Speech by Tim Harris MP, DA Shadow Minister of Finance, in the debate on the President's State of the Nation Address, National Assembly Parliament, Cape Town, February 20 2013

Mr Speaker,

Introduction

The President's speech, and the contributions from the ANC members to this debate, has let South Africa down, just when we need real leadership. This debate was an opportunity to assure South Africa that this government has big ideas to tackle our significant problems, to show that this president was prepared to take tough, even unpopular decisions to introduce key reforms to enhance delivery. But it was an opportunity missed.

Insiders and Outsiders

Yesterday's session was ended by the Hon Buti Manamela's sycophantic flattery. But it began with the ANC Chief Whip's paranoia about the fact that the opposition is now united. Well, Mr Speaker, the opposition is united because it is so obvious to all of us what a disastrous government the ANC has been!

The Hon Chief Whip accused us of being "conservative". I say it is conservative not to put every ounce of your effort into breaking down divisions between the insiders and the outsiders in this country. These divisions were created by Apartheid, but the ANC has widened them!

I will give you three examples:

1. The Institute for Justice and Reconciliation has found that, since 1993, inequality has increased.

2. Today, the dominant trade union leverages its political influence to block labour market reforms and keep 6,7 million outsiders in unemployment. They block education reforms too, to destroying our children's chances of working their way out of poverty.

3. The state-owned enterprises are the ultimate insiders - killing competition, undermining the ability of Small businesses to compete. Many parastatals survive on government bailouts and keep administered prices high, driving inflation and undermining growth.

This government does not stand up for the little guy. It stands for the status quo. That is the difference between the DA and the ANC. We stand for social justice; you stand for more of the same.

The DA's new economic policy would cut red tape to free up business, fix government education, rebuild state support for small business and help give ordinary people a stake in the economy.  That is why we are progressive and you - Sir - are the conservatives.

Response to the Minister of Higher Education

Honourable speaker. Members may not realize this, but there is a party in this house that didn't win a single vote at the last election, the South African Communist Party.

Nevertheless, we had the unenviable task of listening to the Minister of Higher Education telling us how he thinks it was a "stroke of genius" to create the Ministry of Higher Education. I'm sure he does: because of this new ministry he got to spend R1, 1m on a new BMW!

The Minister rattled off a series of apparent achievements in expanding access in higher education but failed to elaborate on the fundamental problem that FET graduates are not equipped for the job market. Or set out how he plans to deliver the 8500 Seta certificates or the 22000 FET certificates that are more than 6 months outstanding. Or say what he would do about the fact that residence fees at Fort Hare have increased by 100% this year.

Response to Minister of Public Service

Ministers Manuel and Sisulu both suggested reforms of education and the public service that the DA warmly welcomed. We would, because for more than a decade they have been at the heart of our policy alternatives for South Africa.

But forgive us some scepticism, because every time ideas like these have previously emerge from somewhere in the governing party the ANC's union alliance partners stop them in their tracks and stomp them to death. Why will this time be different?

Honourable President, I would also be interested in your view on Minister Sisulu's patriarchal, sexist and ageist advice to Hon Buthelezi on how he should address the Leader of the Opposition. It is unacceptable that a national leader repeats these views in this house. Will you speak out against them Mr President?

Minister Gigaba and Infrastructure

Then, Honourable Speaker, Minister Gigaba gave us long lists of projects he says this government is spending money on.

But it is difficult to take these lists serious when we look at this government's real track record of spending on infrastructure.

In the four years since 2009 the President has announced infrastructure spending plans totalling more than one trillion rand but, overall, this government has underspent on this promised infrastructure by more than R300bn. The bottom line is that you can chop almost 30% off any infrastructure number you hear the President, or his Ministers, promise.

Minister Patel also rattled off a list of projects, but there are also major question marks over his.

We agree with him that Africa is the future, but is it really a credible claim for him to gloat about our trade performance with the rest of Africa? Africa does have a billion consumers, but we are only the 10th largest exporter to the rest of our continent! Italy exports more than us. So do Spain, Holland and Korea. This is shocking given our place in the world and it is a failure of this government to engage properly with the continent.

The Youth Wage Subsidy

But every now and then this government has a good idea, like the youth wage subsidy. A policy that would create 178 000 for young people that was announced by the President at this podium in 2012. And what happens? Cosatu is allowed to block it for three years while youth unemployment continues to grow.

Yes Minister Patel. To show it can work, and despite the fact that the vast majority of economic budgets sit at national level, we have piloted a Youth Wage Subsidy here in the Western Cape. In three years, it has created 3000 jobs with a 60% retention rate at R30 000 per job.

Pilot projects like this, a resistance to vested interested, and a commitment to good government are the main contributing factors to the current situation where the Western Cape has by far the lowest unemployment rate in South Africa, and incredibly low numbers of discouraged worked. The DA truly has turned this into the province of opportunity,

Young voters

Why does the ANC seem to care so little about young people? Why, when there are 4,7 million South Africans under the age of 34 in our country who can't find work?

Could it be that they don't represent them? Let me tell you what I mean:

30% of South Africans are under the age of 34. Next year 9m of us will be eligible to vote.

And there are twelve MPs in this house who are under the age of 34. But nine of the twelve are on our side of the house!

That's right, when young South Africans look to Parliament for their representatives, they look to the opposition benches.

If you ever want to know why we in the DA are so confident about our growth and the ANC's decline it is because we are speaking for young South Africans and they are not!

Mr Speaker We congratulate the ANC on their 100 years centenary, but their age is showing.

Response to Deputy Minister of Public Works

On the topic of things that are past their sell by date, the next speaker is the deputy minister of Public Works. I personally am looking forward to hearing three things:

First, exactly how he believes this government is on track to create 5 million jobs on track for 2014 when today there are 1,2m more unemployed South Africans than there were when Jacob Zuma tool office?

Second, I hope he mentions the New Growth Path at least once to make the Minister of Economic development feel better about the fact that no one else, aside from him, mentioned it. It seems the market-led NDP had finally won out over the interventionist NGP.

And third, of course, there is the question South Africa is waiting to hear the answer to: how is department could justify spending more than R200m on the President's Nkandla residence? We are waiting Hon Minister...

I thank you

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