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The Economic Development Department (EDD)’s Annual Report for 2014/15 proves that EDD provides very little bang for its almost-R700 million buck.

The Department has failed dismally to accelerate job creation, promote inclusive growth and provide economic policy coherence across government.

It should be closed down and its powers and functions transferred to the National Planning Commission (NPC) and the Department of Trade and Industry (DTI).

EDD’s core mandate is to “facilitate and accelerate job creation across the economy”. By any measure, it has failed miserably. The Annual Report claims that employment grew by 405 000 jobs between March 2014 and March 2015. But this figure is distorted by the fact that government created 100 000 temporary jobs in the second quarter of last year ahead of the elections in May.

Data released by Stats SA on Tuesday revealed that the formal sector haemorrhaged 161 000 jobs between the second quarter of 2014 and the second quarter of 2015.

According to the latest Quarterly Labour Force Survey, the number of people who were unemployed increased by 321 000 from 4.9 million to 5.2 million in the first six months of 2015.

This means that the National Development Plan (NDP’s) target of reducing unemployment to 14% by 2020 is becoming more and more of a pipe dream with every passing quarter.

The fact is that, under the leadership of Minister Ebrahim Patel, EDD has been helpless to stem this jobs bloodbath. Worse, it has exacerbated the carnage by pursuing the private sector-unfriendly New Growth Path (NGP), which undermines and contradicts the National Development Plan.

In the circumstances, with GDP growth contracting to a measly 1.6%, Minister Patel’s claim that “in 2014/15 …EDD made real contributions to supporting more inclusive growth” rings especially hollow.

In the interests of streamlined and effective government, EDD should be closed down.

Its Economic Planning and Co-ordination functions, including its secretariat support to the Presidential Infrastructure Coordinating Commission, should be delegated to the National Planning Commission and its secretariat. And its oversight of development finance institutions and economic regulators should be redirected to DTI.

Issued by DA