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BUSA COMMENTS ON MEDIUM TERM BUDGET STATEMENT; CABINET RESHUFFLE & SAA

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BUSA COMMENTS ON MEDIUM TERM BUDGET STATEMENT; CABINET RESHUFFLE & SAA
In the week, BUSA delivered comment on some key developments that took place recently. It also submitted business’s priorities (includes TBCSA input) that should be addressed in the Finance Minister’s Medium Term Budget Policy Statement (MTBPS) to be delivered in Parliament this week Wednesday. Below is a summary of those BUSA statements:

  • Click Here to view TBCSAs submission to BUSA on the MTBPS 2017 

BUSA makes submission to National Treasury ahead of MTBPS
In line with BUSA’s priority of advocating for sustainable tax regime for inclusive growth, BUSA made submissions to National Treasury on the MTBPS. The thrust of the submission is that fiscal space will have to be achieved through greater efficiencies in government, particularly in State Owned Enterprises. In its submission, BUSA is advocating for:

  • A firm commitment to macroeconomic, fiscal and institutional stability.
  • Rooting out corruption, as well as irregular, fruitless and wasteful expenditure.
  • Improved and consistent communication on the part of government and its agencies.
  • A stable, certain regulatory environment.
  • Reliable and affordable infrastructure.
  • Coherent policies across departments, ministries and agencies.
  • Functioning and competent, fit for purpose SoEs with appropriate governance and oversight
  • Improved skills and education to drive competitiveness.
  • Clear and tangible progress on the implementation of government initiatives to address economic growth and confidence e.g. 14 point plan.
  • A strong pact between government, labour and business.
  • Positioning business as a national asset, particularly to boost entrepreneurs and small businesses.=

BUSA gravely concerned about the latest cabinet reshuffle
BUSA has expressed grave concern with the latest cabinet reshuffle – the second in less than eight months. The reshuffle sees a change in Ministers in key portfolios including the Department of Home Affairs, Higher Education, Energy, and Telecommunication; all of which are directly related to the work that BUSA is engaged in on behalf of business.

BUSA CEO Tanya Cohen further states that political and economic stability is required to ignite inclusive economic growth and generate much-needed employment and revenue to pursue social goals. Unfortunately, this latest reshuffle further undermines prospects for South Africa’s growth and BUSA remains anxious about the impact these changes will have on the upcoming Medium Term Budget Policy Statement.

BUSA welcomes the changes to the SAA board
Business views the appointments as a step in the right direction of ensuring financial stability and good governance at SAA. The appointment of JB Magwaza, an accomplished businessman, as chairperson, together with a number of experienced business persons to the board will bring much needed capabilities to the board.

BUSA stated that the eradication of wasteful and fruitless expenditure and curtailing losses of State-owned Enterprises (SOEs) requires urgent support and implementation. The recent bail-outs of SAA by National Treasury (in the absence of implementable, time-bound measures) to address both governance and oversight shortcomings and structural options which can secure the long term viability of the airline, have been an ongoing concern to business.  South Africa at this juncture simply does not have the funds necessary to provide financial support to chronically underperforming SOEs and it needs to be addressed as a matter of urgency, including in the case of SAA to prevent a contagion impact on the public and private sector. Business expects the new board to attend to these issues as a matter of urgency.
Click here to read the full statements 


 

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