NEDLAC'S EXECUTIVE COUNCIL DISCUSSESBUDGET

20 February 2004

Nedlac's first Executive Council meeting of the year focused on the 2004/2005 budget, with a presentation from the Minister of Finance, Trevor Manuel, and an opportunity for constituencies to engage with the Minister on various aspects of the budget and economic policy.

Minister Trevor Manuel was joined by the Deputy Minister of Finance, Mandisi Mpahlwa, the new Director-General of the National Treasury, Lesetja Kganyago and several other senior treasury officials. Government's delegation to Nedlac was led by Minister of Labour, Membathisi Mdladlana, and included the Minister of Trade and Industry, Alec Erwin and Minister of Public Works, Stella Sigcau.

Labour's delegation was led by the General Secretary of Cosatu, Zwelinzima Vavi, President of Fedusa, Mary Malete, General Secretary of Fedusa, Chez Milani and Cunningham Ngcukana, General Secretary of Nactu.

The meeting was chaired by the new President of Business Unity South Africa (BUSA), Patrice Motsepe. The new CEO for BUSA, Bheki Sibiya, was also welcomed to the meeting, and was joined by several other senior business delegates.

The community delegation was led by Sizwe Shezi, President of the South African Youth Council and included representatives from the Women, Disabled, Youth, Financial Sector Coalition, Co-operatives and Civics sectors.

The overall response from the Nedlac constituencies to the budget was positive. Issues around which some discussion was held included the balance between social spending and capital, or infrastructure spending. Tax on retirement funds, and the adjustment of the tax-free lump sum were issues raised by Fedusa. Minister of Trade and Industry, Alec Erwin, reminded the meeting of the importance of Nedlac as an institution in terms of providing an opportunity, through talking and listening to each other, of finding the right balances in the economy.

With regards to the Growth and Development Summit, Minister of Labour, Membathisi Mdladlana, urged constituencies to consolidate the reports of what they have done to implement the agreements reached last year. All the parties tabled preliminary reports to the meeting, but it was agreed that the next Executive Council meeting, on May 21, would discuss a consolidated report on the collective efforts of the Nedlac constituencies.

As this was the last Executive Council meeting before the elections, and it could be possible that some of the "Nedlac" Ministers do not return to those positions, constituencies took the opportunity to thank them for their commitment to Nedlac and social dialogue.

Contact Jennifer Wilson on 011 328 4211or 083 652 8524