NEDLAC'S PUBLIC FINANCE AND MONETARY POLICY CHAMBER AGREES TO FOCUS ON FIVE KEY ISSUES THIS YEAR

15 July 1996

In an effort to increase its impact on South Africa's financial and monetary policies and processes, Nedlac's Public Finance and Monetary Policy Chamber has finalised a detailed implementation plan to take forward its whole programme, Nedlac Executive director Jayendra Naidoo said.

At a meeting of the Chamber held last week in Johannesburg, an agenda and time frame for the year ahead was finalised and key issues identified for the Chamber's attention are:

• the 1997/98 Budget (including a workshop on understanding the revised Budget process; tax reform; review and reprioritisation of expenditure; closer liaison with the Parliamentary Joint Standing Committee on Finance);
• government's Macro Economic Strategy. Government will make a presentation on this to a special extended meeting of the Chamber on August 15. Key issues emerging out of the strategy which need to be considered by the Chamber will be identified and discussed. Specific deadlines will be set for these discussions, with a report to be tabled to the Executive Council in February;
• ways of maximising benefits and minimising costs from the depreciation of the rand, and options for an exchange rate policy. A workshop is scheduled for August and will include discussion of the impact of the exchange rate fluctuations on different sectors of the economy;
• South Africa's debt situation and deficit reduction. A special task group is to be set up by the Chamber to consider proposals and implications of strategies to address the debt and deficit reduction, and to report back to Chamber members early next year at the latest;
• capacity development. In order to maximise the quality of the Chamber's deliberations and processes, the capacity of each constituency will need to be strengthened. To this end business, labour and government are to identify their needs and to make proposals for assistance to Nedlac.

" This very comprehensive programme will ensure that whatever Trevor Manuel will say in his March 1997 Budget speech will really be based on the most substantial dialogue on fiscal and monetary policy ever in South Africa," Naidoo said.