Job Seekers Grant: ANC copies another DA policy, yet also lacks the will to implement this one

President Jacob Zuma has apparently cherry-picked another DA policy and given it another name. The ‘job seekers grant' appears to be a narrow version of the opportunity voucher that has been central to DA policy for a decade.

The "job seekers grant", tabled by President Zuma at the ANC policy conference following submission by the National Youth Development Agency and the ANC Youth League, will provide funding to school leavers to cover job search costs, and will apparently be linked to formal training.

The problem is that the ANC is driven by the political opportunism of various factions, whether the unions or the youth league, rather than by the logic of tackling specific labour market failures. An opportunity voucher would only work optimally if it is complemented by a youth wage subsidy and if it applies broadly to job search costs, training, education and seed capital.

Furthermore, like the Youth Wage Subsidy, the job seekers grant has little prospect of seeing the light of day because Mr Zuma is restrained from implementing the policies he announces by his alliance partners. This President is in office, but not in power.

The DA's opportunity voucher would provide funding to young adults who would like to start their own business or study further. We want to give young people a foothold on the ladder of opportunity. 

These vouchers would be allocated according to strict requirements based on the country's skills shortages. They will be available to individuals who have completed matric, and are designed to help pay for further education, and boost the small business sector. 

The voucher would entitle the graduate (a) a partial subsidy of university or FET college fees; (b) seed capital to establish small or micro enterprises subject to a well-formed business plan; and (c) a state guarantee to cover loans extended by commercial banks to graduates to establish small or micro enterprises subject to well-formed business plan and other requirements. 

The value of the voucher will be up to a maximum of R6000, and would vary according to the region where the applicant is applying. The voucher would be paid over three years, i.e. R2000 per year. Qualification for the voucher in the second and third year would be conditional and incentivised, for example, on the recipient passing his or her exams.

As with the Youth Wage Subsidy, the DA will support any sound policy that, if implemented, can help to reduce youth unemployment. The real question is whether President Zuma can muster the political will to stand up to those in his alliance, and implement them.

We will see to it that he does.

Statement issued by Tim Harris, DA Shadow Minister of Finance, June 28 2012

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