Bring on the Youth Wage Subsidy already

Johann Krog, MPP

Democratic Alliance

The International Monetary Fund’s current expectation of 2.9% growth in South Africa’s gross domestic product (GDP) in 2014 is a warning call for our country’s fragile economy.

In order to create a positive impact on the lives and living standards of ordinary citizens, South Africa needs a GDP growth rate of 5% and above.

In its October issue of “Fast Facts”, the South African Institute of Race Relations had the following to say:  “At only 2% to 3%, South Africa is growing at half the rate necessary to mitigate the dangers in our high unemployment.”

The DA’s Youth Wage subsidy is a definite, specific and focussed policy aimed at immediate employment and up-skilling of our youth.  Introducing this subsidy, as agreed to in the National Development Plan (NDP), would go a long way to addressing the unemployment problems we currently face.  Another initiative welcomed by the DA is the draft Employment Tax Incentive Bill.

Neither this Bill nor the Youth Wage Subsidy must be allowed to be derailed by the narrow interests of union-led labour.