Trade union Solidarity yesterday welcomed Finance Minister Trevor Manuel's support for Eskom's expansion projects in his mid-year budget speech.

Trade union Solidarity yesterday welcomed Finance Minister Trevor Manuel's support for Eskom's expansion projects in his mid-year budget speech.

"It is a positive development, especially at this time when the government needs to fulfil its role as Eskom's principal shareholder," said spokesman Jaco Kleynhans.

He said Manuel's approach to national spending restraint, especially in this stormy economic era, as well as the commitment to increased exports and production, showed that the country and Manuel were still going to focus on the economic core principles.

He said earlier this year Solidarity had emphasised the importance of increased production in order to eventually lower inflation.

"By staying true to these principles and increasing production, South Africa will come closer to the target of 6 percent to 3 percent, as was again emphasised by Manuel." - Sapa