The fight against poverty remains the cornerstone of the government's focus, President Jacob Zuma said in his maiden State of Nation speech in Parliament on Wednesday.

He said the past year had seen the global economy enter a period of crisis unprecedented in recent decades.

While South Africa had not been affected to the extent that a number of other countries had, its effects were now being clearly seen in the economy.

We have entered a recession

"We have entered a recession," Zuma stated. "It is more important now than ever that we work in partnership on a common programme to respond to this crisis," he added.

Zuma said that on the 9th of May, during the Presidential inauguration, the government had made a commitment to South Africa and the world that:

"For as long as there are South Africans who die from preventable disease;

"For as long as there are workers who struggle to feed their families and who battle to find work;

"For as long as there are communities without clean water, decent shelter or proper sanitation;

"For as long as there are rural dwellers unable to make a decent living from the land on which they live;

"For as long as there are women who are subjected to discrimination, exploitation or abuse;

"For as long as there are children who do not have the means nor the opportunity to receive a decent education;

"We shall not rest, and we dare not falter, in our drive to eradicate poverty."

In pursuit of these goals, the government has identified 10 priority areas, which form part of its Medium Term Strategic Framework for 2009 to 2014.

"We take as our starting point the framework for South Africa's response to the international economic crisis, concluded by government, labour and business in February this year. We must act now to minimise the impact of this downturn on those most vulnerable," Zuma told Parliament.

"We have begun to act to reduce job losses. There is an agreement in principle between government and the social partners on the introduction of a training layoff.

Re-skilled not retrenchment

"Workers who would ordinarily be facing retrenchment due to economic difficulty would be kept in employment, for a period of time and re- skilled," the president added.

Discussion on the practical detail was continuing between the social partners and the institutions that would be affected by such an initiative, including the Sector Education and Training Authorities.

"We will support the work of the Commission for Conciliation Mediation and Arbitration (CCMA) to assist employers and workers to find alternatives to retrenchments through the relevant legal process."

To date, CCMA commissioners have saved over four thousand jobs through facilitation processes, and provided ongoing advice and support to retrenched workers, Zuma noted.

He added that the Industrial Development Corporation has developed a programme to fund companies in distress.

"We will also ensure that government buys more goods and services locally, without undermining our global competitiveness or pushing up costs beyond acceptable levels," Zuma said.

"Building on the successes of our industrial policy interventions, a scaled up Industrial Policy Action Plan will be developed," he added.

"The lead sectors already identified are automobile, chemicals, metal fabrication, tourism, clothing and textiles as well as forestry. In addition, attention will also be paid to services, light manufacturing and construction amongst others, in the quest to create decent jobs.

"As part of Phase 2 of the Expanded Public Works Programme, the Community Work Programme will be fast-tracked."

It offers a minimum level of regular work to those who need it, while improving the quality of life in communities, Zuma pointed out.

He added that the economic downturn will affect the pace at which the country is able to address the social and economic challenges it faces. "But it will not alter the direction of our development.

"The policy priorities that we have identified, and the plans that we placed before the electorate, remain at the core of the programme of this government."