The cost of government

[Dave A]

Where is the money going to come from?

Already facing falling tax revenues, the government purse is under new pressure from President Jacob Zuma's creation of new departments and the splitting of departmental functions.

Budget processes are still under way, but billions of rands will be needed to accommodate the new departments of economic development and rural development and the splitting of the education and minerals and energy portfolios.

Government departments are scrambling to get their wish lists together for the coming budget votes in Parliament, when ministers will present the priorities and proposed budgets of their departments.

Starting from scratch, new departments will have to assemble strategic plans and budgets.

The treasury was officially informed of the new structure of government only when President Jacob Zuma announced his new Cabinet. It may need to rejig the budget and a Special Appropriations Bill may be on the cards, requiring Minister of Finance Pravin Gordhan to ask Parliament for approval for additional spending.
full story from M&G here

All I see so far is an increase in overheads.

[tec0]

I think JZ functions under this law “More is better” I really don’t belief that he sat back with a cup of coffee and a cigarette and just thought things trough. See JZ wants better control and he so beliefs that if he divided the functionality of departments into smaller departments that we will have a better functioning system because they department can then only focus on its half of the picture.

However, I fear that JZ needs to understand that effective systems start with effective management and infrastructure. Secondly is training of staff thus we get a little thing called functionality. Then it comes down to monitor performance and work on the problem arias.

In short throwing money at it will not make it go away!

[Marq]

billions of rands will be needed to accommodate the new departments of economic development

Economic development is a bit of an oxymoron these days - like military intelligence - just does not make sense any more thanks to the economists. Everybody has these pie in the sky diagrams of how economics works and then having supposedly got the big picture goes away and stuffs up the bottom line by introducing kak little pictures.

Lets start a new department, like....oh I don't know, lets make one up - how about industrial tourism....then lets pump a brazillian rands at that and see what happens. Oh gosh a few fat cats and no results..mmm...ok how about labour education? No......to many people understand those words not enough fat to trim there.....right lets use the weather department - they always get it wrong...Mix it with Human Settlements...nobody understands that one yet - so now lets have Tokyo in charge of The Weathering Settlements division. - Don't understand that term? - well its no different to many of the other departments they have going and the results will be spectacular in comparison.

[Marq]

Oh - and wheres the money going to come from...good question.

I am sure by placing the sars man in the finance seat, we have one answer.

The sheriff of Nottingham will ride again and the story of Robbing Hood has been misinterpreted.

[Dave A]

Oh - and wheres the money going to come from...good question.

I am sure by placing the sars man in the finance seat, we have one answer.

The sheriff of Nottingham will ride again and the story of Robbing Hood has been misinterpreted.

That's the one that worries me. It can only lead to higher taxation rates, especially if these higher overheads don't produce the goodies.

[tec0]

Let us look at the small picture. The one where normal people have to live with... For every bad judgement call our government makes people will end up dying. This can be due to crime or our horrible hospitals take your pick. In the end there will not be anything left then you get poverty where people will be dying because of no-food no-clean water no-nothing! Is this at all possible? “Do I really have to answer that?” Yes it is possible that due to bad government millions of people can end up standing on their own graves.

So what do we do? Well with the mentality as it is right now... Nothing... We are powerless, now this little word “powerless” gets under the skin a little bit but the truth is what it is...

[Tok-a-lot]

The direction of the introduction of a South African National Health System is scariest idea of all. In no country has the implementation of the National Health System been sustainable. Britain and Japan are good cases of this proponent of semi-socialism. With Japan it started before the 2nd World War and was a shining light to the success of the country up and till the crash in the late nineties and then they found out what it was actually costing them. In Britain they have developed NH since WW11, their health system is a joke and they agree it is basically bankrupting the govt. Now SA wants to do the same and we are not even on a near footing economically as these developed 1st world nations. This will bankrupt this country, quicker than adding any new departments.

[tec0]

Again it is called Planning! You know “An act of formulating a program for a definite course of action” Now it is simple. Stability comes from market export and Fabrication of goods. If government wants to do something positive then start with government owned Fabrication plants that will produce computers, cars and other useful items such as Food Processing. This will create infrastructure and if well disciplined it will generate work and profit. Now once you have a sound infrastructure you can look at Industry and see how you can facilitate them. This is known as Partnership. Once a Partnership is established you get cooperation. Then you push in things like National Health systems, Police systems, School and training systems and Transport systems. Because the infrastructure will provide that extra cash-flow allowing for sustainability. The thing is before we can have all that we need to get rid of corruption... But in all the possibility exist.

[wynn]

Talk about putting the 'Tailgate' of the Cart before the 'Horse' (we be going before we be coming)

Just add a few more 'Stealth Taxes' and we will all be standing in the 'Hand Out Queue'

[Dave A]

How about this story on local government.

The national treasury has insisted it will not give more money to struggling municipalities to meet the pay claims of striking council workers.

This could result in local governments taking drastic measures, including cutting "lifeline" water and electricity supplies to the poor or hiking basic service tariffs, the South African Local Government Association (Salga) has warned.

Salga spokesperson Mogomotsi Mogodiri said increases could result in some municipalities collapsing.

"Figures [of R30,3-billion] owed to municipalities paint a grim picture of the dire situation most are in," Mogodiri said. "It's not that we don't want to pay workers -- we just can't afford it. The perception that we have money is unfortunate."

Mogodiri said the pay rise would leave municipalities no choice but to compromise service programmes needed by communities.
read the full story on M&G here

Or they could retrench workers like the private sector has to

[tec0]

In any event, we are losing grip on the things that are important. Fact is we need clean water, we need a working purification plant so that all the condoms, tampons and wedding rings can be extracted from the faeces and other rotting things like the many dead cats you will find in our storm drains. Now I am making a point of it to make it sound horrible because that is what it is. Horrible!

So if it was you that needed to keep the water supply going wouldn’t you want a bit more money to make it worth your while? Perhaps a good medical plan to go with it? Fact is; when is asking to little asking too much?

[Dave A]

The Federation of Unions of South Africa (Fedusa) said on Tuesday it had concluded an agreement to work with government, organised business and labour to tackle recession.

The agreement comes after Fedusa met Economic Development Minister Ebrahim Patel earlier on Tuesday to discuss the impact of the global recession and the framework for South Africa's response to the international economic crisis.

Fedusa general secretary Dennis George said in a statement the first aspect of the agreement would be to obtain serious commitment from CEOs of companies.

They would also seek commitment from all the relevant Sector Education Training Authorities to urgently implement the agreed upon Training Lay-off Plan.

George said this would be done by ensuring that the R2,4-billion training allowance reached the pockets of working people.

The second aspect would be to urgently meet the CEOs of the four local major banks to ensure that credit flowed back into the economy to rekindle demand and supply.

Fedusa also planned to meet organised business and labour to nominate representatives to formulate a common pledge to guide them in addressing further retrenchments.

"This national pledge will commit and bind companies not to retrench workers during the current recession," George said.

He said Patel has also pledged on behalf of government with Fedusa to fill all vacant public service positions as a matter of urgency.
full story from M&G here

Any chance the national pledge will also bind workers not to demand crippling pay increases?

[Yvonne]

They would also seek commitment from all the relevant Sector Education Training Authorities to urgently implement the agreed upon Training Lay-off Plan.

George said this would be done by ensuring that the R2,4-billion training allowance reached the pockets of working people.

Can anyone elaborate on this?

Yvonne

[Marq]

Good question - reminds me of the guy, who while standing in the UIF handout queue, complained bitterly about the delay as he he a job to go to. (True story - I was there).

Is this going to be a hand out grant thing again or a proper training scenario so the guys being laid off can better themselves and get into a more skilled job position?

[Dave A]

It's part of Jacob Zuma's response plan to the recession.

Can anyone tell me this - apart from showboating, name one constructive thing organised labour is doing to turn the tide of this recession?
One concession?
One sacrifice?