announced that vacancies had occurred in the representation in this House of the following electoral divisions:

1. (1) Johannesburg North, owing to the resignation, with effect from 1 July 1982, of the Hon. J. F. Marais.
2. (2) Parys, owing to the resignation, with effect from 1 August 1982, of Dr. W. D. Kotzé.
3. (3) Stellenbosch, owing to the appointment to the President’s Council, with effect from 2 August 1982, of the Hon. H. H. Smit.
4. (4) Walvis Bay, with effect from 27 August 1982, in terms of section 6 of Act 99 of 1982 and Proclamation 153 of 1982.

announced that the following vacancies had been filled with effect from 3 November 1982:

1. (1) Johannesburg North, by the election of Mr. P. G. Soal.
2. (2) Parys, by the election of Mr. M. D. Maree.
3. (3) Stellenbosch, by the election of Mr. P. G. Marais.
4. (4) Walvis Bay, by the election of Mr. M. C. Botma.

announced that a letter had been received from the Secretary: Department of the Prime Minister stating that the State President would open Parliament at 11h00 today in the Assembly Chamber.

Proceedings Suspended AT 09h51 And Resumed At 11h47.

took the Chair.

stated that at the opening ceremony he had received a copy of the State President’s Address to members of the House of Assembly, which was in the following terms:

*Mr. Speaker and Members of the House of Assembly:

You are all most welcome at this the Third Session of the Seventh Parliament of the Republic of South Africa.

The Republic of South Africa is facing 1983 in confidence and faith. The way in which both government and the private sector have been able to cope with the difficult economic conditions and the onslaughts against South Africa enables us to counter the problems resulting from the actions of those who are hostile to us and from the world-wide economic recession boldly, deliberately and effectively. This is not the first time that we have been required to take up critical challenges in difficult circumstances. We have the will to do so.

Events and developments in South Africa constantly come under the keen and generally hostile gaze of a great many elements abroad. Nevertheless, there have been indications in important countries that the Government’s initiatives in the economic and constitutional fields are seen in a positive light by interested members of the international community.

Stability in Southern Africa is indispensable to the effective realization of the Government’s peaceful goals and the prosperity of the inhabitants of the region. Where destabilised conditions occur in this part of the world, they are the result mainly of the untiring efforts of the Soviet Union to expand its influence in Southern Africa in its pursuit of world domination. This is why the Government of the Republic of South Africa endeavours with all the means at its disposal to improve the quality of life of all people and groups, to continue to pursue and extend a just and efficient system of government and to equip the country’s security forces in such a way that they are constantly prepared.

The signal achievements of the arms industry have spectacularly increased the striking power of the Defence Force. The South African security services are having outstanding success, despite sporadic terrorist action, in guaranteeing the integrity of the country’s borders and maintaining law and order. In this way a favourable climate is created in which the Government’s initiatives for peaceful development can flourish.

South-West Africa is still a difficult and vexing problem. During the past year the Government, in consultation with political parties and interest groups in South-West Africa, gave constant attention to this problem. But the existence of so many political parties in the Territory is making consultation increasingly difficult. The disastrous drought has contributed to frustration and uncertainty among the people. Although progress was made during the sustained negotiations with the United States of America, a final answer has not yet been obtained on the withdrawal of Cubans from Angola. The further course of efforts to reach a settlement will affect the peace and stability of the whole of Southern Africa. Without the financial and economic assistance of the RSA, and its contribution in the field of security the people of South-West Africa would find themselves drifting helplessly in international affairs.

In Southern Africa inter-state relations were strengthened through high-level bilateral and multi-lateral discussions with neighbouring states. A coherent regional development policy for Southern Africa was given substantial form during the November 1982 summit meeting. An especially important step was the decision that the Development Bank for Southern Africa be established on 1 September 1983.

The Government will continue resolutely to bring about a dispensation in which individuals, communities and population groups and peoples will have an equitable say in decision-making processes that affect their interests and the satisfaction of their reasonable expectations. Consultation and negotiation is therefore continuing in real earnest with a view to the practical application of the Government’s constitutional guidelines for Whites, Coloureds and Indians, the creation of bilateral and multilateral structures between the Republic and the independent states that were formerly part of the Republic, the constitutional development of the national states and their participation in socio-economic development actions in Southern Africa and the continued and active attention being given to the position of Black communities outside the independent and national states.

The Government is also constantly endeavouring to create a sound and just social system within which the quality of the lives of all South Africa’s people will continue to improve. The extent to which this is achieved is largely determined by the country’s economic capability.

†During 1982 the South African economy passed successfully through the first phase of a consolidation and adjustment process. The recession in our trading-partner countries, intensified by international debt crises, turned out to be more protracted and severe than had been expected. In addition, the gold price showed a further sharp decline in the first half of 1982. These unfavourable developments inevitably resulted in a slowing down of the growth rate in the Republic. The situation was further exacerbated locally by severe drought conditions in many areas of the country. The very high rates of economic growth of 1980 and 1981 could therefore not be sustained and no significant increase in real gross domestic product was recorded last year. Employment levels remained generally satisfactory, while there was some easing of the strain on skilled manpower.

The past year has seen a very substantial improvement in the deficit on the current account of the balance of payments as a result of the corrective fiscal and monetary measures taken by the Treasury and the Reserve Bank; and, as the balance of payments strengthened, so did the rand. Present indications are that the moderate appreciation of the rand is likely to continue.

During 1982 the monetary authorities improved their control of the money supply. Interest rates peaked at historically high levels in nominal terms during the year, but have eased in recent months. The continued application of fiscal discipline paid handsome dividends and succeeded in containing the deficit before borrowing in the Budget to the pre-determined level, notwithstanding strong pressures for increased expenditure.

The process of adjusting the economy to changed circumstances must continue in 1983 if a firm and healthy base is to be prepared for the next cyclical upswing, and if inflation is to be curbed. To achieve this, the authorities will persist in their policies of exercising effective control over public sector expenditure and the money supply.

In the present depressed state of the world economy, South Africa’s own rate of economic growth will most probably remain below its long-term potential in 1983. However, if the long expected economic recovery in the major industrial countries gets under way in the months ahead, and the gold price holds, the trough of our own business cycle might well be reached about mid-year, or a little later.

In a world rocked by the worst economic setback since the disastrous Great Depression of the nineteen thirties, the South African economy has performed as well as any, and better than most.

A disturbing feature, however, has been the prolonged and serious drought which is still gravely affecting certain areas of the country. The whole country is grateful to the Almighty for the relief that has been brought by good rains in large parts of the country. A new long-term drought assistance sheme has been introduced to assist farmers and to keep veld deterioration in check in the arid grazing areas. In addition, temporary relief measures will be considered where necessary. Research continues to be the basis of a sound agricultural industry and its positive results have thus far contributed in no small measure to increased crop and animal production.

The conservation of the environment is of great importance to the future well-being of all the peoples of South Africa. The results of the activities of the Council for the Environment are therefore keenly awaited. The State appeals to all South Africans to keep South Africa clean and to fight pollution. Let 1983 be the year to start a continuing campaign in this regard.

The search for oil is continuing unabated. Drilling is being pursued to establish the significance of last September’s oil find and of earlier gas discoveries. Increased self-sufficiency in liquid fuels remains a high priority.

Good progress is being made with the training and retraining of the country’s work force and particular attention is being paid to the better utilization of our manpower resources, through, among other things, the protection of the safety and health of workers and the maintenance of order and stability in the manpower field.

The Government is determined to help solve the housing problems of as many people as possible by, inter alia, evolving a new strategy. The efforts of everyone, be it the individual himself, his employer, private initiative in general or the State, must be united in a purposeful and comprehensive housing programme. To this end housing priorities have been revised. In future the State will in the first instance concentrate on relieving the housing plight of those whose needs are the most acute. Secondly, the emphasis will be placed on the provision of infrastructure to make sites available for housing on the most reasonable conditions. The individual will be placed in a position of self-sufficiency by granting loans for the purchase of building materials. A more prominent role is also envisaged for housing utility companies.

The programme ahead will include the upgrading of existing residential areas and the development of site-and-service schemes to provide adequate, albeit modest, housing for the various Black communities as available funds permit. Furthermore, with the elimination of the main obstacles that have up to now impeded the implementation of the 99-year leasehold system, it is expected that increasing numbers of Black people will avail themselves of the opportunity to acquire housing for their families on a more permanent footing.

In co-operation with their governments, serious attention is being given to the accelerated development of all the national states, especially in the field of agriculture, and in accordance with the Government’s initiatives regarding regional development across national borders. Despite the present economic downturn, the private sector has reacted positively to the industrial development policy that has been announced. Consequent upon the new incentives significant private investment is taking place in most of the development areas.

Striking progress is being made with the development of human potential. Black pupils now remain at school longer and the annual growth rate at the secondary level has reached 15%. There has been a dramatic increase in the number of matriculants. Increased emphasis is being placed on career and technical education at all levels. Extensive programmes to improve the quality of teachers and teacher training are being implemented.

The establishment of Vista University will make tertiary education available to thousands of Black people in urban areas on a decentralized basis. The first group of medical students completed their studies at the Medical University of Southern Africa last year and two new faculties, namely Veterinary Sciences and Dentistry, were established at the University in 1982.

The recommendations of the interim Education Working Party, which was appointed to advise the Government on the recommendations contained in the Human Sciences Research Council’s report on the inquiry into the Provision of Education in the Republic of South Africa, are at present receiving attention. It is expected that the Government’s decision in this respect will lead to a more efficient and better co-ordinated system of education offering equal opportunities to the young people of all population groups.

The resolute manner in which the people and the Government have faced up to the many problems with which we were confronted during the past year augurs well for the future stability and progress of our country and all its peoples. In particular the State owes a debt of gratitude to industrious and devoted men and women who are serving their country in the public sector. I wish to pay tribute to those members of the security forces who made the supreme sacrifice in the execution of their duty.

We are on the threshold of an era of renewal and progress in practically every field of human endeavour. The future is always a challenge and demands from each and every one of us dedication, faith, confidence and positive action. May God bless our endeavours.

Mr. Speaker And Members of the House of Assembly:

Estimates of revenue and expenditure for the current financial year will be laid before you.

Mr. Speaker And Members of the House of Assembly:

I pray that the blessing of Almighty God may guide and sustain you in your labours and deliberations.

I now declare this the Third Session of the Seventh Parliament of the Republic of South Africa to be duly opened.

laid upon the Table the Third Report of the Select Committee on Public Accounts, 1982, as follows:

(1) INTERNAL CONTROL MEASURES IN THE. PUBLIC SERVICE

Arising from the Resolution contained in your Committee’s Second Report, further evidence was heard on the Auditor-General’s memorandum relating to the worsening internal control measures in financial sections.

Your Committee took note with deep concern of the serious staff shortages which gave rise to the worsening internal control measures. According to the evidence a career-differentiated salary dispensation for the financial sections was instituted by the Commission for Administration with effect from 1 January 1983, which it is expected should bring about an improvement in the staff position.

Your Committee is impressed with the enthusiastic and thorough manner in which the Commission for Administration carried out this comprehensive investigation and trusts that continuous attention will be given to the matter.

Your Committee is, however, still concerned at the position in the Departments of Education and Training and Co-operation and Development and recommends that the Commission for Administration undertake a further investigation of these two departments.

(2) OTHER REPORTS AND PAPERS

Your Committee has no comment to offer on the other reports and papers referred to it.

C. H. W. SIMKIN, Acting Chairman.

Committee Rooms

House of Assembly

20 January 1983.

Report, proceedings and evidence to be printed.

laid upon the Table the Second Report of the Select Committee on Rent Control, 1982, reporting that the Committee had been unable to complete its inquiry.

Report, proceedings and evidence to be printed.

laid upon the Table the Third Report of the Select Committee on the Constitution, 1982, reporting that the Committee had been unable to complete its inquiry.

Report, proceedings and evidence to be printed.

laid upon the Table the Second Report of the Select Committee on Toll Financing of Roads, 1982, reporting that the Committee had been unable to complete its inquiry.

Report and proceedings to be printed.

laid upon the Table the Report of the Select Committee on Matrimonial Property Law, 1982, reporting, inter alia, that the Committee had been unable to complete its inquiry.

Report and proceedings to be printed.

Mr. Speaker, I move without notice—

Agreed to.

Mr. Speaker, I move—

Agreed to.