The Congress of South African Trade Unions (COSATU) welcomes the Minister for Trade, Industry and Competition, Mr. Parks Tau’s progressive decision to withdraw the draft National Credit Act Regulations in response to concerns that they could have had the unintended consequences of blacklisting student debt and the subsequent impact upon the ability of students to find work. 

We appreciate the Department’s assurances that this was not the intention, that matters could have been better communicated and sensitive issues became embroiled in misunderstandings.  Democracy is by its nature noisy, and South Africa’s is no exception.  We are pleased that Minister Tau responded with the necessary political maturity and humility to swiftly address the concerns sparked by the draft Regulations.  This is precisely the kind of leadership needed to resolve society’s often complex and even contradictory challenges. 

A broader and more holistic debate is needed on how we can ensure that the clarion call of the Freedom Charter that “the doors of learning and culture shall be opened” to all is a lived reality for all South Africans, in particular the working-class, and not merely those who can afford increasingly unaffordable fees to access tertiary and even basic education.

One of the major transformational success stories of government led by the African National Congress, has been the millions of young African, Coloured and Indian students who have been able to acquire tertiary qualifications, in particular those who have received funding from the National Student Financial Aid Scheme (NSFAS).  This has helped uplift millions from absolute poverty and begun to chip away at the still painful legacies of apartheid and colonialism.

Particular attention needs to be paid to the:

• Struggles of thousands of tertiary graduates to find work.
• Increasing numbers of working-class families who no longer qualify for NSFAS due to its threshold not being adjusted for inflation and how to mobilise greater funding for NSFAS.
• Relevance of the skills and qualifications provided by universities, colleges and Sectoral Education Training Authorities (SETAs) to the employability of graduates and workers and the needs of the economy of not only today, but also the future.
• Large numbers of students who do not complete their tertiary education.
• Allegations of serious corruption and wastage affecting many SETAs.

These are all outside of the responsibilities of a Minister for Trade, Industry and Competition; but as highlighted by the legitimate concerns raised in response to the now withdrawn draft Regulations, need to be resolved not only to ensure graduates find work and are not suffocating with student debt, but also to ensure that all children have a path to post-schooling education and that the economy has the skilled workforce it requires to grow, overcome structural unemployment, tackle poverty and inequality, and provide that better life for all.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za