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Budget: Youth wage subsidy written out of Budget
22 February 2012


By Paul Vecchiatto

Cape Town, Feb 22 – Absolutely no mention was made of the R5 billion youth wage subsidy in Finance Minister Pravin Gordhan’s 2012 Budget Vote Speech.

First mooted by National Treasury in 2010, the original idea was to have a youth employment incentive to reduce the initial cost of hiring young and inexperienced workers and encourages firms to expand recruitment.

However, according to the 2012 Budget Review, the proposal continued to be debated in the National Economic Development and Labour Council as part of a multi-pronged strategy for youth employment.

Last year in his speech Gordhan said that he wanted the issue finalised by April 1 this year.

Labour movement Cosatu has continued to oppose the implementation of such a subsidy saying that it would lead to the displacement of older workers, the distortion of wage bargaining and the subsidisation of employer profits.

The Democratic Alliance said in its alternative budget that such a youth wage subsidy would help to break down structural problems in the labour market and contribute to creating jobs for 3.3 million unemployed young people.

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Your Views

TheRef 16 May 2012 6:21 pm

Well,well! COSATU knew what was coming and spoilt the DA party,it appears democratic rights only apply to the ruling party and it`s allies.The resulting judgement will be interesting seeing who pays t…

dokhotelo 15 May 2012 8:56 pm

he he he he……800 million bucks!!……After all, it seems there are ANC Mafia syndicates running the EC at all levels….ain’t it Editrix dear ???………………..

Bokkie 15 May 2012 2:01 pm

Regarding the “new health fraud shock” I wonder why? let’s see… O yes all the people in top positions are without any qualifications, any previous experience, they are incompetant to do their job, …

thirsty 14 May 2012 12:56 pm

This sounds absolutely STUPID, just think what development could be done for people of Port Elizabeth with that money, LET ALONE GET THE METRO’s FINANCES FIXED UP by not doing this….

thirsty 14 May 2012 12:44 pm

R800 Million stolen in one department in one year, AND THEY STILL VOTE FOR THE ANC, HOW STUPID. Western Cape gets a clean audit, and puts out more tenders and contracts BECAUSE THEY HAVE NOT STOLEN T…

mastermindPE 14 May 2012 10:28 am

IS THIS ACCEPTABLE YOU THIEVES FROM THE USELESS ANC-pf ?????…

mastermindPE 14 May 2012 10:22 am

You get the corrupt evil government you deserve when you vote for these clowns in the ANC-pf. All about cadre deployment, pillage, plunder, steal and feel feathers for the voting fodder they USE to st…

alvonhumb 11 May 2012 1:32 pm

Surely an honourable man with a democratic conscience would re-consider his position in the light of these developments which indicate that the recent elections were of questionable legitimacy? Mr Fa…

VernE 11 May 2012 1:06 pm

Nobody would dream of making up a story like this as it would be an obvious case of exaggeration. However… Hope this news doesn’t go beyond our borders or we are doomed in the eyes of the internatio…

Bokkie 11 May 2012 10:47 am

Oh please I cannot believe that our nation would waiste so much time and energy on these two models, they (models) must just grow up and get over it….