Phase one covers light vehicles and OEM components ALAN PEAT THE REVIEW of the Motor Industry Development Programme (MIDP) is now well into the first phase, according to Johan Cloete of Blueprint International, the management consultants appointed by the department of trade and industry (dti) to conduct the review. The objective of the review, initiated on May 1, is to strengthen and modernise the MIDP, said the department, and ensure that the SA auto industry continues to enhance its already significant contribution to the economy by continuously improving its capacity to compete globally in a sustainable manner, and over the long-term. The overall review, added project leader Cloete, is being done in four parts, with this first covering light vehicles and original equipment manufacturer (OEM) components. Workshops on the subject have already been conducted with the relevant stakeholders in the industry sectors. Second in line will be for medium and heavy vehicles. Third phase will be the productive asset allowance – related to a manufacturer’s investment in new products, according to Cloete. Currently, he told FTW, this grants a duty credit certificate linked to 20% of the company’s investment – and allows the manufacturer to import that amount of product duty-free over a five-year period. “Fourth on the schedule is an accelerated leather review,” he said. This last phase has been partly triggered by complaints from the Australian leather seat cover industry that the current SA MIDP has been allowing local exporters unfair advantage – and led to inter-governmental discussions. But it has also resulted in the two governments having held several rounds of consultations on their respective automotive industries – with these focused on developmental measures. SA and Australia have now agreed to establish an ongoing co-operative process in which Australia will share its experience with SA during the MIDP review. This overall review is only expected to be finalised and released to the public by the dti about December, 2006. “But,” said Cloete, “our commitment to the department is to complete our review study by March next year.”
