Dr. Pieter Mulder: FF Plus leader, Debate on Medium Term Budget Policy Statement and first reading debate - Adjustments Appropriation Bill, Parliament, November 7 2013
Honourable Speaker,
When South Africa's new constitution was signed December 1996 the overall index on the Johannesburg Stock Exchange stood at 6 666. Today it stands at 46 000. On thát day the London gold price stood at $368. Today the gold price is $1318. But we must not bluff ourselves with numbers. Mining, which should have benefitted from the gold price, has shrunk from a 15% contribution to the country's GDP to only 5,5% last year. Strikes and demands for unreasonable wage increases of 60% played a role in this. On that day a US dollar cost R4,69. Today a US dollar costs R10,15. Today the South African economy is slowly moving in the wrong direction.
The economic growth rate remains low, the government is not succeeding in reducing unemployment and problems of poverty remain very serious.
The honourable minister of Finance, to a large degree succeeded in maintaining a balance between financial restrictions and the demands placed on government spending. Without a radical change in the economic direction, the minister will not be able to maintain this balance much longer.
What is the main reason for the economy moving in the wrong direction? The main reason is the ANC's continual interference in the private sector and specifically the ANC's ambiguous message to the private sector and to foreign investors.