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"The ACDP notes that there is a substantial increase in the department's total budget allocation - an increase of 17.41 per cent in real terms from R5 126.9 bn to R6 344.3bn

The key agencies of Small Enterprise Development Agency (SEDA), National Empowerment Fund (NEF), Khula Enterprises and the South African Micro Apex all strive to fulfil the objective of accelerating economic growth, creating jobs and promoting small enterprises. Are sufficient transfers made to these agencies for proper service delivery? Whilst the number of enterprises that received support from these agencies has increased from 32 796 in 2005/06 to 186 195 in 2007/08, they have come under fire for allegedly providing inadequate support to small enterprises.

The global economic crisis has hit a number of our productive sectors very hard, slowing growth and affecting jobs dramatically.

Clearly, interventions are necessary within the private sector to counteract an excessive investment slowdown and unnecessary closures of production lines or plants.

The ACDP fully supports the NEDLAC agreement setting out the framework response (‘Framework for SA's response to the international crises). We note that government is using industrial financing and incentive instruments, and also encouraging development finance institutions to assist firms in distress. Clearly the enterprise development agencies will play a key role.

Whilst the mining industry has been assisted to a degree by the deferment of mining royalties ( saving some R1.8bn) to what degree, hon Minister, will the R870 m APDP (automotive production and development programme), which includes a production subsidy be adapted to assist the beleaguered motor industry.

Surely we also need to go a step further whereby organised labour agrees to restrain wage demands in line with productivity, business commits to continued investment and to retaining workers as long as possible, and government introduces supportive economic and welfare policies. Is this attainable or just pie in the sky?

The R787bn infrastructure expenditure remains a key fiscal stimulus to the economy. The ACDP agrees that we need to maximise industrial development by minimising imports and capacitating local engineering industries during this period.

We cannot have a situation to continue where labour prioritises job quality over quantity, and where business has little incentive to invest in job creation.

Chairperson whilst the ACDP strongly supports the reform of world trading institutions, we must complete the current Doha Round of world trade negotiations, and ensure that development aid is not scaled down. An issue of major concern relates to the Economic Partnership Agreements, with certain SADC countries breaking ranks and entering trade agreements with the European Union following the stalled Doha talks.

Hon Minister, what are the implications of this for the (SACU) Southern African Customs Union, one of the oldest in the world? Much has been said about resorting to protectionism in view of global slowdown - what are your views, and are they shared by other departments in the economics cluster.

How do we promote stricter standards of international financial governance to address the devastating effects of the global financial meltdown? We must be able to tame the excesses of unregulated financial markets. Surely the World Bank and International Monetary Fund (IMF) must become more democratic and transparent - with greater representation from developing countries.

Chairperson, the ACDP is of the view that there will be a large degree of overlap between the Trade and Industry, Finance and the Economic Development ministries. If one adds the National Planning Commission Minister in the presidency, then as pointed out by the Financial Mail, "the possibility of conflicts and power struggles is huge." This, particularly if there is a dispute as to the direction of economic policy.

The question, honourable ministers, is how you see the interaction between these various ministries taking place and what steps will be taken to avoid conflict or a deharmonised economic policy.

The Minister of Finance in response to our and other members' questions in this regard said that it was early days, yet gave the assurance that each ministry would co-operate in the spirit of cooperative governance. He added that there would be a report back shortly following discussions as to ‘how it will all work'. We are however concerned, if one has regard to the fact that Trade and Industry and Finance appeared not to see eye to eye on various issues under the previous ANC administration.

The danger is that economic policy may become deharmonised. A harmonised economic policy that provides certainty and predictability is crucial to attracting both foreign investments, particularly in a climate of global economic recession.

One need only look at the recent debacle surrounding Icasa's attempt to prevent the Vodacom listing to see the impact that regulatory uncertainty and lack of sound leadership has on investors. The currency lost 3 per cent within hours of the court application being launched. Thankfully the application did not succeed.

When Public Enterprises Minister Honourable Hogan warned that unprofitable state-owned enterprises could be sold if they continued to under-perform, she was criticised not only by Cosatu, but also the ANC, again resulting in policy uncertainty.

Markets require certain about economic policies. South Africa cannot afford such policy uncertainty in a global economic meltdown environment.

In terms of the PFMA (section 6), National Treasury must coordinate macro-economic policy. This would however appear to be in conflict with the stated strategic focus of the newly formed economic development ministry which aims "to promote economic policy development and coordination and coherence (alignment).

We also trust that the Comprehensive Expenditure Review will identify any lack of synergy that may exist between the different economic departments. We agree with the Finance Minister that we cannot afford ministries and departments to operate in silos and that synergy and cooperation are crucial to achieve maximum service delivery, particularly where in a recessionary environment.

A further concern relates to the high levels of vacancies in the Public Service, including Trade and Industry and Finance. Will these added departments not further stretch already strained state management resources? Lack of service delivery has often been ascribed to lack of management capacity and skills. Will more departments not aggravate the problem? One of the upsides of the domestic recession is that skilled managers, including bankers, are being retrenched. This may provide a solution for management shortages in the public service.

The ACDP will support this budget vote".