Date: 28/05/2003
Source: Department of Trade and Industry
Title: Erwin: Trade and Industry Dept Budget Vote 2003/2004, NCOP
TRADE AND INDUSTRY BUDGET VOTE SPEECH BY THE MINISTER OF TRADE AND INDUSTRY, National Council of Provinces, 28 May 2003
Madam Chairperson
MECs
Honourable Members
Ladies and Gentleman
Introduction
Last year we presented the budget of the dti in a manner specific to the NCOP, as part of our effort to make cooperative governance a reality. This was successful and we are going to repeat it again today. Provinces will focus on the developments in their provincial economies. The Deputy Minister will focus on what the dti group of agencies are doing in the provinces. I will focus on some of the challenges confronting us as we try to move cooperative governance from a constitutional ideal to an operational reality.
Our biggest challenge as government remains addressing the inequitable distribution of and access to economic power and resources. Cooperative governance is an important instrument to address these inequalities. Cooperative governance, which is enshrined in Chapter 3 of the Constitution, enables effective delivery of services and achievement of government's strategic objectives through integrated planning budgeting processes across all three spheres of government.
Cooperative governance and institutional alignment
Note, Honourable Members, that I say "spheres" and not "tiers". The term "tiers" has far too much of a hierarchical tone to it, and hierarchy does not reflect the spirit of cooperative governance. The developmental challenges that confront us as a country require a far more equal and cooperative relationship between the different spheres of government. This is what we, in the department of trade and industry, and our counterparts at provincial and local government levels, are trying to achieve.
We have mastered the art of constructive and productive interactions. Through fora such as Provincial Heads of Department meetings, MinMecs and our annual Provincial Lekgotla, we have created a solid foundation for effective engagements with provinces. To take this interaction to a higher level the dti has introduced new mechanisms of working with the provinces and local government through clustering of provinces rather than visiting each province on monthly basis. I am pleased to report that the Executive Board of the dti had the first provincial visit of this nature last week, which proved to be a success.
At the local government level the dti has structured interaction through the South African Cities Network, an initiative spearheaded by the Department of Provincial and Local Government. Some of the people who attend the Cities Network and who attended our provincial Lekgotla last year now attend provincial HOD meetings. As part of strengthening relations with local government, I had a second very successful meeting with executive mayors in December 2002. We are thinking through how we extend this interaction to the rest of local government and we would like to work more closely with the South African Local Government Association in this regard.
For us, cooperative governance has become a reality. The coherence and alignment we have between talking about over the past few years is now concretised. National, provincial and local government now talk the same language. We share a common vision of the economy. As government we are all working towards an adaptive economy characterised by growth, employment and equity, built on the full potential of all persons, communities and geographic areas. And, we have achieved agreement on how to attain that vision by the year 2014.
Localising MERS and the IMS
Over the last twelve-months we have come together as national government, provinces and cities to deliberate on government's economic vision, the Microeconomic Reform Strategy, and the dti's Integrated Manufacturing Strategy.
The IMS, which was released a year ago, emphasises the need for strong partnerships between all spheres of government. The implementation of IMS requires customised sector programmes. Working closely with provinces is essential as industrial promotion and trade is a concurrent responsibility between national and provincial government. We have taken many steps to localise the IMS including making presentations to provinces and cities. Provinces have since initiated reviews of their own industrial strategies and we welcome the alignment that has emerged between the IMS and the provincial strategies particularly the prioritisation of sectors.
There has also been extensive interaction with metros on the IMS. The South African Cities Network has held workshops on localising the IMS and we welcome the research that is being conducted by cities to identify their competitive potential.
Local economic development and provincial growth and development strategies are focused on developing sustainable competitive advantages. These strategies reflect an abandoning of the traditional and less productive approach of attracting investment through competing on packages of subsidies, free land, cheap infrastructure and services that have led mostly to a race to the bottom for municipalities through eroding their revenue base and constraining the provision of basic services to their communities.
A shared vision is, however, only the starting point. We need to find ways of translating this vision into tangible programmes that will make our vision a reality and bring fundamental change in the quality of life of our people.
Cooperative governance and the challenge of delivery
But, where does the responsibility of actual delivery lie? There is no straightforward answer. To state that national government is responsible for policy, and that provinces and local governments are responsible for implementation, is overly simplistic. Economic citizens require a package of services, which include elements such as land-zoning, environmental impact assessments, investment incentives, market access, company registration, and information on business opportunities. Each sphere of government has a role to play in delivering this bouquet. We need to work together closely to ensure efficiency and responsiveness in providing these services. An investor from Germany or an entrepreneur from Kimberley does not really care which part of government is responsible for what; he or she sees only one government. We need to work on joint delivery strategies.
Cooperative governance in action - joint projects
There are many important areas where we, as national, provincial and local government, are working together as partners. The Deputy Minister will address the initiatives taken by the members of the dti Group to ensure service delivery occurs throughout South Africa's provinces.
Logistics infrastructure is a matter of critical concern to the competitiveness of our economy and we are working on this matter with KwaZulu-Natal and Gauteng. During our Provincial Cluster meeting last week, we spent two days discussing logistics infrastructure. We visited Durban and had a presentation by the Port Authority followed by a site visit to the City Deep Container Terminal the next day.
Industrial Development Zones are an embodiment of cooperative governance between the three spheres of government. These industrial estates, linked to international ports or airports leverage investments in export-oriented industries and are attracting sufficient foreign direct investment to stimulate both local and regional growth. The designated IDZs are progressing and we are learning valuable lessons as this programme is rolled out. This will inform our thinking about any future IDZs such as the investment requirements in infrastructure and appropriate financing mechanisms and institutional arrangements.
A significant investment incentive is the Strategic Investment Programme. This programme seeks to raise levels of private sector investment in innovative, profitable and wealth-creating business enterprises in South Africa, whilst simultaneously creating job opportunities within the industrial sector. Ten projects have been approved thus far attracting investment of R2,97 billion. Provinces where the SIP projects are located are Gauteng, KwaZulu-Natal, Mpumalanga, the Western Cape and Eastern Cape.
We are working with each province to develop and grow priority sectors: agro-processing with Limpopo and Mpumalanga; clothing and textiles with KZN; pharmaceuticals with Free State; the film industry with the Western Cape; call-centres with Gauteng; autos in the Eastern Cape; mining with Northern Cape and North West. Closer collaboration between our investment promotion agencies is essential.
Enterprise development remains an important area of cooperation across all three spheres of government. In order for our economy to grow in a manner that will create decent work for entrants into the labour market, it is necessary that new enterprises are created and that existing enterprises become more competitive. The Manufacturing Advisory Centres are a very successful example of what we can do together to support small manufacturing enterprises and this is why we have more than tripled their budget in this financial year. We also need to work together to implement government's broad-based black economic empowerment strategy. Support for the development of cooperatives is another area on which we need to cooperate. The Select Committee has highlighted cooperatives as an issue that is important to them and the dti will be sharing its draft cooperatives development strategy with provinces at our next MinMec in July.
The role of cities
At a local level, the relationship between cities and provinces presents a particular challenge to cooperative governance. Cities have considerable resources and represent 80% of SA's manufacturing activity. There is a global trend that sees the concentration of economic activity in metropolitan areas and increasing competition between cities for investments, hosting sports and cultural events, conventions, and for skilled labour. Yet, huge disparities exist within cities, think of Sandton and Alexandra within Johannesburg, or Camps Bay and Khayelitsha in Cape Town. In Tshwane we have an urban core surrounded by an "inner periphery", where 40% of the population live and contribute to 91% of the economic output. Then there is an "outer periphery" to the northwest and northeast, which is home to 60% of the population and only contributes to 9% of the economic output. It is important to maximise the opportunities for economic growth and social development that is offered by these emerging global city regions. The advantages have to be developed in a manner that will ensure a more equitable spread of resources and wealth. It is our collective responsibility to make this happen.
How many development agencies are too many?
We are concerned with the rising number of economic development agencies that are being established by provinces, cities and municipalities. We urge provincial and local governments to give full consideration to the merits and limits of these agencies. Overextending the mandates of development agencies can result in the creation of a vast and expensive bureaucracy that, in many instances, duplicates the core business of our government departments. This plethora of agencies compounds the alignment and coherence challenge. Research on this trend indicates that 54 agencies report to national and provincial departments of trade and industry. Some departments are finding that they have outsourced their ability to give leadership and direction to their provincial economies. The management and alignment of these agencies pose an important challenge and we need to share our national experience in regard to establishing and managing agencies.
Cooperative governance and business regulation
A further challenge that confronts us in our pursuit of cooperative governance lies within the domain of regulation. The regulation of the liquor and gambling industries, as well as consumer protection are concurrent responsibilities between national and provincial governments. Over the past nine years we have vigorously debated the question of where national's responsibility to ensure common standards and promote alignment behind national policies begin and end?
In the areas of gambling and liquor, it is recognised by both national and provincial government that effective regulation is critical to ensure that proper control over the industry is exercised in order to limit the potential social costs in the form of problem gambling and drinking and to maximise the benefits that can be derived from these industries in the form of economic empowerment, employment creation, revenue generation and infrastructure development.
Concurrent jurisdiction has the potential to result in less effective control over a regulated industry, due to inconsistency in legislation and uneven enforcement across provinces, creating regulatory gaps that can be exploited by industry. The impact of uneven enforcement capacity across provinces can also be demonstrated in the area of consumer protection. A lengthy process was adopted by national and provincial government in 1996 for provinces to adopt legislation similar to the National Consumer Affairs Act. Most legislation was successfully harmonised due to the constructive relationship between national and provincial government. However, the provincial laws make provision for consumer courts, tribunal-like structures that assist with the resolution of complaints about local or provincial businesses. To date only three consumer courts are operational.
A similar situation is expected to occur in respect of liquor legislation, once the new Liquor Bill is adopted by both Houses of Parliament. Unless there are provincial laws in place, or default legislation, as was proposed, it is conceivable that the new Liquor Bill will be in place long before all provincial laws are passed, creating the potential for regulatory gaps.
In the area of gambling, the differences in legislation and administrative processes between provinces are particularly pronounced in respect of horse racing. Here, the licensing processes, licensing costs, levels of taxation and types of bets allowed vary between provinces, creating confusion in the industry. In addition, the type and level of inspection provided for in the different pieces of legislation varies, resulting in uneven degrees of enforcement and control across provinces.
Thus, concurrent jurisdiction brings with it a number of potential regulatory challenges, ranging from the need for more effective co-ordination, the need to harmonise legislation and administrative processes, the elimination of duplication, as well as the need for consistent and even enforcement action, within provincial boundaries and across them. It requires a very strong relationship between national and provincial government that is based on the common goal of upholding the public interest. It means that both houses of Parliament, the Portfolio and Select Committees in particular, must play an active role in monitoring and oversight to ensure that some of the problems outlined above do not occur.
The dti will soon submit a new Gambling Bill to this Council that will seek to clarify some of the challenges and areas of concern outlined above. The Liquor Bill similarly seeks to clarify the relationships between national and provincial government. However, here the role of national government is clearly limited by the Constitution and the Constitutional Court judgment. The role of the Select Committee in ensuring that some of the concerns raised at the recent public hearings on the Liquor Bill with respect to the challenge of formalising the illegal operators and the consistent approach across provinces is therefore critical.
Cooperative governance and the challenge of information sharing
As we work towards a common set of objectives, synchronise our programmes and adapt our legislation, efficient information sharing becomes an imperative. We have made progress in this regard through our regular meetings, but we need to find more innovative ways of sharing information on investment projects in provinces and cities, upcoming investment and trade missions, developments in market access negotiations, even changes in personnel within our departments. The development of a management information system, to underpin and facilitate cooperative governance for economic growth and development, must be a priority for our departments over the next 12-months. As the dti we need to be able to reflect on your provincial efforts and achievements at the national cabinet, particularly in the six-monthly Cabinet Lekgotla. We welcome the participation of some of the provincial heads of department in the economic and employment cluster. This is useful, and we enjoin more provinces to follow their lead.
Another information challenge relates to statistics and data on provincial and local economies. This is something that many of our provincial colleagues have raised with the dti. Within the dti we are currently upgrading our own capacity for statistical analysis and we need to work together to develop a more comprehensive statistical picture of South Africa's economic landscape. Again this should be a priority for us moving forward.
Conclusion
Honourable members, I have illustrated the extent to which the dti values the importance of cooperative governance. It is core to our manner of functioning. For us cooperative governance is not only limited to interaction between the three constitutional spheres of government, but it includes our relationship with the legislature.
I would like to take this opportunity to thank the members of the Select Committee for their continued hard work. They have interrogated Vote 32 and the dti's medium-term strategy framework. I would also like to thank my colleagues in the provinces for their ongoing cooperation and willingness to work together - we are truly building 'Team DTI'!. Deputy Minister Hendricks also deserves recognition today for her tireless efforts, as do the Director-General of the dti and the dedicated staff of the department.
Before I conclude I want to make an advertisement for the dti's new information centre on the 6th floor of 120 Plein Street. Members, please make full use of this resource.
Madam Chair, the dti's budget of R2,6bn, as presented before this Council today, represents a large investment by the state in our country's economic growth and development. By working more closely together, building on the solid foundations we have put in place, we can leverage a much greater return on this investment. This is the essence of cooperative governance.
I thank you.
Source: Department of Trade and Industry (http://www.dti.gov.za)
Source: Department of Trade and Industry
Title: Erwin: Trade and Industry Dept Budget Vote 2003/2004, NCOP
TRADE AND INDUSTRY BUDGET VOTE SPEECH BY THE MINISTER OF TRADE AND INDUSTRY, National Council of Provinces, 28 May 2003
Madam Chairperson
MECs
Honourable Members
Ladies and Gentleman
Introduction
Last year we presented the budget of the dti in a manner specific to the NCOP, as part of our effort to make cooperative governance a reality. This was successful and we are going to repeat it again today. Provinces will focus on the developments in their provincial economies. The Deputy Minister will focus on what the dti group of agencies are doing in the provinces. I will focus on some of the challenges confronting us as we try to move cooperative governance from a constitutional ideal to an operational reality.
Our biggest challenge as government remains addressing the inequitable distribution of and access to economic power and resources. Cooperative governance is an important instrument to address these inequalities. Cooperative governance, which is enshrined in Chapter 3 of the Constitution, enables effective delivery of services and achievement of government's strategic objectives through integrated planning budgeting processes across all three spheres of government.
Cooperative governance and institutional alignment
Note, Honourable Members, that I say "spheres" and not "tiers". The term "tiers" has far too much of a hierarchical tone to it, and hierarchy does not reflect the spirit of cooperative governance. The developmental challenges that confront us as a country require a far more equal and cooperative relationship between the different spheres of government. This is what we, in the department of trade and industry, and our counterparts at provincial and local government levels, are trying to achieve.
We have mastered the art of constructive and productive interactions. Through fora such as Provincial Heads of Department meetings, MinMecs and our annual Provincial Lekgotla, we have created a solid foundation for effective engagements with provinces. To take this interaction to a higher level the dti has introduced new mechanisms of working with the provinces and local government through clustering of provinces rather than visiting each province on monthly basis. I am pleased to report that the Executive Board of the dti had the first provincial visit of this nature last week, which proved to be a success.
At the local government level the dti has structured interaction through the South African Cities Network, an initiative spearheaded by the Department of Provincial and Local Government. Some of the people who attend the Cities Network and who attended our provincial Lekgotla last year now attend provincial HOD meetings. As part of strengthening relations with local government, I had a second very successful meeting with executive mayors in December 2002. We are thinking through how we extend this interaction to the rest of local government and we would like to work more closely with the South African Local Government Association in this regard.
For us, cooperative governance has become a reality. The coherence and alignment we have between talking about over the past few years is now concretised. National, provincial and local government now talk the same language. We share a common vision of the economy. As government we are all working towards an adaptive economy characterised by growth, employment and equity, built on the full potential of all persons, communities and geographic areas. And, we have achieved agreement on how to attain that vision by the year 2014.
Localising MERS and the IMS
Over the last twelve-months we have come together as national government, provinces and cities to deliberate on government's economic vision, the Microeconomic Reform Strategy, and the dti's Integrated Manufacturing Strategy.
The IMS, which was released a year ago, emphasises the need for strong partnerships between all spheres of government. The implementation of IMS requires customised sector programmes. Working closely with provinces is essential as industrial promotion and trade is a concurrent responsibility between national and provincial government. We have taken many steps to localise the IMS including making presentations to provinces and cities. Provinces have since initiated reviews of their own industrial strategies and we welcome the alignment that has emerged between the IMS and the provincial strategies particularly the prioritisation of sectors.
There has also been extensive interaction with metros on the IMS. The South African Cities Network has held workshops on localising the IMS and we welcome the research that is being conducted by cities to identify their competitive potential.
Local economic development and provincial growth and development strategies are focused on developing sustainable competitive advantages. These strategies reflect an abandoning of the traditional and less productive approach of attracting investment through competing on packages of subsidies, free land, cheap infrastructure and services that have led mostly to a race to the bottom for municipalities through eroding their revenue base and constraining the provision of basic services to their communities.
A shared vision is, however, only the starting point. We need to find ways of translating this vision into tangible programmes that will make our vision a reality and bring fundamental change in the quality of life of our people.
Cooperative governance and the challenge of delivery
But, where does the responsibility of actual delivery lie? There is no straightforward answer. To state that national government is responsible for policy, and that provinces and local governments are responsible for implementation, is overly simplistic. Economic citizens require a package of services, which include elements such as land-zoning, environmental impact assessments, investment incentives, market access, company registration, and information on business opportunities. Each sphere of government has a role to play in delivering this bouquet. We need to work together closely to ensure efficiency and responsiveness in providing these services. An investor from Germany or an entrepreneur from Kimberley does not really care which part of government is responsible for what; he or she sees only one government. We need to work on joint delivery strategies.
Cooperative governance in action - joint projects
There are many important areas where we, as national, provincial and local government, are working together as partners. The Deputy Minister will address the initiatives taken by the members of the dti Group to ensure service delivery occurs throughout South Africa's provinces.
Logistics infrastructure is a matter of critical concern to the competitiveness of our economy and we are working on this matter with KwaZulu-Natal and Gauteng. During our Provincial Cluster meeting last week, we spent two days discussing logistics infrastructure. We visited Durban and had a presentation by the Port Authority followed by a site visit to the City Deep Container Terminal the next day.
Industrial Development Zones are an embodiment of cooperative governance between the three spheres of government. These industrial estates, linked to international ports or airports leverage investments in export-oriented industries and are attracting sufficient foreign direct investment to stimulate both local and regional growth. The designated IDZs are progressing and we are learning valuable lessons as this programme is rolled out. This will inform our thinking about any future IDZs such as the investment requirements in infrastructure and appropriate financing mechanisms and institutional arrangements.
A significant investment incentive is the Strategic Investment Programme. This programme seeks to raise levels of private sector investment in innovative, profitable and wealth-creating business enterprises in South Africa, whilst simultaneously creating job opportunities within the industrial sector. Ten projects have been approved thus far attracting investment of R2,97 billion. Provinces where the SIP projects are located are Gauteng, KwaZulu-Natal, Mpumalanga, the Western Cape and Eastern Cape.
We are working with each province to develop and grow priority sectors: agro-processing with Limpopo and Mpumalanga; clothing and textiles with KZN; pharmaceuticals with Free State; the film industry with the Western Cape; call-centres with Gauteng; autos in the Eastern Cape; mining with Northern Cape and North West. Closer collaboration between our investment promotion agencies is essential.
Enterprise development remains an important area of cooperation across all three spheres of government. In order for our economy to grow in a manner that will create decent work for entrants into the labour market, it is necessary that new enterprises are created and that existing enterprises become more competitive. The Manufacturing Advisory Centres are a very successful example of what we can do together to support small manufacturing enterprises and this is why we have more than tripled their budget in this financial year. We also need to work together to implement government's broad-based black economic empowerment strategy. Support for the development of cooperatives is another area on which we need to cooperate. The Select Committee has highlighted cooperatives as an issue that is important to them and the dti will be sharing its draft cooperatives development strategy with provinces at our next MinMec in July.
The role of cities
At a local level, the relationship between cities and provinces presents a particular challenge to cooperative governance. Cities have considerable resources and represent 80% of SA's manufacturing activity. There is a global trend that sees the concentration of economic activity in metropolitan areas and increasing competition between cities for investments, hosting sports and cultural events, conventions, and for skilled labour. Yet, huge disparities exist within cities, think of Sandton and Alexandra within Johannesburg, or Camps Bay and Khayelitsha in Cape Town. In Tshwane we have an urban core surrounded by an "inner periphery", where 40% of the population live and contribute to 91% of the economic output. Then there is an "outer periphery" to the northwest and northeast, which is home to 60% of the population and only contributes to 9% of the economic output. It is important to maximise the opportunities for economic growth and social development that is offered by these emerging global city regions. The advantages have to be developed in a manner that will ensure a more equitable spread of resources and wealth. It is our collective responsibility to make this happen.
How many development agencies are too many?
We are concerned with the rising number of economic development agencies that are being established by provinces, cities and municipalities. We urge provincial and local governments to give full consideration to the merits and limits of these agencies. Overextending the mandates of development agencies can result in the creation of a vast and expensive bureaucracy that, in many instances, duplicates the core business of our government departments. This plethora of agencies compounds the alignment and coherence challenge. Research on this trend indicates that 54 agencies report to national and provincial departments of trade and industry. Some departments are finding that they have outsourced their ability to give leadership and direction to their provincial economies. The management and alignment of these agencies pose an important challenge and we need to share our national experience in regard to establishing and managing agencies.
Cooperative governance and business regulation
A further challenge that confronts us in our pursuit of cooperative governance lies within the domain of regulation. The regulation of the liquor and gambling industries, as well as consumer protection are concurrent responsibilities between national and provincial governments. Over the past nine years we have vigorously debated the question of where national's responsibility to ensure common standards and promote alignment behind national policies begin and end?
In the areas of gambling and liquor, it is recognised by both national and provincial government that effective regulation is critical to ensure that proper control over the industry is exercised in order to limit the potential social costs in the form of problem gambling and drinking and to maximise the benefits that can be derived from these industries in the form of economic empowerment, employment creation, revenue generation and infrastructure development.
Concurrent jurisdiction has the potential to result in less effective control over a regulated industry, due to inconsistency in legislation and uneven enforcement across provinces, creating regulatory gaps that can be exploited by industry. The impact of uneven enforcement capacity across provinces can also be demonstrated in the area of consumer protection. A lengthy process was adopted by national and provincial government in 1996 for provinces to adopt legislation similar to the National Consumer Affairs Act. Most legislation was successfully harmonised due to the constructive relationship between national and provincial government. However, the provincial laws make provision for consumer courts, tribunal-like structures that assist with the resolution of complaints about local or provincial businesses. To date only three consumer courts are operational.
A similar situation is expected to occur in respect of liquor legislation, once the new Liquor Bill is adopted by both Houses of Parliament. Unless there are provincial laws in place, or default legislation, as was proposed, it is conceivable that the new Liquor Bill will be in place long before all provincial laws are passed, creating the potential for regulatory gaps.
In the area of gambling, the differences in legislation and administrative processes between provinces are particularly pronounced in respect of horse racing. Here, the licensing processes, licensing costs, levels of taxation and types of bets allowed vary between provinces, creating confusion in the industry. In addition, the type and level of inspection provided for in the different pieces of legislation varies, resulting in uneven degrees of enforcement and control across provinces.
Thus, concurrent jurisdiction brings with it a number of potential regulatory challenges, ranging from the need for more effective co-ordination, the need to harmonise legislation and administrative processes, the elimination of duplication, as well as the need for consistent and even enforcement action, within provincial boundaries and across them. It requires a very strong relationship between national and provincial government that is based on the common goal of upholding the public interest. It means that both houses of Parliament, the Portfolio and Select Committees in particular, must play an active role in monitoring and oversight to ensure that some of the problems outlined above do not occur.
The dti will soon submit a new Gambling Bill to this Council that will seek to clarify some of the challenges and areas of concern outlined above. The Liquor Bill similarly seeks to clarify the relationships between national and provincial government. However, here the role of national government is clearly limited by the Constitution and the Constitutional Court judgment. The role of the Select Committee in ensuring that some of the concerns raised at the recent public hearings on the Liquor Bill with respect to the challenge of formalising the illegal operators and the consistent approach across provinces is therefore critical.
Cooperative governance and the challenge of information sharing
As we work towards a common set of objectives, synchronise our programmes and adapt our legislation, efficient information sharing becomes an imperative. We have made progress in this regard through our regular meetings, but we need to find more innovative ways of sharing information on investment projects in provinces and cities, upcoming investment and trade missions, developments in market access negotiations, even changes in personnel within our departments. The development of a management information system, to underpin and facilitate cooperative governance for economic growth and development, must be a priority for our departments over the next 12-months. As the dti we need to be able to reflect on your provincial efforts and achievements at the national cabinet, particularly in the six-monthly Cabinet Lekgotla. We welcome the participation of some of the provincial heads of department in the economic and employment cluster. This is useful, and we enjoin more provinces to follow their lead.
Another information challenge relates to statistics and data on provincial and local economies. This is something that many of our provincial colleagues have raised with the dti. Within the dti we are currently upgrading our own capacity for statistical analysis and we need to work together to develop a more comprehensive statistical picture of South Africa's economic landscape. Again this should be a priority for us moving forward.
Conclusion
Honourable members, I have illustrated the extent to which the dti values the importance of cooperative governance. It is core to our manner of functioning. For us cooperative governance is not only limited to interaction between the three constitutional spheres of government, but it includes our relationship with the legislature.
I would like to take this opportunity to thank the members of the Select Committee for their continued hard work. They have interrogated Vote 32 and the dti's medium-term strategy framework. I would also like to thank my colleagues in the provinces for their ongoing cooperation and willingness to work together - we are truly building 'Team DTI'!. Deputy Minister Hendricks also deserves recognition today for her tireless efforts, as do the Director-General of the dti and the dedicated staff of the department.
Before I conclude I want to make an advertisement for the dti's new information centre on the 6th floor of 120 Plein Street. Members, please make full use of this resource.
Madam Chair, the dti's budget of R2,6bn, as presented before this Council today, represents a large investment by the state in our country's economic growth and development. By working more closely together, building on the solid foundations we have put in place, we can leverage a much greater return on this investment. This is the essence of cooperative governance.
I thank you.
Source: Department of Trade and Industry (http://www.dti.gov.za)
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