‘Long term policy certainty is vital’ ALAN PEAT THE SA automotive industry is anxiously awaiting the results of the review of the motor industry development programme (MIDP), but there is still silence on the issue from trade and industry minister, Mandisi Mpahlwa. The review, started about two years ago, has been completed and is awaiting final ministerial approval – and due to replace the present MIDP on its expiry in 2009. Norman Lamprecht, executive manager of the National Association of Automobile Manufacturers of SA (Naamsa), told FTW: “Investments for new generation models post-2012 are already pending – and long term policy certainty is required.” The stated vision for the industry is to produce a million vehicles a year in SA by 2020. “For this to happen government would need to come to the party soon – and provide the legislative and regulatory space this major industry in the SA economy needs,” said Lamprecht. According to voices in the industry, the current export incentives – where vehicle and component manufacturers can use credits earned from exports to offset duties payable on imports of vehicles and components – are likely to be replaced with what is termed “a production allowance”. But, despite enquiries of industry authorities and departmental spokesmen, FTW has been unable to have this confirmed or denied – and it remains just part of the speculation about the new MIDP contents. And the outcome is vital, according to industry sources – with the MIDP seen as a crucial foundation for the future of the SA motor vehicle industry.
