Date: 23/03/2010
Source: The Independent Democrats
Title: ID: Greyling: Speech by ID Member of Parliament in the debate on the Economic Development budget vote, Parliament

Minister, the ID supports the creation of this Ministry and with this budget vote it will now become a fully functional and independent entity that is able to implement its strategic mandate. 

The ID sees the creation of this Ministry as evidence that the government is attempting to pursue a more aggressive economic policy with the State intervening to address the structural constraints of our economy. 

The ID believes that this is long overdue, as for too long we have lived under the illusion that our economy was sound, while our unemployment rate remained one of the highest in the world, our gross inequalities widened even more and the natural wealth of our country was unsustainably depleted. 

While we support this new economic approach, we do however feel there are some major pitfalls that we need to avoid as we embark on this ambitious programme. 

This Ministry needs to be more than just an economic think tank, it must possess the machinery and political will to ensure that the necessary interventions are driven through all government departments. 

Many government departments failed to implement the measures required from the first industrial policy and created bottlenecks in the system. This cannot be allowed to happen again. 

This department must be willing to address both market and government failures. It must be alive to the possibility of State entities and programmes being captured by special interests and corrupt forces. All potential conflicts of interest must therefore be dealt with aggressively. 

Any form of support that is offered to companies or sectors must be done according to a measurable set of indicators. Obviously job creation must be a primary indicator, but so must increased competitiveness and ability to export. Infant industries cannot stay in government nappies for too long.

The ID has also noted your intention to utilize pension funds to provide financing for developmental objectives. Other countries have done this with some success, but we must ensure that the overriding priority is to generate sustainable returns for pensioners without incurring unacceptable levels of risk. 
Finally I would urge this department to push the envelope and seek to position South Africa ahead of the new technological curve. The world is rapidly changing and the old economic models have shown their severe limitations in dealing with the challenges of the 21st century. Let us pioneer a new economic approach and effectively deal with our vast socio-economic and environmental problems. 

I thank you.