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Inputs to the debate on Premier's State of the Province's address
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Speeches and Media Release
 Provincial Treasury, Economic Affairs, Environment & Tourism

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EASTERN CAPE PROVINCIAL GOVERNMENT
 INPUT TO THE DEBATE ON PREMIERS STATE OF THE PROVINCE ADDRESS
 BY MEC ENOCH GODONGWANA
19 FEBRUARY 2001

INTRODUCTION

I find myself in a difficult situation because I am standing up to comment on the Premiers Speech, a few weeks before I perform two 
important tasks relating to my portfolio, namely, the Policy Speech, as well as the Budget Speech. Both those addresses, I hope, will give 
sufficient content to the strategic thrust that the Premier has already outlined in his address, as well the practical and concrete 
programme focus of the Provincial Government.

I would want then to comment on two specific areas, namely:

* Reconciliation; and
* The Economic Front

RECONCILIATION

Let me begin this, with a quote from Chief Luthulis letter written on May 28, 1957 addressed to the then Prime Minister J.C. Strydom:

"We believe in a society in which the white and the non-white peoples of the Union will work and live in harmony for the common good of our 
fatherland and share equally in the good things of life which our country offers in abundance. We believe in the brotherhood of man and in 
the upholding of human respect and dignity. Never has my Congress preached hatred against any racial group in the Union. On the contrary, 
it has stretched out its hand of friendship to all South Africans of all races, emphasising that there is sufficient room for all in this 
beautiful country of ours in which we can and must live in peace and friendship."

There are people today who are suddenly promoting themselves as the apostles of reconciliation in South Africa. Unfortunately, if one looks 
at their track record, it is glaring that they always played the most distractively divisive role in South Africa. In fact the cornerstone 
of their policy and existence has always been racial hatred and disharmony. The above quotation demonstrates that the African National 
Congress has been consistent in this commitment to promoting reconciliation in South Africa. The question is how do you promote 
reconciliation in a context where the material conditions of racial segregation are intact. That is where the fundamental difference is 
between us and these "new converts". We believe that part of the democratisation process and the deracialisation of society should be clear 
and focus programme aimed at confronting the legacy of inequality in our society.

In the same letter, Chief Luthuli writes:

"If it should appear that my Congress pleads strongly and uncompromisingly for the advancement of the African people only, it would not be 
because it is actuated by a partisan spirit, but rather because the African people are the lowest rung of the ladder. I am sure that with 
the same meal, vigour and devotion it would espouse - and in fact does espouse - the uplift of other under privileged peoples regardless of 
their colour or race."

In this regard, the issue of affirmative action is put very clearly and ambiguously forward as one of the important elements of 
reconciliation. Once more, there are those amongst us who vilify us for promoting affirmative action playing on racial insecurities. We 
would want to put it on record that the goal of reconciliation would continue to be one of the critical elements of our overall programme 
of action. As government, and that would be underpinned by a focus on improving the plight of the historical marginalised sections of our 
population. Deracialisation must be anchored on changing the very material conditions of racial inequality.

ECONOMIC FRONT

Since 1994 the countrys macro-economy has been successfully stabilised. All macro-economic indicators, such as GDP growth, productivity 
growth, price inflation, and the balance of payments, have improved. As a result South Africa has climbed up the Global Competitiveness 
league table of the World Economic Forum from 47th position to 33rd position between 1999 and 2000. These favourable macro-economic 
fundamentals now provide the context for provincial growth and development, originating at the micro-economic level. The main tasks that we 
now confront clearly include the rebuilding of the provincial economy, job creation, poverty alleviation etc.

The Eastern Cape is fortunate in having several platforms for growth and development. It is important that areas of economic potential 
should be identified accurately so that our scarce resources can be directed to optimise developmental impact. Platforms with potential 
include:

* Certain subsectors of manufacturing
* FDI attraction
* adoption of a spatial focus that exploits the inherent advantages of certain geographic locations
* increasing the value of primary production through high value agriculture (and raising rural incomes), and exploiting our natural 
endowments through extraction and beneficiation.
* Tourism promotion
* Promotion of human resource development
* Creating new platforms such as e-commerce and e-business

These platforms have certain programmatic implications:

* Sectoral priorities: state support measures must be focussed on sectors where we have an existing or potential competitive edge. These 
would include, for example, the auto sector, clothing and textiles, and livestock products. Our goal must be to increase the investment 
streams into these sectors.
* The provision of infrastructure (for industry, transportation etc), through Coega, East London IDZ and the Wild Coast SDI.
* Focussed investment promotion efforts.
* Effective SMME support networks
* An emphasis on developing our human resources. For example, we must be able to access resources from the National Skills Fund for Eastern 
Cape industries.
* LED will be a priority, tying in with local government restructuring, and through targeting of specific local areas.
* Improving access to venture capital through provincially dedicated funds.

Allocation of provincial economic resources should follow from the above challenges. The provincial economy must be effectively supported 
to grow and develop so that jobs are created and poverty alleviated.

CONCLUSION

It is my considered opinion that the debate on all these issues must be re-opened in the course of debating Policy Speeches of the various 
MECs.

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