Small business needs less red tape and more support - not a new government department 

South Africa does not need another government department, and especially not a ministry of small business. Voters should reject ANC Secretary-General Gwede Mantashe's proposal for a small business ministry as the election gimmick that it is. In addition, this proposal flies in the face of governments' promise to rein in the public-sector wage bill.

The first thing government should do to support entrepreneurs is to cut the red tape that makes it too difficult and expensive to start and grow small businesses. All existing legislation should be reviewed to ensure compliance costs for small business are minimised, and put all new laws through the same regulatory impact assessment process. This should be done by all existing ministries.

Second, the Department of Trade and Industry needs to boost the financial and non-financial support offered to small business, streamline support through "Opportunity Centres" in our communities and improve access to support through "Opportunity Cards".

Third, all government departments should make it easier for small businesses to win government contracts and pay them on time when they do win tenders.

All of these proposals, and the others contained in our economic policy, can be implemented by existing departments. Instead of adding new ministries, cabinet needs to be streamlined, speak with one voice on the economy, and cut existing redundant ministries like the Department of Women, Children and People with Disabilities and the ministry of Economic Development that have proven ineffectual over the last five years. Furthermore, the World Economic Forum notes that "inefficient government bureaucracy" is the 3rd biggest problem factor for doing business in South Africa; a new government department would only add to this bureaucracy and inflate government's wage bill.

South Africans deserve a government that helps make it cheaper and easier to start small businesses, not a new government department.

Statement issued by Tim Harris MP, DA Shadow Minister of Finance, April 11 2014

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