REMARKS BY AFRICAN NATIONAL CONGRESS TREASURER GENERAL MATHEWS PHOSA TO A STANDARD BANK EXECUTIVE LUNCHEON IN JOHANNESBURG, July 28 2011

1.  You might be aware from media reports that the ANC decided on five priorities for government.

They are:

• Employment creation
• Education
• Health
• Rural development and land reform
• Crime and corruption

2.  We recently decided that local government should be added to that list, and specifically a focus on making local government more efficient and effective.

3.  From this political directive, Cabinet decided on 12 priority outcomes for our country, namely:

• Quality basic education.
• Quality health services for all.
• A safer and more secure South Africa.
• Heightened levels of employment through inclusive economic growth.
• Substantially higher levels of skills to create a capable workforce that can support an inclusive growth path.
• An efficient, competitive and responsive economic infrastructure network.
• Sustainable rural communities contributing towards food security for all.
• Sustainable human settlements and improved quality of household life.
• Responsive, accountable, effective and efficient local government systems.
• The protection and enhancement of our environmental assets and natural resources.
• An efficient and development orientated public service.
• The creation of a better South Africa, a better African continent and a better world.

4.  All of the above is planned against a GDP growth of 2.8% last year, after the economy contracted by 1.7% in 2009.

5.  After the economy expanded at an annualised rate of 4.8% in the first quarter of 2011 it seems that we have, like other parts of the world, hit a softer patch of growth in the second quarter.

6.  This is happening against a background of expected rapid growth in sub-Saharan Africa, led by countries such as Zambia, Nigeria, Mozambique, Ethiopia and Ghana.

7.  We have seen four successive quarters of increases in employment since the second quarter of 2010.

8.  This is led by government employment, accounting for almost two thirds of new jobs created since March 2010.

9.  We understand, of course, that globalisation will have its own effects on us through the deficit discussions in the USA as well as the European negotiations around Greece.

10. Let me deal with a few specific issues:

11. In terms of the Postbank, we will be applying for a licence, but our focus will be to apply at first for a deposit taking licence, and not a full banking licence. This application will be done in terms of the prescriptions of the Banks Act to the Registrar of Banks.

12. I know that there is also a keen interest in the topic of nationalisation.

13. As things stand now, we are dealing with the matter moving towards the ANC conference at the end of 2012. With perfect hindsight and an improved understanding of our external environment, we could have dealt with this matter in a more expeditious manner.

14. Criticism regarding the drawn-out manner in which we have dealt with this matter in terms of decision-making is valid.

15. Whether this debate focuses on the mining and energy sector, or on the financial sector (the banks) we will, at all times, look towards forums such as these today to gather opinions and to understand how our debates impact on foreign direct investment and on the local commercial partnerships that we have carefully forged here and globally.

16. As you hope, I also hope and believe that the centre will hold and that new compromises will be forged by the various parties that have an interest in the matter.

17. I certainly do not believe that we should indulge ourselves in meddling with the affairs of successful and profitable concerns.

18. We could, however, create state owned entities to compete in the market, such as in the mining sector.

19. We will read the reports that foreign direct investment in South Africa has declined sharply, in the context that our policies aimed at alleviating poverty and creating jobs should bring into play the sensitivity of the global environment to a stable and consistent policy menu.

20. We are aware of the fact that there is a strong perception out there that we have dropped the ball in terms of reconciliation and nation building.

21. Again, some of the criticism is valid, and we will certainly be spending time and energy in bringing minorities into main stream debates and decision-making.

22. The ANC will, in moving towards its' centenary celebrations in 2012, emphasize its approach of non-racism, and the fact that South Africa belongs to all who live in it.

23. We admit that corruption is a serious cancer that, if not tackled with vigour, determination and strong leadership, can destroy our future as well as our social security and cohesion.

24. We can, and will do more to tackle corruption in the public sector, and we will welcome your inputs in this matter.

25. Our whole job creation strategy is aimed at bringing the currently disadvantaged into the economic mainstream as soon as possible. Our unemployment levels are unacceptably high, and pose a risk to the stability of our society.

26. The success of our efforts will be determined by partnerships with the private sector, that will, hopefully see the current picture of the state as the main job creator, change over time.

I thank you.

Issued by the ANC, July 28 2011

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