STATEMENT BY BANTU HOLOMISA, MP -
UDM welcomes the fact that President Mbeki is reportedly finally looking at
innovative solutions to create jobs, such as the possibility of subsidising
businesses for the number of jobs they create. The UDM has argued repeatedly
since its inception that South Africa requires rapid job creation through
enterprise development; subsidising businesses for creating jobs is half a step
in the right direction. Such a proposal will encourage job creation amongst
existing businesses, but unfortunately it does not encourage the growth of new
businesses and it is only by creating a whole generation of entrepreneurs that
we can hope to halt the unemployment avalanche.
The UDM urges Mbeki to consider other innovative solutions which are aimed
exclusively at enterprise development.
1. The restructuring of state assets provides a once-in-a-lifetime opportunity
for South African entrepreneurs to gain control over aspects of established
industries and the potential to become business leaders for the continent as
these industries expand into Africa and the world.
2. Innovative financing options, instead of subsidies, to assist small
entrepreneurs, such as local stock exchanges, small and medium business
investment corporations and community development banks
3. Abolishing the Marketable Securities Tax on investment in the Venture and
Development capital markets of the JSE will boost the depth and liquidity of
these sectors and facilitate the listing of more small companies, whilst
encouraging the flow of foreign investor funds to these sectors.
These ideas and many others have been offered as solutions to Mbeki on many
occasions, not only by us but also by a wide range of stakeholders in society.
Sadly our appeals have fallen on deaf ears, and now we hear that it takes
specialists from the IMF and World Bank to tell him what many South Africans
have been saying for years: We need special efforts to create jobs! Of course we
must wonder whether President Mbeki's sudden realisation of this fact is not
linked to the pending elections.
13 November 2000