Donaldson was answering questions on Wednesday, 26 October 2011, before Parliaments' select committee on finance following a presentation by Finance Minister Pravin Gordhan's briefing on the medium-term budget policy statement (MTBPS).
"The basic idea behind an IDZ is that companies are able to benefit from their proximity to each other, the technology, and the skills associated with an IDZ," he said.
Donaldson said government had done a lot of investment in the infrastructure expansion of the East London industrial estate, but had not gained anything like the kind of impetus that was needed by the private sector.
"What is under consideration, with the Department of Trade & Industry, is how to supplement the state's financing of the infrastructure with other incentives for business investment such as training wages, the form of a preferential tax and other adjustments to the regulatory environment," he said.
Donaldson went on to say that experience in other countries was that IDZs were to develop export potential and this required new incentives.
"So the funds set aside in this MTBPS was aimed for competitiveness support for industry and would at least, in part, go for additional incentives for IDZs," he said.
Donaldson said one set of regulations would not be able to cater for all IDZs as those that were inland had a very different set of requirements from those situated on the coast.
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
