Economic stimulus package must be underpinned by meaningful reform
22 April 2020
Note to Editors: The following remarks were delivered by the DA Leader, John Steenhuisen MP, during a digital press conference following the address by the President on 21 April 2020. Please find attached soundbite from John Steenhuisen MP.
The DA welcomes the stimulus plan announced by President Ramaphosa last night. The measures included in this plan are broad enough to make a significant impact, and they are targeted at the right areas to help achieve the three objectives we identified for such an economic support package: keeping as many people employed as possible, keeping as many businesses open as possible, and intervening to help the poor and the hungry.
Importantly, the President resisted the pressure from inside his own party and alliance to fund this stimulus package from unsustainable and counterproductive sources like the PIC and tax hikes. His decision to approach global institutions such as the International Monetary Fund (IMF) and the World Bank for loans to make up our shortfall – after budget reprioritisation and accessing UIF reserves – was the right one.
We also welcome the direct nature of the poverty relief measures announced. Paying cash directly to poor families and making loans directly available to small businesses is the most rapid, effective way to target such relief efforts.