'Pension money for development'

Cape Town - Government wants to rope in private retirement funds and the Public Investment Corporation to help finance development projects, as well as dust the cobwebs off a plan formulated at the 2003 Growth Summit.

In terms of this plan, 5% of the money that private retirement funds invest should go to development activities - but this has not been implemented to date.

This a plan that Ebrahim Patel, Minister of Economic Development, tabled in parliament on Thursday as part of his department's strategic plan for the next three years.

Patel said private retirement funds and the Public Investment Corporation could become involved through, for instance, a development bond.

Patel's strategic plan also indicates that his department would be largely responsible for the development of all economic policy.

Since his appointment as minister in May there have been questions about who is responsible for economic policy.

The department's plan, with a "new approach" to economic development, in which job creation should be the overarching objective of economic policy, focuses particularly on the creation of decent jobs, economic development in a low-carbon-emitting economy and the challenges of poverty and income discrepancies.

The plan also provides for Patel's department setting in motion debates on macro- and microeconomic policy, as well as the submission of proposals to Cabinet.

These types of questions - such as example on inflation-targeting - are continually been raised by the ANC's alliance partners.

The plan also makes provision for new legislation to regulate contract work, subcontract work and labour broking.

In terms of Patel's plan, state institutions, departments and municipalities have to target investment for development.

The department is expected to be fully operational by April 1 2011.

- Sake24.com

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