Zuma takes tough line
PRESIDENT Jacob Zuma returned from illness last night personally to take charge of the revitalisation of the economy and the troubled mining sector, while also urging a change in wage inequalities.
In his first public address in 10 days, the president seemed to be struggling slightly as he entered the chamber, but once at the podium he rallied and delivered his speech clearly and without hesitation.
Zuma dealt firmly with problems in the mining sector and other labour disputes, low investment levels by big business into the local economy, and the energy crisis.
On energy, Zuma said the construction of the Medupi coal-fired power plant in Limpopo would be fast-tracked, shale gas exploration would be prioritised within the confines of environmental legislation, and other energy sources would be explored.
Zuma also started the 2016 local government election campaign by promising direct state intervention in struggling municipalities. This would be based on best practice in well-functioning municipalities.
The billing crisis in Johannesburg, which has cost the ANC support, is one of the crises to which he specifically referred.
"As we enter the second phase of our transition from apartheid to a national democratic society, we have to embark on radical socioeconomic transformation to push back the triple challenges.
"Change will not come about without some far-reaching interventions," Zuma said.
He conceded that the economy had grown below its potential over the last three years and many households were going through difficulties.
"The slow growth has been caused in part by the global economic slowdown and secondly by domestic conditions, such as the prolonged, and at times violent, strikes, and also the shortage of energy."
The president said he had initiated a meeting in the National Economic and Labour Advisory Council (Nedlac) between government, business and labour to discuss the violent nature and duration of the strikes, as well as wage inequalities.
The talks would be led by Deputy President Cyril Ramaphosa.
Zuma recommitted the government to investigating a possible national minimum wage, without setting a deadline for the completion of this political hot potato.
He would personally take charge of the implementation of the framework agreement for a sustainable mining industry entered into by labour, business and government last year following an investigation led by former deputy president Kgalema Motlanthe.
A focus of this would be on improving housing and other services to revitalise mining towns in various areas, including North West Province, the Free State and Limpopo.
Further, a special committee to tackle mining problems, led by Minister in the Presidency Jeff Radebe, had been formed,
Government was also monitoring the compliance of companies with Mining Charter targets relating to improving the living conditions of workers.
Companies are expected to convert or upgrade hostels into family units, attain the occupancy rate of one person per room, and facilitate home ownership for workers.
Furthermore, Zuma asked private companies to show confidence in the economy by investing in it.
The president was alluding to unhappiness in government with companies which sit on huge cash reserves instead of pumping these back into the economy. - Jan-Jan Joubert and Thabo Mokone
