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Mr Schuitmaker,
Colleagues,
Honoured guests,
Members of the business community.

We are together once again for what I believe has become one of the most important meetings of the year.

It has become more than a forum for swapping strategic ideas, it has become a meeting of business minds.

The Western Cape Government and for that matter also our third sphere of government, cannot function effectively without a sound business partnership. And that is why we are here - to forge the partnership and to turn it into an effective and creative consultative forum.

Such a forum will need certain structures the first being an economic advisory council with members drawn from both business and government.

The themes to be discussed today will broadly reflect the Western Cape Government's set goals for the year. These are goals I spelt out in my opening of Parliament address in February.

There were five main themes namely Crime, economic development, HIV/AIDS, rural development and the environment. I will briefly outline my government's position on these issues which I believe are of major importance and affect everyone in our province.

I will be adding another theme, namely, the Employment Equity Act, an issue which business also has to deal with.

I believe the Western Cape is rising above the depressing national backdrop of growing unemployment, widespread poverty, high crime rates and the rapid spread of HIV/AIDS. I believe the Western Cape stands out against this gloomy backdrop as a world-class society.

I also believe there is reason for optimism, and more specifically, provincial optimism. My optimism is shared by a global economics analyst (Alan Castle, Lehman Bros economics analyst, London). Like him, I believe there is reason to smile.

Nationally real disposable income grew last year at a rate of 3,4%; real interests rates have stabilised at around 7%, the lowest since 1995; house prices grew by 13% and financial wealth is increasing with a 5% rise in the year on year All Share Index. In the Western Cape, economic growth is approximately 1,7% higher than the national economy as a whole and this margin is considerably larger when compared with the average of the other eight provinces rather than nine - to quote my MEC of Finance, Mr Markovitz.

U mag my vra waarom is ek optimisties oor sake soos misdaad, ekonomiese groei, VIGS, landelike ontwikkeling en die omgewing.

My optimisme is gesetel in hierdie provinsiale regering se politieke wil om hierdie probleemgebiede te sien as uitdagings - dis uitdagings wat kaalhand aangepak word met ywer en deursettingsvermoë.

Kyk wat doen ons teen misdaad.

We now have a safety plan for the Western Cape to tackle terrorism, transport violence, gangsterism and the upliftment of communities through visible policing and the safeguarding of tourism and agriculture. An additional R19 million has been budgeted in this respect. But I believe MEC Hennie Bester will have more to say in this regard. Suffice it for me to say, we will deliver to all the people of this province.

Job creation and Economic growth:

We are fully aware that the Western Cape clearly has a long way to go with an 18% unemployment rate. One in 5 of our population, or more than 650 000 people, live in poverty and some 300 000 people have no work in this province. At the same time, we must bear in mind that the Western Cape creates 23% of the total number of jobs countrywide.

These are disturbing statistics and improving them will need a major effort from this government. As I said in February, we might be the Olympic Champions in South Africa when it comes to delivery, but we are no way near world class performances.

Hulle sê in die land van die blindes is die eenoog koning. Ons mag byvoorbeeld die beste onderwys resultate in die land hê, maar daar is nog skole waar die resultate nie naastenby na wense is nie.

Op ander terreine presteer ons ook beter as baie ander provinsies, maar nog steeds is daar ruimte vir verbetering en is ons dikwels nog vêr agter ons internasionale ekonomiese mededingers.

Based on this appreciation of the dynamics of the global and local economy, and taking into consideration the macro-economic direction taken by our national government, our provincial government has developed an economic strategy based on four essential pillars:

Firstly, to ensure that the Cape becomes one of the world's premier learning regions within the next decade. We must also speed up the diffusion of new knowledge and techniques within industries through specialised training. I believe our twinning agreement with the State of California signed only days ago, is the first bold step in this direction.

Secondly, our infrastructure is being upgraded to ensure an environment conducive to the movement of goods, people and information. Our provincial roads programme has been allocated an extra R77 million. The dramatic improvement at Cape Town International Airport and our multi-million Rand Convention Centre are other examples and more are in the pipeline.

Similarly, it is our firm intention to put the Cape in the fast lane of the information super highway. There are clear signs that the Cape is becoming a centre of IT based industries in South Africa. I said it in California and I repeat it here today, we need even greater skills transfers into the Western Cape, especially in IT.

Our California and Florida programmes were structured around this and other objectives and I can assure you we have opened doors in this regard.

Thirdly, we want to bolster the Cape's entrepreneurial strength. That requires making it an attractive destination for foreign investors, but also providing suitable support for local entrepreneurs. We are building a strong private equity and venture capital sector in the Western Cape. We are confronted virtually each week with businesses producing excellent products and poised for a great future. But when we lack the capital to expand, we cannot take the critical leap forward. This is particularly the case with good businesses from previously disadvantaged communities.

The twinning agreement with California has opened up a range of new opportunities for the Western Cape business community and I fully support Mike Thompson, the President of the Cape Chamber of Commerce and Industry when he calls on business to Seize the moment and to take full advantage of the California initiative. The agreement is also perfectly timed to exploit the Africa Growth and Opportunity Act with its duty free access to the USA.

I also believe that the California and Florida visit has opened a sluice gate to previously relatively untapped tourist target markets in the US.

Together with the green paper aimed at creating a new, dynamic, co-ordinated focus to grow tourism to the province to its true potential as an important earner of revenue, it will provide a major contribution to the economic upliftment of all the people of our province.

Nog 'n prioriteit is die bekamping van MIV/VIGS. Die bedreiging wat VIGS vir Suid-Afrika en die Wes-Kaap inhou, om nie eens van die res van Afrika te praat nie, is vreesaanjaend. En dis nie net 'n bedreiging vir die provinsiale regering nie, maar ook vir die sakesektor. Dis 'n bedreiging so groot soos 'n berg wat alle ander probleme na blote molshope laat lyk. Dit sal feitlik nie 'n enkele aspek van ons lewens in ons provinsie onaangeraak laat nie. Die finansiële implikasies is ewe skrikwekkend. Mediese skema tariewe sal dramaties styg, die privaatsektor sal nadelig beïnvloed word weens siektes en sterftes, die ekonomiese groei sal daal met 'n gevolglike groeiende werkloosheid.

But again there is reason for optimism. There are countries which have been successful in combating the disease. Thailand is a case in point. We can achieve the same degree of success, but then we must not be bogged down with irresponsible and bizarre theories about the causes of HIV/AIDS.

Rural Development:

Rural development has been included as a tenth policy objective of this government. A rural development plan is being drawn up in conjunction with municipalities and an audit has been commissioned of the job creation impact of programmes undertaken by the provincial government. We need to retain our rural populations by creating job and entrepreneurial opportunities. Our rural programme must and will provide solutions to these challenges. Why is this so important?. It is important because the people of our platteland are important.

En as bewys van hoe belangrik ons ons mense op die platteland beskou, bring ons aanstaande week ons hele Kabinet na Suid-Kaapland. Dit sal ons sesde "Kabinet na die Mense" uitreikingsprojek wees en die eerste van drie hierdie jaar. Dis wanneer ons as provinsiale regering, in persoonlike gesprek tree met ons plaaslike regerings en ook eerstehands van ons mense wil hoor wat hul griewe, probleme, tekorte en knelpunte is. Dis waar ons met "Hands-On-Government" begin. Dis wanneer ons werklik in voeling is met ons mense.

The Environment:

I have always said there shall be no development at the expense of our environment and I will continue saying it. The environment and tourism are intertwined. Cabinet has therefore called for a tourism marketing policy and to strengthen our efforts to develop our own tourism identity. This was also discussed with our new Californian partners during our visit and also with the State of Florida with which we also have a twinning agreement.

By promoting tourism, our most important earner of foreign currency, we are promoting the interests of all our people in our province. A budget allocation of R1,5 million will now allow us to process environmental impact assessments facilitating controlled economic growth and improved infrastructure which in turn accelerates job creation.

Mr Markovitz will be dealing with this issue in detail in his presentation.

I will now turn to the Employment Equity Act and refer specifically to equity in the employment of people with disabilities.

Unemployment and poverty are fundamental problems affecting the lives of the majority of people in the Western Cape and even more so those people with disabilities. According to the 1996 Census, 78% of disabled people in our Province had an income of R1000 and lower per annum, only 0.1 % had an income of R3000 and more per annum.

The majority of disabled people are poorly trained and low skilled, resulting in limited opportunities of entering the open labour market.

The Employment Equity Act introduced measures to advance equity in employment of people with disabilities. Compliance with the Act requires a special commitment from you, the Business Sector as employers in terms of training, accessible work environments and employee support services.

Our 41 protective workshops need to become centres of real economic empowerment. As part of this process the Provincial Department of Social Services has made, an extra R1 million available for the funding of special projects during the 2001/2002 financial year to support transformation initiatives.

You, our Business sector, can likewise enter into partnerships with protective workshops to give impetus to the transformation process.

All sectors of society have a responsibility to contribute towards the creation of those opportunities for people with disabilities. Our Business Sector is well positioned to make a contribution in terms of economic empowerment.

I believe the business sector as well as the Provincial Government of the Western Cape, will not be found wanting because the people of our province have the sense of responsibility and the drive to succeed on all fronts.

And we are not alone in our will to succeed. There is a world out there which also wants this province and South Africa to succeed. California is a case in point.

By taking the initiative to reach out to the Western Cape, and so to create for California a bridgehead to the continent of Africa, I believe this American state has shown a characteristic willingness to raise its sights beyond its traditional and more-immediate focus across the Pacific Ocean. I believe California and Florida, as new links to Africa's Southern Tip will work. Their belief in the Western Cape's business potential, its development, its ability to deliver, its stability, its budding future, is truly well founded. It mirrors my Government's belief in realising our Western Cape vision: - to make this province the most desirable place to live in, to work in, to visit and to do business with.

Let us stop whining and start dining on what the world has to offer! Let us accept and extend a hand-up instead of accepting a handout. We in the Western Cape are the first among equals. We are the flagship of our country. We are the gateway to Southern Africa and our continent - the sleeping giant which is now awakening!

California and Florida realise it. Let us believe in ourselves. Let us not be tried and found wanting. Let us leave a legacy for future generations.

Ladies and gentlemen, I hope that my address has touched on some issues of mutual interest and perhaps concern. That is why we are here today, to stimulate debate and to address challenges and to plan the road ahead as economic partners. As you have seen on your programme, some of my MECs will be delivering presentations. There will be ample time for discussions and questions. I can only appeal to all of you here today, not to restrict your interaction with the Western Cape Government to today. Make it an ongoing process. We need to know what your needs are and you need to know how far we can go in addressing those needs.

Enquiries: Chris Koole on (021) 483 4705/6 or 082 774 3462

Issued by: Office of the Premier, Western Cape, 10 May 2001