R2.2 billion shortfall and suspension of MCEP will lead to more job losses
29 October 2015
The announcement that the Manufacturing Competitiveness Enhancement Programme (MCEP) will not be accepting any more applications due to its R2.2 billion shortfall will effectively mean that companies in the manufacturing sector will be precluded from the programme and ultimately result in downsizing of companies and job losses.
The DA will therefore request the Minister of Trade and Industry, Rob Davies, brief the Portfolio Committee on what funds in his existing budget can be diverted to prioritise this crucial programme. With unemployment figures on the increase it is critical that opportunity is prioritised in departmental budgets.
The reason given by the DTI is that a very large number of applications across the manufacturing sectors now far exceed funds set aside for the programme.
The DA has consistently warned the Minister of this potential consequence of not reprioritising funds from his department’s existing budget to accommodate the growing number of companies seeking assistance.