Fin24

Cosatu hails youth subsidy omission

2011-02-11 15:26

Johannesburg - Trade union federation Cosatu on Friday said it welcomed the fact that President Jacob Zuma did not mention a youth wage subsidy in his state of the nation address.

Cosatu said the announcement of a youth wage subsidy would merely have acted as a subsidy to employers to replace older workers with younger ones, and deepen the problem of dual labour markets.

"We trust that the minister of finance will not reintroduce this issue in the budget," Cosatu said.

Zuma instead announced R20bn in tax allowances and tax breaks and a R9bn jobs fund, which Cosatu welcomed.

The labour federation called for more information on who would receive the money and tax breaks, and said proper monitoring and evaluation was needed.

Zuma called on the private sector, labour, community organisations, government departments and state-owned enterprises and development finance institutions to help with projects that had the potential to create jobs.

A state-owned mining company, the African Exploration, Mining and Finance Corporation, would be created soon. The company would undertake the mining of minerals of strategic significance.

Cosatu said this was a significant move towards having "the people" and not private businesses benefit from the exploitation of SA's mineral wealth.

The decent work debate continued, with Cosatu saying that jobs created under the expanded public works programme were valuable but no substitute for proper, decent jobs.

It warned that exchange control reforms were likely to increase risks of currency speculation and capital flight, and that capital controls would be better options.

All of the government priorities, in particular job creation, depended on the efficiency of the government and on changing the culture of the public sector, it said.

Comments
  • chris - 2011-02-11 15:42

    And that 9 Bn is going to come from where - most likely from the road toll in Joburg and Lotto.

  • Nasdaq7 - 2011-02-11 15:47

    This is just the typical nonsense we can expect from COSATU: Cosatu said this was a significant move towards having "the people" and not private businesses benefit from the exploitation of SA's mineral wealth. -> as if those private companies do not contribute the largest share to government's income! Government collects 30% tax from the companies and the private companies pay the wages of mine workers. The mine workers spend that income in the cities - helping fellow South Africans with income and jobs. The companies keep their profit in the banks. The banks loan it out to people that want to buy homes or that need banking loans. The exporting of the commodities keep the Rand strong. If the Rand remains strong, interest rates remain low. So everyone that has borrowed money, scores from lower interest rates. The taxes government collects from the businesses ends up in the government - who spends that money building schools, hospitals, police stations, roads, electricity and water pipes. So how can only private businesses benefit from the exploitation of SA's mineral wealth? Everyone benefits!

  • doped - 2011-02-11 20:50

    Guess who will obtain all the mining rights in future. All private applications will be declined. Why do you think Malema is so happy about this. You didn't see that coming did you?

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