Date: 14/04/2003
Source: Ministry of Trade and Industry
Title: Erwin: Trade and Industry Dept Budget Vote 2003/2004


BUDGET VOTE SPEECH BY THE MINISTER OF TRADE AND INDUSTRY, ALEC ERWIN, National Assembly, 14 April 2003

Madam Speaker,
Honourable Members,
CEO and Chairpersons of the dti group
Ladies and Gentlemen

Introduction

Madam Speaker, today the dti's budget vote is tabled in this House against the backdrop of considerable global uncertainties but with the South African economy poised for sustained growth and development. A report on the real economy is also being made available today. This juxtaposition is a complex situation that we must manage.

The dti's mandate is to lead and facilitate access to sustainable economic activity and employment for all South Africans. Vote 32 provides the means by which the dti will pursue that mandate over the next three years.

Let me begin by referring to the complex situation I have just mentioned and evaluate our plans in light of recent global events. It is critical that we consider the ramifications of these events, including the war in Iraq, for our own efforts to reconstruct and develop our economy.

The global economic downturn and uncertainty, with delays in investment decisions, falling consumer confidence in major markets, volatile oil prices, and increased costs of doing business due to tightened security are adverse factors that we will have to contend with this year. Our current economic strength places us in a relatively favourable position to respond and mitigate the effects on South Africa.

However, of very great concern, is the potentially lasting damage that may have been done to multilateralism as a means of global governance and achieving common goals. Interdependence and multilateralism are cornerstones of global peace and prosperity. The undermining of international rules and norms is one of the most disconcerting aspects of recent events. The implications are manifest in several important areas, including the Doha development round of trade negotiations; NEPAD and the market access negotiations between SACU and the USA.

We are hopeful that SACU's negotiations with the United States remain on track. Negotiations will commence in May and technical work has already been done to prepare us for what will be a tough, but ultimately beneficial, process.

Another consequence of the events in Iraq is that the attention of developed nations, and flows of development assistance and investment, may turn away from Africa and from NEPAD. Whilst we are sure that the USA administration will not turn away from Africa it would be na