DA's Plan for Growth and Jobs - Democratic Alliance

Upscale Expanded Public Works ProgrammeProgressively up-scale the expanded public works programme (EPWP) to employ 2.5 millionpeople on a contract basis by 2025. This will take the form of annual increases in the scaleprogramme, the rate of which will be informed by available revenue. The aim of theprogramme is to provide temporary relief from unemployment and will include a skillsdevelopment component.Establish a government internship programmeIntroduce a comprehensive government internship programme across all departments,based on the highly successful Western Cape model. The programme will hire 18 000interns on 6-month contracts at a rate of R 1200 p.m. This will help bridge the ‘study-work’divide, and equip recent graduates with valuable professional knowledge and skills.Implement a UIF-based growth and jobs stimulusLower the Unemployment Insurance Fund (UIF) contributions made by employers andemployees in order to lower the costs of doing business and put money in the pockets ofworkers. This reduced contribution would remain in place until the fund contracts to apredetermined benchmark. The UIF had grown from R54 billion in 2010/2011 to R65 billionin 2011/2012, with collections reportedly rising by approximately 10% to 12.4 billion, which isat present more than sufficient to meet the requirements of its mandate. Reducingcontributions to the fund will have the effect of an economic stimulus package that willenhance employment creation and stimulate growth via increased consumer demand. Acapital base benchmark will be determined for the UIF to ensure the stability of the fund. Ifthe capital base were to contract below the benchmark, the original contribution to the fundwould be reinstated as per Section 6 of the Unemployment Insurance Contributions Act.The DA in Government: Work-and-Skills Pilot ProjectThe Western Cape Government runs a pilot project aimed at giving young South Africansaged18 to 35 the opportunity to participate in a 12-month work experience programme. Runby the Department of Economic Development and Tourism, each of the participants isplaced with a company and supplied with a R 12 000 per month stipend. This practicalexperience has significantly increased the employability of around 2500 people who havepassed through the programme.Policy outcome: Improve competition and productivityReduce burdens for SMMEsAmend Section 1 of the Employment Equity Act, Act 55 of 1998, so that the definition of‘designated employer’ is changed to ‘a person who employs 200 or more employees’. Thiswill lift bureaucratic requirements from SMMEs, and make it easier for entrepreneurs toestablish start-up enterprises.42 | P a g e