Presidency implements cost containment measures

Thursday, May 5, 2016

Pretoria - The Presidency has fully committed to implement additional cost containment measures that were announced by President Jacob Zuma in the 2016 State of the Nation Address and Budget Speech 2016.

The commitment was reiterated by President Jacob Zuma on Thursday when he responded to the debate on the Presidency Budget Vote, in Cape Town.

He said the 55 vacant posts that the Presidency had intended to fill during the current financial year were frozen as a result of the cost containment drive.

“To make up for the frozen posts, existing staff will take up more responsibilities,” said President Zuma.

He said the Presidency compensation budget has been drastically cut, from this financial year onwards.

The President dismissed allegations that there are technical personnel from the South African Post Office who have been seconded to the Presidency. “There are none at all.”

“Government is also already implementing other measures to cut wastage, as we announced in the State of the Nation Address.

“The numbers of support staff accompanying Ministers and Deputy Ministers on foreign visits has been reduced. The stakeholder banquets following budget vote debates have also been done away with.

“These are small but significant gestures which confirm that money must be spent on the core business of government, which is the provision of services that will ensure a better life for all our people,” he said.

However, President Jacob Zuma said, the cost containment measures alone cannot solve the challenges that face society. 

“We need robust and inclusive economic growth,” he said.

Economic growth, inclusion

He said the twin goals of growth and inclusion cannot be separated.

President Zuma said the decline in commodity prices in particular has been especially devastating for the mining industry.

“Our people need jobs and they need to earn an income, even during this difficult climate. In this regard, we need to support our youth in particular to earn a living during such a climate and in particular to promote entrepreneurship.

“I am therefore pleased by the report given by Deputy Minister Manamela about the work that the National Youth Development Agency is doing towards meeting this goal,” said the President.

He said economic transformation also remains pivotal, and that there will be no sustainable economic development in this country until “we succeed in de-racialising the commanding heights of the economy”. - SAnews.gov.za