Vavi: State must intervene in SA economy

By Staff Writer
The Congress of South African Trade Unions (Cosatu) general -secretary Zwelinzima Vavi on Monday reiterated his claims that the State needs to intervene in the South African economy.

Vavi was addressing a National Education, Health and Allied Workers Union shop stewards' meeting in Durban.

The secretary-general believes that the tripartite alliance is learning a lesson and the state should aim to play a more active role in the economy.

Vavi used the National Health Insurance policy as an example as to how the State can work to help improve the lives for a very large number of South Africans.

Cosatu have been pushing for a new growth path strategy and Vavi said that cabinet would soon release the details of this but added that despite having made a some progress since the African National Congress' (ANC) last policy conference; there is still a long way to go.

The ANC released a discussion document last week which proposed introducing the NHI scheme over 14 years, starting in 2010. Funding options range from a combination of increased tax rates, increased VAT, and a payroll tax.

It is projected to cost R128bn in 2012, rising to R376bn by 2025. It will begin by improving services to rural areas, and proposes importing doctors and nurses to meet the staffing requirements.

Recent Articles

Featured Can you avoid using a retirement fund?

Sceptical about having a retirement fund? We briefly consider some pros and cons of retirement funds.

Offshore investing 101 – how much should you invest?

Offshore investing has significant financial advantages. We explore how to invest offshore and what it takes to secure great portfolio performance.

When should you invest rather than save?

Extra cash left at the end of the month? We have a look at the differences between saving and investing, and we find out how you should decide which one to pursue.

Investing for your retirement – which product to use?

Retirement annuities (RAs) and tax-free savings accounts (TFSAs) - which is better when planning for your retirement?


Latest Guide

Guide to debt rehabilitation solutions