Chairperson,

StatsSA serves to provide credible and reliable statistics, through its more than 200 statistical releases per year, which informs users about socio-economic dynamics for evidence based decisions.

Moreover, StatsSA plays a central role in the implementation of the National Development Plan (NDP) by government, and thus its proper functioning is of utmost importance to our country’s future.

In April 2014 I was encouraged by a StatsSA analysis of poverty trends indicating the country has made significant progress in reducing grinding poverty and hunger through a combination of social grants and dramatically improved incomes.

The study showed that the percentage of South Africans living below a poverty line of R620 a month per person declined from 57% in 2006 to 46% in 2011. However, despite this success, large numbers of people — 23-million — still live in deprivation with incomes lower than the line used in the analysis.

The key factors responsible for reduced poverty levels, according to Stats SA, are the expanding social safety net; real income growth above inflation wage increases; and decelerating inflationary pressures on households. In addition, there was an expansion of credit and growth in formal housing.

In the presentation to the committee, it was indicated that despite the evidence of delivery, the methods and indicators to inform progress are inadequate. What is needed is an evidence framework based on the National Development Plan.

The important correlation and alignment of NDP indicators and MTSF indicators was further highlighted, noting a mismatch with the MTSF indicators. On the economy and employment, the number of NDP indicators is 22 whilst the MTSF indicators are only 9. This tells the story of a government with fundamental problems in adopting and implementing their own plan – the NDP.

It is important for us to steer away from the bad patches of history and change legislation to enable the NDP to be a driver of change. Critical changes required in legislation and management decisions could influence labour and infrastructure development to achieve the desired strategic outcome.

The central message is to enable government to think ahead of what needs to change and how do we deliver the mandate.

We thus support the immediate way forward to locate the NDP as the driver of the MTSF, and furthermore to track NDP indicators together with Strategic Development Goals. 

The MTSF is not in contradiction with the NDP. StatsSA states in its strategic plan that “the NDP’s goals and targets are clear, but the methods and indicators to inform progress are woefully inadequate”. The Finance Portfolio Committee echoes this sentiment, and agrees that over time the gap in the indicators need to be narrowed. The committee recommends that StatsSA raises this with the Minister in the Presidency.

Having said the above, the biggest challenge our country faces is not better statistical reporting, but government’s lack of will to actually implement its own plan.

The reality is that the litany of opposing economic policies within national government has stopped economic growth dead in its tracks. Entrepreneurs and small businesses are suffocated before being given a change to flourish. Investors remain hesitant to invest capital within our borders as government equivocates about what its economic policy really is. This affects every South African. Minister Nene says the NDP, which champions a market driven economy, is government’s official policy. Yet Minister Davies and Minister Patel simultaneously implement the IPAP and NGP which clearly place the state at the centre of economic growth and development.

StatsSA can only go so far – it cannot implement the NDP, that’s government’s role. But what StatsSA does show is the following:

•     That the government is failing the unemployed – a staggering 36.1% of the population.
•     That the ANC government is failing the youth – 2 out of every 3 unemployed South Africans are youth.
•     That since 2009 when Jacob Zuma became President, unemployment has remained largely unchanged at well above 30%.

StatsSA continues to tell us the same story, yet government continues along its failed path. The NDP driver of growth is market based economy, not the state at the centre of our economy.

Until that changes, StatsSA will continue to produce the shocking statistics we continue to see.

I thank you.