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24 May 2012
   
 
 

In response to a parliamentary question by the DA, the National Treasury has revealed that Labour Brokers generated R10 billion in tax revenue in the 2008/09 financial year, and R15 billion for 2007/08. This is yet another clear case for why the banning of labour brokers would negatively impact the economy in a huge way. With South Africa already facing a budget deficit well into the billions of rands, it would only create an additional burden on the Fiscus, and the taxpayer would have to fill this widened gap. Cosatu needs to consider this - are they honestly suggesting that their salaried members should pay more tax because of their fixation on banning labour brokers? Or does the Minister of Labour, Membathisi Mdadlana, want to restrict government expenditure on job creation programmes? R10 billion in tax revenue is enough money to pay for more than 180 000 RDP homes (at R 54 000 per home) - in other words, those who want to ban labour brokers would also be happy to forego the money needed to house more than half a million people. The debate on labour brokers needs to progress - it has been made clear that their banning is completely unworkable, possibly unconstitutional and disastrous for the delivery of public services. The regulation of labour brokers is the next step in the debate - it is a topic that needs to be discussed in a clear and level-headed manner. The DA has been a constructive partner in the debate on the need for labour brokers - the DA has proposed industry self-regulation and exposed through parliamentary questions that government departments have spent more than R140 million on labour brokers. We will continue to drive the debate towards a rational conclusion to the benefit of all South Africans.

Edited by: Creamer Media Reporter
 
 
 
 
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