NEDLAC'S EXECUTIVE COUNCIL DISCUSSES MONETARY POLICY AND GROWTH ANDDEVELOPMENT SUMMIT IMPLEMENTATION

28 November 2003

At its final meeting for 2003, Nedlac's highest structure, the Executive Council, which meets quarterly, today held a focus session on monetary policy addressed by the Governor of the South African Reserve Bank, Tito Mboweni. It also received a report-back from Nedlac's Management Committee on progress in GDS Implementation processes.

The Governor took the Council through a presentation extracted from the November Monetary Policy Forums presentation. He covered economic developments in the international economy, as well as recent economic developments in the domestic economy, focusing mainly on issues of prices, inflation and interest rates.

The Nedlac constituencies then had an opportunity to respond. Labour, business, community and government were united in placing their focus squarely on the issue of job creation. Whereas the constituencies differ in some aspects of their approach to monetary policy, there was agreement that job creation has to be central.

In terms of a way forward, the Nedlac constituencies agreed that it was impossible to separate monetary policy from trade and industrial policy, as well as fiscal policy in looking at how to address the job losses that have been occurring. It was agreed that the next Executive Council meeting, which takes place on 20 February 2004, will include a discussion with the Cabinet Ministers dealing with these issues - namely Finance, Trade and Industry and Labour.

The Executive Council received a report-back from the Management Committee on the framework which has been adopted to guide the way in which constituencies report progress in implementing the Growth and Development Summit agreements.

It was reported, amongst other issues, that there has been progress on the implementation of the GDS Agreement on co-operatives, including plans for a study tour by the constituencies. Regarding the Government's Extended Public Works Programme, there will be a joint presentation to all four Nedlac chambers on 1 December to brief them on the progress in this agreement. The Executive Council expressed support for the Proudly South African "Buy Local for Christmas" campaign, details of which were tabled to the Council.

The Council agreed on a communications strategy for the GDS. It was agreed that the quarterly meetings of the Nedlac Executive Council will be the main focal points around which Nedlac jointly communicates progress and implementation of agreements, but each constituency can and must communicate on its own to its target audiences as well. It was agreed that an initial drive would be to ensure that business, labour, all levels of government, and community organisations, are fully aware of the contents of the agreement, and efforts will be made to ensure access to the text is widely available, either via Nedlac's website (www.nedlac.org.za) or via printed booklets.

Contact Jennifer Wilson on 083 652 8524