The DTI’s Industrial Development theme is now clearly reflected by the new divisions/programmes Policy Development (formerly the Industrial Development Division) and Incentive Administration (formerly The Enterprise Organisation). The Industrial Development theme was allocated 76.1 per cent of the total departmental budget allocation. The Incentive Administration Programme was allocated 78.6 per cent of this theme’s budget allocation while the Policy Development Programme was allocated 21.4 per cent of this budget allocation. Industrial development expenditure increased from R2.8 billion in 2008/09 to R4.6 billion in 2011/12, an average annual rate of increase of 18 per cent. [18] This growth was mainly due to the introduction of incentive support programmes for the clothing and textile, and automotive sectors. The incentives increased expenditure on Industrial Development in general such that the Policy Development programme grew from R418.7 million in 2008/09 to R1.3 billion in 2011/12, an average annual rate of 46.3 per cent, and the Incentive Administration programme also grew from R2.4 billion to R3.3 billion over the same period at an average annual rate of 11.4 per cent. [19] The theme’s budget allocation is expected to grow over the medium term to R8.6 billion, at an average annual rate of 23.1 per cent, mainly as a result of additional allocations for incentive programmes.

##### Industrial Development: Policy Development Programme

This programme focuses on developing and implementing policies, strategies and programmes aimed at growing manufacturing and related sectors of the economy and thereby contributing to the direct and indirect creation of decent jobs, value addition and competitiveness in domestic and export markets. The Industrial Policy Action Plan (IPAP) is the Department’s flagship to contribute to the mandate of decent employment through inclusive economic growth. The programme’s budget allocation was mainly spent on transfers, namely 92.8 per cent or R1.4 billion of the budget allocation. This included transfers to support the standards, quality assurance and accreditation institutions, about R413.5 million. This was planned to be distributed as follows: · South African National Accreditation System (SANAS) – R30.3 million (47.1 per cent increase since 2011/12). · National Metrology Institute of South Africa (NMISA) – R76.5 million (22.3 per cent increase since 2011/12). · National Regulator for Compulsory Specifications (NRCS) – R78.1 million (110.1 per cent increase since 2011/12). · South African Bureau of Standards (SABS) – a R180.5 million contribution towards research (-0.53 per cent decrease since 2011/12) and R48 million for infrastructure investment (48.5 per cent decrease since 2011/12). Other significant budgeted transfers included: · The Clothing and Textile Production Incentive, which is administered by the Industrial Development Corporation (IDC). The incentive was allocated R750 million, an increase of 25 per cent since 2011/12. · The National Foundry Technology Network, which is administered by the Council for Scientific and Industrial Research (CSIR) on behalf of the DTI, was allocated R21 million, an increase of 200 per cent since 2011/12. In addition, the Intsimbi National Tooling Initiative was allocated R49.2 million, an increase of 36.6 per cent since 2011/12.

##### Industrial Development: Incentive Administration Programme

The Incentive Administration Programme has been created to design and implement programmes that support investment, competitiveness, employment creation and equity. It consists of a range of incentives focused on broadening participation, manufacturing investment,