THE PRESIDENCY: REPUBLIC OF SOUTH AFRICA

MINISTRY IN THE PRESIDENCY: NATIONAL PLANNING COMMISSION

NATIONAL ASSEMBLY
QUESTION FOR ORAL REPLY
QUESTION NO. 129
DATE OF PUBLICATION:  5 JUNE 2012

ê129.  The Leader of the Opposition (DA) to ask the Minister in the Presidency: National Planning Commission:

(1) Whether the National Planning Commission (NPC) has identified any model for the implementation of a tax subsidy to reduce the initial cost of hiring young labour market entrants, as recommended in the National Development Plan; if not, why not; if so, what (a) model and (b) are the further relevant details;

(2) Whether the NPC has conducted any additional research on the effectiveness of such a tax subsidy; if not, why not; if so, what (a) were the key findings and (b) are the further relevant details?   

NO1831E

REPLY:

(1) The National Planning Commission is not an implementation body. We are an advisory body. Our draft National Development Plan calls for ways to ease the entry of young, inexperienced work-seekers into the labour market. We think that some sort of wage subsidy is the sensible way forward but we have not explored various specific design options for such an intervention.

(2) On the wage subsidy, the NPC has not done any primary research. We have listened to the views of government departments, trade unions, research organisations, youth organisations and academic institutions.

Issued by Parliament, June 18 2012

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