PARLIAMENT, February 24 (ANA) – The Democratic Alliance on Wednesday said it was disappointed that Finance Minister Pravin Gordhan did not announce deeper cuts on consumption spending, but said pronouncements on the national airline were positive.
Speaking shortly after Gordhan delivered the 2016 budget speech, DA MP David Maynier said spending cuts should have included slashing President Jacob Zuma’s “bloated cabinet” down to 15 ministries, saving the fiscus, according to him, R4.7 billion.
Maynier welcomed the budget deficit reduction to 3.2 percent of GDP for this financial year.
“I do concede that it being cut to below three percent of GDP in the outer years is positive from a ratings downgrade point of view.”
Government’s intention to explore merging South African Airways and South African Express and finding a minority equity partner for a new, bigger airline, also found favour with South Africa’s biggest opposition party.
“We have to welcome the minister’s announcement that there will be consolidation at SAA, and that SAA will now consider bringing in an equity partner which will invite private sector investment and we certainly hope the term strengthening the SAA board is ministeral code for getting rid of Dudu Myeni, so it certainly was a positive aspect of the minister’s speech,” said Maynier.
Maynier was referring to SAA board chairwoman Dudu Myeni, who came under fire last year after she tried to renegotiate a lease agreement with Airbus, drawing a stern warning from National Treasury that the airline could be penalised financially.
In late December, Gordhan instructed her to revert to the original deal with the european aircraft manufacturer.
– African News Agency (ANA)
