No tax money to bail out firms

Cape Town - South Africa's stable macro-economic environment is not going to change, President Jacob Zuma said on Tuesday.

Replying in the National Assembly to points raised during debate on his state of the nation address, Zuma said: "From the Ready to Govern document of the early 1990s, the pursuit of our objectives has always been based on the maintenance of a stable macroeconomic environment. This is not going to change."

Government had no intention to use the fiscus for general company bailouts.

"As we indicated, we are working with development finance institutions such as the Industrial Development Corporation to identify such companies and, where appropriate, mobilise assistance," he said.

It was also important to ensure that the interventions made did not distract government from its longer-term socio-economic objectives.

"We must also keep the productive capacity of our economy intact so that it can respond in a timeous fashion to the revival in demand as the global economy recovers."

It was important that the manufacturing, agriculture and mining sectors were ready for the recovery.

"That means we must do our best to retain skills and labour," Zuma said.

He also repeated government's intention to create about 500 000 work opportunities this year, as part of its goal of creating about four million such opportunities by the end of this five-year term.

"Let me emphasise that these measures are not a substitute for the permanent jobs that must be created and sustained in the economy."

Key sectors of the Expanded Public Works Programme (EPWP) included the infrastructure sector programme.

Key programmes were road construction, water reticulation, sewerage and waste water management.

The second programme was the social sector, aimed at creating work opportunities through providing public social services.

The key programmes in this sector included the home and community-based care programme which entailed provision of care and support for those infected and affected by HIV and Aids, as well as personnel required for the expansion of the early childhood development programme, he said.

The third EPWP intervention was in the environment and culture sectors.

Programmes include working for water, working on fire, and land care.

New initiatives on waste management, including the food for waste programme, would be expanded.

"This is one of the measures that government has put in place to alleviate poverty and provide income, work experience and skills development to many who are unemployed."

Public Works Minister Geoff Doidge would provide more information during the department's budget debate in the Assembly, Zuma said.

- Sapa