Members assembled in the Assembly Chamber at 09h35.

The Secretary read the following Proclamation of the State President, dated 30 November 1979, summoning Parliament to meet today:

No. 298, 1979]

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 on the 31st day of January, 1980, and I declare that the Parliament of the Republic of South Africa will commence at Cape Town on the 1st day of February, 1980, for the dispatch of business.

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

M. VILJOEN, State President.

By Order of the State President-in-Council,

P. W. BOTHA.

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

1. (1) Ceres, owing to the resignation, with effect from 1 July 1979, of the Hon. S. L. Muller.
2. (2) Edenvale, owing to the death on 12 July 1979 of Mr. P. Z. J. van Vuuren.
3. (3) Germiston, owing to the resignation, with effect from 16 July 1979, of the Hon. W. A. Cruywagen.
4. (4) Rustenburg, owing to the resignation, with effect from 26 July 1979, of Dr. P. Bodenstein.
5. (5) Eshowe, owing to the resignation, with effect from 1 August 1979, of Mr. J. C. G. Botha.
6. (6) Durbanville, owing to the resignation, with effect from 31 August 1979, of Mr. E. Louw.
7. (7) Worcester, owing to the resignation, with effect from 31 August 1979, of Mr. P. D. Palm.
8. (8) Germiston District, owing to the resignation, with effect from 1 October 1979, of Mr. J. A. van Tonder.
9. (9) Fauresmith, owing to the resignation, with effect from 14 December 1979, of Dr. C. V. van der Merwe.

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

1. (1) Johannesburg West, on 29 August 1979, by the election of Mr. R. P. Meyer.
2. (2) Koedoespoort, on 29 August 1979, by the election of Mr. S. G. J. van Niekerk.
3. (3) Ceres, on 1 October 1979, by the election of Mr. P. B. B. Hugo.
4. (4) Brentwood, on 3 October 1979, by the election of Mr. J. G. van Zyl.
5. (5) Germiston, on 3 October 1979, by the election of Mr. D. S. van Eeden.
6. (6) Prinshof, on 3 October 1979, by the election of Mr. E. le Roux.
7. (7) Rustenburg, on 3 October 1979, by the election of Dr. M. H. Veldman.
8. (8) Germiston District, on 29 October 1979, by the election of Mrs. E. M. Scholtz.
9. (9) Durbanville, on 7 November 1979, by the election of Dr. L. A. P. A. Munnik.
10. (10) Edenvale, on 7 November 1979, by the election of Mr. B. B. Goodall.
11. (11) Eshowe, on 7 November 1979, by the election of Mr. W. J. Heine.
12. (12) Worcester, on 7 November 1979, by the election of Mr. J. Rabie.

Dr. L. A. P. A. Munnik, Mr. S. G. J. van Niekerk, Mr. R. P. Meyer, Mr. P. B. B. Hugo, Mr. E. le Roux and Dr. M. H. Veldman, introduced by Mr. A. van Breda and Mr. W. L. van der Merwe, made and subscribed the oath and took their seats.

Mr. B. B. Goodall, introduced by Dr. A. L. Boraine and Mr. A. B. Widman, made and subscribed the oath and took his seat.

Mr. J. G. van Zyl, Mr. D. S. van Eeden, Mrs. E. M. Scholtz, Mr. J. Rabie and Mr. W. J. Heine, introduced by Mr. A. van Breda and Mr. N. F. Treurnicht, made and subscribed the oath and took their seats.

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 09h45 and Resumed at 11h57.

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:

I am glad to welcome you to this the Fourth Session of the Sixth Parliament of the Republic of South Africa.

*It is heartening that, in the midst of disquieting conditions in the international sphere, South Africa is entering a period of renewal and development as a result of the positive implementation, in recent times, of policies which will be continued in the years ahead to the benefit of every population group of the country. We are indeed entering an era which could be decisive for the future.

The beginning of the ’eighties has been marked by dangerous world conditions. The general instability in Iran, coupled with the tension concerning the American hostages, had begun to create an atmosphere of crisis towards the end of last year. The subsequent Soviet invasion of Afghanistan shook the West to the core, and created general fear and uncertainty.

Events in the Middle East must be seen as part of a strategic plan to secure direct access to the Indian Ocean. Should the Soviet Union succeed in this objective, the implications would undoubtedly be serious for the balance of power in the Middle East and Asia and for Western interests. In that event, Africa would be placed within the immediate sphere of threat from the Soviet Union, with further serious consequences for Southern Africa.

Important developments have taken place in Rhodesia during the past year. Sanctions have been lifted, a cease-fire agreement has been negotiated, and Rhodesia is on the eve of an election which may be decisive for its future. Events and developments in the critical weeks ahead will determine what role Rhodesia will play in the future of Southern Africa. South Africa’s positive role in the Rhodesian issue has been welcomed and praised by Britain.

It is a source of concern to the Government that the settlement plan for South West Africa, which it accepted on 25 April 1978, has not yet been implemented. Negotiations on this matter are continuing, but there are still serious problems to be overcome. In the meantime the people of South West Africa are pressing more and more insistently for a greater share in the handling of their own affairs—an aspiration which coincides with the known fundamental approach of the Government.

In the present climate, the Government’s initiatives in developing a total national strategy are of major importance and deserve the whole-hearted support of everyone who desires orderly progress.

The military onslaught on the Republic has acquired a new dimension in that attempts are being made to denigrate the South African Defence Force, and in particular the national service system, and to undermine the morale of national servicemen.

In spite of considerable military successes by the security forces, the terrorist onslaught, backed up by Russian and Cuban assistance, on the peoples of South West Africa continues unremittingly by means of intimidation, propaganda and other methods. As far as the Republic itself is concerned, there have been a few instances of armed terrorists’ infiltrating into the country, but the police succeeded in rendering them harmless in each case.

I should like to take this opportunity of paying tribute to the memory of those members of our security forces who made the supreme sacrifice during the past year. South Africa will not forget them.

The local armaments industry again achieved substantial successes during the past year, which have brought the Republic a step closer to its goal of self-sufficiency in this sphere. Nevertheless, several rescue operations, especially in the maritime sphere, as in the recent case of the Berge Vanga and the Pep Ice, have underlined the illogicality and unfairness of the arms embargo imposed by the Western nations.

From time to time criticism is levelled at the Republic’s security legislation. In view of the onslaught on the Republic it continues to be essential to have effective counter-measures at all times. On the other hand it is also essential for such measures to be as reasonable as possible in the circumstances.

In view of this I have appointed a commission, on the recommendation of the Government, to inquire into and to report and make recommendations on the necessity, adequacy, fairness and efficacy of the legislation relating to the internal security of the Republic.

A major favourable development in South Africa during the past year was the performance of the economy. This was partly attributable to the further increase in the gold price and to natural economic forces in general. But it was also the direct result of the policy of financial discipline applied since 1976. It was largely this discipline that paved the way for the present official growth strategy and, in particular, for the tax reductions and other concessions announced in the Budget in March 1979, and again in September.

The strengthening of the economy was well illustrated by the attainment of a record surplus on the balance of payments on current account and by a substantial further increase in gold and other foreign reserves in 1979. The economy was further strengthened by the Government’s action in severing the link between the rand and the United States dollar and in making the rand an independent monetary unit finding its own level in the foreign exchange market, subject to Reserve Bank management.

Both consumption and investment expenditures, in the aggregate, are rising, after a period of some sluggishness, and the country’s credit rating on the world’s capital markets is excellent. One serious blemish in the overall economic picture was the acceleration during the past year in the rate of inflation. The current inflation in South Africa is not the result of excessive spending or money creation, but stems largely from higher oil prices and other cost increases. The Government takes a serious view of the position and last September announced a six-point plan to counteract the tendency towards higher costs and prices. Constant attention is being given to this problem, which is a world-wide phenomenon at the present time.

In the year ahead the main emphasis in economic policy will remain on sound economic growth, based on the encouragement of private enterprise and the harnessing of market forces, with the retention of financial discipline throughout. This approach forms an integral part of the Prime Minister’s new initiative in regard to the proposed constellation of states in Southern Africa. As this strategy unfolds, we can look forward to expanding output and employment, increasing prosperity, and rising standards of living for all sections of the population.

Conditions in the industrial sector have already improved noticeably as a result of the general upswing in the economy, and this has been accompanied by renewed expansion in industrial decentralization. The decentralization incentive measures are being reviewed in accordance with the recommendations of the Commission of Inquiry into Legislation Affecting the Utilization of Manpower (the Riekert Commission).

Considerable progress has been made towards the necessary restructuring, consolidation and bringing up to date of legislation relating to training and employment, as proposed by the Commission. The necessary preliminary steps have, for example, been taken to establish a Standing Committee on Labour Legislation and a permanent secretariat which will fall under the Department of Manpower Utilization.

Another of the Commission’s recommendations concerns the opening up of business, service and industrial opportunities to all population groups. A step has been taken in this direction by modifying the relevant regulations to allow business activities in Black residential areas by companies with a shareholding ratio of 49% White to 51% Black. In addition, the establishment of light service industries by Black people in these areas is being welcomed.

The other outstanding feature of the past year in the field of labour and employment was the release of the report of the Wiehahn Commission of Inquiry. The Wiehahn Report dealt with sensitive key issues in industrial and labour relations which have not been subjected to systematic study since 1952. In accepting the majority of the Commission’s recommendations, the Government has demonstrated its determination to lay solid foundations for a dynamic and adaptable labour policy in a complex society.

In essence, the Commission’s report puts forward the principle of a uniform and co-ordinated industrial relations system as the key to continued industrial peace and the optimum utilization and development of manpower. Together with the Riekert Report, it has paved the way for a new framework of labour relations in South Africa. The National Manpower Commission has introduced a fresh dispensation into industrial relations in the Republic since it will continually monitor both the labour market and the industrial relations system and advise the Government on developments and changes deemed necessary to maintain industrial peace.

The Wiehahn Commission also held that the rational solution to the question of the alleged unfair displacement of workers lay in deliberation and consensus and, in the last resort, a right of recourse to an industrial court. The establishment of this body has also ushered in a significant era in our system of industrial relations. It will give impetus to the development of South Africa’s labour laws and also be an important instrument in the attainment of equity and the entrenchment of the market system.

An important development in the field of trade is that the Tokyo Round of multilateral trade negotiations, which were conducted under the auspices of the General Agreement on Tariffs and Trade (GATT), has now been finalized. As a member of GATT, South Africa took part in the negotiations, and her exporters will also share in the advantages of the agreed tariff reductions which will be phased in over a period of eight years, with effect from 1 January 1980. The Government will continue to give high priority to the promotion of the country’s exports.

In regard to domestic trade it may be mentioned that the Competition Board, which was appointed in terms of the Maintenance and Promotion of Competition Act (Act 96 of 1979), commenced its activities on 1 January 1980. The Board’s functions are, inter alia, to advise the Minister on the country’s competition policy and to institute investigations into suspected restrictive practices and, where necessary, recommend remedial measures.

Sound finances and adequate investment, on-going agricultural development and industrialization, the economic exploitation of our mineral wealth, and realistic labour policies are all prerequisites of sustained economic growth. So, too, is an efficient transport and communications system.

Events in Southern Africa have again underscored the importance of this, and especially of transport routes.

During the past year the South African Railways has strengthened its transport links to the north, thus fostering sound mutual relations. During the 1978-’79 financial year about a million tons of goods were conveyed by rail to our northern neighbouring states, while two and a half million tons flowed southwards. In addition, fairly large quantities of goods were transported by air. The Railways, with its extensive rail network, which is being expanded still further by means of connecting road transport routes, may be said to be meeting not only the transport needs of the Republic, but also those of our neighbouring states, thereby influencing stability and development in all the developing territories in Southern Africa.

The rural areas are in many respects vital to our survival, and the sound economic position of farmers is consequently of cardinal importance. Everything possible should therefore be done to ensure the viability and economic survival of the various agricultural industries and to prevent the drift of producers from agriculture.

With this in view, the Government appointed a representative committee under the chairmanship of Dr. A. S. Jacobs last year to inquire into the economic position of farmers and agricultural financing in general, with special reference, inter alia, to the effect of steadily rising production costs, farmers’ increasing burden of debt, and the extent to which existing sources of finance are meeting their credit requirements. The Committee has since been converted into a Standing Commission. This means that constant attention will now be given to financial and other problems in agriculture.

†The judicious utilization of the water resources of our country is essential for sound development. It is gratifying, therefore, that the report of the Interdepartmental Committee on the division of joint water resources among the Black states and the remainder of the Republic of South Africa will be tabled this session. It is equally gratifying that permanent technical committees on water matters are meeting regularly to arrange the division of international water resources among the Republics of South Africa, Bophuthatswana, Transkei and Venda. Negotiations at a technical level on water source development are also being held with representatives of Mozambique and Swaziland. The severe drought in the summer of 1978-’79 has underlined the need to spend much more on water supplies as soon as the country’s economy permits.

Export earnings from minerals broke all previous records in 1979. Gold was one of the major contributors.

Significant expansion is taking place and new ventures are being established in the coal-mining industry, thanks largely to increased revenue from coal exports. The Republic continues to play a dominant role in the supply of strategic minerals to the steel and allied industries of the West, and increased revenue from these sources, owing to a slight improvement in these industries, has also contributed to the increase in foreign exchange earnings.

To maintain and improve the quality of life of all the people of South Africa, the authorities as well as the producing and consumer sectors must give constant attention to the problem of ensuring adequate supplies of energy. The Government’s pioneering work and initiative in the production of synthetic fuel on a significant scale has caught the attention of governments and people far beyond our borders. It is a matter of satisfaction that the private sector is taking an increasing interest in this important field.

Meanwhile the search for oil in the deeper off-shore areas of the Republic will be accelerated during 1980 by the commissioning of a third drilling rig.

Continued efforts to create healthy living conditions were well rewarded in the past financial year. A record amount of R293 million was spent on the completion of 43 500 dwelling units out of funds placed at the disposal of the Department of Community Development.

Education continues to enjoy a high priority. That the Government is in earnest about the educationists’ cause, at all levels, is evident from the fact that a committee has been appointed to investigate the status of educationists in South African society. The Committee’s terms of reference are such that its findings should give a fairly broad perspective and design for the future and determine the present and prospective status of educationists in the Republic. The Committee’s report is expected in the course of the year.

Important recommendations regarding the training, utilization and status of engineering technicians were approved in 1979 and will be implemented at the various technikons during the year.

Compulsory education is about to be instituted for Coloureds from 14-year-olds to 16-year-olds.

The development of the national states, viewed especially in the context of the formation of a constellation of states, is of paramount importance. Important, also, is the development of the Black urban areas. There is increasing emphasis on community development, and a programme is under way for the planning of new towns and the replanning of existing towns. A co-ordinating and planning council has been established to rationalize and enhance the development of Soweto and neighbouring Black townships.

During January 1980 there was a rapid increase in new applications for the registration of rights under the 99-year leasehold system. A total of 38 000 stands are already available for this purpose, and the speeding up of the process of approving general plans of residential areas should result in a considerable expansion of the scheme.

Last year, six regional committees were established to advise the Government on matters concerning the urban Blacks. Announcements on their recommendations will be made during the session.

In the agricultural sector efforts are being made to develop a market economy and to assist and motivate Black farmers to increase food production. Close co-operation is maintained between the Governments of the Republic of South Africa, the non-independent national states, and the independent states which previously formed part of the Republic.

The governments of the national states, concerned as they are about the problem of unemployment, have taken the initiative in launching youth action programmes to enable young people to train for useful occupations and thereby become more involved in the development of their states.

In view of the country’s need for more and better-trained manpower, the Government is doing everything in its power to extend education services for Blacks and to provide for the rapidly growing number of pupils. The main increase in numbers has now shifted from the primary to the secondary level where the growth rate was 83% last year. The improvement of the qualifications of Black teachers is consequently receiving special attention.

In-service training is making an important contribution towards supplying skilled manpower for commerce, industry and agriculture. More than 280 000 Black workers have received training in approximately 1 700 approved courses at in-service training schemes, and over 20 000 have been trained at public in-service training centres.

In order to economize and to improve the country’s public administration, the Government has embarked on a programme to rationalize the public service. Among other things this will involve a reduction in the number of departments of state and a review of existing legislation. The Public Service Commission is receiving the active support and advice of prominent members of the private sector in this regard.

A Regional Health Organization for Southern Africa was established in 1979 to promote better health services and co-operation in this important field in Southern Africa. Bophuthatswana, Ciskei, Gazankulu, kwaZulu, Lebowa, QwaQwa, South Africa, South West Africa and Venda are members of the organization, which should come into full operation this year.

Despite attempts to isolate South African sport, our sportsmen and sportswomen acquitted themselves exceptionally well during 1979, both in South Africa and abroad. I pay tribute to our world champions and congratulate our sports administrators, as well as our sportsmen and sportswomen, on their continued outstanding achievements.

The decennial population census will take place on 6 May 1980. A large organization has been set up for this census, and the latest electronic equipment will be used for the processing of the statistical data. The first factual information should therefore be available within a few months of the census.

South Africa has ample cause for gratitude. Our country is on the threshold of renewed economic progress, in the international field there are signs of better understanding and greater tolerance towards South Africa, and in the country a growing improvement in human and group relations is evident. I am sure that during the Republic Festival, which will be celebrated in 1981 on a multinational basis, South Africa will look back with gratitude on the achievements of the first twenty years of the young Republic.

A country dare not, however, rest upon the laurels of its past, and reforms and new initiatives in our country are therefore aimed at steering the decade we are now entering in a definite direction. In the past decade much constructive work has been done and adjustments have been made, so that the rounding off of the constitutional system is now possible. The independent institutions of the various nations and the structures for deliberation and consultation on the common interests of these nations can now be given final shape in every sphere.

In 1979 the matter of a new constitution was referred by Parliament to a Joint Parliamentary Committee of both Houses of Parliament which was subsequently converted into a commission of inquiry to inquire into and report on the introduction of a new constitution for the Republic of South Africa This Commission’s work is proceeding, and constitutional development will assume major importance in the years ahead. This will have to be the outcome of intensive deliberation and be built upon economic strength and the maintenance of law and order both in the country and beyond our borders.

Let this inspire us to work hard and in a spirit of optimism to secure a fine future for our country and all its people.

The Government, firmly committed to the ideal of freedom, will proceed resolutely on the path it has chosen, to work within the Southern African context for economic and social progress, order and security. Southern Africa must become a bastion of hope for the free world.

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

(The late Mr. P. Z. J. van Vuuren)