NEDLAC CHAMBERS' FINAL MEETING FOR 1995
11 December 1995
Nedlac's four chambers met on Thursday, 7 December, for the
twelfth and last time this year, marking the end of a busy and
formative year with an agreement reached in the Trade and Industry
Chamber, and a serious look at 1996's work-programme
priorities.
What follows is an overview of some of the outcomes of
Thursday's discussions.
- TRADE AND INDUSTRY CHAMBER
Agreement on technical and marketing support for small, micro
and medium-sized enterprises (SMMEs)
This chamber reached agreement on the establishment of a
competitiveness fund, which will be responsible for providing
technical and marketing support to SMMEs.
In terms of this agreement, the governing board of the
competitiveness fund will comprise representatives from labour,
business and government. The question of access to the
competitiveness fund will be determined when Nedlac considers the
definition of an SMME as contained in the small business bill.
Government has indicated that this bill will be Gazetted on 15
December. It will be considered in Nedlac early in 1996.
- For additional information, please consult pages 21 and 22 of
the 30 November 1995 Executive Council documentation, as well as
the document called "Enhancing technical and marketing support for
[SMMEs]".
- more - Supply-side measures
The context of this discussion is a major shift in the direction
of industrial policy in South Africa, which is contained in a
government document called "Support measures for the enhancement of
the international competitiveness of South Africa's industrial
sector", tabled in Nedlac for consideration on 16 November.
The chamber on Thursday resolved to have a bosberaad in the
third week of January 1996. This bosberaad will consider
government's proposals in detail, and will clarify all issues and
discuss the implications of government's proposals. Representatives
from all Nedlac chambers - including relevant government
departments, such as Finance, Trade and Industry, Mineral and
Energy Affairs, Agriculture, and Labour - will attend the
bosberaad.
The Public Finance and Monetary Policy Chamber on Thursday
indicated the need for Nedlac to also consider the future tax
implications of supply-side measures.
Progress with the Japanese Grant Fund-sponsored investigation of
the financing of training
South Africa's future international competitiveness and economic
performance will be significantly influenced by the ability of
government, employers and trade unions to cooperate to improve the
provision of training to all South Africans.
The first phase of a study on funding mechanisms for the
financing of training has been completed, and was presented to the
chamber meeting on Thursday. Recommendations on a preferred model
for the financing of training arose from this first phase of the
study.
A proposal for the second phase has been agreed to, and will
soon commence. This phase will, among others, involve the
implementation of the selected funding-mechanism model, as well as
broad consultation and negotiation with all stakeholders.
- PUBLIC FINANCE AND MONETARY POLICY CHAMBER
The 1996/97 Budget
The chamber's ongoing focus on the 1996/97 national Budget has
shifted to the revenue-side of the Budget, with the business
constituency on Thursday tabling a preliminary response in this
regard which concentrates on reducing the Budget deficit, and the
tax-to-gross-domestic-product ratio.
The future process for this crucial discussion will, among
others, include consideration of the Katz Commission report
(aspects of the Smith Commission's report will be considered as
well), and a meeting with the Parliamentary portfolio committee on
finance on 8 January 1996.
- more - Medium-term financial strategy
The government constituency on Thursday indicated that a first
report on a medium-term financial strategy will be made available
early next year.
Education on the Labour Relations Act
The chamber yesterday resolved that each Nedlac constituency
will nominate one person to create synergy in the constituencies'
individual efforts at educating all stakeholders about the content
of the new Labour Relations Act. This act will be Gazetted on 13
December. The nominated persons will start their meetings in
January 1996.
Extension of the deadline for public submissions on the
Government of National Unity's urban and rural development
strategies
The deadline for public submissions on these two government
strategies has been moved from 4 December 1995 to 31 January 1996.
Public hearings will take place in February next year.
- THE CHAMBERS' PRIORITIES FOR 1996
The prioritisation of issues on the chambers' 1996 agenda will
assist the planning process of issues to be tabled for agreement by
the Executive Council during next year. The chambers' discussion of
priorities will be continued at meetings of their convenors early
next year, and will receive serious attention at the Management
Committee meeting of 26 January 1996.
Of particular note is that, on Thursday, government in the
Labour Market Chamber indicated that a green paper on the basic
conditions of employment will be tabled in the chamber on 8
February 1996. The chamber must reach agreement on this
all-important issue in time for ratification by the April meeting
of Nedlac's Executive Council. The legislation to be drafted
subsequent to such ratification must be tabled in Cabinet not later
than 30 June 1996.
A paper on employment equity will also be tabled in the chamber
early in 1996. Legislation as well as policy directions will
emanate from this paper.
- NEDLAC PROTOCOLS DOCUMENT
In terms of the Nedlac Act and the Nedlac founding document,
Nedlac is required to develop protocols to guide its relationship
with other bodies, such as Parliament and the Financial and Fiscal
Commission. On 26 January 1996, the Nedlac Management Committee
will discuss a protocols document on Nedlac's relationship with
Parliament. The Nedlac constituencies are currently in the process
of formulating ideas on how this relationship should be conducted.
Once this process has been completed, dialogue between Parliament
and Nedlac will begin.