Private sector not rushing to industrial development zones

Posted On Monday, 31 October 2011 02:00 Published by eProp Commercial Property News
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The industrial development zones that have not had the up take government had expected

Andrew DonaldsonThe R25 billion manufacturing competitiveness fund was part of a series of added incentives aimed at boosting private investment in the industrial development zones that have not had the up take government had expected says Andrew Donaldson, head of public finance at the National Treasury.

Donaldson was answering questions on Wednesday before Parliaments' select committee on finance following a presentation by Finance Minister Pravin Gordhan's briefing on the medium-term budget policy statement (MTBPS).

"The basic idea behind an IDZ is that companies are able to benefit from their proximity to each other, the technology, and the skills associated with an IDZ," he said.

Donaldson said government had done a lot of investment in the infrastructure expansion of the East London industrial estate, but had not gained anything like the kind of impetus that was needed by the private sector.

"What is under consideration, with the Department of Trade & Industry, is how to supplement the state's financing of the infrastructure with other incentives for business investment such as training wages, the form of a preferential tax and other adjustments to the regulatory environment," he said.

Donaldson went on to say that experience in other countries was that IDZs were to develop export potential and this required new incentives.

"So the funds set aside in this MTBPS was aimed for competitiveness support for industry and would at least, in part, go for additional incentives for IDZs," he said.

Donaldson said one set of regulations would not be able to cater for all IDZs as those that were inland had a very different set of requirements from those situated on the coast.

Last modified on Wednesday, 14 May 2014 19:46

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