The Cape Chamber of Commerce and Industry welcomes the commitment in the 2016 Budget to tackle corruption and wastage but is disappointed at the lack of detail on how the cost of the public service is to be reduced.
One of our biggest problems is the unsustainable cost of the public service and the promised cut-backs on recruitment, frills, travel, expenses and the use of cheaper motor vehicles will not be enough. We needed a more dramatic measures to underline the importance of reducing costs and increasing the productivity of the public service.
More transparent and efficient procurement is an essential measure and we want to see it enforced with vigour.
The Chamber was disappointed at the lack of meaningful detail on how the State Owned Enterprises were to be improved and the suggestion about the possible merging of SAA and SA Express did not go far enough.
Bringing an end to the bailouts of the SOE’s is an urgent matter and we need to see this tackled head-on.
The tax increases announced were modest in the circumstances so cost cutting would have to be very effective if the Budget deficit was to be reduced to 2.4 % over three years.
We welcome the warmer attitude towards business and the recognition that it will have to become more involved in partnerships and government projects to get the country back on the path to growth.
The private sector has a lot to offer in terms of expertise and energy and we would like to play a bigger role in the development of the country so we are hoping for more opportunities as the details of Budget plans become clearer.
President of the Chamber