The People’s Budget Campaign (PBC) coalition on Tuesday repeated its call for a basic income grant for all South Africans.
”Although the proposed R100 is too little, it can make a difference to the dignity of the people,” said South African Council of Churches (SACC) general secretary Eddie Makue.
The PBC, which consists of the Congress of South African Trade Unions (Cosatu), the SACC and the South African Non-Governmental Organisation Coalition (Sangoco), was launching its people’s budget for 2008/09 in Johannesburg, ahead of Wednesday’s budget in Parliament.
Cosatu general secretary Zwelinzima Vavi said the basic income grant is not the first option, as people need proper jobs.
”Nobody wants to grow up and be a government dependent forever. People want to build themselves homes. The problem is that people are not working, that’s why you need the social security,” Vavi said.
He said the government should restructure the economy away from sectors such as mining, metals, heavy chemicals and automotive in order to alleviate poverty.
He said the restructuring of the economy will generate sufficient employment opportunities.
Vavi said the government is failing to create jobs, as unemployment increased by 10% between 1995 and 2005.
The coalition said there is an increase in inequality as 40% of the population earns less than R2 500 a month while company chief executives earn millions a year.
It said government will not meet its goal of halving unemployment by 2014 if current economic policies are not restructured.
Although it welcomes the staging of the 2010 Soccer World Cup in South Africa, as this will boost tourism, it said the tournament will not solve unemployment.
”It will not address the crisis of unemployment and poverty in rural areas … Only the host cities will benefit,” Vavi said.
He said since the year 2000, the coalition has had an impact on government policy.
”We have forced the government to rethink and change its way of thinking.”
Since 2001/02, there has been growth in expenditure in health and education, Vavi said.
The coalition hoped that Finance Minister Trevor Manuel’s budget speech will address poverty, crime and education.
The 2008/09 people’s budget proposes that the government increases resources to create jobs, make society more equal and provide the poor with hope.
The coalition said the basic income grant of no less than R100 should be paid monthly to all South Africans, regardless of age or income.
It should supplement existing grants to households so that no one receives less social assistance than he or she does now.
It should be financed through the tax system and delivered primarily through public institutions, the coalition said. — Sapa