COSATU’s Submission on the Medium Term Budget Policy Statement, 2014

Introductory Remarks Opening comments; and Delegation.

Critical Objectives for COSATU 35% unemployment; Stagnant economic growth rates; Triple challenges; Corruption; Under-expenditure; and Wage bill.

Broad Macro-Economic Concerns Counter-cyclical policies; Radical economic transformation; and Triple challenges crisis.

Economic Growth Forecasts Economic growth and government expenditure reduction; Costs of spending cuts; Decline in real growth; and International comparisons.

Government Expenditure Savings vs. Austerity Cut Backs Legitimate savings vs. actual cuts; Provincial and Municipal savings; and Wasteful expenditure and corruption.

Cut Backs and Austerity Wasteful expenditure; Balancing the budget on the backs of the poor; Previous state retrenchments and downscaling; and Unfunded and unfilled vacancies and capacitated developmental state.

Wage Bill Low wages; Wage gaps; Motivated and capacitated public service; Skills retention; Local economic boost; Family dependents; and Bargaining councils.

State Owned Enterprises and Assets Privatisation, out sourcing, agencification, labour broking; Disposal of non-strategic state assets; Wasteful expenditure and SOE crises; and International models.

Fiscal Framework Future unallocated reserves.

Expenditure Priorities & Division of Revenue Social services expenditure; NHI funding models; and 11 million jobs target by 2030.

Increases in Revenue Disposal of state assets; VAT; Income taxes; Company taxes; and Land taxes.

Corruption Successful prosecutions; and Political will.

Medium Term Strategic Framework Interventions Government commitments to boost energy, rail, port, oil and gas infrastructure; and Improving labour dispute mechanisms.

Expanded Public & Community Works Programmes Temporary relief; Minimum wages; Skills development; and Cheap labour vs. decent work.

Employment Tax Incentives Subsidy for labour brokers; New vs. existing jobs; Displacements; and Geographic and sectoral determinations.

Manufacturing, Agriculture, Beneficiation & Industrialisation Further manufacturing support (motor and renewables); Support for agricultural sector; Mining beneficiation; and Nuclear energy.

Transport Rail upgrading and procurement; Public transport; and E Tolls and user pay.

Basic Education School infrastructure; Mud schools; Text books; and Teacher vacancies and salaries.

Post-School Education & Training NSFAS funding expansion.

Health ARVs; and NHI.

Social Protection Expansion; and Comprehensive Social Security.

Defence, Public Order & Safety Judiciary backlogs; Correctional Services corruption; and SSA R3 billion corruption allegation.

Economic Infrastructure Moloto Road; Water; Solar and renewable energy; and Economic stimulus.

Housing & Social Infrastructure Housing review

Workplace Inspections 30% increase in workplace inspections.

Rural Development & Land Reform Sufficient funding to address backlog in restitution claims and to provide new farmers with sufficient support.

Public Procurement Tender transparency; and Local content in state procurement.

Funding Local Government Long term solutions; and Infrastructure funding.

Conclusion & Thank you.