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Manuel's stance on subsidy will help - DA

The DA said Trevor Manuel's support for a wage subsidy will help put pressure on government.

Minister in the Presidency Trevor Manuel. Picture: GCIS/SAPA

JOHANNESBURG - The Democratic Alliance (DA) said Minister in the Presidency Trevor Manuel's support for the implementation of the Youth Wage Subsidy will help put pressure on government to implement the policy.

The party said Manuel showed his support for the subsidy through a parliamentary question on Monday.

The opposition party has been pushing for the subsidy, saying it will create jobs for more than 420,000 young people, but the Congress of South African Trade Unions (Cosatu) is against it.

The trade union federation argues that companies will hire young people to replace older workers, in a bid to get incentive money from government.

Gana said Cosatu's opposition to the policy was wrong.

"Cosatu is trying to look at the interest of their members, but they're not looking at the bigger benefit."

But Cosatu spokesperson Patrick Craven said Manuel's support for some sort of subsidy does not mean it was a good idea.

He said Manuel and Finance Minister Pravin Gordhan's take on the matter does not undermine the basic arguments against it".