Public Finance and Monetary Policy Chamber Activities

Overview

The Public Finance and Monetary Policy Chamber experienced difficulties in defining its work programme during 1998. Contributing to these difficulties were the constituencies' different positions on macro-economic policy. Nevertheless, the chamber agreed to pursue a programme of briefing sessions and information sharing.

The Nedlac constituencies have recently committed themselves to improving the functioning of the chamber. The parties have formulated a work programme that includes, amongst other issues, negotiations on a Framework Agreement on Fiscal and Monetary Policy, the Budget Reform White Paper and Tax Policy Reform.

The Budget

Meeting the developmental challenges that face South Africa has required a considerable reallocation of resources. Over the past four years, Nedlac has discussed expenditure priorities. This has provided government with inputs from business and labour on budget expenditure priorities.

As part of improving dialogue on the budget and budgetary process, the Department of Finance led a chamber session on increasing income generation by improving tax collection. The session, which was addressed by Deputy Director General of Finance, Andre Roux, also covered deficit reduction, deficit funding, government dissaving and co-ordination of fiscal policy with monetary policy.

Monetary Policy

The chamber held a preliminary discussion session in preparation for a special session on monetary policy. Member of Parliament and of the Finance Portfolio Committee, Ben Turok, led discussions on the autonomy of the South African Reserve Bank. His input was based on a report commissioned by the Portfolio Committee regarding the autonomy of central banks.

A special session on monetary policy with the Governor and two Deputy Governors of the Reserve Bank covered the following issues:

• The functions and responsibilities of the SARB.
• Recent developments in emerging markets and the implications for South Africa.
• Interest rate policy and exchange rate policy.
• Institutional arrangements in respect of monetary policy.
• Financial market regulation

Delegates to the Public Finance and Monetary Policy Chamber (including alternates)

Business

J. Buys (Convenor)
D.M. Dykes
R. Gouws
M. Leaf
T. Main
W. Lacey
T. Pasiwe

Government

E. Masilela (Convenor)
F. le Roux
M. Ramos
H. Kleynhans
I. Momoniat
A. Netshivungululu
A. Roux

Labour

N. Coleman (Convenor)
K. Albertus
T. Ehrenreich
D. Makhura
A. Palane
E. Pillay