NGOs, union press for decisive action

EXPECTATIONS are high among NGOs and some unions that the National Budget for 2009-2010 will address the impact of the global financial crisis.

Namibian Economic Policy Research Unit (Nepru) Director Klaus Schade says the Ministry of Finance faces substantial challenges in the Budget this year because of decreased revenue, which is a direct result of lower mining output, particularly in the diamond industry. He adds that tax revenue will also be compromised in the form of corporate tax from companies affected by the economic downturn, and declines in income tax because of job losses alreadyexperienced. Schade also notes that with decreased gains from the Southern African Customs Union (Sacu), Government is working on atight Budget. ‘Withholding tax and increases in excise duties will bring some money into the Budget, but these won’t offset the decline in other areas,’ says Schade, adding that despite the tight Budget, Government should not cut expenditure. ‘It is important that Government spend on infrastructure to stimulate the economy andremove existing bottlenecks, and to attract private investment,’ he says, adding that Government will most likely opt for an increased Budget deficit upwards of three per cent tofinance expenditure.
Schade says the increased civil service wage bill and veterans’ grants will account for some big increases in the Budget, but he doubts there will be any increases in other social grants such as pension and disability grants. The Labour Resource and Research Institute (LaRRI) hopes for increased social spending. ‘We are hoping for the extension of social security through the implementation of the BasicIncome Grant, as well as a focus on addressing youth unemployment through self-sufficiency projects and public financial education especially for youth, who are the most affected by unemployment,’ says LaRRI Director Hilma Shindondola-Mote. She feels the nationalisation of crisis-affected mines should be explored as a means to preventing further job losses. More than 1 300people in the mining industry have lost their jobs in the past sixmonths. ‘We would like to see talks on saving jobs and preventing retrenchment,’Shindondola-Mote says. She adds that it may not be a good time to impose increased royalty payments on mining companies, but that this should be looked into for future Budgets. Joseph Hengari, Secretary General of the Mineworkers Union of Namibia (MUN), is concerned about mineworkers’ jobs, and wants Government to bail out or nationalise affected mines. ‘From the MUN’s side, and inmy personal view, the Budget this time needs to look at addressing the economic crisis, especially because the mining sector has been hard hit. Government has previously shown that it is in the position to bail out parastatals such as Air Namibia and TransNamib, and even did so with Cadilu Fishing. If they havemanaged to do that, why not do the same in the mining sector?’ questions Hengari. Concern is rife that the crisis has not yet been adequately addressedin the country. ‘The economic downturn is engulfing the whole world, includingNamibia, but we haven’t seen anything concrete being done to address its impact,’ says Victor Kazonyati, Secretary General of the Public Service Union of Namibia(PSUN). Kazonyati also wants urgent attention paid to the ‘recurrent problems of flood management and school shortages’ .nangula@namibian.com.na