MEDIA RELEASE BASED ON THE ADDRESS BY THE MINISTER FOR PUBLIC ENTERPRISES, Ms S N SIGCAU, TO THE COMMERCIALISATION AND CORPORATISATION CONFERENCE HELD AT THE ESKOM CONFERENCE CENTRE 21 NOVEMBER 1994
With the inception of the Government of National Unity - the State has redefined some of its goals and objectives - and this has clearly led to a review of some of its policies.
The Government has undertaken a programme to transform the economy so that its full potential can be tapped and so that participation in the economy will be substantially broadened. The debate on issues such as empowerment, commercialisation and privatisation should be seen against the broader context of the Government's restructuring initiatives especially the RDP. This involves a critical re-examination of the role of the public enterprises which are commercial organisations under the control of the state.
In order to achieve a "Better life for All" we have to look at the process of restructuring as a three pronged process comprising:
- TO PROMOTE EFFICIENCY
(i) replacing unfocused budgetary demands with good business plans
What has been achieved with commercialisation so far has been to relieve the Government of the financial and administrative burden in undertaking and maintaining a vast and constantly expanding network of services and investment in infrastructure.
(ii) introducing the so-called "Profit Mentality" which leads to growth and the inevitable increase in job opportunities
- TO ENCOURAGE JOINT VENTURES AND PARTNERSHIPS
(i) in technology and general research
(ii) both domestic and international - this will not lead to increased funding - but to the total modernising and rehabilitaton of investment
(iii) with a view to generating general revenue
TO FREE PUBLIC RESOURCES FOR SOCIAL INVESTMENT
(i) this will help create co-ordinated and well focused programmes, and in line with the RDP focus on limited resources
(ii) and assist important tasks of government
RESTRUCTURING FOR EMPOWERMENT
(i) the opportunity to create wealth must be more easily available and accessible to most people
(ii) contracting out
(i) this must not be limited to a particular sector of our population
(ii) arrangements or plans must be made so that people who in the past could not easily access loans are in a position to do so
(iii) skills training programmes to be arranged in order to broaden the base of participants
The Department of Public Enterprises intends to study a number of International models where there have been significant restructuring programmes for empowerment. Visits are planned starting this week and the early part of next year to countries like Malaysia, Singapore, Mexico, Bolivia, Chile and Australia; discussions are being held at Departmental level with people who have helped with restructuring programmes. In the words of the RDP the process has to be people driven and thus the envisaged restructuring will have to be implemented within the context of the RDP, and has to be such that it opens new opportunities for furthering the progress of the RDP. I once more want to emphasise that attention will have to be given to the fact that if all things are done with empowerment in mind we should see an emerging black commercial and industrial community. Economic Freedom of the masses would balance up our political freedom.