MEDIA STATEMENT BY THE
INKATHA FREEDOM PARTY


Not Much To Hope For In Budget

27 February 2013       

 

 The ANC economic model does not work and cannot work.  It is a formula for long-term poverty which addresses no present-day problems.  In essence, it is a two-tier welfare system for the poor and the parasitic rich at the expense of productive South Africans.

 

The economic compact proposed by the ANC budget after budget is not sustainable as it requires maintaining 18 million people on social welfare programs while utilizing the State to perpetually subsidize the super-rich, the captains of unviable industries and phony entrepreneurs, at the expense of a rapidly diminishing and over-burdened middle class.

 

Thus far all budgets have reflected the ANC-led Government having no vision for the economic leadership of the country to the point of sub-contracting the formulation of such vision to the National Planning Commission, only to end up praising in words and ignoring in facts the report of that Commission.  We are now on the vicious downward spiral of unsustainable social grants, growing unemployment, shrinking of the industrial basis for lack of genuine competitiveness, growing social unrest and protest, and the consequent reduction in fixed domestic and foreign investment and credit downgrading, all of which are leading to the country becoming poorer, with no alternative in sight.

 

South Africa has already missed some of the great opportunities granted it by history, such as remaining the gateway to Africa in the largest continental economy.  The ANC-led Government is not only neglecting but even undermining the two fields in which the greatest measure of employment can be generated, namely agriculture and tourism, including by maintaining the monopolistic position of South African Airways which has made South Africa an unviable destination, and by failing to bring about the green agricultural revolution advocated by the IFP and centred around larger farming units, high added value, labour intensive crops and the utilization of produce as an alternative energy source;

 

Thus far ANC budgets have fuelled bankrupt policies with toxic subsidies.

The Minister of Agriculture is responsible for policies which led to a 50% drop of employment in our fields, and the Minister of Trade and Industry is responsible for placing our economy on addictive steroids in the form of subsidies and the reduction of international competition, which has shrunk our industrial basis and forcibly transferred huge resources from our impoverished families into the hands of the rich and super-rich.

 

Issued by Mario GR Oriani-Ambrosini, MP

 

IFP Spokesman on Public Finance

 

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