POLITICS

R5,6m for Cubans more proof NYDA should be shut - DA Youth

Makashule Gana says shutting agency would allow for zero-rating VAT on books

Totalitarian talk shop: State funds used for private jet shows NYDA should be shut down

The Sunday Times report showing that R5.6 million in state funds were used to charter a private jet to fly Cuban delegates to the National Youth Development Agency's ridiculous totalitarian talk shop, demonstrates just why the NYDA should be shut down, and its budget allocated to a useful cause - such as zero-rating VAT on books.

Indeed, the NYDA has a budget of R370-million this year, while the estimated cost of zero-rating VAT on books is approximately R300-million. Here is a straightforward step that President Zuma could take, if he were actually serious about expanding opportunities to all young South Africans, rather than simply dispensing patronage to ANC Youth League cadres.

News of R5.6 million being spent on this private jet provides yet further evidence that the NYDA has absolutely no clue what its mandate is, what it is supposed to be doing for young South Africans, and how scarce budgetary resources should be used productively, to create real opportunities, and to develop skills.

The DA Youth was willing to give the NYDA the opportunity to work. We stand full square behind the notion that the state has a crucial role to play in facilitating skills development in South Africa. This is why we have been campaigning for the introduction of a youth wage subsidy, and for expanded FET college funding, and for the NSFAS income eligibility threshold to be raised. But the fact is that the NYDA has become a crony network that does absolutely nothing to champion the issues that it was purportedly created to tackle. It does nothing to advance youth development, it does nothing to advance economic participation or skills development.

The DA's calculations suggest that the cost of zero-rating VAT on books would amount to just under R300 million a year (at the behest of DA Shadow Finance Minister Dr. Dion George, the Treasury is currently conducting detailed research into the exact cost to the Treasury). So here is a solution: scrap the NYDA, prevent precious Treasury funds from being spent on private jets, and spend the money instead on genuinely expanding education opportunities, by zero-rating of VAT on books - a literacy policy that can actually make a real difference in the lives of ordinary South Africans.

Statement issued by Makashule Gana, Democratic Alliance Youth Leader, January 16 2011

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