Mr. SPEAKER and members met in the Assembly Chamber at 9h35.

By direction of Mr. Speaker,

The Secretary read the following Proclamation of the State President, dated 19 June 1975, summoning Parliament to meet today:

No. 151, 1975.]

Given under my Hand and the Seal of the Republic of South Africa at Pretoria, on this Nineteenth day of June, One thousand Nine hundred and Seventy-five.

N. DIEDERICHS,

State President.

By Order of the State President-in-Council,

B. J. VORSTER.

Mr. SPEAKER announced that during the recess vacancies had occurred in the representation in this House of the following electoral divisions:

1. (1) Bellville, owing to the resignation, with effect from 29 August 1975, of Mr. L. A. Pienaar;
2. (2) Smithfield, owing to the resignation, with effect from 1 October 1975, of Mr. J. S. Pansegrouw;
3. (3) Bloemfontein East, owing to the resignation, with effect from 1 November 1975, of Mr. P. L. S. Aucamp; and
4. (4) Windhoek, owing to the resignation, with effect from 16 January 1976, of the Hon. A. H. du Plessis.

Mr. SPEAKER announced that a vacancy had occurred in the representation in this House of the electoral division of Alberton owing to the nomination as a Senator, with effect from 23 January 1976, of the Hon. M. Viljoen.

Mr. SPEAKER announced that the following vacancies had been filled during the recess:

1. (1) Gezina, on 25 June 1975, by the election of Mr. K. D. Swanepoel;
2. (2) Middelburg, on 25 June 1975, by the election of Mr. N. W. Ligthelm;
3. (3) Caledon, on 6 August 1975, by the election of Mr. J. D. de Villiers;
4. (4) Smithfield, on 22 October 1975, by the election of Mr. C. H. W. Simkin; and
5. (5) Bellville, on 12 November 1975, by the election of Mr. A. T. van der Walt.

Mr. N. W. Ligthelm and Mr. K. D. Swanepoel, introduced by Mr. J. M. Henning and Mr. W. L. van der Merwe, made and subscribed the oath and took their seats.

Mr. C. H. W. Simkin, introduced by Dr. C. V. van der Merwe and Mr. J. C. van den Berg, made and subscribed the oath and took his seat.

Mr. A. T. van der Walt, introduced by Mr. S. F. Kotzé and Mr. A. van Breda, 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 11h00 today in the Assembly Chamber.

PROCEEDINGS SUSPENDED AT 9h45.

Members met in the Gallery Hall at 10h30 and accompanied Mr. Speaker to the Assembly Chamber to attend the opening ceremony.

PROCEEDINGS RESUMED AT 11h45.

Mr. Speaker took the Chair.

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:

*Despite hostile propaganda against South Africa we have made good progress in improving our relations with countries in Africa, South America and elsewhere.

Efforts from various quarters to seek peace in Southern Africa have led to a material change in the Rhodesian situation. Instead of violent confrontation, discussions are at present taking place in a calmer atmosphere. If there is a real mutual desire to find a solution, there is now a golden opportunity to reach an honourable and acceptable settlement.

The initial discussions between representatives of the various peoples of South West Africa have gone off well. They will continue to decide about their future themselves, without outside interference.

The situation in Angola, however, stands in sharp contrast to this otherwise encouraging picture. The blatant communist strategy of deciding the fate of Africa by armed force has never been more transparent. While half of the African states are aware of the threatening danger, the OAU itself is powerless as a result of its division on this crucial African problem.

South Africa has recognized the independence of Angola ever since 11 November 1975. Like many other countries, including about half of Africa, we have not yet recognized any of the combatant groups as the government of that country.

South Africa has no territorial ambitions in Angola. It believes that the people of that country, like other peoples, have the right to decide their own future and to choose their government themselves without armed pressure from outside. The question of Angola should be solved round the conference table; armed force can bring no lasting solution.

Our involvement is the same as that of the Free World and the interest of Owambo in the Cunene scheme, as well as the defence and security of the borders and territories for which South Africa is responsible.

We hope and trust that there will soon be an established authority in Angola which will be able to maintain law and order in that border and water scheme area and will thus make it possible for South Africa to relax its own protective measures.

Our responsibilities have, however, also resulted in loss of lives to South Africa, and the Government wishes to express its deepest sympathy with those whose loved ones have lost their lives or are still in captivity.

It is essential beyond doubt for South Africa to have the military strength to defend itself, but at the same time it must be emphasized that its defence force and armaments organization are not being built up as a threat to others in Africa. The detente policy the Government is pursuing and a strong defence capability are complementary and not irreconcilable.

In the financial sphere the past year has presented various difficult problems.

The worst depression Europe and North America have known since the ’thirties also had repercussions on South Africa, but in sharp contrast to many countries overseas, the South African economy has nevertheless shown a significant growth rate. Furthermore, the Republic has escaped the serious unemployment that has afflicted such a large part of the world economy.

Nevertheless, unfavourable conditions overseas resulted in a drop in South Africa’s exports which, together with the decline in the gold price, made the devaluation of the rand last September unavoidable.

Gold and other foreign reserves have since strengthened, partly owing to a net inflow of short-term capital. It would appear that devaluation is already beginning to have a favourable effect on the current account of the balance of payments, and this trend is expected to grow stronger, especially as the economies of America and Western Europe begin to revive.

The agreement reached on gold in the International Monetary Fund should make gold more useful as an official reserve asset and should consequently strengthen its monetary role. The decision to sell part of the gold holdings of the Fund for the benefit of the developing countries has undoubtedly depressed the gold price, but there are good grounds for confidence that in the long run the price of gold will resume an upward trend.

The greatest economic challenge facing the Republic under prevailing conditions, which is being given top policy priority by the Government is the stabilization of prices and the fight against inflation. These goals are however being pursued with due regard to the maintenance of a satisfactory economic growth rate for which a sound balance of payments position, backed up by continued expansion of the export trade, is a prerequisite.

The Programme of Collective Action against Inflation, which has been instituted for this purpose in co-operation with interested groups in the community, consists mainly of positive steps to achieve increased production and to raise the level of efficiency in the economy as a whole, and of tangible contributions by both the public and private sectors to keep increases in prices and wages within reasonable limits. In this regard the continuation of a sound fiscal and monetary policy aimed at keeping the increase in the money supply under control is of cardinal importance. In particular, positive steps are being taken to prune Government expenditure and to finance it in a non-inflationary manner as far as possible.

The Action Programme is making encouraging progress, and the Government wishes to express its sincere gratitude and appreciation to everyone who is cooperating in the Programme. A special word of thanks is due to public servants for their attitude in the fight against inflation. The Government once again makes a serious appeal to all sectors to support and persist in this effort.

There are some other groups in the community, however, including among others doctors, dentists, legal practitioners, architects, landlords, commission agents, and financial institutions who have not yet been involved in the Action Programme as signatories to the Manifesto against Inflation. Steps are being taken to enlist their co-operation, too, in the collective fight against inflation.

The Government believes that healthy competition in commerce and industry makes for efficient utilization of resources and an equitable distribution of wealth in the economy, thus contributing materially to the fight against inflation. With this end in view the Government has taken steps to eliminate all unwarranted impediments to competition in the economy and to check exploitation of the public wherever it is detected. The Government is continuing to take action to protect consumers against any form of exploitation that can be proved.

It is disquieting that the public do not appear to realize that the present economic problems of the Western world are largely caused by steep increases in crude oil and the apparent inability of Western countries to restrict their use of this expensive source of energy effectively. It therefore remains imperative for every inhabitant of this country to make a serious effort to save as much fuel as possible.

During the past year the Government has successfully continued its efforts to strengthen South Africa’s trade relations with other countries. The devaluation of the rand in September 1975 will substantially stimulate our exports, provided South African exporters make full use of the advantages of devaluation. As a result of devaluation the Republic has become a much cheaper country for tourists, and foreign currency earnings from this source are expected to increase appreciably.

Although certain industries have succeeded in maintaining a healthy growth rate, others have not fared so well. In fact, during the past year the industrial sector has shown a lower average real growth rate than in 1974.

Fixed investment in manufacturing was somewhat sluggish last year, but the under-utilization of capacity was not such as to hamper the expansion of production.

Despite appreciable increases in the cost of imported equipment, the Government is confidently proceeding with the planning and construction of the oil-from-coal project as announced originally. Of equally great importance to the country is the planned plant for semi-steel products at Saldanha Bay and Iscor’s ore-exporting project, which is expected to come into operation before the end of the year.

The first phase of the giant Richards Bay project, which will provide a new feeder line to the coast for the conveyance of the country’s bulk exports, is nearing completion, and the harbour will be officially commissioned on 1 April this year. In addition to prescribed coal exports, large volumes of phosphate rock and other traffic will be conveyed to Richards Bay by this new line every year.

The decentralization of industries is receiving high priority. The response of interested industrialists has been favourable and the considerably improved concessions announced last year should serve as a strong incentive to decentralization.

†Good rains for two seasons in succession have enabled the farming community to maintain a high level of production during the past year. The exceptional rains may, however, have an adverse effect on crop prospects. Although there has been a sharp rise in the prices of farming requisites, the net income of farmers has kept pace with these rises.

The demand on the domestic market was amply supplied. Food prices have been generally high, but rises have been nowhere near those of the previous year.

Considerable quantities of agricultural products were available for export. Efforts to find profitable markets overseas for traditional exports and even other agricultural products have been successful, and the Government is continuing, in co-operation with those concerned, to promote the efficiency of the marketing of agricultural products.

For the effective utilization and conservation of our agricultural resources it is of the utmost importance in agricultural production to apply farming practices that are suited to natural environmental conditions. Skill and experience are required to achieve this ideal, but the shortage of trained people to serve the agricultural industry and to equip farmers for their task is increasing steadily. This matter is receiving urgent attention.

On the strength of results achieved and the possibilities of further development, confidence in the future of our important mining industry is fully justified, and there will be considerable expenditure on precious as well as base metal mining ventures in the next few years.

It is intended, as part of South Africa’s intensified search for uranium within its borders, to survey the entire Karoo Super Group aeroradiometrically at a cost of a million rand a year over a period of three years. In addition, processes for the recovery of uranium from the slimes dams of gold mines are being investigated. Good progress is being made with uranium enrichment and, as has already been announced, the Government has decided to erect a commercial plant, the size of which will be determined in 1978. Uranium hexafluoride is now being produced on an industrial scale for the first time in South Africa.

As regards labour matters, the results of the eleventh manpower survey will be tabled during the session.

Good progress is being made with the implementation of the approved programme for in-service training of Bantu industrial workers in White areas. In addition, a new adult education section will increase the effectiveness and scope of the existing system of evening schools aimed at developing literacy and the skills of adults whose level of education is not adequate for the utilization of their full potential.

Measures to facilitate negotiations on conditions of employment between Bantu workers and their employers are under consideration.

A Committee comprising representatives of interested Government departments and of employers’ and workers’ organizations is carrying out a comprehensive inquiry into the extension of training and re-training schemes for Whites. Coloureds and Asians at the level of artisans, operators and semi-skilled workers.

The upward trend in immigration is particularly gratifying in view of the important supplementary role played by selective immigration in increasing the country’s productivity.

The Government has never had any doubt about the high esteem in which teaching and education are held, both in and beyond the school context. Renewal and improvements that are justifiable on educational grounds, that fit into the national framework and are within the State’s financial means, are therefore a matter of deep concern to the Government. Renewal or improvement calls for responsible preparation, however, and this task is at present receiving the attention of all concerned.

The Government is alive to the need to improve the overall housing position and, with due regard to the general financial position of the country, at all times gives high priority to the appropriation of funds for this purpose. In spite of encouraging progress, the shortage of housing, particularly for Coloureds and Indians, poses a formidable challenge.

A Commission of Inquiry is at present investigating the rising cost of housing in the private sector for those in the upper income group for whom housing is not provided by the State.

During the past year there has been considerable activity often political, in and around the Coloured Persons Representative Council. Consultations and negotiations have also taken place on the basis of the guidelines envisaged by the Government at the opening of the Seventh Session of the Council in November 1974.

Meanwhile the Commission of Inquiry into Matters relating to the Coloured Population Group has almost completed its task and will submit its findings and recommendations in the near future.

The response to the recent establishment of public relations committees to eliminate points of avoidable friction and irritation which may adversely affect relations between the various population groups is most encouraging.

The further development of the South African Indian Council towards what will eventually be a fully elected body with executive and legislative powers is progressing well. Preparations for the first election in which the South African Indian Community will elect its own representatives are expected to be completed by the end of 1977.

A historic milestone will be reached when the Transkei becomes an independent state during 1976. Particulars of the arrangement of certain matters in connection with the independence of the Transkei will be furnished in due course.

The establishment of its own development corporation for each homeland, with homeland representation on the boards of directors, has ushered in a new phase in the development of self-governing and independent homelands.

There are encouraging signs of growing interest in and a better understanding of South Africa. Despite the decline in world tourism, the flow of tourists to South Africa points to a record year. In addition, the many scientific and other international conferences held here, visits from bankers, industrialists and businessmen, and the activities and achievements of sporting bodies and sportsmen have, as in the past, played an important part in maintaining and strengthening ties with other countries.

As a result of events in Angola more than 11 000 refugees crossed our borders. Apart from creating numerous problems, this influx involved considerable unforeseen expenditure for the State. It was only thanks to a comprehensive team effort by various Government departments that it was possible to accommodate and care for these homeless people temporarily and to repatriate them gradually. The possibility of a recurrence of this problem is giving rise to concern. The Government wishes to express its sincere appreciation to the departments concerned and their officers, as well as to the general public, for their co-operation and selfless service, and to congratulate them on what they have achieved.

The contribution public servants in general are making towards the stability of our country is greatly appreciated.

MR. SPEAKER AND MEMBERS OF THE HOUSE OF ASSEMBLY:

MR. PRESIDENT AND MEMBERS OF THE SENATE:

MR. SPEAKER AND MEMBERS OF THE HOUSE OF ASSEMBLY: