Economic Development Minister Ebrahim Patel presented the budget for the new financial year in parliament on Thursday .
The R1.07 billion budget will see the the Competition Commission receive R282 million. The commission will target 100 cases of uncompetitive behaviour by business cartels over the next year.
The commission will also consider a projected 400 mergers and take on two abuse of dominance cases.
Patel joined Karima Brown on-air on Thursday to explain some of the main objectives mentioned in the budget speech.
He had this to say about the focus on business cartels:
One may say but hang on why use competition policy to pursue transformation. I would point to the fact that that is an integral part of the competition act. It is a clear objective of the act, to build an economy that is not only a strong economy but a transformed economy.— Ebrahim Patel, Minister of Economic Development
Cartels damage economic growth. Economists would say they capture unearned rent.— Ebrahim Patel, Minister of Economic Development
The Budget will be distributed as follows:
-R282m for the Competition Commission, to do its work to open up the economy for all
- R240m raised from the construction industry, for the new Tirisano Fund, to finance transformation, including support for black artisans and engineers, small builders and infrastructure
R229m for the small enterprise finance agency to make loans available to small and micro enterprises
R140m for the Department to unblock investment, provide oversight of agencies and support the alignment of policy
R102m for the International Trade Administration Commission to pay for the trade investigations and systems that we need for import and export controls
R35m for the Competition Tribunal
- R30m for a Steel Competitiveness Fund1 to rejuvenate the steel industry, which lies at the foundation of any nation’s industrialisation
R15m for the PICC to monitor the spending and construction in the state’s infrastructure plan2 .
Speaking on the effect of corruption on the economy, Patel says jobs that would have been created were lost.
What we found out of that is the effect was quite devastating on the economy, It meant that GDP growth would be significantly lower and the jobs that would have been created otherwise are lost, and some 76 000 of those jobs.— Ebrahim Patel, Minister of Economic Development
Click on the link below to listen to the full conversation....
This article first appeared on 702 : [LISTEN] Minister Ebrahim Patel gives a breakdown of his #BudgetVote2018 speech