https://www.polity.org.za
Deepening Democracy through Access to Information
Home / Statements RSS ← Back
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Article Enquiry

Agri SA: Agri SA’s response to the 2017 budget speech of the Minister of Finance

Close

Embed Video

Agri SA: Agri SA’s response to the 2017 budget speech of the Minister of Finance

Finance Minister Pravin Gordhan
Photo by Reuters
Finance Minister Pravin Gordhan

23rd February 2017

ARTICLE ENQUIRY      SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

“Despite very difficult circumstances, Minister Pravin Gordhan delivered a budget that was indicative of his realisation that the current economic trajectory is unsustainable and that a new approach is required”, says Johannes Möller, president of Agri SA.

“The Minister emphasized the need for the economy to grow above the projected growth rate of 1.3% as this falls well short of our NDP goals and is not sufficient to reduce unemployment or impact significantly on poverty and inequality. As was indicated by the Minister a joint effort by all stakeholders will be required to achieve this goal”, Möller said.

However, according to Möller that not enough was said with respect to curbing the high levels of corruption nor was the drain on the fiscus brought about by the state-owned companies addressed firmly enough. Taxing people in high income brackets might have been the right and soft option for now but it will not suffice as a medium-term option, given structural problems clearly present on both the income and expenditure side of government finances.

“From an agricultural perspective - the R30 billion spending on agriculture, rural development and land reform over the medium term is appreciated provided it will serve the purpose of what it is intended for. The focus of this spending should be on commercial agriculture i.e. moving land reform beneficiaries towards commercial production and increasing productivity of existing commercial agriculture. It is also critical that we find innovative technics to attract young people in the sector. Land reform must prioritise willing and capable (i.e. know-how) young farmers - most of the spending in Agriculture must be directed towards this purpose. This is very important for the sustainability of the sector”, said Möller.

“Given the fact that the sector is presently facing serious cost pressures because of the recent and still prevailing drought especially in the Western Cape, our view is that the increased excise duties on alcohol might have an adverse impact on the wine industry and could possible lead to job losses. Some respite in this regard would have been helpful”, Möller adds.

“Agri SA acknowledges the need to curb obesity in the country. However, we are of the view that a sugar tax could have an enormous impact on the cane growers in the country, leading to a reduction in production levels and job losses. Currently, the sugar cane industry is a significant contributor to the country’s economy, inter alia employing about 79 000 people”, Möller concluded

 

Advertisement

Issued by Agri SA

To watch Creamer Media's latest video reports, click here
 
Advertisement

EMAIL THIS ARTICLE      SAVE THIS ARTICLE ARTICLE ENQUIRY

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

 

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now