ALTHOUGH THE Motor Industry
Development Programme (MIDP)
is only legislated until the end
of 2009, the government has
confirmed that the current
framework can stay in place until
2012 – unless the revised MIDP
is ready to take its place before
then.
This was quietly confirmed
in an extremely short statement
from president Thabo Mbeki
recently.
According to motor industry
sources, the lack of a firm promise
of a date for the new MIDP and
the details of its conditions
has met criticism from some
members.
However there is also support
for the confirmed extension to
2012 – an allowance already
hinted at by Alec Erwin while he
was still minister of trade and
industry, and apparently subject
to annual government
approval.
The current state-ofplay
for the new MIDP
is that government
adviser, Anthony Black,
is working on the
technical parameters of
the programme – a task
which motor industry
members agree is
“incredibly difficult and
complex”.
At the same time,
senior representatives
of the industry are in a
formal discussion process
with the department of
trade and industry. The
results of this are likely to
be defined in a dti update
on the review procedure
expected in August.
The industry
also expects a final
confirmation of whether
the revised MIDP will
follow the production
allowance route or not.
This will confirm a
suggestion that minister
of trade and industry,
Mandisi Mpahlwa, made
late last year when he
said that the department
promised to maintain
reasonable support.
“The specific level
of support will be
determined on the
basis of a cost-benefit
analysis,” he added, “and
will be announced upon
finalisation of the details
of a new programme in
August 2008.
“It is likely to take
the form of a subsidy
to production and
will include a robust
monitoring and
evaluation structure.”
Mbeki confirms extension of MIDP
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