The DA in the Western Cape is deeply concerned that businesses in the province are struggling to pay employees and keep their doors open under the continued Level 3 lockdown restrictions. Businesses are struggling immensely under the current regulations, with the ban on alcohol likely to cost the Western Cape economy R2 billion and the beach ban costing the hospitality and tourism industry R120 million a month.
As the Chairperson of the Standing Committee on Economic Opportunities and Tourism in the Western Cape, I will invite the UIF Commissioner, Tebogo Maruping, as well as the provincial Department of Economic Development and Tourism to brief the committee on the current challenges that businesses and individuals are facing, as well as the response by provincial government and by the UIF to assist businesses in the Western Cape.
We currently face an untenable business environment, particularly for those within the tourism and hospitality sector which have been hard hit, once again.
Two critical steps to safely give life to our economy must now be taken:
- Firstly, we need to safely support economic activity once more. The Western Cape has passed the peak of its second wave of Covid-19 infections, and while residents cannot relax their behaviour in helping to flatten the curve, national government has the power implement differentiated lockdown regulations which would open the economy and give businesses a much needed lifeline. By readjusting the curfew hours and alcohol ban, while also lifting the beach ban, national government would help to protect the livelihoods of thousands. By using a blanketed approach and applying the same restriction across the country, national government is not taking into account the current circumstances in the Western Cape.
- Secondly, I join Provincial Minister of Finance and Economic Opportunities, David Maynier, in calling for the UIF Covid-19 TERS benefits to be extended. The TERS scheme was first introduced during the Level 5 lockdown restrictions as a stop gap measure to ensure that employees would be able to make ends met while the economy came to a halt. It is imperative that, while lockdown restrictions continue to impact business operations, national government extend its support to affected businesses and employees.
We commend the efforts by the province in assisting more than 7 500 employees and 173 businesses who were affected by delayed Covid-19 TERS pay-outs; and for facilitating the overall pay-out of more than R38 million.
The Democratic Alliance in the Western Cape remains committed to protecting the jobs and livelihoods of our residents, and will continue to take every measure possible to see to it that residents are given the support they need during this time.
