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At its meeting today, Cabinet was briefed on the investigations by the Housing Department on the mobilisation of savings for the expansion of the housing construction programme. Cabinet welcomed this initiative, and resolved to bring together a number of Departments to examine a multifaceted Savings Campaign which would feed into the general thrust of injecting a new dynamism into the economy, including the development of SMMEs and job-creation.

Cabinet examined the Communication Strategy of government, under the theme, "A Nation at Work for a Better Life". This will ensure that the momentum achieved during the opening of parliament is maintained; and help meet the obligation of government, using various mediums, to inform the public of government policies and activities.

The meeting took note of the various programmes that emerged from the recent Cabinet Legotla and the President's State of the Nation Address, including the relevant time frames. In this regard, the meeting noted the progress in respect of the issue of the National Lottery; the Minister of Trade and Industry will make announcements on this matter in the next few days. Announcements will also be made on the Special Investigation Unit to deal with priority crimes.

Cabinet reviewed recent developments on the price of gold, and noted the proposals that the Minister of Minerals and Energy will be taking to the on-coming South African Gold Crisis Committee meeting.

The South African government finds both incomprehensible and unacceptable the insensitivity of the British government and its monetary authorities towards the pleas of gold-producing countries, on the handling of the matter of gold sales. This behaviour, and the decisions of other industrialised countries and the IMF on the public handling of gold sales is having the effect of defeating the very objectives that they profess to pursue. The government will continue its engagement with these countries and institutions, to ensure that the express intention to deal with an element of the debt burden of developing countries does not in fact degenerate into a beggaring of the economies of some of the very same intended beneficiaries.

Cabinet also received a report on developments at the ERPM Gold Mine. It noted that, while latest developments in the gold market have some bearing on the mine's problems, there is a specific background to these developments which needs to be addressed on its own merits. Sensitive to the social impact of the latest actions of management at this mine, government has been consulting with role-players in the industry, including the trade union movement; and it will take concrete proposals to the Gold Crisis Committee meeting.

The Cabinet meeting received a report on public service wage negotiations. It welcomed the progress that has been made to address not only the immediate wage demands, but also to deal with such systemic matters as pay progression and restructuring. Government believes that the issues under discussion are not intractable; and therefore that protest action at this stage is premature. Government therefore urges all the unions to return to the negotiations table; and to ensure that the demands regarding pay increases are tailored to the reality of scarcity of resources which should primarily be used to improve the conditions of the poor.

The meeting was briefed on progress towards a peace agreement in the Democratic Republic of the Congo. Cabinet noted the critical role that South Africa representatives have been playing at these talks, which should soon lead to the signing of a comprehensive agreement. South Africa will, when the times comes, lend its fullest possible assistance to the implementation of the agreement, including the deployment of peace-keeping personnel.

On other international matters, Cabinet:

* approved that the President will, among others, support the adoption of the OAU Convention on Prevention and Combating of Terrorism, at the on-coming Assembly of the Heads of State and Government of the OAU;

* agreed that South Africa should host the UN Economic Commission for Africa Workshop on the Development of Indicators for the Economic Empowerment of Women in Africa;

* approved for submission to Parliament the Accession to the International Convention on the Suppression and Punishment of the Crime of Apartheid.

Cabinet rejected the insinuations in some public statements that the decisions of most of the parties in Parliament regarding representation on the Judicial Service Commission was irregular. Government hopes that especially those bodies which claim the mantle of non-partisanship, will examine this issue rationally, without being clouded by a subjective partisan interest.

For further information contact: Joel Netshitenzhe, 082-900-0083

Issued by: Government Communications (GCIS), 7 July 1999

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