DA unpacks the reasons behind its support for Ramaphosa’s Covid-19 economic rescue
"Paying cash directly to poor families and making loans directly available to small businesses is the most rapid, effective way to target such relief efforts," Steenhuisen said.
The DA has publicly welcomed President Cyril Ramaphosa’s plan of rescuing the economy and its intention of dodging poverty systematically imposed by the Covid-19 lockdown.
Steenhuisen believes Ramaphosa’s plan targeting employment, businesses rescue and poverty alleviation was broad enough to make a significant impact in the lives of South Africans.
This after Ramaphosa announced a social relief and economic support package amounting to R500 billion on Wednesday, 22 April. The package was set to cover the health budget to respond to Covid-19, the relief of hunger and social distress, and support for workers.
Steenhuisen said Ramaphosa’s R500-billion relief would be a significant injection and, if executed correctly, could be the kick-start the economy needs to recover from the effects of Covid-19 and the lockdown.
He applauded Ramaphosa for his decision to approach global institutions, the International Monetary Fund (IMF) and the World Bank for loans to add to the budget reprioritisation fund of R130 billion and the UIF reserves.
“Paying cash directly to poor families and making loans directly available to small businesses is the most rapid, effective way to target such relief efforts,” Steenhuisen said.
He said the R20-billion allocation to healthcare would enhance the health system in effectively treating and controlling the spread of the virus and further determine when the economy can return to normal again.
“It is crucial that this budget is spent wisely – apart from capacitating all our hospitals and procuring sufficient personal protective equipment and ICU equipment.
“It is now important that the roll-out of these relief measures – as well as our progress in testing and tracing, and our hospital capacity – is communicated regularly and transparently.
“A significant portion of this budget must go towards a large-scale testing, tracing and tracking programme that can provide us with an accurate picture of the spread of the virus.”
Steenhuisen also welcomed eased regulations allowing the economy to breathe. He said the total lockdown costs around R13 billion a day.
He, however, said the party’s support for the plan was not unconditional, as there were several aspects of Ramaphosa’s presentation that were ‘not well detailed’.
“For example, the challenging logistics of paying out the temporary unemployment grant. If this fails on implementation, the resultant frustration and backlash could pose a threat.”
Steenhuisen also proposed for a larger social grant increase – R1 000 top-up for all grant types – but for a shorter period of three months.
He said Ramaphosa also ‘failed’ to make any mention of an increased deployment.
of 73 000 soldiers
“This militarisation of our society and the state is a threat to our democracy, regardless of the circumstance under which it takes place. South Africans are owed an explanation.”
Steenhuisen has since been in hot waters over publishing on Twitter a letter believed to be from Ramaphosa, directed to Members of Parliament on the issue – he was said to be reported to the National Assembly speaker.
Meanwhile, ANC alliance lefties, SACP, in a statement said although they have also welcomed the plan, they want the IMF and World Bank’s aid not to tie the country to debt.
“Accordingly, we called for, and reiterate our call for debt relief and the scrapping of the unsustainable debt, interest and penalties that stand in the way of development, employment creation, poverty eradication and advances in other human development indicators in formerly colonised countries, not least in Africa.
“We also call for aid that is without conditionalities aimed at debilitating the sovereign decision making and the economies of developing countries.”
Minister of Finance, Tito Mboweni said the government would request for Covid-19 assistance from the IMF and World Bank and not the ordinary budget support.
However, it is not clear what the conditions of the IMF and World Bank loans to South Africa’s Covid-19’s fight fund would be.
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