DTI to set up stakeholder forum as new MIDP plans move forward

AS INDUSTRY anxiously awaits details of the new Motor Industry Development Programme, the Department of Trade and Industry has revealed plans to set up a forum in which all stakeholders will be represented. It will also hold industry consultations on a more formal basis from early this year. The forum will work within tight guidelines established by the DTI in order to finalise the technical parameters of the new programme. According to a statement released on December 18, the DTI promises to maintain reasonable support for the industry in a future programme. “The specific level of support will be determined on the basis of a cost-benefit analysis and will be announced upon finalisation of the details of a new programme in August 2008,” Trade and Industry Minister Mandisi Mpahlwa said. “Over the longer term it is also important to recognise that the growth of the regional and domestic market, coupled with enhanced firmlevel productivity and broader infrastructural improvements in the South African economy, should ensure that the industry becomes competitive and gradually less dependent on government support.” The MIDP is legislated until the end of 2009. The introduction of a new support programme aimed at improving the domestic value chain is expected to last until 2020. “The new programme will focus on value addition while being consistent with South Africa’s multilateral obligations,” said Mpahlwa. “It is likely to take the form of a subsidy to production and will include a robust monitoring and evaluation structure.” It will be designed to promote job creation and the long-term sustainability of the industry, emphasising the attainment of internationally competitive economies of scale in production, he added. “Government intends to support production platforms/ investment plans that intend to reach a minimum volume of output per platform of 50 000 units per year within a reasonable period of time.