NATIONAL NEWS - President Cyril Ramaphosa addressed the nation on Tuesday evening on the additional economic and social relief measures that will form part of the national response to the Covid-19 pandemic going forward.
His address flows from the recent deliberations he was part of with Cabinet, the National Coronavirus Command Council, the President’s Coordinating Council, and the National Economic Development and Labour Council, among others.
He told the country that experts had told him the outbreak was still in only its early stages.
The president focused on the economic responses government is taking and will take to mitigate the worst effects of the pandemic.
He said after the first phase of the lockdown it was now time to embark on the second phase of interventions to stabilise the economy, save jobs and businesses.
Ramaphosa said R500 billion would be spent – about 10% of the country’s GDP. He called it a “massive social and economic support package”.
R200 billion of this would be disbursed in the form of loans to companies needing cash flow to survive the shutdown of the economy and the new global recession.
A range of tax relief measures would see about R70 billion kept in the pockets of companies and staff currently suffering.
Taxpayers donating to the solidarity fund would be able to claim up to an additional 10% as a deduction from their taxable income.
“To assist a greater number of business, the threshold for tax deferrals will be R100 million a year.”
R100 billion would be spent to protect jobs and even create them.
“We will follow a risk adjusted approach to the return of economic activity, balancing the need to limit the spread of the virus and the need to get people back to work.
“R40 billion has been set aside for income support for employees whose employers unable to pay wages.”
R50 billion would also be spent in a temporary increase of social grants for beneficiaries, as part of the third phase of responses.
Child support beneficiaries would receive an extra R500 till October, with a smaller initial payment of R300 next month. R250 per month would be paid to all other beneficiaries for the next six months. R350 per month would be paid to the unemployed not receiving any other form of grant.
The department of social development would oversee the application and disbursement of funds.
The fourth phase was about getting the economy going and growing again, and Ramaphosa said the outline of this plan would be delivered in days to come, including how the phased reopening of the country would occur.
He said R500 billion would be spent to fight the epidemic, with the money coming from both local and international sources. The World Bank, African Development Bank, International Monetary Fund, New Development Bank had all been approached. R20 billion would immediately need to be spent on health measures.
Ramaphosa said he would give further details on Thursday on the gradual measures that would be implemented to slowly lift the lockdown.
“We will follow a phased approach. As we do so, we remain firm in our resolve to contain the virus. We will need to act with flexibility in the weeks and months ahead.”
Government would prioritise protective gear for workers and increase the numbers of hospital beds and ventilators. An extra R20 billion would be made to municipalities for emergency water supplies, public transport and sanitation, and to provide food and shelter for the homeless.
The president acknowledged that the country and the world would “never be the same again”.
“We are resolved not merely to return our economy to where it was before the virus, but to forge a new economy in a new world environment.”
In closing, he said he had faith in the strength and resilience of ordinary South Africans who have proven time and again they could arise to any challenge presented to our country.
“We shall recover, we shall overcome and we shall prosper.”
Source: Caxton publication, The Citizen
