It seems the internal debate is hotting up around the growth vs. BEE issues...something the delay of the final codes seems to be centred around.
In the article they mention rumours that the exemption limit may be raised to R25m. At the moment I'm holding thumbs for the growth side of the argument, and I think that the 2010 world cup is playing a big role in this.It would seem the cracks of the disagreements in government stem from deep-seated ideological positions. The old debate about what should come first between growth and BEE is back and the debate seems to be raging within and between key ANC government centres.
In certain circles, the BEE-first approach is seen as an obstacle to government's ambitious infrastructure development programme. This view was best captured in a recent speech by public enterprises minister Alec Erwin when he referred to BEE as a luxury that should not hinder the state's capital expenditure plan. Government has budgeted more than R400bn on its infrastructure programme over the next five years to boost growth.
Erwin was quoted as saying: "Everything is a race at the moment... Yes, we must ensure there is BEE and women's empowerment, but none of these can delay the roll-out of these projects. We cannot afford that luxury. It is pointless having a BEE economy that is growing at 1%. We have to hit the growth rate."
Full article on the Financial Mail