ANC's proposals shy away from reality - DA The ANC's policy conference discussions would impede growth and job creation, says the DA.

By Paul Vecchiatto

The African National Congress' (ANC's) policy conference discussions would impede growth and job creation as it does not provide an answer to alleviating poverty or growing the economy, says Democratic Alliance (DA) national chairperson Wilmot James.

Commenting on Tuesday on the release of the ANC's draft policy documents earlier this week, James said: "They shied away from addressing tough realities."

The ANC's policy document was in preparation for its national policy congress due to be held in Mangaung in July.

In his reaction James said the draft proposal of levying a 50% resources rent tax on mining activities would discourage investment in mining and result in job losses.

James said the proposal to shift provincial boundaries for political purposes would undermine growth and job creation in successful provinces like the DA-run Western Cape.

He said the adoption of what he called the "outdated developmental state" model that relied on state capacity that the country does not have.

Another ANC proposal that James attacked was the integration of Metro Police departments with the SA Police Service that would limit the ability of metros to fight priority crimes successfully.

James said that a series of proposals, such as a plan to upscale public employment programmes, a plan to use the National Youth Service to regulate the outflow of graduates from universities, a plan for a state-led productivity enhancement programme and a plan to use state procurement as the primary driver of industrial development all suggested a more central role for the state in the economy.

"The state is unlikely to deliver on these plans efficiently, which will impede growth and kill jobs," he said.

James said his party was currently conducting a process to create a new set of policies that are explicitly aimed at achieving a sustainable economic growth rate of 8%.

"We are doing this because we know that the only way to reverse apartheid's legacy is to drastically increase economic growth to create jobs for millions of unemployed South Africans. No country has ever overcome poverty and unemployment without substantial economic growth," James said.