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1997 Summit

Address by the president of Sanco, Mlungisi Hlongwane,on behalf of the community constituency

Introduction

It is both a pleasure and an honour to share the same platform once again with theDeputy President of South Africa, Mr Thabo Mbeki; the President of the Congress of SouthAfrican Trade Unions (Cosatu), Mr John Gomomo; the Minister of Labour, Mr Tito Mboweni;the chairperson of Business South Africa, Mr Hans Smith; and the executive director ofNedlac, Mr Jayendra Naidoo.

Furthermore, one feels especially fortunate to be one of the speakers at the annualsummit of one of the central organisations in South Africa, namely, Nedlac.

In 1993, when comrade Chris Hani was assassinated, people in and outside South Africathought that now would be the time that South Africa would be plunged into a bloody civilwar. This did not occur. In 1994, on the eve of elections, with some political partiesthreatening not to participate in elections and an ethnic kingdom being proclaimed, againthe "realists" were proclaiming a war. This did not occur. When the MassDemocratic Movement pronounced the reconstruction and development programme (RDP), againthe intellectuals predicted that if the "wish list" was not attained there wouldbe an armed insurrection. We are still waiting.

How much has South Africa achieved?

If we have to be honest in our analysis of the democratic South Africa, we have tostate that it is correct to observe that the country has not plunged into a major civilwar. However, the one war which South Africans have consistently cried out for, since theadoption of the Freedom Charter in 1955, is the war on poverty, which is still missing.

The Budget

In the 1997-98 Budget speech of comrade Trevor Manuel, we noticed a dramatic changefrom previous Budget announcements. Firstly, the speech was not made only in Afrikaans orEnglish as in previous years. Secondly, the budget allocated considerably more funds tosocial services than in previous years. However, the Budget also contained othercurve-balls, and one does not include "sin tax" in this category. For instance,we have relaxed exchange controls so that money is able to move in and out of the countrywith relative ease. We will state in no uncertain terms that this is directly in thefavour of South Africa and international business. Albeit, there are polemic argumentswhich seek to prove that there are benefits for the average South African but which doadmit that these are indirect benefits. However, we still need for South African businessto take the same risks and trust our government, as our government is trusting it, byproviding the financial cover for the reconstruction and development of South Africa, likein housing.

Furthermore, a large percentage of the Budget has gone to service the debt of SouthAfrica. However, this debt is that which was odiously accrued by the previous racistgovernment for their golden handshakes and the oppression of the freedom-loving people ofSouth Africa. Thus, one has to conclude that although we are gradually moving in thecorrect direction, the war on poverty is still missing in action.

Our goals

On June 1, 1996, the date of Nedlac's first annual summit, we set ourselves a range ofsocial goals. Let us further examine them so as to ascertain exactly how much have wereally achieved.

The alleviation of poverty

In terms of the alleviation of poverty, it has become abundantly clear that we do nothave accurate information on the extent of poverty in South Africa. We have to state thatthis is a direct consequence of the failure of the government to effectively monitor andpublicise poverty. This must be observed in the light of the Reserve Bank being able tomonitor abstract economic indicators like inflation, interest rates, the strength of thecurrency, etc.-incidentally that which business is mostly interested in. We state to thegovernment, and even business for that matter, that we as the community constituency arewilling to monitor poverty-just provide us with the training of personnel and the relevantfunding, and we will cater for this overarching consideration.

Furthermore, the glaring anti-rural bias of policy is becoming more and more worrisome,as is reflected by the budget cuts suffered by the Water and Land Reform ministries. Moreso is the cut in child welfare benefits, in an effort to redistribute, which only seeks toprove that more resources need to be extended towards that sector of our communities.Already, we are beginning to feel the inadequacies of the housing subsidy, which is beingeroded by inflation. We do recognise that a major study will be released on poverty.However, our concern is twofold, namely, the lack of adequate monitoring facilities and,more fundamentally, that the balance between rich and poor has not changed sufficiently,notwithstanding our political liberation.

Job creation

Job creation has become more and more of a national disgrace since the private sectorhas grown by 3% in 1996, but it persists in cutting jobs. It is of national concern thatconcepts and terms such as "job loss" form part of our language. We say to allrole-players in Nedlac: we have to ensure that there is labour-intensive programmes now!

Services and tariffs

We wish to relaunch the Masakhane campaign which, if we care to admit or not, is stillinvariably linked to the provision of services and the tariff system. However, theinequitable tariffs for water and electricity still remain. We do note that apartheiddeals under which the rights to water were granted are gradually being revoked, and wewould like to applaud Minister Asmal's efforts to supply water to the rural areas andensure a lifeline supply to all South Africans. But we are gravely concerned with theactions of some ministries which make it virtually impossible for the water goals to berealised. With regard to electrification, we will state that progress in the urban areashas been quite good. However, we fear that without better subsidies, electrification,especially in the rural areas, could grind to a halt, or will not be able to provide thedevelopment kick-start, given the severe poverty existing.

Human resources

Let us reiterate an already well-known fact: South Africa is desperately in need ofhuman resource development. In another recent survey, South Africa came second-last in thecategory of "people". We have observed and participated in the debate on skillsdevelopment, and note that the debate has centred around the proposed 1,5% training levy.Firstly, let us state that if we are sincere and serious about developing South Africainto a somewhat independent economic entity, then we have to realise that the statisticsbeing released call for a major emphasis on training, even more so when the economic andfinancial market is moving rapidly away from a commodities-based market to that of aknowledge-based one. Secondly, to achieve this aim, we must realise that skillsdevelopment should not only occur on the shop floor. We have recently submitted ourcomments on the Department of Labour's skills development strategy green paper, wherein wehave highlighted the insufficient attention to skills development for community and socialdevelopment.

Consultation

One of our major concerns, which goes against the chief principle of Nedlac, is thedebates which occur around the lack of consultation. From last year's summit, many of thedebates around policy differences have begun with government being accused of notconsulting. A prime example is that of the national commission on higher education. We dobelieve that this situation is untenable, but not irreversible. There is an inherentresponsibility on those who wish to be consulted to make the necessary arrangements to bepart of the policy process, and there is an inherent responsibility on government to makecertain that the necessary consultation takes place. We believe that Nedlac can play avital role in ensuring that consultation takes place on a variety of issues that couldbecome contentious.

Improvements in government capacity

Furthermore, it would be unwise for us not to recognise that government's capacity hastremendously improved since 1994. We do believe that this improvement of capacity augurswell for the delivery of a better life for all. And we do warn government that we willtest this newfound ability at all times!

Crime

We would like to commend Nedlac on the efforts it is making in terms of crimeprevention and control. It is our opinion that Nedlac is the only body in South Africawhich is calling for genuine action plans to prevent and curb crime. It goes withoutsaying that the Development Chamber, where the community constituency is based, has takenthe lead in this regard. The recent exposés of the Truth and Reconciliation Commission(TRC) has fundamentally proven the extent to which crime has taken root because of theviolent and unjust system of apartheid. Furthermore, we note with concern that mostanti-crime projects are centred on central business districts and suburbs, not thedisadvantaged communities, where it is really required.

The extremely disadvantaged

This summit today is a prime example of the urgent need to redress past injustices. Ifwe look around we will observe that all the principal speakers belong to that species ofthe human race known as males. Thus, we must commit ourselves to addressing the training,affirmative action, and leadership-enhancement needs of women and the disabled inparticular.

Nedlac itself

The baby syndrome

We, as the community constituency, do realise that in many ways we are regarded as thebabies in the Nedlac process, as the constituency who was last to enter the chamber, andseeking assistance at every corner. We now unequivocally state that the otherconstituencies in Nedlac can continue to have this opinion at their own peril. The timefor Bible-sized complaints is over. Yes, we wish to enjoy the fruits of capacity, but inno uncertain terms will we allow this to be an excuse for a lack of performance. We willstate at this summit our intention to take up our rightful places in the other threechambers of Nedlac!

Dialogue

We must state that there has been a marked improvement in the dialogue within Nedlacbetween stakeholders. However, we do believe that business has often been able to dictatethe agenda, with government compliance, especially when government wishes to removecertain topics from the agenda. However, we will not want to get into a discussion ofwhether our perception is correct or incorrect, but state that this situation is nottenable any longer. We have taken a decision to ensure that we exhibit our political willand ensure that there is no one constituency which enjoys hegemony, other than ourselves!

Agreements

Nedlac has been able to exact many agreements, for example, on a national developmentagency and job creation. However, we do note with extreme regret that where agreementswere really needed-like on basic services, tariffs and housing-government departmentscontinued to attempt to keep these issues of the negotiating table.

We wish to state, as the community constituency, that the overarching developmentframework is still the RDP-that is, the reconstruction and development programme for thosewho may have forgotten. One of the major reasons for the missing war on poverty is thatthere are too many government policies which do not fall in line with the RDP. We arestill waiting for the promised negotiations on the national social agreement, as containedin Gear. Another is the proposed negotiations around the various stakeholder positionpapers, like community's aptly-named "Return to the RDP".

Information accessibility and resources

Sufficient consultation has mainly been hampered by the lack of technology available tothe role-players in the community constituency. This has been a well-documented point, andwe in the community constituency are attempting individually to address this problem,since assistance has not been forthcoming from the other stakeholders in Nedlac.

Hence, the constituency has experienced real problems with access to information which,sadly, is not because of a lack of initiative on the community constituency's part, butchiefly because of a lack of resources. We do recognise the attempts by government toremedy the situation, in terms of a national development agency; however, while thisagency is not present, many community-based organisations are at the whim and fancy of thefunding agencies.

As a word of advice to our government in particular-there is a fundamental need todevelop clear policy with regards to community participation and capacity in line with themandate of the RDP and the RDP white paper.

Conclusion

The community constituency is extremely optimistic about the year ahead. We do believethat the social partners are in a position to realise that the problems in South Africaare not those which are problems of just one constituency, but the problems of allconstituencies.

We reaffirm our dedication to the conclusion of the social goals listed above. Webelieve that all social partners will be redoubling their efforts in an honest andproblem-solving manner. We will continue to be the prime advocates of the low-income,rural and urban, women, youth and disabled, and the employed and unemployed people ofSouth Africa, who together fought for the liberation of our country for all to enjoy.

We are of the firm belief that the ultimate objective of our political dispensation wasto declare a war on poverty (in all its forms). We now need to admit that this has stillbeen left floundering.

If we wish to transform our country in line with the vision expressed in the FreedomCharter and the RDP, we need all role-players to express a strong sense of political will,especially when policy is not line with the stated vision.

If we do not, history will judge us harshly!

Let us stride together so that we are able to conquer the challenges of the 21stcentury!

I thank you.

 

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