I have already written this week that there is money within the SETA system, and Government appears to be mulling that one over.
And Finance minister Nene referred to the Employment Tax Incentive ETI and how R3,9 billion has been paid to 36 000 employers of 250 000 employees. We have no idea if these are new jobs or whether big business is claiming ETI every time they replace an employee with a new employee under the age of 30. In short we don’t know if that R3,9bn has achieved more than the dot on the i in the word sh&t.
So there is money out there. But it will take time, time that we don’t have to get it.
So what about a controversial emergency measure? No, not a tax increase thanks. If a million students can cause chaos imagine what 5 million taxpayers could do if they got off their bums?
Go to the Department of Labour website and pick up the fantastic package that is the 2014 annual report of the Unemployment Insurance Fund. Press download and go to the Statement of Financial Performance at page 110.
You will find that there was a surplus on UIF for 2014 of R12 bn. Okay that’s down a bit from R16bn in 2013. Yes, employees have been paying in more UIF than needed for years.
Then go to the statement of financial position 2014 on page 111. The technical reserves and accumulated surplus of the UIF fund is currently R90 bn. And the investments and cash sit at over R93 bn.
Now surely the student fee crisis is of relevance to the department of labour? The more graduates that are employed, the higher the contribution!
It would be the biggest comeback since Lazarus if government departments could work together and access just a bit of this fund to act as a quick solution to what is a national crisis.