Mr. SPEAKER and members met in the Assembly Chamber of the House of Assembly, Cape Town, at 10.30 a.m.

The Secretary read the following Proclamation of the State President, dated 2nd October, 1970, summoning Parliament to meet to-day:

Given under my Hand and the Seal of the Republic of South Africa at Cape Town on this Second day of October, One thousand Nine hundred and Seventy.

J. J. FOUCHÉ,

State President.

By Order of the State President-in-Council.

B.J. VORSTER.

Mr. SPEAKER announced that during the recess a vacancy had occurred in the representation in this House of the electoral division of Bloemfontein East, owing to the death of the Hon. M. C. G. J. van Rensburg on 11th November, 1970.

Mr. SPEAKER announced that the vacancy in the electoral division of Bellville had been filed on 28th October, 1970, by the election of Mr. L. A. Pienaar.

The Hon. T. J. A. Gerdener, introduced by Mr. J. E. Potgieter and Mr. H. J. van Wyk, made, and subscribed, the oath and took his seat.

Mr. L. A. Pienaar, introduced by Mr. M. J. de la R. Venter and Mr. S. F. Kotzé, made, and subscribed, the oath and took his seat.

Mr. SPEAKER announced that a letter had been received from the Secretary to the Prime Minister, stating that the State President would open Parliament at 11 o’clock a.m. to-day in the Senate Chamber.

Mr. SPEAKER and members proceeded to the Senate Chamber to attend the ceremony of the opening of Parliament, and on their return,

Mr. SPEAKER took the Chair and read prayers.

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

MR. PRESIDENT AND MEMBERS OF THE SENATE:

MR. SPEAKER AND MEMBERS OF THE HOUSE OF ASSEMBLY:

Organized, active forces aimed at undermining the authority of the state where it differs from their views are playing their well-known role of fomenting unrest. In this way communism has extended its sphere of influence during the past year in various parts of the world, including the Southern Hemisphere.

It is encouraging that the cease-fire in the Middle East at least is still in force and that a quieter tone prevails in South-East Asia. The talks between the U.S.A. and Russia concerning a treaty for the limitation of strategic arms are also continuing. Peace is not yet in sight, however. The future will show whether these preliminary signs of a possible willingness to seek peaceful solutions for the great international disputes are based on solid realities.

Unfortunately the spirit of permissiveness, coupled with conspicuous contempt for and disregard of every form of authority, has already in various ways become prevalent among some persons in our country. This spirit causes moral decay and spiritual decline, gives rise to crime and handicaps the police in their task of preventing and combating crime.

While peaceful conditions prevailed within our borders during the past year the Government remains alert to the fact that subversive bodies and their henchmen are intensifying their efforts to stir up unrest in South Africa and ill-feeling towards the country. The Government is watching the situation closely and will not hesitate to act where and whenever it becomes necessary.

It was alarming to learn of the World Council of Churches giving financial aid to terrorists in Africa and also of the other forms of support to them from international sources, mainly from Communist countries. The action of the World Council of Churches evoked strong reaction in South Africa, for instance in the form of efforts to raise funds for the purpose of combating terrorism in Southern Africa.

During the first decade of the Republic’s existence its Defence Force was placed on a new footing in respect of organization, size, armament and the ways in which its requirements in weapons could be met. The decade ahead will exact new demands in respect of the further development of the Defence Force.

The concept of a unitary Defence Force has been established during the past few years and will be further strengthened by the adoption of uniforms of the same colour for all divisions of the armed forces.

Accelerated development in the sphere of natural and human sciences in a world that is progressively becoming smaller, as well as divergent tendencies in community life among all nations, are making increasing demands, also in the military field, on the nature and content of training and educational systems. Constant attention will be given to this matter in the years ahead.

No substantial expansion of the South African Defence Force is envisaged during the next decade, unless this is rendered necessary by unforeseen circumstances. The Government has accepted a ten year programme for the maintenance of a satisfactory arms position and for the modernization of all existing military bases.

Co-operation between industry and the Government in regard to defence requirements has been placed on a sound footing. Production of military equipment will cover an ever-widening field to the benefit of the country’s general economy and the expansion of our industries and in order to make us less dependent on the outside world.

The objectives of the Government in regard to the security and defence forces of our country are directed towards maintaining our autonomy and freedom. Our history provides testimony that we are not an aggressive people. In a world, however, where a peaceful solution of problems continues to elude mankind the Government is obliged to take all steps within its power to maintain peace and stability in our part of Africa.

Welcome signs of greater realism have been observed lately, not only in Western countries, but also elsewhere. The Government is continuing to further this tendency.

During the past year the economy of South Africa maintained an encouraging rate of growth.

Inflation, however, has become a serious international problem and it is therefore difficult for a single country to deal with this problem effectively on its own. It is to be hoped that the leading world powers in the financial and economic field will jointly and with determination apply themselves to this task. Meanwhile the South African authorities have to try, with all the means at their disposal, to keep the rate of inflation in South Africa within reasonable limits. In comparison with other countries, the Republic has achieved a measure of success in this respect. For South Africa, however, the rate of inflation is still too high. Existing measures against inflation will consequently have to be maintained for the present and further steps will be considered, when necessary. In this connection the responsibility of the private sector and of each individual must be underscored.

The rapid rate of development and the heavy demand for investment capital which followed, caused a rise in the rates of interest in the Republic, as has happened in most other countries. The Government has mitigated the effect of these high interest rates in certain sensitive sectors of the economy by introducing schemes to subsidize interest rates, under certain conditions, to farmers, houseowners and exporters.

The too high level of spending also had an adverse effect on the balance of payments, but this has partially been countered by a substantial inflow of foreign capital, reflecting the confidence of foreign investors in the Republic.

The agreement with the International Monetary Fund in connection with the marketing of South African gold has now been operating for slightly more than a year and the authorities have reason to be satisfied with this agreement. Large quantities of gold have been sold on the private market at a premium. At the same time the authorities could avoid glutting the market by also selling considerable quantities of gold to monetary authorities in terms of the agreement.

A feature of the trend in economic conditions in the Republic during the past year was a particularly rapid increase in expenditure on goods and services. Conditions in the domestic trade were therefore buoyant and the trade sector experienced a particularly favourable year.

The high local demand caused a rapid rise in prices. At the same time it had an adverse effect on the country’s balance of payments as a result of the sluggish flow of exports and the strong upsurge of imports.

The Government therefore found it necessary to introduce various measures in an effort to reduce the general rate of expenditure to a level more compatible with the Republic’s ability to provide goods and services. These measures were also aimed at encouraging savings, in order that more investment funds could become available for the creation of essentially additional production capacity.

The Government has already decided to improve considerably the existing export incentives and export promotion services. Attention is being paid to the strengthening of the Export Promotion Council and to the improvement of its efficiency.

During the past year Britain, Denmark, Ireland and Norway—all important markets for South African produce —have made renewed attempts to enter the European Economic Community. Their accession to this Community could have far-reaching implications for the Republic’s export trade. Problems likely to face South African exporters in the event of these four countries gaining access to the Community, have already been discussed fully by the Government with the Governments of Britain and the six member states of the Community. They have been requested to keep these problems in mind during their negotiations.

Another development which could influence South Africa’s foreign trade relations is the trade concessions which large industrial countries have offered to the developing countries in order to create more favourable opportunities for the produce of the developing countries to gain access to their markets. In this regard the Government has conducted negotiations with the leading industrial countries in an effort to mitigate, as far as possible, the adverse effects of these concessions on South Africa’s export trade.

The volume of manufacturing production has increased with an attendant further increase in the number of industrial employees, and the existing production capacity has been utilized more effectively.

Fixed investment in industry decidedly tends to move upwards and important extensions are contemplated in all of the main growth sectors. Iscor and Escom are in the forefront with their gigantic projects, while in the strictly private sector also, a variety of projects are being tackled.

The Government’s purposeful policy of decentralization of industries to rural areas, border industrial areas and the homelands, is being accepted and positively supported in ever-widening circles. Based on the experience gained during the past decade, new guidelines are being laid down for the period ahead. With the co-operation of private entrepreneurs the pace of decentralization is being accelerated without disrupting further growth in the developed areas.

Gold production during the past year was only slightly higher than that for 1969. Although the State is continuing its financial assistance to marginal mines a decrease in the rate of prospecting for gold has become apparent.

The marked increase in the sales price of certain minerals and the sustained growth of this industry have led to a considerable increase in revenue derived from the sale of base minerals.

The search for natural oil continues on land and at sea and two drilling vessels are presently in use.

The second phase of the study on economic aspects of the application of nuclear power in South Africa has been completed and there are indications that nuclear power stations, using enriched uranium as fuel, could generate power at a much lower cost than stations which depend on natural uranium. Good progress is being made with the erection of the pilot plant for the enrichment of uranium in accordance with the new South African process already announced.

The Geological Survey Division has completed a new geological map of South Africa which will become available to the public early this year. This map will be a most valuable instrument in furthering the development of the country’s mineral resources.

The Water Year concluded in Pretoria with the Convention on Water for the Future, was a success and aroused wide interest also from beyond our borders.

It became necessary to implement measures to control the use of water from various rivers as a result of exceptional drought conditions. Special assistance, involving a number of Departments, was rendered to fanners and others at various places to satisfy their most urgent water requirements.

The recommendations of the Commission of Inquiry into Water Matters, the crux of which is the planned and effective use of our available water, have been accepted almost in its entirety by the Government, and implementation of these recommendations is receiving further attention.

The Hendrik Verwoerd Dam on the Orange River commenced storing water on 1st September, 1970.

The sewage reclamation works at Windhoek were followed by an improved pilot installation at Daspoort, Pretoria, which was put into operation by the C.S.I.R. during November, 1970. It will be used by the National Institute for Water Research for further research into the complete reclamation of sewage water.

The object of utilizing the Republic’s agricultural resources still more effectively, is being constantly pursued.

Drought conditions during the past years have strongly focused attention on the necessity of arresting the deterioration of the veld. To restore the veld’s productivity and resistance to drought, the Stock Reduction Scheme was amended to encourage its wider implementation.

In regard to crop and horticultural production, an important break-through was achieved with the cleansing from viruses of plant material used in the propagation of totally disease-free crops. A spectacular increase in production has already resulted in the few instances where such plant material was available.

Apart from adequate control of outbreaks of stock diseases in the Republic, successful co-operation with our neighbouring states was obtained in combating outbreaks of such diseases.

Spraying against Tsetse fly was again undertaken in Rhodesia, Mozambique, Angola, Botswana and the Caprivi.

Assistance has also been given to other African States and, inter alia, more than seven million doses of vaccine have been supplied to ten states in Southern and Central Africa.

At home good progress has been made with the programme for the promotion of animal health. A new vaccine which will contribute towards reducing the incidence of mortality in lambs and calves has been developed and recently made available to farmers.

†Owing to severe drought conditions the State had to speed up its assistance to farmers. It was essential for assistance to be granted to farmers on an exceptionally extensive scale.

New forms of assistance decided upon during the past year are loans for the eradication of encroaching bush in heavily infested areas and the granting of interest-free State subsistence loans to families in certain areas.

A watchful eye is being kept on the needs of farmers and assistance will continue to be granted to meet the changing requirements of agriculture, provided it can be justified on merit and is in accordance with the principles which have been laid down.

The wheat crop was good and the 1971 fruit and wine crops are promising. The prospects for maize and other summer crops are also good and if the rainfall continues to be adequate, good summer grain crops may be expected. As regards livestock, the position has also improved appreciably and production levels are again sufficient to meet the local demand. The latest estimates of livestock numbers indicate that the cattle population has increased further and that the numbers in the extensive cattle-grazing areas have risen to a higher level than in the early sixties before the drought. In the case of wool, however, the clip is expected to be considerably smaller than in the past. Furthermore, the price dropped alarmingly and the Wool Commission was compelled to support the price on a high percentage of sales.

Horticultural production was also smaller, mainly because of a shortage of irrigation water, unfavourable weather conditions and plant diseases.

During the first half of 1970, producer prices, other than fixed prices, ruled at a lower level than during the corresponding period of the previous year. Prices improved, however, during the second half of the year, especially for fruit, vegetables and meat.

Notwithstanding difficult conditions in various branches of farming, which necessitated assistance by the State on an unprecedented scale, the estimated value of the agricultural produce was the highest ever, but expenditure was also at a record level. Larger amounts were expended, especially on fertilizers, fuel and stockfeed, whilst expenditure on capital goods also increased.

The process of intensification in agriculture is continuing in cereal as well as livestock production. Consequently initial production factors of the industry increase and the ultimate dependence on favourable weather conditions results in greater risk costs. Problems resulting from over-estimation of the long-term agricultural potential are a growing source of concern. An appeal is being made to farmers, in their own interests, to keep their farming operations within the limits imposed by natural resources.

The Government is grateful for good rains that have fallen and trusts that all parts of the country will abundantly share in this blessing.

Within the concept of multi-national development, the political and economic development of the various Bantu homelands is of cardinal importance. To further this process of dual development, it is essential to entrust more responsibility to the Bantu nations themselves in order to give them a greater share in the development of their own territories and people.

The provision of the necessary infrastructure in the homelands will be continued with special emphasis on transport services, investigation into natural resources, the decentralization of industries and housing programmes.

White industrialists have responded very positively to the incentives which the Government has introduced for the establishment of industries in the Bantu homelands. Planning is in progress for the development of twelve industrial townships during the next ten years. This will result in increased purchasing power in the homelands, which is bound to give a stimulus to commerce and other service trades.

The Bantu Investment Corporation and, more recently, the Xhosa Development Corporation, have already made good progress in strengthening the position of the Bantu in the distributive trade.

The recently established Bantu Mining Corporation is forging ahead with the opening up of the mining potential in the Bantu homelands.

The policy for the development of agriculture in the homelands is being pursued with renewed vigour, especially in view of the fact that the Departments of Agriculture of the various Bantu governments will in future assume increasing responsibility for agricultural development.

The Government’s efforts to promote the economic diversification of the Indian population have resulted in a trend away from the retail trade, which characterized the Indian economy, and towards increasing investment in industry by Indian entrepreneurs. Furthermore, the programme of education for Indians is designed to qualify them for a wider range of vocations than in the past.

Next year the University of Durban-Westville, formerly the University College for Indians, will move to its new site at Chiltern Hills near Durban where a modern and extensive university complex is under construction.

Partly owing to economic factors, but also thanks in no small measure to the labour laws of this country, coupled with the goodwill, co-operation and understanding received from every sector of organized industry, commerce and the trade unions, the Republic has for many years been free from industrial strife.

The trend to reduce apprenticeship training periods is gaining momentum, while the majority of apprenticeship committees have also revised their conditions of apprenticeship in recent years in order to keep abreast with present and future technological developments.

The number of registered unemployed persons continues to decline, and at the end of the past year constituted only 0.4 per cent of the number of persons employed. This is the lowest unemployment figure over the past two decades. The shortage of skilled manpower, which is mainly due to South Africa’s phenomenal growth, and the concomitant problem of increased productivity, are receiving the serious attention these problems call for.

Much of the success achieved in South Africa has resulted directly or indirectly from knowledge and skills brought to South Africa from abroad by a large number of economically active immigrants and their families. The Government will, therefore, continue its policy of selective immigration.

The successful assimilation of immigrants is also of great importance and in this regard good progress can be reported.

As in the past year, the Government’s policy of decentralization will be promoted further by creating the necessary infrastructure in the border industrial areas and other selected growth-points.

As the volume and rate of development in the Republic grow, ever-increasing demands are being made on the country’s available land and space. The division of the country into regions, their planning and ultimate fusion into a composite national development plan to prepare the country for the physical development which is to follow, have accordingly been receiving the Government’s attention for some time. This will in due course ensure the achievement of a greater degree of cohesion in the field of planning.

The first results of the 1970 Population Census which have been released, have brought to light important facts regarding the distribution of the different population groups between White areas and the Bantu homelands. Further results, which will show details of age, marital status, citizenship, standard of education, occupation, industry and other particulars of the different population groups, as well as details of families and housing, are still being prepared by the Department of Statistics.

Although it is essential for the data to be released as soon as possible, the processing of the particulars of more than 21 million individuals remains a formidable task which will of necessity take a considerable time. The Department of Statistics will, therefore, initially undertake a sample tabulation of the census returns. This will make it possible to release sufficiently reliable data to meet many of the more urgent needs much sooner. Good progress has already been made with this work, and everything possible is being done to publish the full results at the earliest date during this year.

The Government has accepted the recommendations contained in the Report of the Commission of Inquiry into the Occurrence of Ruling High Selling Prices of Vacant Residential Sites and Unplanned Land being acquired for Township Development (known as the Niemand Commission), and active steps have been taken to implement them as soon as possible. It will take some time, however, for these measures to yield their full benefits.

Commendable progress is being made with the gigantic task of urban renewal embarked on in several large cities. In all these centres planning has either been completed or is far advanced, while in a number of cities reconstruction and development are already under way.

Because of the prevailing heavy demand for housing accommodation and the shortage of building materials and skilled labour, there is no prospect of building control being lifted. The Government is still compelled to canalize as much material and labour as possible into the provision of dwellings.

Serious concern has been expressed for some time about excessively high densities in urban residential areas. This development is not conducive to the welfare of flat-dwellers, especially children, and the Government has now decided to amend the Slums Act, 1934, so as to enable the Department of Community Development, in co-operation with local and provincial authorities, to deal effectively with the situation.

The Commission of Inquiry into the Registration of Sectional Titles Bill has completed its investigation. A measure enabling the ever-growing number of flat-dwellers to obtain individual ownership of their flats will be introduced during this Session for your consideration.

The Government is at present considering the report and recommendations of the Committee of Inquiry into the Abuse of Drugs, and legislation in this connection will be submitted to Parliament during this Session. In view of the contents of this report, the Government wishes to appeal to the youth of South Africa, all parents and others concerned with the welfare of our children and young people, to be on their guard against the dangers of this evil to our national life.

Good progress is being made with the report of the important Commission of Inquiry into Universities which, it is hoped, will lead to a solution of the problems encountered at university and tertiary teaching levels, in particular.

The decision to transfer the administration of the Broadcasting Act to the Minister of National Education is in line with the trend to place stronger emphasis on the educational function of broadcasting.

The report of the Commission of Inquiry into Matters relating to Television, which has meanwhile been completed, will have to be considered in the light of this new approach before a final decision is made.

Despite continued threats of isolation in international sport and notwithstanding demonstrations overseas, our sportsmen and sportswomen have once again brought great honour to South Africa both by their brilliant performances and their impeccable behaviour.

The first Spring Walk, organized on a national basis during September and October, 1970, proved to be the biggest and most successful fitness campaign ever staged in South Africa. It is intended to make this an annual event.

More than fifty types of sport will be represented at the Republic Festival this year, and at least 3,300 sportsmen and sportswomen, all South Africans, will participate.

A conference on regional tourism co-operation, held in Malawi in August, 1970 was attended by representatives of Lesotho, Malawi, Mauritius, Swaziland, Portugal and South Africa.

A permanent Council for Tourism Co-operation in Southern Africa may be established in the near future for the purpose of facilitating the promotion and development of tourism in this area.

MR. SPEAKER AND MEMBERS OF THE HOUSE OF ASSEMBLY:

Additional estimates of expenditure for the current financial year and estimates of revenue and expenditure for the ensuing financial year will be laid before you.

MR. PRESIDENT AND MEMBERS OF THE SENATE:

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 Second Session of the Fourth Parliament of the Republic of South Africa to be duly opened.

Late Hon. M. C. G. J. van Rensburg