Aug 16, 2012
Patel seeks consensus on wage subsidyBack
Building|By Building|Ebrahim Patel|Infrastructure|Kgalema Mothlanthe|Pravin Gordhan|Tim Harris
"We need to forge a consensus on how to address youth unemployment, instead of a 'kragdadige' (forceful) approach to push through a single measure in the face of opposition from youth organisations and trade unions," Patel said in a debate on the measure in Parliament.
Finance Minister Pravin Gordhan budgeted R5-billion to start implementing the subsidy from April.
But it was put on ice amid protest from Cosatu, and of late the ANC Youth League and the National Youth Development Agency.
Patel's pronouncement was eagerly awaited after Deputy President Kgalema Mothlanthe on Wednesday responded to questions from MPs on the subsidy by referring to the upcoming debate with the words: "Tomorrow is D-Day."
Patel said the Nedlac debate on the issue had been widened to include more concerned parties and they had agreed on the need for a "social compact" on how to get young people into jobs.
"No single mechanism can address the challenge of youth unemployment," he said.
"We are looking to short- and long-term measures and a package that is proportionate to the scale of the problem."
Patel suggested private and public sector initiatives could be added to existing policies like the expanded public works and the community work programmes.
"We have tabled a proposal for a youth employment committee under Nedlac to consider specific measures to boost employment for young workers," he said.
"By building a collaboration it will avoid unnecessary conflict and exploitative programmes. In addition where young people want to start their own businesses, government will help them."
Patel suggested government would provide support for youth entry into certain sectors of the economy, such as infrastructure and the green economy, but did not provide further details.
Democratic Alliance MP Tim Harris said Patel's speech seemed like the death knell for Gordhan's initiative and was a humiliating defeat for the Treasury chief.
"What an indignity for the National Treasury that Minister Patel is sent out today to set a nail in the coffin of the youth wage subsidy."
Cosatu had expressed fear that the policy would prompt business to replace experienced workers with young, "cheap" labour.
Edited by: Sapa
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Macro and Micro News
The rand weakened slightly to R15.92 at 09:55 ahead of President Jacob Zuma’s State of the Nation speech on Thursday, which will be watched closely by local investors hoping for a sign that the country can stave off a credit rating downgrade to “junk status”. “While...
With confirmation that government and the steel industry are close to finalising a package of measures designed to preserve the future of the embattled primary steel sector, there are concerns that domestic steel consuming industries could be squeezed between...
Updated 6 hours ago President Jacob Zuma unveiled the skeletons of what he described as an economic “turnaround plan” in a State of the Nation Address dominated by the current plight of the South African economy, which was unlikely to grow by more than 1% in 2016 and would not nearly...
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Updated 3 hours ago Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
Updated 3 hours ago The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
Updated 3 hours ago January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Updated 3 hours ago Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
Updated 3 hours ago South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.