Zuma: Competition policy under review...

The government's competition policy is being reviewed in the interests of job creation, President Jacob Zuma said on Tuesday.

"We are also looking to our competition policy to improve job creation," he told the National Assembly during debate on his budget vote. "The strategic approach to competition policy is ensuring lower prices especially for intermediate goods and wage goods, including fertiliser and food," he said.

"In addition, while inviting foreign direct investments we will also do all we can to protect local jobs and industries. We believe it is possible to do both. We have found some companies cooperative and willing to assist us so that there can be a win-win situation."

Zuma said formal employment creation had recovered in the past two quarters, according to both major employment surveys published by Statistics South Africa, one of households and one of employers.

"We are particularly pleased with the growth in formal employment, which provides better opportunities for most working people."

In the year to March 2011, net formal employment grew by 42 000. The government sector created 133 000 new jobs in the past financial year. This compensated for the still weak performance of the private sector, he said.

"That said, we recognise that unemployment in South Africa remains very high by international standards, which is why the new growth path is critical."

A number of the undertakings made in the 2011 state of the nation address, geared towards removing obstacles and boosting job creation, were being implemented.

"I announced that R20bn would be made available in tax allowances or tax breaks to promote investments, expansions and upgrades in the manufacturing sector.

"To date, three projects have been approved, with a total investment of R4.1bn."

The jobs fund was launched by Finance Minister Pravin Gordhan last week, and it is to be administered by the Development Bank of Southern Africa.

The National Treasury has indicated that its target is to disburse at least R2bn of the jobs fund on job creation during the current financial year, he said.

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