Mbeki confirms extension of MIDP

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.”