Development finance institution, the Industrial Development Corporation (IDC), has approved loans worth R644-million to 11 companies in distressed manufacturing sectors and was evaluating a further 49 applications, the Department of Trade and Industry (DTI) said on Thursday.

Since April, the IDC has made R6-billion available over a period of two years to assist firms that have come under strain as a result of the global economic crisis.

This formed part of the DTI and other social partners' response to the distressed manufacturing sectors identified in the National Economic Development and Labour Council framework agreement.

The automotive sector had been provided with bridging and investment finance from the IDC to assist with cash flow constraints and to ensure that the current pipeline of automotive investments was not jeopardised by a lack of finance. This would assist the sector in weathering the economic crisis.

Further, the validity period of the Import Rebate Credit Certificates through the International Trade Administration Commission (ITAC) could also be extended to assist with cash flow constraints. These extensions would also be considered on a case-by-case basis.

Discussions between the DTI and the National Treasury were also ongoing with regard to the acceleration of investment support measures, as well as with regard to the deferment of the shift from ad valorem to carbon dioxide taxes on vehicles, it added.

The DTI said that all firms receiving crisis related assistance had agreed to specific conditions aimed at preserving employment in the industry, noting that a moratorium had been placed on retrenchments for the duration of the assistance period.

This was unless the retrenchments were essential for the firm's survival.

The automotive sector had already shed 40 000 jobs since October.

Further, the companies had also committed to ensuring that no excessive, extraordinary or unacceptable executive bonuses or dividend payouts would be made during the assistance period.

In addition, an independent quarterly benchmarking of prices of major passenger and light commercial vehicles distributed in South Africa would be undertaken.

The benchmarking would be relative to vehicle prices in comparable developing countries to ensure the transparency of vehicle affordability in the domestic market.

Meanwhile, the IDC and the South African Revenue Service continued with a clampdown on customs fraud, round tripping, counterfeiting, as well as the abuse of instruments, such as duty credits, rebates and quotas within the clothing and textiles sector.

Five companies have been charged, while a number of others are subject to investigation, the DTI highlighted.

A tariff application was also being considered by the ITAC, to increase tariffs to the bound rate on 35 articles of clothing and reduce tariffs on three articles of textiles.

Further, the DTI reported that it was at the final stages of consultation with industry stakeholders, concerning a production incentive, and was engaging with the National Treasury on the incentive, within the context of the budget process.

The DTI and the IDC were also designing a dedicated incentive scheme to assist firms in the capital equipment, transport equipment and metal fabrication sectors in relation to the public infrastructure development programme.

The programme would be canvassed with stakeholders and finalised for implementation by January 2010, it reported.

Further, business and labour were currently engaged in lodging an application to the ITAC for possible tariff increases on products with substantial potential for the creation or retention of decent jobs and the recapturing of domestic market share, the DTI added.

Measures to strengthen enforcement were being considered, in relation to products that did not meet mandatory safety standards, particularly in respect of electrical and other inputs in the building industry.