South Africa’s automobile industry was a leader in the government’s radical expansion of the manufacturing sector, President Thabo Mbeki said on Wednesday in stressing that it be encouraged and supported.
It was self-evident that the automobile sector would play a significant role in ensuring the country achieved the higher rates of economic growth it needed, Mbeki said at Daimler Chrysler’s launch of the Mercedes-Benz W 204 C Class in East London.
He said the Motor Industry Development Programme (MIDP) review undertaken in 2005 was scheduled for completion in December.
The review aimed to, among others, evaluate the industry’s performance in making vehicles more affordable, growing exports, rationalising production platforms and stabilising and growing employment.
”At the same time, the thrust of this review is to ensure that our automotive industry remains globally competitive and is integrated into the global value chain,” Mbeki said in a speech prepared for delivery.
”I am aware of the fact that you, like the rest of the automobile industry, are concerned that we should complete this review as soon as possible. Our government is completely at one with you in this regard,” he said.
By December, it was hoped the outline of a support programme for the industry would be in place, for implementation when the existing MIDP expired in 2012.
”It is clear that in determining the level of support, the future programme will have to respond to the needs of the industry with regard to competitiveness, localisation and transformation,” Mbeki said.
”We will arrive at these decisions after comprehensive and sustained discussions that we are undertaking with the automobile industry as a whole.”
Acknowledging the need to avoid challenges under World Trade Organisation rules and agreements, Mbeki said the government would honour its obligation to engage social partners in reaching an agreement for further and rapid expansion of the automobile sector.
He said the economic restructuring of South Africa included: intensified industrialisation and a move to a knowledge economy; domestic provision of capital goods; more labour-absorbing industrial sectors; and increased inclusion of disadvantaged people and marginalised regions.
South Africa’s Industrial Policy Framework and action plan were critically important in speeding up the battle against unemployment and poverty, and creating a better life for all. — Sapa