DA declares war on B-BBEE system
With a six-point economic plan in its arsenal, the DA is planning an all-out assault on broad-based black economic empowerment (B-BBEE) and employment equity, says party leader John Steenhuisen.
Quoting the R1 trillion empowerment spoils enjoyed by about 100 politically connected people – as pointed out by William Gumede, associate professor at the School of Governance at the University of the Witwatersrand earlier this year – Steenhuisen said they were proposing policies which will be merit-based.
'It's the story of millions of South Africans: locked out by a system that rewards the connected and punishes the rest.
DA vows to scrap B-BBEE
'B-BBEE has done nothing for ordinary South Africans.'
At a media conference yesterday, he called B-BBEE laws one of the country's greatest dead-ends to economic progress.
'B-BBEE, in practice, has become a hurdle rather than a help. Business are forced to comply with onerous and costly criteria if they are to have full access to opportunities.
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'In many cases, achieving all criteria are beyond the available cash of SMEs, making it hard for them to prosper, while large, connected organisations continue to rake in the rewards.
'The only empowerment South Africa needs is more jobs.'
Steenhuisen said the DA's plan would turbocharge economic development.
Six-point plan
'We don't need another talk shop to discuss what needs to be done,' he said, again dismissing the ANC's plans to run a National Dialogue about the economy, as well as its cost of R700 million. The party withdrew from it earlier this year.
The plan proposes replacing existing empowerment and equity laws with policies that create opportunity based on need and merit, removing red tape for small businesses and reforming labour laws to make it easier to employ citizens and expand.
The party also wants Eskom's monopoly broken, with the electricity sector opened to competition in both generation and distribution, and municipal electricity revenue ring-fenced for investment in infrastructure.
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The DA also called for urgent modernisation of rail, ports and digital networks, including the concession of freight rail and port terminals to private operators and ending Transnet's monopoly.
Steenhuisen said SA's poor port rankings were holding back exports and economic growth.
Public spending reform, particularly around flaccid stateowned enterprises (SOEs) is another priority.
Public spending reform a priority
'Bailouts to SOEs have cost R310 billion. Enough is enough. Government needs to stabilise debt, cut waste and root out ghost employees,' said Steenhuisen.
'Public money must build infrastructure and provide services, not bankroll incompetence.'
The plan also touches on local government failures and stabilising coalition administrations.
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'Coalition chaos, corruption and collapsed service delivery cannot continue,' he said.
Minimum representation thresholds for councils must be implemented to protect service revenue such as profits from the sale of electricity, so it is reinvested in infrastructure.
The party also wants greater private sector involvement in municipalities that are unable to deliver basic services.
'Restoring the rule of law'
On restoring the rule of law, he said: 'SA is in need of a professional, well-equipped police service that can effectively fight crime and make South Africans feel safe in their homes again.'
This includes establishing a new anticorruption commission, 'a Scorpions 2.0'. The DA also called for lifestyle audits on senior police officials, strengthening rural safety measures and improving police capacity to combat crime.
Steenhuisen said these reforms were simple and could 'build a superhighway to prosperity' and create an economy where participation is not determined by race or political connections.
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The DA intends to table the plan in Cabinet and parliament.
'The ANC can no longer just steamroller whatever they want into law,' Steenhuisen said.
'This must become a fight: a fight for growth, a fight for jobs.
'If you want clean water in your taps, electricity you can rely on and jobs for your children, this is your plan.'
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