Department of Trade and Industry
The trade and industry minister, Rob Davies, has indicated in a statement on the industrial policy action plan (IPAP) public hearings that the funding model of the industrial development corporation is under review.
He added that this review would form part of the process currently under way to devise the best model for industrial financing. Government wanted to secure concessional industrial finance for IPAP sectors.
IPAP was the product of intensive work within the economic cluster of ministers. Widespread consultation with business and labour stakeholders took place. The national assembly’s trade and industry committee has been conducting extensive public hearings on the action plan.
The minister emphasised that the “overwhelming majority” of the submissions had been in support of the IPAP. In general, stakeholders warned against deindustrialisation in the local economy.
In response to submissions that questioned government’s ability to implement the plan across all relevant departments, the minister declared that the IPAP clearly sets out “which department, agency and state-owned enterprise is responsible for carrying forward each key action plan”.
In terms of attempts to leverage public procurement to develop a competitive domestic supply base, the minister indicated that significant progress had been achieved recently. A task team comprising the economic development and trade and industry departments together with national treasury was close to an agreement on a new set of regulations for the Preferential Procurement Policy Framework Act.
Should the regulations be approved, they would “create a significant platform to advance the objectives set out in the IPAP2 with respect to public procurement”.
The minister called on the private sector to support local production by increasing local procurement.
As regards competition policy, the minister noted the general support expressed within submissions to step up the work of the competition commission.
‘’Careful considerations will have to be given to the additional measures proposed in the submissions, including proposals to amend the Competition Act to go beyond existing measures aimed at dealing with cartel behaviour to encompass stronger measures against monopoly behaviour”.
Sabinet Cape Town Office
Post new comment