEC Mr Seaparo Sekoati
Chairperson of the LEDA Board, Mr Mofasi Lekota
Chief Executive Officer of LEDA, Mr Ben Mphahlele
Executive Manager of the Limpopo Economic Development EDF &LEDA, Mr Humphrey Maphutha
Commissioner of the Unemployment Insurance Fund, Mr Teboho Maruping
Distinguished guests,
Ladies and gentlemen

I must congratulate the leadership collective of the province for initiating this much-needed and timely intervention. The business case for skills revolution can be found in every notable journal, including those of the Harvard University Professors. There is sufficient evidence that all successful economies were built-on and continue to be built-on skills. 

For example, at the centre of the Indian economy, is IT skills and pharmaceutical manufacturing capabilities. China is reputable for its electronics and the ability to manufacture anything you think off and industrial skills, Germany for its engineering skills.  Even the inevitable Fourth Industrial Revolution that everyone is talking about is based on skills and technological advancements which is also a by-product of skills. 

It seems to me that we have no choice but to start thinking differently and do things differently if we are to survive, and skills revolution is but one of thing we must do and do quickly.  I want to argue that our hope of survival, lies in skills revolution and paying special attention to Townships, Villages and Small Dorpies economies. It is my strong view that a focus on revitalising Village, Township and small Dorpies economies, is an excellent starting point in pursuit of realising the real meaning of radical economic transformation. Starting with empowering ordinary people in our villages, townships and small Dorpies is best way of bringing the real benefits of our democracy to the people on the ground.  I hope that these learners will be inspired not only to explore opportunities in big cities, but also right here in the small Dorpies and townships in the province.

Programme Director, Some of you will remember the General Dealers in the townships and villages of years gone by, where you could buy anything from bread to a wheel burrow.  These shops were run by our Grand Fathers, Uncles and Aunts who never had the kinds of opportunities that we have today.  Then there were also Spaza Shops, very much a township and village concept.  The question I want to ask, is where are the township and Village General Dealers and Spaza shops today, and, who runs them?
Is it because our generation are not entrepreneurial enough, or just blind to the opportunities that exist?  I believe this partnership embodies the spirit that could turn our people’s fortunes around.

I must add, that focusing on enhancing entrepreneurial prowess of our people, and creating conducive conditions for enterprise development, resonates perfectly with the observation in the National Development Plan where it says, “Entrepreneurship is the key driver for job creation and economic growth, and that 90% of jobs will be created by small and medium businesses by the year 2030.” 

Although 800 learners that are targeted through this partnership will not only assist us to reach our target, but the impact of this Venture Creation Learnership will be greatly felt in communities where the learners will establish their businesses and employ other people.  I am particularly impressed that the Limpopo Economic Development Agency will ensure that learners are hosted at different institutions within the province to get practical exposure to the mechanics of managing a business.

The commitment of the Agency to enrol 500 learners into the incubation programme for 24 months, is indeed commendable. We all know the challenges faced by newly established businesses when they start out, therefore, we welcome the offer of the Agency to hand-hold these learners until they are strong enough to stand on their own. 

I wish to encourage the learners to take this programme very seriously and work diligently to complete it.

Whilst this is a small contribution relative to the levels of unemployment that exist in the country, I believe that nevertheless, it will make some difference. I am raising this point in order to remind all of us that unemployment, using a narrow definition is by far bigger that the 800 learners that will be catered for in this programme. We must therefore understand that the challenge we face, is much bigger that anyone can imagine.

Programme Director, Let me clarify some myths about the UIF fund so called surplus. The Fund just like any insurance Fund belongs to policy holders which in this case are the workers. The Department of Labour merely administers the fund.  The monies in the UI Fund, are premiums paid by workers, with an equal contribution from the employers to cover the risk of loss of earnings under circumstance that are defined in the Unemployment Insurance Act.  Just like it happened in 2008/9 during the Global economic crisis when close to a million workers lost their jobs.  The only place that workers could turn to, to cushion the hardship associated with being unemployed, was the UIF.  Just imagine what could have happened if we said there was no money in the fund. 

However, like any insurance business, we do invest these monies to grow the pool, just in case there were to be another global or even domestic economic crisis where workers would need support of one form or the other.

i. So, Ladies and Gentlemen, the Department of Labour is not sitting on the Billions of Rands that people often talk about, but these monies are invested in many investment instruments and institutions such as the Public Investment Corporation, IDC and many others.

ii. I know for a fact that the Fund plays a big part in the national infrastructure projects in this country.  Our investments can be found in projects such as Kusile and Medupi.

iii. I know for a fact that the Fund plays a part in the Students Loans and we also play a major part in preventing job losses in companies through Productivity South Africa interventions which are funded by the very Fund.

iv. We play some role in preventing job losses through our Training Lay-off Scheme which for all intents and purposes, is funded jointly by the Fund and National Skills Fund;

v. We are also involved in various training programmes, such as the one we are launching today, that are geared towards skilling and reskilling UI Beneficiaries to facilitate a quicker return to work. 
There are many other examples that we could share with you on how we are not a mere by-stander, but an active participant in the economy. We are also not selfish by contributing only in those projects that are Department of labour-specific, but we contribute to other initiatives that are not necessarily part of our immediate mandate. We do this work because we strongly believe that creating enablers like these, will change the course that our colonisers had in mind for our society.
Let me leave you with three quotes, the authors of which, you may very well know. ONE; “Education is the great engine of personal development. It is through education that the daughter of a peasant, can become a doctor, that the son of a mineworker, can become the head of the mine, that a child of farm worker, can become a president of a great nation.  It is what we make out of what we have, not what we are given, that separates one person from another.” Close quote.
   
Two: “When you live in a poor neighbourhood, you are living in an area where you have poor schools. When you have poor schools, you have poor teachers. When you have poor teachers, you get a poor education. When you get a poor education, you can only work in a poor-paying job. And that poor-paying job, enables you to live again in a poor neighbourhood. It's a vicious cycle.” Close quote.

Three: “This work is not for yourselves – Kill that spirit of “Self” and do not live above your people but live with them. If you can rise, bring someone with you.  Do away with fearful animal of jealousy, kill that spirit, and love one another as brothers and sisters”. Close quote. A call for selflessness Ladies and Gentlemen.

I thank you

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