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The Congress of the People is very pleased with the consistency reflected in the MTBPS presented today.

The Minister of Finance has stood up and provided the leadership that COPE has expected of him. It is clear that the treasury is still in control and that they have resisted taking a populist turn.

COPE also welcomes the Government's task team report to effect savings, but think that this report should have been released earlier. The review of the ministerial handbook is long overdue, promptimg one to intuit that ministers are going on a spending spree to avoid any cuts that may be proposed in a newly revised handbook.

COPE further welcomes the Minister's recognition that the quality of public services, especially in poor communities is often inadequate. His stance on on low inflation targets is to be applauded, especially as he has clearly resisted calls from the populists in the SACP and COSATU on this issue.

It is clear that South Africa needs to up its productivity levels to get on par with other emerging markets if we want to grow the economy.

A shift in industrial policy towards labour intensive sectors of the economy, and specifically to assisting the youth enter the economy at an early stage is welcome.

COPE hopes that rural development and agriculture will benefit as labour intensive sectors. One concern is the continued threat to ban labour brokers.

COPE is concerned about the trend in the increase of state debt and that the salary bill of the state is just getting too high to be comfortable about it. If we do not get this under control, South Africans must prepare themselves for major tax increases in future.

Higher borrowing is only a temporary solution and if government fails to reduce the deficit over the medium term, we shall have less money for social and economic priorities.

The only way out means higher taxes or a faster growing economy. The problem is that South Africa will more than likely lag behind the curve of the world economic recovery and we do not support the over optimistic view that South Africa will so easily get off the hook.

COPE do have a concern that there is not enough of a stimulus package to assist our recovery and that it might even take longer than estimated by the minister. By being over optimistic we create a false perception that it is okay to carry on spending, which will certainly guarantee tax increases in future.

This MTBPS has restored confidence about the role of the Treasury and it's clear that the Minister of Finance will continue on the consistent road introduced by his predecessor. This approach, if adhered to, will restore business confidence and will assist with our economic recovery.