#EFF Statement on the Medium-Term Budget Policy Statement (#MTBPS)
In his Medium-Term Budget Policy Statement, Minister in Finance, Mr. Pravin Gordon has reaffirmed the government's misguided pursuit of the National Development Plan which is rooted in the neo-liberal logic that has not worked for the past twenty years.
Mr. Gordon, through the NDP hopes to improve South Africa's economy from its challenges of poverty, inequality and unemployment. EFF has said before that the NDP will not do anything meaningful to transform South Africa except to continue the same patterns of ownership and economic participation that leave most in society marginalized.
EFF rejects the plan for tax incentives for big business as a means to job creation. The central challenge of unemployment cannot be resolved through bribing business with tax incentives or implementation of the youth wage subsidy. Sustainable development that yields real jobs is possible through massive investments on state led industrialization. In addition, those sectors of the economy, where we imported goods that could be successfully produced locally, there should be initiative to substitute them through the development of local industry. A case in point is the importation of chicken when South Africa has perfect ecological conditions for chicken farming.
The announcement to cut the conspicuous spending on government officials has been a call Economic Freedom Fighters makes in its Founding Manifest; the manifesto states: "the EFF advocates for public representation that is not defined by unnecessary luxuries and benefits, most of which costs the state unnecessary and very costly sums of money". Furthermore, it states that "to decidedly address this question, the EFF will advocate for a policy position that will lead to representatives not being bought cars by the state, and not being bought houses either... As public representatives with salaries, ministers, MECs and councillors should use their own cars and stay in their own houses, paid for by the salaries they are given by the state".
Mr. Gordon's move is superficial and must be read as a hypocritical gesture in light of the upcoming 2014 general elections, since if genuine his first move would be to radically subject Nkandla to review; in essence the massive spending that has gone into the presidential residence in Nkandla leaves the efforts to cut spending wanting. The EFF manifesto calls on public representatives to use public services as a way to concretely commit them to the fight for the improvement on public services which would also lead to massive cuts in perks.
The EFF Founding Manifesto further states that "South Africa's current system of having the legislative capital (with the national parliament) in Cape Town and the administrative capital in Tshwane is wasteful of time and resources, which could be used for developmental purposes. The EFF pursues a position that both the legislative and administrative capital should be in one city, which should be Tshwane, because of its accessibility. Public representatives will, in this one capital, have adequate time to address issues of their responsibility, not having to travel almost every day".
EFF therefore calls on National Parliament to be moved from Cape Town to Tshwane. This would lead to a further massive cut in spending on government officials. The idea of two provinces hosting government administration is costly and completely unnecessary.
The overarching ideological logic of government macroeconomic planning will not change the lives of many as it does not address the fundamentals of property ownership patterns that subject most South Africans, blacks in particular, to perpetual poverty. There should be massive land redistribution on the principle of land expropriation without compensation for equal redistribution; the nationalisation of the destructive and murderous mining magnets, together with banks that hold massive numbers of our middleclass population in debt slavery, all without compensation. The proceeds in these sectors must be redirected into local investment for massive industrial development that will lead to meaningful jobs and livelihoods.
Economic Freedom Fighters is the only party with a real plan to transform the lives of South Africans and lead to greater participation in the economy and share in the country's wealth.
Statement issued by the Economic Freedom Fighters, October 23 2013
Click here to sign up to receive our free daily headline email newsletter
