No cost cutting disappointing - Circle

Johannesburg - The Manufacturing Circle expressed disappointment at Finance Minister Pravin Gordhan's failure to announce some cost-cutting in his National Budget speech on Wednesday.

"The prioritisation of co-operation with and the promotion of dynamic businesses for the sake of growing our export competitiveness was heartening," director Coenraad Bezuidenhout said in a statement.

"[However], the budget proved a missed opportunity to announce initiatives to cut high administered costs and benchmark ourselves better against our competitors."

Gordhan presented his budget to the National Assembly earlier on Wednesday.

Bezuidenhout said Gordhan's endorsement of the Industrial Policy Action Plan would give manufacturers confidence.

The Manufacturing Circle did not support the special economic zones, which were allocated R3.6bn.

However, the strengthened manufacturing investment incentives and competitiveness allocations would help nurture manufacturing, he said.