Economic Reform

 

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ECONOMIC REFORM POLICY

The current economic system is corrupt and not conducive for foreign or any investors. It only benefits the corrupt political elite and it neglects the poor. We need radical economic reform in order to grow and sustain a strong economy in South Africa. Here is our comprehensive plan for economic reform:

 

  • LAND PARTY will change the constitution to strengthen private property rights.

  • We will strengthen the independence of the Reserve Bank and lower the inflation target to 2%.

  • We will investigate and support the use of new technologies, like blockchain for payment systems, asset registers and the like.

  • We will dramatically alter the tax system by, amongst others, abolishing all taxes on capital, like capital gains tax, transfer duties, estate duties, etc.

  • We will abolish our myriad of small and irritating taxes, like vehicle taxes and financial transaction taxes.

  • We will increase the tax on fuel and reduce the number of personal income tax categories to only three. Personal income tax rates may have to be increased.

  • We will reduce company income taxes and abolish taxes on dividends.

  • We will establish an independent “Fiscal Board” implementing the Fiscal Credibility Rule, that uses VAT (by changing the VAT rate) as an instrument to assure balanced fiscal accounts over the economic cycle.

  • We will scrap all exemptions to VAT - except for exports.

  • Should certain groups require assistance, such as pensioners, we will help them through accessing the expenditure side of the budget.

  • We will establish means to invest child grants directly into the child’s development and care, for example: introducing a Three Meal Scheme to the schooling system.

  • We will increase the qualifying age for state pension gradually (say over 20 years) to 70 years of age.

  • We will issue coupons to parents and allow them to decide themselves to which school they want to send their kids.

  • We will provide student loans to the best students that want to further their studies overseas, and require them to repay these loans.

  • We will reinstate education colleges and launch a project to make SA’s primary education system world class.

  • We will declare a state of emergency for education, increase the length of school days, consider school on Saturdays and ban trade unions in education.

  • We will allow state hospitals and clinics more autonomy and convert the department of health into state-funded medical funds for all. Once you reach your limit on your medical fund you will be required to go to a medical training facility for treatment, for “free”.

  • We will place Eskom, SAA and the other state-owned parastatals under business rescue. We will take over their debt and enter into a public/private partnership.

  • We will launch a programme to pay civil servants who prove their commitment to this country through hard work and dedication what they are worth.

  • We will reduce the cabinet to a maximum of ten worthy and dedicated ministers. We will abolish irrelevant departments like sport, small business, women and so on.

  • We will develop basic infrastructure for housing on state-owned land and transfer full title to the poor.

  • We will sell other state land to fund this.

  • We will build police stations out of glass. The people must SEE that the police is working and the police must be held accountable by the people they are serving.

  • We will abolish all exchange control regulations and allow trustees greater discretion on investment decisions with no prescribed assets.

  • We will change the government’s employers pension fund to a defined contribution fund and allow members to migrate to funds of their choice.

  • Thereafter, we will abolish the Public Investment Corporation (PIC) - except for non-pension fund related functions.

  • We will abolish the minimum wage and the unemployment insurance fund.

  • We will abolish all forms of BEE and official race-based discrimination and replace it with a poverty development programme.

TAX TRANSPARENCY AND FAIRNESS

Tax underpins the prosperity of any country's economy. It is every citizen's social obligation to contribute fairly to our shared prosperity.

 

Opening up and reforming our economy will make more people productive and increase our tax base. Simple changes in policy to make tax fairer will ease the burden of those currently bearing the brunt of taxation and will address tax avoidance which is rife in South Africa. All of us, including business, must benefit from a healthy, educated and skilled population, with access to basic services and secure housing. This is only possible with a fair and transparent tax system.

 

  • We need to dramatically alter the tax system by, amongst others, abolishing all taxes on capital, like capital gains tax, transfer duties, estate duties, etc.

  • Abolish our myriad of small and irritating taxes, like vehicle taxes and financial transaction taxes.

  • Increase the tax on fuel and reduce the number of personal income tax categories to only three. Personal income tax rates may have to be increased.

  • Reduce company income taxes and abolish taxes on dividends.

  • Establish an independent “Fiscal Board” implementing the Fiscal Credibility Rule, that uses VAT (by changing the VAT rate) as an instrument to assure balanced fiscal accounts over the economic cycle.

  • Scrap all exemptions to VAT - except for exports.

  • We will address the culture of tax avoidance through our Tax Transparency and Enforcement Programme, and close down tax loopholes.

  • We will meet the business need for a more skilled workforce with extra corporate tax revenues contributing to education and skills budgets.

  • We will protect small businesses by introducing a voluntary turn-over tax.

 

Under a LAND PARTY government tax will be fair and affordable. We expect a substantial increase in tax income when loopholes that have allowed people to boost their personal wealth for years and years through tax avoidance are closed.

SPENDING SQUARED

The delivery of services to the public must rest squarely on a foundation of sound finances. Fair taxation, redirected revenue streams and renegotiated trade deals will ensure the books are balanced.

 

Government must focus on how we spend as much as we do on how we earn. We must ensure that every cent spent is an investment in our collective future to ensure faster growth and to eliminate our deficit as quickly as possible. South Africa must be a well-oiled machine that operates independently and that continuously builds up resources to realise its potential of being the economic powerhouse of Africa.

 

  • We will set the target of eliminating the government’s deficit on day-to-day spending within five years.

  • We will have a firm Fiscal Credibility Rule in place to guide all our taxation and spending decisions to ensure fiscal health.

  • We will establish an independent National Budget Responsibility Unit to oversee the compliance of this rule that reports directly to Parliament.

  • We are committed to ensuring that the national debt is lower at the end of the next Parliament than it is now.

 

Our Fiscal Credibility Rule is based on the simple principle that government should not be borrowing for day-to-day spending, but that future growth depends on investment.

INFRASTRUCTURE INVESTMENT

The backbone of any modern economy is the infrastructure of transport, communications and energy systems. This infrastructure is virtually non-existent in South Africa or unaffordable. It needs to be addressed urgently in order for South Africa to actively participate in the global economy.

 

In addition to ridiculous levels of corruption, South Africa and its people have been held back by poor and impulsive investments as well as an environment that is not conducive enough for competition to thrive in certain sectors because of the monopolies that evolved out of sanctions. From trains that don't fit railway tracks to slow broadband that costs a fortune to ageing energy systems and inadequate investment into the development of science and technology, we have a lot of catching up to do.

 

  • We will expand the Gautrain project to other parts of the country to re-establish and revitalise our rail programme thereby creating easy, accessible and affordable transport for all.

  • We will harness the economic potential of new technologies and science.

  • We will deliver rail electrification and expansion across the whole country, including to SADC countries like Botswana, Swaziland, Namibia, and Lesotho.

  • We will transform our energy systems, investing in new, state-of-the-art, low-carbon gas and renewable electricity production.

  • We will deliver superfast broadband availability nationwide.

  • We will improve mobile internet coverage and expand provision of free public Wi-Fi in city centres, townships, rural areas and on public transport.

  • We will improve 4G coverage and invest to ensure all urban areas, as well as major roads and railways, have uninterrupted 5G coverage.

  • We will put tight rules in place to ensure that investment is fairly shared around every province and region.

  • We will prioritise investment in modern technological infrastructure. 

 

LAND PARTY will do things very differently. We will ensure that the potential of every corner of South Africa is realised. We will rebuild communities ripped apart by globalisation and neglected for the past 25 years by government. We will rebuild and transform our economy so that it is reformed and opened up to all.

LAND’S INDUSTRIAL STRATEGY FOR UPGRADING THE ECONOMY

While the LAND PARTY does not wish to see a decline in our import revenue, we need to create an environment that provides equal opportunity to grow our export revenue. Economic growth is the main objective.

 

The current government has not provided adequate freedom, opportunity or support to our industries, businesses and workers. As a result the economy has shifted towards fewer opportunities for people to create wealth and a government EPWP programme that isn’t empowering people to contribute to the economy.

 

There are thousands of skilled people out there that are either unemployed or have no opportunities to create wealth. This is wasted potential and leaves us in a catch-22 situation where we are unable to kick-start manufacturing-based growth and have to turn to hi-tech services that require skills sets that we are unable to provide because of the state of our education system.

 

Many rural areas in provinces such as Limpopo, Eastern Cape, Northern Cape, North West; as well as coastal towns and villages have watched as their economies and communities crumble. South Africa’s failure to provide freedom and opportunity to its provincial, regional, and local economies to work is blatantly obvious in the continuous rise in unemployment, the increased cost of living, the deterioration of the country’s current account, weak productivity growth and under-investment in infrastructure.

 

South Africa can only be stronger if the potential of all South Africans is unlocked, and every province is given the freedom, opportunity and support needed to succeed and create wealth.

 

The LAND PARTY has an innovative industrial strategy that puts the right mechanisms in place to stimulate economic growth and provide opportunity. It is built on measurable goals designed to address the great challenges of the 21st Century where we also have to consider that machines are taking people's jobs.

 

The reality is that the 4th industrial revolution will cause an initial loss in jobs; however, it will also open up new opportunities to take advantage of modern technology to grow the economy in more innovative ways.

 

  • We will encourage private investment by allowing full capital deductions in the first year.

  • We will further encourage private investment by removing new plant and machinery from business rate calculations.

  • We will develop apprenticeship and internship programmes to increase youth inclusion and upskilling.

  • We will restructure the EPWP to ensure it serves as an effective starting block for people that are unskilled and/or unemployed to start being productive and gaining new skills focused on modern technology and science.

  • We will reform the administration and implementation of the EPWP to ensure that support and resources are made available to empower people with freedom and opportunity to create wealth rather than simply using them for menial tasks.

  • We will create an environment where the economy will be so favourable that imposing a minimum wage will not be necessary.

  • We will increase access to network sectors and services.

  • We will ensure that 60% of energy comes from zero-carbon or renewable sources by 2030.

  • We will meet the Organisation for Economic Co-operation and Development (OECD)'s target of 3% of the GDP to be spent on research and development by 2030.

  • We will re-establish trade schools to teach skills needed by industry as well as apprenticeships.

  • We will negotiate new deals with BRICS that create freedom and opportunity to grow our economy.

  • We will deepen regional integration in the SADC to expand market size and open new opportunities for growth.

  • We will reduce the red tape for setting up all businesses and for foreigners wanting to trade with South Africa.

  • We will open up opportunities for businesses and co-operatives to supply products and services to government.

  • We will require all businesses to: pay their taxes, recognise the worker’s party, respect workers’ rights and provide equal opportunities.

  • We will encourage businesses to protect the environment, provide skills transfer and training, and to pay suppliers on time.

  • We will support huge increases in civil servant wages in line with their levels of productivity.

  • We will simplify customs procedures.

  • We will evaluate and streamline financial and non-financial support for start-ups, co-operatives and small businesses.

  • We will increase entrepreneurial and co-operative education in the education system.

  • We will ensure that State Owned Enterprises stick to procurement and expenditure rules.

  • We will appoint a Digital Ambassador who will promote South Africa as an attractive place for investment to technology companies and who will help to ensure South Africa grows and prospers in the digital age.

  • We will provide support for start-ups to scale up to become world-class digital businesses.

 

Mobilising the talents and the resources of our whole country and ensuring that everybody has the opportunity to work and to be productive will have a positive impact on our economy. 

 

Training people with skills that are in demand for targeted industries will ensure that the South African economy is sustainable and fit for the future. Reforming and opening up industry councils and government departments to be more streamlined, cut out red tape and communicate more effectively will lay a solid foundation to grow the South African industrial economy sustainably.

REFORMING OUR FINANCIAL SYSTEM

South Africa has been in a recession because of poor governance, inept leadership and corruption. Our financial system is not conducive to opening up opportunities for businesses and local economies to thrive.

 

LAND PARTY will follow the successful example of China, Germany and the Nordic countries and transform how our financial system operates. We will establish a National Investment Bank which will deliver R150 billion of lending power through private capital finance.

 

Unlike the commercial banks, this new public institution will support a network of provincial development banks that will have a mandate to foster inclusive growth in their communities according to the specific needs of those communities. The banks will deliver affordable finance to individuals, businesses and co-operatives in all 9 provinces.

 

The National Investment Bank will fill existing gaps in lending by private banks, particularly to businesses and co-operatives, by providing patient, long-term finance to intensive Research and Development investments. It will also play an integral role in implementing our industrial strategy by prioritising spending in line with national objectives.

 

  • We will commit to creating a more diverse banking system, backed up by legislation.

  • We will use listing Stamp Duty Reserve Tax to cover a wider range of assets, ensuring that the public gets a fairer share of financial system profits.

  • We will overhaul the regulation of our financial system.

  • We will create new local public banks that offer services to match their customers’ needs.

 

South Africa needs a strong, safe and socially useful banking system that meets the needs of regional economies and communities, fosters economic growth and is affordable.

FOSTERING A NEW BUSINESS CULTURE

Scandals such as the failure of VBS, Steinhoff, Eskom etc. shows how the long-term growth of a company can be sacrificed for the sake of making a quick buck.

 

  • We will ensure that directors are accountable not only to shareholders, but to employees, customers, the environment and the wider public.

  • We will consult on bringing forward appropriate legislation to curb tax avoidance.

  • We will amend the business takeover regime to ensure that clear plans are in place to protect workers and pensioners when a company is taken over.

 

In order to open up the economy and create opportunity and earning potential, the LAND PARTY will invest in support, resources and education for businesses and co-operatives.

 

  • We will mandate the new National Investment Bank, as well as the provincial and national development banks in every region, to identify where other lenders fail to meet the needs of business growth.

  • We will have strict laws on late payments that will ensure that anyone tendering for a government contract pays its own suppliers within 30 days.

  • We will bring forward legislation to create a proper legal definition for co-operative ownership.

EMBRACING SUSTAINABLE ENERGY

The current government's Integrated Resource Plan has been stuck in red tape since before Zuma left office and decisions cannot be made without it. This means that procurement to upgrade existing sources of energy can't be authorised and there is no clear plan on the way forward with regards to renewable energy. This alone could cause the total collapse of our economy.

 

It is ironic that South Africa finds itself with an energy crisis when we have an abundance of sunlight, wind and water that could be used to provide us with energy. The Integrated Resource Plan (IRP) for electricity is a planning process which determines the optimal mix of generation technologies and capacities, at least cost to the economy, necessary to meet the projected demand for electricity in the years ahead, with defined reliability and security of supply. We cannot move forward without it. We are also sitting with the problem of unions who are not happy about the development of renewable energy because of predicted job losses which means more to-ing and fro-ing between stakeholders and the high probability that we may not have an IRP any time soon.

 

The LAND PARTY is a people's democracy where everyone has a say and, as such, a plan as important as this should not get stuck in bureaucratic red tape. Our energy policy is very straightforward and based on four principles:

 

  1. To ensure security of energy supply and to ‘keep the lights on’.

  2. To provide affordable energy for consumers and businesses.

  3. To ensure we meet our climate change targets, and foster a low-carbon economy.

  4. To ensure public ownership to deliver renewable energy, affordability for consumers, and democratic control.

 

  • We will place Eskom under business rescue. We will take over their debt and enter into a public/private partnership.

  • We will offer home owners loans to install renewable energy systems.

  • We will ban fracking because it would lock us into an energy infrastructure based on fossil fuels, long after the point in 2030 when the Committee on Climate Change says gas emissions must sharply decline.

  • We will invest in emerging technologies such as carbon capture and storage to help smooth the transition to cleaner fuels and to protect existing opportunities as part of the future energy mix.

  • We are committed to investing in renewable energy projects, including tidal lagoons, which can help create manufacturing and energy opportunities as well as contribute to climate-change commitments.

  • We will prioritise maintaining access to the internal energy market.

 

One of the most important things we can do for future generations is to build a clean economy. The low-carbon economy is one of the fastest-growing sectors; it will create investment opportunities across the country.

OPENING UP INTERNATIONAL TRADE

Healthy International Trade Relations are essential to a healthy economy. LAND PARTY is pro-trade and pro-investment. The future prosperity depends on minimising barriers that prevent us from exporting and creating the opportunities and economic growth we need.

 

  • We will work with involved administrations to bring forward an integrated trade and industrial strategy that boosts exports, investment and opportunities in South Africa.

  • We will establish initiatives to work with global trading partners to develop best-in-class free trade and investment agreements that remove trade barriers and promote skilled jobs and high standards.

  • We will ensure proper transparency and parliamentary scrutiny of all future trade and investment deals. Parliament must also be involved in making trade deals.

  • It is vital that we retain unrestricted access to our goods and services.

  • LAND PARTY is committed to the rules-based international trading system of the World Trade Organisation (WTO).

  • We will use trade negotiations to boost market access for South Africa’s environmental goods and services, alongside support for investment into new green technologies and innovative low-carbon products.

  • We will develop capital investment schemes and other incentives to encourage investment into South Africa, especially into target areas identified by the industrial strategy.

  • We will champion South Africa as a safe investment environment.

  • We will use the full range of export credit, finance, insurance and trade promotion tools to boost South Africa’s exports and support priority industrial sectors.

  • LAND PARTY is committed to growing the digital economy and ensuring that trade agreements do not impede cross-border data, whilst maintaining strong data protection rules to protect personal privacy.

CANNABIS

The versatility of this resource opens a whole new world of opportunities for economic growth. This is a multibillion rand industry and Africa’s climate is one of the most conducive to cultivating this resource and unlocking the myriad of benefits from this resource.

 

  • LAND PARTY will ensure the legalization and licensing of Cannabis trade in all sectors of the economy.

  • We will regulate the trade and use of Cannabis.

  • We will invest in the growth and explore the development of this industry, for example textile, construction, food supplements, feed for poultry and livestock.

We will promote the research, development and use of Cannabis for medical purposes.

#VOTELANDPARTY

 

Vision

The LAND PARTY shall:

 

Through pragmatic and progressive economic policy, individual freedom, and in harmony with nature, establish a prosperous society of people based on social justice and shared opportunities.

 

Freedom doesn’t equal immediate wealth, but we believe that it is better to live in an environment where you are provided with the freedom to create your own wealth, even though you might make some mistakes along the way.

 

The more rules and regulations you have, the less important it becomes for people to distinguish between what is right and wrong. We want to give people the opportunity to have that freedom, and to make mistakes and learn from them. We want to provide them the support, education and resources necessary to become wealthy through hard work and effective use of the opportunities that will be made available to them through a Land-led government. Our ultimate plan is to reform, open up and strengthen the economy by providing people with the individual freedom and opportunities to become prosperous and actively contributing members of society.

Values

The LAND PARTY subscribes to the following values in all its endeavours:

 

  1. Respect for the community of life

  2. Honesty

  3. Integrity

  4. Trust

  5. Consultation

  6. Solidarity

  7. Dignity

Mission

The LAND PARTY seeks to reorder the political and economic institutions and systems domestically and globally.

 

We have to deal with the damage from the years of government corruption we have had to endure. We will broadly seek to reform, open up and grow the economy, eradicate poverty, opportunities for all the people of South Africa to become wealthy and self-sustainable, skills development, gender equality, safety and research. It will establish programmes that will ensure that within the first 2 years of taking power that the following is achieved:

 

  1. Food security - encouraging modern, scientific agricultural practices, and providing the necessary support, technological resources, scientific research and education to encourage people to get involved in agriculture with the ultimate goal of strengthening the economy while eliminating food wastage and the discarding of surplus produce.

  2. Housing security - where private property rights are strengthened, allocation of state resources are dealt with strategically through referendum and homes are designed to people’s specifications.

  3. People development - Education that is ongoing, progressive and emphasizing the reconstruction and development of family and service to society. Creating and maintaining skills development for a move to modern technology and science.

  4. A modern, technologically savvy supportive state that responds to the people’s legitimate demand for prosperity and opportunity creation.

  5. Crime eradication and all forms of deviance through social interventions, corrective rehabilitation and victim oriented punishment.

  6. Economic prosperity through freedom of opportunity so that people become self-sustainable and wealthy, and through free trade agreements, and rapid industrialization. Allocation of state resources shall be utilized in a rational, consultative and inclusive manner with due regard to the dictates of justice and equal opportunity. It shall reconfigure the banking system to be more people-centred.

  7. Foreign policy that is people-centred, educative and principled.

  8. Environmental Justice – ensuring all programmes are in harmony with nature and conscious of the limited capacity of the planet to sustain us.

  9. Human Rights - Implementation of the remaining rights encapsulated in the current South African Bill of Rights and other universally respected HR documents which shall be prioritized by public participation. Apportion justice and material resources on an equitable and just basis.