ENQUIRIES / INTERVIEWS
Anneke Burns
press@fmfsa.org
The FMF is an independent, non-profit, public benefit organisation, created in 1975 by pro-free market business and civil society national bodies to work for
a non-racial, free and prosperous South Africa.
As a policy organisation it promotes sound economic policies and the principles
of good law. As a think tank it seeks and puts forward solutions to some of the country’s most pressing problems: unemployment, poverty, growth, education, health care, electricity supply, and more. The FMF was instrumental in the post-apartheid negotiations and directly influenced the Constitutional Commission to include the property
rights clause: a critical cornerstone of economic freedom.
CONTACT US
+27 11 884 0270
FMF@fmfsa.org
PO Box 4056, Cramerview 2060
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‘Cut Cabinet, shelve NHI’ – Treasury budget cuts are an opportunity, not a crisis, says FMF
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Treasury’s announcement that there need to be significant budget cuts is a welcome sign of fiscal prudence in an age of reckless spending, but some regard this as a crisis.
The Free Market Foundation (FMF) proposes that there be a drastic cut to the size of government, without hindering the government’s obligations in terms of the Constitution. The South African government currently engages in a lot of expensive non-governmental work that crowds out personal and community responsibility, and stifles private sector growth.
The FMF will write to the Minister of Finance, Enoch Godongwana, urging him to consider the proposal.
‘While the unions and many activists may try to label budget cuts as “unconstitutional”, the truth is that South Africa would have a far more effective government if organs of state were solely dedicated to fulfilling constitutional obligations,’ said FMF Head of Policy, Martin van Staden.
‘The most logical place to start would be to get rid of any Cabinet portfolio and Cabinet department that cannot be traced directly back to a constitutional provision,’ continued Van Staden. ‘That should be followed by shelving any financially unsustainable plans like National Health Insurance or the Basic Income Grant.’
The text of the Constitution only mandates the existence of the Cabinet portfolios of President, Deputy President, Finance, Cooperative Governance, Justice, Defence, and Police, but additional portfolios are required by necessary implication. Those that are not required explicitly or implicitly are simply discretionary – and South Africa has too many of these discretionary portfolios, costing the taxpayer millions.
The FMF proposes that the current 30-member Cabinet can be constitutionally and responsibly reduced to only 10 bureaucracies.
The new Cabinet, if the proposal is adopted, would be organised as follows:
- Presidency (including the President and Deputy President)
- Finance
- Defence (including State Security)
- Justice
- Home Affairs (including Police and Correctional Services)
- International Relations (including aspects of the current Trade, Industry, and Competition portfolio)
- Public Service (including Planning, Monitoring, and Evaluation)
- Public Works (including Transport, Electricity, and Water and Sanitation, and aspects of the Agriculture, Land Reform, and Rural Development, and Forestry, Fisheries, and the Environment portfolios)
- Cooperative Governance
- Social Development (including aspects of the Forestry, Fisheries, and the Environment portfolio and of the Labour and Employment portfolio)
One might wonder where the Basic Education, Higher Education, Health, and Human Settlements portfolios would be housed. The FMF proposal would scrap these portfolios entirely and devolve their necessary functions to municipal and provincial governments. The Social Development portfolio in the central sphere of government would be responsible for the administration of education, healthcare, and housing vouchers for indigent citizens.
The portfolios that would be scrapped entirely, with only a handful of their essential regulatory functions falling to the aforementioned 10 departments, are:
- Mineral Resources and Energy
- Women, Youth, and Persons with Disabilities
- Small Business Administration
- Sport, Arts, and Culture
- Tourism
- Science and Innovation
- Communications and Digital Technologies
- Agriculture, Land Reform, and Rural Development
- Labour and Employment
‘One must not be naïve. We realise that South Africa’s Cabinet and the dizzying number of official posts has more to do with political patronage than with constitutional government. However, with this proposal we seek to show the small number of responsible people in government, and society at large, that reform is possible without drastic interventions such as a constitutional amendment,’ said Van Staden.
The FMF is heartened that the National Treasury is realising that fiscal responsibility is key to South Africa’s sustainability. Municipalities like Tshwane have had similar realisations, and others, like eThekwini – presently experiencing a necessary and commendable rate boycott – must have them sooner rather than later.
Click here for soundbite.
Ends.
Media enquiries
Anneke Burns
FMF Publicist
071 423 0079 | press@fmfsa.org
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‘Sny Kabinet, stel NHI opsy’ – Tesourie begroting-besnoeiing is ‘n geleentheid, nie krisis nie, sê FMF
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Die aankondiging deur die Tesourie dat daar aansienlike besnoeiing aan die begrotings moet plaasvind, is ‘n welkome teken van fiskale verstandigheid in ‘n tyd van roekelose besteding, maar sommige beskou dit as ‘n krisis.
Die Vryemarkstigting (FMF) stel voor dat daar ‘n drastiese snyding in die skaal van die regering moet wees, sonder om die verpligtinge van die regering in terme van die Grondwet te belemmer. Die Suid-Afrikaanse regering is tans betrokke by baie duur, nie-regeringswerk, wat persoonlike en gemeenskaplike verantwoordelikheid verdring en die groei van die privaatsektor strem.
Die FMF sal aan die Minister van Finansies, Enoch Godongwana, ‘n skrywe stuur waarin ons hom aanmoedig om die voorstel te oorweeg.
‘Terwyl vakbonde en baie aktiviste mag probeer om begroting-besnoeiings as “ongrondwetlik” te bestempel, is die waarheid dat Suid-Afrika ‘n veel effektiewer regering sal hê as staatsorgane slegs toegewy is daaraan om grondwetlike verpligtinge na te kom,’ sê FMF Beleidshoof, Martin van Staden.
‘Die mees logiese plek om te begin, is om ontslae te raak van enige Kabinetsportefeulje en -departement wat nie direk aan ‘n grondwetlike bepaling gekoppel kan word nie,’ het Van Staden voortgesê. ‘Dit moet gevolg word deur die opsyset van enige finansieel-onhoudbare planne, soos die Nasionale Gesondheidsversekering of die Basiese Inkomstetoelaag.’
Die teks van die Grondwet verorden net die bestaan van die Kabinetsportefeuljes van die President, Adjunkpresident, Finansies, Samewerkende Regering, Justisie, Verdediging, en Polisie, maar aanvullende portefeuljes kan ook noodwendig van die teks afgelei. Dié wat nie eksplisiet of implisiet benodig word nie, is eenvoudigweg diskresionêr – en Suid-Afrika het te veel van hierdie diskresionêre portefeuljes wat die belastingbetaler miljoene kos.
Die FMF stel voor dat die huidige 30-lid-Kabinet grondwetlik en verantwoordelik tot net 10 burokrasieë verminder kan word.
Die nuwe Kabinet, as die voorstel aanvaar word, sal so georganiseer word:
- Presidensie (insluitend die President en Adjunkpresident)
- Finansies
- Verdediging (insluitend Staatsveiligheid)
- Justisie
- Binnelandse Sake (insluitend Polisie en Korrektiewe Dienste)
- Internasionale Betrekkinge (insluitend aspekte van die huidige Handel, Nywerheid en Mededingingportefeulje)
- Staatsdiens (insluitend Beplanning, Monitering, en Evaluering)
- Openbare Werke (insluitend Vervoer, Elektrisiteit, en Water en Sanitasie, en aspekte van die Landbou, Grondhervorming, en Plattelandse Ontwikkeling, en Bosbou, Visserye, en die Omgewingportefeuljes)
- Samewerkende Regering
- Maatskaplike Ontwikkeling (insluitend aspekte van die Bosbou, Visserye, en die Omgewingportefeulje en van die Arbeid en Werkgeleentheidportefeulje)
‘n Mens mag wonder waar die portefeuljes vir Basiese Onderwys, Hoër Onderwys, Gesondheid, en Menslike Nederettings gehuisves sou wees. Die FMF-voorstel sal hierdie portefeuljes heeltemal afskaf en hul nodige funksies aan munisipale en provinsiale regerings oorplaas. Die portefeulje van Maatskaplike Ontwikkeling in die sentrale sfeer van die regering sal verantwoordelik wees vir die administrasie van onderwys, gesondheidsorg, en behuising-vouchers vir behoeftige burgers.
Die portefeuljes wat heeltemal afgeskaf sou word, met slegs ‘n handjievol van hul essensiële regulatoriese funksies wat aan die bogenoemde 10 departemente oorgedra sal word, is:
- Minerale Hulpbronne en Energie
- Vroue, Jeug, en Persone met Gestremdhede
- Kleinsakesadministrasie
- Sport, Kuns, en Kultuur
- Toerisme
- Wetenskap en Innovasie
- Kommunikasie en Digitale Tegnologieë
- Landbou, Grondhervorming, en Plattelandse Ontwikkeling
- Arbeid en Werkgeleentheid
‘Mens moet nie naïef wees nie. Ons besef dat Suid-Afrika se Kabinet en die verwarringwekkende aantal ampte meer met politieke patronaatskap te doen het as met konstitusionele regering. Met hierdie voorstel probeer ons egter om die klein aantal verantwoordelike mense in die regering, en die samelewing as geheel, te wys dat hervorming moontlik is sonder drastiese ingrypings soos 'n grondwetwysiging,’ sê Van Staden.
Die FMF is verheug dat die Nasionale Tesourie besef dat fiskale verantwoordelikheid die sleutel is tot Suid-Afrika se lewensvatbaarheid. Munisipaliteite soos Tshwane het tot ‘n soortgelyke besef gekom, en ander, soos eThekwini – wat tans ‘n noodsaaklike en pryswaardige tarieweboikot ervaar – moet dit eerder vroeër as later hê.
Klik hier vir klankgreep.
Einde.
Media-navrae
Anneke Burns
FMF Publisiteitsbeampte
071 423 0079 | press@fmfsa.org
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