Alan Winde, MEC of Economic Opportunities, has welcomed the National Government’s decision to implement a Red Tape Reduction programme to support small businesses.
The Western Cape Government launched its Red Tape Reduction initiative in 2011 and has since opened more than 2 000 cases, achieving a resolution rate of above 80%. It was reported yesterday (21 January 2015) that the Department of Small Businesses has decided to roll its programme out.
MEC Winde said: “The Red Tape team have saved hundreds of jobs in the Western Cape through their interventions. The unit is changing the brand of the Western Cape by sending a clear message that in this province, we are making it easier for business to do business.
“We are now moving into a second phase where we will be taking a more proactive approach to creating an enabling business environment. We are aware of the most problematic regulations and we are targeting these. If we want to remain a competitive destination, we have to cut red tape.”
At the Western Cape Government’s inaugural Red Tape Reduction Conference, which was held in September last year, MEC Winde appealed to the national government to conduct Regulatory Impact Assessments to assess the cost of all proposed legislation.
MEC Winde said unnecessary legislation had a high economic cost for the country.
He highlighted the new visa regulations.
“An independent study found that the economic cost to South Africa could run as high as R10 billion, and place 21 000 jobs on the line. Cutting red tape needs a whole-of-government, whole-of-society approach. In this regard the Department of Small Business’s move to tackle red tape is a major step in the right direction.”
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SOURCE: SOUTH AFRICAN OFFICIAL NEWS