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DA: Statement by Natasha Michael, Democratic Alliance Shadow Minister of Public Enterprise, on the SAA bail-out (15/05/2012)

15th May 2012

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Government is expected to approve a R6 billion bail-out for South African Airways (SAA) today. Whilst the airline has denied that this a bailout, a substantial government contribution to a State-Owned Enterprise (SOE) aimed at ensuring its “sustainability” can hardly be seen as anything else.

It is ironic that this R6 billion bail-out is being considered on the same day that the DA is marching for the implementation of a R5 billion youth wage subsidy scheme.

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This is the difference between the DA and the ANC government. We fight for practical solutions that can create hundreds of thousands of jobs. The ANC government allocates billions to bottomless pits of inefficiency – like the SAA.

Since 2004/2005 approximately R18 billion has already been spent on SAA bail-outs. How is it possible that our government can find another R6 billion for this organisation, but cannot muster the political will to implement a youth wage subsidy which could create more than 420 000 jobs for young South Africans?

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A DA government would have privatised SAA long ago, and would take the billions we’ve spent on keeping the carrier afloat and instead spend it on programmes to create jobs and improve people’s lives. The youth wage subsidy would be at the top of our priority list.

And this isn’t just the DA’s opinion. Treasury itself has conducted a study on the youth wage subsidy proposal. It found that the subsidy would help to create 423 000 jobs over three years at a cost of R5 billion. President Zuma also endorsed the policy during his 2010 State of the Nation Address. The Congress of South African Trade Unions (COSATU), however, continues to block all efforts to implement this subsidy.

What we need now is for government to start prioritising sensible solutions above internal alliance politics.
 

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