House of Assembly: Vol37 - FRIDAY 28 JANUARY 1972

FRIDAY, 28TH JANUARY, 1972 MEETING OF PARLIAMENT

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

By direction of Mr. Speaker,

The Secretary read the following Proclamation of the State President, dated 16th June, 1971, summoning Parliament to meet to-day:

No. 145, 1971.]

Under and by virtue of the power and authority vested in me by section 25 of the Republic of South Africa Constitution Act, 1961, I hereby prorogue Parliament until Friday, the Twenty-eighth day of January, 1972, and I declare that the Third Session of the Fourth Parliament of the Republic of South Africa will commence at Cape Town on that day for the dispatch of business.

Given under my Hand and the Seal of the Republic of South Africa at Cape Town on this Sixteenth day of June One thousand Nine hundred and Seventy-one.

J. J. FOUCHÉ,

State President.

By Order of the State President-in-Council.

B. J. VORSTER.

VACANCY

Mr. SPEAKER announced that during the recess a vacancy had occurred in the representation in this House of the electoral division of Brakpan owing to the resignation with effect from 1st January, 1972, of Mr. G. P. C. Bezuidenhout.

NEW MEMBER

Mr. SPEAKER announced that the vacancy in the representation of the electoral division of Waterberg had been filled on 23rd June, 1971, by the election of Dr. A. P. Treurnicht.

OATH

Dr. A. P. Treurnicht, introduced by Mr. J. E. Potgieter and Mr. G. P. van den Berg, made, and subscribed, the oath and took his seat.

OFFICIAL OPENING

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.

STATE PRESIDENT’S ADDRESS

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:

I am glad to welcome you to this the Third Session of the Fourth Parliament of the Republic of South Africa. During the past year the Republic has again made progress in the international field. We have extended our co-operation with other countries, and our technical and economic aid programmes have been expanded especially in respect of African countries. Official Ministerial Missions have been received from Lesotho, Swaziland, Malawi and Madagascar. A Malagasy South African joint commission, which was set up during the year, held its first six-monthly meeting in Tananarive. Our relations with Malawi have been further strengthened by the State Visit to South Africa of that country’s Life President Kamuzu Banda and subsequently Mrs. Fouché and I accepted with great pleasure an invitation from Dr. Banda to pay a return visit to Malawi. Great interest has been shown in many quarters in the possibility of fostering better understanding and the pursuance of common interests through dialogue with African countries. The Government for its part warmly welcomes progress in this direction and believes it will contribute to co-operation, peace and development. The agreement reached in principle between the Governments of the United Kingdom and Rhodesia is encouraging. The attempts to wreck the agreement are not without a lesson to all peoples of Southern Africa. In regard to the Republic’s relations with countries other than those in Africa I should like to mention in particular the warm and hospitable way in which Mrs. Fouché and I were received in Iran during the magnificent celebration of the two thousand five hundredth anniversary of the founding of the Persian Empire. As expected, our progress on the international scene has goaded the extremists into intensifying their campaign against the Republic. The peace and tranquillity we enjoyed last year must be attributed not so much to lack of initiative on the part of those who plan subversive activity to bring about violent social, economic and political change, but mainly to the continued application of the Government’s preventive measures and to the action of the responsible authorities. In this way subversive organizations were thwarted and incitement to violence was checked. Recent events have again demonstrated that we must continuously be on our guard. The peaceful internal position must not, therefore, give rise to a false sense of security, because subverters in various guises and communists are bent on the downfall of our existing democratic and orderly government. On the terrorist front the enemies of Southern Africa have been equally active from their transit camps in certain African states. Terrorists are now also concentrating on laying landmines in certain border areas as a result of which four members of the South African Police were killed while a few others were wounded. I again wish to express the sympathy of us all with the families of the deceased and the injured policemen. The Russo-Chinese threat against the Western alliance has increased in recent years. Their penetration into Africa and the sustained deployment of the Russian naval force in all its components in the Mediterranean and the Indian Ocean are causing concern, in view of Western Europe’s dependence upon the heavy supplies of oil from the Middle East and raw materials from the Afro-asian countries. This increasingly necessitates the protection of the Cape sea route and Southern Africa against Communist domination, for which purpose South Africa is prepared to contribute its share. The Government is also prepared to consider participation by other countries in the regular naval exercises held in terms of the Simonstown Agreement. South Africa has at its own expense extensively expanded the facilities at Simonstown, including the provision of a new submarine base, the establishment of an ultra-modern maritime command and control centre and the Decca navigational system. Legislation dealing with certain aspects of national service as well as legislation to amend the Armaments Development and Production Act, will be introduced. Inflationary pressure intensified in many countries, including South Africa, during the year 1971. The Government remains determined to curb inflation, inter alia, by maintaining the existing measures and by slowing down the rate of increase in State expenditure. There are already various indications that the overheating of the economy is diminishing and particularly that the shortage of skilled labour is no longer so acute. The authorities will review the position from time to time in order to adjust these measures where necessary. The anti-inflationary policy of the Government also succeeded in reducing the rate of increase in imports while exports—despite unfavourable market conditions for certain products—showed a noticeable increase. The great uncertainty in international trade and finance which prevailed after August, 1971, however, had an immediate unfavourable impact upon South Africa’s balance of payments, especially in respect of the inflow of foreign capital and of the leads and lags in the payments for imports and exports, respectively. In order to protect the balance of payments the Government accordingly decided, in November 1971, to intensify its import control measures. When a general realignment of the exchange rates of most major currencies took place in December, 1971, the Government judged it to be in South Africa’s interests to devalue the rand, with the concurrence of the International Monetary Fund, by 12,28 per cent in terms of gold. These measures should in due course bring about an improvement in the balance of payments on current as well as on capital account by stimulating exports, by curbing imports, by eliminating the leads and lags in external payments and by encouraging the inflow of capital. They should also stimulate industrial investment and the growth of the economy generally. The Government believes that any price increases resulting from the intensification of import control and the devaluation of the rand need not be excessive. It has also recently taken further steps to curb unjustifiable price increases. The full benefits of devaluation can be realized only if the rate of inflation is reduced to the lowest possible level. Conditions in the distributive trade have improved during the latter part of 1971 as compared with the first half of the year. South Africa’s foreign trade has, however, developed less favourably in 1971, owing mainly to the abnormally high level of imports and the relatively disappointing export performances of some industries. These unfavourable developments should partly be rectified by South Africa’s intensified import restrictions and the devaluation of the rand. The Government is constantly giving attention to the need to achieve a healthy and lasting expansion of exports. This is a subject which is at present also being studied by the Commission of Inquiry into South Africa’s Export Trade under the Chairmanship of Professor Reynders. Moreover, the Government is continuously exploring, in consultation with interested South African export industries, practical ways by means of which the country’s export trade may be safeguarded against the harmful effects of the United Kingdom’s accession to the European Economic Community. Further ministerial discussions on this subject were held with the Governments of the United Kingdom and the member states of the Community during the latter half of 1971. These discussions will be continued as and when necessary in the future. South Africa is also proceeding, within the framework of the General Agreement on Tariffs and Trade, with the renegotiation of its tariff bindings in order to obtain the necessary scope to protect its industries. The ever-increasing demand for South African industrial products and the Government’s incentive measures for industrial undertakings still remain the most important stimuli for the continued development and expansion of the country’s industries. Where possible and justified, steps will be taken to encourage an accelerated growth rate, especially where it has slowed down. The Government’s general policy in connection with industrial decentralization and border area development remains unchanged and with the recent establishment of the Decentralization Board this policy is now being pursued more purposefully. The White Paper on industrial policy, published by the Government last year, has paved the way to closer co-operation and better understanding between the authorities and the private sector. More favourable climatic conditions, coupled with a strengthening in the price of sugar on the world market as a result of arrangements made in terms of the International Sugar Agreement, have considerably improved the sugar industry’s financial position. Endeavours made to secure the cooperation of countries fishing off South Africa’s coast have now taken a favourable turn with the coming into operation of the International Convention for the Conservation of Living Resources of the South-East Atlantic Ocean. This Convention is expected to contribute towards a more rational exploitation and greater stability of the fishing industry. Gold production during 1971 more or less equalled the record quantity produced in 1970. State assistance was given to twenty gold mines during the year. Owing to the instability of the world platinum markets, and the attendant lower price, producers were forced to take steps in order temporarily to reduce production. As a result of world conditions and a decline in the market for certain base minerals, there was a drop in revenue derived from sales of those minerals during the second half of 1971. Drilling for natural oil on land was continued during the year. Further seismic and allied offshore work was also undertaken during the year. The construction of the Uranium Enrichment Corporation’s pilot plant is proceeding according to plan. Active studies on the economics of nuclear power in South Africa are continuing. The studies will determine the optimum combination of nuclear and conventional power stations to provide in the Republic’s electricity requirements in the most economical way. Guidelines for the development of the water resources of the South-Western Cape were recently announced. The Hendrik Verwoerd Dam has been completed and the official opening will take place shortly. It has been decided that the construction of the second storage unit in the Orange River project, the P. K. le Roux Dam, will be undertaken by the Department of Water Affairs itself. This work was started in July, 1971, and is progressing well. Research into weather modification has progressed to such an extent that experiments in artificial rainfall stimulation have been commenced in the Vaal Dam catchment area in co-operation with a farmers’ crop insurance co-operative. *Intensive attention is at present being given to programme planning on a country-wide scale to ensure the optimal use of agricultural resources. Work on the planning and stabilization of the Orange River catchment area to prevent the silting up of the Hendrik Verwoerd and other storage dams is continuing without interruption. The most serious brown locust outbreaks experienced up to now were successfully controlled before winged swarms could cause any appreciable damage in the grain-producing regions. In co-operation with Angola, Botswana, Rhodesia and Mozambique, tsetse fly control has been successfully continued in the Caprivi and other border areas. Owing to favourable weather and good grazing and field crop production conditions, the past year’s maize crop was the second highest yet and the present wheat crop may surpass all previous records, while livestock production levels should be sufficient to meet the local demand. The combined index of producer prices for agricultural products rose by about 4 per cent last season, despite a drop of 22 per cent in wool and mohair prices. The problems of the small stock industry are at present being investigated by a committee specially appointed for the purpose. Such aspects as undersized farming units, the rising cost structure, high interest rates on a heavy burden of debt and inadequate slaughter facilities remain some of the most pressing problems. The provision of effective slaughter facilities is being treated as a matter of top priority by all concerned. Welcome rains during the past year have alleviated conditions brought about by the drought from which the country has suffered for so many years to such an extent that virtually all the affected areas could be removed from the grazing distress list. In parts of the Eastern Cape, and more particularly in the Gamtoos Valley, floods caused extensive damage. The granting of assistance to repair such damage received the immediate attention of the Government. The Government is constantly alive to the necessity of providing agricultural credit facilities. The functions of the Department of Agricultural Credit and Land Tenure of rendering financial assistance to farmers on a continuous basis for the various branches of farming are periodically extended as the need arises. It is intended to expand the country’s afforested areas on a planned basis. This will be done by further afforestation by the State and by encouraging afforestation by the private sector. In the latter case incentive loans at a low rate of interest will in future be made available to farmers. The Government intends to indicate, according to fixed norms, the areas where afforestation is to be given priority over other forms of land and water utilization. On the other hand, where it is considered in the national interest for land and water to be utilized for other purposes, it is intended to restrict afforestation partly or altogether in the areas concerned. When planning for future timber production in this country, the possible contribution of neighbouring countries will be taken into account. Noteworthy progress has been made in the political field in respect of the Bantu homelands of the Republic and South-West Africa. Legislative assemblies were established for the following Bantu peoples in the course of 1971: The Tswana, Xhosa of the Ciskei, Venda, Lebowa, Machangana and the Basotho-Qwaqwa. It is expected that a legislative assembly will be established in the near future to replace the Zulu Territorial Authority. Some of these legislative assemblies have requested that their areas be declared self-governing territories within the Republic and consultations with the Government in this connection have made considerable progress. In the case of the Transkei, which attained self-governing status in 1963, steps are being taken to transfer more powers to its Government. It is expected that a legislative council for the Eastern Caprivi will be established shortly. At the request of the Owambo and Kavango Legislative Councils, the extension of their legislative powers will be considered during the current session of Parliament. The Government has recently concluded important labour agreements with the governments of Owambo and Kavango which make it possible to introduce an entirely new and improved system of employment of Native workers from the two territories. The issue of certificates of citizenship in terms of the Bantu Homelands Citizenship Act, 1970, will be commenced in the course of this year. Since its inception the South African Indian Council has proved itself to be an efficient and responsible mouthpiece of the Indian population. The enlargement of the Council to include a number of elected members is planned, while certain executive functions will be delegated to the Council’s Executive Committee. In co-operation with the Provincial Administrations, the establishment of local authorities for Indians in their own areas is receiving the attention of the Government. Full self-government at local authority level has already been achieved in Verulam and Isipingo. The University of Durban-Westville will move into its new buildings at Chiltern Hills this year. This modern university complex in such beautifully situated grounds confirms the Government’s undertaking that the fact of separate universities will not have an adverse effect on standards and quality. Last year was again a year of full employment in the Republic. Thanks to sound employer-employee relations there were no serious labour disputes and the country continued to enjoy peace and quiet on the labour front. The Government hopes that employers and employees will continue to co-operate towards the maintenance of peaceful labour relations. In certain skilled occupations a shortage of trained workers is still being experienced. Efforts to supplement our skilled labour resources are continuing. Much can however also be achieved by raising productivity and by making better use of the available labour force. The Government therefore appeals to employers and employees to co-operate with a view to attaining the highest levels of productivity and efficiency. In spite of South Africa’s stringent selection standards, the number of immigrants is being maintained at the level which the Economic Advisory Council considers necessary for a growth rate of 5½ per cent. Immigrants are playing an increasingly important role in the decentralization of industries and the creation of employment opportunities at the new growth points. A special campaign is at present being undertaken to help them to settle down happily in our community life. The problems involved in a rational division of functions among the Government, Provincial Administrations and municipal authorities in the sphere of physical planning have led to a thorough inquiry. The report on this inquiry is now being studied. A start has already been made with the establishment of Central Guide Plan Committees for the purpose of drawing up a plan for the future development of the cities and towns concerned. Use will be made of these Committees on an ever-increasing scale this year. Concern about the physical decay of our towns and cities has given rise to an intensive investigation into the problem. On the strength of the findings in this investigation the Government is considering financial and other aid to enable local authorities to take more effective action. Housing and urban development will grealty benefit by certain measures under consideration. For example, certain persons who are saving for homes of their own will in given circumstances be granted special concessions, as well as preferential treatment in the granting of housing loans. Information gathered overseas on industrialized building methods and high density in cities will also receive attention. A Bill resulting from inquiries into Criminal Procedure and Evidence and into the Responsibility of Mentally Deranged Persons has been published in the Gazette for general information. Material changes to our law of criminal procedure and evidence have been recommended, but final decisions will not be taken until all comments have been received and studied. Preventive health services were carried out successfully last year and there were no serious outbreaks of epidemic diseases. In order to ensure even greater efficiency, proposals will be introduced for the amendment of six important Acts administered by the Department of Health. The legislation passed last year against the abuse of dependence-producing drugs is now being enforced and it is hoped to combat the unscrupulous and illicit traffic in drugs effectively. The desired progress is being made with measures for the rehabilitation of those who have fallen victim to this menace. The Government, however, wishes to stress emphatically the necessity of a sound and active public opinion against the abuse of drugs, this being at least as important as legislation. The general policy determined for education in certain schools for Whites in regard to the Christian character of education, its broad national character, and differentiated education, will be applied from the beginning of this year. The latter is aimed at providing education in accordance with the abilities, aptitudes and interests of pupils and the needs of the country. This system will also make differentiated university admission requirements possible, as well as a better link-up between the school and the university. A system is being introduced this year under which White teachers for secondary schools will be trained at universities only. The Government intends to introduce legislation prohibiting participation in the activities of certain radio stations. The legislation relating to the centralization, computerization and extension of the population register which will incorporate the births, marriages and deaths registers, a central address register, and central registers of firearms and drivers’ licences, will come into operation this year. A start will then be made with the issuing of consolidated identity documents in the Republic and the Territory of South-West Africa. The importance of the general registration of voters which will take place later this year, is stressed since, inter alia, it will form the basis of the delimitation of electoral divisions which must take place in the foreseeable future. Although enumerators are being appointed by the Government, the onus to register is on the voter. South Africa’s multinational sport policy has been applied successfully in practice. The Republic Sport Festival was a success and for the first time the Sports Merit Award was conferred on South African sportsmen and sportswomen. It is noteworthy that South Africa competed against more international sport teams here and overseas during the past two years than in any other corresponding period in its history. The rationalization and the promotion of the South African tourist industry in accordance with the recommendations of the Prime Minister’s Economic Adviser are receiving attention, and a Tourism Advisory Committee has already been appointed. South Africa has undertaken to become a member of the Southern African Regional Tourism Council (SARTOC). As soon as the legislation which is contemplated has been passed, transport for Coloureds and Indians between the areas where they have been resettled and the cities where they work will be subsidized on the same basis as transport for the Bantu. A ten-year programme is at present being drawn up for the construction of national throughways, while certain single carriageways will be converted into dual carriageways and certain national roads will be rebuilt. Thanks to the close co-operation among the Department of Transport, the National Transport Commission and the Provincial Administrations, the transfer of control over national roads in terms of the National Roads Act, 1971, has taken place smoothly.

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

The House adjourned at 11.44 a.m.