Economic policy.pdf - Democratic Alliance

More documents

Recommendations

Info

2.9) Export Processing and Job Zones The DA will: • Set up export zones where trade tariffs, quotas and other bureaucratic requirements are reduced • Encourage foreign direct investment by allowing full repatriation of profits • Promote employment by only allowing labour intensive industry to be eligible to be part of the zones. Some parts of South Africa remain trapped in underdevelopment, underinvestment and poverty. The DA will stimulate investment in these areas. An export processing and job zone (EPJZ) is a geographical area where various trade barriers such as tariffs and quotas are eliminated and bureaucratic requirements are lowered, in the hopes of attracting new business and FDI. In an EPJZ, investors are given tax incentives and are exempted from foreign exchange control provisions and from profit and dividend repatriation requirements. Labourintensive manufacturing is encouraged and normal labour regulation requirements are reduced. The establishment of Industrial Development Zones (IDZs), which formed the main pillar of South Africa’s post-apartheid industrial <strong>policy</strong>, has failed to deliver the promised levels of investment and the creation of work opportunities. The problem with South Africa’s application of IDZs as a tool to encourage industrial development has been that it provides incentives that are predominantly limited to infrastructure. The conversion of IDZs into EPZs will see these muted incentives giving way to more meaningful tax investment incentives and will encourage labour-intensive manufacturing. EPJZs have been enormously successful internationally. EPJZ-operating countries such as Malaysia, Mauritius and Ireland all agree that EPJZs constituted a dynamic force in renewing the economies of their countries. South Africa’s IDZs should be converted into fully-fledged EPJZs in which: • Only labour-intensive industries will be permitted • New ventures enjoy a sustained tax holiday • Businesses must be registered with DTI as exporters • Duty free imports of machinery, equipment and raw materials are allowed • Firms are exempt from more onerous labour laws • The full repatriation of profits and capital will be permitted
PART THREE: Clean and Effective government A DA government will ensure that there is a fair competition, and it will stand up for the rights of the individual, regardless of their financial resources and connections to the <strong>policy</strong>makers in power. We will create an environment in which individuals are able to invest in their businesses without fear of their property being taken away from them through crime or failed contracts and when disputes do arise, they are swiftly resolved by a system that is fair, representative and impartial. We see a government that realises that its capacity is best spent monitoring and regulating the millions of decisions that take place in our economy each day, rather than inefficiently trying to have a central hand in each and every one of them. This government recognises that stability encourages jobs and investment, and therefore puts policies, rules and institutions in place that foster stability. 3.1) Regulating for Growth and Fairness The DA will: • Strengthen the capacity of the Competition Commission • Give the Office of the Consumer Protector chapter 9 institution status Excessive regulation hampers productivity, and drives up costs and unemployment. But every economy needs regulation to allow all participants to compete on a level playing field and to reduce risks for everyone. The DA supports efficient and appropriate government regulation. We will ensure that our monitoring bodies have sufficient funding and human resources to ensure that our economy is not put under systemic risk, but at the same time will not place additional and avoidable constraints on economic activity and the creation of job opportunities. a) Competition Regulation Price fixing is detrimental to economic growth and social cohesion. The DA is committed to strengthening the legal and technical measures available to combat anti-competitive behaviour. South Africa has been rocked recently by high profile cases of price fixing. Collusive behaviour affects the poorest of the poor, be it in terms of higher food prices or reduced job opportunities. By strengthening these measures, price collusion, particularly of staple foods such as bread, could be stamped out, competition could flourish and the consumer would benefit from lower prices. Protection of whistle-blowers is a core ingredient in dismantling cartels, should they arise. The DA believes that legislation is required to provide full immunity to the first individual who breaks ranks and reports anti-competitive activities. While companies may be fined up to 10% of revenue by the competition authorities, individuals face less stiff sanctions. The DA will make it possible – as it is in other countries – to hold senior management of companies implicated in anti-competitive behaviour personally liable for their conduct. The DA will also empower the Competition Commission to adopt a more pro-active rather than a complaints-driven approach. Rather than waiting for a request from a
Page 1 and 2: CREATING ECONOMIC OPPORTUNITIES FOR
Page 3 and 4: A DA government would facilitate, n
Page 5 and 6: Introduction In South Africa people
Page 7 and 8: PART ONE: Unleashing potential Mill
Page 9 and 10: and hiring somebody else who will b
Page 11 and 12: wanting to qualify for subsidies in
Page 13 and 14: PART TWO: Stimulating Labour Creati
Page 15 and 16: The DA will jealously guard the ind
Page 17 and 18: a) Legislation The lack of clarity
Page 19 and 20: 2.5) Infrastructure Investment The
Page 21 and 22: • Providing transparent and accou
Page 23: Government can play an important co
Page 27 and 28: We cannot be serious about deliveri
Page 29: Conclusion The DA is committed to a

Economic policy.pdf - Democratic Alliance

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?